HomeMy WebLinkAbout2019-4-30AGENDA
Nantucket Land Bank Commission
Special Meeting of April 30, 2019
Land Bank Conference Room, 22 Broad Street
Nantucket, Massachusetts
CALL TO ORDER: 4:00 P.M.
A. CONVENE IN OPEN SESSION:
1. GOLF BUSINESS
a. Miacomet & Sconset Golf Courses — Management Contract Extension
(2020 — 2021) Discussion
b. Miacomet Golf Course — Clubhouse Replacement Financing Discussion
c. 2019 Proposed Tournament Schedule
2. PROPERTY MANAGEMENT
a. 50 Old South Road/Discovery Playground — Budget Review
B. EXECUTIVE SESSION: The Executive Session is for Purpose 6 [G.L. c. 30A, 21(a)(6)J.
The particular transactions and parcels of real estate are not identified since disclosure
of the property information may have a detrimental impact on the Land Bank's
negotiating position with one or more third parties. The Commission will not reconvene
in open session at the conclusion of executive session.
1. Executive Session Minutes
2. Real Estate Acquisition
ADJOURNMENT
MINUTES
Nantucket Land Bank Commission
Special Meeting of April 30, 2019
Land Bank Meeting Room, 22 Broad Street
Nantucket, Massachusetts
CALL TO ORDER: 4:00 P.M.
PRESENT: Richard Glidden, Kristina Jelleme, Neil Paterson, Allen Reinhard. John Stackpole.
STAFF PRESENT: Eric Savetsky, Executive Director; Jesse Bell, Assistant Director; Susan
Campese, Administrator/Finance Manager; Marian Wilson, Assistant Administrator.
Inquirer and Mirror Reporter, Brian Bushard; Miacomet Golf Course ("MGC ") General
Manager, Alan Costa; Director of Agronomy, Sean Oberly; and Director of Golf, Bryce Huntt
were also present at call to order.
I. CONVENE IN OPEN SESSION:
A. GOLF BUSINESS:
1. Miacomet & Sconset Golf Courses ("SGC") — Management Contract Extension
(2020-2021) Discussion:
a. Management Contract Renewal Terms: Mr. Savetsky reviewed key
provisions in the management contract as well as the renewal terms regarding compensation if
the Commission voted to continue with NGM, Inc. for an additional two years. Additionally, Mr.
Savetsky reviewed specific deliverables that were itemized in the contract but not currently being
provided.
b. Management Structure Review; Golf Teaching Financial Arrangement: Mr.
Costa reported a change to the lesson income structure. He explained that teaching professionals
would earn minimum wage plus 70% of their lesson fee, and golf professionals would be
responsible for shop as well as tournament duties and would also receive a salary. as well as 70%
of their lesson income (the latter of which was minimal). Under this arrangement, MGC would
collect 30% of lesson and clinic fees which was an increase from 10% in prior years. -Mr.
Savetsky suggested that the arrangement structure should be clearly detailed and presented in
writing for Commission review. Mr. Costa agreed to provide the golf compensation terms in
writing at a future meeting.
c. Mission Vision Statement: Mr. Savetsky reviewed the Mission Vision
Statement and inquired about the need for any further changes. The Commissioners concurred
that the Mission Vision Statement should not be revised at this time.
Land Bank Commission
April 30, 2019
Page 2
Mr. Costa reviewed various logistical challenges with the construction, noting that prior to
clubhouse completion the temporary trailers would need to be removed in order to finish the site
work. Ms. Bell indicated that she would check with the Town as to where they would like it
delivered.
d. Policy and Planning Review: Mr. Savetsky reviewed a list of items
requiring attention from NGM Inc. and suggested that he assign dates to the items to create an
action plan that could be presented monthly at Land Bank meetings.
e. Contract Requirements/Areas of Concern: Mr. Savetsky provided a list of
items that need to be addressed moving forward, including an annual inventory of equipment
report, policy regarding charitable giving to local non-profit organizations, monthly and annual
rounds/covers report. Additionally, Mr. Savetsky requested that copies of membership and the
waiting list be made available for public inspection. Mr. Costa explained that many people on the
waiting list did not want their names on a public list. Commissioner Jelleme stated that this was a
public golf course and inquired as to the legalities and industry standards. Mr. Savetsky said he
would look into both questions and report back. Upon a motion made by Commissioner Glidden
and duly seconded by Commissioner Reinhard, it was unanimously VOTED to extend the
current contract to NGM, Inc., to provide management services of Miacomet and Sconset Golf
Courses for the next two years.
