HomeMy WebLinkAboutResolution - 2001-R0283 - Management Agreement With Fore Star Golf Of Lubbock - 07/12/2001Resolution No. 2001-RO283
July 12, 2001
Item No. 31
RESOLUTION
WHEREAS, Fore Star Golf of Lubbock, LLC, has requested authorization by the
City of Lubbock to operate another golf facility in Lubbock County (LakeRidge Country
Club), which written request is attached hereto as Exhibit A; and
WHEREAS, the City Council may grant such authorization under terms and
conditions approved by the City; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock does hereby grant to Fore Star
Golf of Lubbock, LLC, authorization pursuant to Section 5.4 of the October 14, 1994,
Management Agreement and the Amendment thereto dated February 24, 2000, to operate
another golf facility within Lubbock County under the terms and conditions hereinafter
set forth.
1. The new golf facility to be operated by Fore Star Golf shall not compete with
the City's existing golf facilities for the same customer (including the same tournaments).
2. There shall be a different fee structure for the new golf facility, which shall
clearly differentiate between the new golf facility and the golf facilities operated by Fore
Star for the City of Lubbock.
3. There shall be no joint advertising for the new golf facility and the golf
facilities operated by Fore Star for the City of Lubbock.
4. There shall be no discounts applied on the same days at the new golf facility
and at the golf facilities operated by Fore Star for the City of Lubbock.
Passed by the City Council this 12th day of July , 2001.
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
Ar�r,4�
Tommy G zalez, Assistzo City Manager
APPROVED AS TO FORM:
Dld G. Vand—iver, First Assistant City
Attorney
Ddres/4StarRes.doc
June 12, 2001
Don Vandiver -Letter to City (LakeRidge)- Clarification.doc Page 1
. LUU1
Exhibit A
_MEMO
TO:
Corbin Pemberton, City of Lubbock
FROM:
Steve Yonke
CC:
Gary Miller
DATE:
June 14, 2001
RE:
LakeRidge Country Club- Clarification
I hope this memo clarifies a few of the questions currently contemplated by the Lubbock
City Council and Staff.
Good Business Opportunity
1. The acquisition of LakeRidge Country Club would expand our holdings in the
Lubbock market without creating competition with Meadowbrook Golf Complex.
2. The acquisition of LakeRidge Country Club would complement our current country
club operations in Abilene, Texas (Fairway Oaks Country Club) and Las Cruces,
New Mexico (Picacho Hills Country Club).
3. Increased economies with two properties in one community.
4. Equipment sharing for specialty items that would not normally be considered for a
single operation.
5. Improved opportunities to make bulk purchases at a reduced expense.
6. Opportunities for increased manpower (trained equipment operators, customer
service staffing, etc.) during special events.
Independent Businesses
1. Meadowbrook Golf Complex offers golf.
LakeRidge Country Club offers golf, tennis, swimming, dinning and membership
considerations.
2. Meadowbrook Golf Complex offers golf on a per use basis.
LakeRidge Country Club offers club amenities on a monthly basis.
Don Vandiver - Letter to City (LakeRidgej- Clari ication.doc " �� ;4. N..A
m, Page 2 E
3. Meadowbrook Golf Complex extends no credit opportunities.
LakeRidge Country Club offers credit terms to its membership.
C. Pemberton
June 14, 2001
Page 2
Conclusions
We do not believe it is in our best interest to compete with ourselves in markets such as
Lubbock. We believe these operations will be independent of one another due to the
differences in each facilities offers of amenities and services. Our belief has been tried
and tested in the Las Cruces, New Mexico market where we own and operate both
Picacho Hills Country Club (private membership) and Sonoma Ranch Golf Course (daily
fee).
We are proud of our affiliation with the City of Lubbock and our operations at
Meadowbrook Golf Complex. We do not plan to compromise our relationship with the
City of Lubbock with this acquisition of LakeRidge Country Club.