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03/02/2010 - Formal Meeting - Meeting MaterialsSALT LAKE CITY COUNCIL
PUBLIC COMMENT FORM
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Address +
E-Mail Address GJi ij# / p.Ck
DATE: ,rc)) 2 , -201 0
AGENDA ITEM: 6fNERAtt'oMMErffr-
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SALT LAKE CITY COUNCIL
PUBLIC COMMENT FORM
Name
!.0.-"\' I N
DATE:
AGENDA ITEM: ROSE PARK GOLF COURSE
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Address City ' bi Zip Code g 4O 2
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SALT LAKE CITY COUNCIL
PUBLIC COMMENT FORM
DATE: 74/2/2,0 10
AGENDA ITEM: ROSE PARK GOLF COURSE
Name / a I-r ;-� !i r1-/ n e 7_ Phone
(
- Gty -SC,C- Zip Code SA i6
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AGENDA ITEM: ROSE PARK GOLF COURSE
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DATE: 2 ' 1 '
AGENDA ITEM: ROSE PARK GOLF COURSE
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AGENDA ITEM: ROSE PARK GOLF COURSE
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ALT LAKE CITY COUNCIL
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Name tY'"yY\ Cyr`
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Code
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AGENDA ITEM: ROSE PARK GOLF COURSE
Phone
E Mail Address
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SALT LAKE CITY COUNCIL
PUBLIC COMMENT FORM
DATE:
AGENDA ITEM: ROSE PARK GOLF COURSE
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SALT LAKE CITY COUNCIL
PUBLIC COMMENT FORM
DATE: 12- ) b Lk) 10 —10
AGENDA ITEM: ROSE PARK GOLF COURSE
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ALT LAKE CITY COUNCIL
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ctfrr
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„
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-1-JCS
AGENDA ITEM: ROSE PARK GOLF COURSE
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printM
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AGENDA ITEM: ROSE PARK GOLF COURSE
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AGENDA ITEM: ROSE PARK GOLF COURSE
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121 to
AGENDA ITEM: ROSE PARK GOLF COURSE
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1
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AGENDA ITEM: ROSE PARK GOLF COURSE
Name \ N `&(T ` r\f "I_- Phone (
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SALT LAKE CITY COUNCIL STAFF REPORT
DATE March 2, 2010
SUBJECT: Rose Park Golf Course - Public Process for sale of open space
property -1385 North 1200 West
STAFF REPORT BY: Lehua Weaver
COUNCIL DISTRICT: District 1
ADMINISTRATIVE DEPT. Department of Public Services and Capital Asset Management
AND CONTACT PERSON: Rick Graham and Sam Guevara
CC: David Everitt, Rick Graham, Sam Guevara, Vicki Bennett, Emy Storheim, Gordon
Hoskins, David Terry, Ed Rutan, John Spencer, Duran Lucas, Frank Gray,
Mary De La Mare Schaefer, Wilf Sommerkorn, Janice Jardine
OPTIONS:
The Council's role, under Salt Lake City Code, is to hold a public hearing, with the option of holding an
advisory vote on the issue.
Closing the hearing:
a. Close the hearing, or
b. Continue it until after the Administration selects a buyer. That would allow
residents another forum to comment on the specific use of the property if it's
sold.
Advisory Vote:
a. Do not hold a vote, or
b. Hold a vote indicating the Council's position on the sale, or
c. Defer a vote until after the Administration selects a buyer.
BRIEFING NOTES:
During the Councils February 2nd briefing, the Council discussed:
• Bid Process for Purchasers:
o The Administration intends to conduct an RFP process soliciting all interested
buyers in the property.
o The Guadalupe Schools is one potential purchaser who has already been in
conversation with the City about the property.
o The RFP would clearly indicate that interested applicants should comply with
existing zoning for the property.
• Decision to sell open space land:
o From a general policy point of view, the Council might choose to discuss the best or
acceptable use of the land, rather than focusing on how the money from the sale
would be used.
o However, in this case, it might be useful to know that the Golf Fund Manager
intends to use the money toward the purchase of other property for open space
purposes.
o In general, the Council might consider that the Golf Fund's capital needs and
funding sources should be a broader issue than the sale of open space land.
o A few Council Members raised the concern of setting a precedent of selling open
space land in order to meet capital improvement needs.
• Consistency with area master plans:
o The Administration responded to questions about compliance with the master plans
by confirming that the property would be used in accordance with the existing zone.
o In this case, other building structures are allowed in the open space zone. According
to the Planning Commission Meeting minutes, the permitted and conditional uses in
an open space zone are:
• cemeteries and accessory crematoriums,
• community and recreation centers,
• pet cemeteries,
• country clubs,
• golf courses,
• natural open space conservation areas,
• nature preserves,
• accessory uses to other allowed uses, and
• public or private utility buildings, transmission lines or wires
o Although master plans for the area do not necessarily contemplate the loss of open
space uses, the change in use of this land may be minimized if the money is used
toward the purchase of other property and its conversion to open space land.
Note: If the Council would like another copy of the original staff report from the February 2nd briefing,
a copy will be made for you or emailed to you.
RECEIVED JAN 121010
RICHARD GRAHAM
PUBLIC SERVICES DIRECTOR
DEPARTMENT OF PUBLIC SERVICES
DIRECTORS OFFICE
MEMORANDUM
TO: Salt Lake City Council
J.T. Martin, Chair
FROM: Mayor Ralph Becker
DATE: January 8, 2010
RE: Proposal for Removal of Lands from the Open Space Programs
RALPH BECKER
Description of the Land to be Sold or Transferred
3.16 acres of Rose Park Golf Course property located at 1200 West between 1300 North and
1400 North. Attached is a map and legal description.
Purpose of the Proposed Sale
The Golf Enterprise Fund has over $20M in deferred capital improvement priorities that cannot
be funded with projected operational budgets. The proceeds generated from the sale of the 3.16
acres of Rose Park Golf Course property near the 17th teeing area will be earmarked for some of
these projects including the expansion of the practice range, construction of new tees, and related
improvements to the Rose Park Golf Course.
Proposed Purchaser of the Land
The Guadalupe Charter School is interested in purchasing the 3.16 acres of Rose Park Golf
Course property from the City.
The Anticipated Future Use of the Land
The board and staff of the Guadalupe School have notified the City that they plan to build a new
school at this location if they are successful in acquiring the property.
Anticipated Change in Zoning Required to Implement Proposed Future Use
No zoning change is anticipated. State law states that charter schools shall be considered a
permitted use in all zoning districts within a municipality. State law requires such projects to
comply with open space zoning regulations relating to setback, height, bulk and massing
regulations, off -site parking, curb cut, traffic circulation, construction staging, as well as any
other regulation needed to avoid unreasonable risks to health and safety.
LOCATION: 451 SOUTH STATE STREET, ROOM 13B SALT LAKE CITY, UTAH S4111-3104
MAILING ADDRESS: PO BOX 145459, SALT LAKE CITY, UTAH 1341 14 5469
TELEPHONE: =01.535-7775 FAX: B01.535.7963
The Amount of the Proposed Purchase Price
In November 2008, The Cook Group appraised this Rose Park Golf Course property at $476,000.
A downward adjustment to the selling price may be appropriate given the need for an odor
easement and utility easements. To prepare this land for sale, the Golf Fund will need to make
adjustments to the golf course irrigation system including but not limited to rerouting a main
line. installing new lateral lines, and relocating sprinkler heads. The Golf Fund also will need to
realign an open storm water drainage corridor including the connection into the Public Utilities
system. The Golf Fund will attempt to negotiate a cost -sharing agreement with the Guadalupe
School for the completion of these projects.
