NGF Report

1.
Review of Operations and Strategic

Planning for City of Rochester
Municipal Golf Courses
Prepared For:
City of Rochester
Parks and Recreation Department
201 4th St. SE
Rochester, MN 55904
Prepared By:
501 North Highway A1A

Jupiter, Florida 33477
(561) 744-6006
November 2021
Packet Pg. 4
1.a
Table of Contents
INTRODUCTION AND EXECUTIVE SUMMARY .............................................................................. 1
Introduction and Purpose ........................................................................................................... 1
Background ................................................................................................................................ 1
Overall Summary of Findings ..................................................................................................... 2
Rochester Golf System Review ............................................................................................................. 2
Individual Facility Reviews .................................................................................................................... 3
External Factors Affecting the Golf Operations........................................................................... 6
Future Considerations for Rochester Golf Courses .................................................................... 7
Basic Oversight and Operational Recommendations ........................................................................... 7
Specific Physical Recommendations .................................................................................................... 7
New Eastwood GC Clubhouse .............................................................................................................. 8
Soldiers Field Venue Enhancement ...................................................................................................... 8
Preliminary Financial Considerations ......................................................................................... 8
Summary of Rochester City Golf System Projection (FY2022-FY2031) ............................................... 8
Summary Conclusion ................................................................................................................. 9
OVERVIEW OF ROCHESTER’S GOLF COURSE SYSTEM .......................................................... 11

City of
Rochester Golf - System of Organization ................................................................................ 12
Contract and Concession Agreement Review .................................................................................... 12
City of Rochester Support to the Golf System .................................................................................... 13
System of Organization Summary ....................................................................................................... 14
Rochester Golf System – Review of Operations....................................................................... 14
City of Rochester Golf Facility Staffing ................................................................................................ 14
Review of Technology and Website .................................................................................................... 16
Golf Courses Marketing ....................................................................................................................... 18
Golf Playing Fees Discussion .............................................................................................................. 19
Review of Golf Carts............................................................................................................................ 21
Merchandise Operations ..................................................................................................................... 21
Food and Beverage Operations .......................................................................................................... 22
Programming and Organized Golf Activities ....................................................................................... 23
Other Operational Observations .......................................................................................................... 24
System-Wide Operational Performance ................................................................................... 25
Rounds ................................................................................................................................................ 25
Revenue by Source and Facility .......................................................................................................... 27
Operating Expense by Type and Facility............................................................................................. 29
System Summary ................................................................................................................................ 30
System Summary Discussion ................................................................................................... 30
INDIVIDUAL FACILITIES ............................................................................................................... 32

Eastwood Golf Club Facility Overview ...................................................................................... 32
Location, Access and Surrounding Elements ..................................................................................... 32
Championship 18-Hole Golf Course.................................................................................................... 34
Packet Pg. 5
1.a
Eastwood GC Clubhouse .................................................................................................................... 35

Driving Range / Practice Amenities ..................................................................................................... 36
Eastwood GC – Condition of Facilities ................................................................................................ 36
Eastwood GC Capital Investment Considerations (2022-2026).......................................................... 41
Unique Considerations for Eastwood GC............................................................................................ 42
Facility Performance and Data Analysis .............................................................................................. 43
Summary – Eastwood GC ................................................................................................................... 45
Northern Hills Golf Course Facility Overview ............................................................................ 47
Championship 18-Hole Golf Course.................................................................................................... 49
Northern Hills GC Clubhouse .............................................................................................................. 50
Driving Range / Practice Amenities ..................................................................................................... 51
Northern Hills GC – Condition of Facilities .......................................................................................... 51
Northern Hills GC Capital Investment Considerations (2022-2026) ................................................... 54
Unique Considerations for Northern Hills GC ..................................................................................... 55
Summary – Northern Hills GC ............................................................................................................. 57
Soldiers Memorial Field Golf Course Facility Overview ............................................................ 59
18-Hole Golf Course ............................................................................................................................ 61
Soldiers Field GC Clubhouse .............................................................................................................. 62
Soldiers Field GC – Condition of Facilities .......................................................................................... 64
Soldiers Field GC Capital Investment Considerations (2022-2026) ................................................... 67
Unique Considerations for Soldiers Field GC ..................................................................................... 67
Summary – Soldiers Field GC ............................................................................................................. 70
Hadley Creek Facility Overview................................................................................................ 71
Summary of NGF Findings on Hadley Creek GC ............................................................................... 73
Hadley Creek GC Capital Investment Considerations ........................................................................ 77
Summary of NGF Findings on Hadley Creek GC ............................................................................... 78
Summary – Hadley Creek GC ............................................................................................................. 80
EXTERNAL FACTORS AFFECTING THE OPERATION OF ROCHESTER GOLF COURSES ..... 81

Market Overview ...................................................................................................................... 81
Demographic Analysis – Local Residents ........................................................................................... 81
Rochester Overview ............................................................................................................................ 83
Golf Market Supply and Demand Indicators ............................................................................. 85
National Golf Industry Overview .......................................................................................................... 85
Estimated Local Market Demand ........................................................................................................ 87
Local Golf Supply ................................................................................................................................ 88
Golf Course Market Supply / Demand Summary ................................................................................ 89
Local Competitive Golf Market ................................................................................................. 90
Competitive Public Access Golf Facilities Map ................................................................................... 90
Summary Information .......................................................................................................................... 91
Packet Pg. 6
1.a
Market Area Rounds and Fee Information .......................................................................................... 92

Key Findings – Competitive Golf Market ............................................................................................. 96
External Factors Summary ....................................................................................................... 96
FUTURE CONSIDERATIONS FOR CITY OF ROCHESTER GOLF COURSES ............................. 98

Alternate Structure Considerations ........................................................................................... 98
Structure Options ................................................................................................................................. 98
Specific Physical Recommendations ...................................................................................... 100
Completion of Capital Investment Considerations ............................................................................ 101
New Eastwood GC Clubhouse .......................................................................................................... 102
Soldiers Field GC Modification or Enhancement .............................................................................. 103
ROCHESTER CITY GOLF COURSES - PRELIMINARY FINANCIAL PROJECTIONS ............... 104

Projected Performance – Rochester Golf (2022-2026) ........................................................... 104
Basic Assumptions ............................................................................................................................ 104
Projected Performance – City of Rochester Golf Administration (2022-2026).................................. 105
Projected Performance - Eastwood GC (2022-2026) ....................................................................... 106
Projected Performance - Northern Hills GC (2022-2026) ................................................................. 108
Projected Performance - Soldiers Field GC (2022-2026) ................................................................. 110
Projected Performance - Hadley Creek GC (2022-2026) ................................................................. 112
Summary of Rochester City Golf System Projection (2022-2026) .................................................... 114
Projected Performance – Rochester Golf w/o Soldier Field GC (2022-2026).......................... 115
Basic Assumptions ............................................................................................................................ 115
Summary of Rochester Golf System w/o SFGC Projection (2022-2026) ......................................... 116
Support for Projections and Potential Mitigating Factors .................................................................. 118
Limiting Conditions ................................................................................................................. 118
SUMMARY STATEMENT ............................................................................................................. 119
APPENDICES............................................................................................................................... 120
Appendix A – Samples of POS Systems ................................................................................ 121
Appendix B – Rochester Golf Course Fee Charts .................................................................. 122
Appendix C – Rochester Golf Course Seasonal Pass Chart .................................................. 123
Appendix D – National Rounds Played Report ....................................................................... 124
Appendix E – Golf Course Life Cycle ..................................................................................... 128
Appendix F – Local Demographic, Demand and Supply Data ................................................ 129
Rochester Golf Market Demographics .............................................................................................. 129
Rochester Golf Market Golf Demand ................................................................................................ 130
Rochester Golf Market Supply Data .................................................................................................. 131
Rochester Golf Market Golf Supply-Demand Ratios ......................................................................... 132
Rochester Golf Courses Demographics ............................................................................................ 133
Rochester Golf Courses Golf Demand .............................................................................................. 134
Rochester Golf Courses Golf Supply ................................................................................................ 135
Rochester Golf Courses Golf Supply-Demand Ratios ...................................................................... 136
Packet Pg. 7
1.a
Introduction and Executive Summary

The following is a summary of significant findings made by the National Golf Foundation in its study of the City of
Rochester Golf System. The supporting text and tables are found in the body and appendices of the attached report.
Some items are repeated from the full report.
INTRODUCTION AND PURPOSE

National Golf Foundation (“NGF”) was retained by the City of Rochester (“City”) to assist in
evaluating the current condition and future market potential of the four City golf facilities: Eastwood
Golf Club (“Eastwood” or “EWGC”), Northern Hills Golf Course (“Northern Hills” or “NHGC”),
Soldiers Memorial Field Golf Course (“Soldiers Field” or “SFGC”) and the Hadley Creek Golf
Course (“Hadley Creek” or “HCGC”). These four facilities include a total of 63 holes of golf, all
managed directly by the City of Rochester, with operations contracts with golf professionals for
front-line service. The City is considering the long-term future sustainability of its golf facilities and
seeking to better understand the realistic economic potential of the golf courses given market and
site realities. The results of this market and facility analysis will be used by the City to help
determine the appropriate course of action.
This review is based on significant NGF research into the subject City of Rochester golf courses,
the market environment in which they operate and consideration of possibilities for their future.
NGF’s goal for this consulting project was to provide a thorough and objective report that can
assist the City in evaluating the long-term viability and sustainability of each facility and the City’s
golf system as a whole. NGF considered, among other factors, the present physical condition of
the golf facilities, the operating structure, their competitive positions and what operational changes
or new investment in physical condition will be needed to provide the best possible golf facility
product to the City.
This NGF review was managed by Richard Singer, MBA, NGF’s Senior Director of Consulting
Services, with assistance from other NGF staff including: Ed Getherall, Director of Consulting
services; Ray Hearn, Project Golf Course Architect; and Jodi Reilly, Consulting Administrator.
Specific activities completed in preparation of this report included market research, visits to the
properties, meetings with City and golf staff, and visits to several area golf facilities that were
deemed to be potentially competitive with the subject City golf courses. NGF also collects
considerable information and data on the golf industry as a regular part of our organization’s work,
and much of this information and data will be presented as part of our consulting assistance to the
City of Rochester.
BACKGROUND
The City of Rochester is operating four well-located and distinct golf facility properties, each with its
own unique characteristics and customer following. These facilities include traditional support
facilities such as clubhouses and driving ranges, and each facility has challenges related to
property condition and the age of key infrastructure. The City golf system dates back to the 1930s
with the development of Soldiers Field, new 18-hole courses at Eastwood in 1969 and Northern
Hills in 1976, followed by changes to Eastwood in 2008 and the full development of Hadley Creek
in 2010. Over the years, the City has invested in enhancements to these golf facilities, but three of
the four properties remain true to their original design and layouts (except a new back-9 at
EWGC).
National Golf Foundation Consulting, Inc. – Rochester Golf Courses Operational Review – 1
Packet Pg. 8
1.a
The City is currently operating its golf courses with a mix of concession services (operations and
F&B) and City-run maintenance. An NGF survey of nearly 1,000 municipal golf courses in the U.S.
in 2020 (40% of the total 2,500) found that the Rochester structure has some self-operation
elements that are very common in municipal golf, with around 56% of U.S. muni golf courses
operating with some form of self-operation. The facilities appear to NGF to be well run, and the
City is benefiting from several long-tenured employees in key positions who bring a high level of
expertise and professionalism to the City’s benefit. However, we do note that recent reductions in
staff, especially golf maintenance staff, have added to the challenge in City golf operations. Golf
courses are “living and breathing” assets that need appropriate care to maintain conditions that
can attract golf customers. Any change that reduces this level of care could potentially lead to a
less desirable golf facility product, and consequently lead to reduced revenue.
The four courses are under the administration of the City of Rochester Parks and Recreation
Department, with a defined “Director” to oversee golf (not exclusively). The four-facility system
generated approximately $1.27 to $1.34 million in gross revenue to the City between 2016 and
2020, with significant increases expected in 2021. With total operating expenses approaching $1.6
million in 2019, the Rochester Golf courses had an operating deficit of over ($330,000) in 2019
before expense reductions were enacted in 2020. The total revenue generated by Rochester golf
courses is well below the expected standards for public golf courses, leaving reduced income from
which to cover operating expense obligations – thus requiring some level of subsidy from the
General Fund to cover all required expenses.
OVERALL SUMMARY OF FINDINGS

The following bullets represent a summary of NGF’s key ‘high level’ findings from our review of the
Rochester Golf system (details in the full report and appendices). The recommendations contained
in this report consider what will be needed to sustain the City offering of public golf to the
community, along with other ideas to help improve the economic condition of the golf courses. This
review and attendant findings and recommendations must also be considered within the context
that the economics of all golf courses are subject to uncontrollable factors, such as yearly weather
variations, competitive factors and unexpected expenses.
Rochester Golf System Review

The Rochester Golf system includes four distinct golf facilities, each with its own characteristics,
and each with the basic design and amenities to be successful in their market segment. This mix of
facility types allows Rochester to offer “something for everyone” in golf, with features that appeal to
both beginning golfers and seasoned players. The courses are located in separate sections of
Rochester, with each proximate to area roadways that provide easy access for golfers coming from
a wide geographic region. The revenue generated at the courses is a mix of playing fees collected
by the City (season pass & green fees with a mix of cart + driving range fees), and ancillary
revenues (merchandise, F&B, lessons, carts, etc.) collect by the contracted vendor. Other key
findings from our review of the City golf system include:
• The City operates its golf courses with a mix of concessions (operations and F&B) and
City-run maintenance. This structure is common in municipal golf and helps shift the
challenge and employment oversight in golf operations to an independent entity. The
City’s economic position in golf is derived from the collection of golf playing fees, and
high-quality customer service helps the City generate these golf revenues, thus it is in
the City’s interest to support its operations contract partners. Recent City cuts to staff
has impacted the ability to provide the best possible service to customers.
Packet Pg. 9
1.a
• The size of the staff employed by the City to operate and maintain the golf courses is
smaller than standard, which has impacted both the maintenance condition and the
business management of the properties. The City may find that continuing to operate
four golf facilities with only seven (7) full-time staff is not sustainable for the long-term
financial health of the system.
• The technology systems in use to support golf facility operations appears insufficient to
maintain optimum economic performance. The POS system is not ideal for public golf
and the City website does not project a marketable image. In addition, the City is not as
active in newer forms of social communication as it could be to help increase interest in
its public golf courses, although some of this shortcoming may be related to the small
golf staff and limited human resources.
• The fees charged for golf play at Rochester courses appear appropriate for the market
and place the courses in the upper-middle of the Rochester public golf market. City golf
courses have a rigid internal pricing structure with the same fees at all three 18-hole
courses and no industry-common price segments like weekday/ weekend or afternoon
twilight. The City may find that providing some internal segmentation of golf fees will
allow for a wider array of consumer choices for golf in this system, although golf is
available at the 18-hole City courses for as little as $19 for 9 holes ($10 for juniors).
• More than 2/3 of the golf played in this system is from holders of pre-paid golf passes
that allow for a single annual fee for all golf rounds. The result of this arrangement is
that most of the golf being played at City courses is at a severe discount, leading to a
much lower average revenue earned per round - less than $9.00 per round compared
to an average of $16.19 for daily fee players (47% discount).
• The low golf revenue generated by the Rochester golf courses does not include the
revenue derived from sources like carts (shared), merchandise, driving range (at
EWGC), F&B and other services, all of which currently accrues to the contract vendor.
These contract vendors report total revenue of at least $600,000 in 2021, almost all of
which is used to cover expenses in providing services (and carts) at the four Rochester
golf courses. We note that these revenues were impacted at a much greater level than
the City’s revenue during the Covid pandemic, negatively impacting the earnings of
concessionaires (especially F&B) at City golf courses.
Individual Facility Reviews

The City golf system is made up of four facilities, each in separate sections of the City. A summary
of each facility is presented as follows:
Eastwood Golf Club

Eastwood GC is a 50-year-old golf facility that is providing the premier golf experience in the
Rochester system. With its newer back-9 added in 2008, the course now has a mix of older and
newer 9-hole courses. This is providing some challenge to the City in maintaining the property, as
some front-9 elements of the golf course are nearing the end of their expected useful life, including
the irrigation system. The clubhouse is also original to 1971 and has condition and infrastructure
issues that will need to be addressed in the near term, possibly even requiring a full facility
replacement that could also enable the City to improve the marketability of EWGC. With a more
challenging course and nice site topography, EWGC tends to attract better golfers (and
conversely, is less popular with some senior golfers who prefer Soldiers Field GC). Other findings
from NGF’s review of the Eastwood GC:
Packet Pg. 10
1.a
• In addition to the clubhouse, some other aspects of EWGC will also need enhancement
(irrigation, bunkers, trees and equipment), likely bringing the needed investment total to
between $1.8 and $2.4 million. Other than the clubhouse and irrigation improvements,
the other facility upgrades are less urgent and can be completed over time as funding
allows.
• EWGC showed strong performance in 2020, with just over 27,600 total rounds hosted
generating over $202,400 in direct City revenue. The rounds and revenue for 2021 are
expected to finish higher than 2020, clearly benefitting from the recent surge in golf
demand. In addition, the pro shop and F&B vendors generated an additional $265,000+
in revenue from ancillary sales in 2020, reaching as high as $300,000 in 2021.
• Eastwood has the highest expense structure in the City golf system, largely due to the
larger maintenance staff to maintain conditions and the presence of senior staff being
stationed at this location. The revenue generated on-site at EWGC, coupled with its
share of City-wide season pass revenue, is likely not sufficient to cover all required
operating expenses and fund the capital upgrades that will be needed to sustain this
facility as a properly functioning golf facility.
Northern Hills Golf Course

Northern Hills GC is the second championship 18-hole golf course in the system, which has
recently been upgraded with the addition of a brand-new clubhouse in 2019. NHGC is located in
the heart of a key growth corridor for Rochester, and there is a consensus that this property will
have the largest population of golfers in the Rochester system living in close proximity. At 45 years
of age, NHGC is at a point when key systems are nearing the end of their expected useful life, and
planning for new investment should be undertaken by the City, although it is less urgent than the
clubhouse at EWGC. Still, improvement in site drainage and maintenance facilities could help
improve activity and the economics of this operation. Other findings from NGF’s review of the
Northern Hills GC:
• The NHGC property condition, associated amenities (especially new clubhouse) and
location would make this the strongest candidate within the Rochester system to
support a higher fee structure and help to create some internal segmentation and
create a higher-end golf strategy.
• NHGC has some property condition concerns that need to be addressed, the most
significant of which are the drainage improvements and maintenance facility repairs (or
replacement). The City will find that these two elements will be very expensive to
address, costing as much as $600,000 just to complete repairs (not including a new
maintenance building).
• In addition to fixing the drainage and maintenance building, the City should experience
good return on other investments to enhance the NHGC property, totaling an estimated
$700,000 to $1.0 million. The gap in low/high estimates of cost are a result of
uncertainty about how drainage issues can be addressed and how expensive the
maintenance facility improvements that are undertaken.
• NHGC showed strong performance in 2020, with a 35.5% increase in rounds over 2019
after the clubhouse addition. The $258,900 in direct City revenue is the highest of any
facility in the Rochester system, and significant growth is anticipated for 2021. NHGC
also has the second highest expense structure in the system.
Packet Pg. 11
1.a
Soldiers Memorial Field Golf Course

Soldiers Memorial Field GC is the oldest golf facility in the system with a prime location in the heart
of downtown Rochester. The older golf course is operating with important systems that are clearly
past their expected useful life, but are still functioning at an acceptable level, for now, but will have
to be addressed eventually. Other findings from NGF’s review of Soldiers Field GC:
• While there are large-scale capital investment needs at SFGC (most notably a $1.0
million+ irrigation system), it is hard to recommend investment at this location given
other needs in the system and the potential for new site considerations (full upgrade or
reduction to 9 holes as presented in this report).
• The existing Soldier Field Golf Course is a good fit in the Rochester City system,
providing a shorter-length 18-hole with less challenge that appeals to less-skilled and
less-serious golfers, many of whom are seniors and active in one (or more) of the many
leagues that use this golf course. If the City was inclined to enhance its golf system, this
facility has great potential to expand its revenue base with improvements, but the site
will never support a true championship layout due to the small size.
• Although SFGC showed some decline in activity in 2020, it remains the most active golf
facility in the Rochester system. However, the $197,300 in direct City revenue is the
lowest of the three 18-hole facilities in the system, and significant growth in revenue is
not anticipated at this location given current amenities.
• Soldiers Field has the lowest expense structure of the 18-hole courses in the system,
largely due to a significant 34% reduction in expense from 2019 to 2020, mostly related
to maintenance staffing.
Hadley Creek Golf Course

Hadley Creek GC includes a short 9-hole golf course and extensive practice amenities that are
ideal for beginners looking to take up the game, or seasoned players looking to practice. The
facility provides a great complement to the City’s golf system and can be a key vehicle for growing
golf in Rochester. Other findings from NGF’s review of Hadley Creek include:
• Hadley Creek has a good following of players and also enjoys play from local leagues
and the regular events. This facility is most well known in the area as the home of the
First Tee of Rochester and as a popular location for well-attended junior golf camps and
all kinds of beginner golf programs.
• The HCGC property is well located and can serve as a catalyst to develop new golf
players who can then “graduate” to the other facilities in the system and become life-
long customers.
• The modest clubhouse is original from 2010 and is in good condition and functional for
the current operation, with adequate size for the classroom element of the First Tee
program.
• Play over the past five years has averaged about 14,300 rounds per year, with a 15%
increase to over 16,000 in 2020 and likely reaching over 17,000 in 2021. Of these
rounds, season pass play represents about 55% over the last five years.
• The overall revenue generation at Hadley Creek GC is currently about $177,000
annually, an amount that is not that much lower than the 18-hole Soldiers Field GC.
HCGC generates over $40,000 in driving range revenue alone, the highest in the
Rochester system.
Packet Pg. 12
1.a
• Hadley Creek has the lowest expense structure in the system, largely due to a very
small staff and only one full-time employee. In all, the City should be willing to accept
economic loss on a facility like this given its potential to serve as a feeder facility for
growing golf in Rochester.
EXTERNAL FACTORS AFFECTING THE GOLF OPERATIONS

The NGF market analysis shows that while golf is not a major component of life in Rochester, the
subject City golf courses are well-known and operate as the “facility of choice” for many area
golfers. The data on the supply/demand balance on golf in Rochester appear to be generally
unfavorable for the continued operation of all four City facilities. As such, the NGF has a
reasonable expectation that while this market will continue to provide support for City golf facilities,
the total volume to support all four courses may not be assured. Other key findings from NGF’s
market analysis include:
• The demographic profile of Rochester is consistent with strong golf demand, and the
local economy also has elements that correspond to durable golf demand. In addition,
the region has a high rate of in-migration for visitors. Although Rochester is not a top
tourist destination, there may be opportunities to attract the occasional non-local
player by enhancing the marketing and awareness of the City’s high quality golf
facilities (especially at SFGC due to location and EWGC/NHGC due to quality).
• From a macro standpoint, while some trends continue to create headwinds for golf
operators, overall golf participation in the U.S. appears to be stabilizing and golf is far
from “dead.” While demand for golf strengthened greatly during the Covid-19
pandemic in 2020, NGF research shows that golf was gaining some momentum in
2019 and the sport remains popular and is fortunate to have a deep well of interested
prospects. Golf’s chief challenge remains the retention of new players attracted in
2020-21 and finding ways to draw young adults (i.e., millennials) through targeted
programming and events.
• While we note the signs of strong golf demand, the supply of golf courses in the
market area is also strong and there are several key golf courses that are competing
for the same golf customer, including some internal competition between
Rochester courses. Our review of Rochester showed a competitive market for golf,
with the total number of golfers per 18-holes in the Rochester MSA to be much
lower than the NGF-identified threshold that is consistent with success. This
finding suggests a possible over-supply of golf courses all competing around the
same price-quality threshold.
• The most important local competition to Rochester courses includes other public golf
facilities operating close to City of Rochester courses. Given Rochester’s strong
existing price-quality market position and the City’s desire to fit in the upper-middle
range of fees in this competitive market, it appears to NGF that at least one of EWGC
or NHGC could be positioned in the higher-end of the market to create some internal
segmentation in the Rochester system. Given the prime location of SFGC, this facility
has great potential to be upgraded, although this would require a significant
investment as documented by NGF.
Packet Pg. 13
1.a
FUTURE CONSIDERATIONS FOR ROCHESTER GOLF COURSES

NGF Consulting has prepared a schedule of specific recommendations to be considered by the
City. These recommendations appear throughout the attached report and include suggestions for:
(1) basic oversight, structure and staffing; (2) physical enhancements; and (3) other operational
improvements.
Basic Oversight and Operational Recommendations

The City of Rochester operates its golf courses through a combination of City-run maintenance
and multiple concession contracts for pro shop and F&B operations (a common form of operation
among U.S, muni golf courses). In considering alternatives, the NGF finds it unlikely that
Rochester could improve its fiscal position in golf by changing to an alternate form of operation
given the small revenue profile of City courses documented in this review.
The NGF team recommends that Rochester make no change to its operating structure at
this time and retain its current contractor for pro shop/F&B services and provide golf
course maintenance with a mix of full-time and part-time City staff. This is the structure that
provides the most control to the City, but some enhancement of staff size is recommended. In
short, the only reason to change this structure is if the change will provide needed capital to
complete property upgrades that are needed in Rochester, especially the clubhouse at EWGC.
The staff changes recommended by NGF include increasing the golf maintenance staff by at least
one additional FTE (2,000 hours) at each location, either with additional full-time or part-time staff,
to help improve golf conditions; and adding new Assistant Golf Professional positions at NHGC
and EWGC to allow the golf professionals to step away from extended counter duties and focus on
growing golfers and marketing facilities.
Basic Operational Recommendations

In addition to the larger oversight and physical recommendations, NGF offered additional
suggestions to help the City of Rochester improve its bottom-line performance of the golf system.
The most significant of these relate to the expansion of modern technologies and marketing,
including upgrades to a more golf-appropriate POS system and enhancements to the golf website.
It is understood that City golf facilities are operating in a competitive market with many golf courses
trying to maximize rounds and revenue. In the body of this report, the NGF provides detailed
recommendations to help the City improve the golf operation, addressing areas such as: (1)
marketing and technology; (2) pricing; and (3) recommendations for increasing participation from
less-traditional segments. It is hoped that review of NGF recommendations on these topics can
provide the City a basic framework for the continued operation of its golf courses.
Specific Physical Recommendations

The NGF recommendations for enhancing the physical plant of City golf facilities considers specific
improvements that can be made to each facility that could improve performance and provide for
long-term sustainability of City golf assets. It is clear that the City’s decision on what to do with the
noted deficiencies in the Eastwood clubhouse will be an important component for any future plan
for this golf system. The NGF vision for the future of the Rochester City golf courses considers the
most ideal physical condition of each facility so as to maximize the potential economic
performance. The proposed five-year capital plan can be summarized as follows:
Packet Pg. 14
1.a
City of Rochester Golf System

Summary of Capital Upgrades – 2022-2026
Projected CIP 2022 2023 2024 2025 2026 Total CIP
Eastwood GC $110,000 $1,825,000 $175,000 $150,000 $75,000 $2,335,000
Northern Hills GC $330,000 $82,500 $270,000 $220,000 $130,000 $1.032,500
Soldiers Field GC* $30,000 $20,000 $150,000 $0 $0 $200,000
Hadley Creek GC $25,000 $10,000 $10,000 $0 $0 $45,000
Total CIP $495,000 $1,937,500 $605,000 $370,000 $205,000 $3,612,500
NGF Consulting estimates based on architect’s input and actual costs from similar projects in Minnesota. This estimate has been provided to allow for
preliminary planning and amounts may not reflect actual costs for Rochester. The City should engage appropriate research to cost out specific projects.
*NGF recommended CIP if SFGC is to remain “as-is” operation.
New Eastwood GC Clubhouse

The NGF has recommended a complete replacement of the Eastwood GC clubhouse to allow for
enhancement and expansion of space. A summary of this consideration was reviewed in detail
by NGF in the body of this report. In summary we found that the City could replace the clubhouse
at Eastwood GC, with cost likely to approach or exceed $1.5 million. The implications of a new
clubhouse are addressed by NGF in this report, including the potential to increase rounds and
revenue (direct and indirect). The City should undertake a more comprehensive clubhouse
feasibility study to review this option and establish more exact cost estimates.
Soldiers Field Venue Enhancement

The Soldiers Field features and location offer the City an opportunity to re-think the golf facility and
the future of golf on this property. The NGF has identified two key areas of potential modification,
including: (1) Full golf renovation and upgrade; or (2) reduction to a 9-hole course with new
practice features. It is expected that City investment in these changes will still leave challenges at
SFGC, including insufficient space for a full championship layout if the course was to be upgraded,
and logistical obstacles in the 9-hole layout.
PRELIMINARY FINANCIAL CONSIDERATIONS

NGF Consulting has prepared an analysis to show the potential economic performance of the City
of Rochester golf facilities over the next five years of operation. All NGF projections are based on a
set of assumptions that may or may not become reality. We feel that these projections represent
the best effort to create a “fair estimate of performance” for these facilities based on our complete
review of each Individual operation.
Summary of Rochester City Golf System Projection (FY2022-FY2026)

The NGF projections of future performance show how City golf courses could perform over the
next five years, considering improvement to Northern Hills (drainage) and Eastwood (new
clubhouse), along with continued ‘as-is’ operation at Soldiers Field and Hadley Creek. The results
show that even with recent improvement, the net performance remains at risk from capital projects
and recovery of reduced staff positions. If the City can generate modest growth from technology,
marketing and other operating improvements, the system could sustain itself (before capital) if it
can reach 106,000 total rounds of golf, or an amount that is about 6.0% higher than any year since
2016. At this level of performance, it is possible for the City to support an additional +/- $100,000+
per year in increased expenses to regain lost maintenance positions and improve customer
service, although some years will dip below this threshold as construction projects at NHGC and
EWGC (if undertaken) will impact activity at those locations (particularly in 2022 and 2023).
Packet Pg. 15
1.a
Still, while these projections show the relative strength of economic performance of Rochester golf
courses, the analysis also shows how close to “break-even” the golf courses are and that even a
small drop in the recent activity gains will lead to increased economic loss. The declines in activity
from 2016 through 2019 led to expense reduction decisions by the City, and the result is a lean
operation that is barely covering the basic needs to keep the courses open. Any further reduction
in revenue and the system may reach a critical point and require increased subsidies from other
sources (taxpayer support).
At the projected level of performance, City golf courses are expected to cover all on-site expenses,
but would not be able to provide enough retained earnings to fund any of the capital projects
identified by NGF in this report. We note that the operating cash flows could be stronger if the
facilities are able to sustain higher green fees and/or rounds played than we have projected, which
we believe is highly possible given the improvements under consideration for NHGC and EWGC.
Even with this improvement, the retained earnings on golf would not be sufficient to cover any
large-scale capital investment in the facilities.
Reduced System Considerations

If the City were to close the Soldier Field GC, the economic situation in golf is projected to improve
through reduced expenses, most notably the elimination of all non-labor expense associated with
the SFGC operation. The NGF projection shows that under this scenario revenue will fall by an
estimated $125,000 to $147,000 after 2024, but expenses will fall by $267,000 to $280,000. The
expense reductions reflect the elimination of the senior SFGC pro shop manager position and all
non-labor expenses. The revenue reductions are a result of fewer season pass sales and the other
facilities absorbing only about 50%+/- of Soldiers Field rounds activity.
SUMMARY CONCLUSION
The City of Rochester is operating four public golf facilities that appear to be well-run, but are
producing activity and revenue well below the expected standard. While golf activity did reach a
new high during the mini “golf boom” associated with the Covid-19 pandemic, the total income
produced by this system is not sufficient to cover all expenses that are required to properly operate
and maintain City golf courses. However, in addition to low revenue, Rochester Golf courses also
have lower-than-standard expenses, although much of this is related to recent reductions made by
the City that could ultimately lead to a reduced golf course product and a diminished level of
service.
In reviewing this system, it is clear to NGF consultants that the City’s golf system has a true
“something for everyone” offering, but the City has reached a key moment in addressing the
condition of facilities, as all four facilities have significant capital needs. There are some changes
the City will have to make to help better position these golf courses for the long-term, and help
ensure the quality and sustainability of City golf courses. This includes adopting a new program of
capital investment to address aging amenities and infrastructure that are past their realistic
expected useful life. The most significant of these include the clubhouse at Eastwood GC and
drainage / maintenance facility concerns at Northern Hills GC. In addition, the City would likely
benefit from a full reevaluation of the Soldiers Field GC property, as aging infrastructure and
limited property size are challenging the City’s future in golf.
Packet Pg. 16
1.a
The current circumstance provides an opportunity for the City to “re-set” Rochester golf courses,
and find a new facility condition and mix of amenities that will result in a wider appeal and
improved economics. This analysis by NGF shows that the balance between demand and supply
in Rochester is not favorable to the City’s golf course system, and that Rochester golf courses are
essentially competing with each other for market share. Our review also showed how
enhancement to Eastwood and Northern Hills GCs should lead to improved revenue, and that
reducing the system to only two 18-hole courses, along with Hadley Creek, would almost certainly
improve the economic condition of the system.
In summary, it is clear that the City’s golf system is well managed and in position to continue
strong activity and rounds performance. The increase in golf demand during 2020-21 has provided
a surge in revenue at Rochester golf courses, providing the City an opportunity to re-invest in
these aging properties. Eastwood and Northern Hills offer a premier, championship golf
experience, while Hadley Creek is a well-respected golf learning center that has great potential to
help grow golf in Rochester. Soldiers Field is also popular with less-skilled players and time-
sensitive golfers seeking a shorter golf experience, but the facility is aging and will need significant
investment to remain viable. As such, the City may find that the key decision in the future of this
golf system is what to do with Soldiers Field, with enhancement, reduction or closure all being
viable options. In review of this golf system, the NGF has identified five important actions that the
City can take to improve this golf system:
1. Commit to completing the initial $2.4+/- million in capital projects over the next two
years to address the Eastwood clubhouse and key infrastructure at Northern Hills.
2. Undertake completion of a formal site master plan for Soldiers Field GC, and decide on
the future of this property as an enhanced 18-hole golf course, modified 9-hole golf
course or some other (non-golf) facility.
3. Enhance expertise in the technology that supports operations (POS, website, etc.), and
use these platforms to enhance the marketing and promotion to non-residents and less
frequent users.
4. Increase focus on new player development and beginner programs, especially with
young adults.
5. Consider other new investments to help modernize, broaden the appeal and “liven up”
facilities such as driving range improvements and/or enhanced outdoor gathering
spaces.
Packet Pg. 17
1.a
Overview of Rochester’s Golf Course System

The City of Rochester currently operates four separate golf course properties with a total of 63
holes of golf. The system includes two 18-hole, championship-length golf courses (Eastwood and
Northern Hills), a shorter regulation-length 18-hole course (Soldiers Memorial Field) and golf
learning center with 9-hole executive-length course and extensive practice facilities (Hadley
Creek). The history of the City golf courses dates back to the 1930s with the development of
Soldiers Field, followed by the addition of Eastwood GC in 1969, Northern Hills in 1976, a new
replacement back-9 at Eastwood GC in 2008 and Hadley Creek in 2010. Over the years, there
have been limited modifications to these properties and the facilities remain typical of their original
layouts, with the large exception at Eastwood. The City’s four facilities form a system of golf
courses that offer a variety of services for patrons of all golfer skill levels, each with its own unique
characteristics.
The City of Rochester golf courses are operated through a mix of contracted pro shop/concession
operation and direct City maintenance. The four courses are under the administration of the City of
Rochester Parks and Recreation Department, with a defined “Director” to oversee golf (not
exclusively). The four-facility system generated approximately $1.27 to $1.34 million in gross
revenue to the City between 2016 and 2020, with significant increases expected in 2021. With total
operating expenses approaching $1.6 million in 2019, the Rochester Golf courses had an
operating deficit of over ($330,000) in 2019 before expense reductions were enacted in 2020. The
facilities, golf course type, amenities, and year open are shown below:
Golf Course Type Year Open Notes

This 18-hole golf course includes a mix of 9-hole courses, with an
original front-9 (1969) and newer back-9 and maintenance facility
(2008). This results in a course with two distinct golf experiences and
18-Hole
Eastwood Golf Club 1969 / 2008 unequal demand from golfers who prefer to only play nine holes. The
Championship
clubhouse is original to 1970 and is showing signs of deterioration
and lack of functionality that is not consistent with golfer expectations
at modern public golf courses.
A newer 18-hole golf course in the growing section of northwest

Rochester. The facility includes a brand-new clubhouse (2019) and
18-Hole
Northern Hills Golf Course 1976 driving range. The golf course is very popular but has challenges
Championship
related to the drainage of new residences being developed nearby.
The maintenance facilities and entry/parking are also not ideal.
This 18-hole course is the most active in the system, and is located
in the heart of Downtown Rochester in immediate proximity to key
elements like the Zumbro River and the Mayo Clinic. The facility
Soldiers Memorial Field 18-Hole includes a newer clubhouse (added in 1993), but does not have a
1930
Golf Course Regulation driving range. While this course shows well and does not have any
clear and urgent capital needs, its base infrastructure is 90+ years
old and some type of upgrade to irrigation and turf will ultimately be
required to properly sustain golf at this location.
The City’s golf learning center provides a simple, beginner-friendly
9-Hole golf concept that can function as a “feeder system” for new golfers
Executive + in Rochester. The site is home to the area’s First Tee program, and
Hadley Creek Golf Course 2010
Practice is active in player development programming, especially among
Facility children. The property is in good condition with only minor
investments to improve drainage on the capital needs list.
Packet Pg. 18
1.a
In our review of the City golf courses, the NGF consulting team found facilities that include the
basic design and amenities to be successful in their own distinct market segment, but that some
investment in facilities will be needed. In addition, the NGF found an experienced golf leadership
structure that may be nearing its end, as at least one key individual leading the on-site golf
operations is nearing a point of retirement, thus requiring a proper plan of succession.
CITY OF ROCHESTER GOLF - SYSTEM OF ORGANIZATION

