6.4. SR 12-05-2005
Item 6.4.
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, Finance and Administrative Services Director/Interim
City Administrator
DATE: December 5, 2005
SUBJECT: Pinewood Appraisal Presentation
Attached is a copy of the Analysis of Market and Financial Factors for the Pinewood Golf Course
prepared by McMurchie Golf Management, Inc. Mr. McMurchie will make a presentation to the City
Council and will be prepared to answer questions regarding his analysis. Parks and Recreation
Director Bill Maertz worked with Mr. McMurchie on gathering information for the analysis, and he
will be also be prepared to answer questions from the Council.
The Letter of Intent authorized by the Council for the purchase of this property offers a purchase
price of $2.4 million over five years at five percent interest with a $500,000 down payment if the
appraisal indicates that the property is worth $2.4 million. A copy of the Letter of Intent sent to Mr.
Krause is attached for your reference. The Council previously received some information on
possible funding sources, but no action was taken to specify which funds would pay for the
purchase. If the purchase proceeds, the Council needs to identify the funding source(s) for the
purchase, capital improvements (as stated in Mr. McMurchie's analysis) and possible annual
operating shortfalls.
Attached is fmancial data identifying possible sources for the down payment and the annual
payments. The biggest challenge is funding the balloon payment that is due in the fmal year of the
contract. In order to fund that payment, the Council would need to either reserve the funds now or
annually reserve funds at an amount sufficient to cover the balloon payment. As you can see, there
is currently money available in several reserve funds to fund part of the purchase. However, these
reserve funds are the likely funding source for other projects such as the library expansion, public
works expansion and remodeling, and park property acquisition and development. Plus, there will
be other opportunities or needs that come up in the next five years that would typically be funded
from these reserves. The purchase of Pinewood will significantly reduce the funds available to the
Council for other city projects.
s: \ Council\Lori\200S \Pinewood Appraisal Presentation. doc
Further, there are approximately $175,000 of capital costs that need to be incurred within the fIrst
two years of ownership. Part of this cost is to bring the clubhouse into compliance with the
American with Disabilities Act. These improvements would need to be completed prior to the city
operating the golf course. The same reserve funds used for the purchase could fund these capital
costs; the mowing equipment could be fmanced through equipment certifIcates that would be paid
through property taxes.
In addition, if annual revenues do not meet all operating costs, funds would need to be available to
offset the shortfalls. Mr. McMurchie's projections show that there is a slight income each year;
however, this may be optimistic given that the personnel expenses for the city are likely higher than
those included in the projections. If the city were to fund these defIcits similar to the way it funds
the Ice Arena defIcits, it would be part of the general fund tax levy.
In conclusion, if the Council proceeds with this purchase, funding sources for the purchase, capital
costs, and possible operating shortfalls need to be identifIed.d
s: \ Council\Lori\2005 \Pinewood Appraisal Presentation. doc
PINEWOOD GOLF COURSE
Elk River, Minnesota
ANALYSIS of
MARKET and FINANCIAL FACTORS
November 28, 2005
The City of Elk River has been engaged in discussions concerning a possible acquisition of Pinewood,
a nine hole golf course located in the northernmost portion of the community. The City has retained
McMurchie Golf Management, Inc. to provide analysis of the existing golf course operation and the
dynamics of a potential acquisition. From a review of the facility, and subsequent analysis, the
following findings are offered to assist the City regarding the feasibility of purchasing Pinewood Golf
Course.
Prepared: November 28, 2005
All inquiries regarding this document should be directed to:
McMurchie Golf Management, Inc.
AI McMurchie
1810 W. 31st Street
Minneapolis, Minnesota 55408
(612) 825-4285
FACILITY DESCRIPTION
Pinewood Golf Course lies on the northern border of the City of Elk River, a town of just over 19,000
people located in Sherburne County on the extreme northern edge of the Minneapolis/St. Paul
metropolitan area. The golf course is a nine hole executive length course on approximately 27 acres of
land. Course length ranges from 1,497 to 1,832 yards with a par of 30.
A site visit on November 16, 2005 was limited by poor winter weather conditions. However, the golf
course appeared to be modern in design with small greens, small tee stations with two (2) platforms on
some holes, and no observable bunkering.
