2009-12-02 Fort Sheridan Master Planning Advisory Committee

Fort Sheridan Master Plan Advisory Committee – December 2, 2009

December 2, 2009

Fort Sheridan Master Plan Advisory Committee


Agenda• Advisory Committee purpose, goals & process

• Fort Sheridan Forest Preserve project background

• Potential Land Use Options

• Golf course feasibility

• Market analysis & projections

• Financial impacts & greens fees

• Committee member discussion

• Next meeting date & agenda


Advisory Committee PurposeReach consensus on preferred public uses

• Recommend a Fort Sheridan Forest Preserve conceptual Master Plan

• Consistent with Forest Preserve mission

• Recommended plan to includeo Opinions of probable costo Analysis of projected operating costs and revenues

• Send to Forest Preserve District Board


Advisory Committee ProcessWorking Meetings are for Advisory Committee Members

• Public is invited to observe• Any member of public wishing to provide comments may do so in writing

Other Public Input Opportunities• Planning Open Houses

• Review options under consideration• Ask questions• Submit written or video recorded comments

• Online at www.LCFPD.org• Meeting notices, agendas, minutes and documents• Public comment email submittals: [email protected]

http://www.lcfpd.org/�

mailto:[email protected]�


Project Background

Recent Actions• Presented by Tom HahnExecutive Director


Project Background

Forest Preserve District recent actions

• August 2008 – Board settled lawsuit filed against Town of Fort Sheridan and other developers

• Fall 2008 to Fall 2009 - Dirt stockpile processing, demolition, earthmoving and seeding of upland area, and initial restoration of Janes Ravine.


Project BackgroundForest Preserve District recent actions

• January 2009 - Committee of the Whole reviewed golf course market and economic analysis consultant reports, solicited public comments, discussed options.

• March 2009 - Committee of the Whole reviewed additional feasibility and cost analysis, heard additional comments.

• May 2009 - Board decided not to rebid golf course construction. Directed formation of Advisory Committee.

• July 2009 - Board approved Advisory Committee appointments.


Project Background

Forest Preserve District potential upcoming projects

•Winter 2009-2010 and Winter 2010-2011 – Restoration of lakeshore bluffs.

•Future – Feasibility and design study by US Army Corps of Engineers (USACE) for additional ravine, bluff and lakeshore restoration through Great Lakes Fisheries and Ecosystem Restoration (GLFER) program. Fort Sheridan Master Homeowners Association, Openlands and USACE met in fall 2009 to discuss this project.


Project Background

Budget Update• Presented by Bonnie McLeodDirector of Finance


Funding Sources(FY 2003-2004)

Public Access, Restoration, Environmental, Legal, Remedial& Cemetery

Golf CourseConstruction

Total

Development Bond Funds $ 5,500,000 $ 5,500,000

Development Bond Fund interest $ 2,452,070 $ 2,452,070

Land Development Levy Fund $ 335,000 $ 335,000

Fort Sheridan Cemetery Fund $ 200,000 $ 200,000

Debt Service Fund interest $ 389,580 $ 389,580

Golf Course projected bank loan $ 5,592,410 $ 5,592,410

Original Funding Subtotal $ 6,035,000 $ 8,434,060 $14,469,060


Additional Funding Since

New Since 2003-2004

Public Access, Restoration, Environmental Legal, Remedial & Cemetery

Golf Course

Total

Insurance Fund for environmental costs $ 293,660 $ 293,660

Tree replacement settlement $ 320,000 $ 320,000

USEPA ravine restoration grant $ 75,000 $ 75,000

Dirt pile remediation, earth moving, demolition $ 1,750,000 $ 1,750,000

Additional Funding Subtotal $ 2,438,660 $ 2,438,660

Original Funding Subtotal $ 6,035,000 $ 8,434,060 $14,469,060

Updated Funding Total $ 8,473,660 $ 8,434,060 (includes $5.5 million loan)

$16,907,720


Expenditures Public Access, Restoration, Environmental Legal, Remedial & Cemetery

Public access, restoration, tree replacement, legal and cemetery improvements

$ 5,169,997

Dirt pile remediation, earth moving, demolition $ 2,135,915

Environmental costs (Insurance Fund) $ 293,660

Total through 10/31/2009 $ 7,599,572

Funding Still Available Public Access, Restoration, Environmental Legal, Remedial& Cemetery

Public access & restoration $ 546,438

Fort Sheridan Cemetery Fund $ 92,610

Tree replacement settlement $ 235,040

Total $ 874,088


Expenditures in preparation for bidding(total from 10/2001 through 11/2009)

Golf Course

Golf course & maintenance building design, engineering & architect, and other costs

$ 762,279

Funding Still Available Golf Course

Bond & debt service interest earnings allocated for golf course

$ 2,079,371

Bank loan required to complete golf course. Amount to be determined by project costs.

