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HomeMy WebLinkAboutCSD-06-054 - Doon Valley Golf Course Future Directions ) ~ Community Services Report To: Date of Meeting: Submitted By: Prepared By: Ward(s) Involved: Date of Report: Report No.: Subject: ~ Community Services Committee May 15, 2006 Keith Baulk, Director, Enterprise Division, 2393 Doon Valley Golf Course Future Direction Project Team all May 3, 2006 CSD-06-054 DOON VALLEY GOLF COURSE FUTURE DIRECTIONS RECOMMENDATION: That staff be directed to complete a business case for a City owned and operated 9-hole expansion and a golf skills facility at Doon Valley Golf Course; and, That staff take no further action with regard to the other potential options for golf course lands and tablelands at Doon Valley Golf Course; and, That funding be approved in the amount of $35,000 to finance the outstanding balance of the Asset Review and future development of the business case. BACKGROUND: The City of Kitchener has been considering expansion of the Doon Valley Golf course since the late 1990s. At that time, the concept of expansion was approved in principle and the City began to acquire additional adjacent lands to facilitate an 18-hole expansion. Additional parcels of lands to support the expansion were acquired by the early 2000's. Shortly thereafter, the City began the approval process which included a zone change application and official plan amendment with the City of Cambridge. Cambridge approval was required since some of the golf course lands were south of the 401 which is within their municipal boundaries. Cambridge refused the application and the City of Kitchener took the matter to the Ontario Municipal Board. The Ontario Municipal Board ruled in favour of the City of Kitchener, which resulted in the re-zoning of the Cambridge lands to permit golf course expansion. However, during this time there were some changes to the golf industry landscape as a number of other golf courses (albeit higher-fee courses) were built or were under construction. At the same time, the City formed an Asset Management Steering Committee which is mandated to review major projects and property development initiatives. Because of the delay caused by the OMB and the goal to make sure the best development option was now being considered, the Asset Management Committee asked for a more in-depth review. The review was to focus on potential options for developable and undevelopable land parcels at Doon Valley Golf Course. The options staff were directed to consider are as follows. Golf Course Land Ootions 1. Relocate current tableland holes and redevelop an 18 hole golf course utilizing expansion lands. 2. Expand the golf course to 27 holes. 3. Expand the golf course to 27 holes via a private sector lease to build and operate. 4. Sell the golf course to the private sector. S. Continue with the golf operation as is. All the above scenarios, with the exception of #S "Continue as is", provide for the opportunity to utilize approximately 14.S acres of tablelands for various development options. The tableland development options staff were instructed to review included the following. Tableland Ootions a) R6 zone multiple family residential (similar to adjacent Mill Club Development) b) R1 zone single family residential (similar to some nearby development) c) Institutional (parking or educational use for Conestoga College) d) Golf skills (practice/teaching range, pitch and putt course) e) Decommission (remove all uses and leave for future development to be determined) An overview of the land parcels to be considered for these options is attached as Appendix 1. On December Sth, 200S, these options were presented to Community Services Committee. Community Services Committee directed staff to undertake a public consultation process and complete an evaluation and report back to Committee in the spring of 2006. REPORT: Proiect Team Role It was determined the best way to complete the evaluation and consultation, was to form a Project Team comprised of a relatively broad range of staff and stakeholders. The Project Team included representatives of the Lower Doon Neighbourhood Association, Doon Valley Golf Course members, City staff from various departments (for technical and process input) and the City's consultants. The Project Team was mandated to: · Design an evaluation and decision-making procedure · Design a public consultation process · Conduct the public consultation · Assess the information from the consultation · Rank options based on the decision-making criteria · Recommend a preferred alternative to Council for the future direction of Doon Valley Golf Course The Project Team members list is attached as Appendix 2. Overall Evaluation Criterion and Matrices The Project Team's first step was to develop criteria for ranking the various options for Doon Valley Golf Course's future direction. The criteria to rank the options were established and included the following: 1. City's strategic direction for golf 2. City's risk/reward for each option 3. Public consultation responses 4. Impact on adjacent and subject lands Each of these criteria, with the exception of public consultation, had a number of specific more detailed sub-categories which actually created the matrices used for ranking (see Appendix 7 and 8). At the same time, a financial matrix was developed based on Net Present Value (NPV) that showed the relative financial position of each of the various options. A definition of NPV is attached as Appendix 10. In summary, it was agreed that the ranking exercise and application of the financial analysis would lead to determining a preliminary preferred option for the future direction of Doon Valley Golf Course. First Public Consultation The next step was to undertake the first public consultation which was held on January 25, 2006. A notice of the public meeting was advertised in The Record, on both the City of Kitchener and Doon Valley Golf Course websites, on signage around the golf course and at Doon Pioneer Park Community Centre. In addition, approximately 3,000 invitations were delivered to residents living in the lower Doon Neighbourhood, as well as members of both Rockway and Doon Golf courses. A total of 185 people