Mayor Becker's Explanation Why the Proposed Sale is in the City's Best Interest
As stated above, the Golf Enterprise Fund has over $20M in deferred major capital improvement
project needs that cannot be funded in the foreseeable future with the limited dollars available for
operating capital budgets. The 3.16 acres can be deemed surplus property without negatively
impacting the playability of the Rose Park Golf Course.
On December 9, 2009, the Salt Lake Planning Commission voted in favor of surplus and
subdividing the property.
While this property is zoned open space, golf course property does not come under the
jurisdiction of Salt Lake City's Open Space Lands Program. Rather, the golf courses are
operated as an enterprise fund. The Salt Lake City Golf Enterprise Fund Advisory Board has
submitted a letter recommending the transfer or sale of surplus golf course property as a way to
solve the deferred golf course capital improvement project funding issue.
The Guadalupe Charter School has been looking for a new school site in Salt Lake City for a
number of years. I strongly support its mission to provide quality educational opportunities to
minority and underprivileged members of our community.
The board and staff of the Guadalupe School have visited the site multiple times. They are
aware of the need for utility easements on this property, and are aware of the regularly occurring
odor issues. Furthermore, a school can be built at this location with minimal impact to the
adjacent neighborhood. No homes front 1200 West from 1000 North to 1300 North, the primary
entrance to this location. Furthermore, the majority of the students who will attend this school
will arrive by bus.
Additionally, a school on this site will positively impact neighboring Rosewood Park by
providing eyes that can prevent vandalism and ensure a safe setting for neighboring residents to
enjoy the various outdoor recreational opportunities provided in the park.
h'EIVED JAN 08 ?0t0
RICHARD GRAHAM
PDBLIC SERVICES DIRECTOR
RALPH BECKER
MAYOR
DEPARTMENT OF PUBLIC SERVICES
DIRECTORS OFFICE
OUNCIL TRANSMITTAL
Date Received: CI 0 �l 'ZO01
David E -ritt, Chief of Date Sent to Council: G 1 / O �/ 7,60q
TO: Salt Lake City Council
J.T. Martin, Chair
FROM: Rick Graham { 0
Public Services Director
DATE: January 8, 2010
SUBJECT: Request a public hearing to consider the removal of real property from the
City's open space lands program. The land in question is 3.16 acres of Rose Park Golf
Course property located at 1200 West between 1300 North and 1400 North. See attached
map and legal description.
STAFF CONTACT: David Terry Duran Lucas
Manager Real Property Agent
Golf Enterprise Fund Property Management
801/485-7831 801/535-6308
DOCUMENT TYPE: Request for public hearing as required by City Code
2.90.120; Removal of Lands from Open Space Lands Program.
RECOMMENDATION: Approve the removal of 3.16 acres of Rose Park Golf
Course property located at 1200 West between 1300 North and 1400 North from the
City's open space lands program inventory.
BUDGET IMPACT: In November 2008, The Cook Group appraised this Rose
Park Golf Course property at $476,000. See attached proposal from Mayor Becker.
BACKGROUND/DISCUSSION: The Golf Enterprise Fund has over $20M in
deferred capital improvement projects that cannot be funded with projected operational
budgets. The proceeds generated from the sale of the 3.16 acres of Rose Park Golf
Course property near the 17th teeing area will be earmarked for some of these projects
including the expansion of the practice range, construction of new tees, and related
improvements to the Rose Park Golf Course.
The Guadalupe Charter School is interested in purchasing the 3.16 acres of Rose Park
operty from the City for the purpose of building a new school. State law ild
u •_i ,_� a `LEIyWI��'-,fI ION: 451 SOUTH STATE STREET, ROOM 1315 SALT LAKE CITY, UTAH 5411 ,-yctCANNED TO.
JAN 0 8 2010MAILING ADDRESS: PO BOX 145469, SALT LAKE CITY, UTAH 84114.5469 SCANNED BY'.9/j`�
I�` J TELEPHONE: 801 59'e 7775 CDOV..COn% SO,•535 7963 DATE: / •7 ./o
By_
says that charter schools shall be considered a permitted use in all zoning districts within
a municipality. State law requires such projects to comply with open space zoning
regulations relating to setback, height, bulk and massing regulations, off -site parking,
curb cut, traffic circulation, construction staging, as well as any other regulation needed
to avoid unreasonable risks to health and safety.
City Code 2.90.120 Removal of Lands from Open Space Lands Program states that funds
derived from the sale, disposition, exchange or removal of land from the open space lands
program shall be deposited into the open space lands fund for its intended purposes. City
Code 2.58.060 states that all proceeds or revenue from the sale of any real property
within an enterprise fund shall be deposited in a surplus property account within that
fund's capital improvements fund. Attached is a legal opinion from Lynn Pace on this
apparent contradiction within City Code.
PUBLIC PROCESS: The Salt Lake City Golf Enterprise Fund Advisory Board is
in favor of surplusing, subdividing, and selling the 3.16 acres of Rose Park Golf Course
property to the Guadalupe Charter School for the purpose of generating funds to be used
to improve the Rose Park Golf Course. See attached letter from the Golf Advisory Board.
City Code 2.90.120 outlines the required process to remove real property from the City's
open space lands program.
2.90.120: REMOVAL OF LANDS FROM THE OPEN SPACE LANDS
PROGRAM:
A. Lands, conservation easements or other interests in land placed in the open space lands
program shall remain in the program in perpetuity unless: 1) they are transferred to a
qualified public or nonprofit land conservation entity; or 2) a sale, conversion, exchange,
or other transfer of the land, conservation easement or other interest in land is approved
by the mayor, subsequent to the following mandatory procedures:
1. Any proposal to sell or transfer open space land must be in writing, signed by the
mayor, and must include a description of the land to be sold or transferred, the purpose of
the proposed sale or transfer, the proposed purchaser of the land, the amount of the
proposed purchase price, the anticipated future use of the land, any anticipated change in
zoning that would be required to implement that proposed future use, and a statement by
the mayor explaining why the proposed sale or transfer of the open space land is in the
best interest of the city.
2. Holding a public hearing before the mayor and the city council.
3. Providing notice of the proposed sale or transfer and the public hearing by:
a. Publication of a notice for two (2) successive weeks, beginning at least thirty (30) days
in advance of the hearing, in a newspaper of general circulation in the city, no less than
one-fourth (t/4) page in size, with type no smaller than eighteen (18) point, surrounded by
a one-fourth inch ('/4") border, in a portion of the newspaper other than where the legal
notices and classified advertisements appear, containing the information set forth in the
form below;
b. Posting two (2) signs measuring at least two feet by three feet (2' x 3') each, on the land
proposed for sale or transfer at least thirty (30) days in advance of the hearing, containing
the information set forth in the form below; and
c. Mailing notice, at least thirty (30) days in advance of the hearing, to all property
owners of record within one thousand feet (1,000') of the land proposed for sale or
transfer, containing the information set forth in the form below.
d. Any notice published, posted or mailed pursuant to this section shall state substantially
as follows:
NOTICE OF PROPOSED SALE OR TRANSFER OF PUBLICLY OWNED OPEN SPACE
LAND
The Mayor of Salt Lake City is proposing to sell or transfer certain Open Space Lands
owned by Salt Lake City located at [street location] for $[proposed amount of sale] to
[proposed buyer] for future use as [proposed future use].
A public hearing on this proposal will be held before the Mayor and the City Council on
[date of hearing] at the Salt Lake City & County Building, 451 South State Street, room
315, Salt Lake City, Utah, at [time of hearing] p.m.
