Golf Course Referendum Vote July 15

There will be a referendum for the voters for the City of Asbury on Tuesday, July 15, 2008 for the purchase of the Meadows Golf Course.

The City of Asbury and the Meadows of Dubuque have entered into a purchase agreement for the Meadows Golf Course. The purchase price for the golf course is $2,950,000. The purchase of this facility maintains an amenity that is located adjacent to the current western city boundary. Financing for the purchase is with a general fund loan agreement that will be repaid with the revenues from the golf course and banquet facilities. All current memberships, gift certificates and event dates will be honored. The purchase of the entity opens up opportunities for the City to further expand and create more recreational opportunities for its residents.

The owners of the Meadows Golf Course approached the Mayor about the possibility of the City purchasing the Meadows Golf Course. This offer was made to the City for two main reasons; First, it was important to the management of the Meadows to retain the course as part of the community; Second, the current owners have invested their time, effort and talents to establish a top rated course in the country and wanted the property to remain as a golf course.

The Meadows Golf Course property is 152 acre 18 hole golf course with a clubhouse located on the western border of the city. The clubhouse is approx. 11,800 square feet and includes banquet facilities, grill and pro shop. The Meadow's property is of good quality and has been well maintained.

The Meadow's golf course fits into the demographics of the Asbury community. The "Baby Boomers" born between 1946 and 1964 play more rounds annually than younger golfers. The population growth rate within a 5 mile radius of the course is increasing at a faster rate than the surrounding area. Residents in the area in general have higher incomes. The increasing population creates a larger base of prospective players for the future.

Since the announcement of the purchase of the Meadows Golf Course, many residents have come forward with questions regarding the acquisition and future operations of the facility. The following are the questions and responses to those questions.

1. Will my property taxes increase?
   
   The Council priority when analyzing and reviewing this acquisition would not result in a property tax increase.
   
   
2. How will the purchase be financed?
   
   Proposed financing for the course is with a general fund loan to be repaid from the revenues of the golf course and events. Property taxes are not projected to be used to finance the operations or financing of the course. The loan is for 20 years and will be a tax exempt financing. Income from operations will be used for operations, loan payments and improvements to the facility and equipment.
   
   
3. Will the facility be open year round for the citizens to use?
   
   It is the intent for the clubhouse to be open year round for events.
   
   
4. What types of community events can the Meadows be used for by Asbury citizens?
   
   The City is forming a committee to assist in the start up, review the current operations of the facility and make recommendations to council regarding additional uses and fee structures for the golf course and banquet facility.
   
   
5. Will employment opportunities be open to citizens for jobs this summer?
   
   Course operations for the season will be established prior to the City purchase. The City will evaluate current staffing levels and citizens are welcome to apply for openings as they occur.
   
   
6. Did we use any form of professional personal to determine this was a good venture for the city? What type of research did the city undertake?
   
   The Asbury Area Development Corporation was the organization that first investigated the opportunity to purchase the Meadows Golf Course. The AADC Board hired the consulting firm of Hughes and Co. to analyze and compare the Meadows Golf Course to other facilities in the state of Iowa and Dubuque County. A building inspection was also performed by Michael Doyle.
   
   
7. Will the property be developed for residential homes?
   
   The property was purchased with the purpose of continuing the operation of the golf course and banquet facility.
   
   
8. Why doesn't the city spend $3 million on street general obligation bonds instead of a golf course?
   
   The financing for street improvements differs from that of the golf course. The repayment of street bonds is made from property taxes and special assessments.
   
   
9. What are the advantages of the City purchasing the golf course versus a private investor?
   
   The City is able to access tax exempt loans which have interest rates 1.5% to 2% below loan rates available to private firms. In addition, the facility will also be exempt from property taxes. The city and golf course will benefit with the ability to share equipment and personnel to cover the needs of the city especially in the areas of snow removal and park maintenance.
   
   
10. What is the purchase price per acre the City would pay?
    
    $13,487 per acre excluding clubhouse.