The small size of the site may create ball flight problems on several of the holes on the boundaries of
the property. Ball flight into neighboring properties and roadways on holes #2, #3, #4, #5, #6, #7, and
#8 may be problematic but was difficult to determine during the site visit. If ball flight problems are a
problem from any of these holes, due to the small configuration of the property no reasonable solution
exists either in terms of hole redesign or barrier construction.
Turfgrass condition was unobservable due to snow cover but was reported to be good. A Toro single
row irrigation system installed approximately 20 years ago at the time of course construction covers the
nine holes. The irrigation water source is adequate with the overall system supplied directly by a well
and 160 gallon per minute pump system.
A pole barn of approximately 1,350 square feet serves as an adequate maintenance facility. No
specialized facility exists for either gasoline storage or pesticide storage.
The inventory of maintenance equipment must be considered dated with the majority of day-to-day
cutting equipment five (5) to ten (10) years old or older. Turf cutting equipment including greensmower,
fairway mower, and rough mower will be due for replacement in a two (2) to three (3) year period.
Other equipment pieces including tractor with front end loader, teemower, utility vehicles, and sprayer
attachment are all past industry replacement standards in terms of either age or hours used. Equipment
such as aerator, top dresser, and fertilizer spreader are not part of the observed equipment inventory.
A clubhouse consists of approximately 1,700 square feet and is dated in its decor. A golfer check-in
area with counter and snack sales occupies the front section of the building with a small area for tables
and chairs. Two (2) small rest rooms, men's and women's, are towards the rear from the counter area
and are not handicap accessible. The building also contains a simple party room accommodating
between 30 to 40 people toward the rear. The parking lot is adequate in size and is in fair condition
but will require seal coat and crack repair in the near term.
Overall the physical viability of this golf facility can be rated as good. Any potential new operator
would need to be aware of the following physical limitations:
1. The size of the site and proximity of neighboring properties may cause problems in the areas of
ball flight and trespassing pedestrian traffic.
2. There is no available land for driving range expansion.
3. The clubhouse will require some level of investment in order to update its decor and comply with
ADA requirements.
4. Golf course items such as maintenance equipment and irrigation system are nearing the end of
their useful life and represent significant investments in the next two (2) to ten (10) year period.
1
MARKET ANAL VSIS
On a national basis in 1990 there were 11,178 golf courses for 23 million golfers. By 2003, course
supply had increased to 14,827 or 32 percent with the majority of that increase coming in daily-fee
facilities. Meanwhile, the number of golfers rose to 27.4 million, just 15 percent. Rounds per year in the
U.S. have shrunk from the all time high of 518 million in 2000 to 495 million in 2003. The chart below
illustrates the national golf market trend through the early 2000's:
Demand 2000 2001 +/- 2002 +/- 2003 +/-
Golfers (in millions) 25.4 25.8 2% 26.2 2% 27.4 5%
Rounds (in millions) 518.4 518.1 (0%) 502.4 (3%) 494.9 (1%)
Supply
18 Hole Equivalents 14,268 14,549 2% 14,725 1% 14,827 1%
Source: National Go. Foundation
Within the Minneapolis/Saint Paul metropolitan area, demand and supply factors have caused a
parallel downturn in the golf market. Metro population growth from 1990 to 2004 increased by 567,000
people or 22 percent. The metro supply of golf holes meanwhile increased by 954 holes or 44 percent.
Supply has clearly out paced demand in the market causing less rounds available per golf course.
In addition, a significant portion of metro population growth has occurred in minority segments that
are characterized by low golf participation rates. Also as the area population ages, there will continue
to be more senior golfers in the market. This segment by nature demands discounted senior rates
making the protection of core green fees more and more problematic.
On the supply side, private owners of public golf courses in the metropolitan area will continue to take
advantage of rising land values, liquidating their golf businesses and selling the land for residential or
commercial development. Government units will be largely unable to stop these transactions from
either a legal or financial perspective. In addition, development of new golf courses by both the private
and public sectors has ceased due to market factors, land costs, and financial challenges. As a
consequence, the metro golf market is experiencing a decrease in the supply of public courses.