Any individual wishing to address this proposal is invited to attend and to express their
views to the Mayor and the City Council at that hearing.
4. Following the public hearing, the city council may elect to conduct an advisory vote as
to the proposed sale or transfer of the open space land.
5. No sale or transfer of open space land may occur until at least six (6) months after the
conclusion of the public hearing in order to provide an opportunity to explore other
alternatives to the proposed sale or transfer of the open space lands.
B. Any lands, conservation easements or other interests in land: 1) acquired by the city in
partnership with other entities, units of government, or other parties; or 2) lands,
conservation easements or other interests in land received by donation, bequest, devise,
or dedication, may only be authorized for sale, conversion, exchange or other transfer if
such action is allowed for in the instrument under which the land, conservation easement
or other interest in land was conveyed to, or acquired by, the city. Funds derived from the
sale, disposition, exchange or removal of land from the open space lands program shall
be deposited into the fund for its intended purposes. (Ord. 84-04 § 1, 2004)
salaam MOATS
LYNN H. PACE LAW DEPARTMENT
DEPUTY CITY ATTORNEY
MEMORANDUM
To: Rick Graham
Duran Lucas
Emmy Storeheim
cc: David Everitt
Cindy Gust -Jenson
Ed Rutan
From: Lynn H. Pace /''
Date: November 9, 2009
RALPH BECKER
MAYOR
EDWIN P. RUTAN, II
CRY ATTORNEY
Privileged & Confidential
Re: Legal Opinion Regarding Use of Proceeds from the Sale of Open Space Golf
Property
This memorandum is in response to your collective request for a legal opinion regarding
a conflict in the Salt Lake City Code concerning the use of proceeds from the sale of open space
property. Copies of emails which I have received from you relative to this request are attached.
Question Presented:
If open space property owned by a City enterprise fund is sold, are the
proceeds from that sale to be handled pursuant to the City's Open Space Lands
Program (City Code Section 2.90.120) or pursuant to the City's Ordinance
regarding the disposition of proceeds from the sale of surplus real property (City
Code Section 2.58.060)?
Short Answer:
The proceeds from the sale of open space property owned by an enterprise
fund should be deposited back into the enterprise fund, consistent with the City's
ordinance regarding the disposition of proceeds from the sale of surplus real
property, set forth in City Code section 2.58.060. See further discussion below.
451 SOUTH STATE STREET, ROOM 505, P.OjBox 145478 SALT LAKE CffY, UT 84114-5478
TELEPHONE: 801-535-7788 FAX: 801-535-7840
Background:
The City's Open Space Lands Program, located in Chapter 2.90 of the Salt Lake City
Code was adopted in 2004. That ordinance was intended to provide additional protections from
the sale or conversion of City owned open space property. Pursuant to that ordinance, all City
owned property which is zoned as open space, is subject to the City's Open Lands Program.
Pursuant to Section 2.90.120B of that section, "Funds derived from the sale, disposition,
exchange or removal of land from the open space lands program shall be deposited into the fund
for its intended purposes [purchase and preservation of open space lands]." That section makes
no distinction between open space property owned by the City's general fund, and open space
property owned by an enterprise fund.
In contrast, Section 2.58.060 of the City Code, adopted or most recently amended in
1991, addresses the disposition of proceeds from the sale of City owned real property as follows:
Disposition of Proceeds: "All proceeds or revenue from the sale of any
real property sold by the City, including real property declared surplus by an
internal service fund of the City, shall be deposited in a surplus property account
within the capital improvements fund of the general fund. However, if the
property was purchased with monies from an enterprise fiord, or from properties
attributable by the Mayor to use by an existing enterprise fund, then the proceeds
or revenue shall be deposited in a surplus property account within that funds
capital improvements fund. Funds within surplus property accounts may not be
expended without prior appropriation or approval of the City Council."
The City Administration is currently pursuing a proposal to surplus and sell a 3 acre
parcel of the Rose Park Golf Course to the Guadalupe School. The golf course property is zoned
open space, and thus subject to the City's Open Space Lands Program. However, pursuant to
Section 2.43.010 of the City Code, the golf course property is also owned by the Golf Enterprise
Fund. Thus, the question has arisen as to whether the proceeds from the proposed sale of the
golf course property would be deposited into the City's Open Space Lands Program, pursuant to
Section 2.90.120B, or back into the Golf Enterprise Fund, pursuant to Section 2.58.060.
Discussion:
Salt Lake City is subject to the Uniform Fiscal Procedures Act for Utah Cities, as set
forth in Title 10, Chapter 6 of the Utah Code. Section 10-6-108 of that act states that "Each City
shall maintain, according to its own accounting needs, some or all of the funds and account
groups in its system of accounts, as prescribed in the Uniform Accounting Manual for Utah
Cities." This Uniform Accounting Manual for Utah Cities is also occasionally referenced in the
Salt Lake City Code (See City Code Section 2.73.030, establishing the Intermodal Center as an
enterprise fund, to be administered in accordance with the Uniform Fiscal Procedures Act for
Utah Cities and the Uniform Accounting Manual for Utah Cities).
The Uniform Accounting Manual for Utah Cities has several sections addressing the
establishment and administration of enterprise funds. (See Section III.A.03.01) In addition,
Utah Code Annotated section 10-6-135(1) requires that the governing body of each City must
adopt a operating and capital budget for each enterprise fund as required by the Uniform
Accounting Manual for Utah Cities. While I have not attempted to explore all of the specifics of
the Utah Code and the Utah Accounting Manual for enterprise funds, it is clear that the
requirements for how an enterprise fund is managed, including the segregation of such funds
separate from the City's general fund, is a requirement that is imposed by Utah State law. As
such, those requirements cannot be modified by City ordinance.
With respect to the disposition of the proceeds from the sale of City owned real property,
Section 2.58.060 of the City Code requires the segregation of the proceeds of the sale of real
property owned by an enterprise fund, as required by State law. As mentioned previously,
Section 2.90.120B of the City Open Space Lands Program, would require the proceeds from any
sale to be deposited into the City's Open Space Lands Fund, without regard to whether or not the
property was owned by an enterprise fund. This latter provision, if applied to the sale of
property owned by an enterprise fund, would violate the requirements of State law with respect
to the accounting for enterprise fund revenues.
Accordingly, if open space real property owned an enterprise fund is sold, the proceeds
from that sale should be returned to the enterprise fund, as set forth in City Code Section
2.58.060, and as required by State law. Our Office would also recommend that the City Council
consider amending City Code Section 2.90.120B to create an exception to the requirements
stated therein for open space property owned by an enterprise fund.
If you have any further questions concerning this matter, please let me know.
HB_ATTY-#10565-VI-Memorandum To Rich Graham Duran_Lucas_And_EmmyStoreheim
Z
es
RICHARD GRAHAM
ROBS 0...ROCKY^ ANDERSO
DEPARTMENT OF PUBLIC SERVICES wwrert
November 28, 2007
Mayor Ralph Becker
Salt Lake City Council Members
451 South State Street
Salt Lake City, Utah 84111
Dear Mayor and City Council Members:
The citizen members of the Salt Lake City Golf Enterprise Fund Advisory Board
respectfully submit the following letter for your consideration.
Throughout the `90's, the golf industry experienced unprecedented growth. Then, almost
as rapidly as interest had grown in the game, a period of stagnation set in. Theories about
the slowdown arose: a sagging economy, the cost of the game in many areas of the
country, the proliferation of golf facilities, the inherent difficulty of the game, and an
aging golfer population —none of which, when taken alone, adequately accounted for the
decline in rounds played at many facilities.
