Title
Review and Comment on the Corica Park Rate Increases
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To: Honorable Chair and Members of the Golf Commission
From: Amy Wooldridge, Recreation and Parks Director
Re: Review and Comment on the Corica Park Rate Increases
BACKGROUND
The Greenway Golf (Greenway) lease with the City of Alameda (City), requires that Greenway provide discounted rates to City residents, seniors and students. It also requires that the City approve these fees, however the City may not deny approval if the proposed rates are commensurate with the rates at comparable golf facilities. These comparable facilities are specifically listed to include, but not be limited to, Monarch Bay and Metropolitan Golf Courses.
DISCUSSION
Exhibit 1 is a spreadsheet from Greenway detailing the Corica Park new rates, effective October 14th, 2021 and also includes comparable rates at various other public golf courses in the Bay Area.
Greenway submitted the following information:
The new rate structure offers a 34% discount to residents throughout the week and very competitive senior rates. This is the highest resident discount percentage at any course in the Bay Area except Harding Park which has a public rate in excess of $200 on all days. The resident discount at Corica Park is well in excess of Metropolitan and Monarch Bay which are below 30% resident discount on weekdays and under 20% at the weekends. The Corica Park resident discounted rates are more than commensurate with rates offered at similar facilities making Greenway compliant with its obligations in the lease. The new rates will be published on October 7th when Greenway starts booking tee times for the 14th when the new rates will go into effect. In regards to comparable courses, while Metropolitan and Monarch Bay are in vicinity of Alameda, the Corica Park renovations now makes it a higher quality golf course. The closest comparable is Baylands in regards to quality as that is the only golf course that has been rebuilt in last 5-6 years.
Greenway will further discuss methodology of their rate development as part of this discussion.
FINANCIAL IMPACT
There is not an immediate direct fiscal impact to the City by this rate implementation. The City receives annual rent from Greenway in the amount of $150,000 per year until 2023 at which time the annual rent is then a calculation based on a percent of gross revenues.
RECOMMENDATION
To discuss and provide comment on the Corica Park rate increases.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Exhibits:
1. Corica Park 2021 Rate Adjustment and Comparable Golf Course Rates