Critiquing Lakewood’s Second New RedTail Clubhouse Meeting

I couildn’t make the meeting last night and, anyway, as I pointed out in my Monday preview article, there was nothing contained in the Village Board packet that delivered on Village President Dave Stavropoulos statement, as reported in the minutes, to

“…review financing options relative to the decision resolving the condition of the clubhouse.” [Emphasis added because nothing in the agenda packet addresses how any money to be borrowed will be financed, e.g., general obligation bonds, debt certificates, alternative bonds, etc..]

Here is a chart from Monday’s agenda packet showing the money to be borrowed:

If financed by general obligation bonds, debt certificates or alternative revenue bonds, homeowners will be on the hook if projected revenues from other sources is inadquate.

Steve Willson was kind enough to jot down his views of the meeting in a message to the Board:

To the Board:

You know, it’s a shame how this process of examining the need for a new clubhouse has proceeded.  You only needed to do four things.

  • First, show the cost of repairing the existing clubhouse.
  • Second, prove how much space you need.
  • Third, show the costs of the alternatives.
  • Fourth, show you have the money.

You finally did well enough on the first point. 

Bids would have been the best evidence, because bids would have provided a dollars-to-dollars, apples-to-apples comparison. 

Adding to the bottom line of Lakewood’s village-owned golf course this night were those watching the Black Hawk game.

The evidence provided last night was not as good as bids, not really conclusive, but it was probably good enough. 

If you’d done that up front instead of simply assuming the clubhouse couldn’t be salvaged and fighting the demand for proof, the whole process would have gone more smoothly and credibly.

As for the second point, we heard anecdotal evidence last night, but the plural of anecdote isn’t data. 

How hard would it have been to show us square footage for the current facility, what it’s used for, and what more you need? 

Based on what I saw, I would say you could probably justify several hundred more square feet, but that still hasn’t been done. 

Data, people, data!

I don’t see ANY evidence that you need 8,000 square feet, and proving that would require strong evidence that with more space there’s a very high probability that you’d have X more gatherings that would generate Y dollars. 

We’ve seen none of that, and this is a financial decision with ramifications for the taxpayers. 

As I said last night, if a hotel turns away guests a few times a year, that doesn’t prove the hotel needs to increase capacity by two-thirds. 

And the evidence from other local golf courses, which is the best evidence we have, is against you.

As for the third point, you did okay on that, but not well enough. 

$275 per square foot is optimistic compared with the costs other local governments have paid for space. 

You could have found the cost per square foot of other recent governmental buildings in the area for comps, including the cost of other municipal courses’ clubhouses. 

That would have been better evidence, and that information is readily available. 

Clearly no one sought out this information.

As for the fourth point, you finally did okay on that. 

The whole “capital fee” thing is baloney. 

Money’s fungible, and if RedTail doesn’t produce enough to cover its operating costs, then there’s a deficit, whether some money is bookmarked as dedicated to capital projects or not.

BUT, while RedTail hasn’t been profitable in the last several years (ignoring the bad year because of COVID and the good years because of COVID), it wasn’t losing much money. 

And clearly you’ve been able to raise the price per round recently and still be competitive. 

Worst case, I figure you should be able to generate $100,000 per year. 

(Using the average of 25,000 rounds is wrong.  The average is appropriate for trendless data, but the trend, until COVID, was negative.  So 25,000 rounds is probably reasonable, but 20,000 rounds is more prudent, and prudence is key when risking taxpayer dollars.)

But instead of a straightforward, to the point presentation, we got two marketing presentations, with loaded language, misleading and in some cases downright false statements, loads of bad alternatives followed by the desired conclusion, but without a chain of reasoning or evidence showing the desired alternative is really the best.

Your process cost you credibility. 

Why should we trust anything you say when you’ve made clear that you’ll feed us hogwash? 

And, by the way, attack anyone who challenges you?

Finally, I’m appalled at the “not invented here” syndrome I see. 

The best information for this project is information about the local market, and it’s readily available. 

For my research, I spoke with someone from every golf course in the area about rounds played and banquet operations. 

And I asked if any of them had ever heard from anyone at Lakewood. 

The answer was no. 

If you’d contacted them, it would have provided you with insights about how to proceed and with useful evidence. 

And, as I said above, you could have gotten better building cost data, too. 

But the whole process was insular.

You still have some work to do. 

I hope that you proceed in a logical fashion and develop the data you need to prove your case. 

And if the evidence doesn’t prove your case, I hope you’ll show that in a straightforward manner and adjust your recommendations appropriately.


Comments

Critiquing Lakewood’s Second New RedTail Clubhouse Meeting — 9 Comments

  1. Who actually profits or immediately financially benefits is the question?

  2. The argument for a new clubhouse seems to come stongest from homeowners around the golf course.

    They want someone else to pay for it, of course.

  3. Cal, I’m curious, are you advocating that Lakewood not maintain the viability of this Village asset?

    If Lakewood was to abandon Redtail, the “golf course” value of all the surrounding homes will drop and that property tax burden will be redistributed to all the home owners of Lakewood. One way or another we all end up paying.

    And selling the course to a guy that wants to disconnect from Lakewood is a terrible choice as well.

    Steve Willson should really be embarrassed that he let Phil Stephan and Jeannine Smith waste over $200,000 “renovating” trailers that were to far gone to repair without saying a word. It seems the due diligence he is looking for only applies to certain people.

  4. The value of the golf course primary accrues to the homeowners that surround it.

    That being the case, should not the beneficiaries bear the cost of keeping the club, if it is on rocky shoals?

    There is no value to Country Club Additions residents.

  5. Slapdyck, once again, asks the salient question!

    Jason, why on earth did you write this:

    “And selling the course to a guy that wants to disconnect from Lakewood is a terrible choice as well”.

  6. Cal, I know you understand how property taxes work.

    If the assessed value of the homes around the golf course drop the taxing bodies don’t take less, they simply take more from the other property owners.

    Leopard, Because selling Redtail to someone intent on fighting the Village would not be a good choice for residents.

  7. Cal would know, he specifically put this fiasco front and center.

    I believe ten years ago, when the Board tried to declare this boondoggle surplus property and sell it.

    Those surrounding homeowners Cal refers to, took over the meeting and that cowardly Board unanimously voted it down.

    Further, one of the nitwit Board Members at the time of the purchase twenty years earlier was there.

    Some Wally or Willy something or another.

    He took no responsibility as I recall but offered up another stupid opinion.

    Or am I having Smirnoff flashbacks?

  8. Actually, the Tax Cap could very well come in play, as well electoral retribution, if everyone’s taxes were increased.

  9. What the H is a “clubhouse”?

    Definitions on the internet include showers and cleaning of people.

    Why do people need showers after riding on a golf cart and swinging a golf club?

    Nowhere near as strenuous as playing tennis on a court and running around a lot, getting all sweated up.

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