TOWN OF EAST HARTFORD
740 MAIN STREET
TOWN COUNCIL CHAMBERS
JUNE 24, 2013
SPECIAL MEETING – EAST HARTFORD GOLF COURSE
PRESENT Chair Richard F. Kehoe, Vice Chair William P. Horan, Jr., Majority Leader Barbara-Ann Rossi, Minority Leader Eric A. Thompson, Councillors Marc I. Weinberg, Linda A. Russo, Ram Aberasturia, Patricia Harmon and Esther B. Clarke
ALSO Marcia Leclerc, Mayor
PRESENT Michael Walsh, Finance Director
Billy Casper Golf representatives:
Michael Cutler, Senior VP
Ryan Phelps, Regional Director of Operations
William G. Mudano
Roger Baral
CALL TO ORDER
Chair Kehoe called the meeting to order at 7:10 p.m. He announced the exit locations from the Chamber in accordance with Connecticut
General Statutes §29-381, after which the Council joined him in the pledge of allegiance.
Chair Kehoe stated that the purpose of this meeting was to hear presentations from the bidders of the management of the East Hartford
Golf Course and to allow the public to speak on the proposals. Briefly, the Chair explained that the town has owned the golf course for approximately fifty years and has managed it for the majority of those years. After experiencing several years of deficits, the town decided to advertise a Request for Proposal (RFP) to privatize the management of the golf course. In 2007, the town entered into a lease with MDM Golf LLC who is currently the manager of the golf course. In the first couple of years, MDM invested approximately $1M in improvements to the golf course. However, over the last year or so, MDM failed to follow the terms of the lease regarding timely payments to the town and course conditions. The town renegotiated MDM’s contract, but decided, again, to advertise an
RFP for a new manager of the golf course.
Michael Walsh told the Council that the town purchased the golf course in the early 1970’s using federal funds and therefore, would have an obligation to repay those funds if the town chooses not to utilize that property as a golf course. The last nine years that the town has managed the golf course (through 2007), losses of more than $1M were incurred. The Golf Course Task Force Committee was formed by Mayor Currey, the result of which was the first RFP – MDM Golf LLC was selected as the new manager of the course. After increasingly deteriorating golf course conditions in 2011 and 2012, Mayor Leclerc reconvened the Golf Course Task Force Committee to study the issue and make recommendations to the Town Council. The town and MDM signed a revised month-to-month lease and an RFP was issued, which resulted in the
two bidders who are present in the Chamber and who will address the Council.
Both of the bid responses are attached to these minutes.
Billy Casper Golf LLC (BCG)
Michael Cutler, Senior VP of BCG and a PGA professional, introduced Ryan Phelps, Regional Director of Operations for BCG and also a PGA professional, stated that BCG operates four golf courses in Connecticut: Country Club of Woodbridge, Lyman Orchards Golf Club (Middlefield), The Golf Club at Oxford Greens (Oxford) and Wintonbury Hills Golf Course (Bloomfield). Mr. Cutler said that of the 140 golf courses that BCG operates nationwide, 80 of those golf courses are municipally-owned. He believes the financial instability that the town is experiencing with the golf course is not unique to East Hartford. BCG’s vision for the East Hartford golf course is three-fold: (1) improve the product and the presentation of that product; (2) get the right staffing for the golf course; and (3) competitively market the product.
Mr. Cutler believes that the golf course will lose money the first three or four years before it will financially turn around. BCG’s proposal is a “fee for services” proposal in which the town will pay BCG for their services and also be responsible for purchasing maintenance and restaurant equipment and for any operating losses or gains.
At this point, the Councillors posed questions to the representatives of BCG.
William (Billy) Mudano and Roger Baral
Billy Mudano, instrumental in starting the Nutmeg State Games with then State Senator John Larson, and Roger Baral stated that their expertise is in the management of businesses and people, but have no direct experience with managing golf courses. Mr. Mudano’s proposal is for an initial seven year lease, with an option to extend. After an initial investment of equipment and capital improvements the town would not be responsible for any operating losses but would potentially share in some of the profits in years three through seven.
At this point, the Councillor posed questions to Mr. Mudano and Mr. Baral.
The Chair opened the meeting to the public for comment:
Bill Sacchi, 47 Prospect Street, is not in favor of keeping MDM as the operator of the East Hartford golf course.
Janet Facer, 36 Chapman Street, president of the East Hartford Women’s 9-hole Golf League, stated that many women have left the league due to the poor conditions of the golf course. Ms. Facer stated that increasing fees would not be viable until conditions at the course, and the clubhouse, improve.
Susan Kniep, 44-46 and 50 Olde Roberts Street, (1) asked that the Council have another public hearing on this matter to better compare the two proposals; (2) said that specific requirements in the present contract with MDM were not met, such as the posting of a performance bond and the auditing of MDM’s financial records; (3) commented that BCG was very honest when indicating that, if the town enters into a lease agreement with BCG, there will not be a good cash flow the first few years of the that lease; (4) questioned if the town or MDM is responsible for the irrigation system at the golf course; and (5) would like a clear comparison of both proposals at the next meeting on the golf course.
Ken LaLiberte, 159 Margaret Drive, South Windsor, president of the East Hartford Men’s Golf Club, stated that members in the golf club are leaving due to the poor conditions of the golf course. Mr. LaLiberte stated simply that he wants a better golf course for the members of the men’s and women’s golf leagues that play the course.
Before adjournment, Chair Kehoe reminded all that there will be another meeting on this issue on June 26, 2013.
ADJOURNMENT
MOTION By Eric Thompson
seconded by Bill Horan
to adjourn (9:45 p.m.)
Motion carried 9/0.
Attest____________________________
Angela M. Attenello
Town Council Clerk
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