The Wall Street Journal reported on April 2, 2007, this sobering fact: "Last year, for the
first time in 60 years, more courses closed in the U.S. than opened." As dire as that may
sound and as stagnant as the national golf market has been in recent years, we in Utah
have a number of singular advantages that industry managers in others areas of the
country do not have. Our population continues to grow at an accelerated pace, fueled by
a continued high birth rate and the desirability of Utah as a preferred place of residence
by those relocating from other states —both of which predict good news for the future of
golf in Utah. Statistically, our senior population lives longer than those in other states
and enjoys a healthier, more active lifestyle well into their 70's, 80's and even 90's, a
factor that bodes well for golf now and into the future. Compared to facilities around the
nation, Utah public golf courses offer their clientele a quality golf experience for a
reasonable price. Still, Salt Lake City Golf has not been immune to the decline in rounds
played per golf course over the past decade (see attached Total Rounds Spreadsheet), and
as new golf course construction continues to advance in Salt Lake County, as well as in
neighboring counties to the north, south, east, and west (see attached New Public Golf
Course Development List), the City courses find themselves struggling to fund a timely
equipment replacement program and major capital improvement projects in the midst of a
highly competitive environment.
The same Journal article offered a different perspective on one possible solution to the
declining numbers: "Golf has hied hard to draw new players. But it may have missed a
bigger opportunity: getting more rounds out of its most avid golfers." Golf professionals
know this intuitively; just as they know that avid golfers are always looking for ways to
get the "best bang for their buck." Locally, the rapid pace of new public golf course
openings, which has outpaced the modest increase in demand, has created a competitive
WOLF DIVISION
2375 SOUTH 500 EAST, SALT LAKE CITY, UTAH B4106
TELEPHONE. B0I.485-7730 FAX. B01.466.6703
enviromnent where "best bang for the buck" has come to mean green fee discounts. This
practice has been a boon to some golfers who hop from course to course looking for the
deal of the day. But golf course managers, who have offered discounts hoping to
increase their share of an over -supplied market, have discovered that although their
efforts might have resulted in a small, short-term increase in rounds, this strategy failed to
result in long-term revenue growth.
The desirability of maintaining green space in the City demands that we ensure the fiscal
health of our Salt Lake City golf courses. If we take into account the Wall Street
Journal 's suggestion that part of the solution lies with our "most avid golfers," then the
problem can be framed by asking what must be done to attract dedicated patrons to Salt
Lake City courses and to encourage their loyalty to our facilities while charging them a
fair price for these services? Given that facility conditioning ranks as the top factor
influencing where golfers play, Salt Lake City golf courses and associated support
facilities must be upgraded and brought current with the atmosphere and services found
at the best public facilities locally, statewide, and beyond.
Golfers want to feel that their dollar is buying the very best golf experience possible.
This experience begins with the amenities provided to anyone walking through the door.
What services are offered by the pro shop? Is the clubhouse inviting? Does the
restaurant provide quality food service? Are the restrooms clean and attractive? Are the
grounds around the clubhouse well maintained? Are practice areas available for driving,
iron practice, chipping, and putting? Is the course itself in good condition and enjoyable
to play? How is the pace of play? Are golf course employees friendly and helpful —both
in the pro shop and on the course? The list goes on. The problem is that too often the
money runs out before a course is able to invest into the new maintenance equipment and
improved facilities required to provide the very best public golf experience possible.
In Salt Lake City, the factor that contributes most seriously to our failure to meet the
standards set by the best public golf facilities is the on -going problem of deferred capital
improvements: the practice of allowing machinery and infrastructure to deteriorate by
postponing prudent but less than critical renewal, renovation, or replacement in an effort
to save cost, labor and/or materials in the short term. Salt Lake City Golf has been in a
perpetual state of deferring capital improvements, and the continued neglect or
postponement of essential projects has brought our system to a near critical point.
As a governmentally established "enterprise fund," Salt Lake City's golf courses are
financed and operated in a manner similar to private business enterprises. The costs of
providing golf -related goods and services to the general public on a continuing basis are
intended to be funded through user charges. However, because a substantial portion of
the Golf Fund's revenue base has been required annually to service the bond associated
with the construction of Wingpointe and eighteen additional holes at Mountain Dell, the
task of replacing the machinery and improving the infrastructure of Salt Lake City's golf
courses in a prudent manner has proven increasingly difficult over the past decade and
will continue to be so without an infusion of capital dollars from new sources.
Salt Lake City Golf cannot be financially successful when facilities include such
inadequacies as outdated, wasteful, and labor-intensive manual irrigation systems;
clubhouses that are unable to host corporate tournaments, banquets, and other public
events; dilapidated permanent and embarrassing portable on -course restroom facilities;
driving ranges that do not allow for the use of today's improved golf equipment; a lack of
cart paths in key locations required to provide quality turf conditions; a lack of rip rap or
gabion baskets to prevent erosion to lake banks; and maintenance facilities without
adequate equipment and chemical storage bays and power and water supplies. In order to
compete with the surrounding area golf courses and continue to operate as a self-
sufficient enterprise fund, Salt Lake City Golf must find the means to upgrade facilities.
The Director of Golf, in conjunction with the Golf Course Superintendents, Head Golf
Professionals, and Golf Enterprise Fund Advisory Board, has compiled a list of deferred
capital improvement projects that are now critical to the infrastructure if we expect our
golf courses to compete in today's marketplace. This attached CIP Potential Funding
Sources, Priorities, and Projected Costs Spreadsheet includes both "A" and "B" priority
items that will require a preliminary estimate of $17 to $19 million in capital funding.
Unfortunately, the costs associated with these pressing capital improvement needs at all
Salt Lake City golf courses extend beyond the Golf Fund's ability to generate funding for
this purpose through operating revenues. While funding must come from multiple
sources, the primary solution lies in the Golf Division divesting itself of surplus property
on selected golf courses. By transferring this property to other Salt Lake City divisions
or departments for recreational, open space, or facility needs with a fair market payment
going to the Golf Fund, or by selling this surplus property for residential or commercial
development purposes, the Salt Lake City Golf Division could fund up to an estimated
$14 million of its top -priority capital improvement projects. A preliminary evaluation
including formal property appraisals shows the feasibility of taking such action.
The improved services provided by our golf facilities as a result of these capital
improvement projects will most certainly result in an increase in patronage, which in turn
will translate into greater revenues. This increased revenue, combined with the FY2008
retirement of the Wingpointe and Mountain Dell Construction Bond, will allow the Golf
Division to fund on -going operations, a long-term equipment replacement program, and
third tier capital improvements with revenues generated through normal operations.
The citizen members of the Salt Lake City Golf Enterprise Fund Advisory Board strongly
urge both the Mayor and the City Council to consider, review, and adopt this innovative
solution by allowing the Golf Division to divest itself of land bordering select City
courses through transfer or sale for the express purpose of reinvesting all earnings into
the Golf Fund. The proceeds from this transfer or sale are to be used solely for
implementing and bringing to completion our long -deferred and much needed City golf
facility capital improvement projects. Funding of "A" priority Golf CIP items by means
of this process is of primary importance; however, after those golf facility infrastructure
needs have been met, any surplus funds remaining should then be used to address as
many "B" level capital projects as possible.
If the Golf Division is denied the opportunity to generate funding for long -deferred major
capital improvement projects through the transfer or sale of surplus golf course property,
Salt Lake City's golf courses will be faced with the following two less than acceptable
options: I) ask the City for a general fund subsidy from tax monies to help pay for the
completion of deferred capital improvements at the golf courses, or 2) face a grim
financial future as deteriorating golf facility conditions coupled with a very competitive
public golf market result in a downward spiral of decreasing rounds and revenues.
