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1997-06-11 Sketch Plan . . ~ ~ tJot& rt~, ?ItJt /~!1QI DONALD JENSEN Director /PILOT / LAND DEVELOPMENT COMPANY KENT ROESSLER Office: 757-9816 Mobile: 799-2551 Fax: 757-4094 13736 NE Johnson St. · Ham Lake, MN 55304 757-9816 13736 NE Johnson St. · Ham Lake, MN 55304 Hollis Cavner Tournament Director PLMG cb= Burnet Senior Classic 8990 Springbrook Drive #120 P.O. Box 48440 Coon Rapids, MN 55448 612- 783-8232 . 612-783-8248 Fax 612-751-5964 Mobile Hollis Cal'ller Presidclll & Erccuri\'c Dircuor PRO LINKS J,lANAGELHENT GROUP PO. Box 33./35, Minneupolis. lV/tv 55./33.1!./35 (612) 767../1!26 . Fax 1M2) 767.9738 (6/2! 75/.596./ ;Hohil" Veudofted g'~,' Pilot Lad V eo, . , '. . C!"l,h"..s{' ---<....' "'~,gs:.-~.""-'"' . - ) (( \ \ ~(t\ \\ ! ',\\\1 " ..I~~~J..: '-.....' :+~. r.,~\.-..~~'. \. : .t~ .iC:~L2:) !;r' \ ,,~.. cP 0 ", [I! '( </ c,__,_. 0 -', ". 'j 1[; r;.:~'../ .! >>'_ /'<\" .r._'T~ I ~"""'"".~." .... .... -' "'j J, -I- :, ""~~~,_"," ":-:-''-C_~~:'*~::"~~'~~~~::,+ \,.-,' !If,\' SlnJ;le f~mily :l: 11: \\. \ Ilml!llnR :,1., /-=') j I', : , "'0-1e D~ i,1 \,"~~I il \ J[ ! ilL Ii ,/ Ii I , I' I .__~~I ,,~ I' l (,~,,_..__J I , . ., '.L""'i/,{)~,L.".tr'c' .... i :ii 1J[l~hn~ l\o;>lb",1 tlf ;I PRELIMINARY . card 0' the course . 1/..1" Hue I'.n whill' red '" , 14n 135 ., 31.; '" , 270 l.t~ ,OS . H; 155 , Hi H' , _HfI lUll '55 , 14'; "' '" , 12; '" , :llll '''O! 2,]O=- " :U2; li,)(1 " 510 , H'O 460 " '" , :)15 '" 12 lH , '" US " 17' , IS' '" " '" . ". ,.. " '" . ,lOa 150 IS ,OS , m 415 17 '" , 115 e; " 110 " 110 no },O'I:; }(i 2(/15 1,;1; 5,-1(10 (",\ 5,(1-10 tli.; CONCEPT DEVELOPMENT PLAN lJ7.1(' J"hn',,'II Str.....' N[ r;OfI ('O('RSE .1RCflfrEC1 iiiiiI ,us<<"".~"ri @ Rhl'f" F.''''' ", wn M......: 71!t..l.t.~.J511 8.:: Associales. Inc. F..........n~, 71~"'!.'.1..! Norlh Jtlne 2, 1997 PILOT LAND DEVELOPMENT COMPANY lIi\M tAKE, 1\IINNtS01J\ ~5J!'" SCALE Cedar Creek Golf Course ~ II !,~ 41)0 ROO LAND DEVELOPMENT COMPANY June 11, 1997 Planning Commission, City Council members, and City Consultants c/o Mr. Gary Hale, City Administrator 5975 Main Avenue NE. Albertville, MN 55301 RE: Sketch plan approval and Rezoninl! of Center Oaks parcel and Cedar Creek Golf Course area from R-IA to PUD Dear Mr. Hale: This letter serves to confirm our conversations regarding the goals for the submissions of the preliminary plans for the golf course and housing project. Since initial plans were submitted in 1995, concepts have evolved. Denials in 1996 were largely due to unknown annexation issues and a sentiment that the golf course was not "real" or feasible, and a request for a $3,00,000 letter of credit. Since that time, plans evolved to demonstrate the commitment to the project, and proposals to provide assurance that a course will get built have been solidified. Specific actions which have taken place include the following: 1. Retain Williams Gill Golf Course Architects for further routing design; 2. Secure more options and purchase agreements on surrounding land parcels to create the best routing alternatives possible; 3. Retain Continental Golf (Izatys, Wedgewood) for a lender ready market and feasibility analysis for a 9 hole concept and an 18 hole concept; 4. Retain Rick Harrison consulting planners for master plan assistance and creative neighborhood design; 5. Listen to concern of Council members regarding multiple family attached housing within the golf course pockets, and maintain a maximum of SF dwellings fronting the project, with no lots having less than 80' width @ setback; 6. Assist NAC in their efforts to map balance of land, delineate all wetlands in Albertville west of Highway 19 on our sites; 7. Locate expert management for a golf course facility, preliminary discussions with Hollis Cavner's group PLMG. (Hollis is the tournament Director for the Burnett Senior Classic @ Bunker Hills and our partner on a new Blaine golf project); 13736 Johnson Street NE . Ham Lake, MN 55304 . 757-9816 . Fax: 757-4094 - .. The submitted project clearly meets everyone the 8 criteria (a-h) stated in the PurpOse section of the pun ordinance. This plan will provide an excellent golfing experience, a vastly improved subdivision living experience, and an opportunity to provide additional life cycle housing. Without a golf course, Albertville has zero reason to attract any move up buyers. The value of paying $50,000 per lot to live on Mud Lake, in the Elk River school district is dubious. The approval of the Meadows for Lyman proves that a larger lot subdivision can be designed without an improvement in livability or desirability. The desirability to live in Albertville is be to be close to your school. By approving the golf course and density transfers as proposed, the amenity to attract a reasonable share of move up oriented home buyers along the golf course is achieved. Permits in the Parkside Third development shows that buyers are willing to spend $115,00 to $170,000 within a typical R-1 subdivision bounded by wetlands to the north and B-3 zoning to the east. It is important to remember that the building permit value and marketing prices of builders is not the value of the subdivision 5 years from now. Very few buyers ever buy the price leader, and most have the basement, third or fourth level, decks and landscaping to complete at a future date. Even the least expensive house will be able to add $15,000. Proiected benefits of the golf housing blend are: · Adding of new business, managed by successful entrepreneurs, to create a for profit facility which only enhances the tax base and surrounding land values. The golf clubhouse would have the ability to be a full service restaurantlbar and catering facility to encourage tournaments, weddings, corporate outings and other promotional events. This will require a liquor license. · Restore and improve water quality holding capacities at 1/2 the predeveloped rate (if required interim measure is adopted). It is expected that up to 2 additional acres of wetland mitigation will be able to be created after your approval of the concept. This acreage would be found during the final design phase of the golf course. The Center Oaks plat as proposed created one acre of mitigation credit. The Cedar Creek North Plat as proposed created one acre of mitigation credit. · Greater diversity of age and buyer demographics and housing products, creating a spreading of demand for school and other governmental functions. An entire expansion of R-IA lots, regardless of absorption speed, will tend to create solely homes for families of similar age brackets, with a likely boom bust cycle for schools and associated services; When your families in Albertville age, where will they move to? St. Michael? 2 '~:Z~:;:,:,'::-;.~:,:,~~l~S~,;~_,:",,.;.,~~~,-";"=-.",~-.,"-,, ".= -.-".-""", . . .'-""-'= _....".......-~--'.""'-_......"'''''""''...~_..,'~ ....- ."-~ '~_~__'~","~""",,,f-'-'_'''-''_''"''''''_'''''''''''_ .., ""'" - ,..--.....,<-' - '- .'-"'""~.,...''''. '" ."'"'"-~-~,_.="-"-,~~,~~~...."".""""""""'.,=...-.;,"' ---_.~ ......_ ,.....,.._ _-,0.,..,. "'" _-~ ~,.......~- "",--:.",,-;.," '-"'.. '_"""",1'-''''"''-..." * . . . . Vacate Kadler with St. Michael. Approve long cuI de sac to build "exclusivity to peninsula area" surrounded by golf. If access mandated to Hwy. 118, agreement by Albertville to plow road to Hwy. 118 regardless of political boundary. . Approve a blend of lot sizes to SF neighborhoods starting no less than R-l size and allowing some 80 foot lot widths at setback with 10' side yard setbacks and 30' minimum front yard setbacks. The Cove concept creates many greater setbacks than 30' in order to enhance the street appeal. Approve the coving concept for subdivision use under the PUD approval process. Refer to Planning Commission conditions of approval for lot size mix. Amend trunk sewer area charges for all land within the master plan to be apportioned per developable acre. Order plans and specs for the Lift station referenced in the area charges ordinance of $500 per acre to determine exactly the cost. Amend ordinance or this project to pay as we go to final plat for the lift station fees. No lots, no demand. To date, Kenco, Pilot, Feneis, Little Mountain, and others have furnished 100 acres of fees for lift station escrow at $500 per acre or $50,000, more than enough to finish drawings and create a bid for 1998 work. Hold any residual park dedication fees level regardless of time of final plat in exchange for Pilot building the golf course as an open space amenity, land dedication in excess of 5% and potential construction of trails along Collector streets at the time of road construction, final lift. Hold code and ordinance criteria for the project current with 1997 requirements. Approve Phase One of the Center Oaks proposal for 1997 grading and road construction. Without approval by late August, work is not likely to yield paved streets, meaning no more lots until July of next year. . . . . . We are projecting the following schedule: June 18 - Submit entire package for consideration by PC in July & early August July 5, 19 - Planning Commission review of package for Concept approval, re- approval of Center Oaks Phase One August 4, 18 - City Council meetings to discuss and approve concept and phasing plans and enter into PUD I Development agreement negotiations. Approve grading permit for center Oaks Golf Course working drawings begin... September 5 - Pipe work for Karsten and Kalenda starts. 