2. Miacomet Golf Course — Clubhouse Replacement Financing Discussion: Ms.
Savetsky provided a financial update for the estimated cost of the new clubhouse, proposing
three different repayment options for two-thirds of the cost by golf course revenues with no
interest. Mr. Costa indicated a preference for the 30 -year repayment plan. Commissioner Glidden
relayed that certain golfers felt passionately that the Land Bank, as owners of this recreational
facility, should be exclusively responsible for providing a quality golf experience for residents
and visitors. Commissioner Jelleme pointed out that no one was being assessed and no fees were
increasing to cover the cost and that each year management should budget accordingly with
recommendations for fees and expense controls. Mr. Savetsky said based on the last few years of
net profit before depreciation, the annual payback should be covered. Additionally, Mr. Savetsky
asked for recommendations for additional revenue sources and suggested management should
come back with a recommendation of how much cash was needed at the end of the year, so the
excess cash could be moved to the capital fund. Mr. Costa stated he had plans to provide more
resort amenities such as bag drop-off and pick-up services. Commissioner Jelleme expressed
concern about this plan for a public course and how it fit within the Vision Mission statement.
3. 2019 Proposed Tournament Schedule: Upon a motion made by Commissioner
Glidden and duly seconded by Commissioner Jelleme, it was unanimously VOTED to approve
the 2019 Golf Tournament Schedule as presented by Mr. Costa.
Mr. Costa, Mr. Huntt and Mr. Oberly departed the meeting at 5:22 p. m.
B. PROPERTY MANAGEMENT:
Land Bank Commission
April 30, 2019
Page 3
1. 50 Old South Road/ Discovery Playground — Budget Review: Ms. Bell
recognized the reliability and responsiveness of Jim Hughes and Holdgate Partners and the
quality of work they have provided throughout the playground project. Further, she updated the
Commission on cost overages driven predominantly by the asphalt parking lot and drainage
system. Ms. Bell further presented three options for landscaping scopes to finish the project with
varying price points of $177,879, $131,712 and $56,445. After some discussion, upon a motion
made by Commissioner Jelleme and duly seconded by Commissioner Stackpole, it was
unanimously VOTED to authorize the expenditure of up to an additional S 140,000 in Land Bank
funds to complete playground project.
Mr. Bushard departed the meeting at 5:33 p. m.
B. EXECUTIVE SESSION: Upon a motion made by Commissioner Reinhard and duly
seconded by Commissioner Glidden, it was unanimously VOTED to go into executive session in
order to discuss the purchase, exchange, lease or value of real property and review executive
session minutes. A roll call vote was taken: Reinhard -Aye, Paterson -Aye, Glidden -Ave, Jelleme-
Aye, Stackpole-Aye. The Chairman under Purpose 6 [G.L. c. 30A, 21(a)(6)] declared that
discussion of these matters in open session may be detrimental to the Land Bank's negotiating
position and that the Commission would not reconvene in regular session at the conclusion of
executive session.
ADJOURNMENT: Upon a motion made by Commissioner Glidden and duly seconded by
Commissioner Reinhard, it was uiimously VOTED to adjourn to executive session at 5:34
p.m. /
Attested to: �-
Richard J."Glidden, Secretary
Accepted, Approved, and Released by VOTE
of the Commission this 14th day of May, 2019.
i
Neil Paterson, Chairman
DOCUMENTS AND EXHIBITS
Nantucket Land Bank Commission
Special Meeting of April 30, 2019
1. Management Contract Extension Memorandum
2. Miacomet Golf Course Organizational Flow Chart.
3. 2019 Tournament Schedule
4. Clubhouse Replacement Payment Plan
5. MGC Payment Plan
6. Golf Financial Guidelines
7. Golf Capital Reserve Fund dated April 2019
8. Hindsdale Playground Budget Spreadsheet