6.4. SR 12-05-2005 - Laserfiche WebLink

Home Browse Search

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: CATEGORVnTEM COST DEVELOPMENT COSTS l.arD Ao;:J.jsiIicn 35 Acres @ $20,000 per Acre 700,000 Loan Closing Expense 150,000 Consbu:Iion Interest 150,000 Ca1stru::tion 8cncirg 1.25% 21,000 DEVELOPMENT COSTS - SUBTOTAL 1,021,000 GOLF COURSE Penrilling 20,000 ArcIitec:tiEngi 100,000 Mobtliza1icnlSile Preparation 100,000 Exc:avaIiInGracing 150,000 Drai1age 50,000 FeaILr'e Constn.dion 200,000 Irrigation System 250,000 Cart PalhslOlher S1rucIures 50,000 Driving Range ConslnJcti6n 100,000 Grow-inlMaturation 150,000 GOLF COURSE - SUBTOTAL 1,170,000 CLUBHOUSE Cli:lhouse Consbu:Iion 1,800 square feet @ $200 per square foot 360,000 Palking l.otIRoadway 100,000 ~ 20,000 Fumilure, FlXIures, & Equipment 30,000 CLUBHOUSE - SUBTOTAL 510,000 MAINTENANCE FACILITY Maintenance Buiking 1,500 square feet @ $100 per square foot 150,000 Maintenance ECJJipment 200,000 MAINTENANCE FACILITY - SUBTOTAL 350,000 START-UP COSTS Pre-Opening Malketing 15,000 Golf Course FIXIures 10,000 Driving Range Equipment 15,000 Inventories 15,000 Projecl~ 5.00% 155,000 START-UP COSTS - SUBTOTAL 210,000 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