4 . . Sept. 15,29 - Approve PUD Agreement, Grading start and ground breaking for Golf course driving range clubhouse area. If the golf course project is rejected this time, Pilot will move to implement the Concepts C and D in your packets. The chance to create something exciting does not always occur nor repeat itself. Please work with us to mutually benefit from the plans of an excellant team. Please contact us with any questions you may have at any time. Thank you in advance for your comments and consideration. Sincerely, Donald Jensen Land Development Director & Consultant to Center Oaks Attachments: Golf Course Support Data; Master Plan prior concepts; Covenants; Spring Preview Townhome examples cc: Meyer-Rohlin; Hollis Cavner -PLMG; Garrett Gill - WGA; Rick Harrison; 5 r- z III :!!: Co 9 w ::- w c ~ Z ::J C l.l.l ;;:: Z ~ 0.. ~I >-='0 tn .o<<lwc: ~1:1~'6 1;;5i::lz .2. c (ll 1lI o.QlIl.c liiNtlJ'fQ co:::E'-C .. C. w III ~ c,c.C 1:1 <tI o.!!1 [ij (l) Q.~ a;t:mlll 5 ii~ >tic" .0 ill (J) 'tl .~ - ". (l) e fii e ;;; 0.. E 8: OJ III P. l\I .oc.E<!l tj '- g!:E ::l "0 m . E ~ 1:1 .9- Cl :::J Gl .l:; ;:)o-5~ 0...S;; 0 >; ~~-6 cwalltl ,2 C. '0 Q. fje!a := 0.:0 ::l &lIl(\)E 1ll-5.co 1;;- - III <l: 0 ltl III ~I~~~~ ~c:.sm ooc:c; ~ "0 .~ - ~ '" ~ ,- . qlllE.!!!= -.coCll co= :J .t: c _~CI)~O rn en "0 c III '" e CQ l ~ QJ E 0.. o Iii ::- ()) o '2; .., ;;:l 'e " m 1I1 'g E 2 III Vl 0::. -g.:1 ~, III c c; .!! 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C ' . ~:gr', ... ~ "'~ 3"Ci--c?r.5.'(.~~Ji~'II'/->>~=I;;;';'~\~I\/ \ y\\yq,..,',,~",. \'-~,.IJ\, <V,':)", .."/'. l, g A~A~e:'---r~, \' \'{','1" , L,/ .J ""',.,,.,1 )/, -Xf>~~I;~~c===::O~I~[~-~..1 'i ~'1,< ,,}~: ~-=t.--=:=J!~~~~~ / ,. 7" \_. . v,...~ ~"~i.1' ,0" " . . ':,~~~~ ~ I) "~-\ 1 ,.,_~_~,~.-;.5!."......-:-;'.__,.____"__"~.~_~_.!..s;;,J,Q~_~==::<:".....~,=-~-~",-""~-~~.~-~'~...,,:.3Q~"y..~.tff't~..~'~' . . /' '~---~---" " _/" .._'~'--'_'_ _,r--~---"'- \ 'j ,i 1/'- "1~.;.. ;' ~\ 1 ~-;-,:) r'- C.1\ t~ C C '. ::; Ci u') ~ ,< (l...: L.l ~ S I , ,I (-:; ,._----~ .1-.... / "", \ "- ---, ._'__, _" r ..-----' "-~~ c "<~,,<, ?t-"n .,-~ ....~._.__.\ ~~.~) \~ .........._..)~(- '-~j ._ _ _ .. _ ____I I I' / .'.. "7 -__..J~_ _ , .,' . (r;::. ("\,J-', /'. '" . ,',; ....-.,-.---}) C: .-) :;_<.! \,.J i ,'-' , v~ " ,'''', , I \ ,," ',\'" \ ',-/,\ I" C I~._\ 1)>> , r -:--:::-~~~i/'-:)/' /A/~0 -. / / / / ...... ~r,-",,-,--,--'---'-1 7i---t;1 \~- . .....--.' / i // '~"")l ~./ !~~~~/ . I ~-~.. !!. = . " \ _.... ----1----::-::. -- ..,..... .+ ..- _"(-:::....t---. / - --......__..: :.., -- -./,. I ~ I / .. L " ~@(:-~1:_--? ~/ ! \,. ..;' "1 -S\ I ~<I) ::) -+- ~ d.) I ~ \J\ 'll',~$ :. ~ n ~~~::::. ~1 ~';.s=' 'U: :f]! V' <t ~ ~ +. ~~~ ~q) s: ~ ~N~~_~ ~ ~n! is ~ :p-'--~ \'l .s ~ ~~ ~ ~ ~ -l) ~i~ ==~ ~~~ "J t'4te.'V\~" ~ N ~ .. ~ . .. . .:, I' \ \ \, , '. . .'~ . ---- '0 o Q) .' .__3=~.'::~.._-:---_ __..;~.,_._ // " .' ... 11 ~V\ ~~ ~~ ~ ~-h ~~- \/).s ~ q) i<( ~~. ~ 1~~ ~:i<i . .. ,I ~k.SOJ.:;.&~~__..~._,,". , . _ _ -"';-=:':':-:",,",~~~'-'" ." <:",s;;z.-1:o..!.~~~-~la-~::3no.J:,,-~~t:"<-T-'~__'''''1'''~'-~~- . . PARKS IDE 1ST ADDITION DECLARATION OF PROTECTIVE COVENANTS THIS DECLARATION is made this day of 1997, by the undersigned fee owner of the following described land (hereinafter referred to as "Declaran t"): All golf lots. WHEREAS, Declarant hereby imposes upon and subjects said Lots, for the benefit of said Lots only and the present and future owners thereof, to the following conditions, restrictions, reservations and covenants which shall operate as restrictions passing with the conveyance of every Lot and shall apply to and bind every successor in interest. 1. DEFINITIONS. The following words or terms used in this Declaration shall have the meanings herein ascribed to them. a. "Developer" means Pilot Land Development Company, a Minnesota corporation, its successors and assigns. b. "Lot" means any Lot included within the scope of this Declaration and as shown upon the recorded subdivision plat of Cedar Creek North, Cedar Creek South, and Center Oaks in Wright County Minnesota. c. "Lot Owner" means the record owner, whether one or more persons or entities, of title to any Lot subject to these covenants, including vendees of a contract for deed. d. "Plot" means an area of land consisting of any Lot and part of another Lot, or a part of any Lot, or parts of two or more Lots. 2. TYPE OF STRUCTURE PERMITTED. No Lot or Plat shall be used except for residential purposes. No structure shall be erected, altered, placed or permitted to remain on any Lot or Plot other than one (1) detached single family dwelling not to exceed two (2) stories in height, and a private garage for not less than two (2) automobiles. Garages shall be directly attached to the dwelling. Outside storage buildings may be erected provided they have prior approval of the Architectural Control Committee and provided that the exterior of the storage building be of the same color and material as the exterior of the residential structure. Structures erected or placed on any Lot or Plot must be in harmony with the residence in respect to workmanship, materials and external design. Exteriors must be stucco, brick, stone or wood. Maintenance-free siding or hardboard will be allowed on the front of residential structures in combination with stucco, brick, stone or wood and on the sides and rear of residential structures with Architectural Control Committee approval. At its sole discretion, Declarant may waive this requirement due to the architectural theme or style of the house. The type, manufacturer and specification of the proposed maintenance- page # 1 a:\#_\DECLARE.DOC . . free siding must be approved in advance by the Developer. The roof line for all residential structures must have a minimum 6/12 pitch or be approved by the Architectural Control Committee. Construction of model homes is expressly permitted as long as they conform to the restrictions hereby created. 3. PLACEMENT OF STRUCTURES. No structure shall be located on any Lot nearer to a front lot line, a rear lot line, and interior lot line or nearer to a side street right of way line, if any, than the applicable City of Albertville ordinance as related to this subject plat shall allow. For purposes of the covenants and restrictions set forth in this paragraph 3, eaves, steps, fireplaces, and open porches shall not be considered as part of a building, provided, however, that this shall not be construed to permit any eave, step, fireplace, or open porch on a Lot to encroach further into a setback area than the applicable City of Albertville ordinance, as it relates to this plat, allows. 4. BUILDING AREA. The size of any building or structure, exclusive of one-story open porches, basements, and garages, shall be: a) In the case of a single floor structure, not less than 1260 square feet of finished living space on the main level. b) In the case of a split-entry structure, not less than 1210 square feet of finished living space on the upper level. c) In the case of a one and one-half story structure, not less than a combined total of 1800 square feet of finished living space for both floors. d) In the case of a two-story structure, not less than a combined total of finished living space for both the ground and second floors of 1800 square feet. 5. STRUCTURES AND BOULEVARD NOT TO BE USED FOR RESIDENTIAL PURPOSES. Not trailer, basement, tent, shack, garage, barn, or outbuilding erected on the premises shall at any time be used as a residence temporarily or permanently, nor shall any structure of a temporary character be erected, used or occupied for residence thereof; nor shall any building not completely finished on the exterior be occupied as a residence. 6. SITE SEEDING AND/OR SODDING. The front and side yards of each lot shall be sodded within two (2) months of occupancy, or by June 15 if occupancy occurs during a winter month. The Lot Owner shall accept responsibility for site maintenance and for controlling storm water runoff. The Lot Owner shall correct all site maintenance or drainage problems within fifteen (15) days of receiving written notice from the City of Albertville or the Developer. After said l5-day notice period, the Developer and/or the City of Albertville shall have the right to page #2 a:\#_ \DECLARE. DOC . . enter the property, correct the site problem and bill the Lot Owner for the work done. 7. ARCHITECTURAL CONTROL COMMITTEE. There is hereby created an Architectural Control Committee ("Committee") which shall initially be composed of the partners of Pilot Land Development Company, 13736 Johnson Street NE, Ham Lake, MN 55304. A majority of the Committee may designate a representative to act for it. In the event of a death or resignation of any member of the Committee, the remaining members shall have full authority to designate a successor. Neither the members of the Committee, nor its designated representative, shall be entitled to any compensation for services performed pursuant to this covenant. At any time after 100% of the Lots affected by this Declaration have been sold by Declarant, or its successors and assigns, to owners who reside in dwelling constructed on said Lots, the said owners of the majority of the Lots affected by this Declaration shall have the power through a duly recorded written instrument to change the membership of the Committee or to modify, expand or restrict its powers and duties. 