The City of Rochester golf facilities are owned by the City and managed through the Parks and
Recreation Department. This department has identified one individual to oversee the golf pro shop
operations (HQ at Soldiers Field) and one individual to oversee golf maintenance operations (HQ
at Eastwood). All staff responsible for maintaining the golf courses are employed directly by the
City. Service to customers via pro shop and food & beverage is provided through golf management
agreements and food agreements with different concessionaires.
Contract and Concession Agreement Review

Currently there are four golf management concessionaires and two F&B concessionaires providing
service at the four facilities, while one facility’s F&B concession was vacant (Soldiers Field) at the
time of this review. A summary of these agreements is provided below:
Golf Professional / Manager Contracts

Each of the four City golf facilities has an independent contractor to staff Golf Pro/Manager
position, with the agreement at Northern Hills and Hadley Creek listed as an “apprentice”
agreement. All four agreements run through December 31, 2021. The City is to provide the Point of
Sale (POS) system and some employees to assist in the operation at HCGC and NHGC.
Key Provisions and Terms

• Independent Contractor Term: All four agreements are from March 1, 2021 –
December 31, 2021 with a possible 1-year annual renewable term.
• Contractor Responsibilities: Contractor is responsible to manage and promote the
golf business operations. The Eastwood and Soldiers Field concessionaire have
additional responsibilities assigned by the City’s Director of Park and Recreation. On-
site facility management includes managing pro shops and all golf related services,
collecting and accounting for City receipts, set standards for golf course appearance,
customer service, hiring, training and supervising golf operations personnel, providing
golf carts, marketing and managing play.
• Compensation: Contractors are paid by the City:
○ Eastwood GC – PGA Concessionaire earns appx. $57,500 salary + benefits +
sales of merchandise and equipment, golf instruction fees, gross practice range and
75% of gross cart revenue (contractor required to provide the carts).
○ Soldiers Field GC – PGA Concessionaire earns appx. $57,500 salary + benefits +
sales of merchandise and equipment, golf instruction fees and 75% of gross cart
revenue (contractor required to provide the carts).
○ Northern Hills GC – Concessionaire earns appx. $40,600 salary + benefits + sales
of merchandise and equipment, golf instruction fees and 75% of gross cart revenue
(contractor required to provide the carts).
○ Hadley Creek GC – Concessionaire earns appx. $40,600 salary + benefits + sales
of merchandise and equipment, pre-packaged F&B items and golf instruction fees.
Packet Pg. 19
1.a
Food & Beverage Concession Contracts

The three 18-hole golf courses (NHGC, EWGC, SFGC) are scheduled to have an independent
contractor to provide F&B service, although the contract at SFGC was vacant in 2021 during the
NGF review. The two agreements in place at EWGC and NHGC run through December 2021 with
renewal for 2022.
Key Provisions and Terms

• Concessionaire Responsibilities: Required to administer, manage, service and
dispense of all food, refreshments, confections, and beverages – including vending
machines and public and private gatherings. Also responsible for day-to-day
maintenance of the concession area (includes pest control), and must also maintain
City-owned equipment. Concessionaire is to furnish all employees, services, materials,
supplies and equipment necessary to maintain F&B operations, including insurance and
liquor licenses.
• Minimum Payments: Concessionaire pays the City:
o Eastwood GC – Concessionaire pays $500 per month ($4,000 per year – 8
months) to the City and is responsible for to fire suppression inspections, annual fire
abatement equipment maintenance and annual exhaust fan/hood equipment
maintenance and cleaning.
o Northern Hills GC – Concessionaire pays $1,000 per month ($8,000 per year – 8
months) to the City and is responsible for to fire suppression inspections, annual fire
abatement equipment maintenance and annual exhaust fan/hood equipment
maintenance and cleaning. This concession also has a provision for additional $500
per month paid to City to keep concession open in the winter with golf pro approval.
• City Responsibilities:
○ The City will provide all ordinary and reasonable repairs to preserve the building
and refreshment areas, which remain the property of the City.
○ Removal of rubbish, trash and garbage
○ City will furnish heat, light, power, gas and water.
City of Rochester Support to the Golf System

The golf operations at City golf facilities are a component of the City of Rochester offering, and the
golf course operations have support from the City through the Parks and Recreation Department.
This support includes several services provided to the golf course operation that are not directly
charged to the golf course system, including:
• Accounting and Oversight – The City of Rochester provides financial oversight and
auditing services to ensure accuracy of golf course accounting.
• Technology and Website – The City provides design, support, maintenance and
access to the various websites under the Parks and Recreation Department tab. At
present, this website is comprehensive, with separate pages for each of the four golf
facilities (more on websites later in this section).
• Marketing Support – The City provides marketing support to the golf course through
ongoing marketing and promotional activities.
Packet Pg. 20
1.a
System of Organization Summary

The basic structure of Rochester Golf divides the golf operations into two distinct divisions, pro
shop operations (lead by independent contractors) and golf course maintenance (lead by the City
and its Superintendent). This division by function (rather than by course) allows the City to
streamline operations and allow for efficiency of operations. While this system has been in place
for several decades, the NGF review in 2021 shows significant contraction in golf course
maintenance positions that could contribute to worsening maintenance conditions. The current
vendors have been in place for many years with the City reporting satisfaction in service to the
NGF consulting team.
ROCHESTER GOLF SYSTEM – REVIEW OF OPERATIONS

The NGF review has addressed several issues related to the operation of the Rochester Golf
system as a whole, as well as issues that are unique to individual facilities. In this section, the NGF
reviews the staffing, technology, marketing, fees, carts, merchandising, F&B service, player
programs and other organized activities associated with the operation of Rochester Golf courses.
City of Rochester Golf Facility Staffing

The City of Rochester golf staffing is divided into two primary divisions of service – pro shop
operations and golf course maintenance. We note that all maintenance staff is employed directly
by City, while golf operations and F&B service staff employed by the contracted vendor. In general,
full-time (FT) positions within the Rochester Golf system include salary and benefits (insurance,
retirement, etc.), with some other positions staffed with seasonal or part-time (PT) hourly positions.
Golf Maintenance Staffing

NGF has reviewed the staffing and budget for maintaining each Rochester Golf facility for 2020
and 2021. Documentation provided by the City shows a total golf course maintenance staff of three
full-time individuals, including one Golf Course Superintendent (HQ at NHGC) and two Landscape
Technicians (EWGC & SFGC) who essentially function as superintendents. We note the
superintendent at HCGC is also the golf professional, so we assume a split in pro shop and
maintenance responsibilities. In addition, the maintenance is supported by 21 additional part-time
staff that has a mix of responsibilities and time commitments.
This labor structure represents a significant reduction from recent years, where the City reports
eliminating as many as five (5) full-time golf maintenance positions since 2015. Before 2015, the
City of Rochester employed a full-time golf superintendent at each course plus two additional
assistant supers. The peak July 2021 staffing for golf maintenance included a total of 24 “bodies”
for a total full-time equivalent (FTE) maintenance staff of 14.0 for the full system:
City of Rochester Golf

Golf Maintenance Staff
Eastwood GC (18-H) Soldiers Field GC (18-H) Northern Hills GC (18-H) Hadley Creek GC (9-H)
Landscape Tech (FT) Landscape Tech (FT) Golf Superintendent (FT) Golf Pro / Super (FT*)
Asst Superintendent (PT) 8 Maintenance Staff (PT) Asst Superintendent (PT) 2 Maintenance Staff (PT)
5 Maintenance Staff (PT) 4 Maintenance Staff (PT)
Total Staff Charged to Total Staff Charged to Total Staff Charged to Total Staff Charged to
EWGC = 4.0 FTE SFGC = 5.0 FTE NHGC = 3.5 FTE HCGC = 1.5 FTE
*Assumes 50% maintenance and 50% operations. FT = Full-time w/benefits; PT = part-time hourly positions (1/2 FTE).
Packet Pg. 21
1.a
When compared to industry standards the NGF finds the Rochester courses are clearly under-
staffed and are barely capable of providing the level of maintenance conditions desired by the City.
The NGF standards in golf maintenance for municipal golf courses in the U.S. are between 7.0 and
8.0 FTEs per 18 holes.
Golf Operations Staffing (Clubhouse)
As noted, Rochester is operating golf course pro shops via concession with each golf professional
providing oversight, although the City is still providing most of the support staff. While there is no
single system-wide Director of Golf, the City is using the golf professional at Soldiers Field to
provide some strategic oversight to the golf shops and personnel. It was reported that Rochester
did have a single Director of Golf prior to 2016, but that position had been eliminated. The reported
operations staffing at City golf courses includes (FTEs provided for comparison purposes only):
City of Rochester Golf

Pro Shop Operations Staff
Eastwood GC (18-H) Soldiers Field GC (18-H) Northern Hills GC (18-H) Hadley Creek GC (9-H)
PGA Golf Professional (FT) PGA Golf Professional (FT) Golf Professional (FT) Golf Pro / Super (FT*)
4 Counter / Carts Support 4 Counter Support Staff
2 Counter Support Staff (PT) 2 Counter Support Staff (PT)
Staff (PT) (PT)
3 Carts / Range Support (PT) 3 Carts / Range Support (PT) 2 Range Support Staff (PT)
Total Staff Charged to EWGC = Total Staff Charged to Total Staff Charged to NHGC Total Staff Charged to
3.5 FTE SFGC = 3.0 FTE = 3.5 FTE HCGC = 3.5 FTE
*Assumes 50% maintenance and 50% operations. FT = Full-time w/benefits; FTH = full-time hourly positions via labor contract (1/2 FTE).
We also note that the limited staff availability in this system has resulted in the golf pros providing
counter service to customers, which is not ideal for a public golf business. The ideal would be to
provide more support staff to provide counter and other customer service roles, while senior PGA
professional staff would be working to grow the business and coordinate events and programming.
Staffing Summary
The NGF team finds Rochester Golf courses are generally under-staffed when compared to
national standards, and this is true in both maintenance and operations. While there are no
industry standards that can be referenced to determine the appropriate staffing levels for a
municipal golf operation, the industry averages are presented below. The size of the staff needed
for a particular golf operation depends on several factors, not the least of which is budget
considerations. Personnel costs typically represent the largest single expense item in a golf
operation, as is the case for Rochester golf courses. The NGF data on municipal golf course
operations from our survey in 2020 (2019 data year) show averages for total facility staffing (body
count) at 18-hole municipal golf courses nationwide (table below).
City of Rochester Golf Courses

Total Facility Identified Staffing per Property – 2021
Operations Staff Maintenance Total Staff
Facility
(FT / PT) * Staff (FT / PT) (FT / PT)
Eastwood GC (18H) 1.0 / 5.0 1.0 / 6.0 2.0 / 11.0
Northern Hills GC (18H) 1.0 / 5.0 1.0 / 5.0 2.0 / 10.0
Soldiers Field GC (18H) 1.0 / 4.0 1.0 / 8.0 2.0 / 12.0
Hadley Creek GC (9H) 0.5 / 6.0 0.5 / 2.0 1.0 / 8.0
Industry “Standards” (per 18 holes) 5.4 / 20.0 4.2 / 6.8 9.6 / 26.8
* The national standard for operations staff includes administration and F&B.
Packet Pg. 22
1.a
Review of Technology and Website

Like all golf facilities in the 2020’s, Rochester Golf courses are heavily reliant on technology to
support operations and market/promote the facility. The NGF review of the City’s point-of-sale
(POS) system, the website and other technology activities is presented in this section, followed by
NGF recommendations to enhance capabilities in this area.
Point of Sale (POS) System

The City of Rochester is currently using the RecTrac system from Vermont Systems for the Point-
of-Sale (POS) system for the golf system. RecTrac is a fully integrated parks and recreation
management software system designed specifically to serve local governments to manage various
recreation-oriented membership and participation activities. However, the system is not designed
specifically for golf, creating several management challenges for Rochester golf courses. The
challenges noted to NGF include:
• The RecTrac POS system does not interact properly with the City’s financial system used
by the Parks and Recreation Department, thus requiring performance reports to be
completed by hand and entered into the City system.
• The RecTrac system is older and does not include key modern features such as remote
check-in, and customer data tracking (database marketing).
• The RecTrac system is not easy to program and customize to the specific needs of each
City golf course.
The NGF sees the POS system as an essential component for a successful golf operation. There
are numerous POS options for public courses and they should include key features such as the
integration of POS with websites, online tee-time availability, reliable credit card processing and
customer tracking (see a summary of specific brands in Appendix A). Access to a modern POS
system with a marketing module would allow Rochester golf courses to:
• Create a customer database (no database of golf customers at present)

• Issue identification cards and/or capture golfers’ email addresses
• Communicate with customers via an opt-in email marketing program
• Maximize yield management
Making a change to a new POS system will be advantageous to Rochester golf courses, but may
also present some challenges that are summarized below:
New Point of Sale (POS) System

Strengths and Challenges to City of Rochester
Strengths of Adding New POS Challenges to Adding New POS
-Golf specific system designed for public golf course -Finding a new POS that will integrate with existing City systems
-Will enhance marketing and direct customer promotions -Training staff on a new system
-Add staff efficiency -The upfront cost of changing systems
-Enable better tracking of play (annual passes)
-Improve overall record-keeping
Packet Pg. 23
1.a
Rochester Golf Website

It is clear that in 2021 and the foreseeable future, the Internet is the most significant piece of golf
course marketing. Golfers, especially when traveling, are using the web more and more to find
places to play. As such, the Internet is now the most important single element in a golf
facility’s marketing. NGF studies show that upwards of 90% of all golfers will view web content
on a regular basis. The web has several key advantages over other forms of advertising, such as
low cost, wide reach and unlimited information.
The website for Rochester Golf courses is buried within the City of Rochester’s Parks and
Recreation Department website (www.Rochestermn.gov/government/departments/parks-and-
recreation/golf), but is easily found using Golf Rochester | City of Rochester, MN entry portal. The
golf course pages include all key information that is common in websites at successful public golf
courses, but is also missing key elements as well. The site needs much greater depth of
information and improved visual content to maximize the business potential of the golf facilities.
NGF has identified the most important features of a golf facility website should include (most are
included in the Rochester Golf website):
• Clear access to all fees and charges, including upcoming season (or off-season) rates.
• Lots of pictures of the scenic beauty of the Rochester courses and their clubhouses, but
also of golfers having a great time.
• A map with directions (be sure the current Google Map location is accurate for GPS).
• A portal for golfers to sign up for the email program to stay in touch with the club.
• An ability to purchase gift cards online.
• Full information about golf programming and how to join golfing clubs.
• A calendar and news of tournaments and results of previous events, which is very
popular with websites at successful golf facilities.
It is essential that the website be kept current for rates, hours, etc. The best sites are the ones that
are constantly being updated, so that customers get in the habit of checking them. Maintaining the
golf course website should be an ongoing task, most likely included in the activities of the senior
staff member most responsible for marketing the facility.
Search Engine Optimization

The most effective websites are those that can be found easily. As noted, the Rochester Golf page
is embedded with the City’s website, but can be found easily in a narrow local search. It is
beneficial for golf course websites to be designed so that today’s Web search engines will find it
based on key terms people are likely to use. In reviewing search engines such as Google and
Bing, NGF found that the Rochester Golf site is very strong in search engine activity when
searched for in the context of “Rochester, MN” but much less so when searching in context of
“Minnesota” or “South Minnesota.” NGF findings when searching for:
• “Golf Rochester / Rochester Golf Courses” – City golf site is the first listing.
• “Golf Minnesota” – Rochester courses are not on any of the first five pages, but several
statewide lists of courses that include Rochester are displayed.
• “South Minnesota Golf Courses” – Rochester courses are not on any of the first five pages,
but several other regional courses are listed (Broken Tee, South Fork, Green Lea) and
even Rochester Indoor Golf.
Packet Pg. 24
1.a
In an effort to fully enhance the marketing of Rochester Golf courses, key words like “Minnesota”
and “South Minnesota” should be part of the search engine optimization strategy for the golf
website. Search Engine Optimization (SEO) is the process of maximizing the number of visitors to
a particular website by ensuring that the site appears high on the list of results returned by a
search engine. The process is optimized by providing important HTML clues (page headings /
detailed descriptions) that help search engines (and users) determine relevancy to search clues.
E-mail / Newsletter
E-mail databases are essential in today’s golf market place, as a means of staying in touch with
the golfer customer base via active newsletter. E-mail marketing, with the exception of word-of-
mouth and free advertising, is the most cost-effective advertising possible. At present, Rochester
Golf has not maintained a database of customer emails, which is limiting the effectiveness of
course marketing, especially to the potentially important tourist market. Emails can provide a very
strong network for newsletter distribution to keep up the awareness of Rochester courses. Golf
professionals report trying to collect email addresses from customers purchasing season passes.
Expanding and maintaining the database should be a top priority of management, so that email
marketing can be optimally implemented.
Social Media
Social networking is the fastest growing marketing tool in golf, and Rochester is not active in trying
to promote City golf courses on social media platforms like Facebook, Instagram and Twitter. This
is best to use as a method to communicate “what’s going on” type of messages (who won a
tournament, who had a hole-in-one, etc.), This type of communication tends to build loyalty and
repeat activity. YouTube is the second most utilized search engine on the internet and Rochester
Golf can expand its presence with informational videos of the facilities and golf courses, as well as
league, tournament and instructional activities.
Technology Summary and Recommendations
The review of the POS and other technology systems in place at the City golf courses illustrates
areas that can be improved. Upgrades to a more golf-appropriate POS system would help the
facilities improve rounds and revenue. The golf website should be enhanced with more visually
appealing images and photos of the golf courses and people enjoying activities. In addition, more
information about what is going on at the courses, with all kept up-to-date, will have the most
impact on improving rounds and revenue activity at Rochester Golf courses.
Golf Courses Marketing

Traditionally, NGF recommends marketing budgets for golf courses of at least 1% of total revenue,
or roughly $13,400 for Rochester courses in 2020. This budget level is intended to include all
activities associated with promoting and advertising the facility, as well as direct personnel costs
(or contracts) for marketing staff. The amount actually spent by the City in 2020 was around
$5,400, although the City did spend just over $13,100 for marketing the courses as recently as
2017. Most of this money is spent on print advertising and on in-house graphic designs for ads and
flyers as needed for general marketing and special promotions.
The key marketing initiatives that should be part of the program for Rochester Golf include the
items more common in modern (2021) golf marketing, like the electronic methods that typically
have much lower cost than more traditional print and media ads. This would make spending on
specific marketing activities less important than spending on staff (or sub-contractors) to maximize
the effectiveness of electronic and website methods. The City is reporting a renewed focus on
marketing efforts related to its website and social media activities, which will have to be expanded
greatly if new investment in clubhouse facilities at EWGC is undertaken (more later in this report).
Packet Pg. 25
1.a
Going forward, NGF recommends marketing Rochester Golf Courses by: (1) maintaining or
building “wallet share” from existing golfers; (2) improving messaging and reach to attract greater
participation from golfers visiting Rochester; and (3) developing a complete tournament and
outings strategy that includes direct “face-to-face” marketing to potential target groups. Strategies
include: enhanced marketing via the Internet; direct selling; and judicious use of discount books,
internet specials, etc. Other recommendations related to Rochester Golf marketing include:
• Hotel and Lodging Strategy – City and golf professionals should actively work to
promote Rochester Golf Courses to local hotel and lodging properties in the downtown
Rochester/Mayo clinic area. The program to have hotels on account for direct billing is
ideal to grow this segment and should be included for lodging properties that feed
players to EWGC and SFGC.
• Tournaments and Outings – It is assumed that senior golf staff will directly market to
tournament and outing prospects. NGF recognizes that there is competition in the
market, but Rochester Golf Courses can be appealing for tournaments and outings,
especially if the clubhouse at EWGC is enhanced and expanded as is under
consideration.
• Print / Brochure - Printed ads can still be effective in golf, and the Club should create
new printed fold-out pieces with specific focus for golf. The golf fold-out piece would be
printed with the word “Golf” in the upper 1/3 of the front page – to stand out in racks.
This piece should be distributed and placed in as many areas, visitor’s centers, hotels,
and tourist attractions with information racks as is reasonable.
• Signage - The signage for Rochester Golf Courses should be improved as is allowable
by local guidelines. This is especially important for a course like EWGC and HCGC,
which are a little more difficult to find than SFGC and NHGC that are visible from major
roadways. All signage for the golf courses must make it clear that the golf facility and all
amenities are City-owned and “open and available to the public.”
• Clubhouse and Banquet Marketing - Marketing clubhouse amenities and services is
also key to success at Rochester Golf Courses. We believe the most effective and
efficient strategy for marketing the clubhouses would include both internal marketing
(on-site promotions for food and beverage and upselling), and direct marketing, largely
through the internet. Other key recommendations for marketing the clubhouses at and
banquets (especially if upgrades are undertaken at EWGC):
▪ Include a lot of pictures on the website and contact information.
▪ Have a strong presence on social media.
▪ Provide updated sales collateral materials on the facility.
▪ Invite local community groups to hold events at the new facility (Rotary
Meetings, local business networking meetings, Chamber Events, etc.).
Golf Playing Fees Discussion

The tables in Appendix B show selected fee rates at the City golf courses for the current summer
of 2021. The City has an annual program for reviewing and modifying golf fees that involves review
of course performance in the prior year, as well as feedback from the other area public golf course
rates. Pricing projections are then developed by golf professionals and presented to the Parks and
Recreation staff for final approval. The basic pricing convention for Rochester includes only 189-
hole and 9-hole rates, plus a defined senior rate (62+). In all, the Rochester Golf fee conventions
are standard for the industry and the market area, as only two other area courses show a different
structure (more in competitive section).
Packet Pg. 26
1.a
Annual Fee Player / Season Pass Fees

The table in Appendix C provides a summary of season pass fees at Rochester courses in 2021.
The season pass program is essentially providing a pre-paid green fee for active players, as there
is very little other advantage to the pass. There are three levels of passes – adult single, couple
and family. Like green fees, the City is also offering about a 13% discount for seniors (62+), but is
also offering discounts for younger adults (under 30) and juniors (age 6-18). The City allows
payments for the season pass to be paid out over time, with a 1/3 payment in each of three
consecutive months, and can be billed direct to a credit card. The City will also offer an “early-bird”
discount for golfers who pay in full before January of each year. The discussion of how this
program fits in with the local market is discussed in more detail later in this report.
Multi-Play Discounts or “Rewards” Program

The Rochester Golf courses are operating with a Patron Card loyalty, which includes a $75 initial
fee and includes a 25% discount on green fees. Loyalty programs like this are common at
municipal courses nationwide and in this market. These programs are seen as a good way to help
retain a greater share of individual golfer spending on golf courses, adhering to a basic business
practice of “trading rate for volume.” A key challenge in these programs is to prevent too much
discounting, especially to players who would pay the full fare anyway.
Rochester Golf Fee Summary

The NGF summary of findings related to “standard” pricing at Rochester courses:
• The Rochester Golf fee structure is rigid in that there is one price structure for all three
18-hole courses (NHGC, EWGC, SFGC) despite different experience. In addition, there
are no price breaks in fees for changes in demand that are common in public golf, such
as weekday/weekend and/or late afternoon (“twilight”) discounts.
• The Rochester golf pricing is not providing for any kind of internal segmentation to
provide a “something for everyone” rate structure, which is not consistent with the most
successful municipal golf systems with multiple facilities that have a segmented rate
program, thus providing different rates at different facilities and adding choice to
consumers.
• The only discounting on base green fees at Rochester courses is for seniors over the
age of 62 (13% discount), thus providing reduced pricing for the most active customers.
While this discount price concept is common in the national market, it is less common in
the Rochester area (more in competitive section).
• The market review suggests that the Rochester 18-hole courses have green fees that
are priced in line with the desired niche with the local competition. In general, the City
prices its golf courses with the intent of being in the upper-middle price range, higher
than all but one public golf course in this market area (The Jewel is the highest fee -
more later in this report).
• Membership pricing has been increasing steadily since 2016, with at least a 25%
increase in most all categories noted. Still, with upwards of 1,300+ season pass holders
playing more than 2/3 of rounds at City courses, the discount for passholders is
exceeding the 25%-35% industry target for pre-paid green fees at public courses (more
later in this section).
Rochester Golf Fee Recommendations

As detailed in the competitive review later in this report, Rochester Golf courses are generally
priced appropriately, although there may be some advantage to adding segmentation between
courses and providing discounts for periods of slower demand like weekday afternoons. If new
Packet Pg. 27
1.a
investment is made at EWGC, the facility will attain more pricing power and can maintain stronger
rate integrity with fewer discounted rounds. We note that the three 18-hole Rochester courses are
earning around 35%-40% of the highest $32 ‘rack’ rate, compared to the standard ±65%. This is
likely attributable to a number of factors, including the large number of season pass holders and
the high percentage of daily fee golf played at a discounted rate (seniors, loyalty card, etc.). The
NGF recommendations for golf fees at Rochester courses are noted below:
• Maintain the recent program of season pass fee increases, with at least 6.0% increases
every year for passholder fees.
• Add one layer of fee segmentation between courses with a 10% price reduction at
Soldier Field GC.
• Consider raising the weekend fee by $2-$4 and add a weekday rate at current pricing.
• Reduce the senior discount from 13% to 10%.
• Add the futures price concept to green fees, with no more than 10% additional discount
to stimulate play among younger age segments (under 25).
Review of Golf Carts

The City of Rochester operates a fleet of 139 carts, with 50 at Eastwood, 40 at Northern Hills, 27 at
Soldier Field and 22 at Hadley Creek. The carts are now all owned by the contracted golf
professionals with the 25%/75% revenue share as presented earlier. The cart fleet at each course
is adequate for all but a very small number of extremely busy days and/or large tournaments. The
sizes of the fleets are also reflective of the frequency of walking golfers, where EWGC has the
highest demand for carts and SFGHC has the lowest (among 18H courses). This structure
appears to be working for this system, as the City does not have any direct expense in acquiring or
maintaining a fleet of carts. This system puts that responsibility on the golf professionals, who then
recover investments through user fees.
Having newer carts in good condition is a high priority for Rochester, as clean carts in good
working condition with modern features reflect positively on public golf facilities and encourage
additional rounds demand. However, the carts in June 2021 were not in the best condition and
reflect extensive use during the Covid-19 pandemic and a period of single-rider use. The carts are
gasoline-powered and stored in a mix of mostly outdoor pen areas, except Hadley Creek which
has cart storage at the lower level of the clubhouse.
Merchandise Operations
The City golf courses have a mix of pro shop operations, with a mix of size and space at each
location. Rochester golf courses tend to attract a value-conscious customer that seeks lower prices
on golf merchandise. EWGC and NHGC host a higher volume of tournaments and pro shop credit
is a common prize for tournament winners. As a result, the sales volume is higher at EWGC and
NHGC than at SFGC. As per contract, all pro shop revenue belongs to the golf professional, along
with all associated costs of inventory.
Merchandising at the City courses consists of mostly impulse items (balls, tees, gloves, hats, etc.),
limited soft goods (mainly logoed shirts, vests & sweaters) and some clubs and club repair. The
items that tend to sell best at facilities like these are the obvious impulse items as noted above, but
also logoed merchandise like shirts and outerwear. Rochester is not active in selling golf clubs and
other hard goods, which is consistent with the trend NGF has documented in on-course retailing
not wanting to compete with “big-box” retailers or the internet.
Packet Pg. 28
1.a
Review of data shows that golf pros are generating a mix of revenue in merchandise sales, with
the strongest revenue at EWGC and NHGC (over $40,000 at each in last two years). These two
facilities have merchandise operations that resemble a “standard” public golf pro shop structure,
with sales and inventory levels closer to expected standards than SFGC and HCGC. For the full
City system, the four pro shops generated just over $105,000 in sales, or $1.07 per round of golf.
The national “standard” for pro shop revenue is $2.71 per round of golf with an expected direct
cost of sales at 70% to 75%. As the total margin on merchandise is only around 30% (best case),
the net income will never be significant in merchandise sales. Rather, this is a service to golfers to
make the round more enjoyable and help bring them back for more. A summary of the Pro Shop
operations at the Rochester Golf courses is shown below:

Pro Shop Operations
2020 Total 2020 Pro 2021 Total
Pro Shop Shop Rev. Pro Shop % Change
Course Basic Features Revenue per Round* Revenue (2020-21)
Eastwood GC Small pro shop with strong inventory $40,960 $1.48 $48,300 17.9%
Northern Hills GC Small pro shop with modest inventory $40,096 $1.64 $43,031 7.3%
Soldiers Field GC Larger pro shop with small inventory $14,543 $0.49 $21,300 46.5%
Small pro shop with small inventory –

Hadley Creek GC $9,441 $0.65 $16,878 78.8%
loaner clubs and consignment items
Total System $105,040 $1.07 $129,509 23.3%
*U.S. Standard for 18-hole courses = $2.71 per round in revenue and 70% direct cost of sales.
Food and Beverage Operations

Ideally, every golf facility (regardless of type) needs to have some type of food and beverage
operation. Food and beverage operations at golf facilities tend to achieve two goals: (1) provide
direct revenue; and (2) help increase the overall volume of rounds and other revenues at the
facility. The NGF does not expect a high volume of net revenue from food and beverage
operations. The typical 18-hole public golf course will earn about $4.65 per round in food and
beverage, leading to an expected total gross revenue level of around $150,000 () per year, less
direct costs, leading to a net return to the municipality of about 10%. This would be considered
“typical” for a regulation 18-hole public golf course playing around 33,000 (±) rounds, unless there
was additional space for large banquets, parties, meetings, luncheons, etc. Having appropriate
space available to host large banquets, parties and golf events will certainly add to the potential
revenue at golf facilities, both directly (increased F & B sales) and indirectly (increased green and
cart fees). The estimated 10% return on F&B operations tends to hold regardless of whether the
F&B operation is leased, on concession or self-operated by the municipality.
Rochester Golf Courses F & B Statistics

The food and beverage operations at Rochester golf courses include a mix of basic snack bar
operations at Eastwood and Soldiers Field, a more extensive bar operation at Northern Hills and
the vending-only concept at Hadley Creek. A summary of the F&B concessions at the Rochester
Golf courses is shown below:
Packet Pg. 29
1.a

Food and Beverage Operations
2020 Total 2020 F&B Rev.
Course Basic Features F&B Revenue per Round*
Full snack bar with walk-up counter and grill (dogs,
Eastwood GC $63,200 $2.28
burgers, etc.). Seating for up to 50 indoors.
Full snack bar and bar with multiple TVs and full
Northern Hills GC menu + indoor seating up to 80 and some outdoor N/A N/A
seating space.
Small snack bar with walk-up counter and grill with
Soldiers Field GC $-0-1 $-0-1
seating for up to 80 indoors + small outside seating.
Light snacks, beverages and pre-packaged vending
Hadley Creek GC N/A N/A
items only.
Total System N/A N/A
*U.S. Standard for 18-hole courses = $4.65 per round in revenue and 10% net (lease, concession or self-operate).
1. SFGC F&B service not in operation in 2021.
Basic F&B Service

The basic food and beverage service provided at the 18-hole Rochester courses include the main
snack bar service that is the centerpiece of F&B operations at these locations. This operation
provides a level of service than is common at typical municipal golf courses, and includes a walk-
up / take-away form of restaurant service that is preferred by public golf customers. The grill
seating area includes space for about 50+/- patrons at EWGC, with more space (up to 90+/-) at
NHGC and SFGC. None of these locations have any significant outdoor seating component, which
has become popular at public golf courses in recent years, especially given the recent pandemic.
While NHGC and SFGC have more space available for events, EWGC has the golf course better
suited for golf events, thus creating a mismatch of facilities in the Rochester system. Staff reports
considerable challenges in hosting large tournaments at EWGC due to the small snack bar area.
As attraction of golf tournaments and events is a key to successful public golf operations, this is a
significant deficiency in the Rochester Golf system.
Each snack area at Rochester courses is open daily for breakfast and lunch, closing only when the
golf course is also closed. The courses offer bar/grill service with a modest menu of burgers ($8-
$10), appetizers ($8-$9) and pizza ($9-$12), plus a selection of wine, beer (domestic, imports and
non-alcoholic) and liquor. Each private vendor owns the liquor license for each operation, and each
will offer some kind of programming with various specials, theme nights and discounts. The basic
set up at each facility provides an opportunity for significant enhancement of non-golf activity (non-
golf lunches, banquets, parties, etc.), but staff reports the only non-golf support in F&B revenue is
at NHGC, although there was some at SFGC when it was open given its location. It seems that
these facilities are getting by with the limited space available, as EWGC needs to expand both
indoor and outdoor spaces, while all three would benefit most from enhancing outdoor service.
Programming and Organized Golf Activities

One of the keys to successful public golf facility operations is the continued promotion and hosting
of organized activities and programs, such as leagues, outings, tournaments and player
development. These activities are important to maximizing rounds activity at public golf courses
and NGF observations show Rochester Golf courses being very active in promoting a strong
calendar of events. These events tend to stimulate activity and encourage repeat play, generating
more rounds per golfer than at courses that do not have an active event calendar.
Packet Pg. 30
1.a
Leagues
The three 18-hole courses are very active in hosting organized leagues that play regularly on
various days during the week in golf season. These leagues serve as an important revenue
supplement to standard daily fee play. Total rounds from leagues are not directly counted by the
courses, but NGF estimates that league play represents approximately 10% to 15% of total rounds
played, with most from season pass holders. This represents a key source of late afternoon
weekday rounds and perhaps this is a market that can grow in the future.
Outings/Tournaments
Rochester Golf staff suggests that the majority of tournament and outing activity occurs at Northern
Hills, with some smaller tournaments occasionally held at Soldiers Field. With its championship
golf course, EWGC is the preferred location for large events, but small indoor gathering space is a
hindrance to attracting the bigger events. Staff reports a modest calendar of large tournaments,
representing less than 5% of total play. Most events typically seek out 18-hole courses that have
some food & beverage capacity and covered areas to gather after play is completed. With
additional or more convenient gathering space (and additional restrooms), outings and events
could grow at EWGC. Successful public golf courses should have at least 5% to 10% of total
rounds generated from outings and tournaments.
Lessons and New Player Development

We note that player development will be one of the critical elements to the long-term viability of
Rochester Golf courses, and this should remain as a point of emphasis for the City. At present,
Hadley Creek is the centerpiece for new player development in Rochester, although the other
courses do have a lesson component. The NGF has documented that a critical element to the
long-term viability of public golf courses is player development, especially a strong Junior Program,
and it is important that these initiatives are continued into the future at Rochester courses. Player
development programs at golf courses are important for generating interest in golf and creating
future customers, thus total revenue derived from the programs is much less important.
Other Operational Observations

Other issues related to the operation of Rochester Golf courses that should be considered by the
City that could have direct impact on activity and revenue at these facilities:
• Customer Service - Strong customer service can be a key differentiator in building
customer loyalty. High level service at a golf course begins the moment the golfer sets
foot on the property, beginning with a friendly welcome (especially for faces that staff
may not have seen before). NGF generally recommends strategies such as staff
training and establishment of service standards & measurable metrics – monitored
through periodic customer surveys and occasional secret shoppers - to make sure that
the standards are being consistently met or exceeded. However, limited staff has made
the implementation of initiatives like these more difficult in Rochester.
• Club Rentals – Rochester currently has very few sets of rental clubs to offer patrons
needing this equipment (most at EWGC and SFGC). NHGC does not have room to
store rental clubs and HCGC has a large inventory of donated use clubs for use by
beginners at no charge (ideal program for that facility). In an effort to expand service to
help accommodate less frequent golfers, Rochester courses should continue to make
high-quality rental golf club sets available to golfers, and communicate this fact to
potential customers. The key revenue sources for the City are green and cart fees, and
rental sets help the facility to sell more rounds. The rental sets themselves are not
typically a strong direct profit center.
Packet Pg. 31
1.a
• Practice Facility Operation - For many public golf courses, the driving range can be a
significant source of revenue if it has the appropriate features, such as good quality turf,
good golf balls, convenient accessibility to the parking lot/clubhouse and adequate size
(275 yards+ of length). The ranges at Rochester Golf courses have most of these
characteristics, and thus can be a strong profit center for the City. As the driving range
is part of the City’s direct revenue and is often one of the highest margin revenue
centers in a golf operation, any revenue generated in this area will lead to
improvements in the City’s net golf revenue.
SYSTEM-WIDE OPERATIONAL PERFORMANCE

NGF has completed a review of the operational / economic performance of the four City of
Rochester golf facilities from data presented by the City and golf professionals. In summary, it
appears that the City golf courses are performing with activity, revenue, and operating expenses
that are well below national standards for the type of facility operation. The review below covers
rounds activity, revenues and operating expenses over the last few years.
Rounds
The table below shows total rounds by facility since 2016. The review shows a growth trend in the
last two years as the facilities seem to be recovering back to its recent high of over 102,000 rounds
in 2016. Like many golf facilities in the U.S., Rochester Golf courses saw a tremendous increase in
rounds activity due to Covid-19 restrictions and the availability of golf as one of the few “safe”
activities for people to undertake. As we move into 2021 and beyond, retaining this influx of new
golfers will become a key challenge for golf operators.
In comparison, the total U.S. experienced a significant increase in rounds played of 13.9% for
calendar year 2020, the largest increase in more than a decade. This followed a 1.6% increase in
2019 that came after a -4.8% decrease in 2018. Longer term, rounds of golf had declined an
average of -8.4% per-course between 2008 and 2017. By comparison, NGF and Golf Datatech
(Appendix D) record rounds showed an 8.4% increase in the first nine months of 2021. The total
U.S. standard for rounds played (“starts”) at an 18-hole golf course is at 31,527 for 2019. A
summary of total rounds by year at Rochester courses since 2016 is shown in the table below:

Total Rounds Played by Facility (2016 – 2021*)
‘16-20 % of
Year 2016 2017 2018 2019 2020 2021*
avg Total
Eastwood 29,239 27,709 28,964 28,399 27,684 22,778 28,399 26.8%
Northern Hills 26,760 25,269 19,321 18,089 24,510 22,450 22,790 26.4%
Hadley Creek 14,852 12,273 14,474 13,934 16,049 16,520 14,316 19.4%
Soldiers Field 31,676 28,089 30,927 33,051 29,840 23,382 30,717 27.5%
Total 102,527 93,340 93,686 93,473 98,083 85,130 96,222 100.0%
Annual Change -9.0% 0.4% -0.2% 4.9%
Source: City of Rochester *Partial year through August 2021.
Rounds by Type
The table below shows the mix of rounds played by type since 2016. We see that more than 2/3 of
Rochester rounds are played by season pass holders. Rounds played at Rochester Golf courses
since 2016 is shown in the table below:
Packet Pg. 32
1.a

Total Rounds Played by Facility (2016 – 2021*)
‘16-20 % of
Year 2016 2017 2018 2019 2020 2021*
avg Total
Green Fee Rounds 32,752 30,433 28,986 28,879 33,702 27,463 30,950 32.2%
Season Pass Rounds 69,775 62,907 64,700 64,594 64,381 57,667 65,271 67.8%
Total 102,527 93,340 93,686 93,473 98,083 85,130 96,222 100.0%
Source: City of Rochester *Partial year through August 2021.
Season Pass Analysis

Rochester Golf Courses offers golfers an option to pre-pay for golf through the issuance of season
passes or memberships. These passes come in several types that allow discounts for seniors,
young adults and juniors. The total number of passes has been steady at around 1,300+/- in the
last few years, with some decline in 2020 during the pandemic and quick recovery in 2021. Over
the same period, the fees for these passes have increased by about 25% with a peak family rate
increasing from $895 in 2016 to $11,50 in 2021. These fee increases without a corresponding drop
off in sales suggest inelastic demand for golf passes in Rochester. Total season pass fees
collected by the City exceed $500,000 in each of the last five years. The table below shows the
season pass history by type from 2016-2021:
Rochester Golf Courses

Total Season Passes by Type (2016 – 2021)
2016 2017 2018 2019 2020 2021
Golf - Adult 157 169 177 174 135 167
Golf - Family 67 26 45 39 27 35
Golf- Couple N/A 40 22 23 36 46
Golf - Young Adult 131 81 79 73 60 86
Golf - Young Adult Couple N/A 11 16 7 11 22
Golf - Futures 209 137 142 146 147 164
Golf - Junior 100 82 81 98 118 167
Golf - Senior 262 261 268 255 209 262
Golf - Senior Couple 93 102 109 107 92 107
Golf - Patron 134 124 345 325 278 260
Golf - HC Adult 166 106 49 55 35 58
Golf - HC Family Season Pass 2 10 8 8 8 14
Golf - Hadley Creek Upgrade 46 43 N/A N/A N/A N/A
Total 1,367 1,192 1,341 1,310 1,156 1,388
Source: City of Rochester
These pre-paid green fee arrangements are common at public golf courses nationwide and in this
local market, and offer frequent golfers an opportunity to lower their average cost per round while
providing significant up-front revenue to the facility. However, as we see below, the program is
allowing for significant discount for a large portion of the activity at Rochester Golf Courses, where
season pass holders are paying less than $9.00 per round for green fees, compared to the
published green fees of $17-$32. The table below shows the revenue impact of season passes,
excluding the patron cards and Hadley Creek-only passes:
Packet Pg. 33
1.a

Season Pass* Analysis (2016 – 2020)
2016 2017 2018 2019 2020
Total Number of Passes* 1,153 1,033 1,284 1,247 1,113
Total Pass Revenue* $537,433 $515,294 $540,383 $549,768 $490,024
Average Revenue per Pass $466.12 $498.83 $420.86 $440.87 $440.27
Total Passholder Rounds* 60,835 56,529 56,420 57,107 56,154
Avg. Rounds per Pass 52.8 54.7 43.9 45.8 50.5
Avg. Rev. per Pass Round $8.83 $9.12 $9.58 $9.63 $8.73
Source: City of Rochester *Analysis excludes all patron card sales and HCG -only passes and HCGC pass rounds.
Member – Daily Fee Golf Balance

At present, total rounds played at Rochester Golf Courses are divided between daily fee players
who pay a unique fee for a single round of golf, and season pass holders who pay an annual fee
for unlimited golf during the year. These passholders play about 68% of total rounds at Rochester
golf courses and 32% of rounds come from daily fee players. On a per round basis, passholders
paid $8.73 per round for green fees (2020) compared to an average of $16.19 for daily fee players.
This represents a discount of about 47% for members compared to the 25% to 35% discount that
is the target for public courses operating with memberships (also known as semi-private).
One key to enhancing revenue at Rochester Golf Courses is to increase the inventory of tee times
that can be sold to the public at a premium price. The City could consider managing this inventory
in a tee time allocation system to allow for tee times to help attract the daily fee golfers who pay a
higher rate. In all, the City may be able to do more within its system of three 18-hole courses to
maximize non-passholder participation and help to maximize the number of higher-paying daily fee
customers that can be accommodated.
Revenue by Source and Facility

The tables below show the total City revenue at Rochester golf courses. For comparison, the NGF
has identified through past research that the ‘average’ revenue for an 18-hole municipal golf
course was about $1.2 million in 2019. As shown, City Golf facilities are producing revenue that is
far below standard, although the ‘average’ includes ancillary items such as cart fees, F&B,
merchandise, driving range, and other revenue currently logged as concession income in
Rochester. This level of revenue performance is reflective of lower-than-average rounds activity
noted above, coupled with a lower-than-standard average revenue earned per round (more in
section that follows the table below). Total revenue broken by facility since 2016:

Total City Golf Operations Revenue by Facility (2016 – 2021*)
‘16-20 % of
Year 2016 2017 2018 2019 2020 2021*
avg Total
Eastwood $191,716 $179,645 $183,213 $174,683 $202,411 $178,377 $186,334 14.3%
Northern Hills $228,348 $236,934 $206,973 $170,881 $258,939 $189,407 $220,415 16.9%
Soldiers Field $165,854 $160,581 $160,905 $177,722 $197,325 $161,664 $172,477 13.3%
Hadley Creek $172,327 $199,886 $158,738 $176,765 $177,102 $173,893 $176,964 13.6%
Admin** $567,093 $527,627 $557,628 $566,177 $504,700 $374,378 $544,645 41.9%
Total $1,325,338 $1,304,673 $1,267,457 $1,266,228 $1,340,477 $1,077,719 $1,300,835 100.0%
Annual Change -1.6% -2.9% -0.1% 5.9%
Source: City of Rochester *Partial year through July 2021. **Admin revenue is predominantly season passes and patron cards.
Packet Pg. 34
1.a
Revenue by Source
The City facilities have a mix of golf fee revenue earned directly by the City and other ancillary
revenue earned by the City’s golf professionals and F&B vendors. Combined, the two entities
combined for a total of just under $1.68 million in revenue in 2020, an amount that is much lower
than standard for a four-facility system like Rochester. Total revenue by line-item at City courses
from 2016-2021 is shown below:

Total City Golf Operations Revenue by Source (2016 – 2021*)
Revenue 2016 2017 2018 2019 2020 2021*
Memberships $614,369 $593,768 $578,939 $590,413 $522,083 $391,455
Reg. Green Fees 425,315 438,883 393,742 378,254 457,973 424,298
Patron Green Fees 47,813 27,565 61,899 69,860 87,813 65,855
Cart Use Fee 112,433 107,457 102,417 92,204 132,059 12,805
Driving Range 61,908 69,538 63,637 63,065 83,602 98,825
Pro Commissions 65,450 67,186 66,833 72,455 56,980 76,285
Misc. (1,950) 276 (10) (23) (33) 8,196
Total Revenue $1,325,338 $1,304,673 $1,267,457 $1,266,228 $1,340,477 $1,077,719
Annual Change -1.6% -2.9% -0.1% 5.9%
Ancillary Rev. via Contract
Golf Shop $105,040 $129,509
Carts 194,130 376,986*
F&B N/A** N/A**
Data not Available
Driving Range 30,869 37,600
Other 6,858 8,000
Total $336,897 $552,095
Source: City of Rochester Parks & Recreation Department + contracted golf professionals. *2021 through August. Cart revenue in 2021 includes
NHGC + HCGC as per new contracts. **Full F&B data not provided to NGF – HCGC snacks included as pro shop + SFGC F&B not in operation
in 2021.
Average Revenue Analysis

The total system-wide average revenue per round was $17.10 in 2020, inclusive of all City and
most vendor revenue (excludes F&B). As noted, this revenue is split between the golf fee and
range revenue earned by the City and the ancillary revenue earned by concessionaires. The NGF
average for public golf courses in the U.S. was $38.71 for total revenue per round, with 29.81 from
golf playing fees and an additional $4.65 for F&B, $2.71 for merchandise and $1.54 for other
(range, instruction, etc.) for a total of $38.71 per round. In 2020, City golf facilities were earning
revenue per round that was far below this standard in all categories, with actual 2020 average
revenue per round compared to standards shown below:
EWGC in NHGC in SFGC in Generally Accepted

Year FY2020 FY2020 FY2020 U.S. Average
Rounds 27,684 24,510 29,840 31,500 (per 18-H)
Golf & Rental Fees* $16.17 $13.86 $13.80 $29.81
Golf Shop Merchandise** $1.48 $1.64 $0.49 $2.71
Food & Beverage** $2.28 N/A N/A $4.65
Driving Range** $1.12 $1.67 N/A $1.50
Other** $0.27 $0.00 $0.00 $0.04
Total $21.24 $17.17 $14.29 $38.71
*Golf fees includes all City green + patron fees, season pass revenue (by rounds %), and all cart revenue (both City +
pro).**provided by selected vendor.
Packet Pg. 35
1.a
Operating Expense by Type and Facility

The table below shows the total operating expenses broken out by each facility since 2016. For
comparison, the NGF has identified through our research that the ‘average’ 18-hole municipal golf
course had total expenses comparable to revenue, or about $1.2 million in 2019. As noted, a true
comparison to national standards is not complete without the concessionaire operating expenses,
but it is clear that Rochester Golf courses are well below all standards in operating expense at
each location. The table below shows the total on-site operating expense broken out by facility
since 2016.

Total City Golf Operations Expense by Facility (2016 – 2021*)
‘16-20 % of
Year 2016 2017 2018 2019 2020 2021*
avg Total
Eastwood $486,142 $410,669 $436,104 $450,403 $439,689 $319,955 $444,601 29.7%
Northern Hills $388,066 $427,520 $428,802 $443,462 $398,530 $274,462 $417,276 27.9%
Soldiers Field $349,558 $411,971 $486,386 $448,471 $295,315 $243,412 $398,340 26.6%
Hadley Creek $209,901 $203,624 $208,089 $227,416 $172,581 $169,507 $204,322 13.7%
Admin** $28,928 $36,401 $31,823 $28,270 $30,736 $19,421 $31,232 2.1%
Total $1,462,595 $1,490,185 $1,591,204 $1,598,022 $1,336,851 $1,026,757 $1,495,771 100.0%
Annual Change 1.9% 6.8% 0.4% -16.3%
Source: City of Rochester *Partial year through July 2021. **Admin revenue is predominantly season passes and patron cards.
Total Expense by Type

The table below shows total on-site operating expenses by major line-item since 2016. The table
includes direct on-site expenses borne by the City at golf course locations combined, and does
not include expenses for pro shop and F&B service (borne by contract vendors). These operating
expenses had increased between 2016 and 2019, falling dramatically with some City cutbacks in
2020. These expenses are those related to direct operation of the golf courses and do not include
additional City charges to the golf operation for services (accounting, legal, payroll, etc.) nor do
these operating expenses reflect the capital expenditures that are spent to improve the courses
(addressed separately). While NGF is not able to complete a proper comparison to national
standards without including the concessionaire expense for pro shop / F&B operations, we note
that the NGF standard for total operating expenses is $1.2 million per 18 holes, which is certainly
higher than what is spent at Rochester Golf courses.

Total Golf Operation Expenses by Category (2016 – 2021*)
Operating Expenses 2016 2017 2018 2019 2020 2021*
Employee Sal. & Benefits $885,640 $863,313 $938,562 $947,527 $744,868 $593,248
Utilities 133,767 130,544 134,888 129,104 136,721 85,294
Professional & Contract Svcs. 147,730 126,369 128,094 125,164 92,953 44,315
Adv., Pub & Print 7,324 13,136 7,790 6,817 5,401 5,454
Materials & Supplies 146,206 158,511 169,838 150,387 117,077 128,590
Vehicle/ Eq. Replacement 147,682 198,042 212,848 240,054 240,431 135,312
Other (5,754) 270 (816) (1,031) (600) 34,544
Total City Expense $1,462,595 $1,490,185 $1,591,204 $1,598,022 $1,336,851 $1,026,757
Annual Change 1.9% 6.8% 0.4% -16.3%
Source: City of Rochester *Partial year through July 2021.
Packet Pg. 36
1.a
System Summary
A summary of performance of City golf courses presented in aggregate for 2016- 2021.

Summary of Performance (2016 – 2021*)
2016 2017 2018 2019 2020 2021*
Rounds 102,527 93,340 93,686 93,473 98,083 85,130
Total City Revenue $1,325,338 $1,304,673 $1,267,457 $1,266,228 $1,340,477 $1,077,719
Less: Direct Expenses
City Labor $885,640 $863,313 $938,562 $947,527 $744,868 $593,248
City Non-Labor $576,955 $626,872 $652,642 $650,495 $591,983 $433,509
City Operating Income (Loss) ($137,257) ($185,512) ($323,747) ($331,794) $3,626 $50,962
Other Revenue Items
Sale or Rental of Real Property $9,054 $18,105 $11,442 $12,600 $15,141 $74,097
Private Sources $5,789 $10,231 $31,039 $2,136 $2,733 $6,937
Other $1,063 $89 $0 $74 $917 $138
Operating Transfer $31,245 $4,308 $4,307 $0 $0 $0
Net after Other Items (Loss) ($90,106) ($152,779) ($276,959) ($316,984) $22,417 $132,134
Source: City of Rochester *Partial year through July 2021.
SYSTEM SUMMARY DISCUSSION

A summary of NGF findings related to the system of four City of Rochester golf facilities and the
current operation program follows below.
• The Rochester system of golf courses includes four well-located and distinct golf
facilities, each with its own unique characteristics and customer following. This mix
allows Rochester to offer public golf to its community with “something for everyone,”
with features to appeal to beginning golfers all the way to seasoned players.
• The City operates its golf courses with a mix of concessions (operations and F&B) and
City-run maintenance. This structure is common in municipal golf and helps shift the
challenge and employment oversight in golf operations to an independent entity. The
City’s economic position in golf is derived from the collection of golf playing fees, and
high-quality customer service helps the City generate these golf revenues, thus it is in
the City’s interest to support its operations contract partners. Recent City cuts to golf
staff has impacted the ability to provide the best possible service to customers.
• The size of the staff employed by the City to operate and maintain the golf courses is
well below industry standards for public golf facility operation. The smaller staff at City
golf courses has impacted both the maintenance condition of the properties, as well as
the ability of senior staff to effectively manage and appropriately market City golf
courses. The City may find that continuing to operate four golf facilities with only seven
(7) full-time staff is not sustainable for the long-term financial health of the system.
• The technology systems in use to support golf facility operations appears insufficient to
maintain optimum economic performance. The POS system is not suitable for public
golf and the City website does not project a marketable image. In addition, the City is
not as active in newer forms of social communication as it could be to help increase
interest in its public golf courses, although some of this shortcoming may be related to
the small golf staff and limited human resources.
Packet Pg. 37
1.a
• The fees charged for golf play at Rochester courses appear appropriate for the market
and place the courses in the upper-middle niche that staff has stated is their desired
position - below the level of premium courses like The Jewel, and higher than courses
like Willow Creek, Oak Summit and Maple Valley. However, City courses have a rigid
internal pricing structure with the same fees at all three 18-hole courses and no
industry-common price segments like weekday/weekend or afternoon twilight. The City
may find that providing some internal segmentation of golf fees will allow for a wider
array of consumer choices for golf in this system.
• More than 2/3 of the golf played in this system is from holders of pre-paid golf pass
arrangements that allow for a single annual fee for all golf played. The result of this
arrangement is that most of the golf being played at City courses is at a severe
discount, leading to a much lower average revenue earned per round. less than $9.00
per round for green fees, and NGF recommends the City continue a program to
increase season pass fees with at least 6.0% annual increases.
• Review of operating data shows Rochester Golf courses falling well below national
public golf facility standards in attracting activity (rounds) and generating revenue.
However, the costs required to provide the service necessary to sustain this revenue
are also much lower than standard, mostly reflective of recent reductions in labor. When
considering the basic on-site operating economics of the four City golf courses, the
NGF finds that the golf system is not capable of covering its expense obligations (if
appropriately managed) and will likely always require some form of subsidy to support
operations. This operating subsidy is likely to be as much as $200,000 to $300,000 per
year, plus additional support for capital improvements.
• The low golf revenue generated by the Rochester City golf courses does not include the
revenue derived from sources like carts (shared), merchandise, driving range (at
EWGC), F&B and other services, all of which currently accrues to the contract vendor.
These contract vendors report total revenue of at least $600,000 in 2021, almost all of
which is used to cover expenses in providing services (and carts) at the four Rochester
golf courses. We note that these revenues were impacted at a much greater level than
the City’s revenue during the Covid pandemic, negatively impacting the earnings of
concessionaires (especially F&B concessions) at Rochester Golf courses.
Packet Pg. 38
1.a
Individual Facilities
The City golf system is made up of four facilities that are proximate to one another, but each in a
separate part of the City. Eastwood and Northern Hills are premier facilities with 18-hole
championship layout, while Soldiers Memorial Field is a shorter-length 18-hole course. Hadley
Creek rounds out the system offering a golf center concept with 9-hole executive course, lower
fees and extensive practice facilities. A summary of each facility is presented as follows:
EASTWOOD GOLF CLUB FACILITY OVERVIEW

Eastwood GC is an important public golf facility with a unique history as an 18-hole championship
public golf course that has been in continued operation for more than 50 years. Since its opening
in 1969, EWGC has gone through several changes and additions, with a clubhouse addition in
1970 and a new back-9 golf course (and maintenance facility) in 2008. This golf facility has
remained popular among local golfers who find the layout appealing and the affordable price a
good match. As growth in activity and revenue is needed at the facility to match increasing
expenses, the City has weighed possible investment in enhancing EWGC so as to attract a wider
golfing contingent, in light of other City fiscal priorities and the market realities at this location. As of
September 2021, the Eastwood GC facility includes the following key components:
• An 18-hole championship golf course on two separate parcels (north and south of
Eastwood Rd. SE) that includes features commonly associated with high-quality public
golf (multiple tees, large greens, bunkers, cart paths, etc.).
• Extensive practice amenities including a driving range with 15-18 hitting stations, range
kiosk, short-game practice area with practice bunker and a practice green, all ideal for
beginning golfers and growing the game in Rochester.
• Full-service 7,600 square foot (sf) clubhouse on two levels (3,800sf each) that includes
a pro shop, restaurant area, restrooms, offices and a small patio.
• 1.0-acre maintenance compound with 7,000sf primary structure for storing maintenance
equipment and housing staff.
• Additional acreage for parking lot and unused open space.
Location, Access and Surrounding Elements

Eastwood GC is located in southeast Rochester, in a section of the City that has seen significant
new development in the last 20 years. The facility is accessed via Town Club Pkwy. SE, which
connects to Highway 14 about ½ mile east of the golf facility entrance and parking. The Minnesota
DOT reports approximately 16,900 autos per day (ADT) on Highway 14 at Town Club Pkwy., and
860 ADT at the EWGC entrance on Town Club Pkwy. This level of activity shows the course is
located in proximity to an active corridor of Rochester. As such, the strong accessibility of the
course that will continue to support demand from all areas of the greater Rochester market.
The arrival experience requires customers to drive through a developing residential area off of
Highway 14, eventually entering the Eastwood driveway. Signage is adequate, but not spectacular
nor does it have any “wow” factor at the entrance. The arrival is awkward, even for golf courses
that are “hidden” in residential areas. This location makes the subject golf course somewhat
remote in Rochester geography, but still convenient and accessible for golfers in the City, a key
factor in improving rounds and revenue at EWGC.
Packet Pg. 39
1.a
Overall, the immediate area surrounding EWGC includes the roadways as noted, and some areas
of residential density in proximity to the facility. The implication for the golf course is that EWGC is
proximate to several key elements that are expected to provide support to the golf course for the
foreseeable future, and the course is convenient enough for the enhanced attraction of tourists and
visitors that will be needed to provide economic support.
Site Positives
• Location: EWGC is in a growing section of Rochester with significant residential
density in proximity to the facility and proximity to Highway 14.
• Site Setting and Features: The site has outstanding natural features, trees waterways
and topography, which leads to positive feedback from golfers and provides a high
degree of inherent potential for golf improvement.
Site Negative
• Logistical Layout and Facility Organization: The golf elements of EWGC are spread
out over two distinct parcels north and south of Eastwood Rd. SE. As a result, golf
course management and oversight can be strained for staff.
• Access: While location is a positive for local Rochester residents, access from a wide
area can be more problematic. The facility does not have direct access or visibility from
the major roadways that provide access to EWGC, which results in a golf course
property that is “kind of hidden” from view. As this facility may need the support of non-
local tourists and visitors, the course location will always require accurate directions
from signage and facility marketing/promotion.
Local Aerial View – Eastwood
Google Earth image showing EWGC and surrounding elements. The view shows the residential community that is growing around the facility
potentially providing market support. The view also shows the close proximity to Highway 14, a major surface arterial for this part of
Rochester and a key support element for future activity growth at EWGC. The view also shows the basic facility logistics and the two 9-hole
parcels split by the Eastwood Rd., which does not have high activity at present but could increase in future years.
Packet Pg. 40
1.a
Championship 18-Hole Golf Course

The Eastwood Golf Club includes an 18-hole golf course with a current configuration that is a mix
of two 9-hole courses developed more than 40-years apart and now feature two distinct design
concepts. The original Eastwood GC was developed in 1969 with all 18 holes and a driving range
located north of Eastwood Rd. (then known as 12th St. SE). This design remained in place until
around 2006+/- when Town Club Pkwy was added along with new residential components on the
westernmost portion of the EWGC. In order to accommodate the new residential units, the
developer constructed a new 9-hole course on the south side of the new roadway to provide the
full complement of 18 holes at EWGC. As a result, the newer 9-hole course (now the back-9) has
modern design features that are not present on the older front-9. This mis-match of 9-hole courses
has led to some variance in demand, as staff reports that patrons seeking top play only nine holes
generally prefer to play the newer back-9.
The resulting combined layout that exists today includes the two parcels as noted, and requires
golfers to cross Eastwood Rd after the front-9 to access the back-9. While this roadway is currently
supporting a light volume of traffic, there are times of the day (early morning and late afternoon)
when “rush hour” traffic has some impact but this is still currently minor. The routing also allows the
golfer to pass by the clubhouse between the 9th and 10th holes (ideal for a public course), although
the upstairs F&B service profile does not allow for ease and convenience for golfers wishing to
purchase snacks or drinks.
Eastwood GC includes all of the basic design elements that are commonly associated with a
regulation-length course that can appeal to a wide variety of golfer skill levels. The original design
included an extensive landscape plan that was used to plant original trees, and many are still on
property today. Other NGF observations on the golf course at EWGC:
• The Eastwood GC scorecard shows a mix of combinations with four tee positions and a
maximum distance of 6,631 yards from the longest (Black) tee. The Black tee shows a
USGA slope rating of 132, which represents that the golf course is much more difficult
than the ‘standard’ slope of 117. The intermediate tees are 6,192 and 5,467 yards
respectively, with a slope rating of 130 and 122 (both still harder than average). The
course provides a good balance of appropriate challenge, but not too much difficulty,
and is a key feature in the course’s popularity, especially for events and tournaments.
• The most forward tee on the course is Red (commonly associated as the “ladies” tee)
can be played at around 4,779 yards, which is comparable to the NGF-recommended
distance of 4,600+/- total yards in length for a forward tee course. This current forward
tee placement makes the course appealing for less-skilled players, thus helping to
widen the appeal of the course.
• The Eastwood course has design features that make it playable for all golfers, such as
a wide variety of hole lengths, modest-sized greens and many bunkers. There are some
holes that include water hazards, but this is not a significant feature of EWGC. There
are some trees on the course and their roots can impact the proper play of golf. In all,
the features in place at EWGC adds greatly to the scenic and challenge appeal of the
course, but also to the difficulty for less-skilled players.
• This golf course is highly marketable in this area given its attractive and challenging
layout and scenic views, although this must include a high-level maintenance standard.
The golf course provides enough challenging and unique features to add to its overall
appeal and provides a unique golf experience proposition that can be marketed by the
City through photos on the website and in print advertising and brochures, etc.
Packet Pg. 41
1.a
• EWGC has no on-course restrooms or comfort stations on either 9-hole course, and
restroom access is currently provided by “port-a-potties” on each side of the course.
• Cart and walking access to the 12th hole is provided via narrow cart tunnel that is only
wide enough to support cart traffic in one direction. As this tunnel is also the only way
for golfers to access the clubhouse after the 18th hole, there may be some challenge for
golfers to “self-police” access all parts of the golf course on crowded days (although
staff reports this is rare). Some walking golfers have opted to use the grass area over
the tunnel to avoid walking through the narrow corridor.
Overall, it is expected that this golf course will be attractive to skilled golfers, intermediate players
and beginners. A program of high-quality maintenance that will provide outstanding conditions
(including some down time for applications) is also assumed. Even with its uneven configuration of
two distinct 9-hole courses, the EWGC golf course is clearly in the upper-middle range of golf
courses in Rochester, providing services clearly superior to lower-fee facilities and potentially
comparable to the level of the highest fee golf facilities (more in market analysis section).
Eastwood GC Clubhouse
The Eastwood GC clubhouse includes a two-story structure with approximately 7,800 sf of floor
space that was constructed in 1970 just after the original golf facility development. The building is
relatively small for an 18-hole facility, and is laid out with basic logistics that are not efficient for a
modern public golf course support facility. The smaller size is critical in that this facility could be an
attractive venue for larger events and tournaments, but limited clubhouse space may restrict the
appeal of EWGC. The two-story design with all F&B service on the upper level also diminishes the
facility logistics to support an 18-hole golf course. The building has a good appearance, but its age
and period-design are evident (more below in condition report). Although there are basic building
logistical deficiencies, the EWGC clubhouse contains the basic features that are commonly
associated with successful golf facilities, including:
• Entry Presentation and Restrooms - The EWGC has a dated entry presentation with
an initial stairway leading to all F&B services on the upper level and the pro shop and
restrooms on the lower level. There is one men’s and one ladies’ restroom on the lower
level. These restrooms appeared to be in less-than-ideal condition with limited size and
number of stalls, although they were appropriately maintained.
• Pro Shop – The pro shop area includes a small area for retail space, offices, storage
and the main check-in counter. This space appeared functional and efficient, with a
modest inventory of goods for sale. The pro shop location is good, with proximity to the
main entrance, grille area and cart staging area that is just outside the door.
• Food and Beverage Service Area - The service area for F&B is of small size, with
seating for about 50+/- patrons inside the bar and grille area. The Bar area includes
walk-up service and a small outside patio overlooking the golf course. Overall, the
space is adequate with a nice appearance, but its age is apparent in several issues of
concern (more below). The space is accessed via the main entrance stairway and a
back door to the patio and an additional outside stairway back to ground level.
• Kitchen Space - The EWGC clubhouse has a small kitchen (about 300sf), but there is
enough space to provide adequate F&B service for most days except only the busiest
days and large events. Still, the kitchen space available limits the size of parties that
can be adequately served at EWGC. Most of the kitchen equipment (freezers, ice-
maker, dishwasher, stove, grill, etc.) are in need of upgrade, and will likely require
replacement in the next few years.
Packet Pg. 42
1.a
• Pro’s Office – The office for the golf pro is adjacent to the pro shop with a window to
view activity. There is additional unused space in this area, but the condition limits
potential uses.
The above-noted clubhouse program includes the elements commonly associated with successful
public golf courses, but the small size and aging infrastructure suggest upgrade is needed and
would be beneficial to the City. NGF has documented that food and beverage operations that allow
for both day-to-day service for golfers (and others), but also accommodate banquets and parties
can produce stronger revenues. It is clear that the clubhouse operation at EWGC is a key
weakness for the facility and improvement in space and quality could provide a better opportunity
to enhance total earned revenue at EWGC. More to address the condition of the building is
presented later in this section.
Driving Range / Practice Amenities

The facility has a small practice range with about 260-yards in length, and is protected by a large
grouping of trees to keep the range separate from golf hole #6 on the course. The range tee is
±170 feet in width. At recommended 10-foot spacing, the range accommodates ±17 users. There
are three practice greens, including one to the east that is used for short game practice (has a
practice bunker), and two additional primary practice greens immediately outside the western view
of the clubhouse.
This concept of golf practice amenities has proven to be very successful in public golf and can be a
key support for both direct (fees generated from patrons) and indirect (helps to sell facility and train
new customers) revenue. As such, it is assumed that additional features and amenities that
correlate to success in this area will be present, such as high-quality hitting surface with daily tee-
line changes, high quality golf balls and convenient access to range balls (through automated
“swipe card” or “key” system). Industry “standards” suggest that on-course driving ranges average
around $1.50 to $2.00 per round in revenue (would currently accrue to the golf professional).
Eastwood GC – Condition of Facilities

The many components that make up the Eastwood GC facility showed some areas of concern
during the Summer 2021 evaluation by NGF, the most significant of which is the condition of the
clubhouse. The business plan going forward assumes that high quality is maintained so the overall
facility has a match of value between the facility quality and the price being charged. The NGF
review of key infrastructure challenges and capital investment considerations for EWGC (with input
from EWGC staff) is documented in this section. The primary areas of NGF review for the City
include the following elements:
Golf Course Playing Area

In reviewing the EWGC golf course playing area, the NGF team understands that golf course
conditioning will impact the perception of the course for all customers. Costs to maintain conditions
at a high-quality level can be high, and for many courses, unaffordable. Given the infrastructure
and available resources, it appears to NGF that the level of golf course conditioning at EWGC is
outstanding, especially when considering the small size of the staff. Specific golf course
components were reviewed as follows:
• Greens: The existing greens show the mix between old and new development, with the
smaller greens on the front-9 (avg. 4,500-5,000 sf in size), and the larger and more
diverse back-9 greens (avg. 6,800-7,200 sf). The front-9 greens are older “push-up”
style greens that date to 1969, while the back-9 has greens designed to USGA
specifications. While the back-9 greens are now about 12 years old, the front-9 greens
Packet Pg. 43
1.a
are over 52 years old (see Appendix E). The greens appear to be well-managed by
staff and provide a smooth rolling surface for golfers on both 9’s. Staff manages this turf
very well with annual aerification, topdressing and monitoring to catch any disease or
problem areas quickly. EWGC greens are as good or better than any other local area
competitors observed by NGF, even those commanding higher playing fees.
Eastwood GC would benefit from having consistent green surfaces between the two 9
holes, but this is not deemed an urgent need for the facility. Staff reports some intrusion
of crabgrass on the front-9 greens, but this is a maintenance issue and can be
addressed with more attention and larger staff. In all, the NGF does not see the
greens at EWGC to be a major deficiency that is in need of any large-scale capital
improvement at this time.
Images of selected greens at EWGC showing the smaller front-9 green (L) and a much larger green from the back-9 (R). These
greens were in excellent condition during the NGF site visit and create a real marketing strength for the EWGC facility.
• General Turf (Fairways, Roughs and Green Fringes/Approaches): Overall turf

conditions were very good during the NGF site visit, in part a result of recent rainfall.
The quality of turf at EWGC is a real strength for this facility and conditions are clearly
superior to the immediate competition. As such, NGF does not see major
improvements to golf course playing turf on either the back-9 or front-9 to be a
high priority at this time.
• Tees: Tees are of adequate size on most holes, except some par-3 holes where irons
are used appear to be too small to allow for turf recovery. Nearly all tees are crowned
(un-level with high spots in the center), which is a sign of age where tees are top-
dressed with sand and have not been adequately leveled every few years. Staff does
their best to keep up with tee leveling and has taken on some specific tee work, even
though this is best left to a qualified golf builder (contractor). Large-scale capital
investment in tee improvements does not appear to be a high priority for new capital
investment at EWGC at this time.
• Bunkers: There are 30 total sand bunkers on the golf course, with only 8 on the front-9
and 22 on the back-9. The front-9 bunkers are generally simple design with only one
hole (#3) having more than one bunker. The back-9 bunkers are more varied and
modern, both in size and shape. There are two large bunkers on the back-9, including
one very large bunker on hole #15 that starts about 60-yards short and wraps all the
way around the back of the large green. These large bunkers create a challenge for
maintenance as ideally bunkers should be raked and smoothed daily, but given the
limited staff size and several large bunkers, this activity is often reduced. Overall,
Packet Pg. 44
1.a
bunkers appear to be too large and undertaking a bunker renovation project to address
the size, as well as drainage, edges and depths would be beneficial to the facility.
Proper drainage is another issue facing staff in bunker maintenance. Poor drainage
exasperates poor sand condition (consistency, ability to drain, etc.), as some bunkers
have standing water after rains or even daily irrigation. Another issue is the use of
mechanical rakes (Sand Pro, ride-on machines). These vehicles cause edge
deterioration, and over time the bunkers become a “mixing pot” of sand, soils and silts
as opposed to pure sand.
Images of selected bunkers showing the drainage problems noted above. These issues require a labor-intensive need for detail
maintenance of sand and the grass edges surrounding each bunker.
• Trees: The property contains many majestic trees that add character and provide a
pleasing appearance of tree-lined fairways, especially on the older front-9. The primary
issue with existing trees relates to continued growth and expanding tree canopies and
enlarged root systems. These can impact the play of golf and should be managed on an
ongoing basis. Staff reports issues with some larger trees that appear to be nearing
their expected life span. The City should develop a formal program for removal,
replacement and pruning, and arrive at a palette of tree varieties to use going forward.
Packet Pg. 45
1.a
Images showing the hole corridors on the front-9 (top row) and back-9 (bottom row) detailing the vast difference in course style
between the two nines. The narrow corridors on the front-9 add to the challenge of the course, but also require an ongoing
maintenance and trimming of trees to prevent further narrowing.
Irrigation System
The irrigation system is a “mission critical” support item for any golf course. The existing irrigation
system consists of two systems: A modern system added in 2008 that covers the back-9; and the
older system on the front-9 installed in 1969. The water source for irrigation at Eastwood GC is
water collected in ponds on site and distributed around the course, with City water (potable) as the
backup. The two primary components of the irrigation system include:
• Above ground components such as controllers, switch boxes and sprinkler heads; and
• Below ground components such piping, laterals and wiring.
All above-ground components at EWGC are new to 2008 as part of the new back-9 development,
but the below ground irrigation infrastructure on the front-9 is still from 1969. Staff reports that the
pump station near the pond on the south side of Eastwood Rd is in need of an update due to aging
parts and an inability to find replacements.
In considering capital investment for irrigation at EWGC, the City should begin planning for an
eventual replacement of the below-ground infrastructure on the front-9 for some time in the next 5-
7 years, and plan for pump station upgrades in the next 1-2 years as per NGF capital
recommendations.
Drainage
There are several low-lying areas on Eastwood GC that tend to pool water and other hillside areas
that can be impacted after rainy periods. Staff reports that this problem is most severe on the back-
9 holes, with a major problem reported in the winter of 2015-16 when an entire hillside collapsed
requiring a full rebuild of the golf hole. While this issue has been repaired, other areas are
vulnerable to additional repair requirements from heavy rain or snow. This course would definitely
benefit from drainage improvements that could increase the number of playable days and thus
rounds played capacity, ultimately leading to increases in rounds and revenue. However, specific
capital investment options are limited and this is something that should be monitored by the City
with consideration given to infrequent drainage enhancement projects.
Maintenance Facility and Equipment
The maintenance facility at EWGC includes a defined compound and a main building to house
equipment, all of which was developed in 2008 and is the newest and in the best condition in the
Rochester system. This facility is important to the system, as EWGC’s maintenance building has
Packet Pg. 46
1.a
the only lift station and reel grinder equipment in the golf system for use in repairing and
maintaining golf maintenance equipment.
The equipment needed to maintain EWGC golf course playing area is purchased by the City in an
ongoing annual capital outlay. The NGF team did not observe any specific concerns related to golf
maintenance equipment and the team finds this ongoing acquisition arrangement is providing the
best possible equipment to properly maintain EWGC. The overall maintenance building and yard
are in good shape with no capital investment requirements other than ongoing maintenance
equipment purchases.
Clubhouse
The clubhouse facility at EWGC has reached its life expectancy and is very much in need of
replacement. Issues observed by the NGF team include un-level floors, failing masonry, roof leaks,
electrical problems and limited space. While recent upgrades to interior finishes have covered up
some of the building’s flaws, the problems with the structure still remain. In many ways, we can say
that the building has served its purpose for 51 years and the needs of a public golf clubhouse have
expanded beyond what this EWGC facility can provide in its program configuration. It is
recommended that the existing building be replaced to better accommodate the needs of today’s
golf consumer and possibly add to the revenue potential of EWGC.
Images showing various interior issues at EWGC clubhouse including surface cracking, interior drainage and electrical problems.
The cost to properly repair, and correct the existing building to sustain a long-term use would be
counterproductive as some corrections (most notably the size and configuration) that are needed
could not be addressed with repairs. It is the opinion of the NGF team that the existing EWGC
Packet Pg. 47
1.a
clubhouse be replaced in its entirety, with a new clubhouse comparable in size and function to the
new clubhouse recently added at Northern Hills GC (more later in this report). This solution would
also allow for the current parking lot to be continued and allow for the new clubhouse to be situated
in the same location as today.
Eastwood GC Capital Investment Considerations (2022-2026)

