MWGCOA

Box 385494
Bloomington, Minnesota
55438-5494

Phone: (952) 854-7272
Fax: (952) 888-1366

email:
mwgcoa@aol.com

website: 
www.GolfintheMidwest.com

News of the MIDWEST CHAPTER

2007 SUMMER NEWSLETTER - CLICK HERE
 

NEWS OF THE

MIDWEST CHAPTER

MINNESOTA, NEBRASKA, NORTH DAKOTA, SOUTH DAKOTA

Summer, 2007

 

MICHAEL VEECK TO KEYNOTE 11TH ANNUAL

CONFERENCE AND SHOW

October 29, 30 2007 at the Prom Center, Oakdale Minnesota

Mike’s is a name that’s synonymous with fun at the ballpark. He’s worked with four Major League clubs: the Chicago White Sox, Florida Marlins, Tampa Bay Devil Rays and Detroit Tigers. Today Veeck is the partowner of five baseball teams including the CharlestonRiver Dogs, and the Saint Paul Saints. It is with the belief that anything is possible and no idea too silly, that Veeck operates his ballclubs.  After all, who else would hire a dog or pig to deliver baseballs to the umpire, mimes to perform instant replays, or lock fans out of the stadium to set an all-time attendance record for the fewest people at a game. An advertising professional, coveted speaker, founder of Veeck Promotional Seminar and all around idea man, Veeck has recently released his first book entitled Fun is Good describing how this philosophy can lead to success in any business.  Mike’s thoughts are a key to player development and retention--make golf fun! You won’t want to miss him!

MWGCOA’s ANNUAL CONFERENCE EXPECTED TO DRAW UP TO 200 OWNERS AND GUESTS

Greg Stang, President of MWGCOA and General Manager of Wilson Golf Properties has announced dates and themes for this year’s conference. “Starting with the idea of understanding how and why our customer spends money and time for golf, was a natural  lead-in to learning about what people think is fun” said Stang. Linking the Experience Engineering seminar on Monday with Mike Veeck and the other Tuesday speakers at this year’s conference, is a natural for the golf business; one we need to master to prosper”.

“With today’s customer asking more of all of us than just paying a green fee and hitting a ball, new entrants to the game have to be persuaded that the fun they can enjoy at golf is equal to the many other competing diversions for them and their families”, said Stang.

Up to 200 golf course owners from Minnesota, North Dakota and South Dakota, Nebraska and Wisconsin will gather at the Prom Center for a good look at how our customer has changed, and how the expectations of all buyer relationships demand creative ideas to remain fresh. “In short we need to think of selling a ‘fun fee, not just a green fee. If golf can learn the lessons of promoters of other sports, for the “two thousands”, our goals of new player development and retention can be reached to re-energize golf”, said Stang.

NOMINATIONS FOR OFFICERS AND DIRECTORS COMPLETED

Dan Raskob, Chair of the Nominating Committee has reported his committee has completed their work and will nominate a slate of officers for election at this year’s business meeting to be held during the Annual Conference at the Prom Center.

For President
Greg Stang General Manager, Wilson Golf Properties, Stillwater Minnesota

For Vice President
Janice Arcand Owner, Oneka Ridge Golf Course, White Bear Lake, Minnesota

For Secretary
Mike Tozier Owner, The Links at Northfork, Ramsey, Minnesota

For Director
Tom Smith Owner, Brackett’s Crossing Country Club, Lakeville, Minnesota

 

COURSE OF THE YEAR GOES TO THE WILDS GOLF CLUB PRIOR LAKE, MN

MWGCOA’s Board of Directors has announced their unanimous choice of The Wilds Golf Club for 2007. Owner Mike Regan, and General Manager Shad Gordon will receive the award at the MTI/TORO Awards Luncheon during the Annual Conference and Trade Show October 30, 2007.

The Chapter Course of the Year is selected annually, and the choice is then forwarded to the NATIONAL GOLF COURSE OWNERS ASSOCIATION for consideration as their Course of The Year. Minnesota had the honor of its nominee in 2006, Legends Club in Prior Lake, MN being chosen by NGCOA as their North American Course of the Year for 2007.

The National Award is presented to the winning course during the Golf Industry Show, to be held in Orlando, Florida. The Golf Industry Show is now combined to include the GCSAA Education Conference Jan.28-Feb. 2, the NGCOA Annual Conference Jan. 29-Feb. 2, and the CMAA World Conference on Club Management Jan. 31-Feb.2 2008 at the Orange County Convention Center in Orlando, Florida. Owners who may plan to attend this combined show can secure more information by going to www.golindustryshow.com for more information and a complete schedule of meetings. 