8. ARCHITECTURAL CONTROL. No structure shall be erected, placed, or altered on any Lot or Plot until the construction plans and specifications and a plan prepared by a registered surveyor showing the location of the structure have been approved by the Architectural Control Committee as to quality of workmanship and materials, harmony of external design with existing structures, and location with respect to topography and finished grade elevations. The Committee's approval or disapproval as required by these covenants shall be in writing. In the event the Committee, or its designated representative, fails to approve or disapprove within thirty (30) days after plans and specifications have been submitted to it, the applicant must notify the Committee via registered mail requesting approval or disapproval. If within ten (10) days after receiving said notice the Committee or its designated representative fails to approve or disapprove the plans, or, in the event, if no suit to enjoin the construction has been commenced prior to the completion thereof, approval shall not be required and the related covenants shall be deemed to have been fully complied with. If at any time the Committee has ceased to exist as such, and has failed to designate a representative to act for it, the need for committee approval shall be dispensed with. 9. LOT USE. No obnoxious or offensive activity shall be carried on upon any Lot or Plot, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood. page #3 a:\#_\DECLARE.DOC """""'F,,,,",'.h~."'~O,;'~,""""',,,,,,_^,,,,,,,,,,,,,,,,,~,,'~."""",,__'" .. ",",-~.~.,,,,,, "__ ."'..,.....,.,,_.__ ___.=." ---,"~'"..,"...=...~...._...,,""'".;...."""... ,....,-.."'.......,.' --..,. ....... -.. ""'ON""'- -.. . -'''''''''''_.:' .........,~_...,~_..__.. ;...'<.~_.:+."'., ..- "-..''':'''''- """" --.' _. - """'~"_. .. ""'......-.,'.--..""""-.. .. .,. - - .._n_ _ ,,_.........._ ,,'-.,-- . . 10. SIGNS. No sign of any kind shall be displayed to the public view on any Lot except one sign of not more than six square feet advertising property for sale or rent. 11. FENCES. No fence or wall shall be erected or placed on any Lot without the approval of the Architectural Control Committee, nor shall any fence or wall be erected nearer to any side yard than the minimum setback allowed under the Albertville fence ordinance, if any. In no case shall fences be constructed nearer to the street than the principal structure. 12. KEEPING OF ANIMALS. No animals of any kind shall be raised bred or kept on any Lot or Plot, except that dogs, cats, or other household pets may be kept, provided that they are not kept for any commercial purpose and are housed in the main dwelling or garage. 13. OUTSIDE GARBAGE RECEPTACLES. No outside incinerators, trash burners or garbage receptacles shall be installed or erected on any Lot or Plot. This covenant shall not be construed to prohibit the use of outdoor barbecues or fireplaces. 14. RECREATIONAL EQUIPMENT. Recreational equipment is defined for the purposes of this Declaration as travel trailers, pickup campers or coaches, motorized dwellings, trailers, snowmobiles, fish houses, A TV's, boats and trailers. No recreational equipment shall be used on a lot for living, sleeping or housekeeping purposes. No recreational equipment shall be parked on any Lot, Plot, or appurtenant street for a period longer than twenty-four (24) consecutive hours in any week. In addition, no abandoned vehicle shall be parked on any Lot, Plot, or appurtenant street for a period longer than three (3) consecutive days. For purposes of these covenants, any automobile, van, motorcycle, or other motorized vehicle which is parked in the same location without use for more than seventy-two (72) consecutive hours because of vehicle failure, or because of substantial deterioration causing the vehicle to lose all or virtually all economic value except scrap value, shall be presumed to be an abandoned vehicle. 15. RADIO, SATELLITE AND TELEVISION ANTENNA, ETC. No radio or television broadcasting or receiving antenna or other similar apparatus shall extend above the roof of the dwelling. Conventional TV antennas should be mounted within the attic of the structure. Any receiving or broadcasting equipment to be located outside the structure shall be screened from view from streets and adjacent lots. No such equipment shall be erected without prior review and approval of the Architectural Control Committee. page #4 a:\#_ \DECLARE. DOC . . 16. EASEMENTS. Easements for installation and maintenance of utilities and drainage facilities are reserved as shown on the recorded plat and over the rear five feet of each Lot. Within these easements, no fence, structure, planting or other material shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of utilities, or which may change the direction or flow of water through drainage channels in the easements. The easement area of each Lot and all improvements in it shall be maintained continuously by the owner of the Lot, except for those improvements for which a public authority or utility company is responsible. 17. AMENDMENT. The provisions of this Declaration may be revised, amended, rescinded, or restated as may be required or deemed necessary at any time by the Lot Owners. Any such change shall be in writing by owners of 75% of the Lots, based upon one vote for each Lot owned. When more than one person or entity holds an interest in a Lot, the assent for any change of these covenants shall be exercised as they between or among themselves shall determine, but in no event shall more than one vote inure to any Lot. No such change shall be effective except upon recordation with the County Recorder of Wright County, Minnesota, of the amendatory instrument. 18. FRONT YARD BOULEVARD TREES. The initial Lot purchaser shall be responsible for the planting of any mandatory front yard or front boulevard trees as required by the City of Albertville. Planting shall occur not later than the schedule for sodding set forth in Paragraph 6 hereof. 19. ENFORCEMENT OF COVENANTS. Enforcement of these covenants shall be by proceedings at law or in equity to restrain violations or to recover damages against any person or persons violating or attempting to violate any covenants. Any action brought to enforce these covenants must be brought within six (6) months after the violation of covenants first occurred. 20. INVALIDITY OF COVENANTS. The invalidation of any of these covenants by judgment or court order shall in no way affect any of the other provisions, which shall remain in full force and effect. 21. DURA TION OF COVENANTS. These covenants shall run with the land and shall be binding on all parties and all persons claiming under them for a period of thirty years from the date these covenants, restrictions and conditions are recorded, after which time the same shall be automatically extended for successive periods of 10 years unless an instrument signed by a majority of the then owners of the Lots has been recorded, agreeing to change the same in whole or in part. page #5 a:\# _ \DECLARE.DOC a:\#_ \DECLARE. DOC . --'- ---x (J-\ u \ 8 \ " \) I \ ) { \ H <>- q ~ ~ ~ . . Cedar Creek Golf Course E.-ucutive Summary Concept Development Plan - June 2,1997 Site Development Pilot Land Development Company has employed Williams, Gill & Associates, Inc. to provide golf course concept development planning. Williams, Gill is a nationally recognized golf course architecture firm. Representative local golf courses that Williams, Gill have designed include: Inver Wood in Inver Grove Heights, Willingers, in Northfield, Crystal Lake Golf Course in Lakeville and The Bridges Golf and Practice Center in Moundsview I Blaine. Pilot Land Development Company has directed Williams, Gill to create a high quality golf course facility that will appeal to all levels of golfers. The golf course design focus was to establish a golf course that would offer all variations of golf holes from the short more guarded holes to the longer more forgiving holes. A comfortable mix of housing and golf have been established. Water features and wetland mitigation areas are used for the threefold purpose of meeting stormwater requirements, providing golf course hazards and serving as a buffer feature that esthetically merges the residential and golf course areas together. Golf Course Layout Cedar Creek Golf Course will be an 18 hole golf course. The golf course will consist of an executive length (2,300 to 2,500 yards in length) 9 hole, par 33 front nine and a regulation length (3,100 to 3,250 yards) 9 hole, par 36 back nine. The 18 hole golf course will be a par 69 at 5,500 to 5,750 yards. The golf course will include a full length practice range with 20 - 25 tee stations and a large practice putting green. The golf course has been designed to include wetlands areas, ponds, sand bunkers and mounding that will provide scenic, challenging and memorable golf holes. Multiple tees, large irrigated tees, greens and fairways will insure a playable golf course that appeals to all levels of golfers. The golf course will feature golf holes that have variety in length and challenge. It is anticipated that because of its close proximity to the high school (1.5 miles) an improved golf program at the high school would be possible. The clubhouse and parking lot will be centrally located on the golf course with access off of County Road 118. The first and tenth tees, ninth and eighteenth greens and the practice tee and practice green will all be in close proximity to the clubhouse I parking lot. A portion of the development will be in St. Michael. WGA has completed previous projects that have successfully bridged multiple juristictions. Prepared b1': H'illiams. Gill & A.ssociates. file. June -t. 1997 It . 