In order to maintain the highest quality golf facility offering, Eastwood GC requires some upgrades
to its clubhouse building, along with other basic infrastructure (irrigation, drainage, bunkers, trees).
We note that the most significant project for EWGC is the development of a new clubhouse, which
will include both the development of a new building and a change in program offering. We note that
the dollar costs estimated by NGF are intended to be rough “ballpark” estimates and that more
comprehensive cost bids should be obtained before undertaking completion. A summary of
clubhouse and golf course investments is noted below:
Clubhouse Investment Considerations

The proposal to add a new clubhouse at Eastwood GC involves two main components – building a
new structure and modifying the program being offered. The NGF team has addressed these
issues along with an estimated cost below:
• Future Clubhouse Building Considerations - The clubhouse building footprint should

be at least ±10,000sf with ample patio and outdoor areas to provide strong golf views.
The sequence for construction of this new proposed clubhouse may require use of a
temporary clubhouse for use during the demolition of the old and construction of the
new clubhouse. The primary program of elements for the new clubhouse would include:
*Golf shop w/ control desk *F&B storage *M & W restrooms (no locker rooms)
*Two (2) offices *Mechanical/electrical room *Covered outdoor patio
*Dining room *Bar *Club repair area
*Kitchen *General storage *Meeting / Event space (up to 150)
• NGF Estimated Cost = a total of $1.545 to $1.865 million, as summarized below:

o Planning/Architecture/Fees ($25,000 - $35,000)
o 12-18 Mo. Temporary Clubhouse ($100,000 - $150,000)
o Existing CH Demolition ($20,000 - $30,000)
o New ±9,000sf Clubhouse @ $150-$175/sf ($1,350,000 - $1,575,000)
o New site Landscaping/parking paving ($50,000 - $75,000)
Golf Course Investment Considerations
The enhancements to the golf course playing area include several key projects, listed below in
order of importance and with NGF estimated cost:
• Property Master Plan: Working with qualified golf and structures architect to plan for
property changes to accommodate a new clubhouse and address any needed golf
course changes. NGF estimated cost = $25,000 to $40,000 (lump sum).
• Irrigation / Pump Station Improvements: Complete upgrade to the existing irrigation
pump station currently in place. NGF estimated cost = $20,000 to $30,000 (lump sum
– cost assumes 2021 inputs).
Packet Pg. 48
1.a
• Bunkers: Renovation of the 30 bunkers on the 18-hole course should be implemented

to address concerns related to size and drainage as noted above. NGF estimated cost
= $120,000 to $150,000 (30 bunkers @ $4,000-$5,000/bunker).
• Tree Trimming/Thinning: Trimming large trees and removing selected trees is a
priority for EWGC. NGF estimated cost = $50,000 to $100,000 (Lump sum).
• Equipment Program: Replacement of aging and outdated maintenance equipment at
$20,000-$30,000 per year over the next five years. NGF estimated cost = $100,000 to
$150,000 (lump sum).
Eastwood GC
Recommended Upgrades – in Priority Order
High Priority Capital Investments Inputs Low Estimate High Estimate

Property Master Plan Lump sum for golf and site planning $25,000 $40,000
Costs includes planning, architect,
Clubhouse Replacement temp. CH, demo, New CH 9,000sf @ 1,545,000 1,865,000
$150 - $175/sf and landscaping
Irrigation Pump Station Improvements Lump sum 20,000 30,000
Bunker Enhancement & Reduction 30 bunkers @ $4,000-$5,000/bunker 120,000 150,000
Tree Trimming/Thinning Lump Sum 50,000 100,000
Equipment Program Lump Sum 100,000 150,000
Grand Total of Capital Projects $1,860,000 $2,335,000
All figures are NGF estimates based on other similar projects completed in the last 3 years that have been provided to allow for preliminary planning. These
amounts may or may not reflect actual costs for City of Rochester, and the City should engage appropriate research to cost out specific projects. sf=
Square Feet.
Unique Considerations for Eastwood GC

While Eastwood GC is part of the City’s four-facility system, there are some operating
considerations that are unique to this facility, including:
• Separate Parcels – EWGC encompasses two separate parcels of property for its front-
9 and back-9 courses. As such, there are additional challenges for this operation:
o Pro Shop Oversight – The entire back-9 is not visible form the clubhouse
adding challenge to oversight and course marshalling.
o Customer Demand – the back-9 is newer and thus more desirable for many
customers seeking to play only nine holes. This demand must be managed and
balanced between 9-hole only and 18-hole players.
o Cart Path Logistics – The back-9 has different cart path characteristics and
requires golfers to cross a busy street and use a tunnel that is only wide enough
for one direction to pass at a time.
o Golf Course Maintenance – the two parcels are vastly different in age and thus
require different maintenance priorities that must be considered by senior
maintenance staff.
• Clubhouse – The older clubhouse requires that the City keep up with maintenance and
repairs to ensure the facility remains functional and ensures patron safety.
Packet Pg. 49
1.a
• Maintenance Facility – EWGC has the newest maintenance facility in the system, and
is the only location with a lift-station that is often needed for equipment repair.
• Tournaments & Events – EWGC could host more large events and tournaments, but
the small clubhouse is limiting this demand. Larger events can only be accommodated
using a tent to support after event gatherings and F&B service.
Facility Performance and Data Analysis

Eastwood GC is a public golf course generating direct City revenue from golf playing fees (green +
cart fees), along with some additional ancillary income earned by the contracted golf professional
and F&B concessionaire. The following summarizes the facility’s activity (rounds), revenue and
expense required to service customers and maintain the amenities.
Revenue and Expense Analysis

The table below summarizes Eastwood’s performance since 2016 from the City’s perspective. We
note that other ancillary revenue (F&B, Pro Shop, Lessons, etc.) is not included in this table, nor
are the pro shop operating expenses associated with these revenues (belong to contract Golf Pro).
Operationally, Eastwood has not traditionally generated positive income for the City, although this
is not a completely true picture of the facility’s economics given that all membership revenue is
recorded as “Admin” and EWGC hosts about 31% of total member rounds in the system. This
would equate to additional $156,400+/- in revenue to EWGC if the membership revenue were
allocated to each facility.
Eastwood GC
Summary of Operations – 2016-2020
Revenue 2016 2017 2018 2019 2020 Avg '16-20
Reg. Green Fees $136,988 $134,087 $128,594 $123,017 $144,662 $133,470
Cart Use Fee 4,950 4,250 5,225 3,850 3,850 4,425
Golf Pro Commissions 30,417 29,893 28,755 27,708 33,489 30,052
Total Revenue $191,716 $179,645 $183,213 $174,683 $202,411 $186,334
Annual Change -6.3% 2.0% -4.7% 15.9%
Total Revenue per Round $6.56 $6.48 $6.33 $6.15 $7.31 $6.56
Operating Expenses
Utilities 46,827 47,223 43,384 41,670 49,445 45,710
Adv., Pub & Print 0 973 1,471 0 1,256 740
Other (1,563) 75 75 (41) 310 (229)
Total City Expense $486,142 $410,669 $436,104 $450,403 $439,689 $444,601
Operating Income (Loss) ($294,426) ($231,024) ($252,891) ($275,720) ($237,278) ($258,268)

Source: City of Rochester Parks & Recreation Department
Packet Pg. 50
1.a
Activity Levels
The table below shows reported rounds activity at Eastwood GC since 2016. Annual play at
Eastwood has ranged between about 27,700 rounds in 2017 to 29,200 rounds in 2016 (average
was 28,400 from 2016-2020). Activity in the eight months of 2021 show the rounds total on pace to
meet or exceed the 2020 rounds level. Over the years shown, the split of activity between pass
holders and daily fee players has been generally consistent, peaking at 72.5% passholder play in
2018 and never falling below 69%. A summary of rounds at EWGC is shown below:
Eastwood GC
Total Annual Rounds (2016-2021*)
Eastwood GC 2016 2017 2018 2019 2020 2021*
Green Fee Rounds 9,086 8,465 7,977 7,865 8,608 7,042
Season Pass Rounds 20,153 19,244 20,987 20,534 19,076 15,736
Total Rounds 29,239 27,709 28,964 28,399 27,684 22,778
% Change vs Prior Year -5.2% 4.5% -2.0% -2.5%
*Through August 2021. Source: City of Rochester Parks & Recreation Department
Concession Revenue at EWGC

The table below shows ancillary revenue earned by contracted golf professional at EWGC in 2020,
along with direct golf professional expenses. The data shows that EWGC is generating an
additional $202,600+ in total revenue from patrons during FY2021, or $7.32 per round of golf. The
operating vendor also has direct expenses to support these revenues and to provide basic
customer support for the City’s operation.
Eastwood Golf Course

Summary of Golf Pro Revenue & Expense (2020-2021*)
Golf Pro Revenue 2020 2021*
Golf Shop $40,960 $48,300
Carts 123,955 146,200
Other 6,858 8,000
Total Golf Pro Revenue at EWGC $202,642 $240,000
Golf Pro Expense
Cost of Sales $44,197 $52,100
Operating Expense 20,223 23,000
Carts 40,592 46,700
Other 7,426 8,000
Total Golf Pro Expense at EWGC $127,184 $146,700
*Pro’s projection for full 2021
In addition to the revenue generated by pro concession items at EWGC, the facility is also
generating revenue for the on-site F&B operator – Eastwood Grill, LLC. This entity is reporting a
total of $63,200 (rounded) in total gross receipts from food and beverage items at the facility. This
equates to $2.28 per round of golf. All expenses associated with the F&B service at EWGC is
derived from this revenue and does not accrue to the City.
Packet Pg. 51
1.a

In summary, the total revenue generated per round at Eastwood includes items spread out among
three entities – the City, the golf professional and the F&B vendor. The NGF review of these items
shows the total facility earned revenue per round in the table below, along with a comparison to
national standards for public golf courses. The total facility-wide average revenue per round was
$22.57 in 2020. The NGF average for public golf courses in the U.S. was $38.71 for total revenue
per round, with $29.81 from golf playing fees (green, cart, membership), plus an additional $4.65
for F&B, $2.71 for merchandise and $1.54 for other (range, instruction, etc.) for a total of $38.71
per round. Eastwood GC is earning much lower revenue per round in all segments, with only
driving range revenue approaching the norms. The actual 2020 average revenue per round
compared to standards shown below:
EWGC in Generally Accepted

Year
2020 U.S. Average
Rounds 27,684 31,500 (per 18-H)
Green + Passes (City Rev.) $12.96
$29.81
Cart Revenue (Split w/ Pro + City) $4.48
Golf Shop Merchandise $1.48 $2.71
Food & Beverage $2.28 $4.65
Driving Range $1.12 $1.50
Other (lessons & other rentals) $0.25 $0.04
Total $22.57 $38.71
Summary – Eastwood GC
Eastwood GC is a 50-year-old golf facility that is providing the premier golf experience in the
Rochester system. With its newer back-9 (and maintenance facility) added in 2008, the course now
has a mix of a much older front-9 and newer back-9. This provides for a different playing
experience for golfers, but also adds challenge to the City in maintaining the property, as some
front-9 elements of the golf course are nearing the end of their expected useful life, including the
irrigation system. The clubhouse is also original to 1971 and has condition and infrastructure
issues that will need to be addressed in the coming years, possibly even requiring the full
replacement that would also enable the City to expand the marketability of EWGC. With a more
challenging course and nice site topography, Eastwood tends to attract better golfers (and
conversely, is less popular with some senior golfers who prefer to play at Soldiers Field GC). The
course is in outstanding condition, which is important to maintain its place in the market. Other
findings from NGF’s review of the Eastwood GC:
• Eastwood GC is a good-quality 18-hole golf course that is popular with Rochester area
golfers. This popularity is derived from the facility providing a regulation-length golf
course that offers the best golf challenge in the system at an affordable rate.
• The EWGC location has mixed attributes for the City: (1) the property is proximate to
local residences filled with golfers; but (2) the property is not visible to the general
public from major roadways and may be a little harder to find for golfers not familiar with
the location, thus requiring good directions always be included in marketing.
Packet Pg. 52
1.a
• EWGC shows a mix of property conditions, with a generally well-maintained golf course
with good greens, but with aging infrastructure on the front-9. The most significant
component that is clearly showing this age is the clubhouse, which is adding economic
challenge to the City operation. The City will find that this challenge will be very
expensive to overcome (likely over $1.5 million), but its replacement may be “mission
critical” to continue and grow golf at this location.
• Some other aspects of the EWGC property will also need enhancement (irrigation,
bunkers, trees and equipment), likely bringing the needed investment total to between
$1.8 and $2.4 million. Other than the clubhouse and irrigation improvements, the other
facility upgrades are less urgent and can be completed over time as funding allows.
• EWGC showed strong performance in 2020, with just over 27,600 total rounds hosted
generating over $202,400 in direct City revenue. The rounds and revenue for 2021 are
expected to finish higher than 2020, clearly benefitting from the recent surge in golf
demand. In addition, the pro shop and F&B vendors generated an additional $265,000+
in revenue from ancillary sales in 2020, reaching as high as $300,000 in 2021.
• Eastwood has the highest expense structure in the City golf system, largely due to the
larger maintenance staff to maintain conditions and the presence of senior staff being
stationed at this location. The revenue generated on-site at EWGC, coupled with its
share of City-wide season pass revenue, is likely not sufficient to cover all required
operating expenses and fund the capital upgrades that will be needed to sustain this
facility as a properly functioning golf facility.
Packet Pg. 53
1.a
NORTHERN HILLS GOLF COURSE FACILITY OVERVIEW

Northern Hills GC is the City’s municipal golf course located in the growing northwestern part of the
City. The course was opened in 1976 and now includes a brand-new clubhouse that was added in
late 2019. While this facility is not the most active in the system, NHGC has seen the most growth
in activity since 2018, with an especially strong 2020 after the addition of the new clubhouse. With
the recent City investment in the new clubhouse and generally strong golf course conditions, the
future improvements to NHGC will center on improving basic maintenance support infrastructure,
like enhanced drainage and improvements to the maintenance facilities. As of September 2021,
the Northern Hills GC facility includes the following key components:
• An 18-hole championship golf course with three sets of tees and other features
commonly associated with high-quality public golf (interesting topography, wide
fairways, simple greens, few water hazards, bunkers, cart paths, etc.).
• Large driving range with 25+/- hitting stations, automated ball dispenser, several
practice greens and practice chipping area, all ideal for beginning golfers and growing
the game in Rochester.
• Full-service 10,000 square foot (sf) clubhouse that includes a pro shop, restaurant area,
restrooms, offices and a small patio.
• Four separate maintenance buildings used for storing maintenance equipment and
housing staff.

The golf course is located in northwest Rochester, in the most rapidly growing section of the City
that is presently undergoing significant new residential development in immediate proximity to the
golf course. The facility is accessed directly via W. Circle Dr, a major loop roadway that circles
Rochester and connects to Highway 52 about one-mile east of the golf facility entrance and
parking. The Minnesota DOT reports approximately 20,700 autos per day (ADT) on W. Circle Dr
NW at the entrance to Northern Hills, and 14,800 ADT on 55th St NW at the Highway 52
interchange. This level of activity shows that NHGC is also located in proximity to an active and
growing corridor for this part of Rochester, providing for strong accessibility to the course that will
help provide support for growing golf demand.
The arrival experience includes a median cut for customers travelling in either direction on W.
Circle Dr., followed by a long entrance road in, past the driving range, and to a small parking lot.
Signage is probably the best in the Rochester system with a large entrance sign that is clearly
visible from W. Circle Dr. This location and access profile makes the subject golf course the most
convenient in the system, a key factor in improving rounds and revenue at NHGC.
The immediate area surrounding NHGC includes the roadways as noted, and some areas of
residential growth in proximity to the facility. Large new developments in (or near) Highland
Preserve and the Pines of Rochester that are under development in wooded areas immediately
south and west of the golf course, impacting both the market potential and physical condition of the
facility. The implication for the golf course is that NHGC is proximate to a high growth corridor in
Rochester, and is also convenient enough for the enhanced attraction of tourists and visitors that
will be needed to provide economic support.
Packet Pg. 54
1.a
Site Positives
• Location: NHGC is in a rapidly growing section of Rochester with significant residential
growth in immediate proximity to the facility.
• Access: In addition to local growth, NHGC is located with direct access to, and visibility
from, from the major roadways that provide access to the property. This combination of
access and visibility tend to correlate well with economic success at public golf courses.
As Rochester golf courses will need the support of non-local golfers, NHGC is best
equipped to handle this potential demand.
• Site Setting and Features: The site has outstanding natural features, trees,
topography and appealing greenery. The appealing scenery leads to positive feedback
and provides inherent potential for economic improvement.
Site Negative
• Topography: The negative aspect of the NHGC site relates to topography and
drainage, with several low-lying sections in key areas of the golf course design. In
addition, the golf course serves as a drainage corridor for the new housing that is being
added on property adjacent to the golf course.
• Site: With about 130 total acres, this facility is just large enough to support the existing
18-hole golf course but limits modification options for expanding practice amenities
(driving range), adding new parking and siting a new or expanded golf maintenance
compound.
Local Aerial View – Northern Hills
Google Earth image showing NHGC and surrounding elements. The view is from 2019 and is already out-of-date with development
underway in areas just south and west of the golf course that is not shown in this view (also view has old clubhouse). Still, this image shows
both the high density of residential development in the immediate area around NHGC, as well as the large commercial activity associated
with Highway 52 that is also in close proximity.
Packet Pg. 55
1.a
Championship 18-Hole Golf Course

The Northern Hills Golf Course includes an 18-hole golf course featuring a traditional design with
holes #1 and #10 tees, and #9 and #18 greens all located at a high point near the clubhouse. The
remaining golf course routes through the property with several holes bunched together in various
higher-elevated and lower-elevated parts of the property. The original Northern Hills GC was
developed in 1976, and retains almost all of its original design characteristics and infrastructure.
Northern Hills GC includes all of the basic design elements that are commonly associated with a
regulation-length course that can appeal to a wide variety of golfer skill levels. The course is not
too long for less-skilled players, yet is long enough to challenge serious golf players. Despite its
appealing topography, NHGC is still very popular with golfers who prefer to walk the course rather
than take a powered cart. Other NGF observations on the golf course at NHGC:
• The Northern Hills GC scorecard shows a mix of combinations with three tee positions
and a maximum distance of 6,271 yards from the longest (Blue) tee. The Blue tee
shows a USGA slope rating of 130, which represents that the golf course is more
difficult than the ‘standard’ slope of 117 (but less difficult than EWGC). The intermediate
tee (White) is 5,931, with a slope rating of 127 (harder than average). The course
provides a good balance of challenge and aesthetics, without too much difficulty, and is
a key feature in the course’s popularity.
• The most forward tee on the course is Red (commonly associated as the “ladies” tee)
can be played at around 5,253 yards, which is longer than the NGF-recommended
distance of around 4,600 total yards in length for a forward tee course. This current
forward tee placement makes the course more difficult for less-skilled players, and a
new more forward tee of shorter distance should be considered to help enhance appeal
to a wider segment.
• The Northern Hills course has design features that are common in successful public
golf courses, including clearly defined golf holes, middle-sized round greens (avg. 6,500
sf), a wide variety of hole lengths and 34 bunkers (evenly divided between front and
back 9). The creek and two ponds on property provide water hazards that come into
play on the majority of golf holes, and this is a significant feature of NHGC. There are
some smaller trees on the course to divide and frame golf holes, but this is also not a
significant feature of this golf course. In all, the features in place at NHGC adds greatly
to the scenic and challenge appeal of the course, and are not too difficult for most
golfers.
• This golf course is marketable as a simple-designed public golf course that has scenic
views and is easy to play and easy to walk. The golf course provides enough
challenging and unique features to add to its overall appeal and will also provide the
City with a unique golf experience proposition that can be marketed by through photos
on the website and in print advertising and brochures, etc.
• NHGC has no on-course restrooms or comfort stations on either 9-hole course, and
restroom access is currently provided by “port-a-potties” on each side of the course.
• The creek that runs through the property requires four primary bridges for golfers and
maintenance personnel to use to access all areas of the golf course.
Northern Hills GC has all of the elements to provide a successful public golf facility for the City of
Rochester. Together with its newer clubhouse, the golf course has strong appeal with its pleasant
setting and simplistic golf course design. Like all golf facilities of this type, high quality maintenance
Packet Pg. 56
1.a
to provide outstanding conditions is part of the program for success at this (and other) City golf
locations. While the design is not among the best in the region, the condition of the golf course and
scenic profile place NHGC in the upper-middle range of golf courses in Rochester, providing
services clearly superior to lower-fee facilities and potentially comparable to the level of the highest
fee golf facilities (more in market analysis section).
Northern Hills GC Clubhouse

The Northern Hills GC clubhouse is a newer structure that was added in late 2019 at a total cost to
the City of just over $1.1 million. The facility is a one-level structure with approximately 9,000+/- sq.
ft. of floor space, and provides all appropriate amenities and logistics to properly support a good-
quality 18-hole public golf course. Although the facility is brand new, there are some minor
logistical deficiencies that are uncorrectable and could impact the ultimate facility revenue
potential. The components and identified weaknesses are noted below:
• Elements Included - The NHGC is divided into three primary sections: (1) a pro
shop/check in area; (2) a central hallway with restrooms; and (3) a food/beverage
service area with bar and café space. The space is well organized with convenient entry
from the parking area and/or the golf course. As this is a new facility, all elements and
customer interfaces were clean and in outstanding condition.
• F&B Service Area - The service area includes a large bar with several TVs, café-style
seating with multiple tables and ample space for over 100 patrons. The service area
has an open floor plan and side doors that open to a small outdoor patio that has
become popular in the first year of operation. This set-up is ideal for hosting large golf
events (144 players is a full event) and even some moderate-sized non-golf parties and
banquets. This space should be a centerpiece of the facility going forward and a key
piece in marketing Northern Hills and Rochester golf in general.
Images showing the F&B service elements that correspond to economic success at public golf courses. The large bar area is ideal
for gathering after golf, a pleasant (but small) outdoor gathering area and open floor-plan to host large events and parties.
• Limited Space - The new clubhouse was added with a design that did not provide for
adequate storage space. The greatest impact of this is to the F&B operation, where
both cold and dry storage is limited, thus restraining the menu possibilities due to
inability to store needed ingredients. The small space also limits the ability to store extra
chairs and tables, plus there is no space to provide for an adequate golf club repair or
service business. As such, the City should expect that this facility will always require
some form of external storage capacities to meet all requirements.
Packet Pg. 57
1.a
Images showing the limited storage capacities of the new clubhouse at NHGC. As such, external storage will always be required
to support proper F&B operations at this location.
Driving Range / Practice Amenities

The facility has a modest-sized practice range with about 300-yards in length, but is separate from
the main parking and clubhouse area by about 250 yards. This makes the range somewhat
isolated and less convenient, although there is a small parking lot that golfers can use to park golf
carts for driving range use. There is an automated range ball system located at the range tee area
that can be used with tokens obtained in the pro shop. It is a labor challenge for the course to keep
the range ball machine filled with balls at all times. The range tee is ±250 feet in width, and so
about 25 golfers can be accommodated at any one time (assumes 10-foot spacing). There are
three practice greens, including two at the range area (including one with a practice bunker) and
one close the clubhouse.
Northern Hills GC – Condition of Facilities

The many components that make up the Northern Hills GC facility were in mostly good condition
during the Summer 2021 evaluation by NGF, with only a few noted deficiencies that could lead to a
capital commitment by the City. As with EWGC, the plan going forward assumes that high quality
is maintained so the overall facility has a match of value between quality and price. The NGF
review of key infrastructure challenges and capital investment considerations for NHGC (with input
from NHGC staff) is documented in this section. The primary areas of NGF review for the City
include the following elements:
• Greens: The existing greens were in good condition during the NGF review in
September 2021. City staff did not report any concerns related to the NHGC greens,
and the City should assume that upgrade or replacement to more modern greens with
fresh turf will not be required in the next five years.
• Tees: Tees are of adequate size and in good condition, except some par-3 holes where
irons are used appear to be too small to allow for full turf recovery. In addition to
continued repair of damaged tee surfaces, the City should consider adding a new
forward tee to most holes so that the golf course has a shorter forward tee yardage of
±4,500+/- yards. Today, 4,500 yards is considered an ideal yardage to provide better
playing options for beginners, youth and elder players. Women players also benefit
from shorter yardage as swing speeds for female players are statistically slower than for
male players. The overriding goal is to create a more diverse NHGC golf facility, one
that can be equally enjoyed by players of all abilities and skill levels.
Packet Pg. 58
1.a
Images of selected tees at NHGC showing conditions that do not match desired quality. Some of these issues are related to the
size of tee boxes, especially on shorter par-3 holes where golfers using short irons take numerous divots.
• Bunkers: As noted there are only about 34 sand bunkers on the 18-hole golf course,
which is not a high number and allows for proper maintenance without overly
challenging maintenance responsibilities. As high-quality sand bunkers are a key
feature of a top-end golf course, and they have the shortest expected lifespan
(Appendix E), some capital requirement to improve the sand, linings and edges of
bunkers should be assumed.
• General Turf & Maintenance Practices: The NGF review noted very high-quality turf
conditions, with very few areas showing signs of any stress at all. As such, it is not
expected that any capital investment will be needed for turf conditions at NHGC,
although a comprehensive fairway aerification program should be conducted regularly
as part of ongoing maintenance practices.
• Irrigation: According to golf course staff and the NGF review, the irrigation system is
original to 1976 course construction and may be nearing the end of its useful life
(Appendix E). The only needs identified by NGF and City staff in 2021 relate to
upgrading above-ground components such as adding a few new controllers to provide
direct computer control of sprinkler outlets. Longer term, the City should begin planning
for an eventual replacement of the full irrigation system at NHGC, although this is not
expected to be required in the next five years (absent unexpected emergency) and can
be considered a longer-term (5-10 years) capital consideration.
• Drainage / Holes #1-3: There are several low-lying areas on NHGC, and this has been
exacerbated by new residential development in the formerly wooded areas due west of
the small valley with holes #1-3. Staff reports that this problem has accelerated in
recent years and heavy rain periods can impact play and restrict access to these golf
holes. In addition, as new residential development is also underway in the wooded
areas just to the west of hole #6, this problem is likely to repeat in that section of the
course. It is recommended that some effort be made by the City to address drainage on
the NHGC course, most likely with the addition of some new open drains and piping to
help move water more quickly to the creek (or pond) on property. This may involve a
more thorough review by City engineering as opposed to a golf course physical review.
Packet Pg. 59
1.a
• Cart Paths and Bridges: There are very few areas of cart paths at NHGC, and these
are in good working order. The four main cart bridges on the golf course have a wood
plank surface that tends to deteriorate quickly in the Minnesota climate. The City should
begin planning for bridge surfaces that will eventually need to be replaced (most
notable the bridge on hole #9).
Images of bridges at NHGC showing the condition and the challenges in maintenance, especially for the bridge on hole #9 (R).
• Trees: NHGC includes several areas where trees have become overgrown and are
interfering with golf play and maintenance of the golf course. As a result, some
significant tree trimming will be required to improve sunlight on the turf and help
improve conditions. A program to trim and remove trees should be part of ongoing
maintenance practices and be included in capital planning for NHGC.
• Entrance Road and Parking: The current entrance road and limited parking are less-
than-ideal for NHGC, and improvement in this area could help improve capacities for
enhanced rounds and revenue. NHGC has lined parking spaces for about 70+/- autos,
and an additional 12+/- longer lined spaces to accommodate golfers bringing trailers for
their own private carts. The ideal for a public golf course is to have at least 120+/-
parking spaces to best accommodate the busiest days and larger events and
tournaments.
• Clubhouse: As noted the clubhouse at NHGC is brand new from 2019, and thus no
capital requirements are anticipated at the facility for the short or intermediate-term. As
the clubhouse is lacking in storage space, the City may have to consider ongoing efforts
to provide portable storage units that can be placed outside the building for use by both
golf and F&B staff. Another consideration for the City is to study improving the indoor /
outdoor dining environment by adding a covered awning to the outdoor patio area to
protect from the sun, and/or expand the patio onto open property just to the northeast of
the clubhouse and overlooking the 18th green.
The maintenance facility at NHGC does not have a defined compound, and rather is supported by
four separate buildings located at various spots in and around the main clubhouse area. Each of
these buildings are older and showed signs of declining condition and need for some upgrade to
basic building infrastructure (roof, walls, plumbing, electric, etc.) and employee comforts (break-
room, lockers, restrooms, etc.). Given the disjointed space, the maintenance areas appear well
organized and able to service equipment, but space is clearly limited to provide full indoor covered
storage of equipment. It is recommended that the City consider replacement of these four buildings
Packet Pg. 60
1.a
into one new maintenance facility located near the current main buildings just to the south of the
clubhouse. Replacing with a new maintenance structure similar to the one added in 2008 at
Eastwood GC would be ideal for this facility, but NGF recognizes the limited capital availability and
the lack of urgency in this need (compared to other capital needs in this system). Still, absent a full
replacement, the 5-year capital plan for NHGC should include some funds to improve the
maintenance facilities at this facility.
Images of maintenance buildings at NHGC showing declining condition and limited space to serve personnel and store equipment.
The equipment needed to maintain NHGC golf course playing area is purchased by the City in an
ongoing annual capital outlay. The NGF team did observe several pieces of broken or outdated
equipment that should be on the list of capital needs for this facility. The NGF finds this ongoing
acquisition arrangement is providing the best possible equipment to properly maintain NHGC.
Northern Hills GC Capital Investment Considerations (2022-2026)

The upgrades for the City to consider at Northern Hills GC include maintenance facility repairs (or
replacement), drainage improvements and a few other “fix up” items. In all, this facility is in good
condition with a new clubhouse and thus does not have a long list of capital needs. A summary of
facility investments to consider at NHGC is noted below:
• Drainage Improvements: Complete a project to enhance the drainage at NHGC,

especially related to holes #1-3 and nearby residential developments. This project
would involve adding new surface drainage outlets along with new piping to move
excess water to the creek or ponds on property. As this project is likely to involve more
than just a golf division investment, it is difficult to estimate the cost but NGF review of
similar projects in other locations suggest it would be in the $200,000 to $300,000
range (lump sum).
• Tee Improvements / New Forward Tees: Improvement of tee boxes include soil
enhancements, leveling, alignment and the addition of new tees. This includes basic
improvements to existing tees plus an additional 15,000sf of new tees added. The unit
price for this level of improvement is higher than other re-surfacing, or about $3.00 to
$3.50 per sf. NGF estimated cost = $45,000 to $52,500 (15,000sf @ $3-$3.50/sf).
• Maintenance Building(s) – The City of Rochester has two options with needed
upgrades to the maintenance buildings at Northern Hills GC. These concepts are
mutually exclusive and include:
Packet Pg. 61
1.a
o Repair Existing – Rochester can complete basic upgrades and repairs to the
four maintenance buildings infrastructure and basic services, improving and
modernizing crew facilities (restrooms, lockers, etc.), repairing damaged
plumbing and electrical components, upgrading exterior roofs and walls, and
completing an interior review of space to improve storage efficiency. However,
this option does not allow for expansion of space that is needed to properly
store and maintain all golf maintenance equipment. NGF estimated cost =
$144,000 to $240,000 (4,800sf @ $30-$50/sf).
OR
o New Maintenance Facility – The City could consider a major change to NHGC,
with an entirely new site program that involves a new maintenance facility with
expanded space and modern features comparable to the new facility at EWGC.
The cost of this is yet-to-be-determined, but would likely be proximate to
$600,000 ($100/sf for 6,000 sf).
• Entrance and Parking Lot: Repair and re-design of parking lot (e.g., new asphalt
surface), entrance road re-paving and addition of new parking spaces. NGF estimated
cost = $152,000 to $190,000 (76,000sf @ $2-$2.50/sf) for new surface and striping.
• Tree Trimming/Thinning: Trimming large trees and removing selected trees is a
priority for NHGC. NGF estimated cost = $50,000 to $100,000 (Lump sum).
• Equipment Program: Replacement of aging and outdated maintenance equipment at
$20,000-$30,000 per year over the next five years. NGF estimated cost = $100,000 to
$150,000 (lump sum).
Northern Hills GC
Recommended Upgrades – in Priority Order
High Priority Capital Investments Inputs Low Estimate High Estimate

Drainage Improvements Lump Sum $200,000 $300,000
Tee Improvements / New Forward Tees 15,000 sf @ $3.00 - $3.50/sf 45,000 52,500
Maintenance Facility Repairs* 4,800sf @ $30 - $50/sf 144,000* 240,000*
Entrance and Parking Lot 76,000sf @ $2.00 - $2.50/sf 152,000 190,000
Tree Trimming/Thinning Lump Sum 50,000 100,000
Equipment Program Lump Sum 100,000 150,000
Grand Total of Capital Projects $691,000 $1,032,000
All figures are NGF estimates based on other similar projects completed in the last 3 years that have been provided to allow for preliminary planning. These
amounts may or may not reflect actual costs for City of Rochester, and the City should engage appropriate research to cost out specific projects. sf=
Square Feet. *Assumes option to repair existing maintenance buildings.
Unique Considerations for Northern Hills GC

The unique factors related to the operation of Northern Hills GC include:
• New Clubhouse – The new clubhouse at NHGC provides the City with a strong
opportunity to grow activity and revenue at this facility and create the premier public golf
experience in Rochester.
• Location - NHGC has a unique location in a major growth corridor of the City and in
immediate proximity to major roadways that serve the area.
Packet Pg. 62
1.a
• Surrounding Development – While NHGC is part of a growth corridor, some of this

growth is in immediate proximity to the facility and is having direct impact on the golf
course. Maintaining an effective drainage profile to handle the runoff from new nearby
residential developments is becoming a key challenge for this property.
• Maintenance Facility – NHGC is lacking a single defined maintenance facility and is
using several small and deficient buildings to support maintenance operations.

Northern Hills is generating direct City revenue from golf playing fees and additional ancillary
income earned by the contracted golf professional and F&B concessionaire. We note that the pro
concession contract was adjusted in 2021 leading to a change in City cart and pro concession
revenue. The following summarizes the facility’s activity (rounds), revenue and expenses.

The table below summarizes Northern Hills’s performance since 2016 from the City’s perspective,
excluding ancillary revenue that is accrued to contracted golf professional and F&B vendor.
Beginning in 2021, the City will no longer earn the full cart fee income due to change in pro
concession contract. Expenses associated with the cart lease and operation will also be borne by
the golf professional. Operationally, Northern Hills has not traditionally generated positive income
for the City, although this is not a completely true picture of the facility’s economics given that all
membership revenue is recorded as “Admin” and NHGC hosts about 24% of total member rounds
in the system. This would equate to additional $121,000+/- in revenue to NHGC if the membership
revenue were allocated to each facility.
Northern Hills GC
Revenue 2016 2017 2018 2019 2020 Avg '16-20
Reg. Green Fees $114,487 $122,722 $99,681 $83,768 $113,564 $106,844
Cart Use Fee 75,782 73,248 65,134 49,913 83,102 69,436
Driving Range 29,916 33,807 28,772 27,202 40,869 32,113
Pro Commissions 2,000 1,600 888 0 0 898
Misc. (2,850) (49) (10) (23) (33) (593)
Total Revenue $228,348 $236,934 $206,973 $170,881 $258,939 $220,415
Annual Change 3.8% -12.6% -17.4% 51.5%
Operating Expenses
Utilities 26,602 23,305 27,996 22,061 32,067 26,406
Adv., Pub & Print 786 83 0 94 950 383
Other 102 1,085 117 85 264 331

Packet Pg. 63
1.a
Activity Levels
The table below shows reported rounds activity at Northern Hills GC since 2016. Annual play at
Northern Hills experienced a strong decline in rounds in 2018 and 2019, falling to just over 18,000
rounds in 2019, with a strong rebound in 2020 and 2021 (overall average was 22,800 from 2016-
2020). Activity in the eight months of 2021 show the rounds total on pace to meet or exceed the
2020 rounds level. Over the years shown, the split of activity between pass holders and daily fee
players has been generally consistent, peaking at 74.5% passholder play in 2021 and never falling
below 65%. A summary of rounds at NHGC is shown below:
Northern Hills GC
Northern Hills GC 2016 2017 2018 2019 2020 2021*
Green Fee Rounds 8,296 7,615 6,653 5,535 7,183 5,725
Total Rounds 26,760 25,269 19,321 18,089 24,510 22,450
% Change vs Prior Year -5.6% -23.5% -6.4% 35.5%
Pro Concession Revenue at NHGC

The table below shows ancillary revenue earned by contracted golf professional at NHGC in 2020
and 2021. The data shows that NHGC is generating an additional $155,000+ in total revenue from
patrons during FY2021, or $6.95 per round of golf. The operating vendor also has direct expenses
to support these revenues and to provide basic customer support for the City’s operation. We note
the key change in cart revenue and expense now borne by the golf professional in 2021.

