City council
approves 5-year agreement with Prom Management Group
As a boy, Bill Given of Prom Management Group, Inc. played
golf at Como. As a man, he and his brother will be running things.
St. Paul has reached a five-year agreement with Prom
Management Group to manage both Como and Phalen golf courses. The city council approved
the agreement at its Jan. 22, 2014 meeting on a 4-3 vote, with Councilmember
Bostrom, Councilmember Thune and Councilmember Tolbert voting against it.
“I am most excited to see this new adventure become
successful and profitable for both our company and the city,” said Bill. “If we
can accomplish this, and provide exemplar customer service and products, this
will be a win for everyone, including those who pay taxes in the city and do
not play golf.”
TIES
TO ST. PAUL
Bill and his brother Tom were born and raised in St. Paul.
“We have a very rich history in St. Paul, spanning more than three
generations,” stated Given.
The company began in the 1940s when their father, Harry
Given, visited the original Prom Ballroom on University Ave. to do advertising
and promotion for the popular dance hall. After a few years, Harry became the
general manager, and eventually the owner.
During the late 1980s, Tom and Bill brought the company from
their father and shifted it into catering, event management and concessions
operations. They operated out of the Prom Expo Center on Smith Ave. in St.
Paul, and became involved in the catering aspects of local and national PGA
tournaments. As the business grew, they expanded into a new 40,000-square-foot
facility in Oakdale.
Today, Prom Management Group caters to over 30 golf
tournaments nationwide, including: PGA TOUR, Champion’s Tour, USGA National
Championships, the LPGA Tour, the U.S. Open, U.S. Women’s Open, THE PLAYERS,
The Presidents Cup and the 3M Championship- TPC of the Twin Cities in Blaine,
Minn.
“We took over Theodore Wirth in Minneapolis and Columbia in
Minneapolis seven years ago, and have doubled the food and beverage revenues in
that time,” noted Bill. “We have expanded food options, specials, beverage
options, as well as service and catered offerings that the patrons never had
previous to our arrival.
“Many years ago, we did the same at Keller Golf course, and
we have been very successful at that venue for 28 years.”
A
NEW BUSINESS VENTURE
Como will represent a new business venture for Prom, as it
will be the first time they have managed tasks outside food and special events,
but the Givens are looking forward to the prospect.
“This is a natural expansion of our golf interests, and a
platform that we believe will have many more opportunities,” said
Bill. “We believe we can deliver a better customer service experience for
our patrons, expand menu and food and beverage options, and still produce a
profit. I am most excited about the structure and development of this new
business segment.”
AGREEMENT HELPED CITY KEEP AAA RATING
Prom will assume total financial responsibility for losses or
gains at the golf courses. Prom will pay the city 4% of gross revenues from
both courses, with a minimum guaranteed amount of $65,000 (regardless of
performance). The city’s total annual payment will increase from the minimum
annual guarantee if gross revenues totaled more than $875,000 at Phalen, and/or
$750,000 at Como, in a season.
Prom will be required to provide the city with monthly
financial performance statements and an annual financial report.
While Prom will set the rates at the golf courses, the city
will have final approval.
Prom may use the current city-owned turf maintenance
equipment and furniture, fixtures and equipment at each course, but will be
responsible for repairing and maintaining it.
The city will contribute $30,000 per course each year for
capital improvements. Meanwhile, Prom will spend $10,000 per course for the
first three years, and $20,000 per course for the remaining two years.
The city will continue to operate the ski program at Como and
the cross-country grooming at Phalen during the winter.
About 20 full-time unionized public employees who work at the
Phalen and Como courses will be affected by this agreement. Most will be reassigned
to work at the Highland courses filling positions previously being held by
temporary/seasonal/out of title workers. The staff that are impacted have been
officially notified of any changes to their existing positions, and only a few
will not have a position, pointed out Brad Meyer of the Parks and Recreation
Department. Some opted to retire. The city will eliminate all operating
liability, and after all expenses are factored in, the net benefit of the
agreement will be in the range of $400k annually.
The city’s golf deficit grew to more than $7 million in 2013.
According to parks and recreation staff, getting this draft agreement in place
and eliminating the operating liability at Como and Phalen were essential to
maintaining the city’s AAA credit rating.
“So this agreement with Prom that eliminates losses and
allows the courses to stay open with enhanced food and beverage options is the
best case scenario in this situation,” said Meyer.
PLANS
FOR CHANGE
The Givens believe they can do a better job than the city at
running the golf courses, in part because they will be able to promote more
events (such as weddings, golf tournaments, etc..), and drive revenues in
a way that a city can’t.
Prom plans to get liquor licenses in order to give patrons
more choices and keep the golfer after their rounds.
“We also plan to offer some new pricing options to try to
fill open tee times,” said Bill.
The Givens expect challenges. “Both courses will always be
challenged with weather – it’s obviously one thing we cannot control,” said
Bill.
Additionally, the clubhouse configuration and space at Como
is not ideal for promoting any catering or even expanding food and beverage
service. However, the Givens intend to add outside seating and
furniture that is rain resistant, and improve options on the beverage carts to
counteract these negatives.
Because Como does not have a driving range, the Givens know
that expanding golf to the public and trying to gain new golfers will be
difficult.
“As you know, the golf population has been shrinking over the
past 10 years. We are going to try to make the experience easier, less
stressful, and more enjoyable,” said Given.
This story was printed in the February 2014 edition of the St. Paul Monitor.
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