While the condition of the national and metro golf markets has declined, the condition of the localized golf
market is more critical for the future of this golf course investment. The chart below summarizes key
local market data for the City of Elk River and Sherburne County:
City of Elk River 2000 2005 +/- 2010 +/- 2020 +/-
Population 16,447 19,112 16% 21,611 13% 26,313 22%
Sherburne County
Population 62,797 75,890 21% 86,350 14% 105,630 22%
Households 21,581 26,020 21% 30,530 17% 38,920 27%
Age-5to19 16,370 18,450 13% 19,660 7% 22,620 15%
Age - 60 to 79 4,964 6,210 25% 8,270 33% 14,430 74%
Source: Minnesota Decartmenl of Plannino
Population growth is the main indicator of future demand for golf. With the projected growth.trends
shown, this market area must be considered excellent for future golf participation. In addition, forecast
growth in the senior and junior golfer age groups is also an excellent indicator for this profile of golf
facility. By 2020, the 60 to 79 age bracket will increase by 8,220 potential senior golfers and comprise
close to 14 percent of the overall county population. The number of potential junior golfers also
increases in the time period by 4,170, comprising 21 percent of the population in 2020.
2
OPERATING PROJECTIONS
Audited financial statements for previous years of operation were not available for analysis.
To determine the value of Pinewood as a golf course business, a projection of future net operating
income is necessary. The projections depicted in the following chart assume three (3) percent growth in
the facility's financial performance. This conservative growth assumption is based on stabilizing round
volume at 18,000 rounds annually, 10 percent below the facility's previous peak volume performance
of 20,000 rounds. In addition, the following assumptions were utilized for the projection:
1. Golf car rental revenues assume 20 percent ridership beginning at current rate of $11 per car rental.
2. Food and beverage sales are projected at $1.50 per golf visit (round).
3. Clubhouse personnel expense projected as:
200 day season @ 12 hours/day = 2,400 hours @ $12/ hour = $28,800 ($30,000 rounded)
4. Golf course. maintenance expense projected as:
Maintenance Supervisor: 40 weeks @ 40 hours/week = 2,400 hours @ $20/hour = $32,000
Laborers: 3 laborers @ 20 weeks @ 20 hours/week = 1,500 hours @ $1 O/hour = $15,000
5. Payroll taxes and benefit costs are projected as 25 percent of total personnel expense.
6. Food and beverage cost of sales equals 50 percent of projected sales.
7. Merchandise cost of sales equals 85 percent of projected sales.
projected Projected Projected Projected Projected
Assumption 2006 'J!Xfl 20CB 2009 2010
REVENUE
Rounds 16,000 16.soo 17,000 17,500 18,000
Average Green Fee 3.0"10 $10.50 $10.81 $11.14 $11.47 $11.82
Green Fee Revenue 168,000 178,448 189,371 200,789 212,721
Golf Car Rentals 3.0"10 18,000 18,540 19,096 19,669 20,259
Food & Beverage Sales 3.0% 24,000 24,720 25,462 26,225 27,012
Merchandise Sales 3.0"10 5,000 5,150 5,304- 5,464 5,628
TOTAL REVENUE 215,000 226,858 239,233 252,147 265,620
OPERATING EXPENSE
Personnel-Clubhouse 3.0"10 30,000 30,900 31,827 32,782 33,765
Personnel-Maintenance 3.0"10 47,000 48,410 49,862 51,358 52,899
Payroll TaxeslBenefits @25% 3.0"10 19,250 19,828 20,422 21,035 21,666
Total Personnel 96,250 99,138 102, 112 105,175 108,330
Clubhouse Other Expense 3.0"/0 30,000 30,900 31,827 32,782 33,765
Maintenance Other Expense 3.0"10 50,000 51,500 53,045 54,636 56,275
Cost of Sales 3.0"10 16,250 16,738 17,240 17,7Sl 18,290
Total Other Expense 96,250 99,138 102,112 105,175 108,330
TOTAL OPER. EXPENSE 192,500 198,275 204,223 210,350 216,660
NET OPERATING INCOME 22,500 28,582 35,010 41,797 48,960
NET OPERATING MARGIN 10% 13% 15% 17% 18%
Due to current market factors, significant revenue performance is limited due to flat demand for rounds
and by probable market resistance to significant rate increases. The resulting net operating income
prediction is in the range of $22,000 to $48,000 for the near term. Projected margin performance is
stabilized at 18 percent, approximating the industry average for comparable nine hole facilities.
3
SUPPORTABLE PURCHASE PRICE
The following chart illustrates the method required to calculate a supportable purchase price. Financing
is based on a 20 year amortization period with five (5) percent interest.
