Township renews golf management contract
Photo © Don Howard/Associated Newspapers of Michigan
Plymouth Township spent or budgeted $750,000 on Hilltop Golf Course in 2011 for renovations to the clubhouse and course, including 54 new gas golf carts. The golf carts and new mowers-totaling $452,000-was purchased with a seven-year installment plan according to Township Treasurer Ron Edwards.
Mar. 13, 2016 PLYMOUTH EAGLE.
Plymouth Michigan News
“…representatives of Billy Casper said that the operating deficit was due to falling revenue during the recession, but is now regaining ground.”
Last week, members of the board of trustees agreed to a new, three-year management contract with Billy Casper Golf, the organization that has managed the facility for the past five years. The new contract will not provide a flat management fee to Billy Casper Golf, but will pay the management company a percentage of gross revenue at the golf course. Billy Casper was paid a fee of about $87,000 for 2015, when gross revenue at the 18-hole course was $600,000, a break even with costs, according to figures from the township. The course operated at a loss for the past four years with a deficit of $408,000 in 2013, according to a township audit.
During previous contract discussions, representatives of Billy Casper said that the operating deficit was due to falling revenue during the recession, but is now regaining ground.
Plymouth Township Treasurer Ron Edwards said that revenue has increased significantly and that golf is “coming back.”
Rather than the flat management fee, Billy Casper will now receive 11 percent of the annual gross revenue up to $600,00, 13 percent if gross revenue at the golf course is between $600,001 and $700,000, 14 per cent if gross revenue is between $700,001 and $800,000 and 15 percent if gross revenue exceeds $800,001 or more.
The company will receive a bonus of $5,000 if food and beverage sales total a minimum of $225,000 annually.
Trustee Bob Doroshewitz, who cast the lone no vote on the contract, suggested a 1-year contract but found no support for his suggestion. The contract was approved 5-1, as Trustee Chuck Curmi was not present at the time of the vote.