attended this information session. Of the total, 58 were members of the Golf Course and 127 were residents. The consultation was an information sharing and question/answer session. The various options were presented to the public along with the evaluation criterion. Following the information session, those in attendance were asked to complete evaluation forms which allowed them to rank their preference for each of the options for the golf course lands and table lands from the most to least preferred. Respondents were also given the opportunity to offer comments on the form. These forms were available at the meeting as well as Rockway Golf Course, were mailed to over 2000 residents and members, and were available on-line on the City's website. In total 137 written responses were received. Of the 137 responses, 69 were Lower Doon residents, 50 were Kitchener residents outside Lower Doon and 18 were non-Kitchener residents. Communications staff then summarized the comments and populated the public feedback matrices. The results from the summary show the public supported two options for the golf course lands - "Continue with the Course as is" and "Expand to 27 Holes by City". The public felt strongly a golf skills facility was the only acceptable alternative use of the tablelands. A summary of the public response from the two consultation matrices are attached as Appendices 3, 4 and 5. Comoletion of the Overall Evaluation Matrix After receiving the written responses, the public's collective response was entered on the overall evaluation matrix. As well, the Project Team began their process to populate the matrix under the other evaluation criteria. Each member ranked the criterion against each option from "most beneficial' to "least beneficial". The rankings were then averaged to complete the scoring. There were two studies completed to assist the Project Team in ranking the outcomes where the team felt more data and technical analysis was required. The Landplan Collaborative Ltd. completed an overview of the potential effects of the options for Doon Valley Golf Course on the tableland and adjacent land environmental features and functions. As well Paradigm Transportation Solutions Ltd provided a traffic analysis on the various options. These studies assisted the Project Team to complete rankings in the environmental and traffic sub-categories within the "Impact on Adjacent and Subject Lands" criteria. Once the total scoring was completed, the results were used to determine a preliminary preferred option for Doon Valley Golf Course's future direction. The detailed results are provided in Appendix 7 and 8. It became clear there were only two options that should be considered as preferred options based on the overall evaluation matrices scoring which included public consultation. Either "Continue with the Golf Course as is", or "Expand the Golf Course to 27 holes with a Golf Skills Facility" were the only options that the results indicated should be considered. However, the financial NPV matrix (attached as Appendix 6) showed the "Expand to 27 holes with a Golf Skills Facility" as returning a higher NPV to the City. NPV was compared for the two clearly preferred options. The outcome of the NPV comparison is as follows: · Continue with golf course as is · Expand to 27 holes with golf skills NPV $6.1 million $7.6 million Increase in NPV over status quo $1.5 million As a result the project team agreed to present the expansion option as the preliminary preferred option to the public at the second public meeting. Environmental Committee Comments The City's Environmental Committee, which is comprised of Kitchener citizen volunteers and is advisory to Council, also reviewed the options. At their regular meeting of March 23rd, 2006, they passed the following resolution in support of the preferred options: "That either Option 1 (continuation with the golf operation as is) or Option 4 (Expand the Golf Course to 27 holes), as outlined in Appendix 2 of Community Services Department report CSD-05-025, be selected as the preferred golf course lands option for the future of the Doon Valley Golf Course; and further, That all developable table land options, which call for the sale of the 14.5 acres of Doon Valley Golf Course Table Lands for the purposes of development be rejected." Second Public Consultation - Preliminarv Preferred Ootion As indicated, the Project Team recommended that the preliminary preferred option of "Expand to 27 holes with a Golf Skills Facility" be presented for public input at the second public meeting on April 5th, 2006. A total of 118 attended the second meeting. Attendance was comprised of 24 members and 94 residents. A presentation was given to those in attendance. It summarized the public's comments from the first meeting, the Project Teams evaluation outcomes and the rationale for the preliminary preferred option. Attendees were requested to ask questions or comment on the preliminary preferred option. A copy of the meeting notes which include comments from those attending the second public meeting is attached as Appendix 9. Proiect Team Recommendation to Committee The Project Team is recommending completion of a business case for the preferred option - Expand Doon Valley Golf Course to 27 holes with a Golf Skills Facility. They are also recommending no further consideration of the other potential future options for Doon Valley Golf Course. This is based on the scores derived from the evaluation matrices completed by the Project Team members, the financial NPV calculations, and the public consultation feedback. Proiected Next Steos If Committee and ultimately Council directs staff to proceed to a development of a business case for a 9-hole expansion, it is projected it will be presented in January of 2007. This will allow Council to consider the project as part of their 2007 budget deliberations. Staff will prepare the business case in-house through the Project Administration Office. It is expected the standard template will be used with some modifications. The business case will include detailed information on the project demand feasibility, detailed budget projections, cash flow analysis, design parameters, construction processes, and risk analysis among