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HomeMy Public PortalAboutGolf Commission Packet 03.23.21 Facility and Operations Review of the Captains Golf Course in Brewster, MA Prepared For: Town of Brewster 2198 Main Street Brewster, MA 02631 Prepared By: 501 N. Highway A1a Jupiter, FL 33477 (561) 744-6006 March 2021DRAFT Table of Contents GENERAL LIMITING CONDITIONS .......................................................................................... 1 EXECUTIVE SUMMARY ........................................................................................................... 2 Introduction And Purpose .................................................................................................... 2 Summary of Captains Golf Course ...................................................................................... 2 External Environment .......................................................................................................... 3 NGF Recommendations ...................................................................................................... 4 Completion of Capital Investment Considerations ........................................................................ 5 Financial Analysis ............................................................................................................... 6 Projection Results .......................................................................................................................... 6 Summary Statement ........................................................................................................... 8 SUBJECT FACILITY REVIEW – CAPTAINS GOLF COURSE ................................................. 9 Captains Golf Course Facility Overview .............................................................................. 9 Location, Access and Surrounding Elements ............................................................................. 10 Captains Golf Course Summary of Facilities ......................................................................12 Championship Golf Courses ....................................................................................................... 12 Captains GC Clubhouse .............................................................................................................. 13 Driving Range / Practice Amenities ............................................................................................. 14 Captains GC – Facility Condition and Future Capital Investment .......................................15 Property Condition Report ........................................................................................................... 15 Captains GC Capital Investment Considerations (FY2022-FY2030) .......................................... 20 Review of Golf Operations - Captains GC ..........................................................................24 Captains GC Review of Contracts ............................................................................................... 25 Captains GC Facility Staffing ...................................................................................................... 26 Review of Technology, Website and Marketing .......................................................................... 28 Golf Playing Fees ........................................................................................................................ 29 Review of Golf Carts .................................................................................................................... 31 Merchandise Operations ............................................................................................................. 32 Food and Beverage Operations .................................................................................................. 32 Captains GC Driving Range Operation ....................................................................................... 33 Programming and Organized Golf Activities ............................................................................... 34 Other Operational Observations .................................................................................................. 35 Captains GC Recent Operational Performance ..................................................................35 Rounds Played and Annual Fees at Captains Golf Course ........................................................ 35 Recent Revenue Performance at Captains Golf Course ............................................................ 38 Captains GC Expenses ............................................................................................................... 39 Summary Financial Performance (2016-2020) ........................................................................... 40 Year-to-Date 2021 Captains GC Performance ........................................................................... 41 Summary – Captains Golf Course ......................................................................................42 EXTERNAL FACTORS AFFECTING THE OPERATION OF CAPTAINS GC ..........................44 Market Overview ................................................................................................................44 DRAFT Demographic Analysis – Local Permanent Residents ................................................................ 44 Key Climate and Economic Factors ............................................................................................ 46 Golf Market Supply and Demand Indicators .......................................................................47 National Golf Industry Overview .................................................................................................. 47 Estimated Local Market Demand ................................................................................................ 49 Local Golf Supply ........................................................................................................................ 50 Golf Course Market Supply / Demand Summary ........................................................................ 51 Local Competitive Golf Market ...........................................................................................51 Competitive Public Access Golf Facilities Map ........................................................................... 52 Key Competitors – Summary Information ................................................................................... 53 Key Findings – Competitive Golf Market ..................................................................................... 56 Cape Cod Municipal Golf Operations Review .....................................................................58 Summary of Findings on Cape Cod Municipal Golf Operations ................................................. 58 Summary of Comparative Data – FY2020 .................................................................................. 60 External Factors Summary .................................................................................................61 NGF RECOMMENDATIONS FOR THE TOWN OF BREWSTER AND CAPTAINS GOLF COURSE ..................................................................................................................................62 Basic Oversight, Structure and Contracts ...........................................................................62 Structure Considerations ............................................................................................................. 62 New Food and Beverage Contract .............................................................................................. 63 Operational Recommendations ..........................................................................................63 Enhance Marketing ...................................................................................................................... 64 Better Employment of Technology .............................................................................................. 65 Recommended Fee / Pricing Changes ....................................................................................... 66 Recommendations for Increased Beginner Participation ............................................................ 66 Specific Physical Recommendations ..................................................................................67 Completion of Capital Investment Considerations ...................................................................... 67 CAPTAINS GC – PROJECTED FINANCIAL PERFORMANCE (2021-2030) ...........................68 Summary of Captains GC Projections (2021-2030) ............................................................68 Basic Assumptions ...................................................................................................................... 68 Projected Revenue and Expense Assumptions – CGC (FY2021-FY2030) ................................ 68 Estimated Future Performance - Captains GC (FY2021-FY2030) ............................................. 69 Cash Flow Results – CGC (FY2021-FY2030)............................................................................. 73 Support for Projections and Potential Mitigating Factors ............................................................ 73 Limiting Conditions .............................................................................................................74 SUMMARY STATEMENT .........................................................................................................75 APPENDICES...........................................................................................................................76 Appendix A – Golf Course Life Cycle .................................................................................77 Appendix B – National Rounds Played Report ...................................................................78 Appendix C – Local Demographic, Demand and Supply Data ............................................81 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 1 General Limiting Conditions This report is based on information collected from direct NGF research completed for the Town of Brewster (“Town”) in 2021. The assessment is based on conditions at the time of the analysis (e.g., economic and market conditions) and significant changes in those conditions may affect the relevance of the business plan. National Golf Foundation Consulting, Inc. (“NGF” or “NGF Consulting”) has not undertaken any update of its research effort since such date. Because future events and circumstances, many of which cannot be predicted as of the date of this plan, may affect the estimates contained therein, no warranty or representation is made by NGF Consulting that any of the projected values or results contained in this study will actually be achieved. Although we believe that the expectations in this report are reasonable, any or all of the estimates contained herein could prove to be incorrect. To the extent possible, the NGF has attempted to verify and confirm all estimates and assumptions used in this analysis. However, some assumptions may not materialize as a result of known or unknown risks and/or unanticipated events. Consequently, actual results achieved by any golf facility during the period covered by NGF projections may vary from our estimates, and these variations may be material. As such, the National Golf Foundation accepts no liability in relation to the estimates provided herein. To protect you and other clients, and to assure that the research results of NGF Consulting's work will continue to be accepted as objective and impartial by the business community, it is understood that our fee for the undertaking of this project is in no way dependent upon the specific conclusions reached or the nature of the advice given by us in our report to the Town of Brewster. Every reasonable effort has been exerted in order that the data contained in the written report reflects the most accurate and timely information possible, and is believed to be reliable. However, no responsibility will be assumed for inaccuracies in reporting by the client, client's agents, or any other data source used in preparing the report. The client agrees that the report is not to be used in conjunction with any public or private offering of debt or equity securities or to otherwise induce investment without the prior written consent of NGF Consulting, which may be conditioned upon client agreeing to pay an additional fee in an amount to be reasonably determined by NGF Consulting. This study is qualified in its entirety by, and should be considered in light of, these limitations, conditions and considerations. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 2 Executive Summary The following is a summary of key findings made by National Golf Foundation in its study of the Captains Golf Course. The supporting text and tables are found in the body of the attached report. Some items are repeated from the full report. INTRODUCTION AND PURPOSE National Golf Foundation Consulting, Inc. (“NGF”) was retained by Town of Brewster (“Town of Brewster” or “Town”) to assist in reviewing the operation and facility condition of the Town’s Captains Golf Course (“Captains GC” or “CGC”). The Town required a strategic review of the golf facility as part of its ongoing plan to improve the golf course, and in consideration of future capital investments in light of the Town paying off its debt incurred for the expansion of the facility to 36 holes in 1998. The following report details findings on Captains GC, with analysis of the physical and economic condition of the club and the market environment within which it operates. Based on these findings, NGF has provided a set of recommendations to the Town that we believe will improve overall operations and economics of the popular golf facility. Captains GC is a popular golf facility that consists of two 18-hole championship golf courses (Port and Starboard), a driving range, cart storage barn, maintenance facility and clubhouse. The golf course dates back to an original Town 18-hole course developed in 1985, followed by the construction of a second 18-hole course in 1998. The Town has chosen to self-operate its golf facility with all Town employees with the exception of a food and beverage (F&B) service contract. This exact form of operation is still the most common in public-sector golf nationwide, and offers the Town the most direct control for maximum benefit to the community. The facility is in mostly good condition, although some maintenance activities have been deferred due to the large debt service of about $840,000. This indebtedness was fully paid in FY 2020, freeing up a large portion of funds to address deferred maintenance items. Captains GC produced total top-line revenue of just over $3.69 million in FY2020, an amount that has been relatively consistent over the last four years. With total direct operating expenses totaling around $2.8 million the last three years, it is clear that Captains GC can comfortably cover its operating requirements and address key capital items that have been deferred in recent years. This current financial condition is generally superior to most public sector golf operations in the U.S, where 67% of public golf courses are able to cover on-site expenses, but not able to cover both on-site expenses and capital costs (only about 33% can cover both). Captains GC experienced significant growth in activity in the summer of 2020 as part of a nationwide surge in golf interest during the Covid-19 crisis. This growth in activity has also led to an expected spike in FY2021 revenue, which is already well ahead of budget after the first six months of the fiscal year. SUMMARY OF CAPTAINS GOLF COURSE Captains GC is a good quality public-access golf facility with a mix of amenities that is consistent with economically successful public golf courses. The facility is located at the eastern end of Cape Cod, but still convenient for golfers although access to the course requires some navigation through local streets and good signage will always be needed for tourist golfers. Other findings from NGF’s review of CGC: DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 3 • Captains GC includes two 18-hole golf courses giving the facility a large capacity to host a high volume of events, outings and tournaments, while still supporting its regular- play constituency. The two courses are very similar, and each includes a mix of holes from the course development in 1985 and 1998. This blending in course holes affects a number of elements, such as irrigation, bunker style and cart paths. • The overall property condition appeared good in early 2021, but the facility does have some capital needs, including elements that are at or nearing the end of their expected useful life. Given the high importance the Town places on water use and quality, maintaining the most modern and efficient irrigation systems will be a high priority for future capital spending. The original irrigation system installed in 1985 has already been replaced, and the system installed in 1998 is now due for upgrade sometime in the next 2-3 years. In all, the NGF identified some $6.2 million in capital projects for the next five years, including $3.5 million for the golf courses, $2.3 million for maintenance facilities & equipment, and another $370,000 for the clubhouse. • The staff employed by the Town to operate and maintain Captains GC is appropriate and close to expected standards for this type of golf facility operation. The Town has high expectations for the level of service and facility quality, and this service quality is leading to very strong rounds and revenue performance. A large staff of properly trained professionals is required to provide the level of quality that is desired by the Town so staffing is proper at Captains GC. • The marketing of CGC appears to be modest, but with staff showing a clear effort to enhance and improve in the immediate future. As the facility is located in a tourist- oriented market, adoption of a modern, technology-driven marketing program will be necessary to attract the customers needed to sustain (or grow) rounds and revenue. • Playing fees for golf and concessions are appropriate at CGC, and clearly place the facility in the upper range for public golf in this market. In addition, the operators are doing a good job of maintaining a realized average daily rate (ADR) that is consistent with well-performing golf courses. Review of data shows that the total ADR for non- member rounds at CGC is 60% of the highest peak green + cart fee, showing the club is less reliant on a large volume of heavy discounts in order to sustain rounds activity. • After a few years of consistent activity, Captains GC saw a tremendous increase in rounds activity due to Covid-19 restrictions and the availability of golf as one of the few “safe” activities for people to undertake. The 84,700+ rounds hosted in calendar-year 2020 was the most in any single year since 2006. As we move into 2021 and beyond, retaining this influx of new golfers is the key challenge for golf operators. EXTERNAL ENVIRONMENT The NGF market analysis shows the importance of golf in the Cape Cod market. While there is strong demand for golf in this local market, there are also many golf courses available to service the demand. As such, the NGF has a reasonable expectation that while the market will provide support for the continued operation of Captains GC, such strong support is not guaranteed. Other key findings from NGF’s analysis of the Brewster / Cape Cod golf market include: • While some broader national trends continue to create headwinds for golf operators, overall golf participation in the U.S. appears to be stabilizing and golf is far from “dead.” While demand for golf strengthened greatly during the Covid-19 pandemic in 2020, NGF research shows that golf was gaining some momentum in 2019 and the DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 4 sport remains popular and is fortunate to have a deep well of interested prospects. The key challenge for golf operators like Captains GC is to sustain the momentum from 2020 into the coming years. • Brewster has a relatively modest permanent population that swells every summer to account for seasonal residents and tourists. The demographic profile of the permanent residents in Brewster is consistent with high golf activity. In addition, there are an estimated 4.5+ million visitors to Barnstable County annually, which NGF estimates could include golfers demanding over 350,000 rounds each year. Given its position as a high-quality public golf facility, Captains GC is in a strong position to capture some of the large tourist golf market. • The overall balance between golf demand and supply is not favorable for golf courses in the Cape Cod market. The NGF has documented that this local market area has only about 640 permanent resident golfers for each 18 holes in the market, far fewer than the 4,000 golfers per 18 holes target. As a result, it is expected that the Brewster golf market will remain very competitive for the foreseeable future, and improvement in economic performance at area golf courses is going to have to come from increased tourist and/or outing golfers. • The most important local competition to Captains GC includes other facilities owned and operated by Cape Cod towns like Dennis, Harwich, Yarmouth, Barnstable and Sandwich. Our review suggests that Captains GC is well positioned in comparison to its most immediate competition. These Town golf courses tend to average around 32,200 rounds per 18 holes per year (about half from members), and earn around $48.60 per round, with about $40.00 of that from green, cart and membership fees. • Finally, all golf facilities face a couple of other factors beyond their control: First, high fixed expenses that are subject to inflation that is more rapid than revenues (e.g., ability to raise fees is inhibited); this dynamic appears to be particularly acute with infrastructure and increasing capital costs. Second, while golf is more popular than ever with younger children, the activity is losing appeal with younger adults and this will provide a continuing challenge for golf courses facing attrition from older players. NGF RECOMMENDATIONS As part of our review for the Town of Brewster, the NGF team prepared a schedule of specific recommendations to be considered by the Captains GC. These recommendations have been organized into: (1) basic oversight, structure and