File #: 2024-058   
Type: Administrative Item Status: Passed
In control: Board of Commissioners
On agenda: 3/12/2024 Final action: 3/12/2024
Title: Agreement with Bradley R. Behnke Golf Management LLC for Golf Professional Services at Goodrich Golf Course
Sponsors: Parks & Recreation
Attachments: 1. Professional Services Agreement, 2. Resolution

Sponsor: ​Parks & Recreation

 

Title

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Agreement with Bradley R. Behnke Golf Management LLC for Golf Professional Services at Goodrich Golf Course

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Recommendation

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1.                     Approve the agreement with Bradley R. Behnke Golf Management LLC, 427 Glenmar Avenue, Mahtomedi, MN 55115, for Golf Professional Services at Goodrich Golf Course located at 1820 Van Dyke Street, Maplewood, MN, 55109 from January 1, 2024, through December 31, 2033, with an option to extend for an additional five-year term for the estimated total contract amount of $3.3 million.

2.                     Authorize the Chair and Chief Clerk to execute the agreement.

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Background and Rationale

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Ramsey County Parks & Recreation oversees a system of four golf courses: Goodrich Golf Course, Island Lake Golf Course and Training Center, Keller Golf Course, and Manitou Ridge Golf Course.

Goodrich Golf Course is a located in Maplewood and includes an 18-hole golf course and club house. In 2022, over 37,000 rounds were played and almost 35,000 in 2023. Bradley R. Behnke Golf Management LLC has been operating the course since 2015 and the professional services agreement will end December 31, 2023.

The new agreement includes revenue share incentives for the Golf Course Professional (hereinafter referred to as Pro) to reach stated targets. These incentives will promote the sale of golf to the benefit of both the Pro and Ramsey County. The Pro will be responsible for all business expenses i. e. wages for employees, supplies and inventory necessary to meet the scope of the agreement. Terms of the new agreement are consistent with the previous agreement, with the exception of the following revenue shares:

                     Retainer- The Pro will be paid a retainer of $60,000 in years 1 through 3, $65,000 in years 4 through 7 and $70,000 in years 8 through 10.

                     Greens Fees- The Pro will receive 10% of the revenue, less sales tax, on green fees up to $475,000 and 15% over $475,000.

                     Cart Rentals- The Pro will receive 10% of the revenue, less sales tax, on cart rentals up to $162,500 and 15% of such over $162,500.

                     Food and Beverage- The Pro will pay the county 10% of the revenue for food and beverage sales, less sales tax, up to $50,000, and 5% for sales over $50,000 in the clubhouse and on the course.

 

On December 2, 2022, in accordance with county procurement policies and procedures, a competitive solicitation for golf course operations was issued for professional services at four golf courses. Below is the competitive solicitation summary:

                     Request for Bids Title: Golf Professional Services

                     Request for Bids Release Date: December 2, 2022

                     Request for Bids Response Due Date: January 4, 2023

                     Number of Contractors Notified: 1,046

                     Number of Request for Bids Responses Received: 3

                     Contractor Recommended: Behnke Golf Management LLC

 

Ramsey County Parks & Recreation recommends Bradley R. Behnke Golf Management LLC to operate Goodrich Golf Course. It has been determined that a Professional Labor Agreement will be required. Brad Behnke is engaged in the golf course industry, has demonstrated a strong commitment to providing a high level of customer service and to growing the game of golf.

 

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County Goals (Check those advanced by Action)

       Well-being             Prosperity                 Opportunity                 Accountability

 

Racial Equity Impact

Goodrich Golf Course serves residents throughout the county. Parks & Recreation staff have been working to expand off-season usage of the facility most recently including opportunities for residents to snowshoe on the course.

 

The county board authorized a Golf System Capital Investment project which is currently in the planning phase for Goodrich Golf Course. Work will include redevelopment of sand traps, cart path extensions, and an updated irrigation system to make a more playable course appealing to a wider variety of golfers and creating a more welcoming course to new golfers to continue to grow the game of golf.

 

Community Participation Level and Impact

Community participation did not take place during the development of this agreement.

  Inform              Consult                                 Involve                      Collaborate        Empower                     

 

Fiscal Impact

Contract is for 10 years with an additional option of five-year renewal. The revenue shares are outlined in the background and rationale section listed above. The estimated annual gross revenue is anticipated to be $850,000. This revenue is planned in the 2024 / 2025 operating budget. Fees are expected to increase in future years as to keep pace with inflation and industry trends.  The revenue generated by golf contributes to the overall operating budget of Parks & Recreation as it works to build an inclusive and equitable 21st Century parks system.

 

 

Last Previous Action

On December 17, 2019, the Ramsey County Board approved the selection of and Single Source Agreement with Bradley R. Behnke Golf Management LLC for Golf Professional Services at Goodrich Golf Course for the period of December 18, 2019, through December 31, 2023, in an amount not to exceed $700,000 (Resolution B2019-312).

 

Attachments

1. Professional Services Agreement