others. Appendix 11 provides an overview of golf demand analysis, which is further support for proceeding with the business case. The business case will be presented as an enterprise investment project. The business case will outline that user fees will cover 100% of the investment over time. The Project Team, including the citizen and golf course members have agreed to carryon in an input/oversight role in the development of the business case. For example, the Project Team could make suggestions such as a peer review of the business case prior to presentation to Council in January. FINANCIAL IMPLICATIONS: The business case will require some support from the consultants such as concept design upgrades and detailed costing reviews. In addition activities such as a peer review would require some funding. Staff suggests a budget of $15,000 to complete the business case portion of the project. In addition, staff is requesting funds in the amount of $20,000 to fund the balance of the consulting fees in undertaking this review. The total of $35,000 will be funded on an equal basis between the City's Asset Management fund and the Doon Valley Expansion Capital accou nt. CONCLUSION: The recommendation to develop a business case to expand Doon Valley Golf Course to a 27- hole facility with a golf skills facility comes as a result of an inclusive and broad review of the various options. The Project Team is unanimous in their support of the recommendation. If Council directs staff to proceed with a detailed business plan on the preferred option the business case will be the tool Council ultimately uses to confirm its support of the project. Finally, the Project Team, especially the volunteer citizen and golf member representatives, should be commended for their intensive and valuable participation. Keith Baulk Director Enterprise Division Community Services AP APPENDIX 1 Walter Bean Trail bridge over Grand River GOLF COURSE LANDS (current and possible expansion) DEVELOPABLE TABLE LANDS (+/- 14.5 acres) Project Team Members Owen Scott Shawn Watters Gary Hastings Lori Schulz John Parfect Gerry Denomme Kendra Martin David Menary Barbara Steiner Robert Morgan Dan Chapman Saleh Saleh Keith Baulk Hans Gross Appendix 2 Land Plan Consultant Golf Course Architect Manager of Doon Valley & Rockway Golf Courses, City of Kitchener President of Lower Doon Neighbourhood Association Mill Club Condominium Representative Doon Valley Men's Committee Representative Communications Associate, City of Kitchener Copywriter, City of Kitchener Environmental Planner, City of Kitchener Capital Investment Advisor, City of Kitchener Director of Financial Planning, City of Kitchener Senior Financial Analyst, City of Kitchener Director of Enterprise, City of Kitchener Director of Economic Investment & Project Administration, City of Kitchener Appendix 5 Summary of Public Input Received for Doon Valley Golf Course Options Golf Course Lands & Table Lands On January 25, a public information session and open house was held at Doon Valley Golf Course. The purpose of that public meeting was to provide residents and members with the following options: 5 options for the Golf Course - The major options for the future of the golf course are as follows: . Relocate upper developable table land holes; redevelop 18 hole golf course (Implies sale or decommissioning of table lands) . Expand golf course to 27 holes . Expand golf course to 27 holes via private sector lease to build and operate . Sell golf course lands to private sector . Continue with golf operation as is 5 options for the Developable Table Lands - 14.5 acres along the golf course entrance roadway that could be made available for a range of uses as follows: . R6 Zone - Multiple Family Residential (+/- 114 units) . R1 Zone - Single Family Residential (+/- 18 units) . Institutional (parking lot or educational use for Conestoga College) . Golf Skills (practice/teaching range, pitch & putt course, exhibits area) . Decommission the lands (remove current golf course uses and leave for future consideration) A notice of the public meeting was advertised in The Record, and close to 3,000 invitations were delivered to residents living in the lower Doon Neighbourhood, as well as members of both Rockway and Doon Golf courses. The public meeting was well attended with more than 185 people in attendance to share their comments with a number of City staff and Councillors who were present at the meeting. By the February 8 cutoff date of for public comments, the city had received a total of 127 written submissions - 26 of which were received via e-mail or on our internet site. Common Theme of Public Input: Most submissions focused particularly on the Golf course lands, rather than the table lands. From the comments received, there were general themes that emerged. While residents had specific comments or questions on the options for the golf course lands, a substantial number of the comments indicated that residents and members want the golf course to remain as is, or possibly expand to 27 holes, with the City continuing to own and operate the course. There was not one comment sheet received that indicated the City should expand golf course to 27 holes via private sector, or sell the golf course and table lands to the private sector. Many of the written submissions highlighted traffic flow challenges that already exist in this area. The concern was raised that this will only increase if the course changes in any way, and expressed further concern over safety if more traffic is added to these already congested areas. The main concerns expressed with regard to the Golf Course lands and the options below are as follows: . Relocating upper developable table land holes; redevelop 18 hole golf course (Implies sale or decommissioning of table lands) . Expanding the golf course to 27 holes via private sector lease to build and operate . Sell golf course lands to private sector . Residents were strongly opposed to losing the existing golf course lands and green space now used for recreational use, and as habitat for the bald eagle and wild animals. . As the golf course lands are within an already established residential neighborhood, many residents indicated they purchased their