staffing; (2) physical enhancements; and (3) other operational insights. Basic Oversight, Structure and Contracts The Town of Brewster has chosen to self-operate its golf course, with only the F&B service privatized to a third-party operator. NGF surveys show that the Brewster structure is still the most common form of municipal golf operation in the country with approximately 56% of U.S. muni golf courses operating with this exact structure. In considering alternatives, the NGF finds it unlikely that Brewster could improve its fiscal position in golf by changing to an alternate form of operation given the strong revenue performance documented in this review. Beginning in 2021, the Town is in a position to use funds that were previously earmarked for debt for new investments. Based on our analysis and the NGF future performance projections, Captains GC is expected to be self-sustaining and economically independent. In some individual years of operation, the Town may find that the revenue generated by Captains GC will not be sufficient to DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 5 fund some of the larger improvements recommended by NGF (irrigation, equipment, maintenance facility, etc.) course maintenance equipment), and this will necessitate some form of external financing (which could be debt and/or a general fund infusion) to cover these temporary shortfalls. The NGF also recommends the Town continue to outsource its food and beverage operations as a separate concession with an experienced vendor at Captains GC, with the Town earning a modest income from lease or concession payments. Given the challenging environment due to Covid-19, the Town should consider some abatement of concession payments in the first year of the new contract as an enticement to allow the vendor to recover from 2020 and 2021. Basic Operational Recommendations In addition to the larger oversight and physical recommendations, NGF Consulting offers the following recommendations to help the Town of Brewster with some minor adjustments that can help the Town improve its bottom-line performance of the golf course. The most significant of these relate to the expansion of modern technologies and marketing, including the full implementation of all facets of the existing point-of-sale (POS) system. It is understood that Town golf facilities are operating in a competitive market with many golf courses trying to maximize rounds and revenue. In the body of this report, the NGF team has provided a broad overview of key issues in the operation comprising: (1) marketing and technology; (2) pricing; and (3) recommendations for increasing participation from less-traditional segments. It is hoped that review of NGF recommendations on these topics can provide the Town a basic framework for the continued operation of the golf facility and lead to enhanced activity and revenue. Specific Physical Recommendations The NGF recommendations for enhancing the physical plant of Town golf facilities considers specific improvements that can be made to Captains to both catch up on deferred items and make some new investment to enhance the overall facility offering. The NGF vision for the future of Captains GC considers the most ideal physical condition of the facility so as to maximize the potential economic performance. Completion of Capital Investment Considerations The full capital plan for the next ten years was documented previously in this report and summarized in the table below: Captains GC Summary of Capital Upgrades – FY2022-FY2026 Facility Items FY2022 FY2023 FY2024 FY2025 FY2026 Total Total Golf Course $317,000 $335,000 $2,380,000 $130,000 $395,000 $3,557,000 Total Clubhouse $135,000 $125,000 $50,000 $60,000 $0 $370,000 Total Maintenance $457,000 $225,000 $290,000 $1,100,000 $250,000 $2,322,000 Grand Total of Capital Projects $909,000 $685,000 $2,720,000 $1,290,000 $645,000 $6,249,000 NGF Consulting estimates based on architect’s input and input from Captains GC staff. This estimate has been provided to allow for preliminary planning and amounts may not reflect actual costs for Town of Brewster. The Town should engage appropriate research to cost out specific projects. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 6 Longer Term Capital Investment Considerations (Beyond 5 Years) In addition to the above-noted capital investments, the Town should begin planning for additional capital needs likely to arise in the 2025-2030 time period, including: Longer Term Investment Considerations Details + Cost Expected Cost Current Age Irrigation System Replace the 2004 irrigation system $2,400,000 17 Years Additional Maintenance Equipment Continue a program of annual replacement $200,000/yr Various FINANCIAL ANALYSIS NGF has assisted the Town of Brewster in preparing an analysis to show the potential economic performance of Captains Golf Course over the next 10 years of operation, and the potential impact from the removal of the annual debt service requirement. This analysis was prepared based on a set of assumptions that may or may not become reality, but are presented as a “fair estimate of performance” for these facilities based on our complete review of each Individual aspect of the operation. Projection Results The results of the NGF financial projection analysis show that with the removal of the $840,000 annual debt service, the Captains GC will have new capital available to complete many of the capital upgrades identified by NGF in 2021. However, the largest of these capital expenditures – 1998 irrigation system and maintenance facility upgrades – will not be covered by retained earnings and therefore must be funded separately. After completion of the major near-term facility upgrades in FY2026, Captains GC should enter a period of more modest capital needs through FY2030 that will allow the facility to build back a retained surplus. The estimate presented above shows total operating income remaining strong, exceeding $467,000 in every year through 2030. However, the large inflation in key expense items, most notably employee fringe benefits, means the operating income will shrink every year through 2030, making any unexpected capital requirements potentially problematic for the Town of Brewster. This reality makes the NGF recommendation to keep up with planned bi-annual fee increases and resisting public pressure to keep fees as low as possible. Captains GC is in a strong position to cover all its basic operating expenses, including employee benefits, but over a longer term (beyond 10 years) the current inflation in this line item suggests it will be challenging for Captains GC to properly fund all expenses and capital requirements from golf playing fee revenue. The cash flow model for the next 10 years of Captains GC operation has been prepared and appears in this report, with a basic summary of the next five years shown below: DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 7 Projected Cash Flow Summary Captains Golf Course (2021-2025) summary FY2021 FY2022 FY2023 FY2024 FY2025 Guest Rounds 39,000 34,000 34,500 35,000 35,500 Member Rounds 45,700 47,000 46,400 45,400 44,800 Total Rounds 84,700 81,000 80,900 80,400 80,300 Revenue Golf Fee Revenue $3,618,000 $3,573,800 $3,691,200 $3,690,000 $3,810,400 Ancillary Revenue 433,200 497,400 510,700 512,900 523,400 Total Revenue $4,051,200 $4,071,200 $4,201,900 $4,202,900 $4,333,800 Cost of Sales $213,300 $235,400 $241,000 $239,500 $245,200 Gross Margin $3,837,900 $3,835,800 $3,960,900 $3,963,400 $4,088,600 Personnel Expenses $1,865,000 $1,932,700 $2,003,300 $2,077,000 $2,154,000 Operating Expenses $1,060,000 $1,086,600 $1,113,800 $1,141,700 $1,170,300 Total Facility Expense $2,925,000 $3,019,300 $3,117,100 $3,218,700 $3,324,300 Operating Income $912,900 $816,500 $843,800 $744,700 $764,300 Other Items: Capital $110,000 $909,000 $685,000 $2,270,000 $1,290,000 Facility Net $802,900 ($92,500) $158,800 ($1,525,300) ($525,700) Cumulative Net $802,900 $710,400 $66,300 ($1,366,500) ($2,051,000) Support for Projections The key justifications for the projections of future economic performance of CGC are based on understanding of the demand drivers for the golf facility, and summarized as: • Stable resident and visitor population • Strong and diversified local economy, with traditionally low unemployment • A potentially high volume of seasonal travelers to supplement demand • Site visibility and accessibility • The added appeal of the clubhouse. Potential Threats / Mitigating Factors Relative to Projections While growth in rounds and revenue is expected at CGC in the next five years, there are mitigating factors that could negatively affect the facility, including: • Regional economic recession • Continued overall decline in golf participation – recent trends show declines in golf participation, especially among the younger generation. • Rapid inflation of golf course maintenance expenses DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 8 SUMMARY STATEMENT Town of Brewster continues to own and operate the 36-hole Captains Golf Course that appears to be very well-run and producing activity and revenue well above the expected standard. This was especially true in the second half of 2020 (first 6 months of FY2021), as Captains GC reached new highs in revenue during the mini “golf boom” associated with the Covid-19 pandemic. However, in addition to strong revenue, Captains GC also has higher-than-standard expenses, although much of this is related to the Town’s desire to provide an outstanding golf course product and a premium level of service. In reviewing this facility, it is clear to NGF consultants that while the Captains’ operation is sound, there are some new investments the Town can make to help better position the golf course for the long-term, and help ensure the quality and sustainability of Captains GC. This includes taking advantage of the dollars that used to be earmarked for debt retirement, and adopting a new program of capital investment to address aging equipment and other infrastructure, especially irrigation, at the Town golf facility. In addition, the Town would likely benefit from enhancing its use of technology and marketing the facility to attract a higher level of participation from non-resident tourists and visitors to the area. In summary, it is clear that the Town’s golf course is very well managed and in position to continue strong activity and rounds performance. The upgrades that will be completed in 2021-2025 period means that the Town will have addressed the most significant capital requirements at Captains, and can now turn its focus to considering other investments that could lead to even greater revenue production, such as expansion/improvement of outdoor dining services. Captains offers a challenging golf course that is well-located and popular with golfers of all skill levels. The 36-hole golf facility, all appurtenant amenities and variable pricing gives the Town an opportunity to offer “something for everyone” within its own golf course. In review of this golf course, the NGF has identified five important actions that the Town can take right now to improve Captains GC performance: 1. Commit to completing the $6.2 million in capital projects over the next five years. 