22. DECLARA TION OF WETLANDS RESTRICTIVE COVENANTS. Declarant does hereby declare and impose Wetland Restrictive Covenants over and across portions of the following Lots in Cedar Creek Addition: Said wetlands are designated as easements on the recorded plats of Cedar Creek North, Cedar Creek South, and Center Oaks. The owners or occupants of the above-described Lots shall not do any affirmative act to reduce or restrict the natural flow of water into or out of the designated wetland area; berm, fill or drain the wetland area; mow, trim or remove any vegetation, grass or trees; add or plant any vegetation, grass or trees; construct any fences or structures within the wetland area; or do anything that would directly or indirectly diminish, damage or destroy the wetland area or change or alter the wetland character/area. The owners or occupants of the above described Lots, or their agents, shall have the right to remove diseased or dead trees, or noxious weeds or growth from the designated wetland area, provided prior written approval is first obtained from the Albertville Director of Community Development. These restrictions and covenants are to run with the land, and shall be binding upon all parties and all persons claiming under them, and their heirs, successors and assigns. If there shall be a violation or an attempt to violate any of these Wetland Restrictive Covenants, any person or persons owning any real estate situated in this subdivision, or the City of Albertville, shall be authorized to commence and pursue proceedings at law or in equity against the person or persons violating or attempting to violate these restrictive covenants, to prevent him/her or them from so doing, and/or to recover damages for such violation, which may include restoration of the wetland to its original condition. page #6 a:\#_\DECLARE.DOC a:\# \!J!-\{A I-{ I-< II II . .. .... '. . . IN WITNESS WHEREOF, the Declarant has caused these presents to be executed this day of , 1997. Pilot Land Development Company By Its President STATE OF MINNESOTA) SS. COUNTY OF ANOKA) The foregoing was acknowledged before me this day of , 1997, by Kent Roessler, the President of Pilot Land Development Company, a Minnesota corporation, on behalf of the corporation. Notary Public page #7 a:\#_\DECLARE.DOC Volume 5 . /I A Printing Publication For Todayls Professionalsll BROMLEY PRINTING, INC. · 612.755.0566 Numberl They All Laughed at Edison and Gillette, Too Innovative Thinking Is Still the Critical Key to Business Success When Thomas Edison invented the light bulb, people balked. When Warren Avis thought of starting an airport car rental service, he was told ir was impractical. And when King Gillette consulted experts about putting an edge on steel for shaving, they told him to forget it. The moral of these scories: cre- ative thinkers may be laughe~, but wliere would business be with- out them? Innovation, the very concept that formed many rop cor- porations, eventually, becomes dis- couraged at many of those same companies. That's because consid- ering innovative ideas involves tak- ing risks, and when quarterly prof- its and botcom lines top the agen- das at corporate board meetings, risk-taking usually ends up much farther down the page. But com,- panies that aren't open to change are the ones most vulnerable t7: losing their lead to more vigorous ~ana innovative competirors. A few years ago, Sears lost its position as top retailer co Wal-Mart, because Sam Walron wasn't afraid to take risks. Microsoft, Federal Express and many of today's other top companies got there by taking risks and revolutionizing' the business world. In business, change is vital. What is popular or successful coday may not be successful or popular tomorrow. For most com- panies, innovation is risky, but it may be even more risky not to innovate. Think about it. At the begin- ning of this century, railroads were king. Since that time, airlines and auromobiles have replaced trains as the most popular travel methods. As little as a decade ago, typewrit- idea is a good one. A venture may fail because it's ahead of it's time, too costly or roo limited in appeal. Bur coo often, ideas are dismissed using arguments that have little or nothing to do with their merits. Attitudes such as "it wouldn't work here," "someone tried it once and It didn't work," "you're only asking tor trouble," "it's not our Job' and "we don't have the time forces set up to address specific problems and through team com- petition within the company. In all of these cases, failure is accepted and forgiven. Employees are encouraged to keep trying and to not give up on their ideas~ Andrew Carnegie was famous for saying, "Pioneers don't pay.". . But Carnegie himself was one of the most successful pioneers in the U.S. steel industry. Innovarors like Carnegie don't always play by the "rules"; they're the peoplewho bring life and excitement ro busi- ness and help change the rules. So next time you chuckle at" someone at your company who proposes a new idea, hold your laughter. It could be the very thing that lets forrune smile upon you. ers could be found in virtually every office. Now, personal com- puters rule the market. So why aren't we flying Union Pacific or B&O Airlines and using Smith Corona PC's? Someone else took the risk and earned the reward. That is not to say that every new ~'e" ;;'ntlng, Inc~ 514 Northdale Boulevard' Minneapolis, MN 55448 Phone 612.755.0566' Fax 612.755.7916' E-mail-bromleymn@aol.com and money to try this" have killed too many ?;ood ideas and led ro ill OVer acceptance of the status quo. No matter how large or small a company is, it should encourage ideas and entrepreneurial attitudes in its employees. Many businesses do so through independent task r:1aa&"tp . $t/zti/tR' . . [!}JeFdO/ta/ ~FOtCe Instant Printing · Commercial Printing Graphic Design ~ Color Copies I VISA I" Now accepted at BromleyPrinting, Inc. '~."";;;'"'';.h''' . . Feasibility Study For Eighteen Hole Golf Course Albertville, Minnesota IE~IECC1UTIIV1E ~1JJMMAIR1l Prepared: April 21, 1997 Continental Golf Corporation 3400 West 66th Street Suite 150 Edina, Minnesota 55435 (612) 929-3255 Fax: (612) 929-4748 ,,_,_..3>'.,..-..."'-'......' -.. ---~ .. .. " ..~ .....--..- .~:_".,- . - PROJECT DESCRIPTION Based on the overall analysis of both demand and supply, there is an opportunity in the market for a quality public eighteen hole golf course experience. The golf course would need to be of tournament quality in factors such as length, challenge, conditioning, aesthetics, and overall playability. The facility would need to create an immediate value perception within the marketplace through quality customer service features, superior course conditions, a customer friendly reservation system, and professional services and programs. The project will need to be a mid to high market daily fee 18 hole championship golf course with all related ancillary services. The course will need to play in the range of 5000 yards from the front tees and up to 7000 yards from the back tees, thus offering lengths for all levels of player. Artificial features will be a necessity due to the general land fonn. Where artificial features are necessary, cost should not be compromised. Features must provide variety and visual interest. To accomplish this, features must be large enough and blend to existing contours. Permanent ground features should dictate route and design as much as possible. Mounds and other topographic features should be natural in appearance with undulating horizons and fonns that constantly change. Unpredictability is crucial in order to avoid any mechanical or man-made appearance. Artificial features must always imitate nature. The front side and back side should be balanced in tenns of yardage, hole types, and aesthetics. The women's yardage should be 5,000 yards or more, the men's yardage around 6,400 yards, and championship yardage should equal 6,800 yards or more. The route will need to provide for good traffic flow and must be walkable, providing easy getaway holes. The proper design of irrigation, drainage, and retention systems should provide for the efficient long term use of water and protection of water quality. The irrigation system is the heart of any golf course. An adequate investment must be made to provide for proper water source and the ability to distribute it in a manner that provides for optimum turf condition. In addition, drainage is crucial. Both surface and subsurface systems must be designed to maintain proper playing conditions at all times. Important clubhouse site factors must include available utilities, access from roads, and scenic views and vistas. The clubhouse should be an attractively designed building between 4,000 and 4,500 square feet in size. The golf shop should be a minimum of 1,000 square feet in order to provide adequate merchandising space. Since exterior functions comprise a good percentage of human usage in a golf clubhouse environment, all exterior components must be included in the design process. The proposed facility will require a golf shop with a professional merchandise program, instruction and c1ubfitting programs, and tournament services. The driving range facility will need to appeal to both avid players and beginning players alike by offering top quality range balls, well maintained turf, and target features that resemble on-course shot challenges. Quality food and beverage service will need to be accomplished both at a clubhouse location and on-course via a beverage cart. The site for the maintenance facility should be located as close to the center of the golf course property as is feasible. The selected site should be as flat as possible and should be well drained and free from the potential of flooding. The facility must be accessible from a main road in order to provide delivery access. The site also must have convenient access to utilities such as electricity, gas, water, and sewer. 