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8.2 SR 02-16-2021 Request for Action To Item Number Mayor and City Council 8.2 Agenda Section Meeting Date Prepared by General Business February 16, 2021 Cal Portner, City Administrator Item Description Reviewed by Request for Proposal – Pinewood Sale Michael Hecker, Parks and Recreation Director Reviewed by Peter Beck, City Attorney Action Requested Approve, by motion a Request for Proposals and timeline for the sale of Pinewood Golf Course Background/Discussion Mayor Dietz was approached by individuals interested in the purchase of Pinewood Golf Course to continue golf operations. The City Council met in a closed meeting to discuss the parameters of such sale and directed staff to negotiate with the interested party. At the February 1, 2021, regular meeting, the Council received feedback from community members regarding the potential sale and was made aware of at least two other parties interested in the potential purchase of the property. The Council directed staff to develop a request for proposal to solicit further suitors. Because the potential suitors have been aware of the opportunity, and the expectations for proposals are rather minimal, the window for accepting and considering proposals is rather short. Proposals would be accepted no later than 4 p.m., Thursday, February 25, 2021, and would be considered and accepted by Council on March 1, 2021. The Council should consider the adequacy of the timeline and the information requested to make a diligent decision. Financial Impact N/A Mission/Policy/Goal The Elk River Mission Statement Attachments  Request for Proposal - Draft The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 Request for Proposals (RFP) Purchase of Pinewood Golf Course Section 1: General Information Contract Administration All correspondence regarding this Request for Proposal (RFP) must be directed to: Michael Hecker Parks and Recreation Director City of Elk River 13065 Orono Parkway Elk River, MN 55330 MHecker@ElkRiverMN.gov All questions must be received before 4:00 p.m. on Wednesday, February 24, 2021. Questions received after that time will not receive a response. Proposals will be accepted until 4:00 p.m. on Thursday, February 25, 2021. Please submit two (2) hard copies and one (1) PDF copy of your firm’s proposal. All persons or companies who download this RFP are requested to register their name and email address by sending an email to MHecker@ElkRiverMN.gov. Any revisions to or corrections on this RFP, after it has been advertised, will be communicated to those registered RFP holders. Failure to register your contact information as described is at your own risk. A proposal will not be considered if it fails to include all requested information as detailed in this original RFP and any subsequent modifications. Acceptance of Proposal Contents The contents of this RFP and attached information provided to the proposer will be included as part of the contractual obligations if a contract ensues. All information in the proposal is subject to disclosure under the provisions of Minnesota Statutes Chapter 13 – Minnesota Government Data Practices Act. Proposal Timeline Submission of proposals Thursday, February 25, 2021, by 4:00 p.m. City Council review and consideration Monday, March 1, 2021 Project Overview The City of Elk River requests proposals from responsible firms, individuals, or teams for the purchase of the Pinewood Golf Course through: 1. Fee Title or 2. Contract for Deed Pinewood Golf Course consists of a 9-hole executive course with a 1,700 square foot clubhouse and a pole barn maintenance building. Any sale will require that Pinewood be operated as a golf course for a minimum of ten (10) years. Respondents shall outline their proposed terms as it relates to the type of sale sought. Final terms will be negotiated with the successful respondent(s). Purchase Agreements will only be entertained for the entire golf course property and buildings and shall at a minimum include the following in their responses: 1. Type of Sale Proposed. 2. Proposed minimum period of operation as a golf course and mechanism for ensuring operation. 3. Purchase amount and proposed terms of payment. 4. Evidence of Financial Resources. The intent of this request is for the City of Elk River “City” to sell the Pinewood Golf Course property “Course”, equipment and operations and said property, equipment and operations become the responsibility of an individual or management firm, hereinafter referred to as the “Firm”. Section 2: Background City Profile The City of Elk River is the county seat of Sherburne County, Minnesota located approximately 34 miles northwest of Minneapolis situated at the confluence of the Mississippi and Elk rivers. The 2015 population was approximately 24,000. Parks and recreation facilities are essential to Elk River’s identity and to the quality of life for residents. With 42 parks and recreation facilities and more than 1,000 acres of parkland, the city has a strong commitment to parks and recreation for residents and visitors alike. Through the city passes the Great Northern Trail (north/south) and the Mississippi River Trail, connecting Lake Itasca to the Gulf of Mexico. To protect, cultivate and guide future strategic decisions, the City Council