TBD


Land Use Options for consideration

• Presented by Tom HahnExecutive Director


Land Use Options for considerationAdopted 2003 Master Plan

• 18-hole golf course (Silva design)

Blended golf & preserve alternative• 9-hole golf course• Limited public trails, open space & habitat areas

Traditional forest preserve alternative• Ample public trails, lake overlooks, picnic shelters, open spaces & habitat areas

Land banking alternative• 3-5 year hold to reassess market & economic changes


Land Use Options for considerationAdopted 2003 Master Plan

• 18-hole golf course (Silva design)

Issues

• Doesn’t require Deed Restriction change

• Could bid in 2010, start construction in 2011

• Requires average greens fees over $100 to cover operations

• Potential adverse financial impacts to other area courses

• Public trails & open spaces are very limited

• Substantially less wildlife habitat & preservation value


Land Use Options for considerationBlended Golf & Preserve Alternative

• 9-hole golf course

• Limited public trails, open space & habitat areas

Issues• May not require Deed Restriction change

• Could design 2010, bid 2011, start construction in 2012

• Public operating funding required for golf, trails & public areas

• Potential adverse financial impacts to other area courses

• Public access by lakeshore limited, most open space would be in Parade Ground, which requires higher maintenance

• More wildlife habitat & preservation value than 18 holes


Land Use Options for considerationTraditional Forest Preserve

• Ample public trails, lake overlooks, picnic shelters, open spaces & habitat areas

Issues• Requires Deed Restriction change

• Could design 2010, bid 2011, start construction in 2012

• Public operating funding required for trails & public areas

• No adverse financial impacts to other area courses

• Public access greatly expanded, especially by lakeshore

• Parade Ground open space requires higher maintenance

• Greatly expanded wildlife habitat & preservation value


Land Use Options for considerationLand Banking Alternative

• Existing conditions remain for next 3-5 years

Issues• May not require Deed Restriction change

• Delays decision for 3-5 years

• Allows for evaluation of future golf market trends & other economic conditions

• No adverse financial impacts to other area courses

• Mowed trails provide temporary public access to recently graded and seeded areas

• Some public funding required for maintenance of land-banked areas


Golf Market Analysis

• Presented by Chris Brewer,Economics Research Associates


Project Context

• AECOM role began in December of 2008• Presentations were made to forest preserve commissioners

regarding viability of an 18-hole plan for Fort Sheridan– Greens fees / rounds / revenue– Impact on ThunderHawk

• Other recreational options for the site have been preliminarily explored:– Nine-hole scenario– Park & open space


Market Context

Private Market Reality• 16 18-hole primary market courses • Courses are losing members – modest shift toward public play• Courses are starting to lower pricesPublic / Daily Fee Market Reality• 7 18-hole courses in the primary market• Discounting is impacting profitability• Since 2000: 3 18-hole courses closed


18-hole Option – Current Master Plan

• Stabilized year rounds: 25,000• Prime season weekend rate: $102

– Includes cart

• Thunderhawk:$84 w/cart • No driving range income• Estimated sales for food & beverage & pro shop• Food &beverage assumes small meetings, outings and tournaments

– No banquets



• Assumes Forest Preserve operation • High-end courses are more expensive to operate

– Player expectations / client service

• Maintenance / mowing• Larger marketing budget

– ERA: 25% above ThunderHawk

• Replacement reserves • Grow-in / startup costs need to be accommodated



• Effective Gross Revenue: $2.3 million• Operating expenses: $1.5 million• Income before debt: $800,000• Supportable debt service:

– 20 Years @ 5%:$10 million

• Supportable project budget: $12 Million • 30-Year financing is possible

– Would require general fund guarantee


18-hole Option – Current Master Plan-Implications

• Public market should begin to stabilize within two years– Increase revenue per round?

• The private market will remain highly competitive• If Fort Sheridan opened in 2014

– $12 million project budget is insufficient – A significant impact on ThunderHawk– 15% market shift toward Ft. Sheridan from ThunderHawk


9-Hole Scenario• Analysis based on a regulation length 9-hole course

– Consideration of alternative tee boxes and multiple greens– Placement of course primarily in center portion of site

• Market guidance for upscale 9-hole golf is modest– Few Chicago area 9-hole courses priced above $25– Nationally, trade area for 9-hole golf is smaller

• In season weekend fee: $35 for nine holes– Excludes cart – Utilization at 35%– Year 1 net revenue per round $23

• Modest revenue from food and beverage and merchandise– No banquet is assumed– Temporary clubhouse

• Operating expense estimate is built from ThunderHawk/Countryside– Per hole average cost is applied to Fort Sheridan


9-Hole Scenario Implications• Assuming course opening five years from today• Growth in revenue and expenses at 3% per year• 26,000 stabilized year 9-hole rounds (year 3)• Effective gross income of $857,000 could cover operating expenses• No cash flow to support debt service• Construction costs not yet determined


Discussion


PresidentBonnie Thomson Carter, InglesideVice PresidentCarol Calabresa, Libertyville

Anne Flanigan Bassi, Highland ParkMelinda Bush, GrayslakePatrice Carey, GrayslakeStephen Carlson, GurneeMary Ross Cunningham, WaukeganMichelle Feldman, DeerfieldSusan Loving Gravenhorst, Lake BluffDiane Hewitt, WaukeganAngelo D. Kyle, Waukegan

Aaron Lawlor, Vernon HillsAnn B. Maine, LincolnshireStevenson Mountsier, Lake BarringtonAudrey H. Nixon, North ChicagoDiana O’Kelly, MundeleinCollin O’Rourke, WaukeganBrent Paxton, ZionLinda Pedersen, AntiochSuzi Schmidt, Lake VillaDavid B. Stolman, Buffalo GroveCraig Taylor, Lake ZurichTerry Wilke, Round Lake Beach

Executive DirectorTom Hahn

Board of Commissioners 2008-2010

Business

2009-12-02 Fort Sheridan Master Planning Advisory Committee