HomeMy WebLinkAbout1991.07.09_OPGA Minutes_SpecialOWASSO PUBLIC GOLF AUTHORITY
MINUTES OF SPECIAL MEETING
Tuesday, July 9, 1991, 5:30 p.m.
Owasso City Hall Conference Room
MEMBERS PRESENT
Bob Oldefest
Tom Rikkola
Glenna Anderson
Brian Skelton
Ed Sokolosky
STAFF PRESENT
Marcia Boutwell
Sherry Lambert
Rodney Ray
Ron Cates
Steve Compton
The Owasso Public Golf Authority met in special session on Tuesday, July 9, 1991 at 5:30 p.m.
in the Owasso City Hall Conference Room per the Notice of Public Meeting posted on the City
Hall bulletin board at 4:00 p. rn. on Wednesday, July 3, 1991.
ITEM 1: CALL TO ORDER
Chairperson Bob Oldefest called the meeting to order at 5:35 p.m. and declared a quorum
present.
ITEM 2: REQUEST APPROVAL OF THE MINUTES99
Tom Rikkola moved to approve the minutes of July 1, 1991 as written; seconded by Brian
Skelton. Motion carried 5-0.
STUDYITEM 3: REVIEW, DISCUSSION. AND APPROPRIATE ACTION ON FEASIBILITY
Steve Gilbert of Coopers & Lybrand presented the Draft Report of the Golf Course Facility
Feasibility Study using official figures supplied to Coopers & Lybrand by Blue T Golf. The
estimated total cost of the golf course project is $6,835,000. Operating capital of approximately
$532,281 will be required to fund cash flow deficits each year in the early years of operation
of the golf facility. Using the operating assumptions and pro -forma financial statements
contained in the feasibility study, the course does not provide adequate revenue to support the
debt service coverage ratios required by Stern Brothers. The financial forecast indicates that
sufficient funds cannot be generated to meet the golf facilities operating expenses, working
capital needs, and other financial requirements, including lease payment requirements associated
with the proposed $6 B359000 note, during the forecasted periods.
The Authority officially received the report from Coopers & Lybrand. No formal action was
taken on the draft feasibility study.
Owasso Public Golf Authority
Minutes of July 9, 1991
Page 2
ITEM 4: GENERAL DISCUSSION AND APPROPRIATE ACTION RELATING TO THE
PRELIMINARY AGREEMENT AND CONTRACT BETWEEN THE OPGA
AND BLUE T GOLF
Mr Ray & Mr Cates discussed with the Authority the preliminary agreement between OPGA and
Blue T Golf and it's relationship to the feasibility study. Also discussed was the relationship
between Blue T Golf and the course architect. After a lengthy discussion, and with staff
recommendation, Tom Rikkola moved to terminate the preliminary agreement with Blue T Golf,
Inc for the following reasons:
1. The financial forecast (feasibility study) indicates that sufficient funds cannot be
generated to meet the golf facilities operating expenses, working capital needs, and other
financial requirements, including coverage requirements of Stern Brothers as well as
lease payment requirements associated with the proposed $6,835,000 note, during the
forecasted periods;
2. The project will have to be bid to meet the legal requirements of the Oklahoma
state bidding law and to retain tax exempt status;
and to authorize staff to initiate negotiations with Blue T Golf to obtain the services of the
course architect and the architectural drawings of the course completed to date.
Motion seconded by Ed Sokolosky. A vote on the motion was recorded as follows:
Tom Rikkola - yes
Ed Sokolosky - yes
Glenna Anderson - yes
Brian Skelton - yes
Bob Oldefest - yes
.h t
Tom Rikkola moved, seconded by Brian Skelton to adjourn. Motion carried and theeting
was adjourned at 6:50 p.m. / Z
R E Oldefest, Chairpeon
Marc Boutwell, Authority Secretary