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Mounds View City Council regular Meeting Page Nine July 26, 1993 Mr. Valerie and Mr. Harold discussed the types of golfers who would be attracted to the Mounds View site which include family and social golfers, middle handicap golfers and senior citizens. Also discussed was the sense of the market for the proposed golf course indicating that Effective Golf Course Systems was comfortable with their projections regarding costs and expenses. Orduno stated that the driving range will be a 50 station driving range and will be one of the largest in the metro area. Mayor Linke compared the proposed golf course in Mounds View to Majestic Oaks and Bunker Hills and stated that the Mounds View course will compete with those courses. Orduno stated that Effective Golf Course Systems determined the costs, revenues and expenses for the golf course including greens fees projected through the year 2014, conservative power cart rentals, the number of buckets projected to be sold through 2014, golf merchandising and food concession. Orduno stated that contact has been made with other operators of courses to ask them to look at the figures for the proposed golf course and all indications have been that Mounds View is right on the money with this course. Mr. Harold indicated that the three things that will determine the success of the course are quality design and Mounds View has an excellent design, quality construction and Mounds View has an excellent architect in having Garret Gil and thirdly, quality maintenance. Mr. Harold also indicated that the Park and Recreation Department could develop school programs and teach lessons which is another way to market and strategize the course. Mr. Valerie stated that the golf course business is a business that you buy and can sell over and over again. Julie Trude, on behalf of the cable audience, asked where the money would come from to finance the site, will the site break even, what is the revenue forecast of the course and who will manage the course. Orduno responded that the course will not be funded with the taxpayers' money, but by the sale of true revenue bonds. Revenues generated by the course will be dedicated to repayment of the bond. Orduno explained that to sell revenue bonds more than three years cannot be projected with a deficit. The City should start seeing revenues in excess of expenditures in three years. Orduno reported that a survey was conducted regarding the golf course and the residents were asked if they wanted a publicly owned course. The response was that the residents did want a public owned course. A golf course superintendent will be added as earlier as January 1, 1993.