Neither of the above options seems acceptable given Salt Lake City Golfs mandate to
remain a self-sufficient enterprise fund free of taxpayer subsidy combined with its
potential to be one of the top public golf systems in the country that 1) provides a high -
quality, affordable recreational amenity to a significant portion of the community, 2)
beautifies and preserves valuable open space, and 3) plays a key role in tourism and
economic development efforts.
The Golf Enterprise Fund Advisory Board requests that the Mayor and City Council
authorize the Golf Director to proceed in solving the problem of deferred capital
improvements through the transfer or sale of surplus real property. Concurrently, the
potential for the development of partnerships with businesses, educational institutions,
golf associations, and private citizens should be explored in an effort to fund additional
capital improvement projects and otherwise financially benefit Salt Lake City's golf
program.
Sincerely,
Alan Seko
fah
•
•
ROSE PARK GOLF COURSE
3.16 ACRE PARCEL
1525
27 26
coicuion
us, aw6 dot'nivmaUm
08-23-351-001
08-23-351-002
ROSE PARK GOLF COURSE
ROSE PARK SUB PLAT "Z"
SUNSET 0RI1(
ROSE PARK SUB PLAT "V"
1200 WEST STREET
PORTION TO BE DEDICATED
2 BY THIS PLAT
OUP ORT •VENUE
3001
LOT 1
Beginning at the northeast corner of lot 29,
Rose Park Subdivision Plat "V", a subdivision
in port of sections 26 & 27, Township 1
North, Range 1 West, Salt Lake Base and
Meridian; thence N89'28'17"W 30.88 feet
along a fence between Rose Park Subdivision
Plot "V" and Rose Park Golf Course; thence
N39'43'34"W 287.80 feet along a fence
between Rose Park Subdivision Plat "Z" and
Rose Park Golf Course to a point of curve,
radial line bears S50'16'26"W with a radius
of 558.81 feet; thence along said curved
fence to the left 209.27 feet to the east
line of a 25 foot power line easement;
thence along said easement the next 2
courses. N42'41'28"E 287.12 feet and
N49'32'24"E 238.54 feet to the west
right—of—way of 1200 West Street; thence
S00'04'26"W along said right—of—way 719.93
feet to the point of beginning, containing
3.16 acres more or less.
PRELIMINARY AUG 09
1
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A
SALT LAKE CITY CORPORATION
1
61
21
k
s
3'
1200 NORTH STREET
1451
RECEIVED JAN 121010
RICHARD GRAHAM
PRIELIC CERVICES DIRECTOR
UT OIN
DEPARTMENT OF PUBLIC SERVICES
DIRECTORS OFFICE
MEMORANDUM
TO: Salt Lake City Council
J.T. Martin, Chair
FROM: Mayor Ralph Becker/c/ >
DATE: January 8, 2010
RE: Proposal for Removal of Lands from the Open Space Programs
RALPH BECKER
MAYOR
Description of the Land to be Sold or Transferred
3.16 acres of Rose Park Golf Course property located at 1200 West between 1300 North and
1400 North. Attached is a map and legal description.
Purpose of the Proposed Sale
The Golf Enterprise Fund has over $20M in deferred capital improvement priorities that cannot
be funded with projected operational budgets. The proceeds generated from the sale of the 3.16
acres of Rose Park Golf Course property near the 17th teeing area will be earmarked for some of
these projects including the expansion of the practice range, construction of new tees, and related
improvements to the Rose Park Golf Course.
Proposed Purchaser of the Land
The Guadalupe Charter School is interested in purchasing the 3.16 acres of Rose Park Golf
Course property from the City.
The Anticipated Future Use of the Land
The board and staff of the Guadalupe School have notified the City that they plan to build a new
school at this location if they are successful in acquiring the property.
Anticipated Change in Zoning Required to Implement Proposed Future Use
No zoning change is anticipated. State law states that charter schools shall be considered a
permitted use in all zoning districts within a municipality. State law requires such projects to
comply with open space zoning regulations relating to setback, height, bulk and massing
regulations, off -site parking, curb cut, traffic circulation, construction staging, as well as any
other regulation needed to avoid unreasonable risks to health and safety.
LOCATION: 451 SOUTH STATE STREET, ROOM 13B SALT LAKE CITY, UTAH 8411 1.3104
MAILING ADDRESS: PO BOX 145469, SALT LAKE CITY, UTAH B41 14-5459
TELEPHONE: 5O I .535.7775 FAX: 501.535.7963
L.•
The Amount of the Proposed Purchase Price
In November 2008, The Cook Group appraised this Rose Park Golf Course property at $476,000.
A downward adjustment to the selling price may be appropriate given the need for an odor
easement and utility easements. To prepare this land for sale, the Golf Fund will need to make
adjustments to the golf course irrigation system including but not limited to rerouting a main
line, installing new lateral lines, and relocating sprinkler heads. The Golf Fund also will need to
realign an open storm water drainage corridor including the connection into the Public Utilities
system. The Golf Fund will attempt to negotiate a cost -sharing agreement with the Guadalupe
School for the completion of these projects.
Mayor Becker's Explanation Why the Proposed Sale is in the City's Best Interest
As stated above, the Golf Enterprise Fund has over $20M in deferred major capital improvement
project needs that cannot be funded in the foreseeable future with the limited dollars available for
operating capital budgets. The 3.16 acres can be deemed surplus property without negatively
impacting the playability of the Rose Park Golf Course.
On December 9, 2009, the Salt Lake Planning Commission voted in favor of surplus and
subdividing the property.
While this property is zoned open space, golf course property does not come under the
jurisdiction of Salt Lake City's Open Space Lands Program. Rather, the golf courses are
operated as an enterprise fund. The Salt Lake City Golf Enterprise Fund Advisory Board has
submitted a letter recommending the transfer or sale of surplus golf course property as a way to
solve the deferred golf course capital improvement project funding issue.
The Guadalupe Charter School has been looking for a new school site in Salt Lake City for a
number of years. I strongly support its mission to provide quality educational opportunities to
minority and underprivileged members of our community.
The board and staff of the Guadalupe School have visited the site multiple times. They are
aware of the need for utility easements on this property, and are aware of the regularly occurring
odor issues. Furthermore, a school can be built at this location with minimal impact to the
adjacent neighborhood. No homes front 1200 West from 1000 North to 1300 North, the primary
entrance to this location. Furthermore, the majority of the students who will attend this school
will arrive by bus.
Additionally, a school on this site will positively impact neighboring Rosewood Park by
providing eyes that can prevent vandalism and ensure a safe setting for neighboring residents to
enjoy the various outdoor recreational opportunities provided in the park.
RICHARD GRAHAM
PO PEAL RERVICE• DIRECTOR
sAM: We `v. N CRIP Q f
DEPARTMENT OF PUBLIC SERVICES
DIRECTORS OFFICE
OUNCIL TRANSMITTAL
' RECEIVED JAN 08 2010
RALPH BECKER
MAYOR
Date Received: 01 i 4 1 200 of
David E -ritt, Chief of Date Sent to Counc 1: 61
TO: Salt Lake City Council
J.T. Martin, Chair
FROM: Rick Graham 1 0
Public Services Director
DATE: January 8, 2010
SUBJECT: Request a public hearing to consider the removal of real property from the
City's open space lands program. The land in question is 3.16 acres of Rose Park Golf
Course property located at 1200 West between 1300 North and 1400 North. See attached
map and legal description.