4 :l '~__~,""'._"'""_.".,___.'.,,..,,":'''''''''_''._.'X!i_"_'''' '.~',.,",,'-,-..;..-,,-,...... --", ".. -,..--., -... ~ -,. - --- .,..- -~- ,...",-",,,..,.-.,,,-.-,,,,,,,", .. ~,- ...-:......-"'-~--.;,.,....-,..""'- ",,:><_,...-.._-,-,~; ..- --= = ~""'-""'"-'''''''''- ---,_. - - ~'" --_...~_..~ ~----". .._,~-- -. .-.".,,-,,~,,,,,,,,,,,,,,-,,,,,, ""'.... -' _ -,,, ---~. ,-- "',..,...._,"'.."'...._":_.....""',.__~____b';,.."'..,". . ~.- .. ~ ~. . . SUMMARY OF GOLF COURSE DEVELOPMENT The overall mission of any golf course project is to create a golf course that is playable, practical to maintain and manage, and is physically beautiful. Providing enjoyment to the greatest number of players possible regardless of their abilities should be a central goal. Additionally, the project has to be constructed economically in order to survive as a business. First and foremost, it must succeed as a business. Acreage for the golf course will need to be in the range of 140 to 160 acres. Ample acreage must be set aside in order to create holes that are pleasing for the golfer to play. In addition, the golf course route must not impinge of the housing component of the project. Safety and ball flight problems are factors that are not easily cured once the project is completed. A further consideration is the potential annoyance that maintenance routines may have on homeowners in close proximity to the golf holes. The developer must take care in assembling an experienced team in order to insure a quality construction process. Key members of that team will include a golf course architect, construction foreman, and the golf course superintendent. A structured selection process must be followed in order to secure the best individuals for the project. Additional members of the team may include an environmental engineer, hydrogeologist, civil engineer, and wetlands consultant. Typically from planning to completion the development of a golf course is a three year process. A reasonable timeframe for development of an eighteen hole golf course facility is as follows: · 1997 - Organization, Financing, Permitting, Initial Design, Final Design · 1998 - Drawings & Specs, Contractor Bids, Mobilization, Begin Construction · 1999 - Construction, Establishment, Maturation · 2000 - Business Start-up, Open for Play The chart below illustrates the probable costs of developing an eighteen hole golf course that is of suitable profile to a quality housing development. The cost projection does not include the cost of land acquisition or the cost of financing. Summary of Project Cost Permitting 50,000 to 60,000 Organization Costs 40,000 to 50,000 Architect 200,000 to 250,000 Golf Course Construction 2,500,000 to 2,700,000 Maintenance Facility & Equipment 650,000 to 700,000 Clubhouse & Parking Lot 650,000 to 700,000 Start-up Costs 200,000 to 225,000 Development Costs 75,000 to 100,000 Contingency/Bonding 180,000 to 200,000 Total 4,545,000 to 4,985,000 Key development costs can often be overlooked or under estimated in the initial planning stages. Categories often missed include budget for grow-in labor and supplies, golf course fixturing, maintenance building, maintenance equipment, clubhouse fixturing, landscaping, and start-up costs such as pre- opening marketing and inventories. While golf courses can be built for more or less, the above summary represents a reasonable and inclusive cost estimation in order to produce a quality golf experience that will match with the housing development and draw the volume of players necessary for business success. 5 - .. INTRODUCTION In March of 1997, the Pilot Land Development Company commissioned a feasibility study for a nine hole golf course to serve as a recreational amenity for a 200 to 250 unit housing development in Albertville, Minnesota. Upon review of that study, a feasibility look at the potential of an eighteen hole golf facility was indicated. The following is a summary of that eighteen hole golf course study. In the northwestern quadrant of the Minneapolis/St. Paul metropolitan area, the primary market area is defined by the cities of Albertville, St. Michael, Hanover, and Rogers. In addition, a quality eighteen hole golf facility will draw from a larger secondary market area comprised of the city of Monticello to the northwest, Elk River to the northeast, and cities comprising the metropolitan edge to the southwest. Larger secondary market cities in Anoka and Hennepin Counties include Anoka, Brooklyn Park, Coon Rapids, Maple Grove, and Plymouth. The map below illustrates the eighteen hole golf course market area with the primary market circle shaded in gray. / I I SHERBURNE COUNTY t North Monticello ANOKA COUNTY WRIGHT COUNTY I 94 I I 694 HENNEPIN COUNTY ~~~~II~~~~~~~~;~~~;;~~~ ;.:.:.:-:.:.:.;.;.;.:.;.;.;.:. Minnea :;:I:i:::::::II~I~~ :.:.;.:.:.;-:-:.;.z.:.;.;.;. l~~~U~~1~~~~~~~~~~~~~~ .............................. The site will be accessible from Interstate Highway 94 from both the northwest and southeast, and from a variety of county roads from the east and west. Reasonable driving time and access is particularly important in order to draw eighteen hole players from the populated northwestern suburban areas of Hennepin County. The Minneapolis/St. Paul metropolitan area is one of the strongest golf markets in the country. Golf participation in the state of Minnesota is high, ranking first in the U.S. in terms of percentage of population playing golf. As of 1996, Over 22% of Minnesota's population plays golf. Additionally, participation by women golfers is significantly higher than the national trend. Minnesota is also in the top twenty states in rounds played per capita with a range of 3.3 to 3.7 annual rounds played per person. In general terms these facts coupled with expanding population growth in the northwestern quadrant of the Minneapolis/St. Paul metropolitan area are positive factors for eighteen hole golf course development. . 1 ....----,,"'~.._."'""'..""",..-_.........",....._- ~__."-.=",,-' - ,..~ _ ',"_~__.n _""'"',_ _.,,,.>..._~_~......,,"-:""=>_.~. .. ,...,~,....o,....."'-......,.,_.""""',._ ""~~''''''''';_<'''_''''_'.... """".,.....' =""-'~'#'- "': """"::-, --'" ,- -" .' -,- .._~ "..--""'.-"'"'''' d'-_..,..."__""",...:.,..""_-....,.....,,.._.,"'_"'''''....,'''.'''''.',~_.''''''_~..,,_,....."'~. ""'="'"","',.. -"" -.....""'" - "'-- -'",- .."'....:.. - .......'-."'~ . -.. -.~.~.. -- - .. .. ,,,. .. . .... .~- - """"'"....-,....."""'.""""'''--,..._............""...,..,'-~- .""'. -...... ---= . . SUMMARY OF MARKET POTENTIAL Population is being driven in the market area due to several reasons. Growing economic opportunity and good quality of living are key factors. Due to convenient access from Interstate Highway 94, Wright and Sherburne Counties and the towns of Rogers, Hanover, St. Michaels, and Albertville have become bedroom communities to the larger metropolitan Minneapolis area. This trend is forecast to increase as the metropolitan area increases in size, congestion, and other negative urban factors. Population will grow by 9% in Anoka County, 2% in Hennepin County, 16% in Sherburne County, and 10% in Wright County through the turn of the century. The chart below summarizes the population tends of both the primary and secondary market areas through the year 2000. Growth Growth 1990 Rate 1995 Rate 2(0) I-'RIMARY Market Population 5,955 17% 7,146 14% 8,289 SECONDARY Market Population 1,292. 