Golf Shop $40,096 $43,031
Carts $0 $112,957
Total Golf Pro Revenue at NHGC $40,096 $155,988
Golf Pro Expense
Cost of Sales $29,218 $30,679
Operating Expense $2,098 $2,617
Carts $0 $57,247
Total Golf Pro Expense at NHGC $31,316 $90,543
*Partial year through August 2021
Summary – Northern Hills GC

Northern Hills GC is the second championship 18-hole golf course in the Rochester system, and
the newest of the three 18-hole facilities. NHGC has been recently upgraded with the addition of a
brand-new clubhouse in 2019, leading to significant changes in the operating profile of this facility.
NHGC is located in the heart of a key growth corridor for Rochester, and there is a growing
consensus that this property will have the largest population of golfers in the Rochester system
living in close proximity. The course opened in 1976, and as of September 2021, all of the original
facility infrastructure is still in place and functioning to support operations (course features,
irrigation, maintenance facilities, etc.). At 45 years of age, NHGC is at a point when key systems
Packet Pg. 64
1.a
are nearing the end of their expected useful life, most importantly the drainage profile and
inadequate maintenance facilities. As such, the City should begin to think about the capital items
that will need to be addressed at NHGC if the facility is to remain as a viable City asset. Other
findings from NGF’s review of the Northern Hills GC:
• Northern Hills GC is a good-quality 18-hole golf course that is popular with Rochester
area golfers. This popularity is derived from golf course playability, strong location and
comfortable surroundings and amenities, most notably the new clubhouse.
• The NHGC property condition, associated amenities and location would make this the
strongest candidate within the Rochester system to support a higher fee structure and
help to create some internal segmentation and create a higher-end golf strategy.
• NHGC has some property condition concerns that need to be addressed, the most
significant of which are the drainage improvements and maintenance facility repairs (or
replacement). The City will find that these two elements will be very expensive to
address, costing as much as $600,000 just to complete repairs (not including a new
maintenance building).
• In addition to fixing the drainage and maintenance building, the City should experience
good return on investments to enhance the entrance presentation and parking area of
NHFGC, as well as an addition of a new forward tee to shorten the most forward tee
course and create an easier forward-tee course that will help enhance the market for
this facility. Addressing these and other issues at NHGC will result in a total capital
expenditure of nearly $700,000 to over $1.0 million. The gap in low/high estimates of
cost are a result of uncertainty about how drainage issues can be addressed and how
extensive the maintenance facility improvements are undertaken.
• NHGC showed strong performance in 2020, with a 35.5% increase in rounds over 2019
with the new clubhouse addition. The $258,900 in direct City revenue is the highest of
any facility in the Rochester system, and significant growth is anticipated for 2021. In
addition, the pro shop and F&B vendors generated an additional $225,000+ in revenue
from ancillary sales in 2021, partially a result of a new golf professional agreement
signed in 2021.
• Northern Hills has the second highest expense structure in the City golf system, largely
due to the unique maintenance commitment required at this property and the presence
of the only full golf superintendent in the system being stationed at this location. The
revenue generated on-site at NHGC, coupled with its share of City-wide season pass
revenue, is likely not sufficient to cover all required operating expenses and fund the
capital upgrades that will be needed to sustain this facility as a properly functioning golf
facility.
Packet Pg. 65
1.a
SOLDIERS MEMORIAL FIELD GOLF COURSE FACILITY OVERVIEW

Soldiers Memorial Field GC is an historic golf course for the City of Rochester and the oldest
facility in the City’s golf system. The facility has a unique history as an 18-hole regulation public
golf course that was first developed in the 1930s as part of the Works Projects Administration
(WPA). The course is part of the larger Soldiers Field Veterans Memorial Park that includes other
recreational amenities like ball fields, swimming pool/water park, tennis courts and picnic areas.
Since its opening, SFGC has added a new clubhouse in 1993 and completed other improvements
and enhancements. As a result of the Covid-19 pandemic, SFGC was not able to sustain its food
and beverage service provider, and consequently this service was not available to golfers in 2020
and 2021. As of September 2021, the Soldiers Field GC facility includes the following key
components:
• An 18-hole regulation-length golf course (par-70/71) with a maximum length of just over
5,700 yards and three tee positions. The golf course includes a design, length and
features that are commonly associated with modest-quality public golf expected to
command lower-than-premium fees.
• Limited practice amenities that only include a single practice green and small practice
chipping area.
• Full-service 6,000 square foot (sf) clubhouse that includes a pro shop, snack bar area,
restrooms, offices and two small patio areas (one covered and one uncovered).
• 5,000sf maintenance building for storing maintenance equipment and housing staff.

The golf course is located in central Rochester in immediate proximity to downtown and the Mayo
Clinic. The course is immediately proximate to the City’s major intersection of 12th St. NW and
Broadway Av. S., which is located at the southeast corner of the SFGC property. The facility is
accessed via 2nd Av. SW at an intersection with 6th St. SW about ¼-mile from the golf clubhouse
and parking. The Minnesota DOT reports approximately 26,000 autos per day (ADT) at the 12th St.
NW and Broadway Av. S intersection (busiest in Rochester), and 8,600 ADT at the intersection of
6th St. SW and Broadway Av. S. This level of activity shows the course is located in the heart of
activity in Rochester, with the entire Soldiers Memorial Field Park and golf course providing an
important area of open space in central Rochester. Having a location this close to major elements
and activity in a downtown area provides great advantages to SFGC and the NGF expects that a
golf course at this location has great potential to enhance activity and revenue.
The arrival experience requires customers to drive through the Soldiers Field Park and past other
park elements to a rear (south) golf clubhouse location. Signage is adequate, but patrons less
familiar with this location could confuse other park elements and not be clear about the golf course.
Still, a location this close to downtown makes the course very convenient for residents and workers
who are proximate to the downtown area, but less convenient from other areas of greater
Rochester. The implication for the golf course is that SFGC is proximate to several key elements
that could provide strong support to the golf course for the foreseeable future, and the course is
convenient enough for the enhanced attraction of tourists and visitors that will be needed to
provide economic support.
Packet Pg. 66
1.a
Site Positives
• Location: SFGC is in the heart of downtown Rochester, in immediate proximity to
significant defining landmarks of the City (most notable the Mayo Clinic – located less
than one mile from the clubhouse). The facility also has visibility from the major
roadways that provide access to SFGC, which can help to promote SFGC to the
Rochester public.
• Site Setting and Features: The site has outstanding natural features, trees, gentle
topography and some scenery associated with the South Fork Zumbro River that
bisects the golf course property. This course has always enjoyed positive feedback
from golfers and shows potential for significant site enhancement.
Site Negative
• Logistical Layout and Facility Organization: The golf elements of SFGC are spread
out over two distinct parcels that are bisected by the River, and the need to use bridges
to cross. This has impact on moving maintenance equipment around the site but also
produces several areas of “forced carries” that can be problematic for less skilled golf
players.
• Access: While location is a positive for downtown Rochester, access from a wide area
can be more problematic. As this facility may need the support of non-local tourists and
visitors, the course location will always require accurate directions from signage and
facility marketing/promotion.
Local Aerial View – Soldiers Field
Google Earth image showing SFGC and its most significant defining features – the South Fork Zumbro River bisecting the property and the
proximity to the large12th St. NW and Broadway Av. S. intersection. The view also shows the basic facility logistics and the requirement for
adequate bridges to be present to allow for multiple river crossings.
Packet Pg. 67
1.a
Regional Aerial View – Soldiers Field
Google Earth image of a broader regional view of SFGC and its proximity to important Rochester features such as downtown and the Mayo
Clinic. Golf courses with this type of location in proximity to dense downtown areas have great advantages to increasing activity, especially if
renovated into a much higher-quality facility. We also note that courses with this type of location are under great pressure nationwide due to
the inherent underlying value of property for other uses when this close to a central downtown area or central business district.
18-Hole Golf Course

The Soldiers Memorial Field Golf Course includes a shorter 18-hole golf course with a par of 70 (or
71 for ladies), with a par-34 front-9 and par 36 back-9. The course includes three par-3 holes and
only one par-5 on the front-9, while the back-9 includes a standard mix of two par-3’s, two par-5’s
and five par-4’s. This course serves a different clientele than Eastwood or Northern Hills, and
provides a strong golfer segmentation to the City’s golf system. There are almost no large
corporate events or tournaments at Homestead, but rather this course serves a local contingent of
leagues and clubs. Still, the course is not truly “easy” like other short courses, but its short length
does attract a less-skilled player than the other 18-hole courses in this system.
Soldiers Field GC includes all of the basic design elements that are commonly associated with a
more modest fee “short course” that can appeal to less-skilled players, but still retains some
appeal as a full-length course to appeal to better players. This appeal mix provides a strong core of
demand and has contributed to SFGC as the most active course in the Rochester system. Other
NGF observations on the golf course at SFGC:
• The Soldiers Field GC scorecard shows a maximum distance of 5,719 yards from the
longest (Blue) tee, which has a USGA slope rating of 121, which represents that the
golf course is more difficult than the ‘standard’ slope of 117. The intermediate tee
(White) is 5,507 yards with a slope rating of 119 (comparable to the average). The
course provides a good balance of appropriate challenge, but not too much difficulty,
and is a key feature in the course’s popularity, especially for senior resident golfers.
• The most forward tee on the course is Gold and can be played at 4,939 yards, which
close enough to the NGF-recommended distance of 4,600+/- total yards in length for a
Packet Pg. 68
1.a
forward tee course. This current forward tee placement does add appeal for less-skilled
players and use of “Gold” (as opposed to Red) for the tee markers is desirable to help
older golfers play from the appropriate length (Red has a traditional connotation as a
“ladies” tee). Still, even with the shorter tee positions, NGF did observe that holes #9
and #18 had long forced carries over the river that would require players with less
distance to lay-up, adding to the challenge.
• The Soldiers Field course has design features that add appeal to golfers, such as a
wide variety of hole lengths, modest-sized greens, the Zumbro River and other features
like trees and bunkers. There are 32 bunkers on the course, with at least one bunker on
all but one hole (#8), and 13 holes with two or more bunkers. There are some holes that
include water hazards, and this can be a significant part of the golf challenge (as noted
about #9 and #18). In all, the features in place at SFGC adds greatly to the scenic and
challenge appeal of the course, but also to the difficulty for less-skilled players.
• This golf course has appeal and can be marketed in the Rochester area. However, as a
shorter course with slightly less in the way of “modern” features, the City should expect
that golf consumers will expect fees at SFGC to be lower than other championship-
length courses like Eastwood and Northern Hills. This golf course will always have its
greatest appeal for golfers seeking a less stressful round of golf at a lower rate, and
probably in conjunction with one or more of the City’s active leagues and golf
associations.
• SFGC has two on-course restrooms or comfort stations, with one on each of the front
and back-9’s. There are also several rain shelters on the course to protect golfers from
inclement weather.
• The key defining feature of SFGC is the Zumbro River and the mix of golf on both sides
of this feature. As such, play of the course requires no fewer than three crossings on a
full 18-hole round, with four bridges present. As these bridges are the only way for
golfers and maintenance personnel to access all areas of the golf course, all four
bridges must always be in good working order and be large (wide) enough to
accommodate traffic for both golf carts and maintenance equipment.
Overall, it is expected that this golf course will remain an attractive alternative for less serious
golfers to join and play with clubs and associations, and for the occasional round from more
serious players seeking a “change of pace” from Eastwood or Northern Hills. Given this expected
market, the City should always maintain the golf course properly, but may find that providing
maintenance at the highest levels of quality, comparable to Eastwood and Northern Hills, may not
always be totally necessary at SFGC.
Soldiers Field GC Clubhouse

Soldiers Field GC clubhouse was added in 1993 and provides a simple floorplan that is consistent
with service support buildings at golf courses like SFGC. The clubhouse is around 6,000sf of
space and appeared to be in good condition, although the F&B service areas were not open at the
time of the NGF review. The building is well laid out with good logistics, is easily accessible for
customers and generally shows well in appearance. The facility contains all basic features
commonly associated with successful public golf facilities, including:
Packet Pg. 69
1.a
• Pro Shop – The pro shop area includes a small area for retail space and the main
check-in counter. This space appeared functional and efficient, with a modest inventory
of goods for sale. Given the clientele of the course, it would seem that the inventory
was generally appropriate, although the space is large enough to support a higher
volume of inventory. The pro shop location is good, with proximity to the main entrance,
snack bar area, outdoor patios and cart staging area.
Images showing the inefficient use of space for retail in the pro shop. NGF recognizes the clientele hasn’t shown strong demand
for merchandise in this pro shop, but space is available to expand this service or utilize the space for other opportunities.
• Food and Beverage Service Area – The service area for F&B is set up as a snack bar
with walk up service and enough seating to accommodate over 100 patrons indoors.
The clubhouse also includes an outdoor patio area that can seat up to 40 patrons, but
currently only has outdoor furniture for 20+/- patrons.
Images showing the outdoor patio space at SFGC. This type of space has become very popular as an after golf gathering space
at public courses when a cover (sun shade) is provided. Improvement to this space could help improve F&B revenue and make
the facility more appealing for events and tournaments.
• Kitchen Space – SFGC clubhouse has a small kitchen, with barely enough space to
adequately serve the Soldiers Field golf operation. There is little space to handle large
banquets and storage is limited.
Packet Pg. 70
1.a
Images showing the walk-up snack bar service and small support kitchen at SFGC.
• Offices – There is additional space for office and storage, plus a mechanical room.
• Restrooms – The clubhouse has only one men’s and one ladies’ restroom, each with
3-4 stalls and appropriate space and sinks.
• Entry Presentation and Parking – SFGC has an appealing entry presentation. There
are around 180+/- parking spaces, which would be more than adequate to serve an 18-
hole golf course, but this parking area is shared with other park elements (most notably
the swimming area), and thus it can get crowded when both elements are open and
operating.
The above-noted clubhouse program includes all elements commonly associated with successful
public golf courses and should provide adequate support for the golf operation and help to
enhance revenue. The clubhouse operation at SFGC is a key strength for the facility and adds to
the overall appeal of Soldiers Field GC.
Soldiers Field GC – Condition of Facilities

The many components that make up the Soldiers Field GC facility were in mostly good condition
during the Summer 2021 evaluation by NGF. While the golf conditions were not outstanding, they
were adequate to service the SFGC clientele and their lower expectations. The course has several
natural factors that assist in its maintenance – good soil and good drainage. As a result, turf
conditions are generally good and the course can be open even after heavy rain when other area
courses must be closed or reduce access. Given all of this, there are not too many capital needs at
this location, unless a more substantive property renovation is to be considered (more below). The
primary areas of NGF review for the City include the following elements:
• Greens: The greens were in good condition during the NGF review in September 2021.
Greens are 80+ years old and show some signs of shrinkage and grass varieties, but
the roll is smooth and conditions are a match to the rest of the course and the clientele
expectations. City staff did not report any concerns related to the SFGC greens, and the
City should assume that upgrade or replacement to more modern greens with fresh turf
will not be required in the next five years.
Packet Pg. 71
1.a
Images of selected greens ate at SFGC showing a variety of conditions. In all, these conditions are a match for the rest of the
facility and consistent with golfer expectations at this facility.
• Tees: Tees are of adequate size on most holes, except some par-3 holes where irons
are used appear to be too small to allow for turf recovery. Large-scale capital
investment in tee improvements does not appear to be a high priority for new capital
investment at SFGC at this time.
Images of selected tees at SFGC showing conditions on shorter par-3 holes where golfers using short irons take bigger divots.
Packet Pg. 72
1.a
• Bunkers: There are 32 sand bunkers on the 18-hole golf course, which allows for
proper care without overly challenging maintenance responsibilities. Staff reports new
sand was added to the bunkers in 2020 and that reduced maintenance staff has led to
reductions in the frequency of bunker edging. Again, this reduction should not
negatively impact overall course conditions in light of SFGC golfer expectations.
• General Turf & Maintenance Practices: The NGF review noted very high-quality turf
conditions, largely a reflection of the good soil and drainage characteristics of the site.
As such, it is not expected that any capital investment will be needed for turf conditions
at SFGC, and a lighter maintenance commitment can be sustainable at this facility due
to site quality and limited golfer expectations.
• Irrigation: According to golf staff and the NGF review, the irrigation system is old and
staff is struggling to maintain properly, including frequent needs to hand water selected
surfaces. Many of the parts needed to sustain the use of this system are no longer
manufactured, so spare parts are hard to come by. However, we note that many of the
above-ground components have been updated over the years, including new pumps
added in the last few years. The water source is the Zumbro River, so water tends to be
plentiful. Longer term, the City should begin planning for the eventual replacement of
the irrigation system at SFGC. However, even though this system may be older, other
capital investments in the system are of higher priority than irrigation at SFGC.
• Cart Paths and Bridges: There are very few areas of cart paths at SFGC, all in good
working order. The four main cart bridges on the golf course have a wood plank surface
that tends to deteriorate quickly in this climate. Staff reports these planks were replaced
in 2018-19, and so this should not be a capital item for the City in the next five years.
Images of bridges at SFGC showing the large size and need for adequate width to support maintenance vehicles.
• Trees: SFGC includes several areas where trees have become overgrown and are
interfering with golf play and maintenance of the golf course. As a result, some
significant tree trimming will be required to improve hole corridors and keep overgrown
trees from damaging turf conditions. A program to trim and remove trees should be part
of ongoing maintenance practices at SFGC.
• Clubhouse: The clubhouse at SFGC is from 1993, and thus no capital requirements
are anticipated for the short or intermediate-term. One item for the City to consider is
adding a cover to the outside patio and improving the outdoor furniture. This type of
covered outdoor space became very popular during the peak of the recent pandemic
and many courses have elected to retain the service, as golfers found it appealing.
Packet Pg. 73
1.a

The maintenance facility at SFGC includes a defined compound and a main building to house
equipment, all of which appeared in generally good condition in 2021. The equipment needed to
maintain SFGC golf course playing area is purchased by the City in an ongoing annual capital
outlay. The overall maintenance building and yard are in good shape with no capital investment
requirements other than ongoing maintenance equipment purchases.
Soldiers Field GC Capital Investment Considerations (2022-2026)

The good soil and modest expectations from customers lead to reduced capital requirements at
Soldiers Field in the next five years. Most upgrades the City should consider at this facility relate to
optional clubhouse changes to improve the F&B service area, most notably the outdoor patio that
did not currently appear to be well utilized and could be enhanced to help generate more revenue
and greater interest in the property. The irrigation system at SFGC is aging and may require
replacement at some future date, but it is not viewed as a high priority for this facility in the 2022-
2026 period of time. The three basic items for new investment at Soldiers Field GC include:
1. Patio Enhancement and Covering – This involves a program to add a cover (possibly
retractable) to the patio on the south side of the CH with new outdoor furniture for
seating up to 72+/- patrons. NGF estimated cost = $120,000-$150,000 (Lump Sum).
2. Cart Storage Covering – Consider adding a new cover of some type to protect the golf
carts that are currently stored in an uncovered fenced area from the elements. NGF
estimated cost = $20,000-$30,000 (Lump Sum).
3. New Maintenance Equipment: Staff noted the need for a new tractor and range ball
picker as additional equipment will help improve overall Soldiers Field GC conditions.
NGF estimated cost = $15,000 to $20,000 (lump sum).
Soldiers Field GC
NGF Recommended Upgrades – by Type
Inputs Low High

Initial Capital Investments Estimate Estimate
Patio Enhancement / Covering Lump Sum $120,000 $150,000
Cart Storage Cover Lump Sum 20,000 30,000
Maintenance Equipment Lump Sum 15,000 20,000
Grand Total of Capital Projects $135,000 $200,000
All figures are NGF estimates based similar projects completed in the region in the last 3 years that have been provided to allow for preliminary planning.
These amounts may or may not reflect actual costs for Soldiers Field, and the City should engage appropriate research to cost out specific projects.
Unique Considerations for Soldiers Field GC

The unique aspects of SFGC largely relate to the age of the facility and its location in central
Rochester. The City basically has two options for this golf property: (1) retain it as a simple golf
course and complete “band-aid” repairs as they are required; or (2) complete a full renovation and
upgrade of the facility into the premier golf course in the system with a premier downtown location.
Other unique considerations include:
• Aging Infrastructure – As the oldest golf facility in the system, SFGC has many key
systems that are well past their expected useful life, and the City should be prepared for
eventual replacement of key systems like irrigation (NGF estimated cost = $800,000
to $1.0 million (Lump Sum).
Packet Pg. 74
1.a
• Retiring Manager – The on-site manager at SFGC has reported to NGF that he plans
to retire at the end of 2022 leaving an open position that is responsible for overseeing
all system golf professionals, as well as the day-to-day operations at SFGC.
• Maintenance Condition – Despite its age, this golf course is in generally good
condition due to good soil characteristics and proximity to the Zumbro River. The
market of golfers who frequent this course tend to have lower expectations on quality
and are not actively lobbying for major improvement.
• Food & Beverage – The F&B service at SFGC was not in operation during 2020 and
2021 due to Covid pandemic. Upon re-opening, there is opportunity to enhance and/or
expand this service to include a larger covered outdoor venue that has become popular
with public golf courses around the country.
• Full Renovation – Given its location in downtown Rochester, close to all the key
components in the Rochester economy like the Mayo Clinic and other elements, this
facility would be the most ideal candidate in the system for major renovation and
enhancement to a new level of quality and condition.

Soldiers Field GC generates revenue for the City from golf playing fees (green + cart fees), along
with some additional ancillary income earned by the contracted golf professional and F&B
concessionaire (before 2020). The following summarizes the facility’s activity (rounds), revenue
and expense required to service customers and maintain the amenities.
Activity Levels
The table below shows reported rounds activity at Soldiers Field GC since 2016. Annual play at
this course is the strongest in the Rochester system, with a peak at over 33,000 rounds in 2019
(average was 30,700 from 2016-2020). Over the years shown, the split of activity between pass
holders and daily fee players has been generally consistent, peaking at 73.6% passholder play in
2018, but falling to around 66% in 2020 and 2021. A summary of rounds at SFGC is shown below:
Soldiers Field GC
Soldiers Field GC 2016 2017 2018 2019 2020 2021*
Green Fee Rounds 9,458 8,458 8,162 9,032 10,089 7,849
Total Rounds 31,676 28,089 30,927 33,051 29,840 23,382
% Change vs Prior Year -11.3% 10.1% 6.9% -9.7%

The table below summarizes SFGC performance since 2016 from the City’s perspective. SFGC
has not traditionally generated positive income for the City, although this is not a completely true
picture of the facility’s economics given that all membership revenue is recorded as “admin” and
SFGC hosts about 33% of total member rounds in the system. This would equate to additional
$166,600+/- in revenue to SFGC if the membership revenue was allocated by facility.
Packet Pg. 75
1.a
Soldiers Field GC
Revenue 2016 2017 2018 2019 2020 Avg '16-20
Reg. Green Fees $123,446 $127,804 $113,280 $126,354 $143,740 $126,925
Patron Green Fees 17,926 9,087 23,294 24,244 26,945 $20,299
Cart Use Fee 2,485 2,760 3,157 4,410 3,219 $3,206
Pro Commissions 21,097 20,605 21,174 22,714 23,421 $21,802
Misc. 900 325 0 0 0 245
Total Revenue $165,854 $160,581 $160,905 $177,722 $197,325 $172,477
Annual Change -3.2% 0.2% 10.5% 11.0%
Operating Expenses
Utilities 41,132 38,853 41,211 47,220 33,772 40,438
Adv., Pub & Print 1,636 396 0 2,014 0 809
Other (2,961) (1,065) (1,061) (1,075) (1,194) (1,471)

Concession Revenue at SFGC

The table below shows ancillary revenue earned by the golf professional at SFGC in 2020, along
with direct golf professional expenses. The data shows that SFGC is generating an additional
$84,700 in 2020, or $2.84 per round of golf. The operating vendor also has direct expenses to
support these revenues and to provide basic customer support for the City’s operation.
Soldiers Field Golf Course

Golf Shop $14,543 $21,300
Carts 70,175 79,500
Total Golf Pro Revenue at SFGC $84,718 $100,800
Golf Pro Expense
Cost of Sales $8,544 $17,500
Operating Expense $18,715 $24,940
Total Golf Pro Expense at SFGC $27,259 $42,440
*Pro’s projection for full 2021
In addition to the revenue generated by pro concession items at SFGC, the facility also used to
generate revenue from an on-site F&B operator prior to this service being discontinued in 2020. In
2019, this entity reported a total of $40,000 (rounded) in total gross receipts from food and
beverage items at the facility. This equates to $1.35 per round of golf. All expenses associated with
the F&B service at SFGC were derived from this revenue and did not accrue to the City.
Packet Pg. 76
1.a

The summary of Soldier Field revenue is shown in the table below. This facility is earning a total of
$16.38 per round, compared to the NGF average for public golf courses in the U.S. of $38.71
(details presented previously):
Generally Accepted
Year SFGC in 2020
U.S. Average
Rounds 29,840 31,500 (per 18-H)
Green + Passes (City Rev.)* $12.20*
$29.81
Cart Revenue (Split w/ Pro + City) $2.35
Golf Shop Merchandise $0.49 $2.71
Food & Beverage $1.34** $4.65
Driving Range $0.00 $1.50
Other (lessons & other rentals) $0.00 $0.04
Total $16.38 $38.71
*Per round estimate includes $166,600 in season pass income attributed to SFGC but not included in the revenue table
presented earlier. **Figure from 2019 used as to provide a comparative context for if this service was in place in 2020.
Summary – Soldiers Field GC

Soldiers Memorial Field Golf Course is the oldest golf facility in the system with a prime location in
the heart of downtown Rochester. The older golf course is operating with important systems that
are clearly past their expected useful life, but are still functioning at a level that is acceptable to its
market of less-serious golfers who make up the bulk of SFGC customers. While there are large-
scale capital investment needs at SFGC (most notably a $1.0 million+ irrigation system), it is hard
to recommend this type of investment at this location given other needs in the system and the
potential for new site considerations. In short, it would be a mistake to invest heavily in SFGC
infrastructure if the City may consider a more comprehensive upgrade to the golf property,
to take advantage of its location, sometime in the near future.
The existing SFGC golf course is a good fit in the Rochester City system. The shorter-length 18-
hole golf course provides a simple golf design with less challenge that appeals to less-skilled and
less-serious golfers, many of whom are seniors and active in one (or more) of the many leagues
that use this golf course. However, if the City was inclined to enhance its golf system, this facility
may show the greatest potential to expand its revenue base with new amenities that can improve
its appeal to golfers (new greens, fairways and features plus adding a driving range, etc.), and
non-golfers (F&B enhancements, patio improvements, other clubhouse modifications). Still, given
the small size of the site, this location will never support a true “championship” golf experience.
Although SFGC showed some decline in activity in 2020, it remains the most active golf facility in
the Rochester system in terms of rounds played. While rounds fell 10% in 2020, City revenue
increased by 11%, with additional increase expected in 2021. Still, the $197,300 in direct City
revenue is the lowest of the three 18-hole facilities in the Rochester system, and significant growth
in revenue is not anticipated at this location given current amenities. In addition, the pro shop
vendor generated an additional $80,000 to $100,000 in revenue in 2020-21, and the F&B service
was closed with no active vendor in place during 2020 and 2021.
Soldiers Field has the lowest expense structure of the 18-hole courses in the system, largely due
to a significant 34% reduction in expense from 2019 to 2020, mostly related to maintenance
staffing. The revenue generated on-site at SFGC, coupled with its share of City-wide season pass
revenue, is likely not sufficient to cover all required operating expenses and fund the capital
upgrades that will be needed to sustain this facility as a properly functioning golf facility.
Packet Pg. 77
1.a
HADLEY CREEK FACILITY OVERVIEW

Hadley Creek Golf Course (“HCGC”) is a golf learning center facility with a 9-hole executive golf
course and full-length driving range located in the in the northeastern section of Rochester.
Hadley Creek GC was developed in 2010 on a site that was previously occupied by a small 3-hole
golf course. The facility is divided into two sections – a main section with the clubhouse and golf
course on about 80+/- acres on the south side of Hadley Hills Dr., and a separate 11-acre parcel
just north of the street that includes the driving range and maintenance building. The facility
operates as a popular golf learning center and is the host facility for the First Tee of Rochester.
The two sections are approximately 200 yards from each other, and each section has its own
entrance and parking lot. As the driving range parcel is the first to be encountered when entering
off Hadley Hills Dr., improved signage about the facility and its two sections would be helpful for
patrons less familiar with the property. Hadley Creek is in northeastern Rochester, approximately
four miles from the downtown area.
As with many 9-hole courses in the U.S., generating enough revenue to fully support operations
has been difficult for the City, although activity is up in 2021. Hadley Creek is popular with local
golfers and it has averaged about 14,300 annual rounds over the past 5 years. Hadley Creek GC
appeals to a broad range of golfers as the layout is enjoyable, very walkable and not overly
difficult. However, 9-hole courses can be perceived by golfers as being less desirable. While 9-
hole courses do have some constraints versus 18-hole courses (such as the capacity to host
events & outings), the quality and locational convenience of the course remain key factors in
attracting play. In all, the elements present at Hadley Creek are ideal for beginning golfers,
especially children, as well as others seeking a shorter and less serious round of golf. Although it
includes just 9 holes, the golf course at HCGC includes many outstanding features and golf
challenge more commonly associated with higher-quality golf courses.

Hadley Creek is located in a sparsely populated section of Rochester, just outside the East Circle
Dr. perimeter. The Hadley Creek community entrance is on Hadley Valley Rd. and 48th St. NE,
approximately one mile east of the 48th St. NE intersection with N. Broadway Av. Recent
improvement has expanded 48th St. NE all the way west to W. River Rd. NW., providing easier
access to the Hadley Creek area from the northern parts of Rochester. The Hadley Creek
community is growing rapidly, with as many as 122 new homes expected in the community upon
completion. The entrance to the golf course is via Hadley Hills Dr. NE, about ¼ mile from the
intersection with Hadley Valley Rd. This location makes the subject golf course somewhat remote
in Rochester geography, but still convenient and accessible for golfers in the City, a key factor in
the growing attraction of HCGC.
Overall, the immediate area surrounding HCGC includes the roadways as noted, and sparse, but
growing areas of residential density in proximity to the facility. The areas to the north and east of
HCGC are mostly undeveloped at present, but areas two miles to the south and west show much
greater density and commercial activity. The implication for the golf course is that HCGC is not
proximate to elements that could provide support to the golf course, and the facility will have to
draw from a wide geographic area to support operations. This is usually a challenge for 9-hole
courses, but the beginner-friendly concept and good quality driving range make this a “Destination”
golf practice facility that can attract golfers from a wide geographic area.
Packet Pg. 78
1.a
Hadley Creek GC Site Positives

• Aesthetics: The property has gentle topography and attractive tree cover that lends
itself to a good quality golf experience. Water features on property are also pleasing
and somewhat unique among Rochester golf courses.
• Roadway Visibility: Some parts of the HCGC golf course are visible from 48th St. NE,
as the property that fronts this roadway near the Hadley Creek entrance. This window
to the course can be a key in future marketing and promotion of the facility.
Hadley Creek GC Site Negatives
• Homes on Property: The HCGC site includes significant (and growing) areas of direct
home frontage on the golf course. While this frontage is appealing for the residences, it
takes away some appeal for golfers and adds challenges for errant golf balls hitting
adjacent housing.
• Low Lying: portions of the HCGC are low lying as area properties drain into parts of
the golf course. As a result, this golf course may be wetter than others, potentially
limiting rounds activity after heavy rains.
• Site: The Hadley Creek site is too small to expand to an 18-hole golf course, yet is still
large enough to require a large maintenance responsibility. Having the golf course and
driving range on separate parcels adds to the maintenance and operational challenge
of HCGC.
• Location: While access to the property is easy and convenient, the HCGC is not
located close to large pockets of residential density to provide strong local support. As a
result, the facility will always need to attract a strong non-local contingent of players to
support operations.
Aerial Views – Hadley Creek Golf Course
Google Earth image showing the Hadley Creek GC and limited residential and commercial elements in close proximity.
Packet Pg. 79
1.a
Summary of NGF Findings on Hadley Creek GC

Hadley Creek GC was developed in 2010 and has quickly become a popular option for Rochester
residents, despite being only 9 holes. The course is developed as part of a new community of
single-family homes, with several units added (or being added) in the 2019-2021 period. The
property has good natural features for a golf course, and a traditional layout that appeals to a
broad segment of golfers (especially seniors, beginners and other less-skilled players). Unlike
other City of Rochester facilities, this course also extensive golf practice facilities with a large
driving range, chipping area, short-game practice area and a large practice putting green. HCGC is
operated from a 2,500sf clubhouse with limited services available – primarily a small golf shop
(with balls, gloves, hats, tees, sunglasses, limited clubs, etc.), a modest snack bar area, restrooms
and classroom space for the First Tee program. A summary of the key NGF findings on the
Hadley Creek GC include:
Golf Course
Hadley Creek GC has an executive-length 9-hole layout, with total yardage at 2,179 from its
longest tee (or 4,358 if played twice for 18-hole equivalent) and a par of 32. It is a core design and
includes a variety of parallel fairways (with existing trees and a creek providing separation between
holes). The layout has a total of six bunkers and five small ponds that come into play on five holes.
With very gentle terrain, the course sets up well for walkers, even though the course reaches
approximately 1,250 yards from the clubhouse at its farthest point (#6 green is .75 miles from the
clubhouse). The course carries a low slope rating of 109 from the longest (Blue) tee, which infers
that it is much less difficult than the standard rating of 117. The most forward tee (Yellow) includes
a much shorter course of 1,610 yards and a slope rating of only 93. Overall, the course has great
appeal as a senior / walker / beginner-friendly golf course and also includes high-quality practice
amenities to attract serious golfers in addition to the core beginner and intermediate golf customer.
Existing Conditions Review

The general condition of Hadley Creek GC is good and reflects that this facility is the newest in the
system. Hadley Creek has a more modern irrigation system and most all golf related features in
good condition. As such, the NGF did not see significant investment needed to sustain operations
at Hadley Creek GC, with a few notable exceptions:
• Turf Conditions: The overall turf health at Hadley Creek is acceptable for a lower-fee
public golf course, but some areas of stress were observed, mostly related to excessive
wear from carts, limited irrigation and/or poor drainage. While these are not deemed
“mission critical” for the operation, some future attention my become necessary.
Photos showing areas of concern in turf conditions at HCGC in 2021 caused by cart traffic (L) and drainage issues (R).
Packet Pg. 80
1.a
• Greens Condition: Several greens at Hadley Creek showed areas of stress and/or
disease. The City should look more closely at this problem with a full USGA agronomic
inspection and possible plan for correction. While these conditions may be acceptable
for a lower-fee public golf course in the short-term, over time golfers will become
disaffected with this kind of greens condition and thus the City should place a high
priority on improvement.
Photos showing examples of HCGC greens under some stress for various reasons.
• Drainage: Some of the on-course condition issues observed at HCGC are related to
drainage problems, and most of the drainage problems appear to be related to flow
limits in the creek on property. Staff reports that an extensive clearing project to remove
debris will help the creek flow better and reduce overflow of water on to the golf course
during some rain events.
Packet Pg. 81
1.a
Photos showing drainage-related concerns on the HCGC in 2021.
• Minimal On-Course Services: Hadley Creek has limited restroom (port-a-potties) and
drinking services for golfers while playing on the course.
Photo showing the extent of on-course services at Hadley Creek GC.
Driving Range and Practice Facilities

Hadley Creek includes a large driving range with just under one full acre of hitting space that can
accommodate up to 30+/- patrons at any one time. The range is just over 350 yards in length at its
longest point, but narrows with surrounding woods as it gets longer. It is common for range balls to
be lost regularly in the surrounding woods and frequent ball replacement will always be required.
The range is hosted on a separate small parcel, along with a maintenance building, approximately
200 yards from the main clubhouse and 9-hole golf course.
Packet Pg. 82
1.a
Photos of the HCGC driving range showing the large hitting area and narrow landing area with netting to retain errant shots.
In addition to the driving range, HCGC includes a large short-game practice area that includes two
practice chipping greens, a practice bunker and distance enough to practice pitch shots from as far
away as 100+ yards. This kind of short-game practice area is highly sought after by serious golfers
and beginners alike, and is truly unique in the Rochester golf market. Staff reports using this space
expensively for First Tee programming, as well as for lessons and open practice.
Photos showing the short game practice area at HCGC. This kind of practice amenity is highly desirable among golfers and
is also uncommon, and thus should be extensively promoted by the City.
Clubhouse Building
• Clubhouse: The simple open-plan clubhouse was built in conjunction with the course in
2010 and includes an open design with check-in counter for all purchases. There is
space for cart storage on the lower level of the clubhouse. The primary functions
include golf shop / check-in area; modest food & beverage operation (mainly snack &
beverages); classroom space and restrooms. This clubhouse does not appear to have
any significant issues requiring new City investment.
Packet Pg. 83
1.a
Photos showing the interior of the Hadley Creek clubhouse (L) and the small shop / F&B area (R).
• Maintenance Facility and Equipment: The maintenance building is smaller than the
other City golf facilities at approximately 4,400 square feet. However, this maintenance
building is responsible to service approximately 80 acres of turf area and it appears to
be adequate to service efficient daily maintenance operations. The building appeared to
be in fair condition and no significant issues were reported to NGF. Similar to the
maintenance equipment at the other City courses, the equipment at Hadley Creek GC
was older but in functional condition. The biggest challenge is the lack of back-up
equipment when key equipment goes down for repair.
Hadley Creek GC Capital Investment Considerations

The various capital improvements and upgrades made at Hadley Creek GC in 2019-2020 include
approximately $20,500 for improving the design of hole #5, adding a new forward tee and some
drainage enhancement. Going forward, some new investment in this facility is warranted, although
none of these capital recommendations are deemed as being high priority for the system as a
whole. The greens condition at HCGC is assumed to be an issue for enhanced maintenance, as
opposed to capital investment. The two basic items for new investment at Hadley Creek GC
include:
1. Creek Improvements / Clearing – Dredging and clearing the creek on site to improve
drainage. NGF estimated cost = $20,000-$25,000 (Lump Sum).
2. New Maintenance Equipment: Staff noted the need for a new tractor and range ball
picker as additional equipment will help improve overall Hadley Creek GC conditions.
NGF estimated cost = $15,000 to $20,000 (lump sum).
Hadley Creek GC
NGF Recommended Upgrades – by Type
Inputs Low High

Initial Capital Investments Estimate Estimate
Creek Improvements Lump Sum $20,000 $25,000
Maintenance Equipment Lump Sum 15,000 20,000
Grand Total of Capital Projects $35,000 $45,000
All figures are NGF estimates based similar projects completed in the region in the last 3 years that have been provided to allow for preliminary planning.
These amounts may or may not reflect actual costs for Hadley Creek, and the City should engage appropriate research to cost out specific projects.
Packet Pg. 84
1.a
Summary of NGF Findings on Hadley Creek GC

Hadley Creek and the accompanying First Tee programming is an important part of the Rochester
golf system and a key piece in fulfilling the “public purpose” mission of all Rochester park facilities.
Properties like Hadley Creek are not expected to generate revenue, but are offered as a public
service for the community. Municipal golf courses are different in that these facilities are expected
to operate near a breakeven basis or generate some profit. Further, many municipal golf systems
are set up as enterprise funds or non-reverting funds – in other words, they must operate
independently and be economically self-sufficient. Golf learning facilities like Hadley Creek can
often be a hybrid operation in that they offer a recreational amenity to residents but few standalone
9-hole short courses are profitable. Hence, the municipality must ascertain how they view these
courses – recreational amenity or a profit center.
Key Operational Issues Unique to Hadley Creek

Previously in this report, the NGF documented the operating structure and key issues in the full
Rochester golf system. Below we note some consulting observations about the operation at
Hadley Creek that are unique aspects to be considered for this property, and do not apply to the
other three more traditional properties in the system:
• Maintenance Condition – As a 9-hole short course, HCGC does not need to be

maintained as an ultra-high-quality golf course but should also not be allowed to
become too poor in condition either. Given its status, this course can probably survive
without a full-time maintenance superintendent, provided one is available in the City
system to provide needed occasional support.
• Operating Staff – Given the facility is divided into two separate parcels (range and
course), HCGC will always require appropriate staff to be present at all times and at
both components. This also applies to the short-game practice area, although this
space is visible from the clubhouse and can be controlled from that location.
• Pro Shop – HCGC does not appear to provide a major retail opportunity for the golf
professional, but this facility should always have a strong retail component. Items
offered for sale in this pro shop should be focused on golf “impulse” items (hats, towels,
balls, tees, gloves, etc.), and not on hard goods like clubs and bags, except small
consignment-type items as at present.
• Food & Beverage – The F&B operation at HCGC is small, and mostly entails pre-
packaged snack items and beverages. Staff reports that no alcohol or beer is available
for sale at this location. Anything that can be done to expand this offering slightly to
include some expanded fare of food items will be appreciated by the golfing public and
could lead to improved sales of green and cart fees.
• Range Balls – due to the size and basic characteristics of the driving range at Hadley
Creek, there will be a continuing need to replace range balls lost in nearby woods.
Although staff reports local youth actively working to retrieve these balls on a periodic
basis, ball replenishment will always be a continuing required expense at this location.