homes (some at a premium price) specifically because of the existing golf course and green space and would not want to lose this amenity as a recreational resource. . The overwhelming concern expressed by residents was the traffic congestion which already exists on Homer Watson and on some of the residential streets in the area. According to almost all of the written submissions, the area could not accommodate the increased traffic flow and the negative impact it might have on safety. APPENDIX 5 ANALYSIS of RESPONSES from January 26, 2006 Public Meeting - Doon Valley Golf Course - Moving Forward PUBLIC COMMENTS Unacceptable to hear the proposal to sell or lease the golf course if the mandate is to offer affordable golf and recreational facilities to the public. Suggest to improve by including a nine hole pitch and putt for juniors and beginners, a pay as you go driving range for non members a renovated club house. However would prefer to leave Doon as is Keep course the same! See no reason for expansion of the current course (any changes would destroy the course configuration which is so attractive and has served the population of so many age groups over many years) Golf course should stay the same or expanded. The City should be proud of the courses, turning Doon into a residential jungle is not an answer for progress. The city officials that make the final decision on the future of Doon should strongly consider the outrage that they will be subjected to by the members and the public which consider Doon a part of our local history and culture. Destroying an old rnn down building in downtown Kitchener is very different than destroying a functional facility that the city of Kitchener should be very proud Please leave golf course alone, respect the golfers The way Kitchener is growing we cannot lose amenities such as golf as it is a very popular sport and people don't want to travel miles to golf The city should not consider selling green space as a means to raise funds to help downtown development Please leave for golf. Expand to 27 holes and golf skills also redo the old section, as per Rockway I was under the impression the City counselors were voting against the selling off of park land no more houses, keep green space for recreation More houses will cause gridlock on the roads, schools will have to be build and the quality of life in the region will decrease with tax increases and less space for recreation continue as is or expand. Kitchener is already over developed with a shortage of water and lack of recreational facilities, we need more space not less expand, The staff treat you like family, conditions are great. Have been using the facilities since 1960 There are insufficient green areas to sustain the level of recreational services. Traffic to the course is now excessive and will only get worse City must decide why it is doing this (to make more money to add housing or to serve the community). I recommend the rates be increased to make sure viable ROI. Leave course way it is remodel clubhouse, add memberships at higher prices, but leave the course Expand, but what will be the impact on green fees and memberships What timing can be indicated for the completion of the expanded golf course option? Any plans for club house improvements? Golf course is a park, do not sell off park land especially to private developers Leave as is The golf course is operating very well, leave it alone the golfers in our community are entitled to public support just as the hockey players are Green space is at a premium you can't get it back once it is gone. Some people at city hall have too much time on their hands. what could possibly be a good reason to give this land to developers for houses? Leave as is, don't fool it, baby boomers will keep course busy too many people rely and want to use this course, don't take it away, if you build houses, you can't get the land back. Agree with most decisions from city, however starting to get reservations with Library, and golf course. Leave course as is. Disagree with any proposal to sell or lease a city owned golf course. Once the city loses full control, the maintenance will decrease, and the course will not be the same Without Doon there will not be enough golfing times in the area at a reasonable price Do not sell to private parties, lands on cambridge site, retain for future or immediate parklands Losing recreational green space is the worst option. Moving the table holes to a lower area will create numerous environmental concerns. Encourage members and other golfers to stay afterward for drinks to make a profit. no need to make changes. Current areas marked expansion lands should be kept for future. This whole project is a waste of time courses are always busy, would be wise to expand existing golf facilities. makes good money for city, to sell of part or all to spend the money made on the downtown is not good business. Keep as is. build a new club house All the existing facilities need is a new club house. Would be a shame to change existing layout. Build a new clubhouse to increase profitabilty, area is expanding and need golf courses. Build a new clubhouse Leave course as is and build a new clubhouse to accommodate larger groups to make money leave lands for benefit of plants and wildlife. Doon is a beautiful course and a credit to Kitchener. Keep as is or just upgrade the clubhouse. Stop destroying what is working Maximize use of riverfront, add a trail Do not move houses on green space. Land is an investment keep it. It is essential for a healthy community seems ridiculous to change this developed golf course, keep what is working, more housing will increase traffic and decrease wildlife. Safety is an issue and this is one of the few facilities that is in Doon, don't take away. if the upper holes are sold, will the money be used to build the course to 27 holes or for the downtown? Renovate or build new club house and pro shop Having 2 golf courses in the city is a huge asset, selling would result in lost revenue and job losses for staff. Expanding would increase revenue and relieve pressure on bothecourses on weekends. More tournaments could be held which will increase people spending money in Kitchener It is very sad