Minutes - 2001/04/09 - Laserfiche WebLink

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Mounds View City Council April 9, 2001 Regular Meeting Page 3 Council Member Stigney stated he was concerned that not all of the courses within the eight-mile radius responded to the survey by Springsted and that Springsted did not solicit the information from them but instead used only the information returned to them. The Springsted Representative indicated the disclaimer in the study was correct because Springsted is not a marketing firm. He stated they have used some standard numbers that are used within the industry and, if there is a consensus at the Council level to look at market numbers, then Council should do that. He noted there is a comparison on costs to build and operate golf courses on the market side and, although they have looked at it, they do not submit this as an exhaustive study as it was never intended to be. He stated he would not speculate on the Blaine course because it is targeting a totally different market share and, unless the City is going into a different market share, then they would not consider it. He then explained that the target market for Mounds View's course is substantially different and the difference is income level, beginning golfer and the golfer that wants a quick nine-hole game. The Blaine course is marketing itself as a regional course to the youth market to get them interested in golf. Council Member Stigney stated he is concerned that Springsted knew about the course in Blaine and did not include it in the study. He then stated he is concerned that Springsted did not attempt to get information from those courses that did not return the survey. The Springsted Representative stated he felt they had enough history and data and does not think it would substantially change the information for the study so they did not feel it was necessary. He then stated they have a list and have a very strong feel that the operating cost ranges listed are accurate and they are comfortable with them or they would not have given them. Council Member Marty asked Mr. Hammerschmidt what the target areas were for the golf course. Mr. Hammerschmidt stated he does not consider Blaine a risk and one reason is Blaine is marketing themselves to the high school player which would take high school play away from Mounds View's course and free it up for adult play. He stated Blaine has been working on the funding for the course for four years and during that time they have allowed him to sit on the advisory board and he has learned the course is to be a championship course with 18 holes where youth will pay their age and adults will pay $40.00. He stated that since Mounds View is a $15.00 course Blaine is nowhere near the same target market. He then explained the target market for Mounds View is the beginning golfer, the inexperienced golfer and people who want a short course. He further stated there is not much competition in the executive course market. He also indicated the growth and interest in golf is increasing at lower priced courses and decreasing at the $50.00 and higher courses. Mayor Sonterre questioned whether the study by the National Golf Foundation specified regionalized numbers that were different in this state than in other states and wondered if Minnesota was losing or gaining at the same rate.