Appropriating additional funds for Elbel Golf Course $68,00.00

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Pete Buttigieg, Mayor Mr. Tim Scott, President South Bend Common Council 4th Floor County -City Building South Bend, IN 46601 Executive Director Phillip L. St. Clair RE: Ordinance approving the sale of Elbel Golf Course, 26595 Auten Road Dear President Scott: Please find, attached for the Common Council's consideration, an ordinance supporting the South Bend Parks Board Resolution 03 -2015 for the disposition of Elbel Golf Course ( Elbel). The Parks Department has taken the necessary steps to survey and subdivide the property to maximize Elbel's potential value to the city. All proceeds from the sale of Elbel would be deposited into the Parks Department's funds to be used for improvements at other Parks facilities throughout the City. As you know, Elbel has been owned and operated by the City of South Bend Parks Department for over 50 years, even though it has remained beyond city limits. As golf trends have continued to decline nationwide and in South Bend, Elbel has operated at a net loss over the past 5 years, with some years as high as $92,000 of taxpayer subsidy. This operating loss does not include the capital investments necessary to maintain the course. However, simply comparing what $92,000 could provide the department is useful. The Department could provide up to 3 basketball courts or one large new splash pad with that $92,000. To better serve the community and invest taxpayer dollars more effectively, the Parks Department hopes to move on a swift timeline to complete the transition from public to private ownership before the 2016 golf season begins in earnest. In response to concerns from the golfing and conservation communities, the Parks Department will require that Elbel be maintained as a golf course for 5 years and that potential bidders outline their environmental conservation history, as well as their wetland preservation / protection plan for the property and surrounding wetlands. This will limit any adverse impacts on the local golfing community or to the wetlands surrounding the course. Informed by an appraisal process in 2015, the Parks Department will list the minimum bid for Elbel at $750,000.00. Receiving bids in early March of 2016, it plans to close the transaction by mid -May 2016, just in time for the primary golf season to start. During the process, staff considered many potential uses for Elbel. While bids for alternative uses of the 300 acre site could be higher, the total value to the city and public would likely be lower due to the cos � 321 East Walter Street - South Bend, Indiana 46614 - 574 - 2994765 Parks Administration Fax 299 -4783 - Recreation Fax 299 -4784 0