Longtime St. Paul company to run Como Golf Course

City council approves 5-year agreement with Prom Management Group 

by Tesha M. Christensen

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.

St. Paul considers private management of Como Golf Course

League members and residents have mixed feelings about proposal

by Tesha M. Christensen

St. Paul is considering partnering with a private company to run Como and Phalen golf courses starting next year.

It’s a move the golfers at Como have mixed feelings about.

“Members have concerns about how a private manager would work with the Men’s Club,” said Como Men’s League Board Member Gary Ketchel. Among the questions are: will the condition of the course remain is it is, or will new managers cut corners maintaining the grounds to save money? “Like any change there will always be apprehension and there is plenty of that here,” Ketchel stated.

“Others feel like it could be just what Como needs to remain viable and be here for future generations,” he added.

Como Women’s League Club President Kathy Zieman questions how the city is going to save money by going with an outside management company.

“By contracting out the operation and management of Phalen and Como, the city will shift the risk and expenses to a private vendor,” explained city employee Brad Meyer.

In addition to removing the risk of loss, the city would also ask for a share of the profits. Plus, the city intends to ask vendors to make their own private investment into the required capital needs at the courses.

“Without this private vendor option, the city would be required to start subsidizing golf from the general fund for almost $1 million a year to keep the courses open (which is not a core value of the city),” pointed out Meyer. “This subsidizing would almost certainly impact other hard hit areas of the Parks and Recreation budget (like recreation centers) or require the courses to close, which is not something the department would like to pursue.”

CITY GOLF COURSES LOSING MONEY

Over the last 5 plus years, expenses at the city’s four golf courses have exceeded revenues by at least $600,000 annually (including more than a $1 million this year), according Meyer.

This year, Como is expected to lose $300,000. The number of people playing golf has gone down. This year was especially difficult at Como because the course opened a month later due to poor weather conditions. Golf rounds have decreased almost 27% since 2005, according to St. Paul Special Services Manager Susie Odegard.

“After reviewing the current marketplace and the experience of other municipalities, going out to the marketplace is the only option that will allow for continued services at the courses,” said Odegard.

“Losing $600,000 plus for more than 5 years is not sustainable. Ramsey County was in a similar situation, but now after a few years of operating within this model, the risk of loss is gone, and opportunities for profit are exponentially better,” said Meyer. “We are hopeful that we can experience a similar trajectory.”

PRIVATIZATION GROWING TREND

Ketchel pointed out that privatization of municipal courses is a growing trend in the industry. “In the old days, when golf was very popular, municipalities with golf courses made money almost by accident,” he observed. 

He believes that government is opinion inherently weak when it comes to running enterprise-type operations. “This is where private management partnerships can help,” said Ketchel.

“Private management will tweak the current business model to identify and maximize all the profit potential pieces of the golf course. These things may include looking at rate structure, staffing issues, food service potential, clothing and equipment sales, advertising, etc.”

According to Ketchel, in recent years there has been a lapse in clubhouse services, such as a fully stocked Pro Shop and restaurant choices. “A private manager would most likely focus on these things not only for a profit potential, but also as services that attract golfers to the course,” he said. “Tee time sales could be improved by managing pricing better to fill open tee times at traditionally slow times of the day. Private management might do a better job of attracting and negotiating golf tournaments and leagues.”

LEAGUE MEMBERS, RESIDENTS TO BE INVOLVED

Members from the city’s parks and recreation department met with league members and local residents on Oct. 28 to discuss the Request for Proposals (RFP) process the city intends to use to solicit vendors.

“It was promised that this group would be involved in RFP reviewing and subsequent contract negotiation process,” said Ketchel. “I think this was well received by most at the meeting.”

“Input from the district councils and neighbors will be encouraged throughout the process, and we fully expect to continue active dialogues even after a vendor begins operating the courses,” stated Meyer.

St. Paul will continue to operate the successful existing winter activity programs at the courses, including cross-country ski trails and the Alpine sports program that offers ski and snowboard activities.

The city intends to reassign the 20 or so affected staff to available positions at the Highland golf courses or generally within the Parks Department. The private vendor may also opt to hire some of the displaced workers.

Personally, Ketchel isn’t concerned that this would be bad for the Como Golf Course. “At its worst the city would show no gains in profitability,” Ketchel said.

“But keep in mind that no management company is going bid on this unless they feel strongly that they can profit. Hopefully the city will do a good job vetting any company that bids on this RFP.”

During a vote on Nov. 6, City council members agreed to solicit RFPs on a 4-3 vote. “We’re spending too much now for what we’re getting,” stated District 4 City Council Member Russ Stark.