156 5% 1,368,783 3'% 1,417,360 TOTAL Market Population 1,298,111 6% 1,375,929 3% 1,425,649 Source: General Population Characteristics, u.s. Bureau 01 Census 1990 Adequate population is available to provide for three sources of players: the core area player traveling 5 to 20 minutes, the regular/occasional player traveling 20 to 45 minutes, and the experience seeking player traveling up to two hours. The market area, as of the year 2000, will be comprised of over 1,425,000 people. Of these, approximately 8,300 people will live in the core area zone of 5 to 20 minutes of travel time. Another 1,417,000 or more will live within a 20 to 45 minute drive. In addition, the age characteristics of the overall market area are conducive to the long term supply of eighteen hole golfers and rounds played. An appropriate percentage of the population falls in the favorable 25 to 44 age bracket which tends to be characteristically more stable in general life style, earning potential, and spending habits. The 25 to 44 age bracket is the majority age bracket for the four county area. In the additional demographic categories of household income, occupation, and educational attainment, favorable factors also exist to suggest a strong supply of golfers and golf rounds. Annual household incomes in the area are predominantly in the middle income range between $25,000 and $75,000. A good 75% of golf rounds are played by individuals within this income range. Better than 57% of the area's occupations fall in the Professional/Management or the Technical/Sales groups. These two groups lead the way in golf participation both nationally and regionally. Educational attainment in the overall market area is also good. Individuals with higher educational attainment tend to be more likely to participate regularly in the game. In terms of rounds played in the market, the majority of the golf played in Minnesota is on public golf courses. Nationally, 71 % of rounds played are public while 90% of the rounds played in Minnesota are on public golf courses. Minnesotans have a clear preference for playing their golf on public golf courses. In addition, the play preference is strongly slanted to eighteen hole rounds. This suggests an opportunity within the market for the development of a public eighteen hole golf course. From a supply perspective, the Midwest region of the country is particularly strong in golf course supply. Golf facility development in Minnesota has consistently grown on an annual basis over the past decade. A total of 21 golf courses came on line in 1995 and 19 golf courses in 1996 for a two year total of 40 new golf courses. This growth of supply can be largely attributed to a general confidence in the growth of the game as a business. 2 . . The increasing availability of golf courses has tended to produce more golfers and more golf play. On a national basis, the growth of golf course construction during the 1960's and 1970's was followed by a significant growth in players moving from 10 million to 26 million by 1990. Currently, golf course construction is again spurting, although the number of golfers has leveled off at around 25 million with the national participation rate level at 11.6%. In general, the four county market area has an adequate supply of golf courses. Golf Accessibility Rates for the market area range from 34,866 people per public eighteen holes in Hennepin County to 12,272 people per public eighteen holes in Sherburne County. The current national average of population per public eighteen holes is 37,715. The golf courses in both Sherburne and Wright counties are surviving by attracting golfers from the more populated metropolitan area. In order to attract the destination golfer, an eighteen hole product that provides both quality and perceived value in the eyes of the golf consumer is essential. 1995 Population per Public Population 18 Holes Primary Market 7,146 7,146 Anoka County 275,314 23,940 Hennepin County 1,063,404 34,866 Sherburne County 55,226 12,272 Wright County 80,702 16,140 Within the primary market area there is one eighteen hole golf course. Fox Hollow is a medium- priced facility located outside of Rogers, Minnesota. It generated a total of 39,500 rounds in 1996 and is achieving a $25 weekday green fee and a $30 weekend green fee. There is one private golf facility in the market area. Rolling Green Country Club, located in Hamel, is an eighteen hole mid-level private club. Overall, the distribution of facilities is dominated by public eighteen hole golf courses. Eighteen hole courses comprise 73% of the courses in the overall market area. Primarv Secondarv Total 18 Hole Public 1 24 25 9 Hole Public 0 9 9 Total Public Facilities 1 33 34 The northwestern quadrant of the Minneapolis/St. Paul metropolitan area is characterized by very strong public golf course access. Of the 35 courses in this area, 34 are public or 97% of the supply. Statewide in Minnesota, over 87% of all golf courses are open to public play. Additionally, Minnesota ranks tenth in the nation in population per public eighteen holes. Availability of land, government involvement in public course development, and stable economies are all factors that have contributed to an excellent supply of accessible public golf facilities. Strong participation and supply factors have served to increase player's desire for a quality eighteen hole golf course experience. Currently development in Minnesota is focused to capitalize on that trend. Eighteen hole course development is occurring on the edge of the metropolitan area due to land availability and favorable demographic patterns. Development of eighteen hole courses in destination resort areas of the state has also been a trend the past several years. 3 ,.'<''''''"'.,'''''''''''....-. "". ._~....~"'"...-">'.,~--" - """:~,;:~~;::;~-,.;.,;:,;;;;~.;...,;',.. ~- " - -..... ,-<,'" .- "_-~:""~~t~"'7':...,-'_~:::-~,;;~'~-'-~~~":~,~-~";',...~..._-:'.~"':~~~~~~:"~=~~-"'-_:.' ..._.-~~~:":~~';...~~-~;_'-'''-'"~':---~='"-''''- ...... ~ SUMMARY OF OPERATING RESULTS The eighteen hole green fee in the year 2000 will be $30. Rates for seniors and junior players will offered at 10% off the regular green fee. Reservation cards will be sold offering reservation benefits only with no reduction to green fees. In tenns of volume, based on conservative projections in population growth and market share, the volume forecast projects total rounds in the first full year of operation at 24,500 rounds. As the facility would mature and establish additional market share, rounds would conservatively increase until a stabilization point of 38,000 rounds is reached in year five. Tee time utilization at that point would be 64% which is in a standard range for comparable eighteen hole golf courses. Revenue would be generated from two main sources: direct revenue from the golf course (green fees and golf cart fees) and revenue from ancillary services (food & beverage sales, driving range, and golf shop merchandise sales). Projected operating margins range from 7% in the abbreviated first season of operation to a stabilized operating margin of 37% in year five of operation. As in the development of the golf course, an experienced operational management team is critical. A qualified golf course superintendent is essential in order to produce a well-maintained golf course. A.n experienced golf professional is needed in order to organize customer service for the facility's golfers. Proper selection of these two positions will insure a properly developed golf product as well as the proper control of expenses. The chart below summarizes operating results for the first five year period of operations. 2000 2001 2002 2003 2004 * Rounds 24,500 34,000 36,000 37,000 38,000 Operating Margin 7% 26% 30% 33% 37% Net Operating Income 58,000 345,000 422,000 508,000 602,000 Debt Service 250,000 250,000 250,000 250,000 500,000 Income (Loss) (192,000) 95,000 172,000 258,000 102,000 Cumulative Income (192,000) (97,000) 75,000 333,000 435,000 . Stabilization Point for Volume and Operating Margin The stabilization timeframe for a new eighteen hole golf course is four to five years. At stabilization point the facility will be generating a net operating income of $600,000 with a 37% operating margin. The value of the golf course as a business at that point would between $4,800,000 and $5,500,000. Financing structures for most new golf course projects are generally heavily financed with equity debt. Traditional lending institutions are usually inexperienced when it comes to financing golf course projects and may tend to shy away from involvement. To be interested they will generally require at least 50% to 60% of the project cost in equity by the owner. Full value of land is not generally credited to the equity amount. Equity on golf course projects is otten organized into limited partnerships or limited liability entities. In order to secure institutional financing, the developer will need to supply an equity stake of 2.3 million or half of the 4.6 million dollar development cost. In the first three years of operation, adequate net operating income is available to service 2.3 million dollars of financed debt. Annual debt service on this amount would be in the range of $250,000. Refinancing could occur in year four or five when net operating income exceeds $500,000. Draw on equity could begin at that time. 6 ::::-':":~~:'~:'=:;f':"'~:~:""::::::-==:r::=:::::i,~~:-::"C' "-o,,"'_'*_~""'-"' _'-~~_~--::'::'::::'~,"~'::':''''-'_~-''':'~O''-"'':''"_O__~'!'::'"":"-'---~--"'''-~':'~::'-=-",-,_~,~-,~;,!~~~",-_<--,-c,'--""'_:"'~~'v~_~_~~~-=~~~~'\~'.~:::"~'~~~~~-::~;_':;:;~;:::;_;:~_~~::~~~:::;-r:.~,,---~~:"'.~~:;~-~~~~:::;;::.~~~~ ~'"';:;;:'":"-".""'."-~ ~....... -''''''_~''-_-"''''''"'''=''''''''"'''~.~ ___.~_._ __"""""'" ____--'d>!'___ __ _.., '-=_ '~~_=.........-_ -.7C-.'''_........,..-O,<'r _ '-'"':'.~,~~-~:_-,.::"'::".~-._;-- .~---~'"::~~'~;-'-~~~~~---~:~~;~~-~,,-,-,'- -.' .,,"~-~~~~~~-~~:;""~~~~.~ . . CONCLUSIONS 1 . Sufficient market exists for a quality eighteen hole golf course to succeed. The developer must make an adequate investment in order to create a golf course that will attract significant numbers of golfers from the populated metropolitan area. Avid players will travel that distance or greater to playa golf course that is attractive in terms of challenge, quality, and overall value. If satisfactory quality is not achieved through the construction process, the number of rounds required for business success will not be achieved. 