October 14, 2021 at 11:31 a.m.
Golf course management company reports $125K in profit
Two alderpersons renew marketing criticism as contract decision looms
Golf course management company reports $125K in profit
By Jamie Taylor and Heather Schaefer-
Onsite manager and golf professional Kyle Christian began the discussion by noting that the course was on track to make a profit for the first time since GGP was hired to run the city-owned course back in 2017.
"We did have a great September, the numbers should be coming in soon for September," Christian said. "And we are projecting to make the city $125,000. Total revenue through the month of August was $645,000, compared to $517,000 through August of last year. That's an increase of $120,000."
"We've had such a great year here with golf, and we're actually on a fall season," he continued. "This is the first year that I've been here that we're actually having a fall. Normally we're thinking about snow already, but the course is in great shape."
He said the projected revenue for the course, once the year is closed out, will be around $700,000, compared to the $495,470 in total revenue the course generated in 2017, the last year the city ran the operation by itself. The city lost $174,000 that year, according to Christian's presentation.
"Our net ordinary income, after our revenues and then we pay our expenses, right now through August, we're $158,000 in the green, compared to $113,000 though August of last year," Christian said.
Total rounds played to date is up 3,317 from last year to 14,272, he added.
Over the four years that GGP has managed Northwood, food and beverage service has been a financial dead weight on the operation. The Whipsaw Bar and Grill, the club's upstairs sit-down establishment, has had several cooks come and go. This year, however, food and beverage turned a healthy $59,413 year-to-date profit.
Christian attributed much of that to the Eagle's Nest, a new grilling station located adjacent to the pro shop.
"It is a real great location for when after golfers make the turn after hole 9, they come around and they can get a hot dog, a brat or a hamburger. We also have drinks, beer, soda," Christian said. "It was a lot easier for them (golfers) than coming upstairs."
The Whipsaw still sees use on Monday through Thursday evenings for leagues and when the course plays host to charity golf outings and both public and private events.
The operation of the beverage cart was also changed to a two-shift system "so that we always had on-course beverages available," Christian added.
For local marketing, Christian said the course used a six-month advertising deal with a few local radio stations, social media, newspaper ads, and the GolfNow booking application to reach out to area golfers.
Tourists, however, make up about 70 percent of the the rounds played at Northwoods, he noted.
"We really like to hit the Illinois, Madison, Minnesota area," Christian said, adding that the GolfNow application has not only made online booking easier at Northwood, it also helps with marketing. Northwood is also on another online website, Troon, where discounted play can be purchased at member clubs. Northwood was part of Troon's Midwest package this year.
Christian attributed $28,499 in increased revenue to the switch to the GolfNow point of sale program. More than 757 more rounds of golf were booked over last year, he said.
Christian also mentioned a few capital improvements the firm would like see made before next season. These include $10,000 to upgrade the bathrooms and $10,000 to improve the bunkers, which Christian said is the number one sore point with customers, according to recent surveys. He would also like to have the cart paths redone next year, possibly by utilizing the city crew to save money.
He predicted that the increases in revenue will continue next year.
"There is no reason why we shouldn't make again $125,000 to $150,000," Christian said. "That's what I'm expecting to make next year."
While the numbers were better than last year, two of the four council members present for the workshop did not hold back in expressing disappointment with GGP's performance.
Alderman Tom Barnett said he and alderperson Eileen Daniel "really, really, truly wanted to see an uptick in marketing, better marketing."
"Locals and tourists are pretty much hand-in-hand the same thing," Barnett said. He then went through the various local marketing efforts Christian listed and said many are aimed at members or frequent customers, "not the general public."
Out-of-town people account for 70 percent of the course's business "because you're not marketing to local people," he added.
He also said the Whipsaw restaurant remains underused.
"This is a municipal golf course, the public should be allowed to come here, too," he said.
Christian replied that the restaurant is open Fridays and Saturdays, but retaining kitchen staff has been a challenge.
"But there is no marketing directing the public to come out here (to Whipsaw)?" Barnett continued. "I feel that the Whipsaw is completely underused as it stands right now. It should be making a lot more money."
Daniel noted that the financials show $4,000 left over in the marketing budget that could have been used for more locally targeted advertising, to include social media.
