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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!
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