9.1.A. PRSR 12-14-2005 - Laserfiche WebLink

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7. Replacement cost. The City must also be aware of the probable development cost of a new facility of similar size and scope. A sample development budget for a comparable executive length nine hole golf course including a driving range is depicted by the following chart: VA 1 GG V M T/11 CM COST DEVELOPMENT COSTS Lard 35 Acres ~ $20,000 per Acre 700,000 Loan Cbsng E~erse 150,000 Constrlcdon Interest 150,000 Corstrlc6on BaxSr~_ __ _.._ 1.25% _. _ 21,000 DEVELOPMENT COSTS-SUBTOTAL 1,021,000 GOLF COURSE PertrYmrg 20,000 100.000 MohilizaEONSi[e Preparetion 1 pp Opp Excavafiav('radng 150,000 Draurage 50,000 Feature Cors6vtion 200 ppp Irtigation 250000 Cart PatttsKJtlter StrucWres 50,000 ~~ ~'~ Co~bt/ction 100,000 Grow-iryMaturation _. .. 150,000 GOLFCOURSE-SUBTOTAL 1,170,000 CLUBHOUSE uiaia+se c:onsmcoon 1,800 square feet ®$200 per square foot 360.000 Parking waY 100,000 ~ 20,000 FumiNre, FaWres_ & Equiprrrent _ _ -. 30,000 CLUBHOUSE-SUBTOTAL 510,000 MAINTENANCE FACILITY Maintenance BuBdrg 1,500 square feet®$100 per square foot 150,000 ~~~~ - - _ _. _ 200,000 MA/NTENANCE FAC/L/TY-SUBTOTAL 350,000 START-UP COSTS PreOf>enirg MarkeOrg 15,000 GoH Course Fudures 10.000 Driving Range Equpment 15,000 Inventories 15,000 R Canbn9erl~Y _ _ _ _ 5.00% _ .. _ _ 155,000 START-UP COSTS -SUBTOTAL 210,ppp TOTAL DEVELOPMENT COST 3,261,000 This budget represents a fully developed government unit golf course and driving range that in the end would be superior in quality and design to the existing Pinewood Golf Course. Combining the purchase price and required property improvements for Pinewood, the City would need to invest approximately 2.6 million as a minimum in order to own and operate this existing facility. The gap of $660,000 between a new course and a used course may prove to be minor in the long term when considering the business value of a driving range component on the potential new facility. 6