2. The operation of the golf course will not generate sufficient cash flow to finance 100% of its construction cost. The developer must be prepared to provide equity funding or secure equity debt in order to qualify for institutional financing. 3. The developer must remember that the golf business is a serious and specialized business. Accordingly, experienced golf course professionals must be retained to develop the facility and manage its operations. 4. Primarily, the development company must weigh the golf course as an amenity that would propel sales in its more profitable housing business. If a golf course is constructed, an adequate investment must be made in order to properly compliment the quality of the planned housing portion of the development. 7 . ....."0;--".,..,..-._,..."",.,.,,..- .___.. n__.. ...____ ~~'._ .",_,_.._~..,.,... _ ~o.~ 0... _._ .~ _ .._ ,''''''''''-,"__''''''~ ......"""._...._,~....,.,.,:,,""'"~.._~ - " -~- - -,-.-, '" "--" '-,-",-.',."~.~'-"'.~ -- """".,~-",,.~~,-~.", --,-- ", ----.-..... .....,. -- -......" -,...~.....,_.....".=-,-. ,,,"'..' ''',."","",,,,,,. - ~---.'"...,,' . -- ..." -, _.=,-_.~---=-- -' , . . 5[[ McJv[urckie "',-... . .... ~ : : Q.l .. .......,...,.....,...,...,....:.,..~~?{Jiqit/ft-ol4WPWfflj.,...,...,...,...,..........,.................................. . .. . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . - . . . . . . , . - .. . MEMORANDUM Date: April 25, 1997 To: Don Jensen Pilot Land Development Company From: AI McMurchie SUBJECT: ANALYSIS OF METRO AREA GOLF COURSE DEVELOPMENTS The attached chart summarizes golf course development projects during the 1990's in the Minneapolis/St. Paul metropolitan area. Public courses have dominated development the past several years. One private course has been developed in the 1990's. Bear Path, a high end private club development in Eden Prairie, has not been analyzed. Exact operating results are not readily available, particularly for privately held facilities. Estimations are made based on the consultant's best judgment. For eighteen hole golf courses an operating margin of 30% is assumed. For nine hole facilities, an operating margin of 25% is assumed. Business viability for each facility is also estimated based on the consultant's best judgment of probable operating revenues, expenses, capital costs, and debt service. 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COUTSe I H"I. ['11,;.\;' . rod I~: ~:~ ~: "n- :"',. ~~ '-Ie '" 1.1~ I.' 'co, ,,. 'I.: \"l"1 ;~" ~ l.~ ~~ L~~r~~..l.... :;;s ','1 1::;;~ .; . '" I ~:'J ". 10,; J --I 1--) I 'l-Hole C""t"e . ,'~rd 0' th" ~(>ur>-e ~j,h..~ r.\( I ; , , I : ,~. i ' , , I ., .,....\ l~~ h..1 4;'1l .~I" ". , .\~I..; ;.J ';; I ~~, ..l.:-oi: , 9 HOLE (PAR 35) & 9 HOLE EXECUTIVE CONCEPT DEVELOPMENT PLAN June 2, JClCl7 PILOT L:\ND OEVElOPMF.N'f COMPANY l.l"l~', 'l'r::.:!; ~~,':':;n~": ,.Y1V;I"'!'I".'l!': 51~Q\':--"E WL1Il~rn~ II.Ui.li '::~"'~''''.''_I - :::~~~;..~~~ . ......._:,lw..~.... ~ A:'S(.'('.l~~l,..:', I".. @ ~'f1h f{,\M l,\IiCJo:. "-tINN';~Oj.... :-:='J.l"l ....CA.I.-I\ Cedar Creek Golf Course '1,\.-. 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'\1 :-.J.I~ . ~I:iltl 9 HOLE (PAR 35) & 9 HOLE EXECUTIVE CONCEPT DEVELOPMENT PLAN O',~"(.}'e r r ..vt,. r ~ MAY 30, "",,7 PILOT LANI) DEVELOPMENT COMPANY ,-;,:.,~.:, "m:i~..J.:I:!~,~;. 1.".',; I,.,kf'l.t'll, ~;"",...I Nit Willi""". ~~;.::":':'~.;:, . _......'1C....~..,411 _10.._ '/U.q"U'" ~,.h .~. A~i.,~iM':::f. 'it.,.:. @ HAM L\II;,E. M.lNN-I:ir,;O.." :n~( ~f_"'I.I;: Ceda.r Creek Golf Course -_. r-===, . ;:111' ~Ii" ." ~!A Yf~.7 o::r ~ 6{~ ,.,,,,",<_,,-,,'.,.',,,,,,,,,_ '~'''_.'''''''''''L''''<'<<_='.~'.....~'''~~ .", ',_~__..~ ~"''''.,~""."",..."."..~~>.' .... .......-""'-'.'''.., ....,."'-'-." .' ,<,_"_"",_,,,,",.,.,,,. _,w,._.,.. .,~,. ~...~._~~,~..~,....~.,~""_....c.,,.,,__,~_.._"',..._.,.~ ',_..-,,'.';". _"~'..~N."~"".""''-'="'''''-~...'","._..".':,,,,,,,..,'_ -......,..,.."..........,. _'''._. '''''''. _ ".- . 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'...... \ . ~.... -' - - .: (~T-"'-}~'-';"-' :;;'" "lit." ..~ ~ ~ ~i~~~ _ '~}7"~ ' ~ _ .. ~~'" ~ -..::...:.-:-,A;-.~<::::/~/ . "'-. V .......-""'--"""'--_:--:--==-_. ~!Si.;: '. M.(~ -----';;r-. .:..-.,......1 ~ "1"". "/ .....0=:= '--<- . '\. ",",-, JIl:~.I" - - 10 - - ':) ::.:~ . ~, ~~~~- -:'1.:', t " (,~U, ~ SF" t,~ t;tI\lt ~~.~ tI-' 00"0._7" A "0.. O_D...R O"_..c .a C_NT.R OAK_ ADD.T.ON F"E8RI.JA~"'" e. 1997 ~ PrLOT LAMJ .oaeLOPftIC1fr C:f)6JI>AN)I" ~ f.J7.:Jt1 H-e. ~t:w ST- . ':::' M::f~~ ... l<Oilf-llCfCJI\ol _ "., HWI': ZI N. ::.c~~ ':;;2_m~3 I"CM'~QI~~""'a~... AND ~~_~"\:_~. (i.,A{.~: ~ 3~, 'ZZO ~ /1..:z.. q Ac.. 1 $"". q 1fo(.. j ~ ~~ ~ ~~; ~~: ;~~~~~:~;~~ ~~ ;;~ - ....;;: U .... : ::l:i.! ~ I "3 VI ~ ; ~"~------ 13~ i ~2 ;~-;;~ ";:t;:;:22::;!;;,~~=r~!;::!:!:: ~~::i~~~!:. ~';':..-::~::::::';;';:~~;:;;:;:; ~ ~:::.: ~ H :~~..;.:~ ~2~:::::!~ ~~:..;::. 2 ! ~ _ _ _ _ _ __ _ _ _ .-Clv';"'-,. _ / (~ r-" 5'~. ~~- =-~;;~~-2=~J:~~='~o::":::r""::~~~~:,::\=""'-=;s-~c:=S,_ \~/ , .', -- ~.. "\ / , I I I I I ... ~' , '~'-----' ! _-- _____ ; 7~:- >) -:: :-.. D 1\ : / '-,----,-- f' I ::.,----------:---->< 0 -01 , n ---- -- ~ - , , , - -1 \ I : . . i / 01, . NCjC1f I ~<i ~ ft1cye sfy-eel t;l Les~ +y~ I ( e IJoftll'!1 'I ,to~- 0ft!c lC~e : iP I(:;~ ~'1Ja.vA ~ JJ g~vt:~+f:J , ptt tt EZ-0:4 :) I ( " ...--" , , , , , -' . v~ . .. .. II ------- . I' -,,'~ ,--., .--- , ---.--- ,..;.~' . , _-__i.-',-,H',""' ....,........ -"-".~.....~ ~..-""~.h-<C_"'_. _.'.__.',"_. .."~.., ~""'~__'~_.", _.,.....~_.,_... "' ,"".". -..-....,-_. :"':_~-....-_.....,........_~. - "',--,"", '..,,,.. . ,--~--- .-.- --- "'-,."-""""-'- 18 City Business March 14.1997 . Golf course homes' appeal stays green By Peter Kafka Sr."rr reporter It's the Sluff snowbirds' ureams are made of - secluded. spaciolls l11illion~doll:lr hOlnrs a chip shot away from lush links. In the Twin Chic!';, though, some home- hu}'cr,o;; aren't' wailing until retirement to move nc;{l door to golf greens. In increa~ing n\l",hcr~ they're doing it now. by huying inlo one of the sle::nlily multiplying "golf comrT1lmitic~" thai promise upscale housing ilnd C3.C;Y accc.c;s to the fairways. "I only ~('c more and more of these." said Mcl::mie Greenstein. whose Paragon Dc.';gncr, & Builders is sclling $650.000 homes at Oearp:lth in Eden Prairie, the fuin Cities' only gated community. "Sales are going. 10 be hooming this summer." ^ year ago, somc builders werc les.c; opti- mistic about the local appelite for high-end golf-and-housing development', mainly because of the troubles experienced at The \\lild.c;, an ambitious project in Prior Lake. Al Ihatlime. sale, atlhe 580-acre plOject were slow, the original developer wm; nehind on his b1l1s, :md the project's home builders were wondering if they'd overestim:lled market dcmnnd. Since then, Coon Rapids developer Jim Stanlon has acquired the project. a long- dcl;wecl clubhouse i~ set to open this spring, nnd home builders say buyer jnt(':rc~l h~s picked "p. Land availability limits local growth of course building "There's a new spirit, and things. are active again," said Oruce Nedegaard. presi- dent of Nedegaard Conslmction Co. Inc.. Coon Rnpi<ls, "But it's active all over." Dcspite interest,TC region trails Jndced, said Nedeg:1ard, interest in golf comnmnitics iR heallhy throughout the Twin Cities, and not just in high-profile projects like Bearpalh ~nd The Wild,. Smaller devel- opments, such as the 58-home subdivision his firm is working on heside a public course in Plymouth. are also attracling buyers. So are project'; in communities on the out- ,kirt, qf dIe Twin Cilies" core - golf com- munities . are planned or' underway every- where from Stillwater to Duluth, where a developer wants to build a $15 million project among dle Spirit Mounlain ski hill,. Observers say that makes sense, given the robust local economy and the state's seemingly insatiable appeute for golf. 111e sport's boo.c;ters say about one in five Minncsol:ms plays the g::une, and "we're GOLF from page 18 ..It'd be nice if Voil could go out Ihere and find a farmer that's got 500 acres. and you've got a si[e," he said. "But there's not much out there, and the ownership in the Twin Ci[ies is fragmented." In Bearpalh's case. assembling, financing and purchasing Ihe 470-acre property - from seven different o\l.:ners - took nearly five years. Land usage questions Even when hmd is available, there's no assurance that locat municipalities will allow a builder UJ use a large tract of land that could go toward other uses, "(Ihink that where it's appropriate 10 put golf courses alongside executive homes. I Ihink we re doing that. The problem is it isn't always an appropriate use of land," said Karen Christofferson. public policy director for the BlIi Jden; Association of the Twin Cities, For example, she said, officials in Brook.lyn Park are debating whelher to ded- icate part of a 400-acre parcel - one of the large't piece, of land left open in the first- ring suburbs - to a golf course. While the course surrounded by high-end homes could genera[e significant property taxes without burdening the city's infra- structure. the city might be beller served by committing that space for a denser housing project, she said. Founder Richard Burtness had a some- what easier time assembling the Wilds. in rural Prior Lake at the southern edge of the Twin Cities, Even that, though. involved a tricky land swap r.hat had to be approved by the ~tctropolitan Council, as the original. land was outside the council's sewage and utilities boundary. And by the time Burtness and his part- ners had made [heir original investment,. they found they had few dollars left for infras[ructure improvements, which made the project a tough sell 10 home builders and horncbuyers :lHke. . inside EXECUTIVE HOMES Golf course settings appeal to avid golfers,3s well as non~gol(ers who like the sur- roundings. This home is in the Wedgewood development in Woodbury, finding in the Twin Cities that when a new course come:,; on line it becomes pretty satu- rated pretty quick." said Ross Galameault, executive director of the Minnesota Golf Association. Still, industry observers say golf-and- housing developrnent.