2nd ANNUAL OWNERS OUTING AT LEGENDS CLUB A GREAT SUCCESS

MWGCOA’s Second Annual Owners Outing was another great success with a field of 78 players on a beautiful day at the Legends Club, Prior Lake, Minnesota.

12 Corporate Sponsors and a low scoring group headed up by President Stang made it a fun and competitive day. Corporate Sponsors this year were Club Car, MTI/TORO, GPS Technologies, University of Wisconsin-Stout, Herfort-Norby Golf Course Architects, Golf Car Midwest, Entegra/International Club Suppliers, Prom Catering Services, Explore Minnesota Golf Alliance, Wexford Golf, and VGM Financial Services. 

First Place prizes went to a group headed by Greg Stang, and including John Scanlon, Kevin Kennedy, Darren DiChristopher, and John Valliere with a low gross score of 55 

Second Place prizes went to a group headed up by Brian Allen of Sundance Golf Club and including Bill MacDonald, Joe Edberg, Jim McGuire, and Dave Laysee with a low gross score of 57

Congratulations to both groups for their achievement on a real championship course!

Each hole sponsor awarded a prize for the winners of his/her sponsored hole with prizes of a $50 gift certificate and a lot of good-natured kidding about how well they seemed to have played J

The 3rd Outing will be held at THE WILDS in Prior Lake---make plans now to join in the fun.

SUPREME COURT RULES ON MINNESOTA COURSE ACTION WITH CITY OF EAGAN

EDITOR’S NOTE:

MWGCOA filed a brief as a “friend of the court” on behalf of this action by our long-standing member Ray Rahn and their family. The Carriage Hills case will stand as a milestone for future owners who may consider, or need to consider, alternative uses of their property if they decide against continued operation as a golf course. The article by lead attorney Chris Penwell gives a clear description of the need to plan now for later contingencies as owners consider their options.

MINNESOTA SUPREME COURT’S FINDINGS IMPORTANT TO ALL COURSE OWNERS

                        by Chris Penwell, Siegel Brill Greupner Duffy & Foster

On July 12, 2007, the Minnesota Supreme Court issued a decision that has the potential to impact golf course owners throughout Minnesota and even around the country.  The case involves the Carriage Hills Golf Course located on 120 acres in Eagan, Minnesota.  MWGCOA member, Ray Rahn, purchased the golf course in 1996.  Despite significant capital improvements to the course and aggressive advertising and promotional efforts, the golf course started losing money by 2001.  In 2004, Rahn entered into an agreement with a local developer, Wensmann Realty, for Wensmann to purchase the property.  However, the agreement was contingent upon Wensmann and Rahn obtaining approval from the City of Eagan of an amendment to the city’s comprehensive guide plan to allow for low density residential development of the property. 

In August 2004, Wensmann presented a proposed site plan to the city which, in addition to a mix of housing types, would have preserved one-third of the property as park and open space, far more than the city could have required through statutory dedication.  Rahn presented to the city a consultant’s report showing that the city and its residents no longer used the golf course and that no amount of capital improvements could be made to the golf course to make it a viable operation.  Notwithstanding the information presented by Rahn and Wensmann, the city of Eagan denied the guide plan amendment.  Rahn and Wensmann initiated a lawsuit making two claims:  first, that the city did not have any factual support in the record for its denial of the guide plan amendment and, second, that the city’s denial constituted a regulatory taking of the property requiring the city to compensate Rahn for the taking. 

The Minnesota Supreme Court held that the city had an adequate basis for denying the guide plan amendment because the city’s reasons for the denial were preservation of open and recreational space, reaffirmation of historical land use designations, and disruption of surrounding neighborhoods due to increased traffic and burdens on the school system which would be caused by the proposed residential development.  However, the Minnesota Supreme Court also held that, even though the city had an adequate basis for its denial, the denial could still be a regulatory taking.  The Court sent the case back to the district court to develop additional facts and to determine whether a taking occurred by the city’s denial of the guide plan amendment.

The Minnesota Supreme Court provided the district court with several guidelines to be applied in determining whether there is a taking.  The Minnesota Supreme Court said the district court must first consider the economic impact of the city’s denial of the guide plan amendment, i.e., does the city’s denial leave any reasonable, economically viable use of the property.  The district court must also determine whether Rahn had any expectation of using the property for anything other than a golf course when he purchased the property.  Finally, the district court must look at whether the burden of the city’s denial falls disproportionately on Rahn as the property owner, i.e., are the benefits of the open space provided by the golf course property widely shared through the community while the costs are focused solely on the property owner. 

