1996-02-07 Kenco Golf Course Concept Plan
MEMORANDUM
TO: GARY HALE, CITY ADMINISTRATOR; ALBERTVILLE CITY COUNCIL
FROM: MIKE COURI, CITY ATTORNEY
SUBJECT: NEW KENCO CONCEPT PLAN
DATE: FEBRUARY 7, 1996
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I agree with the concept plan analysis presented in NAC's most
recent draft report and would like to further emphasize two points.
First, the new golf course in Buffalo was recently foreclosed
upon by the Oakley Bank (the Oakley Bank was the only bidder at the
Sheriff's sale) and the golf course developer, Rem-Con, Inc., filed
for Chapter 11 Bankruptcy protection on January 24, 1996. What
will ultimately happen to the new golf course and its developer is
unclear at this point, but the fact that the golf course has
defaulted on its financial obligations is significant for the area.
I do not intend to insinuate that the same fate will happen to
Kenco. To the contrary, Kenco is a strong, proven developer with
housing development experience in Albertville, Buffalo, st. Cloud
and Oakdale. Instead, the Buffalo experience raises questions
regarding the feasibility of constructing another golf course in
the area. As part of any PUD process in which a golf course is
incorporated, I would suggest that the City require the developer
to provide the City with a market study demonstrating the market
will support a golf course in Albertville. If the golf course
proposed by Kenco were to fail financially at some point in the
near future, it could radically alter the PUD as currently
envisioned.
Second, it is my understanding that Kenco would like to move
dirt on this plat in April or May of this year. City policy has
been to allow grading only after final plat approval, execution of
the developer's agreement, and the proper letters of credit have
been put in place. Because of the complexity and the number of
outstanding issues involved in this plat, I would recommend the
present policy be continued as to this plat.