"I follow you on Facebook. I haven't seen much there," Daniel asserted. "You're on Instagram, I haven't seen much there. And those are free. Those don't cost you anything. You can boast a post for $5 and get 10,000 more views. This is simple stuff, guys. This is easy stuff."
Barnett also criticized Christian's decision to turn down a deal with an area television station that would have resulted in trading golf outings for free advertising. Christian replied that the number of rounds of golf the station wanted was more than what the deal appeared to be worth to them.
As the discussion continued, Barnett characterized the marketing as "terrible" and "non-existent" and asserted the city should consider not renewing its contract with GGP. He noted that he almost voted against the current one-year contract a year ago because he "wasn't happy with anything that was happening" at the course.
"One of the big things that made me say yes was they were going to make a huge effort to upgrade their marketing and that wasn't even close to being fulfilled," he said.
Mayor Chris Frederickson stressed that the company has accomplished its number one goal of increasing revenue and showing the course can make a profit.
"At this point, they've done that job," Frederickson said, noting that there is certainly room for continued improvement but it will take time. He also warned against "micromanaging" the firm.
Daniel conceded that there has been some improvement over the last few years, but characterized it as minimal.
"I think there's been an improvement, I'm not saying there hasn't. What I'm saying is I don't think it's a big rah, rah that we, you know, dance on the tables about," she said. "I think it's been very small, it's been very incremental."
The fact that the course owes the city's general fund nearly $2 million, due to many years of financial difficulties, and that the chances of Northwood ever paying that back are nil, was also mentioned.
In recent years the possibility of forgiving the debt and transferring the course's financials from an enterprise fund to a special revenue fund has been discussed but no action has been taken.
Course superintendent Joe Andersen and parks, buildings and grounds director Jeremy Biolo both said that as the Heal Creek property, adjacent to the course, is developed for silent sports, the golf course will benefit.
"Basically, it could be another Winter Park," Andersen said. "The potential is here, with all the land acquisitions and everything going on.
City attorney Steve Sorenson noted that the deed restrictions put on the property when Wausau Paper Company granted it to the city are still in effect.
"It is still an existing corporation," Sorenson said, in response to Daniel's assertion that Wausau Paper Company does not exist "except on paper".
Even if the corporation were to go out of business it would have to transfer its assets, including the deed restriction, to another entity which would have all the same rights and privileges, Sorenson explained.
"It doesn't disappear in the legal sense," he said. "The legal entity will become someone or something else."
"We do have a beautiful property," noted council president Ryan Rossing. "A lot of potential coming up in the future, and we all have to work together to make that happen."
It should be noted that alderpersons Tom Kelly, David Holt, Andrew Larson and Gerald Anderson were not present for the workshop.
After the session, the River News offered Christian an opportunity to directly address the alderpersons' criticism of the firm's marketing efforts. He sent the following statement in response.
"Our marketing efforts in 2021 were targeted to the golf customer. We have used various sources to increase both revenue and round play. One of our primary sources is GolfNow which promotes Northwood Golf Course nationally and actually secures reservations and a customer profile for Northwood. GolfNow is an innovative technology company that creates seamless ways for golfers and golf courses to better connect. GolfNow operates the largest online tee-time marketplace in the world, offering 3.5 million registered golfers a variety of ways to stay connected to their favorite courses and the ability to easily book tee times online and via mobile devices any time of day. The results through GolfNow have been outstanding and increased rounds of over 3,317 rounds through August. We have also increased our social media presence. We did bi-weekly posts on facebook. We also ran radio ads with WRLO Rock 105.3 and 101.3 The Game. We also have a social media presence on troon rewards which is a national marketing effort that targets troon members all across the country. Troon is the largest management firm that now owns Green Golf Management. Through local recruiting, we also added a new Monday league that now gives us a full league schedule Monday-Thursday."
"There are those that believe we should do public marketing however we have found that by targeting the market towards golf customers we saw significant gains in 2021," the statement concluded.
The city's contract with Green Golf Partners is scheduled to expire at the end of the year. In an email response to the River News Wednesday, city administrator Zach Vruwink said he anticipates the council will discuss the contract in the near future, possibly as soon as its next scheduled meeting. That meeting is set for Oct. 26.
Jamie Taylor may be reached via email at [email protected].
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