NET OPERATING INCOME
YEAR
2006
2007
2008
2009
2010
N.O.I.
$22,500
$28,582
$35,010
$41,797
$48,960
FINANCING ASSUMPTIONS
Debt.Coverage Ratio
Amortization Period
Interest Rate
Finance Closing Cost
Short Term Investment Rate
Operating Reserve
Annual Loan Amortization Rate
1.3
20.00
5.00%
$47~000
5.00%
$50,000
0.0802425
SUPPORTABLE LOAN AMOUNT
Stabilized N.O.!. - 2010
Coverage Ratio
Income Available for Debt Service
Annual Loan Amortization Rate
Supportable Loan Amount
Rounded
48,960
1.3
37,662
0.0802425
$469,347
$470,000
SUPPORTABLE PURCHASE PRICE
Less:
Finance Closing Cost
Reserve for Operating Shortfalls
Add:
Reserve Interest Income (Year 1)
(47,000)
(50,000)
Supportable Purchase Price
Rounded
2,500
(94,500)
375,500
$375,000
Net Deductions
Based on the stabilized net operating income projection, the project has a supportable loan amount of
$470,000 (rounded). After deductions for closing costs and the establishment of an operating reserve,
the supportable purchase price is $375,000.
4
CONCLUSIONS
As the purchase of Pinewood Golf Course is contemplated by the City of Elk River, the City must be
aware of the following factors that limit the value of the property as a golf business.
1. Market Conditions. Analysis of both national and local market characteristics indicates a
combination of declining participation rates, declining rounds played, and a correction to golf course
supply in its beginning stages.
2. This type of golf'facility draws from a relatively small localized market only. The majority of
golfer visits will come from within the local community or immediate border community. Golfers
participating on a short length nine hole course will tend to limit their travel time to fifteen minutes or less.
3. Executive length golf courses appeal to beginner and intermediate level golfers who tend to
participate .on good weather days only. In a typical season, the number of effective business days for
an executive length nine can be 20 to 30 percent less than that of a full length eighteen hole golf course.
4. By nature, the business size of a short length nine hole golf course is limited due not only to
volume factors but to localized resistance to rate increases. Further, this golf course will become more
and more reliant on senior age golfers into the future. In order to attract and retain this category of golfer,
discounting rates in the range of 10 to 20 percent is. inevitable. As a consequence, the average rate
achieved may very well decrease over time with no appreciable upside to round volume.
5. Revenue from ancillary businesses is also very limited. No driving range, or space for a driving
range exists on this property. With a short length course and minimal terrain challenge, demand for golf
car rentals is minor. Food and beverage sales are confined to basic snack and beverage items due to
the short length of the average golfer visit.
6. Required Property Improvements. Beyond the supportable purchase price of $375,000, the
City would need to be aware of an additional $175,000 of equipment replacement and property
improvements necessary in the next three (3) year period:
CATEGORYJlTEM QUANTITY ESTIMATED COST TOTAL
GOLF COURSE
Irriga1ion system Upgrades 30,000 30,000
MAINTENANCE EQUIPMENT
Triplex Mower with Reels 1 25,000 25,000
Fairway Mower 1 35,000 35,000
Heavy Weight Utility Vehicle 1 20,000 20,000
Sprayer AtIachrnent 1 15,000 15,000
UghtWeight UtiHlyVehicle 1 5,000 5,000
Turf Aerator 1 20,000 20,000
CLUBHOUSE
Pal1<ing Lot Seal CoatICrack Repair 5,000 5,000
Interior Upgrades 20,000 20,000
TOTAL IMPROVEMENTS $175,000
5
7. Replacement cost. The City must also be aware of the probable development cost of a new
facility of similar size and scope. A sample development budget for a comparable executive length nine
hole golf course including a driving range is depicted by the following chart:
CATEGORVnTEM COST
DEVELOPMENT COSTS
l.arD Ao;:J.jsiIicn 35 Acres @ $20,000 per Acre 700,000
Loan Closing Expense 150,000
Consbu:Iion Interest 150,000
Ca1stru::tion 8cncirg 1.25% 21,000
DEVELOPMENT COSTS - SUBTOTAL 1,021,000
GOLF COURSE
Penrilling 20,000
ArcIitec:tiEngi 100,000
Mobtliza1icnlSile Preparation 100,000
Exc:avaIiInGracing 150,000
Drai1age 50,000
FeaILr'e Constn.dion 200,000
Irrigation System 250,000