and upsetting that money is such a priority in changing the golf course. I paid a premium $25,000 for my house to back onto the golf course. You will have a lot of angry, upset and disappointed residents in this neighborhood. If you are going to sell a course, sell Rockway, it is in the city and more valuable. The golf course enhances the lives of people in the area, and those who have invested in the area. Nothing should be changed without local consent If City's strategic direction for golf is trne then leave as is. Only change acceptable is to bring in a practice range. City should not sell green space, NO HOUSING or public sector ownership Try getting out to homer Watson now - let alone with all the extra home owners if you build homes Follow city's strategic direction for golf. Leave as is or expand and leave table land for practice range. No housing or sale to private sector Traffic is a major consideration Any more housing on table lands will overburden area with traffic. Developing 2 holes on former Kunsch lands (flood plain) will eradicate valuable animal habitats This land should remain as a golf course held by the municipality. Under no conditions should residential housing be considered. The traffic problems associated with residential development will cause problems. Private ownership of this course should not be considered. City should keep as much open green space as possible. The traffic on Doon Valley Dr. is already at an extreme level. Golf courses should be kept at a quiet serene atmosphere, without high rises surrounding the exterior. All levels of government are attacking the obesity problems by way of exercise programs, golf is an activity for all age groups. Doon makes money for the city, why is the city even considering selling even a part of it? Leave as is or enlarge it. The traffic is a huge consideration there is 90 townhouses starting on Pinnacle which will add over 100 extra cars. With all the walking trails in the area it would be terrible to destroy this by adding more houses, cars and people. I feel the City needs affordable golf facilities like Doon. The newer courses are not affordable for the average person. City should be looking at a water pipe line. Leave golf as is, think about green space for a change. Too much traffic already. I understand Conestoga College has expansion plans and is already short of parking, perhaps parking could be provided on the west side of homer Watson or south of the 401 and more use of a shuttle bus. If the golf course cannot stay then the most bucks should be made out of the area. A casino should be built to maximize our profit. They should put in a first class course and bring in more money. Traffic will be horrendous if property is deemed for residential. The 27 holes should generate plenty of revenue even in the so called "Changes competitive landscape of the golf industry". We do not need more residential development which is subject to being rnn down by more illegal student slum landlords operating somehow outside of legal restrictions. Other lands in this area are already being developed in this manner. Traffic noise and property deterioration will be on the rise. No consideration what so ever should be given to any residential or institutional use for these lands period. The City should never consider selling or developing publicly owned green space lands. Who asked for this? Not the people of Kitchener. Leave as is The Doon Golf Course has been owned and operated for 42 years. Suppose 41 years ago it was sold at the current value, taxes received in those years would never be higher than the appreciated value and the profit realized from golf. The City maintains other recreation facilities that operate always in a deficit position! I give the City credit for being able to look ahead and save this land for a beautiful green golf course. Just moved here from Oakville for a more countrified lifestyle. We like the fact we are surrounded by green space. There are traffic and congestion due to the college, adding more residential will only make things worse. Please leave as is. Don't sell out! Keep in public hands and continue golf use. Do not build high density of institutional. I do not see any need for the City to sell part of a recreational facility. We need to increase our land for recreation and fitness not decrease. Our neighborhood cannot handle anymore residential traffic, it is a nightmare already. The City should not gain financially from the sale of public owned (we pay taxes) property and then use the funds in other parts of the city. Should stay as a golf course, and expand as such Please do not build more residential in this area, traffic is already bad, cannot absorb more congestion. Second concern is the loss of more green space, keep as is residents of Lower Doon Area - Do not want residential built - already too much traffic. Our families use the course in the winter for cross country skiing and tobogganing and enjoy these family activities, please keep as is so that they are kept public and can be used for recreational purposes concerned about already heavy traffic. Leave as is or if expanded deal with traffic asap already too congested, keep open space and wildlife habitat for future generations. do not remove green space from city, the golf course could generate additional revenue from expanding as a member and resident I strongly recommend the City continue operating the golf courses consistent with its mission statement, also generates money, keep it! keep as is, it enhances the neighbourhood and we don't need more traffic municipalities should not be in golf business, don't need more holes, leave as is. do not use financial crieteria in the decision making process, quality of life for neighbours should be more important. Do not reduce green space, contrary to mission statement have you considered street address changes, this is a confusing area, protect retirees, keep the course need to keep space for retirees and recreation. Students and too much traffic will result if sold. this is an enjoyable area for residents and visitors, to add more buildings, a parking lot is a nightmare, leave as is, a natural area for Kitchener Leave for retirees and recreation. Doon makes