2. Fund all needed improvements using earnings retained from golf operations revenue, mindful of the reality that some larger projects like irrigation and maintenance facility improvements may be too large and will require some outside funding mechanism. 3. Enhance expertise in the technology that supports operations (POS, website, etc.), and use these platforms to enhance the marketing and promotion to less frequent users. 4. Increase focus on new player development and beginner programs, especially with juniors and young adults. 5. Consider other new investments to help modernize and “liven up” facilities like the patio expansion / covering and theme upgrade to help broaden appeal, especially with younger adults. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 9 Subject Facility Review – Captains Golf Course The subject property is the Captains Golf Course (“Captains GC” or “CGC”), a 36-hole public golf facility that is owned and operated by the Town of Brewster, Massachusetts (“Town of Brewster” or “Town”). The facility consists of two 18-hole championship golf courses (Port and Starboard), a driving range, cart storage barn, maintenance facility and clubhouse. The golf course dates back to an original Town 18-hole course developed in 1985, followed by the construction of a second 18- hole course in 1998. At present, the two courses are each a mix of old and new, with the Port Course consisting of eight original holes and 10 newer holes, and the Starboard Course having 10 original holes and eight newer holes. Captains GC includes a mix of amenities that is common in public golf, and generally correlates well with economic success. The facility is in mostly good condition, although some key items in maintenance and upkeep have been deferred in recent years due to large capital requirements. The most significant of these large capital requirements was the annual debt service of about $840,000 to cover the development of the second course addition. This indebtedness was fully paid in FY 2020, freeing up a large portion of funds to address deferred maintenance items. Captains GC produced total top-line revenue of just over $3.69 million in FY2020, an amount that has been relatively consistent over the last four years. With total direct operating expenses totaling around $2.8 million the last three years, it is clear that Captains GC can comfortably cover its operating requirements and address key capital items that have been deferred in recent years. In our review of Captains GC, the NGF found a good-quality public golf course that appeared to be in good condition and providing affordable recreation to the community. The operating structure in place at the facility appears to be functioning properly, even with a key transition of leadership that has occurred in FY2021 with the departure of the long-tenured golf facility manager and promotion of a new manager from within the existing golf staff. Going forward, the key issue for the Town in the Captains GC operation is how to prioritize capital spending to address key infrastructure issues such as golf course irrigation, maintenance equipment, declining clubhouse condition and other improvements that have been deferred due to debt service payments. CAPTAINS GOLF COURSE FACILITY OVERVIEW Captains GC is an important public golf facility with a rich history and a location in the lower Cape Cod area close to key elements such as major roadways, the beaches and lodging components. Over the last five years, CGC had produced a relatively consistent level of activity (rounds and memberships) and revenue for the Town, with a significant spike in interest during the Covid-19 pandemic in mid-to-late 2020 (most impact will be in FY2021). This golf facility has remained popular among a select group of local golfers who find the layout appealing and the affordable price a good match. As growth in activity and revenue is needed at the facility to match increasing expenses, the Town has weighed possible investment in enhancing CGC so as to attract a wider golfing contingent, in light of other Town fiscal priorities and the market realities at this location. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 10 Location, Access and Surrounding Elements The golf course is located at the eastern end of the Brewster and in proximity to the important east- west roadway the Mid-Cape Highway (Route 6). The golf course is park-like in setting and includes great natural appeal, interesting topography and very little adjacent development. The facility is accessed via Freemans Way, which connects to S. Orleans Rd. a little less than one mile from the course entrance, and S. Orleans Rd. connects to Pleasant Bay Rd. 1.2 miles further south. While the golf course is immediately adjacent to (and visible from) the Mid-Cape Highway, access to the course requires some navigation through local streets and good signage is needed for tourist golfers. With a location at the eastern end of Cape Cod, all of the market potential for the facility lies to the west and north of the site, with the center of Brewst er located 4 miles west, Orleans 4 miles north and Harwich about 5 miles south. This location makes the subject golf club somewhat remote in Cape Cod geography, but still convenient and accessible for golfers on Cape Cod, a key factor in improving rounds and revenue at the facility. Overall, the immediate area surrounding Captains GC includes the roadways as noted, and large areas of open space to the north and west. There is some residential density to the south and east of CGC, and the private club Cape Cod National located less than one-mile east. The implication for the golf course is that Captains GC is proximate to several key elements that are expected to provide support to the golf course for the foreseeable future, and the course is convenient enough for the enhanced attraction of tourists and visitors that will be needed to provide golf activity and economic support. Site Positives • Location: The CGC location is close enough to, and visible from, the Mid-Cape Highway (Highway 6). • Site Setting and Topography: The site has outstanding natural features, trees and topography, which leads to positive feedback from golfers and provides a high degree of inherent potential for continued high quality golf. Site Negative • Location: While a positive for proximity to the Mid-Cape Highway, the roadways providing access to CGC are not immediately proximate to the highway, and several turns on local streets are required to find the course. As this facility does require support from non-local tourists and visitors, the course location will always require accurate directions from signage and facility marketing/promotion. • Property Footprint: Captains GC is a large sized property that is fixed in its boundaries that limits its flexibility if changes or expansion is ever contemplated. • Driving Range: With its limited footprint, the Town was not able to find room to site a driving range on the main golf course property. As a result, the CGC driving range is located ½ mile away along Commerce Park Rd. and requires golfers to use autos and a separate trip. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 11 Aerial View – Captains GC Google Earth image showing CGC and direct surrounding elements. This view shows the proximity to Mid-Cape Hwy., but without proximate access. The view also shows the location of the driving range and just how close Cape Cod National is to Captains GC. Regional View – Captains GC Google Earth image showing a broader regional view of CGC and proximity to Brewster and other towns in the Lower Cape area. This view shows the subject facility at the eastern end of Cape Cod and surrounded by key area roadways. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 12 CAPTAINS GOLF COURSE SUMMARY OF FACILITIES The Captains GC is a public golf course located in a parkland setting with rolling topography and the appropriate support amenities (clubhouse, cart storage, maintenance, etc.). As of February 2021, the Captains GC facility includes the following key components: • Two 18-hole championship golf courses with all commonly associated modern amenities (newer greens, multiple tee boxes, cart paths, on-course services, etc.). • A separate driving range area located ½ mile away from the main course. The range includes 25-30 hitting stations and over 280 yards of length. Other practice amenities include two practice greens and other limited chipping areas, but no formal short-game practice area. • Two separate cart storage buildings (one 4,000 square feet (sf) and one 3,200 sf) for storage of up to 140 carts. • Disjointed maintenance compound with two separate 5,800 sf maintenance buildings and additional space for various equipment and materials storage. • Full-service 12,900 sf clubhouse in two sections, one for the pro shop and one for the restaurant/pavilion area plus restrooms, offices and additional storage. • Additional acreage for parking lot (380-400 parking spaces) and unused open space. Championship Golf Courses The Captains Golf Course includes two separate 18-hole golf courses – the Port and Starboard courses. The original 18 holes were designed by Brian Silva and opened in 1985, while the second 18-hole course was designed by a combined firm of Cornish, Silva and Mungeum, that included the original designer Brian Silva. The two courses are very similar, and each includes a mix of old and new, with the Port Course consisting of eight original holes and 10 newer holes, and the Starboard Course having 10 original holes and eight newer holes. This blending in course holes affects a number of elements, such as irrigation, bunker style and cart paths. Each course is routed with returning nines (holes #9, #10 and #18 all near the clubhouse). Captains GC includes all of the basic design elements that are commonly associated with a regulation-length course that can appeal to a wide variety of golfer skill levels. Other NGF observations: • Captains GC was in good overall condition in early 2021, which was noted by both NGF and the separate irrigation consulting report (Irrigation Consulting, Inc.). The course benefits from its location on sandy soils that tend to drain well. In all, the CGC turf condition is good, but there are some issues related to water source and irrigation that may require some capital in the coming years. • The two courses at Captains GC show similar scorecards, with the Port Course maxing out at 6,675 yards and the Starboard Course reaches a maximum length of 6,776 yards. The back (Blue) tee shows a USGA slope rating of 135 on Port and 131 on Starboard, which represents that the two courses are much more difficult than the ‘standard’ slope of 117. The intermediate (White/Gold) tees offer golf courses between 5,784 and 6,198 yards with slope ratings of 123-130 (also harder than standard). The more forward courses (Gold/Red) are 5,833 and 5,282 yards respectively, and are closer to the difficulty standard. In all, these numbers suggest that this golf course is harder than standard to play, and that less-skilled players may find the course difficult to play if playing from the wrong set of tees. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 13 • The most forward tee on the course (commonly associated as the “ladies” tee) is 5,282 yards on the Port Course and 5,339 on the Starboard Course, which are about 14% longer than the NGF-recommended distance of under 4,600 total yards in length for a Red tee course. This current Red tee placement makes the course longer and more difficult for less-skilled players, and NGF suggests that the Town consider adding a new (shorter) Red tee to help the facility improve rounds and revenue from that segment. Captains GC does offer a Family tee position at around 3,600-3,800 yards, although this is not a substitute for a good Red tee course at 4,600 yards. • The two Captains courses have design features that make them playable for all golfers (such as shorter par 4 holes, tree-lined holes and numerous bunkers, etc.). The Port course has 47 bunkers and the Starboard has 53 bunkers for a total of 100 bunkers on Captains GC. A primary challenge on these courses is the narrow hole-corridors that are lined by dense trees. This adds greatly to the scenic and challenge appeal of the golf courses, but also to the difficulty for less-skilled players. These trees can also add significantly to cart path damage and add to maintenance requirements by blocking sun and breeze (more below). There is very little water in play with only a few holes impacted by ponds on site. • This golf course is highly marketable in this area given its attractive and challenging layout and scenery, although this must include a high-level maintenance standard. The golf course provides enough challenging and unique features to add to its overall appeal and provides a unique golf experience proposition that can be marketed by the Town through photos on the website and in print advertising and brochures, etc. • As each course has 9-hole courses that return to the clubhouse, there are no on-course restrooms. The on-course drinking stations include coolers in wood enclosures. There are no rain or lightning shelters on either 18-hole golf course. Overall, it is expected that this golf course will continue to be attractive to serious and highly skilled golfers, intermediate players and beginners. A program of high-quality maintenance that will provide outstanding conditions (including some down time for applications) is also assumed. This golf course condition places the CGC facility in the upper range of public golf courses in the Cape Cod market area, providing services clearly superior to lower-fee facilities but not to the level of the highest fee public-access golf facilities (more in market analysis section). Captains GC Clubhouse The Captains GC clubhouse includes approximately 12,900 sf of space in two separate sections connected by a covered breezeway. The remnants of the original clubhouse now comprise the Freeman’s Grill, kitchen and other spaces, while a sperate pro shop, hallway and pavilion area were added in 1998. During the Covid-19 crisis in 2020, only the pro shop was open for NGF inspection, as the indoor food service areas were closed. Staff reports the building is in generally good condition with some needs related to windows, doors, carpets and kitchen equipment. The space is well laid out with good logistics, and is easily accessible for customers. The building shows well with a good appearance and compares favorably to the local competition. The facility contains all basic features commonly associated with successful golf facilities, including: • Pro Shop Section – The space for the pro shop includes around 2,200 sf and contains around 1,100 sf for retail space, plus additional offices, storage and the main check-in counter. This space appeared functional and efficient, with a good inventory of goods for sale (although the review was at the end of the golf season). The pro shop location is good, with proximity to the main entrance, Grill and cart staging area. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 14 • Food and Beverage Service Area - The service area for F&B is of modest size, with seating for about 90+/- patrons inside the Grill area. The bar area includes walk-up service and full tableside wait service. Overall, the space is adequate with a nice appearance and gives a good impression of the facility for newer customers. The space is adjustable for banquet use and can accommodate up to 140+/- patrons when combined with the outside patio area. • Kitchen Space - The CGC clubhouse has a small kitchen, but there is enough space to provide adequate F & B service for most days except only the busiest days and large banquet events. Staff reports some need to update and/or upgrade kitchen equipment like oven, refrigerators and prep areas. • Outside Patio Area - The outside patio area is adjacent to the snack bar and provides additional seating for 40+/- patrons. This has become a popular area for after-golf socializing, especially in the 2020-21 Covid-19 environment. The area is not covered, and only table umbrellas available for shading. This type of outdoor space is very popular at successful public golf courses, but works best with some type of permanent covering. • Conference/Meeting Room – The pro shop area includes a small conference or meeting room with a capacity of about 20+/- patrons. The space is sufficient to host smaller corporate meetings and/or parties, while still allowing for full functionality of the bar/ snack bar area. This meeting room concept is popular in public golf, provided the appropriate audio-visual components that are popular for meetings in the 2020s are included (video screen, projector, plug-ins, wifi, etc.). • Entry Presentation and Restrooms - The CGC has a very appealing entry presentation with covered portico and circular entry. There are two sets of restrooms in both the pro shop section and in the main hallway between the Grill area and pavilion that are reported to be in good condition and well kept. There are no locker rooms at CGC, which is appropriate for a public golf course where the available space is limited. The above-noted clubhouse program includes all elements commonly associated with successful public golf courses and should provide adequate support for the golf operation and add significantly to facility revenue. NGF has documented that food and beverage operations that allow for both day-to-day service for golfers (and others), but also accommodate banquets and parties can produce stronger revenues. It is clear that the clubhouse operation at CGC is a key strength for the facility and this facility has provided the operator a better opportunity to enhance total earned revenue at CGC. Driving Range / Practice Amenities The CGC includes a golf practice facility that comprises a full driving range with about 25-30 stations, with a practice bunker and chipping area. This driving range is not located on the main Captains GC property, but one-half-mile down the road to a separate location with separate parking and range service kiosk. The practice facilities at CGC are sufficient to support any program of lessons, camps, schools and/or other new player development programming. This concept of golf practice amenities has proven to be very successful in public golf and can be a key support for both direct (fees generated from patrons) and indirect (helps to sell facility and train new customers) revenue. As such, it is assumed that additional features and amenities that correlate to success in this area will be present, such as high-quality hitting surface with daily tee- line changes, high quality golf balls and convenient access to range balls (through automated “swipe card” or “key” system). However, some of the benefits may be mitigated somewhat by the DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 15 remote location, and staff reports a policy to make it clear to customers who purchase range balls that the range is remote and lacks access via cart. It is reported that most customers who did not know will decide not to purchase range balls upon hearing about the remote location. Industry “standards” suggest that on-course driving ranges average around $2.00 per round in revenue, although the remote location may suggest that range revenue per round at Captains GC may stay below this standard. CAPTAINS GC – FACILITY CONDITION AND FUTURE CAPITAL INVESTMENT The golf course playing area at Captains GC appeared in generally good condition with only a few minor areas of concern. The business plan going forward assumes that high quality is maintained so the overall facility has a match of value between the facility quality and the price being charged. The NGF review of key infrastructure challenges and capital investment considerations for CGC (with input from CGC staff) is documented below: Property Condition Report This NGF consulting engagement included a full site inspection with golf architect Tim Gerrish of Gardner-Gerrish, LLC Landscape Architects. Based on this inspection and previous site visits by the NGF consultants and Tim Gerrish (Mr. Gerrish worked at Captains GC as an associate Architect in 1998-99 with Cornish & Silva), the NGF has made observations on facility conditions along with input from CGC staff. This review was provided to help the Town of Brewster understand the basic challenges of operating and maintaining a “living and breathing” asset, and to provide our estimate of ongoing maintenance and capital requirements for Captains GC through 2026. The primary areas of NGF review for the Town include the following elements: Golf Course Playing Area • Organization: The two 18-hole golf courses include a mix of holes originally developed in 1985 and then a second course in 1998. The Port course plays to the eastern side of the property and consists of eight original holes and 10 newer holes, while the Starboard course plays 10 original and eight new holes. This blending in course holes affects a number of elements, such as irrigation, bunker style, and cart paths. • Greens: The Captains greens are in good shape and appear to be handling the increased wear in 2020 well. Recent efforts to expand the greens to original size have returned a level of interest to the golf course. While this is noteworthy if the course is expecting to hold a tournament, an overall increase in green surface area where there is no need only increases the maintenance budget. Careful evaluation of the green area as it relates to cupping positions can strike a balance between maintenance and course strategy. The NGF team does not anticipate any significant new investment in greens surface or sub-surface elements will be required in the next 5-10 years. • Tees: The tees are in good condition given the increased rounds played in 2020. There appears to be sufficient space for tee recovery and the overall tee character on all 36 holes is visually similar. However, the Gold and White Course tees on the par-3 holes are not appropriately level. This is typical given the course age and normal number of rounds played from these markers. Additionally, we recommend new forward tees be added to provide a shorter golf course to accommodate the less-skilled players. These new tees will also assist in the fairway area reduction goal the Town has implemented. • Port Course Hole #8: The par-5, 8th hole on the Port course is a three-shot hole for almost all male golfers, but this hole is nearly unplayable for shorter-hitting golf players. The third shot is a forced carry from fairway to green that is at least 110 yards over a DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 16 deep depression and pond. Because