Winnipeg, MB - A new proposal would ensure City of Winnipeg golf courses remain accessible, affordable, and 100 per cent owned by Winnipeggers, while reducing their operating deficit and at the same time, generating much-needed capital improvements in the golf courses.
The Winnipeg Public Service is recommending that the Alternate Service Delivery (ASD) Committee approve a business plan for the independent operation of four City-owned and operated golf courses currently losing nearly $850,000 annually.
The report proposes a 20-year lease agreement with GolfNorth Properties Inc. to manage and operate Kildonan Park, Windsor Park, Crescent Drive, and Harbour View golf courses. The proposed lease arrangement would improve annual net income and capital investment by nearly $759,000. A minimum capital investment of $4.2 million by the proponent would be required toward the improvement of the courses, which shall remain publicly-owned.
In its Operational Review of Winnipeg Golf Services, the Audit Department observed that decreased participation along with increased competition are factors which have changed golf in Winnipeg. The audit also noted, "offering golf services through Winnipeg Golf Services (WGS) is increasingly unaffordable, unsustainable, and costly to the City."
The audit went on to say that in 2011, losses of $836,530 increased the accumulated deficit to $7.1 million.
In addition, the administrative report proposes that Council declare the John Blumberg Golf Course land, located outside of the city in the Rural Municipality of Headingley, surplus to the City’s needs, so it may be marketed with the net proceeds being reinvested into current recreational amenities inside the city of Winnipeg, therefore, helping to directly reduce our existing infrastructure deficit.
Having external service providers operate municipal golf courses is not new to the City, as eight are already under this type of management.
GolfNorth currently owns, operates and manages 21 courses in Ontario including Grey Silo, host course for the Ladies Professional Golf Association’s (LPGA) 2012 Ladies Canadian Open Championship. They operate/manage courses at varying playing levels with some courses being similar in length and design to Kildonan Park, Windsor Park, Crescent Drive and Harbour View.
Permanent employees will not lose employment with the City. As per the terms of our collective agreement with CUPE, they will be redeployed.
GolfNorth has agreed to offer employment opportunities to all Winnipeg Golf Services seasonal and temporary employees.
The administrative report on this topic, which will be considered by the Alternate Service Delivery Committee on Friday, May 17, 2013 can be found here.