a good profit and serves the community. Save our greens pace never sell land - you can't get it back. Golf course is a gem. do not sell table lands do not increase residential zoning, it is for tax increases which is not a viable option. Leave as is for young and old and recreation. Traffic is already a problem there is no other public space in this area, why is development the preferred option for the table lands? We need green space Leave alone! No valid economic forecasting has been released as to the financial outcome of any of the alternatives. If income is required sell of victoria park and city hall any residential development would expose occupants to considerable noise and pollution hazards with traffic. Once land is sold, gone forever seems to be little consideration given to other possible recreational uses of flood plain lands, use as walking trails and keep natural heritage of Grand River hope this is not a case of the decision already been made, and this is useless. Leave as a golf course. People who bought condos did so to have a country setting and golf course in back yards. Traffic is bad enough. If you want money take Rockway. providing green space and recreation needs to be a high priority. Vital to the well being of any community. our neighbourhood cannot afford anymore radical changes and still retain its beauty and uniqueness which brought us here in the first place entire course should remain as green space, we should not endorse any plan that involves development or selling. Area cannot sustain further development or traffic current traffic is far too congested, the addition of housing will only make it worse and safety an issue. decommissioning the table land or turning them over to private would be contrary to City's strategic direction. 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N M M "" ~ ..... ~ u:i ..... u:i C"II .n CIl Q) .s::: Cl :c CIl .ll:: s:: ca ~ ~ '0 ~Cl c s:: o ~ o APPENDIX 9 Project Team: Keith Baulk, Gary Hastings, Owen Scott, Shawn Watters, Kendra Martin, David :\tIenary, Lori Schulz, John Parfect, Dan Chapman, Saleh Saleh, Gerry Denomme, Hans Gross Barbara Steiner, Robert Morgan, :\tIichael May Rob Deutschmann :\tIayor Carl Zehr, John Gazzola, Geoff Lorentz, Barry Milner, Phil Grubb Kelly Mac:\tIillan 118 Absent: Facilitator: Present: Minutes: Attendees: 1. Introductions & Presentation Purpose of the meeting is to provide the public with the results from the feedback analysis from Jan 25th; to give the public an opportunity for questions; receive comments regarding the presentation; make comments supporting or not supporting the preliminary preferred option and outline the next steps of the process. Comment sheets were made available and can be completed and submitted at the conclusion of the meeting. In addition, comments may be made on the City's website. Owen Scott of Landplan Collaborative Ltd. provided the presentation. The presentation highlights included the following: - 185 attended the Jan 25th Open House. 137 responses received. - Options preferred by the public based on first and second choices were as follows: GOLF COURSE OPTIONS 1 st Choice - Continue with golf operation as is 2nd Choice - Expand the golf course to 27 holes 3rd Choice - Relocate table land holes & redevelop 18 holes course 4th Choice - Expand the golf course to 27 holes via private sector lease 5th Choice - Sell the golf course - no one ranked this option % Ranking 50.6% 1 41.1 % 1 6.1% 2 2.1% 3 0% 4 TABLE LAND OPTIONS 1 st Choice - Golf Skills development 2ndChoice - Decommission the table lands 3rd Choice - Rl single family residential 4th Choice - Institutional use 5th Choice - R6 multiple family residential 55.7% 16.1% 13.2% 11.9% 2.9% The project team then evaluated the golf course & table lands option utilizing the criteria outlined at the January meeting. The criteria included: * City's strategic direction for golf * City's risk/reward * Public consultation responses * Impact on adjacent lands - environmental, traffic, recreation, safety, \valter Bean Trail & zoning Following the ranking it was obvious there were only two options that should be considered. One was to "continue with the golf operation as is", and the other was to "expand the golf course to 27 holes with a golf skills facility". ~'\ financial overview was prepared by conducting a Net Present Value (NPvl calculation for all the options. The NPV calculation showed golf skills & residential options combined with redeveloping an 18 hole course, and expanding the course to 27 holes, improved the Net Present Value over status quo to the greatest extent (approximately $1.5 million). Since expanding the golf course to 27 holes with a golf skills facility was the only option that received a favourable ranking based on all the other criteria, it was determined to be the preferred op!:1on. Based this analysis and the additional public input from tonight's meeting, the project team will prepare a recommendation to Community Services for May 15d1. Then a Business Plan will be prepared for November and presented to Council in January 2007. 2. Questions and Comments from the public: Me Mike McElhome: QUESTION: \vhy wasn't there an economical or financial study done ahead of time prior to these options being presented to the public? RESPONSE: The objective of this exercise was to involve the public from the start of the process. A number of the studies were begun ahead of the public process, such as the R6 & Rl appraisals so that accurate and timely information could be included in the matrices. However it was the project team's position from the start that financial outcomes were not the only, or most important criterion to make this decision. Me Stewart Thomas: QUESTION: If you are presenting 1st & 2nd choices, why was the 2nd choice included in the ranking and not just the 1 st choice? RESPONSE: The project team felt just choosing the 1st choice wasn't totally reflective of the public feedback. Most respondents ~aid they}k~,d "~~lntinue as is" but also liked "Expand to 27 holes" or vice- versa. Many respondents didn t rank 3 , 4 , &:> options. No name given: RE:NL\RK: \v'hen you talk about the margins of risk & reward, how accurate are those numbers? Bad experiences