PHOTO: Yellow outline is just a crude boundary of the proposed property to be purchased, in order to illustrate the concept.
Bruce Bon, 2018-05-02
OVA and OGC negotiate a real estate land purchase of from 2 to 10 acres, immediately adjacent to the OVA property containing the Central Activity Center. Both the price and the boundary of the purchased property would have to be negotiated, in order to give OVA a valuable addition to the central facility, that might be used for buildings, parking, sports facilities, a dog park, a flower garden, a picnic area, or other purposes serving OVA members. The price would have to be fair and high enough to make the disruption to the OGC golf courses worth the trouble.
- The money transferred might be large enough to be very meaningful to OGC, possibly large enough to resolve financial difficulties for several years.
- The land acquired would be extremely valuable to OVA, relieving the constraints that make it difficult to provide for new facilities, such as a dog park or the additional parking required for an expanded Berger.
- The largest obstacle would probably be the fact that this would require OGC to shorten the fairways for the third and fourth holes of the West Course, and to redesign and then landscape the green for hole 3 and the tee-off for hole 4. It would also require subdividing OGC property, with a new survey, city approval, etc. This would all be costly, disruptive and time-consuming.
- OVA would have to pay OGC enough to make the sacrifice worthwhile, at a time when reserves are low. Almost certainly, much of the money would have to be borrowed and dues raised to make the payments.
In spite of the problems, this idea should be investigated, because of the pros mentioned above. The attached map is only illustrative. Actual boundary of the property transferred might only affect one of the 2 fairways, for example – the requirements for OVA to be interested are that it be a meaningful area and that it be contiguous with the OVA property on which the Central Activity Center is located. If agreement could be reached, it might solve OGC’s financial difficulties with a single OVA/OGC contract.
Suggested Alternative for OGC Facility Rental by OVA
Bruce Bon, 2018-05-02
OGC, in cooperation with OVA, develops a scheduling system that will allow OVA to rent meeting space from OGC, with a rental rate schedule negotiated in advance. Spaces to be rented under this agreement might include meeting/banquet rooms at the Quail Inn and the Golf Club House room at the East Course. OGC would have priority on such spaces, but once a room was scheduled, OGC would not have the right to bump an OVA reservation.
- This is an easy win-win, that would provide OGC income in return for what would otherwise be unused facility time.
- For OVA, this would relieve the pressure on space that will occur when East Rec and Berger are closed for renovation.
- There might be times when an OGC event could not be scheduled at the preferred time, because the space was previously reserved for an OVA event.
- OGC facilities may not have the audiovisual and hearing loop equipment that Oakmont clubs have come to expect.
- The amount of additional income to OGC might not be enough to make it worth the trouble.
Suggested Alternative for Sale of Golf Courses to a Golf Management Corporation
Bruce Bon, 2018-05-04
OGC searches for a buyer who will continue to operate the golf courses and the Quail Inn. The buyer would need to be a company, such as ClubCorp, which has an interest in owning and managing golf courses as commercial enterprises.
- There would be no cost whatsoever to Oakmont owners.
- The buying company would likely be more savvy at operating golf courses for profit, sothe future prospects of the property remaining in something like its current state wouldbe improved.
- The new corporate managers would be motivated to be good neighbors because of thelarge pool of potential golfers that is the Oakmont community.
- Management of OGC by Oakmont residents would be replaced by management by acorporate team, which would likely prioritize profit over being a good neighbor.
- This would permanently remove any prospect of community control of the land.
- Fees to become a member or to play golf at the new golf club might go up dramatically,dependent totally on what the new management felt was the best way to ensure profit.
- Should Oakmont membership in the corporate-managed golf club fail to meet theirexpectations, their management would be less motivated than the current OGCmanagement to want to accommodate OVA concerns.
- As one corporate property among many, the company might abruptly decide to sell theproperty for development or any other purpose that a buyer might have in mind. Oakmont concerns would likely have little effect on such an outcome.
Questions to be answered include whether or not such a buyer could be found.
Financial Questions for OGC
Bruce Bon, 2018-05-04
The following set of questions were sent to Barbara Robinson prior to the February 26 “town hall” meeting, but were neither acknowledged nor answered. OGC needs to understand that, unless they are willing to answer questions like these, they will continue to face strong opposition from many Oakmonters, and the OVA Board of Directors answers to us. The June 5 informational meeting will be a good opportunity for OGC representatives to demonstrate an openness that has been missing in the past, in order to begin to regain the trust that was lost by the failure to inform us adequately in the previous two meetings. If there is some good reason that this information cannot be divulged to us all, it will be the opportunity for OGC advocates to explain why, but such an explanation needs to be convincing. Failure to provide good reasons for coming to OVA for help will only solidify and increase opposition to any form of cooperation that might include dollars being transferred from OVA to OGC.
- How much trouble is OGC in? What have been your annual income and expenditures for the past 5 years? How much in the red has OGC been in each of the past 5 years?
- OGC must have an operating reserve, in order to pay bills in months where income falls short. How much is currently in this reserve, and what has been its balance at the end of each of the past 5 years?
- Is the proposed OVA support of OGC expected to be for one year? Three years? Until your mortgage is paid off (and how long is that)? Forever?
- What are the terms of the mortage recently refinanced? What are the total annual payments? What is the appraised value of the property, from the appraisal which must have been required for the most recent refinance? What is the loan-to-value?
- Is the Quail Inn a money-maker or a money pit? What has been its gross profit/loss for each of the past 5 years?
- Is OGC willing to open your books, so that OVA can evaluate these things and other relevant details, such as the actual cost to maintain the courses?
- What will happen if OVA chooses NOT to subsidize OGC? Other than seeking funding from OVA, what are your plans for turning the OGC around? What have you tried, and what have you yet to try? On what basis was the lender willing to refinance? (Surely the lender wasn’t willing to assume OVA subsidy.)
Oakmont News Question for OGC
Bruce Bon, 2018-05-05
What is the approximate value of the two full pages that OGC receives for free in every issue of the Oakmont News? How much would it cost OGC if it was to pay the same amount as any commercial, for-profit business must for advertising space?
OGC has chosen to open negotiation concerning the cooperative relationship between them and OVA, so it seems only fair that, for us to understand the complete picture, the value of free publicity and advertising provided by the Oakmont News should be considered.