adopted the Parks and Recreation Master Plan in June of 2015. The plan provides direction for the Council, the Parks and Recreation Commission and city staff for strategic decisions impacting the parks and recreation system. Pinewood Golf Course Profile Pinewood Golf Course lies on the westerly corporate limit of our active and growing city. The course is a 9-hole, Par 30 executive length course on approximately 27 acres of land. Course length ranges from 1,497 to 1,832 yards. The city purchased the course from the original owner in 2005 and operated Pinewood from 2006 to 2013. The average number of rounds for each year of operation was approximately10,000. Most of the users were local senior citizens and youth. The golf season was typically from April to October. City operations included a full-time Golf Course Superintendent and seasonal staff to maintain the course and clubhouse. The course was closed for the 2014 and ensuing golf seasons and maintained in a reduced maintenance state with the intention that it could be returned to service in a minimum amount of time. The Master Plan made little reference to Pinewood. However, through the planning process, residents expressed a strong desire to retain golf as part of the city’s recreation offerings (Appendix E, Parks and Recreation Master Plan Page 23). Resident desires to retain the course include providing an affordable golf option supporting new golfers with a learning course and ensuring family friendly activities that appeal to all ages. With the goal to once again open Pinewood for its residents and visitors, in June 2016 the Elk River City Council expressed consensus to seek a responsible management firm to manage the golf operations, lease the course for operation or purchase the course with the intent of operating it as a golf course for a minimum of five (5) years. The City advertised and received two proposals in November of 2016 for the management/sale of Pinewood Golf Course – Elk River Golf Club and Chase Michael Home/Dalbec Property Management. City Council consensus at the November 21, 2016, work session was for the city to negotiate with the Elk River Golf Club (ERCG) into a formal agreement. City Council approved a two-year contract with the ERCG with a management fee of $4,000 per month during operational months for those two years. The City paid all operating expenses and received all operations revenue. In 2019, the City approved a new three-year agreement with the ERCG. The new agreement removed the management fee and included an annual lease for $1 per year. The ERGC became responsible for all operational maintenance costs while the City agreed to fund capital equipment replacement. A 1,700 square foot clubhouse sits adjacent to the Number 1 tee box. The city last made interior improvements in 2011 and ERGC made minor improvements in 2017. A golf check-in area with counter and snack sales occupies the front section of the building with a small area for tables and chairs for golfers to relax and swap stories of missed putts. Packaged food was permitted for sale as the facility does not have a kitchen/concession operation. Two (2) restrooms, men’s and women’s, are towards the rear from the counter area and are not ADA accessible. The course does not have a driving range. In addition to the clubhouse, a 1,350 square foot pole barn serves as a maintenance facility. No specialized facility exists for either gasoline storage or pesticide storage. The irrigation water source is adequate with the overall system supplied directly by a well and pump system. Section 3: Proposals The proposal shall contain the type of information summarized below. Additional information is allowable, providing it is directly relevant to the proposed project. The submittal should follow the labeled sections below as follows. Section 1 – Firm experience, past performance, and capacity: Provide a description of experience, past performance, and capacity to finance acquisition of the golf course and to deliver the proposed services and experience in management and operation of the golf course. Section 2 – Purchase Terms: a. Any sale will require that Pinewood be operated as a golf course for a minimum of ten (10) years. Include the proposed minimum period for operation as golf course and the mechanism for ensuring that this commitment is met (i.e. restrictive covenant, contract for deed terms, etc.) b. Include whether the type of sale proposed is to purchase fee title, to enter into a contract for deed, or other. c. Include the purchase amount and the proposed terms of payment. d. Include evidence of the purchaser’s ability to finance the purchase price and to meet its obligations to operate the golf course for the proposed minimum period of operation. e. Final purchase terms will be negotiated with the respondent that the City Council determines best meets the City’s goals for the golf course and the City. Section 4: Selection Proposals will be reviewed and evaluated by the City Council. The City reserves the right to reject any or all proposals. The City further reserves the right to evaluate proposals based on all proposed terms and to enter into an agreement with the proposers and on the terms that the City Council determines best meets the City’s goals for the golf course and the City.