Como Golf Club members hope course will remain

St. Paul may repurpose the 18-hole golf course nestled next to zoo

by Tesha M. Christensen

What would the Como Golf Course be used for if it wasn’t a golf course?

That’s the question on the minds of the folks who play golf there.

They’ve heard that the city of St. Paul is talking about repurposing the 18-hole golf course that has been nestled next to the zoo and conservatory since 1929. Parks and Recreation has requested that the city allocate $100,000 in its 2014 budget to study the issue.

Would the space be used for more parking? Would it be park land? Would the zoo or conservatory expand? Would it be pared down to a 9-hole course?

Ask a member of either the men’s or women’s golf clubs at Como if they support repurposing the golf course and the answer is a resounding “No.”

“It would be such a sad thing to do,” said Como Women’s Club member Amy Winkel.

She added, “This is like the Central Park of St. Paul. Why would you ever get rid of this greenery? Once you get rid of a green space, you never get it back.”

Winkel pointed out hikers enjoy the paths in the summer, and in the winter people sled and cross country ski on the course.

“You lose sight of the fact that you’re in the city,” said Como Men’s Golf Club Vice President Tom Dapper. “It’s a nice little oasis. It’s just tucked away.”

The men’s and women’s clubs reserve the course on Saturdays and Sundays from 7:30 to 10 a.m., but aside from those hours it is open to the public.

WELL-LOVED COURSE

Rick Zieman lives just over the hill from the golf course, and has golfed at Como since 1974. He thinks that the zoo, conservatory and golf course function well together. “You take any of that away and you’ve wasted the whole area,” said Zieman.

He appreciates seeing seals and flamingos while he golfs, and added that 80% of the time he is at Como golfing he sees foxes. “You feel like you’re in a jungle sometimes,” Zieman said.

“I never get tired of playing here,” said Ruthie Pallow, a member of the women’s club, which will be celebrating its 80th anniversary next year.

“I love the course,” said Tom Davis, who golfs at Como with his son, Ben. “It’s so convenient.” He currently drives in from Shoreview to play at Como, but said he wouldn’t continue to do so if it were pared down to a 9-hole course.

Mike McDonald is a member at the University of Minnesota golf course nearby, but golfs more frequently at the Como course. “Como has much more character,” McDonald explained.

“Como Golf Course gives people a chance to play golf with the people in their community,” observed Como Ranger Dan John. “St. Paul is an old town and this is an old course with all the amenities you need.”

He added, “It’s a great place to learn to play golf. It’s a tough course. If you can play here, you can play anywhere.”

John doesn’t think that the city has solicited enough input from people who play golf at the course and should involve them more before any decisions are made.

THE ISSUES

Why is the city considering a repurpose of the Como Golf Course? As presented at public meeting earlier this year, golf course use is dropping and the city doesn’t feel it can operate four courses any longer.

Golf club members think that problem could be solved by lowering the prices at Como. “If the city reduced the price to be competitive with outside courses, people wouldn’t drive 20 miles,” said Zieman.

Golf club members also suggest that more marketing be done, particularly early in the season. Zieman pointed out that recently a Groupon enticed people to Como, but he doesn’t think it was as valuable as it could have been because there are only a few weeks left in the season.

A letter being distributed by Como Golf Club members suggests that the decline is cyclical and may soon improve.

According to the letter: “During these days we do dispute Como’s implied lack of viability and are disappointed by lack of effort on the part of Parks & Recreation to make concerted efforts to market and distinguish Como’s advantages from other courses in the metropolitan area. ...

“Assurances were made in spring 2012 to representatives of both this club, and those from Highland and Phalen, for implementation of innovative promotional efforts toward generating increased course use. From inquiry and observation, such actions did not occur in any notable way. We wish to see genuine efforts made in this regard before any firm decision is made on Como’s fate.”

Como golfers also question whether the debt the city owes for renovating Highland National several years ago is making Como’s financials look worse than they really are.

“We pretty much break even,” pointed out Dapper.

“I don’t think it is the performance of the club that’s the issue,” said Dapper.

He thinks that the city is getting pressured to provide more parking for the zoo.

Dapper pointed out that it is only fair that whatever else “be suggested as alternatives to the golf course be held to the same standard in terms of financial performance.”

COME ON OUT

In an effort to save the course, both the men’s and women’s golf clubs at Como are attending city and district meetings to encourage city representatives to keep the golf course as it is now. District 6 has expressed its support.

The clubs are also working to address any rumors floating around. Dapper pointed out that no decision on the golf course had been made by the city.

“We encourage people to come out here, whether to play golf or have a pop, pizza or sandwich. Sit on the deck and relax,” said Dapper.