with RIM and our own Market indicate that stats are not very accurate. How can the stats be true when most people rated to leave "as is". Mrs. "Muriel ~Iorgan: RE:NL '\RK: There are more & more seniors moving into this area and my experience is that life doesn't stay the same. We have the land -let's develop golf course and golf skills facility. Going ahead will also give the city a financial gain. Me Bob :'vfcCall: RE~LARK: The City's Environmental Committee met recently and rejected the residential development of the 14.5 acre table lands. Mrs. Lauraine Thomas: QUESTION: \vhat is the value you are putting on lifestyle & seniors' health? Should we assume that this expansion is going to be beautiful and that a real assessment has been done for people enjoying golt? Is there a plan done for us to see? RESPONSE: With regard to Question #1 healthy lifestyles values were incorporated in the evaluation. The City's Strategic Directions for Golf Criteria reflects this measure. Owen Scott reviewed the Strategic Directions. \vith regard to Question #2, preliminary designs have been prepared, but are only conceptual. If there is approval to proceed, a business plan and a more accurate design will be completed and the public will be given an opportunity to review it with the Architects. Ms. Louise Stevenson REMARK ~\ND QUESTION: Pleased with the recommendation, however will this recommendation be the actual one that is presented to Community Services? W110 is presenting the recommendation? RESPONSE - Yes this recommendation will be presented by Keith Baulk in conjunction with the project team. Ml'. Stewart Thomas: RE:\L\RK: The conceptual drawings should be done now for everyone to see. QUESTION: Is the plan to leave the current golf course the same, and then expand the 9 holes over the 401 an option? RESPONSE: The architect will strive to preserve as much of the current 18 hole jewel and develop the additional 9 holes independently. Ml'. Stewart Thomas: RE~LARK: My concern is that expanding in phases is, if only phase I is done and then phase II never happens, we have a much less attractive golf course. Ml'. Peter Weiss: RENL\RK: Pleased with preliminary report. He asked if the Mayor was supportive of the report. RESPONSE: It was suggested that the Mayor and council have not been given the information to formulate their decision. ~Iuch work including development of a full business case needs to be completed prior to final decisions being made. Mayor Zehr: Council and staff are here as part of the public process. Council will deal with all the information. It is still in the preliminary stage. Mrs. Lauraine Thomas: QUESTION: Why did you decide Doon Valley for skills development and not Rockway? RESPONSE - Rockway has less space and the Doon south area of the City is growing rapidly. Mrs. Lauraine Thomas: QUESTION: How is it established that the golf course has developable table lands when the golf course has been here for 30 or 40 years? \vhere did these lands come from? RESPONSE: The City's ~\sset .YIanagement Steering Committee encourages strategic reviews of all the City's facilities. There are many City assets and generally when a major change is being recommended the committee suggests an all-encompassing review take place. In this case the table lands is the only area that could be developable. Ms. Joan Elizabeth: QUESTION: Is the Walter Bean Trail going through the golf course or around? RESPONSE: ~'\ number of options have been presented for the trail by the city. No final decision has been made and this committee doesn't make that decision. Mr. Greg Clark QUESTION: \v1ut is the history behind this project with Cambridge? RESPONSE: In 2002 the City planned on expanding to 36 holes using lands in Cambridge. An application was made to Cambridge for a zoning change and Cambridge turned the application down. There was an OMB hearing in 2003 and the OMB voted in favour of the City of I<..itchener. The OMB also made some restrictions due to environmental concerns which resulted in the 27 hole expansion option. Ms. Yvonne Hernandes: QUESTION: \vant to see the golf course continue with good environmental practices & good turf management. If some of the land is in Cambridge is there a t~x issue? RESPONSE: There is not a tax issue of any significance. J\:fr. Rick Schulz: QUESTION: What impact does this project have with an election coming up? RESPONSE: The committee's objective is to make a recommendation of a preferred option in ~Iay and then complete a business plan. The project team has done excellent work that should not be jeopardized by rushing the business plan. Therefore, it was felt the best approach would be to ensure an all-encompassing business plan be done which will take a few months and a presentation will be made in January. If the committee gets direction to move quicker on :\IIay 15th they will. Mr. Rick Schulz: QUESTION: Is additional parking considered? RESPONSE: Yes there will be additional parking, Ms. ~'\lison Townsend: QUESTION: Is the golf skills going to be all year or seasonal? RESPONSE: Seasonal Will the clubhouse be relocated? RESPONSE: Not at this time. Mr. Rob Ritza: QUESTION: Has the city considered underground sewer with the increased traffic? RESPONSE: No there are no issues with servicing. Staff have been advised the septic system is sufficient. Ml'. Rob Ritza: QUESTION: Is parking in that 1.S million difference? RESPONSE: Yes Mr. Doug Craniford: QUESTION: \V11en do we go from a conceptual drawing to detailed drawings? RESPONSE: The next steps will include the detail. The committee will continue to keep everyone informed. Golfers and the public will be encouraged to comment on the drawings at a future meeting. Mr. Eugene Clutterbuck: QUESTION: Is there a reason for expanding the table lands rather than leaving as is? If you build golf skills, what happens if it's a flop? RESPONSE: Demand studies have been done. The Business Case will demonstrate the need. Mrs. Lauraine Thomas: QUESTION: Was the clubhouse included in the budget? RESPONSE: Not a major renovation. Short term upgrades are being done and included in the budget. For example the kitchen has been expanded and some other areas of the clubhouse are being improved. Ms. Sharon Bruce: REMARK: Favours expansion to 27 holes and golf skills - Toronto customers can come very easily to Doon Valley. Shawn Kennedy: QuESTION: Representing a couple of junior members who are expected to report about the skills development in school tomorrow. Can you explain the skills area further? RESPONSE: The purpose is to encourage skill development. There will be practice range and a 9-hole chip & putt with target greens. It will enable people to work on their short game and encourage adults to go out with their kids. J\:{eeting adjoumed APPENDIX 10 DEFINITION OF NET PROJECT VALUE (NPV) NPV is the present value of future cash, discounted at the opportunity cost of capital, minus the initial investment. NPV is used in capital budgeting as a tool to evaluate multiple options because it uses discounting to deal with the magnitude, timing and risk of different cash flow streams. When NPV is > 0 an organization is generating funds beyond those necessary to repay the initial investment and provide a reasonable return on its investment (i.e., the project is desirable). NPV results may be influenced significantly by the assumptions in the model (i.e., discount rate, relevant time period, etc.). APPENDIX 11 The information attached provides a summary of the initial demand review which provides further support for moving to development of an expansion business case. Attached are summaries of the 2004 KPMG Market Study findings and a Situational Anal ysis of Doon Valley demand. KPMG MARKET STUDY · Based on critical indicators, discussion and analysis, the economic indicators and conditions for golf in the market area are favourable as a whole. The key market indicators examined and the associated trends implied from our analysis are as follows: Based on partIcIpation information available, and population and demographic information for the market area as a whole, there is a macro-level indication that the supply of golf holes is in excess of demand in the defined market area. As discussed previously in the report, when dealing with provincial-level participation rates, artificial boundaries and several assumptions, this result can become skewed since provincial results are not necessarily reflective of the defined market area and the assumptions are not measurable. As such, the 'micro-level' indicators will corroborate or refute the findings of the 'macro-level' analysis. · The micro-level analysis of green fee rates has demonstrated the overall market is relatively healthy. In fact, we have observed that the average green fee rate growth for the 2001, 2002 and 2004 golf seasons has exceeded inflation. Green fee rate increases in excess of inflation are a positive indication of demand. However, we have also observed that the green fee growth for the entire market has decreased from a high of 5.2% in 2001 to a low of 0.6% in 2003. It is also interesting to note that the green fee growth has rebounded to 4% in 2004. Based on our research, we believe that despite the fact that green fee growth has experienced a downward trend from 2000 to 2003, the market is relatively healthy. Furthermore, we believe that the upward trend that has been observed from 2003 to 2004 indicates that the market is well positioned for the future. · Based on our analysis of rounds played at the mature courses in the market area, we have observed that the average number of rounds played over the last five years has been above or similar to normal operating capacity of 35,000 from 1999 to 2002. Rounds data in excess or at normal capacity is a positive indication of demand. We have also observed that rounds played in 1999 (above normal capacity) and 2003 (slightly below normal capacity) have been influenced by the weather conditions. Therefore, from a competitive point of view, rounds played at the mature golf courses in the market area have been relatively stable and at normal capacity over the past five years. This is encouraging in considering the fact that three regulation length public golf courses have entered the marketplace over the past three years. This is a positive sign of demand and demonstrates that the market has been able to support additional supply of golf courses in recent years. Therefore, we believe that the average number of rounds played in the marketplace is at an appropriate level and indicates that the market area is relatively healthy. OVERALL MARKET SUMMARY · Based on KPMG's research of green fee growth rate, rounds played and weather patterns experienced in the market area in recent years, they believe that the market is relatively healthy. The marketplace has also been able to support new supply of golf courses in recent years. This is reflective of a healthy market. Therefore, the market study demonstrated that the defined market area is a relatively healthy and appears to be well positioned for the future. DO ON VALLEY GOLF OCURSE SITUATIONAL DEMAND ANALYSIS · Pro shop staff are reporting that they are continuing to turn away large numbers of green fee player requests for tee times. According to our golf pro, at least 200 players are turned away each Saturday and Sunday. · An additional nine hole course will allow current turned away green fee players an opportunity to play and produce additional revenues. · There is a growing trend towards more nine hole golf tournaments. · Women's golf is the fastest growing segment in golf. Many women want to play just nine holes. This is a huge untapped market that fits well with our strategic directional mandate, as well as additional revenues. · Getting many more request for leagues, in which some only want to play nine holes. · Junior golf is also one of the fastest growing segments within golf right now. We have seen an increase in the number of junior golfers. This is why an additional nine holes, practice facility and pitch'n putt course is important. It fits within our strategic directions and will be a good revenue producer. · Many families want to come out and play with their kids. The practice facilities along with the small 9 holes pitch'n putt course will be a perfect fit for accommodating families, as well as producing revenues. · Rounds and revenues at both Rockway and Doon Valley have gone up in the past three years.