STAFF CONTACT: David Terry Duran Lucas
Manager Real Property Agent
Golf Enterprise Fund Property Management
801/485-7831 801/535-6308
DOCUMENT TYPE: Request for public hearing as required by City Code
2.90.120; Removal of Lands from Open Space Lands Program.
RECOMMENDATION: Approve the removal of 3.16 acres of Rose Park Golf
Course property located at 1200 West between 1300 North and 1400 North from the
City's open space lands program inventory.
BUDGET IMPACT: In November 2008, The Cook Group appraised this Rose
Park Golf Course property at $476,000. See attached proposal from Mayor Becker.
BACKGROUND/DISCUSSION: The Golf Enterprise Fund has over $20M in
deferred capital improvement projects that cannot be funded with projected operational
budgets. The proceeds generated from the sale of the 3.16 acres of Rose Park Golf
Course property near the 176' teeing area will be earmarked for some of these projects
including the expansion of the practice range, construction of new tees, and related
improvements to the Rose Park Golf Course.
The Guadalupe Charter School is interested in purchasing the 3.16 acres of Rose Park
operty from the City for the purpose of building a new school. State law jlaj
SOUTH STATE STREET ROOM 13S SALT LAKE CITY UTAH 841 11 SCANNED TO:v
JAN 0 8 2010
By_Y1�
DN: 46,
lr., '�
AILING ADDRESS: P❑ SOX 145469, SALT LAKE CITY, UTAH 841 14-5469 SCANNED B
TELEPHONE: BDl WWW RLDOCI,..coi.r%• SDI-534-7963 DATE: / •? �o
says that charter schools shall be considered a permitted use in all zoning districts within
a municipality. State law requires such projects to comply with open space zoning
regulations relating to setback, height, bulk and massing regulations, off -site parking,
curb cut, traffic circulation, construction staging, as well as any other regulation needed
to avoid unreasonable risks to health and safety.
City Code 2.90.120 Removal of Lands from Open Space Lands Program states that funds
derived from the sale, disposition, exchange or removal of land from the open space lands
program shall be deposited into the open space lands fund for its intended purposes. City
Code 2.58.060 states that all proceeds or revenue from the sale of any real property
within an enterprise fund shall be deposited in a surplus property account within that
fund's capital improvements fund. Attached is a legal opinion from Lynn Pace on this
apparent contradiction within City Code.
PUBLIC PROCESS: The Salt Lake City Golf Enterprise Fund Advisory Board is
in favor of surplusing, subdividing, and selling the 3.16 acres of Rose Park Golf Course
property to the Guadalupe Charter School for the purpose of generating funds to be used
to improve the Rose Park Golf Course. See attached letter from the Golf Advisory Board.
City Code 2.90.120 outlines the required process to remove real property from the City's
open space lands program.
2.90.120: REMOVAL OF LANDS FROM THE OPEN SPACE LANDS
PROGRAM:
A. Lands, conservation easements or other interests in land placed in the open space lands
program shall remain in the program in perpetuity unless: 1) they are transferred to a
qualified public or nonprofit land conservation entity; or 2) a sale, conversion, exchange,
or other transfer of the land, conservation easement or other interest in land is approved
by the mayor, subsequent to the following mandatory procedures:
1. Any proposal to sell or transfer open space land must be in writing, signed by the
mayor, and must include a description of the land to be sold or transferred, the purpose of
the proposed sale or transfer, the proposed purchaser of the land, the amount of the
proposed purchase price, the anticipated future use of the land, any anticipated change in
zoning that would be required to implement that proposed future use, and a statement by
the mayor explaining why the proposed sale or transfer of the open space land is in the
best interest of the city.
2. Holding a public hearing before the mayor and the city council.
3. Providing notice of the proposed sale or transfer and the public hearing by:
a. Publication of a notice for two (2) successive weeks, beginning at least thirty (30) days
in advance of the hearing, in a newspaper of general circulation in the city, no less than
one-fourth (1/4) page in size, with type no smaller than eighteen (18) point, surrounded by
a one-fourth inch (1/4") border, in a portion of the newspaper other than where the legal
notices and classified advertisements appear, containing the information set forth in the
form below;
b. Posting two (2) signs measuring at least two feet by three feet (2' x 3') each, on the land
proposed for sale or transfer at least thirty (30) days in advance of the hearing, containing
the information set forth in the form below; and
c. Mailing notice, at least thirty (30) days in advance of the hearing, to all property
owners of record within one thousand feet (1,000') of the land proposed for sale or
transfer, containing the information set forth in the form below.
d. Any notice published, posted or mailed pursuant to this section shall state substantially
as follows:
NOTICE OF PROPOSED SALE OR TRANSFER OF PUBLICLY OWNED OPEN SPACE
LAND
The Mayor of Salt Lake City is proposing to sell or transfer certain Open Space Lands
owned by Salt Lake City located at [street location] for $[proposed amount of sale] to
[proposed buyer] for future use as [proposed future use].
A public hearing on this proposal will be held before the Mayor and the City Council on
[date of hearing] at the Salt Lake City & County Building, 451 South State Street, room
315, Salt Lake City, Utah, at [time of hearing] p.m.
Any individual wishing to address this proposal is invited to attend and to express their
views to the Mayor and the City Council at that hearing.
4. Following the public hearing, the city council may elect to conduct an advisory vote as
to the proposed sale or transfer of the open space land.
5. No sale or transfer of open space land may occur until at least six (6) months after the
conclusion of the public hearing in order to provide an opportunity to explore other
alternatives to the proposed sale or transfer of the open space lands.
B. Any lands, conservation easements or other interests in land: 1) acquired by the city in
partnership with other entities, units of government, or other parties; or 2) lands,
conservation easements or other interests in land received by donation, bequest, devise,
or dedication, may only be authorized for sale, conversion, exchange or other transfer if
such action is allowed for in the instrument under which the land, conservation easement
or other interest in land was conveyed to, or acquired by, the city. Funds derived from the
sale, disposition, exchange or removal of land from the open space lands program shall
be deposited into the fund for its intended purposes. (Ord. 84-04 § 1, 2004)
VEVEGITORMIN
LYNN H. PACE LAW DEPARTMENT
DEPUTY CRY ATTORNEY
MEMORANDUM
To: Rick Graham
Duran Lucas
Emmy Storeheim
cc: David Everitt
Cindy Gust -Jenson
Ed Rutan
RALPH BECKER
MAYOR
EDWIN P. RUTAN, II
CRY ATTORNEY
Privileged & Confidential
From: Lynn H. Pace
Date: November 9, 2009
Re: Legal Opinion Regarding Use of Proceeds from the Sale of Open Space Golf
Property
This memorandum is in response to your collective request for a legal opinion regarding
a conflict in the Salt Lake City Code concerning the use of proceeds from the sale of open space
property. Copies of emails which I have received from you relative to this request are attached.
Question Presented:
rf open space property owned by a City enterprise fund is sold, are the
proceeds from that sale to be handled pursuant to the City's Open Space Lands
Program (City Code Section 2.90.120) or pursuant to the City's Ordinance
regarding the disposition of proceeds from the sale of surplus real property (City
Code Section 2.58.060)?
Short Answer:
The proceeds from the sale of open space property owned by an enterprise
fund should be deposited back into the enterprise fund, consistent with the City's
ordinance regarding the disposition of proceeds from the sale of surplus real
property, set forth in City Code section 2.58.060. See further discussion below.