The following paragraphs summarize the Hadley Creek GC activity (rounds), revenue and
expenses required to maintain the facilities and service customers.
Packet Pg. 85
1.a
Activity Levels
The table below shows reported rounds activity at Hadley Creek GC since 2016. Annual play at
HCGC has ranged between about 12,200 rounds in 2017 to 16,000 rounds in 2020 (average just
over 14,300 from 2016-2020). Activity in the eight months of 2021 show the rounds total already
exceeding the highest level with additional activity in September and October, before reduction in
November. Over the years shown, the split of activity between pass holders and daily fee players
has been generally consistent, peaking at 60% passholder play in 2016, but falling to under 52%
passholder play in 2020. A summary of rounds activity at Hadley Creek is shown below:
Hadley Creek GC
Hadley Creek GC 2016 2017 2018 2019 2020 2021*
Green Fee Rounds 5,912 5,895 6,194 6,447 7,822 6,847
Total Rounds 14,852 12,273 14,474 13,934 16,049 16,520
% Change vs Prior Year -17.4% 17.9% -3.7% 15.2%

The table below summarizes Hadley Creek’s performance since 2019 from the City’s perspective.
We note that other ancillary revenue (F&B, Pro Shop, Lessons, etc.) is not included in this table,
nor are the pro shop operating expenses associated with these revenues (belong to contract Golf
Pro). Operationally, Hadley Creek has not traditionally generated positive income for the City until
the great improvement in 2020. Typically, the City would show an operating deficit close to
$50,000+/- each year between 2016 and 2019.
Hadley Creek GC
Revenue 2016 2017 2018 2019 2020 Avg '16-20
Reg. Green Fees $50,394 $54,270 $52,187 $45,115 $56,007 $51,595
HC Membership 47,276 66,141 21,311 24,236 17,383 35,269
Cart Use Fee 29,216 27,199 28,901 34,031 41,888 32,247
Driving Range 31,992 35,731 34,865 35,863 42,733 36,237
Program Fees 11,936 15,088 16,016 22,033 70 13,029
Total Revenue $172,327 $199,886 $158,738 $176,765 $177,102 $176,964
Annual Change 16.0% -20.6% 11.4% 0.2%
Operating Expenses
Utilities 19,206 21,163 22,297 18,153 21,437 20,451
Adv., Pub & Print 1,328 2,380 312 0 105 825
Other (1,364) 175 10 0 0 (236)
Operating Income (Loss) ($37,574) ($3,738) ($49,351) ($50,651) $4,521 ($27,359)
Packet Pg. 86
1.a
Summary – Hadley Creek GC

Hadley Creek GC is a golf facility with a short 9-hole executive golf course and extensive practice
amenities that is ideal for beginners looking to take up the game, or seasoned players looking to
practice. The facility provides a great complement to the City’s golf system and can be a key
vehicle for growing golf in Rochester. The facility is well located and is easily accessible from most
of Rochester. Hadley Creek GC has had few capital improvements on the course in recent years
and some elements of the course conditioning can be improved. Other findings from NGF’s review
of Hadley Creek GC include:
• Hadley Creek has a good following of players and also enjoys play from local leagues
and the regular events. This facility is most well known in the area as the home of the
First Tee of Rochester and as a popular location for well-attended junior golf camps and
all kinds of beginner golf programs.
• The modest clubhouse is original from 2010 and includes a small pro shop area, an
F&B area (mainly snacks and beverages) with some tables and restrooms. This
building is very functional for the current operation, with adequate size for the
classroom element of the First Tee program.
• Play over the past five years has averaged about 14,300 rounds per year, with a 15%
increase to over 16,000 in 2020 and likely reaching over 17,000 in 2021. Of these
rounds, season pass play represents about 55% over the last five years.
• The overall revenue generation at Hadley Creek GC is currently about $177,000
annually, an amount that is not that much lower than the 18-hole Soldiers Field GC.
HCGC generates over $40,000 in driving range revenue alone, the highest in the
Rochester system.
• Hadley Creek has the lowest expense structure in the system, largely due to a very
small staff and only one full-time employee. Given this, HCGC is the closest facility to
“break-even” in the system, even with its low revenue. In all, the City should be willing
to accept economic loss on a facility like this this given its potential to serve as a feeder
facility for growing golf in Rochester.
• The HCGC property is well located, but continued operation as a 9-hole golf course and
practice facility will not serve to reduce or eliminate operational losses. Successful
multi-facility municipal golf systems in other cities typically include extensive golf
training elements like those present at Hadley Creek. These facilities can serve as a
catalyst to develop new golf players who can then “graduate” to the other facilities in the
system and become life-long customers.
Packet Pg. 87
1.a
External Factors Affecting the Operation of

As we plan for the future operation of Rochester Golf Courses, NGF has provided a summary of
important external factors that have direct effect on the operation of these facilities. This includes a
review of local demographics and economy, golf industry trends, and a review of the balance
between the supply and demand for public golf in the greater Rochester market. NGF will also
provide a review of other golf courses in the area that compete with Rochester courses for market
share. We will then provide a summary of these factors and how they relate to the continued
operation of the City’s golf courses.
MARKET OVERVIEW
The four Rochester golf courses are located in separate sections of the City, providing a strong
geographic balance to the City’s golf system. The golf courses are each located in proximity to
important roadways that connect the area together, with Soldiers Field located in the central part of
the City close to downtown. As Rochester is a relatively small metropolitan area, each of the
courses are feeding off of the same general market for support, with some unique characteristics in
the local area around each facility. As such, the NGF has provided a review of the broader
Rochester market along with some localized review of the 2-mile market ring around each of the
four City facilities.
Demographic Analysis – Local Residents

The table in Appendix F summarizes key demographic measures of population, income and other
trends that relate to golf participation. The section below provides a summary of key demographic
and golf demand measures for various market rings around the center of Rochester, all of
Olmstead County, the State of Minnesota and the total U.S., as well as for 2-mile rings around
each subject Rochester golf course.
Greater Rochester Market Data Comparisons 2020

10-Mile 20-Mile Olmstead Rochester State of
Downtown Rochester U.S.
Ring Ring County MSA Minnesota
Population Est. 2019 137,391 187,508 156,689 219,989 5,616,780 328,252,472
Population 2024 Proj. 145,144 197,237 165,539 231,009 5,871,589 339,844,802
Med. HH Income (2019) $79,784 $79,343 $79,494 $75,681 $72,220 $63,709
Median Age (2019) 37.5 37.8 37.6 38.6 38.4 38.3
Participation/Rounds Index* 152 153 152 149 153 100
Number of Golfers 15,935 21,226 17,729 24,226 609,465 24,800,870
Rounds Potential (res.) 263,615 350,653 293,213 402,197 10,000,170 381,451,700
Source: NGF, Tactician Corporation, Applied Geographic Solutions.
* Golf Participation and Rounds Index: Estimated number of golfing households / average rounds played in a particular geography compared to the
national average golfing household (US index = 100).
Packet Pg. 88
1.a
Greater Rochester Market Data Comparisons 2020

EWGC NHGC SFGC HCGC
2-Mile Sub-Markets
2-Mile Ring 2-Mile Ring 2-Mile Ring 2-Mile Ring
Population Est. 2019 13,793 21,462 40,774 5,356
Population 2024 Proj. 14,594 22,634 43,385 5,639
Med. HH Income (2019) $55,517 $85,494 $56,903 $109,722
Median Age (2019) 33.3 32.7 38.3 43.5
Participation/Rounds Index* 117 147 126 180
Number of Golfers 949 2,793 4,024 705
Rounds Potential (res.) 14,230 43,107 65,781 12,340
Source: NGF, Tactician Corporation, Applied Geographic Solutions.
* Golf Participation and Rounds Index: Estimated number of golfing households / average rounds played in a particular
geography compared to the national average golfing household (US index = 100).
• The local market around Rochester golf courses shows modest local populations, with
the largest population within two miles around Soldiers Field and smallest around
Hadley Creek. Population growth in the Rochester MSA has been greater than the U.S.
and statewide average, and continued increases in population are expected through
2024. The modest local population suggests that a key to the successful operation of
Rochester golf courses will be the attraction of some out-of-town golfers, in addition to
the continued attraction of local golfers to each facility.
• The Median Age in the local market rings around Rochester golf courses is younger
than the national median age of 38.3 years, and much younger in the EWGC and
NHGC sub-markets. This is indicative of the higher proportion of younger residents in
these parts of Rochester. In general, the propensity to play golf with greater frequency
increases with age, making relatively older markets more attractive to golf facility
operators, all other factors being equal.
• The Median Household Income in the Rochester MSA is higher than the national
median of $63,709. In the 2-mile sub-markets around the Rochester golf courses we
see very strong income in the NHGC and HCGC neighborhoods, and lower income
around SFGC and EWGC. This is indicative of the mix between higher income
residents in and around the northern parts of the community, and lower incomes in the
central and southeastern parts of Rochester. In general, higher income residents are
more likely to participate in golf, and they play more frequently than lower income
residents. The higher incomes in the overall Rochester MSA market would generally
suggest some tolerance for higher golf playing fees among residents.
• The NGF estimates there are a total of about 24,200 golfers potentially demanding over
400,000 rounds of golf annually (16.5 rounds per golfer per year) in the Rochester
MSA. Considering there are 23 golf facilities in the Rochester MSA, this data suggests
that each facility expects around 17,600 rounds per year to be played.
• The Rochester MSA shows higher-than-average golf participation and demand for
rounds played per golfer. This finding is indicative of the basic nature of the local
Rochester area that has demographic characteristics that match strong golf
participation. However, there are several golf facilities in the area to service this
demand and the result is a highly competitive public golf market (more later in this
chapter).
Packet Pg. 89
1.a
Rochester Overview
Rochester is Minnesota's third-largest city and the largest city located outside the Minneapolis-St.
Paul-Bloomington Metropolitan Statistical Area. According to the 2020 United States Census, the
city had a population of 121,395, and is the home of the Mayo Clinic and a major IBM facility. The
Minnesota State Demographer’s Office reported the 2019 population of the Greater Rochester
MSA at 224,357, which includes Olmsted, Dodge, Fillmore, and Wabasha counties. The Rochester
MSA continually ranks high in polls relating to quality of life and worker productivity. The area
remains the regional center for industry and commerce in southeastern Minnesota. Below, the
NGF provides observations on the key economic drivers of the area and the potential impact on
golf activity at Rochester Golf Courses.
Key Local Economic Factors

While many significant events have occurred during the last 20 years to test the resiliency of the
local economy, the net result has been that the Rochester economy remains strong and viable,
and is reported to be growing at a pace faster than the rest of the state and nation as a whole. The
Mayo Clinic forms the core of the Rochester's economy, with employment over 34,000 and a draw
of over 2 million visitors annually. Excluding state government, Mayo Clinic is the largest employer
in Minnesota. The clinic's many facilities, along with hotels, restaurants and retail stores, comprise
a major sector of the city's downtown (all within close proximity to Soldiers Field). The economy of
Rochester is also influenced by the agricultural nature of the region, with multiple dairy producers
active in the area. A summary of key findings and data related to the Rochester area economy that
have direct impact on the continued operation of Rochester Golf Courses are noted below:
• Rochester is the leading population center in the southeast Minnesota area, and a
regional hub for commercial and transportation activity. Each of these factors is viewed
as positive for continued golf facility operation and the potential to support golf demand
a high level of required fees.
• The largest employers in Rochester include the entities listed below. The presence of
large employers like this tends to enhance the demand for golf and provides strong
opportunities for City golf courses to seek support from large employers for services like
leagues, corporate events and tournaments.
▪ Mayo Clinic (34,660 employees)
▪ Rochester Public Schools (2,872)
▪ IBM (2,791)
▪ Olmstead Medical Center (1,372)
▪ Olmstead County (1,301)
▪ City of Rochester (1,181)
▪ McNeilus Truck & Manuf. (1,170)
▪ Charter Communications (902)
• Tourism contributes significantly to the economy of Rochester. According to the SB
Friedman Rapid Transit report (2020), the City hosted some 3.34 million visitors in
2017 representing an increase of 21% over 2013. While about 2.3 million of these
visitors are in town for the Mayo Clinic, an additional 1.0 million+ are in Rochester for
business, conventions and/or leisure travel, all of which tend to support public golf
courses. The attraction of some of these non-residents would have a positive impact on
golf demand and the performance of Rochester golf courses, provided the facilities are
operated to accommodate and market to these visitors.
Packet Pg. 90
1.a
• Rochester has 23+/- identified hotels properties with over 2,900 total rooms available
for visitors. This includes a mix of upscale, midscale and economy class facilities. In
addition, another 990+ rooms are under development (as of 2020) to be added to the
inventory. On average, hotel occupancy ion Rochester is between 62% and 66%, with
occupancy tending to be higher in the Monday-Thursday mid-week than it is on
weekends. This is related to the Clinic, business and convention nature of visitation to
Rochester, and provides opportunity for City golf courses to enhance mid-week activity.
• The automobile transportation infrastructure in Rochester is sufficient to support public
golf operations at the Rochester golf courses. As golf activity is primarily driven by auto
transport, convenient access to major roadways is important and all four golf courses
are located in proximity to key arterials in the area, most notably Highway 52 and
Highway 14 that are the major highways in Rochester. As a modest sized metro area
with limited periods of heavy traffic, potential golf customers are rarely more than 10-15
minutes away from any City golf course in Rochester.
• Rochester International Airport (RST) is seven miles south of downtown Rochester, and
is the second busiest airport in Minnesota. Three major airline carriers serve RST,
including United, American and Delta flying to major hub cities like Denver, Chicago
and Atlanta. Sun Country Airlines will offer direct flights to Phoenix and Fort Myers
beginning in 2022. Connection to any airport in the world can be made from these hubs.
The passenger total for 2019 was 370,851. RST has a business center that includes a
hotel, restaurant, event center, offices and additional space for future development.
Climate
As with any outdoor recreation, weather will have impact on golf participation. NGF data estimates
that almost all golf is played with temperatures between 50- and 90-degrees Fahrenheit. The data
suggests that golf in Rochester can be comfortably played in a seven-month golf season (May –
October), with a modest shoulder season (April & November), and very little activity expected in
December – March. With an annual average of ±33 inches of precipitation, this market is prone to
a reduction in playable hours/days. The following table presents a summary of monthly weather
data for the Rochester area based on 50-year recorded trends:
Climatological Data
Rochester, MN
Temperatures Precipitation Average Length
Month
Average High Low Inches of Day (Hours)
Annual 45 55 36 33 12.7
January 16 24 8 0.9 9.9
February 20 28 12 0.8 11
March 32 41 24 1.9 12.5
April 47 57 36 3.2 14
May 58 69 47 3.6 15.3
June 68 78 57 4.7 16
July 74 81 61 4.6 15.6
August 69 79 59 4.5 14.4
September 61 71 50 3.5 12.9
October 48 58 38 2.2 11.4
November 34 42 26 1.9 10.2
December 20 27 12 1.2 9.5
Source: Weatherbase.com, Rochester, MN
Packet Pg. 91
1.a
GOLF MARKET SUPPLY AND DEMAND INDICATORS

Below are some key NGF observations regarding national and local trends in golf supply and
demand.
National Golf Industry Overview

Despite significant negative press, the golf industry remains healthy and was continuing a macro
trend toward stabilization in 2019. As we begin to consider the potential effects of Covid-19, we
note that golf activity appears to have increased in the U.S. during 2020 and 2021. Ultimately, golf
is at the mercy of “discretionary income,” and the activity held up rather well during the great
recession (2008-2010) and during Covid-19 (2020-21). Multiple NGF studies of golfers since 2008
attribute the longer-term gradual decline in golfers and rounds since peak participation primarily to
the impact of concern over personal finances, not waning appeal for the game. Total spending
on golf and club memberships will always be vulnerable to outside forces such as the economy,
but the game remains popular and is fortunate to have a deep well of interested prospects.
In the last 12-18 months, golf received a strong, though perhaps temporary, boost in demand from
the Covid-19 crisis. While research indicates that the number of golfers has not changed markedly,
some new golfers have joined the game (especially juniors) and rounds activity by existing golfers
increased significantly. It will be up to golf’s stakeholders (major associations, course operators,
golf professionals, instructors, and other staff) to make sure that a strong percentage of new and
reactivated golfers stick with the game once other leisure and recreation activities become more
widely accessible. Some additional findings from NGF:
• Participation - The national golfer number (participation) increased slightly in 2020,
with 24.8 million golfers counted by NGF in 2020 compared to 24.2 in 2019. In addition,
NGF survey research indicates that the inflow of returning golfers and beginners
combined to total over 6.2 million in 2020, the highest number ever recorded by NGF.
• Rounds Played 2019-2021 – Despite the loss of 20 million spring rounds due to Covid-
19 closures and restrictions, the almost 502 million rounds played at U.S. courses in
2020 was the most in more than a decade. The 61 million additional rounds over 2019,
a 13.9% rise, is second only to the industry’s 63 million jump in rounds in 1997, when
Tiger Woods had his breakout year. In Minnesota the results have exceeded the nation,
with the State showing a 23.3% increase in rounds for 2020 (over 2019), although there
has been some retraction in 2021 with a 1.5% decrease in the first nine months of 2021
(still much higher than 2019). Through September of 2021, rounds are up 8.4%
nationally Minnesota (source: Golf Datatech – see Appendix D).
• Golf Activity Drivers - The observed increase in golf activity is driven by several
intertwining factors. NGF surveys show that golf was considered a “safe” activity at the
height of the pandemic, as players felt they could participate, compete and socialize
with friends, and never have to come in close contact with other people. Many golf
courses were forced to adopt changes (longer tee-time intervals and single-rider carts)
that ended up adding to golf’s popularity. In addition, our research shows that already
avid golfers found an opportunity to consume more rounds through increased time
availability related to work-from-home arrangements and flexible schedules.
• Beginners – The NGF counted 3.0 million beginning golfers taking up the sport for the
first time in 2020, the highest number ever counted by NGF. This beginner group was
also more diverse than in previous years, with over 33% of the beginners being female
and a larger portion over the age of 50 than ever before (22% in 2020 compared to 5%
Packet Pg. 92
1.a
in 2016). This level of new beginners bodes well for continued interest in golf and
makes a rapid decline in activity very unlikely.
• Golf Course Supply - The correction in golf course supply continued in 2020 at a level
comparable with the previous several years, dropping by 1.4% (193 total 18-hole
equivalent permanent closures in 2020 compared to 160 in 2019). NGF data shows that
Olmstead County has seen its share of course closures, largely due to the underlying
value of property. A total of two golf facilities (totaling 27 holes) have closed in
Olmstead County since 2012, the Links of Byron (9h) and Meadow Lakes GC (18h).
• Baby Boomer Effect and Generation G (the “Golf Generation”) – As Baby Boomers
age and retire over the next 15 years, we expect to see a measurable increase in total
rounds played in the U.S. Golfers born between 1946 and 1964 are currently 56 to 75
years old, and about 6 million of them are golfers (1/4 of all golfers), and they currently
play about 1/3 of all rounds. While not technically a generation, the 46-65 age cohort is
a vital group for the golf industry, accounting for the most golfers, rounds and spend in
the industry – more than $9 billion in total annually. Gen G includes younger Boomers
and older members of Generation X.
• Golf Equipment Sales – In reviewing the demand for golf, one metric NGF is tracking
on a regular basis is the sale of golf equipment, most significantly the sale of golf balls.
The surge in equipment sales that began last May is showing no signs of letting up – as
combined golf club and ball wholesale dollar sales are up 77% in 2021 over 2020 and
35% over 2019 (through the end of June). All this equipment is not gathering dust on
store shelves. Retailers we’ve talked to tell us that sell-through has been very good and
inventories are not getting bloated. Clearly, this data is another layer of research to
support a real surge in golf demand that is being felt at individual golf course facilities –
like City of Rochester golf courses.
• Latent Demand: Overall interest in playing golf remains very high. NGF survey
research indicates that the number of non-golfers who say they are “very interested” in
taking up golf - which had doubled between 2014 and 2018 - increased by an additional
1 million in 2019 to 15.7 million people, and grew robustly again during the 2020
pandemic year to 17 million.
National Golf Industry Overview – Potential Implications for Rochester Golf Courses
It is difficult to conclude how the national trends discussed above will affect any particular golf
course, as we cannot definitively predict which, if any, of these trends will continue. On balance,
however, we believe that a continuation in the growth of beginning golfers, successful activation of
the large cohort of non-golfers that have expressed interest in playing (“latent demand”) by golf
operators and organizations such as National Golf Foundation (through its “Welcome2Golf”
program), and the continued golf course supply correction towards equilibrium should have a
positive effect on Rochester courses, and facilities like Hadley Creek providing a strong “on-
boarding” program for potential new golfers in Rochester (HCGC can be a feeder facility for the
other three City courses).
In terms of the potential long-term impacts of the Covid-19 pandemic, it is too soon to tell what the
lasting effect on golf participation and demand will be. With less competition from other sports and
activities, the pandemic has had a very positive effect on golf demand, with a significant rise in new
and returning golfers manifesting in fuller tee sheets across the U.S. Another outcome has been
higher average green/cart fees for those facilities that are able to practice dynamic pricing. Of
course, those facilities with large food & beverage and, especially, banquet operations suffered the
most, though reduction in expenses has helped to somewhat mitigate loss in revenue. However,
with more and more competing recreation and entertainment activities becoming available in 2021
and beyond, it remains how “sticky” golf’s new customers and demand levels will be.
Packet Pg. 93
1.a
Estimated Local Market Demand

The table below details basic golf market data indicating the magnitude of the local golf demand
(additional support data in Appendix F). We note that this data is based on the permanent
resident population, and is not reflective of any retiree, seasonal resident or visitor populations that
may exist in the Rochester market area.
10-Mile Ring 20-Mile Ring Rochester

Summary of Market Indicators
Downtown Downtown MSA
Golfers
Number of Golfing Households 12,358 16,569 19,032
Number of Golfers 15,935 21,226 24,226
Rounds Potential (resident golfers) 263,615 350,653 402,197
Latent Demand/Interested Non-Golfers 8,934 11,009 12,379
Golf Indices
Golf Participation Index 152 153 149
Golf Rounds Activity Index 152 152 148
Source: Tactician, Inc. and NGF.
• The local Rochester market has a large proportion of high-income households when
compared to the total U.S. An estimated 34% of households in the Rochester MSA
show incomes over $100,000 annually, while 7.5% show income in excess of $200,000,
both a key “sweet spot” for high golf participation and activity (note: total U.S. is 28.5%
over $100,000 and 6.9% over $200,000):
10-Mile Ring 20-Mile Ring
Higher Income Households Downtown Downtown
Rochester MSA
No. Pct. No. Pct. No. Pct.
No. of Households over $100,000 Income 21,118 36.8% 28,041 36.4% 31,186 34.2%
No. of Households over $200,000 Income 5,110 9.0% 6,160 8.0% 6,643 7.5%
• The NGF estimates that only SFGC exceeds 4,000 golfers within two miles of the
course, followed by NHGC with about 2,800 golfers. Both EWGC and HVGC have
fewer than 1,000 golfers residing within two miles of the properties. These golfers are
capable of supporting a large market of golf facilities, and this does not include the
additional market of transient / visiting golfers who come to the area each year.
• Overall, golf appears to have a large impact in Rochester, and the continued success of
the City’s golf courses is likely going to be dependent on the course’s ability to continue
to attract these residents and get that additional one or two rounds per year from
existing Rochester area golfers, plus a few new players and out-of-town guests. NGF
estimates the residents in the Rochester MSA are capable of demanding upwards of
400,000 rounds of golf annually.
Visitor Golf Demand

Earlier we noted about 3.3 million visitors to Rochester, of which about 2.3 million were related to
the Mayo Clinic. These visitors are contributing to the golf course activity in the region. NGF
research shows that roughly one-third of all golfers participate in the activity while traveling, playing
0.557 rounds per day of travel. Based on current golf participation rates, the estimate for potential
tourist golf rounds that are coming to Rochester is close to 50,000+/- rounds annually. Given the
location of Rochester golf courses, it is reasonable to expect City courses could capture a
significant share of this visiting golf activity that is generated from area tourists. As such, it is
important for the City to maintain a strong marketing presence, especially through digital/website
channels, as a couple of thousand visitor rounds could make a big difference in the bottom line.
Packet Pg. 94
1.a
Latent Demand
People who express interest in golf but are not current participants include former golfers and
those who have never tried. The demographic profile of latent demand tends to be more female
and younger than the overall population. Surveys show these golf-interested non-golfers cite
several barriers to entry, including cost and social aspects (no one to play with). The latent
population is comparable to the golfer population, and NGF estimates as many as 12,300
interested non-golfers in the Rochester MSA. Given golf’s participation situation, all golf courses
should have active programming aimed at inviting and “onboarding” prospective new golfers, with
a special focus on Hadley Creek GC and its active beginner programming.
Corporate / Organizational Market Demand

As we saw earlier in this section, the local area is home to one major and several other minor
employers. These employment centers could be potential customers for organized activities such
as outings and leagues, as well as for corporate meetings (breakfasts, etc.) and banquets,
provided ancillary facilities are available to provide these services. These types of activities are an
important supplement to daily fee rounds for public golf courses, especially in today’s
hypercompetitive golf markets.
Local Golf Supply

In Appendix F, NGF summarizes golf course supply by type in the identified 10-mile market
around Rochester golf courses, including demand/supply indices that act as a proxy for measuring
oversupply or undersupply of golf, relative to the US benchmark (US = 100) as well as the
Rochester MSA. NGF observations regarding key golf supply measures for the local market:
SFGC 10- NHGC 10- EWGC 10- HCGC 10- Rochester

Summary of Market Supply Measures
Mile Radius Mile Radius Mile Radius Mile Radius MSA
Number of Total Golf Facilities 9 7 8 6 23
Number of Public Golf Facilities 7 5 7 5 21
Number of Daily Fee 3 1 3 1 17
Number of Municipal 4 4 4 4 4
Public Golf Facilities by Price Point:
0 0 0 0 1
Premium (>$70)
5 4 5 4 5
Standard ($40-$70)
2 1 2 1 15
Value (<$40)
Number of Private Golf Facilities 2 2 1 1 2
Source: Tactician, Inc. and NGF
• There is a total of between 6 and 9 golf facilities within 10 miles of each of the four
Rochester golf facilities, and a total of 23 golf facilities in the Rochester MSA. The vast
majority of these facilities are public, with only two private courses in the MSA and 91%
of the golf facilities open and available to the public.
• We do note some proportions that do not match the national summary. First, we see
that only four of the 23 golf facilities in the Rochester MSA are owned by a municipality
(all City courses), representing about 17% of total golf facilities (compared to 18%
nationally). Second, only one of the public golf courses in the MSA (4.3%) are classified
as “premium” (highest fee), compared to 10.5% for the total U.S. Third, 65% of the golf
courses in Rochester are at the “value” (lowest fee) level, compared to 47% nationally.
In all, the data shows that the majority of golf in Rochester is being sold at lower rates
compared to the total U.S.
Packet Pg. 95
1.a
• Ratio analysis based on national benchmarks shows that the Rochester MSA may be
over-supplied with golf courses, as there are about 51% fewer households available
(unfavorable) to support each 18 holes of golf compared to the national benchmark.
The finding is based on the ratio of golf holes to permanent households, and supports
the need to augment local resident demand and properly service local golfers.
• The net change in golf holes shows the recent contraction of supply in this region. NGF
data shows a contraction of 45 holes in the Rochester MSA in the last 10 years, with
the closure of the Meadow Lakes GC in 2012 as the most proximate to Rochester
courses. This is consistent with a broader national trend of golf course contraction as a
reaction to several factors as noted (declining demand, better use for property, etc.).
• The NGF database shows no other new golf course projects under development in the
Rochester MSA. This indicates that the basic demand/supply balance is expected to
remain fixed for the foreseeable future in this market.
Golf Course Market Supply / Demand Summary

Using the basic measures of golf demand and supply, we note four possible combinations for any
given market area: (1) favorable demand and favorable supply (“potential growth market”); (2)
favorable demand and unfavorable supply (“competitive”); (3) unfavorable demand and favorable
supply (“inactive”); and (4) unfavorable demand and unfavorable supply (“saturated”). The review
of data for Rochester suggests a “competitive” market for golf, with strong demand and
unfavorable supply. Thus, the area is expected to provide some support for public golf operations
in the near future, but with some additional support from an influx of visiting golfers required to help
sustain golf course operations in this market.
Golfers per 18 holes

NGF has also evaluated the relative strength of the market with a comparison to a national
“threshold” of golfers per golf course within 10 miles of a facility. In its 2009 publication “The Future
of Public Golf in America,” NGF hypothesized that the best predictor of a public golf course’s
success was the number of golfers per 18 holes within a 10-mile radius, with 4,000 identified as
the key number for projected financial stability. The NGF has estimated that there are only
about 1,242 golfers per 18-hole course in the Rochester MSA, well below the identified
threshold. As shown in the table below, when each Rochester City golf course is viewed
individually, we see that each is located in a 10-mile ring with a golfer/course ratio that is well
below the standard, ranging from a low of 1,728 golfers per 18 holes at Soldiers Field and 2,572
golfers per 18 holes at Hadley Creek.
Est. No. of Total 18-H Golfers per

10-mile Rings
Golfers Equivalent 18 holes
Total U.S. “Target” for Successful Public Golf 4,000
Northern Hills GC 16,017 7.0 2,288
Eastwood GC 14,739 8.0 1,842
Soldiers Memorial Field GC 15,558 9.0 1,728
Hadley Creek GC 15,435 6.0 2,572
Rochester MSA Overall 24,226 19.5 1,242

Source: National Golf Foundation
Packet Pg. 96
1.a
LOCAL COMPETITIVE GOLF MARKET

NGF has analyzed the public access golf market in the local Rochester area, with particular
emphasis on evaluating the pricing and activity of golf facilities that are proximate and comparable
to Rochester golf courses. On the following pages, we list operating information for a group of
selected competitive golf facilities within the Rochester region. This list was not meant to be totally
exhaustive or to account for all of the potential public golf competition to Rochester, but rather, to
offer a frame of reference in evaluating actual performance of the subject as compared to other
golf facilities noted by City staff and NGF as key competition.
Competitive Public Access Golf Facilities Map

The maps on the next page shows the locations of the facilities selected as comparable to
Rochester courses.
Packet Pg. 97
1.a
Summary Information
The following tables provide summary information for the primary competitors to Rochester golf courses.
Regulation-Length 18-Hole Golf Course Competitors – Summary Information

Location Location Location
Year Front Tee /
Facility Location Type Par/Slope Relative Relative Relative
Open Back Tee to SFGC1 to EWGC1 to NHGC1
Soldiers Field Golf Course Rochester 18H-MU 1927 70 / 121 5,003 / 5,769 -- 2.9 mi 4.9 mi
Eastwood Golf Club Rochester 18H-MU 1972 71 / 132 5,447 / 6,631 2.9 mi -- 7.2 mi
Northern Hills Golf Course Rochester 18H-MU 1976 72 / 130 5,253 / 6,271 4.9 mi 7.2 mi --
Willow Creek Golf Course Rochester 18H-DF 1975 70 / 125 5,043 / 6,061 4.3 mi 5.4 mi 8.3 mi
Oak Summit Golf Course Rochester 18H-DF 1992 70 / 124 5,080 / 6,434 6.4 mi 7.3 mi 10.3 mi
Maple Valley Golf & Country Club Rochester 18H-DF 1964 71 / 117 5,113 / 5,925 9.1 mi 7.7 mi 14.0 mi
Riverview Greens Golf Course Stewartville 18H-DF 1997 67 / 109 3,980 / 5,108 10.1 mi 10.3 mi 14.2 mi
Pine Island Golf Course Pine Island 18H-DF 1994 71 / 128 4,946 / 6,563 15.4 mi 17.5 mi 10.5 mi
St. Charles Golf Club Saint Charles 18H-DF 1991 71 / 117 5,023 / 6,237 21.1 mi 18.3 mi 25.0 mi
The Jewel Golf Club Lake City 18H-DF 2005 71 / 135 4,907 / 7,050 29.2 mi 29.0 mi 26.7 mi
Executive or 9-Hole Golf Course Competitors – Summary Information

Year Front Tee / Location Relative
Facility Location Type Par/Slope
Open Back Tee to Hadley Creek GC1
Hadley Creek Golf Course and Learning Center Rochester 9H-MU 1997 32 / - 1,245 / 2,043 --
Willow Creek Golf Course (Little Willow Exec. Course) Rochester 9H Exec-DF 1975 29 / - 1,260 / 1,434 8.9 mi
Zumbro Valley Golf Club Mantorville 9H-DF 1926 36 / 115 2,592 / 2,755 6.1 mi
Zumbro Falls Golf Club Zumbro Falls 9H-DF 2000 36 / 126 2,679 / 3,268 7.5 mi
Piper Hills Golf Course Plainview 9H-DF 1967 36 / 113 2,652/ 3,086 9.9 mi
Chosen Valley Golf Club Chatfield 9H-DF 1933 35 / 109 2,570 / 2,933 11.8 mi
1. Air miles from subject site, driving distances will likely be greater. 2. Walking course only.
Type: DF – Daily Fee; MU – Municipal; SP – Semi-Private
Packet Pg. 98
1.a
Market Area Rounds and Fee Information

Regulation-Length 18-Hole Competitors
Found below is information regarding the fee structure at the identified key 18-hole regulation-length competitors to Rochester golf
courses for green and cart fees in the peak summer season in 2021.
Regulation-Length 18-Hole Golf Course Competitors - Daily Fee Pricing (as of August 2021)
9-H Green Fee 18-H Peak Time 18-H Midday 18-H Aft./Twi. Seniors
Green Fee Juniors Cart Fee
Golf Facility & Cart Green Fee & Cart Fee Green Fee & Cart Green Fee & Cart & Cart WD/WE 9H/18H
(WD/WE) (WD/WE) (WD/WE) (WD/WE) WD/WE
9H -$26 9H -$10
Soldiers Field Golf Course $29/$29 $47/$47 $47/$47 $47/$47 $10/$15
18H - $41 18H - $20
9H -$26 9H -$10
Eastwood Golf Club $29/$29 $47/$47 $47/$47 $47/$47 $10/$15
18H - $41 18H - $20
9H -$26 9H -$10
Northern Hills Golf Course $29/$29 $47/$47 $47/$47 $47/$47 $10/$15
18H - $41 18H - $20
9H -$25 9H -$10 9H -$9
Willow Creek Golf Course1 $26/$26 $45/$45 $45/$45 $45/$35
18H - $40 18H - $15 18H - $15
$44/$44
Oak Summit Golf Course $29/$29 Monday Special $26 $44/$44 $44/$26 DNA DNA $11/$17
Tu-Th before 11am $26
$41/$41 $41/$41
Maple Valley Golf & Country $41/$41
$28/$28 Specials= M-Th before 2pm Specials= WE after 4pm 9H DNA DNA $10/$15
Club Specials= WE after 2pm $28
& Fri. anytime $28 $15
$39/$39
Riverview Greens Golf
$25/$25 Specials= M-Fri. $30 before $39/$39 $39/$30 (special) DNA DNA $10/$14
Course
11am
$39/$39 $39/$39 9H -$9
Pine Island Golf Course $25/$25 $39/$39 DNA $8/$14
Morning Special $23 Wed-Su after 4pm $25 18H - $13
Mon-Th $13/
St. Charles Golf Club N/A Mon-Thu $26/ Fri- Su $32 Mon-Thu $26/ Fri- Su $32 Mon-Thu $26/ Fri- Su $32 DNA DNA
Fri-Ss $16
The Jewel Golf Club2 N/A Mon-Thu $74/ Fri- Su $94 Mon-Thu $56/ Fri- Su $75 Mon-Thu $39/ Fri- Su $45 $56/$65 $19 / $19 N/A
1. Tax not included
2. Current online booking rates. Dynamic Pricing in effect. (Rates rounded)
N/A – Information not Available. DNA – Does not Apply. WD = Weekday / WE = Weekend
Packet Pg. 99
1.a
Executive-Length of 9-Hole Competitors