The Minnesota Supreme Court concluded “that the determinative factor in this case is whether the denial of the comprehensive plan amendment leaves the property owner with any reasonable use of the property.”  In other words, if Rahn “is forced to leave the property undeveloped for the benefit of neighboring landowners without opportunity to pursue reasonable use of the property, the city is, in essence, asking the property owner to carry a burden that in all fairness should be borne by the entire community.”  If that is the case, then the city must compensate Rahn for the taking of the property that resulted when the city denied the guide plan amendment. 

The court’s decision has obvious potential ramifications for any golf course owner whose operation becomes unprofitable.  Golf course owners should determine whether their local government’s comprehensive guide plan and zoning ordinances allow commercial or residential uses of the property in addition to the golf course operation.  If not, owners may want to informally poll their city council members to determine their receptiveness to a guide plan or zoning amendment.  In addition, golf course owners should establish whatever record they can with their local government that they have an expectation of developing the property for residential or commercial uses in the event the golf course operation is no longer profitable.  In Rahn’s case he had entered into an assessment agreement with the city for certain water, sewer and road improvements specifically in anticipation of future residential development.  Anything golf course owners can point to show that, when they purchased the property, they did so with an expectation of developing the property in the event the golf course operation became unprofitable should be documented.  Finally, golf course owners should be prepared to demonstrate they made a significant effort to make or keep the golf course operation profitable but were unable to do so. 

The Minnesota Supreme Court’s decision is good news for golf course owners.  It sends a message to cities that they cannot force golf course owners to preserve their property as open space for the benefit of surrounding property owners without paying the golf course owner for the regulatory taking of their property. 

Wm.Christopher Penwell Siegel Brill Greupner Duffy & Foster Suite 1300 100 Washington Ave. S. Minneapolis, MN  55401 612-337-6104

 

THIRD PARTY DISCOUNTING FADES AS OWNERS DEVELOP NEW STRATEGIES

By Curt Walker

For the first time in many years the frustration over third party discounting seems to be quieting.

Make no mistake, there are still plenty of complaints I hear about competitive discounting between courses, but the most important trend seems to be a growing suspicion by customers as to what deep discounting means to their value expectations:  “Will I get what I pay for”, or “What am I missing?” 

Factors such as course condition, bad location, waning regular play, can be factors in the kind of desperation methods which have so impacted earnings in recent years. The customer seems to be saying “if a course is always lower in price, will my value be there when I play?” John Ruskin is reported as saying “I have no problem with the man who sells his product or service cheaper than another; he, more than anyone, should know the value of what he sells”

More and more owners are realizing you can’t discount your way to prosperity, and that the bottom line absolutely has to depend on something other than profitless sales to create artificial volume.

An emerging trend is the practice of tactical discounting controlled by each course owner, versus strategic discounting across the boards, or through third party mass-marketers. Tactical discounting (load leveling, back filling, revenue management, and yield management) is by definition a tried and true practice of marketing to promote sales during predictable slow or shoulder periods of any day, week, month, or season.  Who can make a case for discounting, when the demand curve will support retail pricing for customers who understand and accept it, and will pay for value received?

Sometimes called “pinpoint” or “loss-stop” marketing, tactical discounting is intended to meet the demand curve as it moves up and down with our seasons. It helps pay the bills---all year ‘round!

 

 

Explore Minnesota Golf...

...welcomes you! Minnesota has more golfers per capita than any other state, and is the only state to have hosted all thirteen USGA Championships. The natural beauty and diversity of terrain in Minnesota has provided perfect land for many top designers to build spectacular golf courses in all parts of the state.

With more than 480 golf courses, our new web site will help you find the perfect match for your skills and preferences. Type a city name or zip code on their home page courses in a particular area, or to narrow your way down from a statewide list to those meeting your particular needs.

If you’d like to learn more about EMGA you can go to their website www.exploreminnesotagolf or write Charley Howe, Executive Director 6550 York Avenue South, Suite 211 Edina MN 55435. Their phone number is 612-269-9200

 

The MWGCOA NEWSLETTER IS PUBLISHED BY THE MIDWEST GOLF COURSE OWNERS ASSOCIATION

PO Box 385494 Bloomington, MN 55438 Curtis M. Walker Editor. For more information on MWGCOA please visit the website at www.golfinthemidest.com

All rights reserved.  Copyright MWGCOA.

 

 

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