451 SOUTH STATE STREET. ROOM 505, P.OjBox 145478 SALT LAKE CITY, UT 84114-5478
TELEPHONE: 801-535-7788 FAX 801-535-7840
Backsround:
The City's Open Space Lands Program, located in Chapter 2.90 of the Salt Lake City
Code was adopted in 2004. That ordinance was intended to provide additional protections from
the sale or conversion of City owned open space property. Pursuant to that ordinance, all City
owned property which is zoned as open space, is subject to the City's Open Lands Program.
Pursuant to Section 2.90.120B of that section, "Funds derived from the sale, disposition,
exchange or removal of land from the open space lands program shall be deposited into the fund
for its intended purposes [purchase and preservation of open space lands]." That section makes
no distinction between open space property owned by the City's general fund, and open space
property owned by an enterprise fund.
In contrast, Section 2.58.060 of the City Code, adopted or most recently amended in
1991, addresses the disposition of proceeds from the sale of City owned real property as follows:
Disposition of Proceeds: "All proceeds or revenue from the sale of any
real property sold by the City, including real property declared surplus by an
internal service fund of the City, shall be deposited in a surplus property account
within the capital improvements fund of the general fund. However, if the
property was purchased with monies from an enterprise fund, or from properties
attributable by the Mayor to use by an existing enterprise fund, then the proceeds
or revenue shall be deposited in a surplus property account within that funds
capital improvements fund. Funds within surplus property accounts may not be
expended without prior appropriation or approval of the City Council."
The City Administration is currently pursuing a proposal to surplus and sell a 3 acre
parcel of the Rose Park Golf Course to the Guadalupe School. The golf course property is zoned
open space, and thus subject to the City's Open Space Lands Program. However, pursuant to
Section 2.43.010 of the City Code, the golf course property is also owned by the Golf Enterprise
Fund. Thus, the question has arisen as to whether the proceeds from the proposed sale of the
golf course property would be deposited into the City's Open Space Lands Program, pursuant to
Section 2.90.120B, or back into the Golf Enterprise Fund, pursuant to Section 2.58.060.
Discussion:
Salt Lake City is subject to the Uniform Fiscal Procedures Act for Utah Cities, as set
forth in Title 10, Chapter 6 of the Utah Code. Section 10-6-108 of that act states that "Each City
shall maintain, according to its own accounting needs, some or all of the funds and account
groups in its system of accounts, as prescribed in the Uniform Accounting Manual for Utah
Cities." This Uniform Accounting Manual for Utah Cities is also occasionally referenced in the
Salt Lake City Code (See City Code Section 2.73.030, establishing the Intennodal Center as an
enterprise fund, to be administered in accordance with the Uniform Fiscal Procedures Mt for
Utah Cities and the Uniform Accounting Manual for Utah Cities).
The Uniform Accounting Manual for Utah Cities has several sections addressing the
establishment and administration of enterprise funds. (See Section III.A.03.01) In addition,
Utah Code Annotated section 10-6-135(1) requires that the governing body of each City must
adopt a operating and capital budget for each enterprise fund as required by the Uniform
Accounting Manual for Utah Cities. While I have not attempted to explore all of the specifics of
the Utah Code and the Utah Accounting Manual for enterprise funds, it is clear that the
requirements for how an enterprise fund is managed, including the segregation of such funds
separate from the City's general fund, is a requirement that is imposed by Utah State law. As
such, those requirements cannot be modified by City ordinance.
With respect to the disposition of the proceeds from the sale of City owned real property,
Section 2.58.060 of the City Code requires the segregation of the proceeds of the sale of real
property owned by an enterprise fund, as required by State law. As mentioned previously,
Section 2.90.120B of the City Open Space Lands Program, would require the proceeds from any
sale to be deposited into the City's Open Space Lands Fund, without regard to whether or not the
property was owned by an enterprise fund. This latter provision, if applied to the sale of
property owned by an enterprise fund, would violate the requirements of State law with respect
to the accounting for enterprise fund revenues.
Accordingly, if open space real property owned an enterprise fund is sold, the proceeds
from that sale should be returned to the enterprise fund, as set forth in City Code Section
2.58.060, and as required by State law. Our Office would also recommend that the City Council
consider amending City Code Section 2.90.120B to create an exception to the requirements
stated therein for open space property owned by an enterprise fund.
If you have any further questions concerning this matter, please let me know.
HB ATTY-#10565-V1-Memorandum To Rich_Graham Duran Lucas_Aad Emmy_Storeheim
Z
RICHARD GRAHAM
November 28, 2007
WW2 Mt @MEW
ROBS C. "ROCKY.' ANDERSO
DEPARTMENT OF PUBLIC SERVICES METIER
Mayor Ralph Becker
Salt Lake City Council Members
451 South State Street
Salt Lake City, Utah 84111
Dear Mayor and City Council Members:
The citizen members of the Salt Lake City Golf Enterprise Fund Advisory Board
respectfully submit the following letter for your consideration.
Throughout the '90's, the golf industry experienced unprecedented growth. Then, almost
as rapidly as interest had grown in the game, a period of stagnation set in. Theories about
the slowdown arose: a sagging economy, the cost of the game in many areas of the
country, the proliferation of golf facilities, the inherent difficulty of the game, and an
aging golfer population —none of which, when taken alone, adequately accounted for the
decline in rounds played at many facilities.
The Wall Street Journal reported on April 2, 2007, this sobering fact: "Last year, for the
first time in 60 years, more courses closed in the U.S. than opened." As dire as that may
sound and as stagnant as the national golf market bas been in recent years, we in Utah
have a number of singular advantages that industry managers in others areas of the
country do not have. Our population continues to grow at an accelerated pace, fueled by
a continued high birth rate and the desirability of Utah as a preferred place of residence
by those relocating from other states both of which predict good news for the future of
golf in Utah. Statistically, our senior population lives longer than those in other states
and enjoys a healthier, more active lifestyle well into their 70's, 80's and even 90's, a
factor that bodes well for golf now and into the future. Compared to facilities around the
nation, Utah public golf courses offer their clientele a quality golf experience for a
reasonable price. Still, Salt Lake City Golf has not been immune to the decline in rounds
played per golf course over the past decade (see attached Total Rounds Spreadsheet), and
as new golf course construction continues to advance in Salt Lake County, as well as in
neighboring counties to the north, south, east, and west (see attached New Public Golf
Course Development List), the City courses find themselves struggling to fund a timely
equipment replacement program and major capital improvement projects in the midst of a
highly competitive environment.
The same Journal article offered a different perspective on one possible solution to the
declining numbers: "Golf has tried hard to draw new players. But it may have missed a
bigger opportunity: getting more rounds out of its most avid golfers." Golf professionals
know this intuitively; just as they know that avid golfers are always looking for ways to
get the "best bang for their buck." Locally, the rapid pace of new public golf course
openings, which has outpaced the modest increase in demand, bas created a competitive
GOLF DIVISION
ZZ76 SOUTH 900 EAST, HALT LAKE CITY, UTAH 84106
TELEPHONE: BO1.486.7720 FAX: 801.466.6705
environment where "best bang for the buck" has come to mean green fee discounts. This
practice has been a boon to some golfers who hop from course to course looking for the
deal of the day. But golf course managers, who have offered discounts hoping to
increase their share of an over -supplied market, have discovered that although their
efforts might have resulted in a small, short-term increase in rounds, this strategy failed to
result in long-term revenue growth.