Found below is information regarding the fee structure at the identified key 9-hole or executive-length competitors to Rochester golf
courses for green and cart fees in the peak summer season in 2021.
Executive or 9-Hole Golf Course Competitors - Daily Fee Pricing (as of August 2021)
9H Peak Time
9H Midday 9H Aft./Twi. Seniors Green
Green Fee & Cart Juniors Cart Fee
Golf Facility Green Fee & Cart Green Fee & Cart Fee & Cart
Fee WD/WE 9H/18H
(WD/WE) (WD/WE) WD/WE
(WD/WE)
$20.50/$20.50 $20.50/$20.50 $20.50/$20.50 DNA $8/$8 $7.50/-
and Learning Center
Willow Creek Golf Course
$18/$18 $18/$18 $18/$18 DNA $7/$7 DNA
(Little Willow Exec. Course)
9H $20/$25 9H $20/$25 9H $20/$25 WD $5/$10
Zumbro Valley Golf Club DNA DNA
18H $30/$35 18H $30/$35 18H $30/$35 WE $7/$12
Mon-Th $16/
Zumbro Falls Golf Club Mon-Th $16/Fri-Su $21 Mon-Th $16/Fri-Su $16 DNA DNA Included
Fri-Su $21
Everyday 9H/18H
Jr 10 & under $5/free w/adult
9H $25/$27 9H $25/$27 9H $25/$27 9H $22/$22 Everyday
Piper Hills Golf Course Jr 11-15
18H $33/$35 18H $33/$35 18H $33/$35 18H $30/$30 $10/$15
$10/free w/adult
Jr 16-22 $12/15
9H $28/$28
9H $28/$28 9H $28/$28 Everyday
Chosen Valley Golf Club 18H $20/$42 DNA DNA
18H $20/$42 18H $20/$42 $14/$22
Special $10 walking
1. Tax not included
2. Current online booking rates. Dynamic Pricing in effect. (Rates rounded)
Packet Pg. 100
1.a
Membership / Loyalty Card Rates

Found below is information regarding the various membership, season pass or loyalty programs available among identified key
competitors to Rochester golf courses in 2021:
Regulation-Length 18-Hole Golf Course Competitors – Membership & Loyalty Card Pricing (as of August 2021)
Annual Dues Single Annual Dues Senior Member Cart

Golf Facility Junior Trail Fee Other
/ Couple Family Single / Couple Fee (9H/18H)
Soldiers Field GC For 4 Courses Includes all four

$775 / $1,050 Includes all four
Includes all four City City of
Young adults ages 26- City of Rochester
Eastwood Golf Club 30 $525 / $725
of Rochester Courses Rochester DNA DNA
Courses
Futures ages 19-25 $675 / $975 Courses
$1,500
Northern Hills GC $340 Jr age 6-18 $175
Ages 18-29 $325 / Jr. Ages 5-10 Loyalty program -

Willow Creek Golf $650 $110 one seat $295 customers earn points
$1,100 $645 DNA
Course1 Ages 30+ $675 / Jr Ages 11-17 two seat $450 with every dollar
$1,000 $160 spent on green fees
Oak Summit Golf Course $425 per person Daily $16 $9/$15
WD Pass $350 Cart storage
$700 / $900 $900 All children Both Sr. $580 / $700 Jr Ages 7-17 Savings Card $65 +
Maple Valley G & CC Gas $450 $9/$13
Youth ages 18-29 $475 / ages 7-17 Sr./Non-Sr. $580 / $795 $250 $10 per 9H/$15 18H
$600 Electric $510
$475/$800
$1,000 all children one seat $400
Riverview Greens GC Youth ages 18-29 $325 / DNA Jr Ages 6-17 $125 DNA
18 & younger two seat $700
$600
$615/$945 $1,045 all children
Pine Island Golf Course Young Adult Ages 18-25 under age 25 living $535 $140 $350 per seat DNA
$380/- at home
Private cart
$39 full 2021 mbr. Under 12 w/ a Mon-Th $13/
St. Charles Golf Club DNA DNA owners $14 per
$300 Early morning mbr. parent free Fri-SU $16
round
$2,499 (carts not
$1,899 / DNA (cart not included)
included) $3,749 (carts
The Jewel Golf Club1 DNA DNA DNA N/A
$2,649 / DNA (cart included)
included) All children 18 &
younger
1. Tax not included. N/A – Information not Available. DNA – Does not Apply. WD = Weekday / WE = Weekend
Packet Pg. 101
1.a
Executive or 9-Hole Golf Course Competitors - Membership & Loyalty Card Pricing (as of August 2021)
Annual Dues Annual Dues Senior Cart Fee

Golf Facility Junior Trail Fee
Single / Couple Family Single / Couple (9H/18H)

and Learning Center
$375 / - $675 DNA DNA DNA DNA
Willow Creek Golf Course
$300 / $500 $500 DNA DNA DNA DNA
(Little Willow Exec. Course)
$449 /$649
Corporate (4 people) Jr. Ages 11-18
$749 Trail Fee $100 Annual Cart
Zumbro Valley Golf Club $1,200 10% savings $100
Single and Junior $500 Cart Storage $180 Rental $425
Corporate (4 people College $175
+ 2 carts) $1,400
Zumbro Falls Golf Club $275 / $550 DNA DNA DNA N/A N/A
Trail Fee $75
$85
Cart Storage Annual Cart
Piper Hills Golf Course $325 / $425 $465 $300 / $425 College 25 &
Gas $150 Rental $325
under $115
Electric $175
Trail Fee $50 Annual Cart
$520 / $600 $80
Cart Storage Single/Couple
Chosen Valley Golf Club Age 30 and under $640 DNA College 25 &
Gas $195 $245
$300 under $110
Electric $225 Family $345
Packet Pg. 102
1.a
Key Findings – Competitive Golf Market

A summary of general findings regarding the competitive market for Rochester golf courses:
• Based on NGF observations and discussions with area golf course staff, the NGF has
identified two distinct sets of competitive facilities for Rochester golf courses, including
Regulation-length 18-hole courses and executive-length or 9-hole courses. The most
significant public competition by category includes:
Regulation 18-Holes 9-Hole or Executive
Willow Creek Golf Course Willow Creek GC (Little Willow Exec. Course)
Oak Summit Golf Course Zumbro Valley Golf Club
Maple Valley Golf & Country Club Zumbro Falls Golf Club
• Total rounds activity among regulation-length 18-hole golf courses in Minnesota had
been declining since a recent peak around 2008, with average rounds played at 26,231 in
2019 with 75% of 18-hole courses in the state exceeding 19,450 rounds. Rounds activity
is on the rise in 2021, with several 18-hole facilities reporting rounds close to 30,000. The
leader in the Rochester for rounds activity are the City’s courses, with SFGC (29,840)
and EWGC (27,684) as the leaders in this market in 2020. For the shorter executive
courses, the 16,000+ rounds hosted by HCGC is the leader in the market.
• Green fees among the competitive set had some variation, with the highest fees
observed at The Jewel GC – the only course with higher fees than Rochester’s 18-hole
courses. Willow Creek, Oak Summit and Maple Valley all have lower fees that Rochester,
but by only $2-$6 per round (with cart).
• This green fee market is somewhat rigid in Rochester, as the market competitors are not
offering a lot of common discounts for day of week, time of day, juniors or seniors.
Considering this, Daily golf playing fees in the Rochester market are falling between a
low of $26 (with cart) for an 18-hole twilight round at Oak Summit and St. Charles, up to
$94 for a weekend round (with cart) at The Jewel. Fees for 9-hole rounds are as low as
$9 for juniors at Pine Island up to $29 at Rochester courses.
• Pre-paid green fee arrangements (season passes) are common at public golf courses in
this market. Among the primary competitors, Willow Creek, Maple Valley, Riverview
Greens and Pine Island all have an unlimited annual family pass available for $1,100 or
less. Oak Summit is the lowest priced in the market, offering an unlimited annual single
membership for $425. The Jewel is the highest priced membership among the public
courses at $2,499 for a single unlimited.
EXTERNAL FACTORS SUMMARY

The NGF market analysis shows that while golf is not a major component of life in Rochester, the
subject City golf courses are well-known and operate as the facility of choice for many budget-
conscious area golfers. The market data on golf demand and supply appear to be generally
unfavorable for the continued operation of all four City facilities, even though Northern Hills,
Eastwood and Soldier Fields golf courses are well positioned in their respective market niches. As
such, the NGF has a reasonable expectation that while this market will continue to provide support
for City golf facilities, the total volume to support all four courses may not be assured. Other key
findings from NGF’s market analysis include:
Packet Pg. 103
1.a
• The demographic profile of the Rochester area is consistent with strong golf demand.
The age and income characteristics of the population are consistent with high golf
participation, and the local economy also has elements that correspond to durable golf
demand. In addition, the region has a high rate of in-migration for visitors. Although
Rochester is not a top tourist destination, there may be opportunity attract the
occasional non-local player by enhancing the marketing and awareness of the City’s
high quality golf facilities (especially at SFGC due to location and EWGC/NHGC due to
quality).
• From a macro standpoint, while some trends continue to create headwinds for golf
operators, overall golf participation in the U.S. appears to be stabilizing and golf is far
from “dead.” While demand for golf strengthened greatly during the Covid-19 pandemic
in 2020, NGF research shows that golf was gaining some momentum in 2019 and the
sport remains popular and is fortunate to have a deep well of interested prospects.
Golf’s chief challenge remains getting more of those non-golfers who express interest
in playing (‘latent demand’) to actually give golf a try as well as converting more
beginners into committed participants. Additionally, operators must find a way to draw
young adults (i.e., millennials) through targeted programming and events, including
Hadley Creek GC course and range events.
• While we note the signs of strong golf demand, the supply of golf courses in the market
area is also strong and there are several key golf courses that are competing for the
same golf customer, including some internal competition between Rochester
courses. Our review of Rochester showed a competitive market for golf, with the total
number of golfers per 18-holes in the Rochester MSA to be much lower than the
NGF-identified threshold that is consistent with success. This finding suggests a
possible over-supply of golf courses all competing around the same price-quality
threshold.
• The most important local competition to Rochester courses includes other public golf
facilities operating close to City of Rochester courses. Given Rochester’s strong
existing price-quality market position and the City’s desire to fit in the upper-middle
range of fees in this competitive market, it appears to NGF that at least one of EWGC
or NHGC could be positioned in the higher-end of the market to create some internal
segmentation in the Rochester system. Given the prime location of SFGC, this facility
has great potential to be upgraded, although this would require a significant investment
as previously documented by NGF.
• Finally, all golf facilities face a couple of other factors beyond their control: First, a high
fixed expense structure that is growing more rapidly than revenues (e.g., ability to raise
fees is constrained). Second, the challenge of attracting younger adults and facing
attrition from older players. Third, golf is always at the mercy of unexpected events like
extreme weather and/or economic recession (pandemic).
Packet Pg. 104
1.a
Future Considerations for City of Rochester

Golf Courses
The City of Rochester operates its golf courses through a combination of City-run maintenance
and multiple concession contracts for pro shop and F&B operations. An NGF survey of nearly
1,000 municipal golf courses in the U.S. in 2020 (40% of the total 2,500) found the Rochester
structure has some self-operation elements that are still very common in municipal golf operation
in the county, with approximately 56% of U.S. muni golf courses operating with some form of
self-operation. In considering alternatives, the NGF finds it unlikely that Rochester could improve
its fiscal position in golf by changing to an alternate form of operation given the small revenue
profile of City courses documented in this review. However, to improve understanding among
City officials, the NGF has provided a summary of alternatives the City can consider for golf
operations and our recommendation for the future operation of City golf courses.
ALTERNATE STRUCTURE CONSIDERATIONS

In this section, the NGF team provides a review of options available to the City for the continued
operation of Rochester Golf courses. In our experience, there is no ideal operating scenario that fits
all situations, and each public entity must arrive at its own approach to golf operations. The most
common options are shown below (these are not intended to be exhaustive, as there are hybrids),
presented in order from most direct City involvement to the least direct City involvement:
Structure Options
1. Full Self-Operation. This would be an extreme option for Rochester, but the concept of
self-operating a municipal golf course is still very common. Under this option, all staff
assigned to operate and maintain the golf course would be City employees. A key
challenge in this option is finding and retaining qualified personnel, especially in senior
positions like manager and superintendent. The greatest advantage to this structure is
direct City control of the operation for maximum benefit to the community, while the
disadvantage is mostly economic, as the City must fund all aspects of the golf facility
operations, including all labor. As seen with most options for government-owned golf
courses, municipalities still maintain significant economic risk, even when some of these
alternate “privatization” options are implemented, and this is likely a primary reason why
the majority of public sector golf courses remain self-operated.
2. Concession Agreements. This is the “status quo” for Rochester, as the City is using
some form of this structure. The key areas of public golf operation include pro shop, F&B,
and course maintenance, and one option is for the City to expand the contracting to
include golf course maintenance in addition to the pro shop and F&B segments already
under contract. The advantage is shifting some risk and payroll to a private entity, but the
majority of economic risk is still maintained by the City. The most common concession
agreements for public golf include:
a) Contract for Food / Beverage Services involves hiring a separate operator for the
F&B service, either through fixed fee or percentage compensation to the operator (as
at present). One new consideration for Rochester is to invite a new vendor to make
some investment in facilities and/or equipment in exchange for a longer-term
agreement. However, it is unlikely the City will find a vendor willing to fund all needed
improvements like the new clubhouse at Eastwood GC.
Packet Pg. 105
1.a
b) Contract for Maintenance Services involves contracting with a private entity to

provide golf course maintenance services in exchange for a pre-determined fee.
c) Labor Contracts involves using a third-party to provide basic labor services to
support senior operations and maintenance staff. The City currently uses this
structure in providing support staff for golf maintenance labor.
3. Full-Service Management Contract. The concept of a management agreement is for
the City to hire a private management entity to operate all aspects of Rochester Golf
courses in exchange for a management fee, typically around 4-5% of total revenue. The
City is still earning all revenues, is responsible for all expenses (salaries, maintenance,
liabilities, capital) and pays a management fee to an operator. Some advantages to this
strategy are a shifting of labor expense from a public to a private structure, and the
expected benefit of professional management, including access to national purchasing
and marketing programs. The potential disadvantages are some loss of City control, the
fixed fee for service (regardless of yearly variations in performance), and the continued
responsibility of the City for all expenses, capital investment and shortfalls in revenue.
This option tends to favor muni golf systems with higher revenue, as it may be difficult to
find a partner willing to take on a system like Rochester where the total revenue is too
low to allow for effective earnings by a private vendor.
4. Hybrid Contract. A hybrid contract combines some of the advantages of a lease with
those of a management contract. The most common difference from the management
contract is that a variable management fee is included, allowing the operator and City to
share in the operating risk. Advantages are similar to the management contract with a
shifting of payroll, adding expertise, but reducing some City control. Again, the Rochester
system revenue may be too low to allow for effective earnings by a private vendor.
5. Operating Lease(s). The only true “privatization” option is to lease the golf operation (or
a single facility) to a private operator in exchange for a defined lease payment. The lease
can be established to include requirements, a fixed fee to the City regardless of
performance, as well as defined standards and/or restrictions on fees. The ideal
advantage of this option is total privatization of the golf operation and full shifting of risk
away from the City of Rochester, as well as possible large-scale investment in
improvements. The disadvantage is that the operator has control of the City’s golf
assets, and decisions on maintenance, which may put the physical integrity of City golf
courses at risk. One common reason cities will enter into this form of agreement is to
fund large-scale capital improvements.
Most Viable Considerations

Based on our review of the various operational considerations for the City of Rochester, NGF has
identified the most viable operating structures available for the four courses. The NGF can quickly
eliminate full self-operation, as the City is not well positioned to take on this employment “footprint.”
The NGF also sees the full-service management or hybrid contracts as a poor fit in Rochester due to
the small revenue profile of the City’s golf facilities. As a result, the best options for Rochester Golf
operations and maintenance would be:
• Continued Pro Shop/F&B Concessions and Maintenance Self-Operation. The City

can continue to operate the golf facilities as current, with no changes in structure. Over
time, adjustments can be made as needed in the pro shop / F&B agreement to address
unique situations as they arise, like the Covid-19 crisis in 2020-21 and its potential impact
on concession operations and revenue.
Packet Pg. 106
1.a
• New Maintenance Contract. The City could consider hiring an independent company to
provide maintenance services for its golf courses. This agreement can be constructed to
provide for labor, materials and equipment, and result in a flat fee to the City. However, it
is unlikely that this fee would be lower than the current City spending on golf
maintenance, but could help the City get a better quality of maintenance for the same
expense (although this is not certain). This would represent a significant change in City
golf operations and would impact the existing maintenance staff’s structure,
compensation, hours and benefits. The contract can be for a set period (usually 2-5
years) and include provisions such as:
▪ Quality of playing areas subject to independent inspection
▪ Labor productivity management
▪ Agronomic guidelines and minimum applications requirements
• Lease Option. An outright lease of one, several or all City golf courses may not match
the stated the City’s public purpose objectives. However, NGF notes that if the City opts
to pursue a lease for the golf courses, it should be pursued only if the new lease partner
will bring capital to the agreement and complete some (or all) of the upgrades identified
by NGF. The NGF concludes that a successful lease option is ultimately going to be
dependent on the City’s ability to find a private-sector partner interested in this type of
lease, especially when it requires a large up-front capital commitment.
NGF Recommendation
The NGF team recommends that Rochester make no change to its operating structure at this
time and retain its current contractor for pro shop/F&B services and provide golf course
maintenance with a mix of full-time and part-time City staff. This is the structure that provides
the most control to the City, but some enhancement of staff size is recommended. In short, the only
reason to change this structure is if the change will provide needed capital to complete property
upgrades that are needed in Rochester, especially the clubhouse at EWGC.
Staff Changes
Although NGF recommends no change in basic structure, the City may find that some changes in
the mix of staffing may help improve facility conditions and revenue performance. It is expected that
the changes noted below will alter the total staff roster and payroll requirements, but will lead to an
improved product quality at all four facilities and enhanced customer service at NHGC and EWGC.
The key modifications to golf operation staffing the City should consider include:
• Increase the golf maintenance staff by at least one additional FTE (2,000 hours) at each
location, either with additional full-time or part-time staff, to help improve golf conditions.
• Add new Assistant Golf Professional positions at NHGC and EWGC to allow the golf
professionals to step away from extended counter duties and focus on growing golfers
and marketing facilities. This change is deemed less important at SFGC, where the
customer base requires much less attention and facility marketing.
SPECIFIC PHYSICAL RECOMMENDATIONS

The NGF recommendations for enhancing the physical plant of City golf facilities considers specific
improvements that can be made to each facility that could improve performance and provide for
lang-term sustainability of City golf assets. It is clear that the City’s decision on what to do with the
noted deficiencies in the Eastwood clubhouse will be an important component for any future plan for
this golf system. The NGF vision for the future of the Rochester City golf courses considers the most
ideal physical condition of each facility so as to maximize the potential economic performance.
Packet Pg. 107
1.a
Completion of Capital Investment Considerations

The proposed capital plan for Rochester Golf courses over the next five years was documented previously in this report and
summarized in the table below. This review assumes City focus on key needs at Eastwood and Northern Hills GC’s, with limited
investment at Hadley Creek and Soldiers Field. This is a reflection of the importance of Eastwood and Northern Hills to the system, and
the smaller requirements at Hadley Creek. The lower investment at Soldiers Field is a result of uncertainty about that facility and
whether the City is willing to consider a more comprehensive upgrade to the golf course. The cost projections presented below are
based on the NGF team’s estimates for each capital project, and the City is encouraged to solicit actual bids to research to specific
project costs.
City of Rochester Golf System – NGF Recommended 5-Year Capital Improvement Projects (2022-2026)
Eastwood GC Hadley Creek GC Northern Hills GC Soldiers Field GC Totals

Low High Low High Low High Low High Low High
Capital Improvement Project
Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
Property Master Plan $25,000 $40,000 $25,000 $40,000
Clubhouse Replacement 1,545,000 1,865,000 1,545,000 1,865,000
Irrigation Pump Station Improvements 20,000 30,000 20,000 30,000
Bunker Enhancement & Reduction 120,000 150,000 120,000 150,000
Tree Trimming/Thinning 50,000 100,000 50,000 100,000 100,000 200,000
Equipment Program 100,000 150,000 100,000 150,000 200,000 300,000
Creek Improvements 20,000 25,000 20,000 25,000
Maintenance Equipment 15,000 20,000 15,000 20,000 30,000 40,000
Drainage Improvements 200,000 300,000 200,000 300,000
Tee Improvements / New Forward Tees 45,000 52,500 45,000 52,500
Maintenance Facility Repairs* 144,000 240,000 144,000 240,000
Entrance and Parking Lot 152,000 190,000 152,000 190,000
Patio Enhancement / Covering 120,000 150,000 120,000 150,000
Cart Storage Cover 20,000 30,000 20,000 30,000
Combined City Total $1,860,000 $2,335,000 $35,000 $45,000 $691,000 $1,032,500 $155,000 $200,000 $2,741,000 $3,612,500
All figures are NGF estimates based on architect’s input and other similar projects completed in the last 3 years that have been provided to allow for preliminary planning. These amounts may or may not
reflect actual costs for the City of Rochester, and the City should engage appropriate research to cost out specific projects. *Maintenance facility repairs at NHGC – not a new facility.
Packet Pg. 108
1.a
New Eastwood GC Clubhouse

In consideration of possible large-scale capital upgrades that the City could undertake to improve
and expand the clubhouse facility at Eastwood GC, NGF offers a summary of likely implications of a
replacement program. This assumes a full clubhouse replacement at EWGC to provide expanded
indoor space for events, tournaments and banquets, as well as additional restrooms and expanded
pro shop space.
At Eastwood, the clubhouse replacement program could come as part of a full site review that
provides options for a redesign of the site and addition of practice facilities, along with a new
clubhouse. The NGF has not completed a full due-diligence review of these options, and
recommends the City undertake a more comprehensive Clubhouse Feasibility Study and
Banquet Market Analysis.
The basic implications of clubhouse replacement at EWGC include the following:
• The City should expect the costs of the new clubhouse to be large, likely in excess of
$1.5 million when considering all direct, supporting and site planning costs for the
building plus additional costs for engineering and site work, plus changes to parking and
the overall site presentation.
• The City should also expect that the development of a new clubhouse will require the use
of a temporary facility to support operations during a new clubhouse development period
(18-24 months).
• NGF data review in other locations shows improvement in golf revenue from a new and
expanded clubhouse operation, with as many as 1,000 to 2,000 additional rounds from
tournaments and upwards of 5% to 10% improvement in overall average rate per round
on green fees.
• In addition, a new and expanded clubhouse would generate direct revenue from
banquets, parties, weddings and other non-golf events, assuming a return to normal
business practices after Covid-19.
• Standard golf facility ancillary revenues tend to improve when new clubhouses are added
to existing golf courses. Total revenue derived from merchandise, food, beverage and
alcohol sales (exclusive of banquet business) can increase by 15-20% as a result of
increased spending by golfers, but also the ability to attract additional non-golf lunch and
dinner business. We note that while these revenues are earned by contracted vendors in
the Rochester system, some change in agreement structure could allow the City to
participate in these improvements.
• Operating expenses should be expected to increase upon the opening of a new
clubhouse facility. Thus, in addition to potential capital construction retirement (debt
service) costs, the City should also assume there will be increased direct operational
expense costs as well.
Packet Pg. 109
1.a
Soldiers Field GC Modification or Enhancement

The Soldiers Field features and location offer the City an opportunity to re-think the golf facility and
the future of golf on this property. The NGF has identified two key areas of potential modification,
including: (1) Full golf renovation and upgrade; or (2) reduction to a 9-hole course with new practice
features. It is expected that City investment in these changes would have the following implications
on activity, revenue and expenses at SFGC:
Renovation and Upgrade

• The City should expect that any investment to fully renovate SFGC would be large, likely
exceeding $5.0 million when considering all direct, supporting and site planning costs.
• While it is possible to significantly enhance the overall quality of golf at SFGC, the size of
the 100-acre property and basic fixed site features (Zumbro River, adjacent roadways,
etc.) will limit the potential of this site. While the course could be stretched slightly from its
current maximum of 5,700 yards, it is unlikely that a true full-length championship golf
course (6,500 or 6,700 yards) could be created on this site.
• Even with enhancements, the new SFGC would not include key elements that are
commonly associated with success in high-end public golf, such as a driving range and
larger clubhouse. Even f enhanced, SFGC would still lag behind NHGC and EWGC in
terms of marketability in the premier golf segment.
• While a full economic analysis has not been completed for this engagement, it is not
expected that rounds and revenue generated at an enhanced SFGC would exceed the
28,000-30,000 rounds and $450,000-$500,000 total facility revenue currently generated
at Eastwood GC, which is located less than three miles way.
Reduction to a 9-Hole Golf Course

• The City could reduce Soldiers Field to nine holes, possibly with a new driving range.
While there are options, it is assumed that there is a sequence of nine existing golf holes,
along with areas that could be converted to driving range/practice space, available in the
site program that currently exists, thus requiring limited modification to achieve.
• Again, the basic fixed site constraints impact this decision as well – most notably the
Zumbro River bisecting the property. A new 9-hole course could:
o Be situated on the north side of the River in closer proximity to the clubhouse.
However, there is only 30+/- acres on the north side of the River, not enough for
anything more than a 9-hole par-3 golf course
o Be situated on the south side of the River, thus away from the clubhouse and
parking. While the remining 70+/- acres could support a regulation 9-hole course
(and possibly a driving range), the location will require golfers to walk or ride
across the river to utilize the golf amenities.
• It is expected that this change would make the facility less desirable to golfers and the
course would likely retain only its most ardent customers, mostly associated with one of
the several 9-hole leagues that currently use the facility.
• Traditionally, 9-hole courses that were reduced from 18 holes retain approximately 40%
of facility revenue and about 60%-70% of the expense. Given that SFGC is already
operating with a low expense profile, it is hard to imagine the new expenses at a 9-hole
SFGC would be much different than the current level, as the facility will still need a FT
golf pro and superintendent, plus additional PT staff at current levels.
Packet Pg. 110
1.a
Rochester City Golf Courses - Preliminary

Financial Projections
As part of this NGF study effort, the consultants have prepared an analysis to show the potential
economic performance of the City of Rochester golf facilities over the next five years of operation. In
this section, the economic potential of the City’s golf system is evaluated and summarized, with
estimates of individual facility and system-wide performance for the next five years. All NGF
projections are based on a set of assumptions that may or may not become reality. We feel that
these projections represent the best effort to create a “fair estimate of performance” for these
facilities based on our complete review of each Individual operation.
PROJECTED PERFORMANCE – ROCHESTER GOLF (2022-2026)

NGF has created a cash flow model for all four Rochester golf facilities, assuming continued
operation with changes as presented. Each facility is reviewed separately, with a system summary
provided for review. The assumptions that drive the NGF projections are outlined below. The most
important NGF assumptions that apply to all facilities include:
Basic Assumptions
• The overall economic condition remains stable, without any sizable increase or decrease
in the greater Rochester, area economy, employment, or visitation.
• Each City golf facility will continue with the presence of contract golf professionals
(employed as full-time) and part-time golf service staff in four pro shops, plus senior
maintenance staff retained as full-time City employees and additional maintenance staff
as part-time labor (with additional positions as recommended).
• NGF has assumed a basic inflation factor of 1.5% for average revenue and 2.5% for all
expense categories.
• The marketing of the Rochester golf courses is enhanced with a marketing budget of at
least $18,000 for the golf system beginning in 2022, possibly increasing to over $27,000
by 2025 if facilities are upgraded as estimated in the NGF capital plan.
• NGF has prepared financial projections based on blended average for green fees in line
with historical trends at each location. System-wide season pass fees are estimated by
category, with unique estimates for regular, senior, young adult/future and junior passes,
plus the Patron Card.
• Approximately 75% of revenue earned from the rental of power carts is assumed to
accrue to contract golf professionals who also pay for the cart fleets and all costs
associated with their operation. The remaining 25% of cart revenue is assumed to accrue
to the City.
• Total revenue for additional ancillary items such as merchandise, food, beverage and
instruction are assumed to accrue to the contract vendor and have not been projected in
this analysis. The estimates do include the commissions from golf professional
operations that accrue to the City.
Packet Pg. 111
1.a
Projected Performance – City of Rochester Golf Administration (2022-2026)

The NGF projection for golf administration mostly centers around the City’s sale of season passes.
Admin operating expenses are based on historical patterns with the largest items related to
marketing and professional contracts & services. The assumptions for these projections over the
next five years:

Projected Season Pass Sales and Average Rate (2022-2026)
2022 2023 2024 2025 2026
Amt. Avg. Amt. Avg. Amt. Avg. Amt. Avg. Amt. Avg.
Passes / Patron Cards
Sold Rate Sold Rate Sold Rate Sold Rate Sold Rate
Regular Membership 250 $720 255 $731 260 $742 262 $753 264 $764
Senior Membership 370 $695 375 $705 380 $716 382 $727 384 $738
Young Adult / Futures 275 $330 285 $335 290 $340 292 $345 294 $350
Junior 165 $115 167 $117 169 $118 171 $120 173 $122
Patron Card 260 $75 260 $76 260 $77 260 $78 260 $80
Total 1,320 1,342 1,359 1,367 1,375
Rochester Golf Admin – Pro Formal Analysis (2022-2026)

The full admin pro forma analysis is shown below. We note that all figures have been rounded to the
nearest $100 for simplicity:
City of Rochester Golf Administration

2022 2023 2024 2025 2026
Total Passes / Cards 1,320 1,342 1,359 1,367 1,375
Regular Membership $180,000 $186,400 $192,900 $197,300 $201,700
Senior Membership 257,200 264,500 272,100 277,600 283,300
Young Adult / Futures 90,800 95,500 98,600 100,800 103,000
Junior 19,000 19,500 20,000 20,600 21,100
Patron Card 19,500 19,800 20,100 20,400 20,700
Total Revenue $566,500 $585,700 $603,700 $616,700 $629,800
Operating Expenses
Employee Sal. & Benefits $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0
Professional & Contract Svcs. 10,000 10,300 10,600 10,900 11,200
Adv., Pub & Print 10,000 10,300 15,000 15,400 15,800
Materials & Supplies 2,000 2,100 2,200 2,300 2,400
Vehicle/ Eq. Replacement 7,000 7,200 7,400 7,600 7,800
Net Other 500 500 500 500 500
Total City Expense $29,500 $30,400 $35,700 $36,700 $37,700
Operating Income (Loss) $537,000 $555,300 $568,000 $580,000 $592,100

Source: NGF – 2021.
Packet Pg. 112
1.a
Projected Performance - Eastwood GC (2022-2026)

The NGF projection for Eastwood GC assumes the items noted above, along with the following
additional assumptions for the projected EWGC performance over the next five years:
• It is assumed the facility will operate ‘as-is’ through 2022 with some capital expenses and
planning for a new clubhouse. The course will experience some disruption in 2023 during
clubhouse demolition and new construction, followed by the re-opening in 2024-2026. If
the City were to add a new and larger clubhouse to EWGC, there would be a basis to
project rounds growth. Rounds projected by type for the NGF model for the next five-
years:
Eastwood GC
Projected Rounds of Golf (2022-2026)
As-is/plan CH Construction CH Re-open All Done All Done
Eastwood 2022 2023 2024 2025 2026
Daily Fee 7,500 6,000 8,000 8,000 8,000
Season Pass 20,000 18,000 21,000 21,000 21,000
Patron Card 2,500 2,500 3,000 3,000 3,000
Total 30,000 26,500 32,000 32,000 32,000
• Total average revenue per round is estimated based on historical trends in green and
cart fees. The historical blended average at EWGC shows $25.00 per round for daily fee
rounds, $10.00 per round for patron cards and $0.25 per round for the City’s cart use fee.
Additional revenue to the City from golf professional commissions average $1.25 per
round.
• Operating expenses for EWGC are based on historical patterns of staffing, materials and
direct cost of sales, with adjustments as noted in previous assumptions. Total labor cost
is assumed to increase back to $225,000 in 2022 and over $255,000 in 2024 after a new
clubhouse is opened.
• The marketing of the Rochester Golf courses is enhanced, with a marketing budget of
$2,000 assumed for EWGC, growing to $5,000 for the ‘grand re-opening’ in 2024.
• An additional $2.335 million in capital expenditures over the five years shown is assumed
for EWGC, based on NGF estimates presented in this report.
Packet Pg. 113
1.a
Eastwood GC – Pro Formal Analysis (2022-2026)

The full pro forma analysis of EWGC is shown below. We note that all figures have been rounded to
the nearest $100 for simplicity:
Eastwood Golf Club

As-is/plan CH Construction CH Re-open All Done All Done
2022 2023 2024 2025 2026

Rounds 28,500 26,500 32,000 32,000 32,000
Reg. Green Fees $187,500 $152,300 $206,000 $209,100 $212,300
Patron Green Fees 25,000 25,400 30,900 31,400 31,800
Cart Use Fee 7,500 6,700 8,200 8,400 8,500
Pro Commissions 37,500 33,600 41,200 41,800 42,500
Misc. 800 700 800 800 800
Total Revenue $258,300 $218,700 $287,100 $291,500 $295,900
Operating Expenses
Employee Sal. & Benefits $225,000 $230,600 $255,000 $261,400 $267,900
Utilities 50,000 51,300 52,600 53,900 55,200
Adv., Pub & Print 2,000 0 5,000 5,100 5,200
Net Other 2,000 2,100 2,200 2,300 2,400
Total City Expense 438,000 447,000 490,700 503,000 515,500
Operating (Loss) ($179,700) ($228,300) ($203,600) ($211,500) ($219,600)

Other Items:
Capital Expenditures ($110,000) ($1,825,000) ($175,000) ($150,000) ($75,000)
Other Add-In Revenue (sale/rental of
property, private sources, etc.)
$0 $0 $0 $0 $0
Net Income (Loss) ($289,700) ($2,053,300) ($378,600) ($361,500) ($294,600)

Packet Pg. 114
1.a
Projected Performance - Northern Hills GC (2022-2026)

The NGF projection for Northern Hills GC is based on the following additional assumptions:
• The key element for Northern Hills projections is the drainage project, which NGF
assumes for 2022 while planning for the EWGC clubhouse replacement is underway.
This way, one of the championship 18-hole courses is open while construction is ongoing
at the other. NHGC will experience some disruption in 2022 during the drainage project,
followed by a period of modest growth due to enhanced capacity with improved drainage.
Rounds projected by type for the NGF model for the next five-years:
Northern Hills GC
Drainage Tees Maintenance Parking Other
Northern Hills 2022 2023 2024 2025 2026
Daily Fee 3,500 7,500 7,000 7,000 7,000
Season Pass 16,000 19,000 18,000 18,000 18,000
Patron Card 2,500 3,000 3,000 3,000 3,000
Total 22,000 29,500 28,000 28,000 28,000
• Total average revenue per round is estimated based on historical trends in green and
cart fees. The historical blended average at NHGC shows $22.50 per round for daily fee
rounds, $10.00 per round for patron cards and $0.25 per round for the City’s cart use fee.
Additional revenue to the City from golf professional commissions average $0.90 per
round.
• Operating expenses for NHGC are based on historical patterns of staffing, materials and
is assumed to increase back to $225,000 in 2022.
• An additional $1.032 million in capital expenditures over the five years shown is assumed
for NHGC, based on NGF estimates presented in this report.
Packet Pg. 115
1.a
Northern Hills GC – Pro Formal Analysis (2022-2026)

The full pro forma analysis of NHGC is shown below. We note that all figures have been rounded to
the nearest $100 for simplicity:

Drainage Tees Maintenance Parking Other
2022 2023 2024 2025 2026

Rounds 21,500 27,500 28,000 28,500 29,500
Reg. Green Fees $78,800 $171,300 $162,300 $164,700 $167,200
Cart Use Fee 5,500 7,500 7,200 7,300 7,400
Driving Range 38,500 52,400 50,500 51,200 52,000
Pro Commissions 19,800 26,900 26,000 26,400 26,700
Misc. 600 700 700 700 700
Total Revenue $168,200 $289,300 $277,600 $281,700 $285,800
Operating Expenses
Utilities 32,000 32,800 33,600 34,400 35,300
Adv., Pub & Print 2,000 2,100 2,200 2,300 2,400
Net Other 2,000 2,100 2,200 2,300 2,400
Operating (Loss) ($225,800) ($114,600) ($136,400) ($142,800) ($149,500)

Other Items:
Capital Expenditures ($330,000) ($82,500) ($270,000) ($220,000) ($130,000)
$10,000 $10,000 $10,000 $10,000 $10,000
Net Income (Loss) ($545,800) ($187,100) ($396,400) ($352,800) ($269,500)

Packet Pg. 116
1.a
Projected Performance - Soldiers Field GC (2022-2026)

The NGF projection for Soldiers Field GC is based on the additional assumptions noted below. This
projection assumes continued operations “as-is” at SFGC, with no adjustment in physical space
under the options presented earlier.
• SFGC will likely absorb some of the demand that may go unserved at NHGC during the
drainage project in 2022 and at EWGC during clubhouse construction in 2023. Rounds
projected by type for the NGF model for the next five-years:
Soldiers Field GC
No Major No Major
Equip. Cart Storage Patio
CIP CIP
Northern Hills 2022 2023 2024 2025 2026
Daily Fee 8,000 8,000 7,000 7,000 7,000
Season Pass 21,000 21,000 20,000 20,000 20,000
Patron Card 2,500 2,500 2,500 2,500 2,500
Total 31,500 31,500 29,500 29,500 29,500
• The historical trend in green and cart fees results in a blended average at SFGC of
$21.50 per round for daily fee rounds, $10.00 per round for patron cards and $0.25 per
round for the City’s cart use fee. Additional revenue to the City from golf professional
commissions average $0.90 per round.
• Operating expenses for SFGC are based on historical patterns of staffing, materials and
is assumed at $200,000 in 2022.
• An additional $175,000 million in capital expenditures over the five years shown is
assumed for SFGC, based on NGF estimates presented in this report.
Packet Pg. 117
1.a
Soldiers Field GC – Pro Formal Analysis (2022-2026)