~ aren't nearly as preva- lent in the l\vin Cities as they are in most every other part of the country, from the SUIl Belt to snow-bonnd stales like Michigan. "You go to other major metropolitan areas, and almost every other subJivisit)1l has a golf course," said John Vogelbacher. vice president at Rcarp<lth. 'Till not sure why we're so unusual fin the Twin Cities]." I-Iowever, Vogelhacher and otller indtlstry observer,c; hnve some idcilS, First and foremost, they say, is the lack of availnhle land. Area home builders already gripe that the inventory of sites suitable for residential. development has dwindled dan- gerously, constrained by the sewage and util- ities boundaries cstablished hy the Metropolit:m Council. F:1ctor in the 200 or so additional acres necessary for a topnight 18-hole course and it.s ncarly impossible to pllt togelher a large- scale development. said Vogelbachcr. GOLF to page 24 In Woodburv's Wedgewood community, project financing hasn't been an issue, according to Lois Caswell, who marke:s house,c; at the 400.acre "planned communi- ty." The property has been owned for decades by St. Paul-based Minnesola Mutual. so Ihe project has been constrained only by z~ning restrictions and market demand. she said. In theory, Wedge wood has offered homes at the project ,ince 1985, but has only begun sellimz homesi[es and homes In the pas[ few years~ WedgewQod has sold 575 homes or homesites through 1996. and Ihat number could evenluallv reach 1.200. Caswell said. The homes range in value from $170.000 In $1.8 million. That OllRht to lead to some awfully long waits for te~ times at the development's 18- hole championship course. But therein lie.') the not-50-dirty little secrel behind golf communities: Most buyers are less interest- ed in the chance to lower their handicap and more interested in landscaping. "[An attached golf course I influences their decision a fair amount in terms of aes~ theties, but it doesn't make much difference in terms of golf," said Caswell. Across the country, she said, only about 20 percent of homeowners in golf communities actively play on their courses. 'They buy because of the golf course, though, because they know what's around them," she said. "You can have a half-an- acre home sire, but it feels like acres and acres of land," That doesn't hold true ncross the board. At Bearpath, which boasts the firs[ private club to be built in the Twin Cities in years, the J~ck NickJaus-designed course is a gen- uine draw, Vogelbacher said. About 80 per- cent of current homeowners have shelled out $32.000 for membership at Ihe course; he said (nonresidents pay $34.000). Still, he said. even Ihe most avid golfers won't buy a home solely to get an early tee time. - "Just the facl that you have a wonderful golf course isn't going to attract peopl~ to your community,"' he said. "II's got t? be..1tl a nice location where people want to hve. . -~.,;.",.-:':=~L':"-.:':';':'''''":'::::;':,::':':.~:;::,:,',..t....."".,... --'~~~~':'~-';;~;:::::'.:;.-:"~;;';"""-~-' ...:.:: ~ ~ ~ ...... ~ ~ '"--< .0:1 ~~ "":>: ~ ~ g~ ~ l; ~ ,. " c >- .5 .5 -~ =a e Q) .- .. ""'" .. Q) .... & ... en .- ..... 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TI,"lackaun is putting pressure 011 metro-area '.' - uLilities, especially th~l growing submbs with little shade an ~ of new sou. Lawns a drain on suburban water systems By Mike KaSluba Star Tribune StaffWriler There's virtually no shade on Town Lake Trail in Woodbury and. in the past month, there's- been hardlv any rain. either. Yet here, in the midst'of some of the city'S new- est and fanciest houses. - the grass remains a healthy. deep green. As Woodbury and other develop- ing Twin Cities suburbs learned last week, the crisis most municipal wa- ter systems are facing is due simply to too many homeowners waleling their lawns. 'n Minnetonka. whele one part of the city was left without any water last week. lawn sprinkling was blamed for pushing the city's aver- age summer water use from 5 mil- lion gallons daily to an eye-popping level of 20 million gallons daily. '" think there's a societal value to maintaining a green lawn." Brian Wagstrom, Minnetonka's operations and maintenance director, said as the crisis passed. Indeed, last week's shortages in the Twin Cities' fastest-growing sub- urbs were not necessarily an indica- tor of struggling municipal water systems - most are new, well- equipped and expanding almost an- nually - but a sign of the extraordi- nary demands for water by home- owners who've invested thousands of dollars in lawns in new subdivi- sions that don't have shade. From riding lawnmowers costing $4,000 to gardening stores that stockpile bags of gypsum pellets to rid lawns of "animal burns and other impurities." the quest for the perfect lawn is taxing suburbs. particularly newer ones. Not surprisingly, many of the sub- urbs experiencing water shortages are those that are among the leaders in issuing new building permits_ In Andover. where 11 I building permits were issued this year through the end of May, one of the city's two water storage tanks was almost emp- tied over the weekend. "We were pumping lat al maxi- mum last week," said Brian Kraabel. the city's water and sewer supervisor. Turn to WATER 011 BS 1I!I8~:.;,;~~~~~:G~:'57L~~~l""T;\~~;;t~~T2!Y;;~~~1;:'~!:..::.;O:~:-~":::;;~":~~'~~~''',.~'~hI;;i:'':,c-:::~!~~ TUESDAY, JUNE 17' 1997 Metro/State >+ STAIt TRIBUNE' PAGE B5 exempl new lawns from any wa- tering restrictions for 30 days. 'Tough right now' "You need to water Inew sod I an inch a day until it's rooted down," lIentges said. "Even on existing lawns, it's tongh right HOW." With less than an inch of rain having officially fallen in the Twin Cities this month, few growing suburhs have been able to keep pace. rred Moore, Plymouth's longtime public work's director, watched as the city's average summer-dav demand of II mil- lion gallolls- a day raced up to 25 million on June 9. "We ran for 15 days" without raill. said Moore. who's been with the cily for 19 years. 'Tve never seen anything like that before," Even after the city pleaded rri- day with homeowners to volun- tarily stop nonessential watering, Sunday's consumption still reached 15 million gallons. he said. Another problem was Ihe lailure of homeowners to turn off their automalic, in-ground sprin- klillg syslems. "A lot of people were waterillg in the rain," Moore said, referring to Sunday's heavy demand even as it rained. On Monday, Minlletonka an- nounced a sprinkling ball f10m 10 a.m. until 6 p.m. daily and an odd-and-even lawn watering plan, But Ihe city exempted a new golf course thai's under con- structioll and said homeowners using a hand-held hose would llot be affected. "We would be willing to sit down with anybody if speciai per- milting is necessary," Wagstrolll said. WAlER fmm 81 The pursuit of perfect lawns causing shortages in suburbs "With all the new develop- ment. all the new hguses, every- body's pUlling In yards," he said. The city already has an odd- and-even watering ban, mealllug homeowners with odd-numbered addresses can olllv water lawns on odd-numbered' days, and the city forbids allY watering between noon and G p.m. daily in the summer, no mailer Ihe rainfall. Bul Ihe cily. which call pump 3.700 gallons per minule, found that, at times, ii's had to pump nearly G,700 gallous per minttle - a feat ruade possible ouly by drawing down its storage tanks. Andover, which already has five wells, plans to add lwo more by next spring. Lakeville has issued 127 build- ing permits for new houses in the first five months of the vear and linds itself In a similar 'predir.a- menl. The cilY's lOth well will be ready for use in JlIly, and Ken Seurcr, the city's utilities superln- tenden!. said l.akev/lle has dug half of Its wells ill the past 10 - yenrs. Yet he added: "There's no rnom for Iwater plllllp' break- downs. ... There isn't Illllch room for error. "You can see it: The browner the lawlIs get. the more water demand goes I1P;' he said. Laying sod on a typical quar- ter-acre suhurban yard costs rollghly $1,620, said Judy Ilentges. of lIenlges Sod inllam Lake. Evell at l.ake Place, a new Jue Miller lIomes suhdivision in WoodhlllY where a uew huuse comes with a sodded front vard, adding sod in the bark am!' side yards cal1 co,st $AOO to $1,500 more. Manv suburhs inlhe Twin Cit- ies aren, howing to Ihe heavy 111- vPSII1lr.nl in :"oddillg:l nc\v ymd. ~ _1.1'-..--. - N~: ~~UL kwn ~U C/y&l/eJ ~ ftA WI-lw1~ wiU ~ 'J1-. ~S 10 ve~WtL wPNP(/st. 1efh ~f ~ VtUV ~ . A /() tf UUJI~ wi>>. IA~ Uf U1/1v0 I 0wat:W ~ce- a.we~(~ wiJjv-;'_h e ~ . (j)" _ U /' .. J tJ.. LvUJ- 4J'1-U'J ~r~ "t;::r 1fdr oweN? . ~ ( ~ 1[W11~ wArkWkutJ wt1J a/;o ,C'c~~~,_~:,:}trJ:c!}fn._~~fj;Uf? 'e:; -_ _~-;- ~