Cary Park District
To: Board of CommissionersFrom: Dan Jones, Executive DirectorDate: July 28, 2011
RE: Golfvisions Letter of Request
Providing exceptional, recreation, parks and open space opportunities.
The Park District and Golfvisions are in the midst of a three year contract that will expire in January2013. Section 1.8, Restrictive Management Contract Services restricts Golfvisions from managing anyother golf course within a 5 mile radius of Foxford Hills.
Chalet Hills Golf Club has recently gone through foreclosure proceedings and has been moved intoreceivership. The receiver has contacted Golfvisions about managing Chalet Hills for the remainder of the golf season (month to month basis). It is expected that attempts to sell Chalet Hills will begin soonerthan later. As noted in the introduction, Golfvisions is restricted from managing a course such as ChaletHills due to its location proximity to Foxford Hills. Tim Miles has interest in managing Chalet Hills andhas sent a letter to the Park District requesting permission to do so.Management would offer the following perspectives regarding Golfvisions request: 1) there is greatinstability in the golf market at large (and locally) in the area of discount pricing and a competitivemarketplace for greens fees. During portions of the last several years Chalet Hills has underpriced theirproduct and this has affected Foxford Hills ability to maintain solid pricing levels. If Golfvisionsmanaged Chalet Hills they may be able to bring some stability regarding pricing into the localmarketplace; 2) the converse to item 1 is that Golfvisions may be given direction by the receiver toimprove the image of the golf course via increased sales and one way to do this would be throughdiscount of fees to increase round numbers. This would likely have a negative effect on Foxford Hills;3) how would Golfvisions manage to navigate their commitment to the Park District simultaneouslywith their commitment to the receiver of Chalet Hills?; 4) the Park District has a 7 year relationship withGolfvisions and there is a certain amount of trust born from that relationship. There must be trust toallow Golfvisions to manage the chief competition of Foxford Hills.On Friday, July 22 Golfvisions entered into a management agreement with Chalet Hills. Doing sowithout prior Park District approval has placed them in breach of their contract. Tim Miles will bepresent at the Board meeting and will answer questions the Board has of Golfvisions regarding thismatter and their request.
There is no Committee recommendation with this item. It is being brought straight the Board forconsideration.
In recent years Kemper Golf Management was brought in to operate Chalet Hills Golf Club. During thistime their approach to pricing was to cut their prices dramatically and undervalue their product. This
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