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<br /> <br />Item 9.3. <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Lori Johnson, Finance and Administrative Services Director <br />Interim City Administrator <br /> <br />DATE: November 7,2005 <br /> <br />SUBJECT: Pinewood Golf Course Update <br /> <br />Mayor Klinzing is prepared to provide an update on her recent discussions with Pinewood <br />Golf Course owner Paul Krause regarding the possible purchase of the golf course by the <br />city. Staff will be prepared to discuss purchase and funding options in detail at the meeting. <br />Additionally, Parks and Recreation Director Bill Maertz has done some analysis to determine <br />whether the golf course could break even on an operating basis, excluding the land purchase. <br />He will be prepared to discuss this analysis and his expectations of use for the golf course if <br />it is purchased by the city. <br /> <br />Regarding the actual purchase of the property, the options available include a contract for <br />deed (5-year maximum term), lease with option to purchase, and outright purchase. The <br />most probable of these is a contract for deed since the city does not have funds available for <br />an outright purchase and the lease to purchase option would include an annual appropriation <br />requirement that may not be agreeable to Mr. Krause. City Attorney Peter Beck is reviewing <br />all possible options and will have written comments for distribution at the meeting. <br /> <br />Funding options for the possible golf course purchase will be discussed in detail at the <br />meeting. However, briefly, possible funding sources include reserve funds that are not <br />designated for other purposes such as funds from the RDF payment in lieu of taxes, the <br />government building reserve, the undesignated portion of the capital outlay reserve, and the <br />park dedication fund. Keep in mind that these are the same funds that would likely be used <br />to fund the YMCA contribution if the city does not opt for a referendum and possibly to <br />fund the upcoming Library expansion. The park dedication funds were programmed for <br />upcoming park capital improvements and land acquisition. The current balance available in <br />each of these funds and the annual cash flow projections will be presented so that the <br />Council may prioritize these three projects, determine if and when they will proceed, and <br />make decisions about funding. <br /> <br />s: \ Council\Lori\2005\PinewoodUpdate.doc <br />