Cart PalhslOlher S1rucIures 50,000
Driving Range ConslnJcti6n 100,000
Grow-inlMaturation 150,000
GOLF COURSE - SUBTOTAL 1,170,000
CLUBHOUSE
Cli:lhouse Consbu:Iion 1,800 square feet @ $200 per square foot 360,000
Palking l.otIRoadway 100,000
~ 20,000
Fumilure, FlXIures, & Equipment 30,000
CLUBHOUSE - SUBTOTAL 510,000
MAINTENANCE FACILITY
Maintenance Buiking 1,500 square feet @ $100 per square foot 150,000
Maintenance ECJJipment 200,000
MAINTENANCE FACILITY - SUBTOTAL 350,000
START-UP COSTS
Pre-Opening Malketing 15,000
Golf Course FIXIures 10,000
Driving Range Equipment 15,000
Inventories 15,000
Projecl~ 5.00% 155,000
START-UP COSTS - SUBTOTAL 210,000
TOTAL DEVELOPMENT COST 3,261,000
This budget represents a fully developed government unit golf course and driving range that in
the end would be superior in quality and design to the existing Pinewood Golf Course. Combining the
purchase price and required property improvements for Pinewood, the City would need to invest
approximately 2.6 million as a minimum in order to own and operate this existing facility. The gap of
$660,000 between a new course and a used course may prove to be minor in the long term when
considering the business value of a driving range component on the potential new facility.
6
13065 Orono Parkway
Elk River, MN 55330
November 14, 2005
Mr. Paul Krause
18099 Judicial Way North
Lakeville MN 55044-7105
Re: Letter of Intent
1400 182nd Avenue NW .
Elk River, Mn.
Outlots A and B Pinewood Addition,
and related personal property and equipment (Property)
Dear Paul:
The purpose of this letter is to set forth the basic business terms under which The
City of Elk River, a municipal corporation ("Purchaserll) is willing to enter into an
agreement to purchase the Property from Paul Krause ("Sellerll). Notwithstanding
anything in this letter to the contrary, it is understood that there will be no binding
agreement between the Seller and Purchaser regarding the sale of the Property unless
and until the parties have executed a definitive purchase agreement.
The proposed terms of the sale are as follows:
1. Purchase Price. The purchase price is $2,400,000.00, payable as follows:
$500,000 at closing including earnest money
$200,000 per year under a Contract for Deed at 5% interest, with the balance
due in a balloon payment at the end of the fifth year.
2. Appraisal. Purchaser's obligation to enter into a purchase agreement with
Seller is expressly conditioned upon Purchaser obtaining, prior to the the
execution of a purchase agreement, an appraisal satisfactory to purchaser in
its sole discretion, indicating that the Property is worth $2,400,000.00 or
more.
Phone: 763.635.1000
Fax: 763.635.1090
www.cLelk-river.mn.us
- 1 -
Page 2
3. Earnest Money. Upon execution of a purchase agreement, Purchaser would
deposit with Escrow Agent (as hereinafter defined) earnest money in the
amount of $25,000.00 (which, together with all interest earned thereon, is
referred to herein as the "Earnest Money" ). The purchase agreement would
provide that the Earnest Money would be delivered to the Seller at closing
and credited against the purchase price. It also would provide that in the event
Purchaser were to default under the purchase agreement, Seller's sole remedy
would be to retain all Earnest Money as liquidated damages.
4. Escrow. The transaction would close through a mutually acceptable title
insurance company ("Escrow Agent"). Escrow Agent would also issue to
Purchaser a title insurance policy, subject to the Contract for Deed at
closing.
5. Inspection Period. After execution of the purchase agreement, Purchaser
would have a period of thirty (30) days to investigate, perform tests and
approve the environmental and physical condition of the Property. Purchaser
and its agents would have the right to enter onto the Property during the
inspection period, for the purpose of performing, at Purchaser's expense,
such tests, investigations and inspections as it deems appropriate. Purchaser
would be obligated to repair ariy damage caused by such tests, investigations
and inspections. If the environmental or physical condition were
unsatisfactory to Purchaser in its discretion, it would have the right to
terminate the purchase agreement and have the Earnest Money refunded to it.