The full pro forma analysis for SFGC is shown below:
Soldiers Field Golf Course

Equip. Cart storage Patio No Major CIP No Major CIP
2022 2023 2024 2025 2026

Rounds 31,500 31,500 29,500 29,500 29,500
Reg. Green Fees $172,000 $174,600 $155,000 $157,400 $159,700
Cart Use Fee 7,900 8,000 7,600 7,700 7,800
Pro Commissions 28,400 28,800 27,400 27,800 28,200
Misc. 800 800 800 800 800
Total Revenue $234,100 $237,600 $216,600 $219,800 $223,000
Operating Expenses
Utilities 50,000 51,300 52,600 53,900 55,200
Adv., Pub & Print 2,000 2,100 2,200 2,300 2,400
Net Other 2,000 2,100 2,200 2,300 2,400
Operating (Loss) ($132,900) ($138,700) ($169,100) ($175,700) ($182,500)

Other Items:
Capital Expenditures ($15,000) ($10,000) ($150,000) $0 $0
$1,000 $1,000 $1,000 $1,000 $1,000
Net Income (Loss) ($146,900) ($147,700) ($318,100) ($174,700) ($181,500)

Packet Pg. 118
1.a
Projected Performance - Hadley Creek GC (2022-2026)

The NGF projection for Hadley Creek GC is based on the following additional assumptions that
reflect the unique nature of this golf center facility:
• Hadley Creek has shown the most growth in activity in the City system the last few years,
increasing rounds from 13,900 in 2019 to nearly 18,000 in 2021 (29% increase). The
NGF assumes both golf rounds and range activity will continue this trend, although a
small 9-hole executive course like this rarely hosts more than 20,000 total rounds.
Rounds projected by NGF for HCGC:
Hadley Creek GC
Creek Repairs No Major CIP No Major CIP No Major CIP No Major CIP
Hadley Creek 2022 2023 2024 2025 2026
Daily Fee 7,000 7,500 8,000 8,000 8,000
Season Pass 9,000 9,000 9,000 9,000 9,000
Patron Card 2,000 2,000 2,000 2,000 2,000
Total 18,000 18,500 19,000 19,000 19,000
• The historical revenue trend at HCGC shows a blended average of $8.50 per round for
daily fee rounds, $10.00 per round for patron cards and $0.13 per round for the City’s cart
use fee. Additional revenue to the City from golf professional commissions average $0.90
per round.
• Range activity is expected to follow the recent pattern of 19% to 25% annual increases in
revenue. NGF is projecting a more conservative 10% annual growth in range revenue per
round in 2022 before stabilizing in 2023-2026.
• Operating expenses for HCGC are based on historical patterns of staffing, materials and
is assumed to increase back to $105,000 in 2022.
• An additional $45,000 million in capital expenditures over the five years shown is
assumed for HCGC, based on NGF estimates presented in this report.
Packet Pg. 119
1.a
Hadley Creek GC – Pro Formal Analysis (2022-2026)

The pro forma analysis of HCGC is shown below:

Creek Repairs No Major CIP No Major CIP No Major CIP No Major CIP
2022 2023 2024 2025 2026

Rounds 18,000 18,500 19,000 19,000 19,000
Reg. Green Fees $59,500 $64,700 $70,100 $71,100 $72,200
HC Membership 17,300 18,700 20,100 21,600 22,000
Cart Use Fee 2,300 2,300 2,400 2,500 2,500
Driving Range 58,500 61,000 63,600 64,600 65,500
Program Fees 22,500 23,500 24,500 24,800 25,200
Pro Commissions 16,200 16,900 17,600 17,900 18,100
Total Revenue $196,300 $207,400 $218,900 $223,400 $226,700
Operating Expenses
Utilities 20,000 20,500 21,000 21,500 22,000
Adv., Pub & Print 2,000 2,100 2,200 2,300 2,400
Net Other 2,000 2,100 2,200 2,300 2,400
Operating (Loss) ($5,700) $300 $6,600 $5,700 $3,500

Other Items:
Capital Expenditures ($25,000) ($10,000) ($10,000) $0 $0
$10,000 $10,000 $10,000 $10,000 $10,000
Net Income (Loss) ($20,700) $300 $6,600 $15,700 $13,500

Packet Pg. 120
1.a
Summary of Rochester City Golf System Projection (2022-2026)

The summary of NGF projections show how the individual facility estimates are brought together into
the overall City system for 2022-2026. Below, NGF shows a summary of the projected future
performance of Rochester golf courses in consideration of assumptions as noted.
Summary of System by Line Item (2022-2026)

The full pro forma analysis of the City of Rochester golf courses is shown below. We note that all
figures have been rounded to the nearest $100 for simplicity:
Projected City of Rochester Golf System

NHGC EWGC NHGC
Major CIP Initiatives Drainage Clubhouse
SFGC Patio
Parking
Other
2022 2023 2024 2025 2026

Total System Rounds 101,500 106,000 108,500 108,500 108,500
Memberships $583,800 $604,400 $623,800 $638,300 $651,800
Reg. Green Fees 497,800 562,900 593,400 602,300 611,400
Cart Use Fee 23,200 24,500 25,400 25,900 26,200
Driving Range 97,000 113,400 114,100 115,800 117,500
Pro Commissions 101,900 106,200 112,200 113,900 115,500
Misc. 24,700 25,700 26,800 27,100 27,500
Total Revenue $1,423,400 $1,538,700 $1,603,900 $1,633,100 $1,661,200
Operating Expenses
Utilities 152,000 155,900 159,800 163,700 167,700
Adv., Pub & Print 18,000 16,600 26,600 27,400 28,200
Net Other 8,500 8,900 9,300 9,700 10,100
Total City Expense $1,430,500 $1,464,700 $1,538,400 $1,577,400 $1,617,200
Operating (Loss) ($7,100) $74,000 $65,500 $55,700 $44,000

Other Items:
$21,000 $21,000 $21,000 $21,000 $21,000
Net Income (Loss) ($466,100) ($1,832,500) ($518,500) ($293,300) ($140,000)

Packet Pg. 121
1.a
PROJECTED PERFORMANCE – ROCHESTER GOLF W/O SOLDIER FIELD GC

(2022-2026)
In an effort to better understand the City golf system and aid the City in its future decision-making,
the NGF team has created a cash flow model for the Rochester golf system under the assumption
that Soldier Field GC will cease operations as a golf course beginning in 2024, after the new
Eastwood clubhouse is completed. This review is included for discussion purposes to aid the City in
understanding the implications of such a move, and is not intended as a recommendation from
NGF. The key assumptions that drive this projection include all previous assumptions detailed
previously, with the following exceptions:
Basic Assumptions
• Soldiers Field GC will continue to operate “as-is” through 2023 with no capital investment
in any infrastructure or significant, large-scale improvements, then close after the 2023
golf season is complete.
• This change in structure will impact the system’s administration and the sale of season
passes. NGF projects the closure would result in a reduction in demand for golf passes,
most notably the senior golf pass. The NGF projection for passes is shown in the table
below, with total pass demand falling from our previous 2024 projection of 1,359 to 1,289
with reduced demand expected for regular and senior memberships, and patron cards.
City of Rochester Golf Courses w/o Soldiers Field GC

Projected Season Pass Sales and Average Rate (2022-2026)
2022 2023 2024 2025 2026
Amt. Avg. Amt. Avg. Amt. Avg. Amt. Avg. Amt. Avg.
Passes / Patron Cards
Sold Rate Sold Rate Sold Rate Sold Rate Sold Rate
Regular Membership 250 $720 255 $731 250 $742 252 $753 254 $764
Senior Membership 370 $695 375 $705 340 $716 320 $727 320 $738
Young Adult / Futures 275 $330 285 $335 290 $340 292 $345 294 $350
Junior 165 $115 167 $117 169 $118 171 $120 173 $122
Patron Card 260 $75 260 $76 240 $77 240 $78 240 $80
Total 1,320 1,342 1,289 1,275 1,281
• The closure of Soldiers Field GC will impact the rounds played at other City golf courses.
NGF projects that at least 50% of the rounds activity at Soldiers Field would be absorbed
by the other courses in the system, most notably Eastwood and Northern Hills. The total
rounds played projections for the City courses under this scenario is shown below:
City of Rochester Golf Courses w/o Soldiers Field GC

NHGC EWGC NHGC
Major Initiatives Drainage Clubhouse
SFGC close
Parking
Other
2022 2023 2024 2025 2026

Eastwood GC 30,000 26,500 38,000 38,000 38,000
Northern Hills GC 22,000 29,500 35,500 35,500 35,500
Hadley Creek GC 18,000 18,500 20,000 20,000 20,000
Soldiers Field GC 31,500 31,500 0 0 0
Total 101,500 106,000 93,500 93,500 93,500
Packet Pg. 122
1.a
• The expenses to operate Rochester golf courses would change by the elimination of all
non-labor expense at SFGC and 75% of the total labor expense (reduce senior staff and
move support staff to other facilities), with changes at each facility as noted below:
o Soldiers Field GC – All direct expenses on the golf course are eliminated
beginning in 2024. All capital projections (presented in previous scenario) are
eliminated and the various other revenues (private sources, property rental, etc.)
are also discontinued.
o Eastwood and Northern Hills GC – Total labor expense is increased by $60,000
at each facility to reflect absorption of staff from SFGC.
o Hadley Creek GC – Total labor expense is increased by $30,000 to reflect
absorption of maintenance and operating staff from SFGC.
Summary of Rochester Golf System w/o SFGC Projection (2022-2026)

Below, NGF shows a summary of how the individual facility estimates are brought together into the
overall City system for 2022-2026 in consideration of assumptions as noted.
Projected City of Rochester Golf System w/o Soldiers Field GC

NHGC EWGC NHGC
Major CIP Initiatives Drainage Clubhouse
SFGC close
Parking
Other
2022 2023 2024 2025 2026

Total System Rounds 101,500 106,000 93,500 93,500 93,500
Memberships $583,800 $604,400 $589,600 $589,000 $601,400
Reg. Green Fees 497,800 562,900 511,800 515,000 522,800
Cart Use Fee 23,200 24,500 21,500 21,800 22,200
Driving Range 97,000 113,400 131,000 133,000 134,900
Pro Commissions 101,900 106,200 100,300 101,900 103,400
Misc. 24,700 25,700 27,700 28,000 28,400
Total Revenue $1,423,400 $1,538,700 $1,479,800 $1,488,000 $1,513,900
Operating Expenses
Utilities 152,000 155,900 107,200 109,800 112,500
Adv., Pub & Print 18,000 16,600 24,400 25,100 25,800
Net Other 8,500 8,900 7,100 7,400 7,700
Total City Expense $1,430,500 $1,464,700 $1,271,000 $1,303,200 $1,336,000
Operating (Loss) ($7,100) $74,000 $208,800 $184,800 $177,900

Other Items:
Other Add-In Revenue $21,000 $21,000 $21,000 $21,000 $21,000
Net Income (Loss) ($451,100) ($1,822,500) ($226,200) ($165,200) ($7,100)

Source: NGF Consulting, Inc. – 2021.
Packet Pg. 123
1.a
Review of Projections Results

The NGF projections of future golf facility economic performance show how the City of Rochester
golf courses could perform over the next five years of operation, considering improvement to
Northern Hills (drainage) and Eastwood (new clubhouse), along with continued ‘as-is’ operation at
Soldiers Field and Hadley Creek. The results show that while the recent improvement in this system
would continue, the overall net income performance may be at risk from additional capital projects
and the need to recover some staff positions that had been eliminated in recent expense reductions.
If the City can generate just a modest level of growth in activity from technology, marketing and
other operating improvements, the system could sustain itself (before capital) if it can reach 106,000
total rounds of golf, or an amount that is about 6.0% higher than any year since 2016. At this level of
performance, it is possible for the City to support an additional +/- $100,000+ per year in increased
expenses to regain lost maintenance positions and improve customer service, although some years
will dip below this threshold as construction projects at NHGC and EWGC (if undertaken) will impact
activity at those locations (particularly in 2022 and 2023).
Still, while these projections show the relative strength of economic performance of Rochester golf
courses, the analysis also shows how close to “break-even” the golf courses are and that even a
small drop in the recent activity gains will lead to economic loss on the system. The declines in
activity from 2016 through 2019 led to significant expense reduction decisions by the City, and the
result is a lean operation that is barely covering the basic needs to keep the courses open. Any
further reduction in revenue and the system may reach a critical point and require increased
subsidies from other sources (taxpayer support).
At the projected level of performance, the Rochester golf courses are expected to cover all on-site
expenses, but would not be able to provide enough retained earnings to fund any of the capital
projects identified by NGF in this report, possibly putting the long-term sustainability of the courses
at risk for the City. We note that the operating cash flows could be stronger if the City facilities are
able to sustain higher green fees and/or rounds played than we have projected, at just one or two of
the courses, which we believe is highly possible given the improvements under consideration for
NHGC and EWGC. Even with this improvement, the retained earnings on golf would not be sufficient
to cover any large-scale capital investment in the facilities.
If the City were to close the Soldier Field GC, the economic situation in golf is projected to improve
through reduced expenses, most notably the elimination of all non-labor expense associated with
the SFGC operation. The NGF projection shows that under this scenario revenue will fall by an
estimated $125,000 to $147,000 after 2024, but expenses will fall by $267,000 to $280,000. The
expense reductions reflect the elimination of the senior SFGC pro shop manager position and all
non-labor expenses. The revenue reductions are a result of fewer season pass sales and the other
facilities absorbing only about 50%+/- of Soldiers Field rounds activity.
Packet Pg. 124
1.a
Support for Projections and Potential Mitigating Factors

Support for Projections
• A growing Rochester area resident base, especially in proximity to NHGC and EWGC.
• A strong and diversified local economy, with strong attraction of new businesses.
• A high volume of tourists / visitors to supplement demand.
• Accessible sites with convenient local roadway infrastructure.
• Proposed facility enhancements that will add to the attraction of City golf facilities that allow
the courses to stand out among the competitive set, and help increase revenues.
• Continued participation surge resulting from the pandemic, including high interest among
beginners and younger golfers.
Potential Threats / Mitigating Factors Relative to Projections
While there appears to be considerable evidence to support continued strong activity and revenue
performance at Rochester golf courses, there are mitigating factors that could reduce revenue
and/or increase expenses at the facilities. These include:
• Regional economic recession – previous recessions have negatively impacted the golf
industry.
• Reversal of the ‘Covid Lift’ in golf participation and rounds demand to pre-pandemic levels.
• Golf maintenance expenses: the cost to maintain golf courses is dependent on many
variables that cannot be controlled. Items such as fuel, chemicals, equipment, other utilities,
labor, equipment and other maintenance expenses have shown high recent inflation, which
could negatively impact the operation, at least in the short term.
LIMITING CONDITIONS
The income estimates presented by NGF have been prepared based on existing and projected
market conditions, the expected quality of the subject facilities and the intended segment of the golf
market toward which they are oriented. Particular focus was paid to the reality of golf supply in the
immediate local market where several golf facilities have been struggling to generate enough golf
rounds to meet their obligations. Proper uses of these estimates include:
• Establishing reasonable parameters for expected performance for the subject facilities
• Determining an appropriate level for new capital investments the facilities can support
• Establishing the basis for financing determinations
• Providing guidelines for realistic expectations of income and expense
NGF is confident that some growth in activity and revenue can be achieved at the City golf facilities.
From a practical standpoint, those managing these facilities will need to respond to variable market
conditions and unforeseen maintenance needs. NGF is confident that the City golf facilities will be
able to continue to achieve results as presented beyond the next five years of operation. It is
important to measure the performance of the City’s golf courses in such a way as to help the City
make financial decisions based on realistic expectations. It is obviously possible that either more or
fewer rounds will be realized. As we have noted, we do anticipate that it is realistic for the City to
expect the golf courses to generate operating surpluses sufficient to fund all on-site requirements,
but it is almost certainly insufficient to support other, much larger capital investments (like a new
clubhouse at Eastwood).
Packet Pg. 125
1.a
Summary Statement
The City of Rochester is operating four public golf facilities that appear to be well-run, but are
producing activity and revenue well below the expected standard. While golf activity did reach a new
high during the mini “golf boom” associated with the Covid-19 pandemic, the total income produced
by this system is not sufficient to cover all expenses that are required to properly operate and
maintain City golf courses. However, in addition to low revenue, Rochester Golf courses also have
lower-than-standard expenses, although much of this is related to recent reductions made by the
City that could ultimately lead to a reduced golf course product and a diminished level of service.
In reviewing this system, it is clear to NGF consultants that the City’s golf system has “something for
everyone,” but the City has reached a key moment in addressing the condition of facilities, as all four
courses have significant capital needs. There are some changes the City will have to make to help
better position these courses for the long-term, and help ensure the quality and sustainability of City
golf courses. This includes adopting a new program of capital investment to address aging amenities
and infrastructure that are past their realistic expected useful life. The most significant of these
include the clubhouse at Eastwood GC and drainage / maintenance facility concerns at Northern
Hills GC. In addition, the City would likely benefit from a full reevaluation of the Soldiers Field GC
property, as aging infrastructure and limited property size are challenging the City’s future in golf.
The current circumstance provides an opportunity for the City to “re-set” Rochester golf courses, and
find a new mix of amenities and condition that will result in a wider appeal and improved economics.
This analysis by NGF shows that the balance between demand and supply in Rochester is not
favorable to the City, and that Rochester golf courses are essentially competing with each other for
market share. Our review also showed how enhancement to Eastwood and Northern Hills GCs
should lead to improved revenue, and that reducing the system to only two 18-hole courses, along
with Hadley Creek, would almost certainly improve the economic condition of the system.
In summary, the City’s golf system is in position to improve performance. The increase in golf
demand during 2020-21 has provided a surge in revenue at Rochester golf courses, providing the
City an opportunity to re-invest in these aging properties. Eastwood and Northern Hills offer premier,
championship golf experience, while Hadley Creek has great potential to grow golf in Rochester.
Soldiers Field is also popular with less-skilled and time-sensitive golfers seeking a shorter golf
experience, but the facility is aging and will need significant investment to remain viable. As such,
the City may find that the key decision in the future of this golf system is what to do with Soldiers
Field, with enhancement, reduction or closure all being viable options. In review of this golf system,
the NGF has identified five important actions that the City can take to improve this golf system:
1. Commit to completing the initial $2.4+/- million in capital projects over the next two years
to address the Eastwood clubhouse and key infrastructure at Northern Hills.
2. Undertake completion of a formal site master plan for Soldiers Field GC, and decide on
the future of this property as an enhanced 18-hole golf course, modified 9-hole golf
course or some other (non-golf) facility.
3. Enhance expertise in the technology that supports operations (POS, website, etc.), and
use these platforms to enhance the marketing to non-residents and less frequent users.
4. Increase focus on new player development and beginner programs, especially with
young adults.
5. Consider other new investments to help modernize, broaden the appeal and “liven up”
facilities such as driving range improvements and/or enhanced outdoor gathering spaces.
Packet Pg. 126
1.a
Appendices
A: Samples of POS Systems
B: Rochester Golf Course Fee Charts
C: Rochester Golf Course Seasonal Pass Chart
D: National Rounds Played Report
E: Golf Course Life Cycle
F: Local Demographic, Demand and Supply Data
Packet Pg. 127
1.a
APPENDIX A – SAMPLES OF POS SYSTEMS

Overview of Several POS Systems
1) Teesnap
• Contract: None
• Who provides equipment: Vendor (2 iPads supplied to each course)
• Setup Fee: No
• Credit Card Processing: Flat fee
• Automated Tee Sheet included: Yes
• Other Key Features: POS included with features for marketing with tee sheet
2) Chronogolf
• Contract: None
• Who provides equipment: Customer
• Setup Fee: No
• Credit Card Processing: Through their processor
• Automated Tee Sheet included: No
3) ForeUp
• Contract: None
• Setup Fee: Yes
• Credit Card Processing: Worldpay and ETS
4) EZLinks
• Contract: None
• Setup Fee: Yes
• Credit Card Processing: BluePay ETS
Packet Pg. 128
1.a
APPENDIX B – ROCHESTER GOLF COURSE FEE CHARTS

Soldiers Field, Eastwood, and Northern Hills
Golf Course Green Fee and Cart Rates
Public Rates Green Fees Cart Fees

18 Holes $32 $15
9 Holes $19 $10
Senior Rates
18 Holes $28 $13
9 Holes $17 $9
Junior Rates
18 Holes $20 N/A
9 Holes $10 N/A
Early Bird Cart $10

Green Fee and Cart Rates
Public Rates Green Fees Cart Fees

9 Holes $13 $8
18 Holes $12
Junior Rates
9 Holes $8 N/A
Early Bird Cart $7
Packet Pg. 129
1.a
APPENDIX C – ROCHESTER GOLF COURSE SEASONAL PASS CHART

2021 Season Membership Passes
Play 4 Golf Courses For The Price Of One!
(Prices listed do not include sales tax)
Membership Type
Adult $775
Adult Couple (two people, same household) $1,050
Family $1,150
Young Adult (ages 26-30) $525
Young Adult Couple (same household, both under age 30) $725
Futures (ages 19-25) $340
Junior (age 6-18) $175
Senior (62+) $675
Senior Couple (one player must be 62+) $975
Patron Card $75
Hadley Creek GC Only - Adult $375
Hadley Creek GC Only - Family $675
Packet Pg. 130
1.a
APPENDIX D – NATIONAL ROUNDS PLAYED REPORT
Packet Pg. 131
1.a
Packet Pg. 132
1.a
Packet Pg. 133
1.a
Packet Pg. 134
1.a
APPENDIX E – GOLF COURSE LIFE CYCLE
Packet Pg. 135
1.a
APPENDIX F – LOCAL DEMOGRAPHIC, DEMAND AND SUPPLY DATA
Rochester Golf Market Demographics

Intersection of 2nd Av SW &
2nd St SW Rochester Olmstead State of U.S.
10-mile ring 20-mile ring MSA County Minnesota
Summary Demographics
Population 1990 Census 91,666 130,403 162,721 106,473 4,373,388 248,584,652
CAGR 1990-2000 1.64% 1.47% 1.28% 1.56% 1.18% 1.25%
CAGR 2000-2010 1.55% 1.44% 1.14% 1.50% 0.76% 0.93%
Population Estimate 2019 137,391 187,508 219,989 156,689 5,616,780 328,252,472
Population 2024 Projected 145,144 197,237 231,009 165,539 5,871,589 339,844,802
CAGR 2019-2024 1.10% 1.02% 0.98% 1.10% 0.89% 0.70%
Median HH Income (2019) $79,784 $79,343 $75,681 $79,494 $72,220 $63,709
Median Age (2019) 37.5 37.8 38.6 37.6 38.4 38.3
Ethnicity
White 80.3% 84.2% 85.8% 82.0% 81.6% 69.7%
African American 7.2% 5.6% 4.9% 6.6% 6.8% 13.4%
Asian 7.4% 5.7% 5.0% 6.7% 5.3% 6.0%
All Other 5.1% 4.5% 4.2% 4.7% 6.2% 10.9%
Hispanic Population
Hispanic 5.7% 5.0% 4.8% 5.3% 5.6% 17.9%
Not Hispanic 94.3% 95.0% 95.2% 94.7% 94.4% 82.1%
CAGR = Compound Annual Growth Rate
Packet Pg. 136
1.a
Rochester Golf Market Golf Demand

Intersection of 2nd Av SW
& 2nd St SW Rochester Olmstead State of U.S.
Golf Demand Indicators
Total Households 58,306 77,578 91,226 65,062 2,256,789 128,476,935
Number of Golfing Households 12,358 16,569 19,032 13,786 483,115 17,966,460
Projected Golfing Households (2024) 14,329 19,295 22,248 16,043 562,240 19,624,930
Projected Annual Growth Rate 3.00% 3.10% 3.20% 3.10% 3.10% 1.80%
Seasonal Golfing Households 79 120 363 87 30,869 773,569
Latent Demand/Interested Non-Golfers 8,934 11,009 12,379 9,682 325,621 16,967,060
Household Participation Rate 21.20% 21.40% 20.90% 21.20% 0 14.00%
Number of Golfers 15,935 21,226 24,226 17,729 609,465 24,800,870
Rounds Potential (resident golfers) 263,615 350,653 402,197 293,213 10,000,170 381,451,700
Estimated Course Rounds 130,136 206,995 282,209 157,016 8,711,883 381,454,200
(in-market supply)
Demand Indices
Golfing Household Participation Rate 152 153 149 152 153 100
Seasonal Golfing Households 23 26 66 22 227 100
Latent Demand/Interested Non-Golfers 12 11 11 12 11 100
Rounds Potential per Household 152 152 148 152 149 100
(resident golfers)
Packet Pg. 137
1.a
Rochester Golf Market Supply Data

Golf Supply
Golf Facilities
Total 8 15 23 10 431 14,196
Public 6 13 21 8 385 10,539
Public: Daily Fee 2 9 17 4 293 7,992
Public: Municipal 4 4 4 4 92 2,546
Private 2 2 2 2 46 3,657
Public Golf Facilities by Price Point
Premium (>$70) 0 0 1 0 28 1,503
Standard ($40-$70) 5 5 5 5 170 4,091
Value (<$40) 1 8 15 3 187 4,945
Golf Holes
Total 144 234 351 180 6,768 241,155
Public 108 198 315 144 5,976 173,952
Public: Daily Fee 45 135 252 81 4,554 131,598
Public: Municipal 63 63 63 63 1,422 42,336
Private 36 36 36 36 792 67,203
Non-Regulation (Executive & Par-3) 9 27 27 27 729 18,711
Net Change*
Net Change in Holes past 5 years 0 0 -9 0 -324 -16,038
Percentage Total Holes Past 5 Yrs 0.00% 0.00% -2.50% 0.00% -4.60% -6.20%
Net Change in Holes past 10 Years -27 -27 -45 -27 -648 -27,126
Percentage Total Holes Past 10 Yrs -15.80% -10.30% -11.40% -13.00% -8.70% -10.10%
*Numbers may include courses under construction and temporarily closed at the end of the year.
Packet Pg. 138
1.a
Rochester Golf Market Golf Supply-Demand Ratios

Supply-Demand Ratios
Households per 18 Holes
Total 7,288 5,968 4,678 6,506 6,002 9,590
Public 9,718 7,053 5,213 8,133 6,798 13,294
Public: Daily Fee 23,322 10,344 6,516 14,458 8,920 17,573
Public: Municipal 16,659 22,165 26,065 18,589 28,567 54,625
Private 29,153 38,789 45,613 32,531 51,291 34,412
Premium (>$70) 0 0 91,226 0 62,689 71,100
Standard ($40-$70) 10,601 14,105 16,587 11,829 12,199 29,538
Value (<$40) 0 14,105 8,293 26,025 20,331 36,629
Golfing Households per 18 Holes
Total 1,545 1,275 976 1,379 1,285 1,341
Public 2,060 1,506 1,088 1,723 1,455 1,859
Public: Daily Fee 4,943 2,209 1,359 3,064 1,910 2,457
Public: Municipal 3,531 4,734 5,438 3,939 6,115 7,639
Private 6,179 8,285 9,516 6,893 10,980 4,812
Premium (>$70) 0 0 19,032 0 13,420 9,943
Standard ($40-$70) 2,247 3,013 3,460 2,507 2,611 4,131
Value (<$40) 0 3,013 1,730 5,514 4,352 5,122
Household Indices
Total 76 62 49 68 63 100
Public 73 53 39 61 51 100
Private 85 113 133 95 149 100
Premium (>$70) 0 0 128 0 88 100
Standard ($40-$70) 36 48 56 40 41 100
Value (<$40) 318 39 23 71 56 100
Golfing Household Indices
Total 115 95 73 103 96 100
Public 111 81 59 93 78 100
Private 128 172 198 143 228 100
Premium (>$70) 0 0 191 0 135 100
Standard ($40-$70) 54 73 84 61 63 100
Value (<$40) 483 59 34 108 85 100
Rounds per 18 Holes
Rounds Potential (resident golfers) 32,952 26,973 20,625 29,321 26,596 28,472
Estimated Course Rounds 16,267 15,923 14,472 15,702 23,170 28,472
(in-market supply)
Packet Pg. 139
1.a
Rochester Golf Courses Demographics
Soldiers Memorial GC Northern Hills GC Eastwood GC Hadley Creek GC

2-mile 10-mile 2-mile 10-mile 2-mile 10-mile 2-mile 10-mile
ring ring ring ring ring ring ring ring
Summary Demographics
Population 1990 Census 37,239 91,527 9,334 92,615 10,166 89,729 3,587 90,540
CAGR 1990-2000 0.34% 1.64% 3.69% 1.64% 0.29% 1.60% 2.57% 1.57%
CAGR 2000-2010 -0.20% 1.54% 3.62% 1.56% 1.72% 1.51% 1.26% 1.49%
Population Estimate 2019 40,774 137,115 21,462 139,124 13,793 133,230 5,356 133,858
Population 2024 Projected 43,385 144,842 22,634 146,994 14,594 140,757 5,639 141,468
CAGR 2019-2024 1.25% 1.10% 1.07% 1.11% 1.14% 1.11% 1.04% 1.11%
Median HH Income (2019) $56,903 $79,324 $85,494 $79,984 $55,517 $78,280 $109,722 $79,277
Median Age (2019) 38.3 37.4 32.7 37.5 33.3 37.4 43.5 37.5
Ethnicity
White 75.2% 80.0% 73.9% 80.4% 65.0% 79.3% 85.9% 79.9%
African American 9.9% 7.4% 9.3% 7.2% 17.8% 7.7% 2.0% 7.4%
Asian 7.2% 7.5% 12.4% 7.4% 4.9% 7.8% 8.8% 7.6%
All Other 7.8% 5.1% 4.4% 5.1% 12.3% 5.2% 3.3% 5.1%
Hispanic Population
Hispanic 9.2% 5.8% 3.9% 5.6% 15.7% 5.9% 4.0% 5.8%
Not Hispanic 90.8% 94.2% 96.1% 94.4% 84.3% 94.1% 96.0% 94.2%
CAGR = Compound Annual Growth Rate
Packet Pg. 140
1.a
Rochester Golf Courses Golf Demand

Golf Demand Indicators
Total Households 18,767 57,209 10,259 58,598 4,112 54,871 1,980 56,845
Number of Golfing Households 3,305 12,071 2,103 12,422 672 11,523 499 12,033
Projected Golfing Households (2024) 3,863 13,987 2,437 14,413 793 13,350 570 13,952
Projected Annual Growth Rate 3.20% 3.00% 3.00% 3.00% 3.40% 3.00% 2.70% 3.00%
Seasonal Golfing Households 16 74 7 76 2 64 5 74
Latent Demand/Interested Non-Golfers 2,850 8,815 1,741 8,969 590 8,487 306 8,708
Household Participation Rate 17.60% 21.10% 20.50% 21.20% 16.30% 21.00% 25.20% 21.20%
Number of Golfers 4,024 15,558 2,793 16,017 949 14,739 705 15,435
Rounds Potential (resident golfers) 65,781 256,978 43,107 264,981 14,230 243,430 12,340 255,621
Estimated Course Rounds 21,317 143,576 16,589 116,696 16,589 131,908 0 105,028
(in-market supply)
Demand Indices
Golfing Household Participation Rate 126 151 147 152 117 150 180 151
Seasonal Golfing Households 14 21 11 22 8 19 42 22
Latent Demand/Interested Non-Golfers 13 12 13 12 10 13 12 12
Rounds Potential per Household 118 151 142 152 117 149 210 151
(resident golfers)
Packet Pg. 141
1.a
Rochester Golf Courses Golf Supply

Golf Supply
Golf Facilities
Total 1 9 1 7 1 8 0 6
Public 1 7 1 5 1 7 0 5
Public: Daily Fee 0 3 0 1 0 3 0 1
Public: Municipal 1 4 1 4 1 4 0 4
Private 0 2 0 2 0 1 0 1
Public Golf Facilities by Price Point
Premium (>$70) 0 0 0 0 0 0 0 0
Standard ($40-$70) 1 5 1 4 1 5 0 4
Value (<$40) 0 2 0 1 0 2 0 1
Golf Holes
Total 18 162 18 126 18 144 0 108
Public 18 126 18 90 18 126 0 90
Public: Daily Fee 0 63 0 27 0 63 0 27
Public: Municipal 18 63 18 63 18 63 0 63
Private 0 36 0 36 0 18 0 18
Non-Regulation (Executive & Par-3) 0 9 0 9 0 9 0 9
Net Change*
Net Change in Holes past 5 years 0 0 0 0 0 0 0 0
Percentage Total Holes Past 5 Yrs 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Net Change in Holes past 10 Years 0 -27 0 -27 0 -18 0 -18
Percentage Total Holes Past 10 Yrs 0.00% -14.30% 0.00% -17.60% 0.00% -11.10% 0.00% -14.30%
*Numbers may include courses under construction and temporarily closed at the end of the year.
Packet Pg. 142
1.a
Rochester Golf Courses Golf Supply-Demand Ratios

Supply-Demand Ratios
Households per 18 Holes
Total 18,767 6,357 10,259 8,371 4,112 6,859 0 9,474
Public 18,767 8,173 10,259 11,720 4,112 7,839 0 11,369
Public: Daily Fee 0 16,345 0 39,065 0 15,677 0 37,897
Public: Municipal 18,767 16,345 10,259 16,742 4,112 15,677 0 16,241
Private 0 28,605 0 29,299 0 54,871 0 56,845
Premium (>$70) 0 0 0 0 0 0 0 0
Standard ($40-$70) 18,767 10,402 10,259 13,022 4,112 9,977 0 12,632
Value (<$40) 0 38,139 0 0 0 36,581 0 0
Golfing Households per 18 Holes
Total 3,305 1,341 2,103 1,775 672 1,440 0 2,006
Public 3,305 1,724 2,103 2,484 672 1,646 0 2,407
Public: Daily Fee 0 3,449 0 8,281 0 3,292 0 8,022
Public: Municipal 3,305 3,449 2,103 3,549 672 3,292 0 3,438
Private 0 6,036 0 6,211 0 11,523 0 12,033
Premium (>$70) 0 0 0 0 0 0 0 0
Standard ($40-$70) 3,305 2,195 2,103 2,760 672 2,095 0 2,674
Value (<$40) 0 8,047 0 0 0 7,682 0 0
Household Indices
Total 196 66 107 87 43 72 0 99
Public 141 61 77 88 31 59 0 86
Private 0 83 0 85 0 159 0 165
Premium (>$70) 0 0 0 0 0 0 0 0
Standard ($40-$70) 64 35 35 44 14 34 0 43
Value (<$40) 0 104 0 320 0 100 0 310
Golfing Household Indices
Total 246 100 157 132 50 107 0 150
Public 178 93 113 134 36 89 0 129
Private 0 125 0 129 0 239 0 250
Premium (>$70) 0 0 0 0 0 0 0 0
Standard ($40-$70) 80 53 51 67 16 51 0 65
Value (<$40) 0 157 0 485 0 150 0 470
Rounds per 18 Holes
Rounds Potential (resident golfers) 65,781 28,553 43,107 37,854 14,230 30,429 0 42,604
Estimated Course Rounds 21,317 15,953 16,589 16,671 16,589 16,489 0 17,505
(in-market supply)
Packet Pg. 143

NGF Report

Uploaded by

Copyright:

Available Formats

NGF Report

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

NGF Report

Uploaded by

Copyright:

Available Formats

What is the purpose of this report?

What is the purpose of this report?

What facilities does this report cover?

What facilities does this report cover?

1.

Review of Operations and Strategic

501 North Highway A1A

OVERVIEW OF ROCHESTER’S GOLF COURSE SYSTEM .......................................................... 11

INDIVIDUAL FACILITIES ............................................................................................................... 32

Eastwood GC Clubhouse .................................................................................................................... 35

EXTERNAL FACTORS AFFECTING THE OPERATION OF ROCHESTER GOLF COURSES ..... 81

Market Area Rounds and Fee Information .......................................................................................... 92

FUTURE CONSIDERATIONS FOR CITY OF ROCHESTER GOLF COURSES ............................. 98

ROCHESTER CITY GOLF COURSES - PRELIMINARY FINANCIAL PROJECTIONS ............... 104

SUMMARY STATEMENT ............................................................................................................. 119

Introduction and Executive Summary

INTRODUCTION AND PURPOSE

OVERALL SUMMARY OF FINDINGS

Rochester Golf System Review

Individual Facility Reviews

Eastwood Golf Club

Northern Hills Golf Course

Soldiers Memorial Field Golf Course

Hadley Creek Golf Course

EXTERNAL FACTORS AFFECTING THE GOLF OPERATIONS

FUTURE CONSIDERATIONS FOR ROCHESTER GOLF COURSES

Basic Oversight and Operational Recommendations

Basic Operational Recommendations

Specific Physical Recommendations

City of Rochester Golf System

New Eastwood GC Clubhouse

Soldiers Field Venue Enhancement

PRELIMINARY FINANCIAL CONSIDERATIONS

Summary of Rochester City Golf System Projection (FY2022-FY2026)

Reduced System Considerations

Overview of Rochester’s Golf Course System

Golf Course Type Year Open Notes

A newer 18-hole golf course in the growing section of northwest

CITY OF ROCHESTER GOLF - SYSTEM OF ORGANIZATION

Contract and Concession Agreement Review

Golf Professional / Manager Contracts

Key Provisions and Terms

Food & Beverage Concession Contracts

Key Provisions and Terms

City of Rochester Support to the Golf System

System of Organization Summary

ROCHESTER GOLF SYSTEM – REVIEW OF OPERATIONS

City of Rochester Golf Facility Staffing

Golf Maintenance Staffing

City of Rochester Golf

City of Rochester Golf

City of Rochester Golf Courses

Review of Technology and Website

Point of Sale (POS) System

• Create a customer database (no database of golf customers at present)

New Point of Sale (POS) System

Rochester Golf Website

Search Engine Optimization

Golf Courses Marketing