The desirability of maintaining green space in the City demands that we ensure the fiscal
health of our Salt Lake City golf courses. If we take into account the Wall Street
Journal 's suggestion that part of the solution lies with our "most avid golfers," then the
problem can be framed by asking what must be done to attract dedicated patrons to Salt
Lake City courses and to encourage their loyalty to our facilities while charging them a
fair price for these services? Given that facility conditioning ranks as the top factor
influencing where golfers play, Salt Lake City golf courses and associated support
facilities must be upgraded and brought current with the atmosphere and services found
at the best public facilities Iocally, statewide, and beyond.
Golfers want to feel that their dollar is buying the very best golf experience possible.
This experience begins with the amenities provided to anyone walking through the door.
What services are offered by the pro shop? Is the clubhouse inviting? Does the
restaurant provide quality food service? Are the restrooms clean and attractive? Are the
grounds around the clubhouse well maintained? Are practice areas available for driving,
iron practice, chipping, and putting? Is the course itself in good condition and enjoyable
to play? How is the pace of play? Are golf course employees friendly and helpful —both
in the pro shop and on the course? The list goes on. The problem is that too often the
money runs out before a course is able to invest into the new maintenance equipment and
improved facilities required to provide the very best public golf experience possible.
In Salt Lake City, the factor that contributes most seriously to our failure to meet the
standards set by the best public golf facilities is the on -going problem of deferred capital
improvements: the practice of allowing machinery and infrastructure to deteriorate by
postponing prudent but less than critical renewal, renovation, or replacement in an effort
to save cost, labor and/or materials in the short term. Salt Lake City Golf has been in a
perpetual state of deferring capital improvements, and the continued neglect or
postponement of essential projects has brought our system to a near critical point.
As a governmentally established "enterprise fund," Salt Lake City's golf courses are
financed and operated in a manner similar to private business enterprises. The costs of
providing golf -related goods and services to the general public on a continuing basis are
intended to be funded through user charges. However, because a substantial portion of
the Golf Fund's revenue base has been required annually to service the bond associated
with the construction of Wingpointe and eighteen additional holes at Mountain Dell, the
task of replacing the machinery and improving the infrastructure of Salt Lake City's golf
courses in a prudent manner has proven increasingly difficult over the past decade and
will continue to be so without an infusion of capital dollars from new sources.
Salt Lake City Golf cannot be financially successful when facilities include such
inadequacies as outdated, wasteful, and labor-intensive manual irrigation systems;
clubhouses that are unable to host corporate tournaments, banquets, and other public
events; dilapidated permanent and embarrassing portable on -course restroom facilities;
driving ranges that do not allow for the use of today's improved golf equipment; a lack of
cart paths in key locations required to provide quality turf conditions; a lack of rip rap or
gabion baskets to prevent erosion to lake banks; and maintenance facilities without
adequate equipment and chemical storage bays and power and water supplies. In order to
compete with the surrounding area golf courses and continue to operate as a self-
sufficient enterprise fund, Salt Lake City Golf must find the means to upgrade facilities.
The Director of Golf, in conjunction with the Golf Course Superintendents, Head Golf
Professionals, and Golf Enterprise Fund Advisory Board, has compiled a list of deferred
capital improvement projects that are now critical to the infrastructure if we expect our
golf courses to compete in today's marketplace. This attached CIP Potential Funding
Sources, Priorities, and Projected Costs Spreadsheet includes both "A" and "B" priority
items that will require a preliminary estimate of $17 to $19 million in capital funding.
Unfortunately, the costs associated with these pressing capital improvement needs at all
Salt Lake City golf courses extend beyond the Golf Fund's ability to generate funding for
this purpose through operating revenues. While funding must come from multiple
sources, the primary solution lies in the Golf Division divesting itself of surplus property
on selected golf courses. By transferring this property to other Salt Lake City divisions
or departments for recreational, open space, or facility needs with a fair market payment
going to the Golf Fund, or by selling this surplus property for residential or commercial
development purposes, the Salt Lake City Golf Division could fund up to an estimated
$14 million of its top -priority capital improvement projects. A preliminary evaluation
including formal property appraisals shows the feasibility of taking such action.
The improved services provided by our golf facilities as a result of these capital
improvement projects will most certainly result in an increase in patronage, which in turn
will translate into greater revenues. This increased revenue, combined with the FY2008
retirement of the Wingpointe and Mountain Dell Construction Bond, will allow the Golf
Division to fund on -going operations, a long-term equipment replacement program, and
third tier capital improvements with revenues generated through normal operations.
The citizen members of the Salt Lake City Golf Enterprise Fund Advisory Board strongly
urge both the Mayor and the City Council to consider, review, and adopt this innovative
solution by allowing the Golf Division to divest itself of land bordering select City
courses through transfer or sale for the express purpose of reinvesting all earnings into
the Golf Fund. The proceeds from this transfer or sale are to be used solely for
implementing and bringing to cornpletion_our long -deferred and much needed City golf
facility capital improvementprojects. Funding of "A" priority Golf CIP items by means
of this process is of primary importance; however, after those golf facility infrastructure
needs have been met, any surplus funds remaining should then be used to address as
many `B" level capital projects as possible.
If the Golf Division is denied the opportunity to generate funding for long -deferred major
capital improvement projects through the transfer or sale of surplus golf course property,
Salt Lake City's golf courses will be faced with the following two less than acceptable
options: 1) ask the City for a general fund subsidy from tax monies to help pay for the
completion of deferred capital improvements at the golf courses, or 2) face a grim
financial future as deteriorating golf facility conditions coupled with a very competitive
public golf market result in a downward spiral of decreasing rounds and revenues.
Neither of the above options seems acceptable given Salt Lake City Golfs mandate to
remain a self-sufficient enterprise fund free of taxpayer subsidy combined with its
potential to be one of the top public golf systems in the country that 1) provides a high -
quality, affordable recreational amenity to a significant portion of the community, 2)
beautifies and preserves valuable open space, and 3) plays a key role in tourism and
economic development efforts.
The Golf Enterprise Fund Advisory Board requests that the Mayor and City Council
authorize the Golf Director to proceed in solving the problem of deferred capital
improvements through the transfer or sale of surplus real property. Concurrently, the
potential for the development of partnerships with businesses, educational institutions.
golf associations, and private citizens should be explored in an effort to fund additional
capital improvement projects and otherwise financially benefit Salt Lake City's golf
program.
Sincerely.
tat Gt--
Darian Abegglen
Cheri Ause
Alan Seko
G
o
ROSE PARK GOLF COURSE
3.16 ACRE PARCEL
08-23-351-001
08-23-351-002
ROSE PARK GOLF COURSE
1200 WEST STREET
PORTION TO BE DEDICATED
8Y THIS PLAT
ROSE PARK SUB PLAT "L"
ROSE PARK SUB PLAT "V"
LOT 1
Beginning at the northeast corner
of lot 29,
Rose Pork Subdivision Plat V. a subdivision
n part of sections 26 & 27, Township 1
North. Range 1 West. Salt Lake Base and
Meridian; thence N89128117"W 30.88 feet
along o fence between Rose Park Subdivision
Plot V' and Rose Park Golf Course; thence
N39143134"W 287.80 feet along a fence
between Rose Pork Subdivision Plot "Z" and
Rose Park Golf Course to a point of curve.
radio) line bears S50116126'W with o radius
of 558.81 feet; thence along said curved
fence to the left 209.27 feet to the east
line of a 25 foot power line easement;
thence along said easement the next 2
courses. N42141128"E 287.12 feet and
N49132124'6 238.54 feet to the west
right—of—way of 1200 West Street; thence
S0010412611W along said right—of—way 719.93
feet to the point of beginning, containing
3.16 acres more or less.
PRELIMINARY AUG 09