6. Time of Closing. The closing would occur on the first business day which is
at least Five (5) days after expiration of the inspection period.
7. Closing Documents. At the closing, the Seller would convey to Purchaser
title to the Property subject to a Contract for Deed, using the appropriate
Minnesota Uniform Conveyancing Blank calling for a warranty deed subj ect
to no mortgages or other liens, easements, covenants, conditions, restrictions,
or other title defects except those defects which may be approved by
Purchaser in accordance with the purchase agreement. At the closing the
Seller would also deliver to Purchaser a Certificate of Real Estate Value, a
warranty bill of sale for any personal property or equipment, such other
affidavits and other closing documents as are customary.
8. Title Insurance Policy and Survey. Purchaser would be responsible for
payment of the premium for any title insurance it elects to purchase. The
Seller would pay the cost of preparing the title insurance commitment.
9. Prorations/Closing Costs. Any real estate taxes payable in the year of closing
would be prorated between Purchaser and Seller as ofthe date of closing. The
Seller would pay any special assessments which have been levied or are
pending as of the date of this letter. The Seller and Purchaser would share
escrow and closing fees equally. The Seller would pay the state deed tax at
the end of the Contract for Deed.
Page 3
10. Representations and Warranties. The purchase agreement would contain
customary warranties and representations by the Seller concerning the
Property.
11. Contingencies. Purchaser's obligation to close would be contingent on the
following:
1. Purchaser having determined that the environmental and physical
condition of, and condition oftitle to, the Property is acceptable to it
(See No.5 and 7 above).
12. Brokerage Commissions. Purchaser and the Seller would each warrant to the
other that it has not dealt with any broker in connection with the transaction.
Each party agrees to indemnify and hold harmless the other party from any
brokerage commissions or fees due to any broker as a result of the
indemnifying parties actions.
It is understood that this letter is non-binding and neither the Seller nor Purchaser
will be under any legal obligation to the other to sell or purchase the Property unless
and until a purchase agreement in form and substance satisfactory to each of them has
been executed.
If Seller is willing to proceed on the terms outlined in this letter, please so advise me
in writing and we will instruct Purchaser's attorneys to prepare a purchase agreement
for consideration.
Sincerely,
~^~
Stephanie Klinzing
Mayor
THE CITY OF ELK RNER
ACCEPTED BY:
Paul Krause
Summary of Select Special Revenue Funds
November 2, 2005
Balance Annual
Fund Available Revenue Comments
Library $ 350,000 $ 98,000 Host Fee
Park Dedication 1,481,000
Landfill Construction Debris 209,000 Surcharge based on volume
(1/3 of total as allowed by law)
Government Building Reserve 609,000 487,000 Host Fee
RDF Plant Reserve 429,000 110,000 Per agreement. Last payment per agreement is 2009
Capital Outlay Reserve Host Fee 590,000 243,000 Host Fee
Total $ 1,837,000 $ 840,000
Notes:
Host Fee is based on average current monthly collections. The fee is volume based and will end when
the existing landfill is full or expansion occurs. This is not a guaranteed revenue.
Landfill Construction Debris is volume based. The annual revenue varies considerably.
Government Building Reserve balance is net of $563,000 for approved 2005 Public Works Master Plan improvements
and $200,000 reserved for major building maintenance and repairs.
RDF payments not already dedicated elsewhere total approximately $450,000 through the end of the agreement.
Pinewood Golf Course
Estimated Amortization Schedule per Letter of Intent Dated November 14,2005
Purchase Price
Down Payment
Principal
Annual Interest
Term (years)
$ 2,400,000.00
500,000.00
1,900,000.00
5.00%
5.0
Beginning Total
Principal Interest Principal Annual
Year Balance Due Due Payment
1 $ 1,900,000.00 $ 95,000.00 $ 200,000.00 $ 295,000.00
2 1,700,000.00 85,000.00 200,000.00 285,000.00
3 1,500,000.00 75,000.00 200,000.00 275,000.00
4 1,300,000.00 65,000.00 200,000.00 265,000.00
5 1,100,000.00 55,000.00 1,100,000.00 1,155,000.00
$ 375,000.00 $ 1,900,000.00 $ 2,275,000.00 I
S:\FINANCE\GolfCourseContract for Deed
12/1/2005