many forward tee players can only carry a golf shot about 75 yards, this hole forces additional lay-up to limited turf areas. Then a blind uphill chip to the smallest green on the course. Eliminating or drastically reducing the forced carry will make this hole more enjoyable for the shorter-hitting golfers (most often ladies and seniors). Making changes to this hole to address this challenge will also make the hole more interesting for better skilled players willing to take the risk of placing their second shot closer to the green and help improve pace-of-play. Image of the Port course hole #8 with its tight approach and pond making for an overly challenging golf hole. • Fairways and Roughs: The fairways are in great shape and benefit from the sandy soil with good drainage characteristics. The original fairways are narrower than the newer holes as was the preferred design style of the 1990s. As part of a broader plan to reduce soil nitrogen, the Town has proposed reducing fairway area and replacing with maintained rough. While a worthy goal, care must be taken in evaluating individual areas, as playability can be hampered and pace of play actually slowed by an increase in maintained rough. Alternatively, some of this reduction might be accomplished through elimination of the fairway contour mowing scheme. Given all the factors determining fairway placement, there would be minimal savings in area. • Bunkers: Bunkers are of particular visual interest on a golf course given the contrasting color between the sand and turf. The Port course contains 47 bunkers, and there are 53 on the Starboard course. These totals are slightly higher than the recently renovated Town of Dennis, Sandwich, and Yarmouth courses. After no less than twenty years, bunkers become more difficult to maintain after wash outs and normal wear and tear. In-house staff have repaired bunker edges and replaced sand as a temporary fix. Consideration should be given in developing a plan that unifies the bunker style, considers reducing the number of bunkers, and thus reduces the maintenance demand. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 17 Photos showing samples of bunkers with varying character and conditions that require direct hands-on maintenance. • Sinkholes: A situation that needs to be addressed at CGC is the repair of sinkholes that are located in the rough and other areas around the cart barn and parking lot. While not an issue on the newer 18 holes, the original holes have these depressions, some of which appear to need a lot of soil to repair. The sinkhole on Starboard hole #2 was deep enough that it could become a water body if not for the well-drained soil. Continued repair with importing clean, well-drained, off-site soil and re-grassing is essential. Consideration should be given to tying this repair work with other soil cohesion efforts. Unfortunately, until the vegetative matter completely decomposes, sinkholes will continue to be a nuisance and some will require repair multiple times. • Trees: The hole corridors are framed by trees, and there are locations on Captains GC where there is essentially a forest between holes. An overall tree thinning program should be a priority so as to open up morning sun and air movement that will help turf health, as well as improve the speed of play. Removal of dead and diseased trees and a select clearing of unwanted species will further improve turf conditions and reduce both fertilizer and herbicide applications. These gaps in the forest need to be carefully located in relation to play and safety. Images of CGC tree-lined holes with dense tree cover impacting the play difficulty of the hole, as well as the turf condition due to limited sunlight and breeze / air flow. • Cart Paths: There are several areas on the golf course where older cart paths have deteriorated and/or been impacted by tree roots leading to poor path conditions. Improvement to cart paths can help improve cart condition and presents a more comfortable condition for golfers. The cart paths at CGC are asphalt, and are located only near tees and greens (not a full “wall-to-wall” system). Trees adjacent to cart paths have roots damaging the surface of the paths. While root pruning is effective, long term sustainability means changing path locations at least 10 feet from trees and reducing tree quantity. Fortunately, the soil drains well on this site allowing carts to operate off of the paths, hence a full “wall-to-wall” system is not required at Captains GC. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 18 The poor cart path condition is apparent in the area surrounding the starter gazebo and first tee for both courses. The paths are narrow and rippled from tree roots, and provide a lack of clarity for wayfinding. In addition, this area has a tired landscape, tree thinning, and a need for signage replacement. This is important because this location creates an initial player perception, and is in need of improvement, as it is a juxtaposition from the condition of the clubhouse and pro shop. Images of cart paths at CGC showing the uneven surface and the impact of tree roots, especially near the starter gazebo (R). This condition can make the ride in carts uncomfortable for the players and leads to golfers driving on grass areas causing other damage. Paths like this also add to the wear and tear on carts that tend to not last as long with cart paths like these. Irrigation System The irrigation system at Captains GC is essentially two separate systems installed about six years apart from each other (an original from 1998 and a replacement installed in 2004). The full system was evaluated by Irrigation Consulting, Inc. in 2021, who assessed the system and water supply. Irrigation is the “life blood” of a golf course and the independent irrigation consultant notes that the volume and pressure of water to the golf courses is inadequate. While it has been noted that the system has been very well maintained, the system’s age may lead to a hindrance of performance, as well as the Superintendent’s ability to properly maintain turf. Recently the facility has exceeded its water withdrawal permit, though it seems that is because of overwatering rough and fairway areas and not a function of the system. The irrigation system includes three wells and one pump station in what might be the lowest point on the golf course. Unfortunately, there is no relation between elevation and water availability for the amount of water required per minute to water the course. The source of water for irrigation is four groundwater wells on property that require permits that govern a volume of use. Relocating or retrofitting the pump house seems cost prohibitive as compared to site adjustments. The finding from the irrigation consultant is that the older (1998) system is due for replacement or significant repair in the next 3-5 years and the remaining system will have to be upgraded and possibly replaced sometime around 2030. The upgrades will include improvements to piping, sprinklers, pumps, electrical systems and computer controllers. As such, it is expected that a large- scale irrigation repair or replacement will be required at CGC in the near-term future, as the system is now approaching the end of its expected useful life (see Appendix A). DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 19 Clubhouse and Cart Barn The Captains clubhouse area is well organized and pleasing to the eye. The main entrance off Freemans Way aligns users directly to the clubhouse with parking on both sides. The bag-drop and cart staging area allow for a smooth transition to the large interior practice green and first tees. A large putting green and flag pole establishes the theme for the entry area and bag drop. Pavers lead people up the visual axis between the pro shop or separate restaurant building to the first tee area. Some improvement to the first tee areas on both courses will provide a strong visual design element for players - Welcome to the Captains! Golf carts are adequately stored and covered by both the larger original, and newer second cart barn. The covered cart space is tight, however, with one extra cart parked in each row, forcing the carts to jut out on each side. When it comes time to replace one the cart barn structures, adding slightly more area would alleviate the crowding. There is adequate space for cart staging around the front entry and practice putting green for outings and tournaments. The exterior dining/function space is adequate and has a good visual connection with the course. The exterior function space in unison with the interior space is sufficient for typical around 145+/- patron events. The rear restaurant brick patio is insufficient given the number of players using 36 holes and the desire to capture more food and beverage revenue. The difficulty is there is no space for expansion unless the first tees and putting green space is reduced. Any future clubhouse area expansion will need to be vertical or shift towards the front entry drop off. The interior of the clubhouse is showing some signs of age and replacement of key features is likely needed. Specifically, NGF and CGC staff noted the doors, windows, flooring and some areas of paint (interior and exterior). The roof of the clubhouse is reported to be in good condition, but replacement or repair should be assumed in the intermediate term (5+/- years). Design Theme In its entirety the Captains design theme is done well and stands out from most golf courses on the Cape, both public or private. The hole names, web site descriptions, and logo all have a solid, nautical theme. On the golf course, this continues with the 100 and 150-yard markers, the cart ropes in place of curbing and other factors. However, the accoutrements to this theme have aged and some upgrade should be considered. This is especially true at the start and areas around the first tees, where ropes are drooping and frayed, wood is fading, and signs are worn. Perhaps the replacement of the walking paths surrounding the starter gazebo with wood “planks” and locating “wooden” barrels for trash and recycling receptacles will strengthen the theme. Images of design theme challenges and the need to enhance the visual images at Captains GC. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 20 Maintenance Facility and Equipment The space for maintenance support is disjointed, with two separate maintenance shop buildings in two separate locations, plus a materials storage area just west of the parking lot. The primary maintenance shop includes a 5,800 sf building that is part of the main maintenance compound just east of the parking lot that was designed for the original 18-hole course, so it is now confined and cluttered for a 36-hole operation. A second maintenance area with similar size is located between holes #1 and #7 on the Port course and functions for additional storage. The NGF has noted concerns in condition that will have to be addressed in the coming years. Enhancement to basic infrastructure (roof leaks, electricity, wiring, lighting, ventilation, etc.) will help improve efficiency and save expenses. The existing pesticide storage locker and wash-down area is sufficient, but not an example of current industry practices, especially for a Town concerned about nutrient levels in the nearby drinking water wells. Inadequate repair space is also an issue for Captains, and is especially significant given the increasingly aging fleet of maintenance equipment. The equipment plan at Captains has recently been to buy equipment outright, in small packages of four to eight pieces. This equipment is then kept in use well beyond service expectations, with careful and attentive preventive maintenance and repair. Much of the equipment has aged to over 12 years, with some as old as 30+ years. Most of the equipment has been pushed beyond its serviceable life, often requiring parts and labor costs equaling or exceeding the cost of the piece on the used market, trade-in value, or at auction. Some equipment has become obsolete, to the point where mechanics will have to fabricate parts, scour the internet for parts, and keep retired equipment as “parts machines.” Captains GC Capital Investment Considerations (FY2022-FY2030) In order to maintain the highest quality golf facility conditions, Captains GC requires some upgrades to basic infrastructure (irrigation, sinkholes), golf features (tees, bunkers, cart paths), clubhouse features (windows, doors, carpets, theme enhancement) and new maintenance equipment. Outlined below are the items that are recommended capital expenditures that will help keep this facility functioning properly and improve the facility’s competitiveness in the market place. We note that the dollar costs estimated by NGF are intended to be rough “ballpark” estimates and that more comprehensive cost bids should be obtained before undertaking completion: FY2022 Capital Investments • Sinkhole Repair: Program to fill sinkholes in and around the cart barn, parking lot and rough areas on the golf course. NGF estimated cost = $75,000 (lump sum). • Par-3 Tee Improvements on Port Course: Improvement of tee boxes include soil enhancements, leveling and alignment on Port Course par-3 holes. The unit price for this level of improvement is higher than other re-surfacing, or about $3.50 per sf. NGF estimated cost = $35,000 (10,000sf @ $3.50/sf). • New Forward Tees on Port Course: Add a new forward tee course at 4,600 yards. The unit price for this improvement includes new tee box construction and surfacing at $4,000 per hole. NGF estimated cost = $72,000 (18 holes @ $4,000/hole). • Cart Path Repair & Re-Surface: Begin a program to address damaged cart paths by repairing tree roots and resurface with asphalt. Year 1 of a 4-year upgrade program. NGF estimated cost = $60,000 (6,000sf @ $10/sf). • Irrigation Repair: Program to restore the irrigation well #2 to remove debris that has filtered through the well screen. NGF estimates cost = $55,000 (lump sum). DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 21 • Tree Trimming / Thinning: Begin a program to thin overhanging tree limbs and remove dead or dying trees. Year 1 of a 5-year upgrade program. NGF estimated cost = $20,000 (lump sum). • Clubhouse Enhancement: Completion of basic improvements to windows, doors and carpets (for both clubhouse and pavilion). NGF estimated cost = $75,000 (lump sum). • Theme Enhancement: Full upgrade and replacement of nautical theme accoutrements, including ropes, markers, barrels, planks, etc. NGF estimated cost = $60,000 (lump sum). • Maintenance Shop Enhancements: Basic / short-term improvements to current maintenance building and some expansion of storage space. NGF estimated cost = $215,000 (lump sum). • Equipment: Replace a tractor, sand rake machine, sidewinder mower, rough mower, 2 rough aerators, a triplex mower and backhoe attachment. NGF estimated cost = $242,000 ($50,000 tractor, $25,000 sand rake, $35,000 sidewinder, $45,000 rough mower, $20,000 aerator, $52,000 Triplex and $15,000 Backhoe attachment). FY2023 Capital Investments • Par-3 Tee Improvements on Starboard Course: Improvement of tee boxes include soil enhancements, leveling and alignment on Starboard Course par-3 holes. NGF estimated cost = $35,000 (10,000sf @ $3.50/sf). • New Forward Tees on Starboard Course: Add a new forward tee course at 4,600 yards. The unit price for this improvement includes new tee box construction and surfacing at $4,500 per hole. NGF estimated cost = $72,000 (18 holes @ $4,000/hole). • Cart Path Repair & Re-Surface: Year 2 of a 4-year upgrade program. NGF estimated cost = $60,000 (6,000sf @ $10/sf). • Driving Range Improvements: Program to improve the driving range tee, including soil enhancements, leveling and alignment. NGF estimates cost = $98,000 (28,000sf @ $3.50/sf). • Bunkers: Renovation and/or reduction in the size and number of bunkers in selected non-penal/ strategic locations should be implemented to address concerns noted above. This is year 1 of a 4-year program at $2,000 per bunker. NGF estimated cost = $50,000 (25 bunkers @ $2,000/bunker). • Tree Trimming / Thinning: Year 2 of a 5-year upgrade program. NGF estimated cost = $20,000 (lump sum). • Clubhouse Enhancement: Completion of basic improvements to exterior paint, kitchen equipment plus expansion and covering for the outdoor patio. NGF estimated cost = $125,000 ($30,000 for paint, $20,000 for kitchen equip., $75,000 for the patio). • Equipment: Replace 4 fairway mowers and the driving range vehicle. NGF estimated cost = $225,000 ($50,000 each for fairway mowers and $25,000 for range vehicle). FY2024 Capital Investments • Cart Path Repair & Re-Surface: Year 3 of a 4-year upgrade program. NGF estimated cost = $60,000 (6,000sf @ $10/sf). DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 22 • Driving Range: Program to restore the driving range well and remove debris that has filtered through the well screen. NGF estimates cost = $50,000 (lump sum). • Bunkers: Year 2 of a 4-year program at $2,000 per bunker. NGF estimated cost = $50,000 (25 bunkers @ $2,000/bunker). • Tree Trimming / Thinning: Year 3 of a 5-year upgrade program. NGF estimated cost = $20,000 (lump sum). • New Irrigation System: Complete replacement of the 1998 irrigation system. NGF estimated cost = $2,200,000 (lump sum). • Equipment: Replace 2 sidewinder mowers, and 3 spray rigs. NGF estimated cost = $290,000 ($50,000 ea. for sidewinders and $63,300 for each spray rig). FY2025 Capital Investments • Cart Path Repair & Re-Surface: Year 4 of a 4-year upgrade program. NGF estimated cost = $60,000 (6,000sf @ $10/sf). • Bunkers: Year 3 of a 4-year program at $2,000 per bunker. NGF estimated cost = $50,000 (25 bunkers @ $2,000/bunker). • Tree Trimming / Thinning: Year 4 of a 5-year upgrade program. NGF estimated cost = $20,000 (lump sum). • Clubhouse Enhancement: New roof. NGF estimated cost = $60,000 (lump sum). • Maintenance Shop Enhancements: Additional shop and new covered storage space with a new structure. NGF estimated cost = $875,000 (lump sum). • Pave parking Lot: Re-pave selected areas and improve landscaping. NGF estimated cost = $50,000 (lump sum). • Equipment: Replace 5 Triplex mowers. NGF estimated cost = $225,000 ($45,000 for each Triplex mower). FY2026 Capital Investments • Bunkers: Year 4 of a 4-year program at $4,500 per bunker. NGF estimated cost = $50,000 (25 bunkers @ $2,000/bunkers). • Tree Trimming / Thinning: Year 5 of a 5-year upgrade program. NGF estimated cost = $20,000 (lump sum). • Clubhouse Enhancement: Additional kitchen equipment replacement. NGF estimated cost = $20,000 (lump sum). • Port Course Hole #8 Project: Project to soften the hole by re-building area from 150- yards in to the green. Project requires tree removal, re-grading, irrigation adjustments, cart path re-alignment and grassing. NGF estimated cost = $325,000 (lump sum). • Equipment: New equipment to be determined. NGF estimated cost = $250,000 (lump sum estimate). DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 23 Capital Upgrades FY2022-FY2026 Summary Captains GC Recommended Golf Course Upgrades – FY2022-FY2026 Golf Course Items FY2022 FY2023 FY2024 FY2025 FY2026 Total Sinkhole Repair $75,000 $0 $0 $0 $0 $95,000 Tee Projects: New Forward Tee $72,000 $72,000 $0 $0 $0 $144,000 Par-3 Hole Tees $35,000 $35,000 $0 $0 $0 $70,000 Cart Paths $60,000 $60,000 $60,000 $60,000 $0 $240,000 Irrigation Repairs $55,000 $0 $0 $0 $0 $55,000 8th hole project $0 $0 $0 $0 $325,000 $325,000 Driving Range Improvements $0 $98,000 $50,000 $0 $0 $148,000 Bunker Renovation / Restoration $0 $50,000 $50,000 $50,000 $50,000 $200,000 Tree Trimming / Thinning $20,000 $20,000 $20,000 $20,000 $20,000 $100,000 New Irrigation (Orig. to 1998) $0 $0 $2,200,000 $0 $0 $2,200,000 Sub-Total Golf Course Items $317,000 $335,000 $2,380,000 $130,000 $395,000 $3,557,000 NGF Consulting estimates based on architect’s input and input from Captains GC staff. This estimate has been provided to allow for preliminary planning and amounts may not reflect actual costs for Town of Brewster. The Town should engage appropriate research to cost out specific projects. Captains GC Recommended Clubhouse Upgrades – FY2022-FY2026 Clubhouse Items FY2022 FY2023 FY2024 FY2025 FY2026 Total Windows and Doors $50,000 $0 $0 $0 $0 $50,000 Carpet $25,000 $0 $0 $0 $0 $25,000 Exterior Paint $0 $30,000 $0 $0 $0 $30,000 Roof $0 $0 $0 $60,000 $0 $60,000 Kitchen Equipment $0 $20,000 $0 $0 $0 $20,000 Patio Expansion $0 $75,000 $0 $0 $0 $75,000 Theme Enhancement $60,000 $0 $0 $0 $0 $60,000 Parking Lot Pave/Landscape $0 $0 $50,000 $0 $0 $50,000 Sub-Total Clubhouse Items $135,000 $125,000 $50,000 $60,000 $0 $370,000 NGF Consulting estimates based on architect’s input and input from Captains GC staff. This estimate has been provided to allow for preliminary planning and amounts may not reflect actual costs for Town of Brewster. The Town should engage appropriate research to cost out specific projects. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 24 Captains GC Recommended Maintenance & Equipment Upgrades – FY2022-FY2026 Golf Course Items FY2022 FY2023 FY2024 FY2025 FY2026 Total Maint Shop Enhancements $215,000 $0 $0 $0 $0 $215,000 Maint Shop Expansion $0 $0 $0 $875,000 $0 $875,000 Equipment: Tractor, rake, sidemowers, rough, etc. $242,000 $0 $0 $0 $0 $242,000 4 fairway mowers + range vehicle $0 $225,000 $0 $0 $0 $225,000 2 sidewinders + 2 spray rigs $0 $0 $290,000 $0 $0 $290,000 5 sidewinder mowers $0 $0 $0 $225,000 $225,000 Misc. Equip to be determined $0 $0 $0 $0 $250,000 $250,000 Sub-Total Maintenance Items $457,000 $225,000 $290,000 $1,100,000 $250,000 $2,322,000 NGF Consulting estimates based on architect’s input and input from Captains GC staff. This estimate has been provided to allow for preliminary planning and amounts may not reflect actual costs for Town of Brewster. The Town should engage appropriate research to cost out specific projects. Captains GC Summary of Capital Upgrades – FY2022-FY2026 Facility Items FY2022 FY2023 FY2024 FY2025 FY2026 Total Total Golf Course $317,000 $335,000 $2,380,000 $130,000 $395,000 $3,557,000 Total Clubhouse $135,000 $125,000 $50,000 $60,000 $0 $370,000 Total Maintenance $457,000 $225,000 $290,000 $1,100,000 $250,000 $2,322,000 Grand Total of Capital Projects $909,000 $685,000 $2,720,000 $1,290,000 $645,000 $6,249,000 NGF Consulting estimates based on architect’s input and input from Captains GC staff. This estimate has been provided to allow for preliminary planning and amounts may not reflect actual costs for Town of Brewster. The Town should engage appropriate research to cost out specific projects. Longer Term Capital Investment Considerations (Beyond 5 Years) In addition to the above-noted capital investments, the Town should begin planning for additional capital needs likely to arise in the 2025-2030 time period, including: Longer Term Investment Considerations Details + Cost Expected Cost Current Age Irrigation System Replace the 2004 irrigation system $2,400,000 17 Years Additional Maintenance Equipment Continue a program of annual replacement $200,000/yr Various REVIEW OF GOLF OPERATIONS - CAPTAINS GC The NGF review has addressed several issues related to the operation of the Captains Golf Course. In this section, the NGF reviews the staffing, technology, marketing, fees, carts, merchandising, food & beverage service, player development programs and other organized activities associated with the operation of Captains GC. Captains GC is operated by the Town of Brewster, and is currently organized as a “Special Revenue” account in Town budgeting. The facility had previously been operated as an Enterprise Fund and as part of the Town’s General Fund. Direct oversight for the operation falls to the Town DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 25 Administrator who has oversight over Town employees and contractors at Captains GC. The Town also has a defined Golf Commission, created to provide insight and advice on operations and includes members from Town government and various users or club representatives from Captains GC. The presence of this golf commission is common in public golf and can provide useful input to a golf course operation. Captains GC Review of Contracts The Town of Brewster’s operation of the Captains GC includes several contracts to provide various services to the facility, including a restaurant lease, online account management, custodial services and the lease of some equipment. A summary of each is noted below: Restaurant Facility Lease at Captains Golf Course, Inc. (CGC) A Lease agreement between the Town of Brewster and Freemans Grill/Bow to Stern: Zachary Duff & Sean Sullivan (Lessee) for the purpose of conducting the day-to-day food and beverage concessions at The Captains Golf Course. The facilities include the kitchen, bar, pavilion, storage room, deck, galleys A and B, terrace and snack shop adjacent to the No.10 Port Tee, plus the use of all kitchen equipment and furniture for food & beverage services. Lessee’s purpose is to operate a “sit-down” restaurant and bar operation, with banquet ability to service large groups, and serving a full range of alcoholic beverages. Lessee is also responsible for running the food station at the 10th tee area on the Port Course, two mobile food & beverage carts, and vending machines. The lease is three years, from January 1, 2018 thru December 31,2020 with option to extend for an additional two-year term. The payment obligations of Lessee to the Town and other key terms are as follows: • Security deposit of $8,000 • Guaranteed Annual Minimum Rent: ▪ 1st year: $35,000 ▪ 2nd year: $36,750 ▪ 3rd year: $38,588 ▪ 1st Option Year: $40,517 ▪ 2nd Option Year: $42,543 In addition to the Guaranteed Minimum Rent, the Lessee shall pay 2% of any annual gross sales that exceed $500,000. • Other fees and payment obligations include: ▪ Utilities: TOB to pay all utilities (electricity, natural gas, and water) ▪ Additional Fees: Lessee pays taxes, municipal assessments and insurance, trash removal and dumpster, cleaning and some interior repairs related to the restaurant and brick patio area and cleaning and trash following events being catered in the Lessee’s areas. • Town will make all maintenance and repairs to facilities, equipment and fire systems unless damage is caused by Lessee or its employees or agents. • Lessee is responsible for annual professional maintenance of grease traps and hoods over stoves at their expense. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 26 • No assignment or transfer of agreement can be made without the prior consent of the Director of Operations. Other Agreements • Online Account Management: Agreement between the Town and Transaction Resources, Inc. for the purpose of credit card processing services with a term of three years, from April 12, 2018 to April 12, 2021. The fees and payment obligations include several variable charges, with primary focus on a $0.08 cent transaction fee for Visa, Mastercard, Discover and American Express transaction. • Custodial Services: The Town has two agreements for cleaning the maintenance building, pro shop clubhouse, snack shack and driving range restrooms. These agreements are fixed fees for a total of $27,146 and runs through the end of June 2021. • Equipment Leases: The Town leases 140 EZ-Go carts and other utility vehicles from Wells Fargo Equipment Finance. The lease is dated April 17, 2020 and is for 55 months with monthly rent payments of $18,500. Captains GC Facility Staffing The Town of Brewster golf staffing is divided into two primary divisions of service – pro shop operations and golf course maintenance. We note that all operations and maintenance staff is employed directly by Town, with only F&B service staff employed by the contracted vendor. In general, full-time (FT) positions within the Captains GC include salary and benefits (insurance, holidays, vacation, etc.), with some other positions staffed with full-time hourly (FTH) and/or part- time/seasonal (PT) hourly labor. An NGF survey of municipal golf courses conducted in 2020 shows the average total employment (includes operations, maintenance and F&B) at municipal golf courses nationwide consisted of 3.0 full-time and 11.0 part-time employees in operations and 3.0 full-time and 5.0 part-time employed staff in maintenance per 18 holes. Golf Maintenance Staffing NGF has reviewed the staffing and budget for maintaining Captains GC for each fiscal year from 2016 through 2020. Documentation provided by the Town shows a total golf course maintenance labor expense of $1.62 million in 2020, with $1.19 million for labor and related and $420,000 for materials and utilities. The staffing used for the facilities includes a total of 21 golf maintenance staff combined positions, with a mix of 9 full-time positions and 12 part-time/seasonal positions of varying time commitments for a total full-time equivalent (FTE) maintenance staff of 15.1 full-time equivalents (FTE) for the full system. The January 2021 staffing for golf maintenance: Captains Golf Course Golf Maintenance Staff Full-Time Staff Part-Time/Seasonal Staff Head Golf Superintendent (FT) Groundsman @ 40 hrs/wk for 25 wks (5 FTH) Foreman (2 - FT) Groundsman @ 40 hrs/wk for 20 wks (4 PTS) Irrigation Tech (FT) Groundsman @ 40 hrs/wk for 15 wks (3 PT) Master Mechanic (FT) Maintenance Mechanic (2 - FT) Skilled Groundsman (2 – FT) Total Staff Charged to CGC = 9.0 FTE Total Staff Charged to CGC = 6.1 FTE FT = Full-time w/benefits; FTH = full-time hourly positions in season (75% FTE); PTS / PT = limited part-time positions (PTS 40% and PT 25% FTE). DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 27 The NGF team finds Captains GC is staffed adequately to provide the conditions the Town desires, when considering the summer help and the experience of some employees. Covid-19 had some impact in the last year as CGC used additional staff to clean and sanitize golf carts, range baskets and other items used in the operation. Repurposing staff hours from time spent on equipment repair or dead wood and tree removal will allow the course to improve both turf conditions and player experience. The equipment maintenance team includes three employees, and shifting toward new equipment would allow for more time allotted to other projects and less time for repair of equipment. The NGF standards in maintenance for high-quality public golf courses in the U.S. are between 8.0 and 10.0 FTEs per 18 holes. Golf Operations Staffing (Clubhouse) Brewster is operating the golf course with Town employees to oversee operations, with additional staff for assistant professionals and other part-time staff for shop clerks and outside staff (carts, rangers, starters). When compared to industry standards Captains GC is staffed adequately to provide the level of service desired by the Town. The NGF standards in golf operations for high- quality public golf courses in the U.S. are between 8.0 and 10.0 FTEs per 18 holes. The reported operations staffing at Town golf courses includes (FTEs provided for comparison purposes only): Captains Golf Course Pro Shop / Golf Operations Staff Full-Time Staff Part-Time/Seasonal Staff Director of Golf Operations (FT) Admin. Assistant (FTH) Asst. Operations Manager (FT) Shop Clerks (4 - FTH) Asst. Pro Shop Manager (FT) Part-Time / Seasonal Counter Staff (2 - FTH) Asst. Golf Professional (FT – currently vacant) PT / Seas. Outside Staff + Range (5 - PTS) Total Staff Charged to CGC = 4.0 FTE Total Staff Charged to CGC = 7.25 FTE FT = Full-time w/benefits; FTH = full-time hourly positions in season (75% FTE); PTS / PT = limited part-time positions (PTS 40% and PT 25% FTE). Staffing Summary The staffing for the Captains GC is comparable to NGF standards for the “typical” public golf course in the U.S. While there are no industry standards that can be referenced to determine the appropriate staffing levels for a golf operation, the industry averages are presented below. The size of the staff needed for a particular golf operation depends on several factors, not the least of which is budget considerations. Personnel costs typically represent the largest single expense item in a golf operation, as is the case for Captains GC. The NGF data on public golf operations in 2020 show averages for full-time staffing at 18-hole public golf courses nationwide (table below). Captains Golf Course Total Facility Identified Staffing – 2020 Facility Operations Staff (FT / PT) * Maintenance Staff (FT / PT) Total Staff (FT / PT) Captains GC (36H) 4.0 / 12.0 9.0 / 12.0 13.0 / 24.0 Industry “Standards” (per 18 holes) Total U.S. Average (per 18 Holes) 3.0 / 10.0 3.0 / 5.0 6.0 / 15.0 * The national standard for operations staff includes administration and F&B. The data for Captains GC does not include F&B nor any allocation for administration. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 28 Review of Technology, Website and Marketing The Town of Brewster golf facilities are currently using the Chelsea system for its Point-of-Sale (POS) and tee-time reservation system at Captains GC. This system also provides good connectivity to the Town finance department. The NGF sees the POS system as an essential component for a successful golf operation, and a good public golf POS should allow golf course managers to integrate the system to its website to allow online purchases, offer online tee-times, reliable credit card processing and customer tracking. Brewster Golf Website It is clear that in 2020 and the foreseeable future, the Internet is the most significant tool in golf course marketing. Golfers, especially when traveling, are using the web to find places to play. As such, the Internet is now the most important single element in a golf facility’s marketing. NGF studies show that upwards of 90% of all golfers will view web content on a regular basis. The website for CGC is easily accessible at www.captainsgolfcourse.com. This site includes most all of the information that is common in websites at successful golf courses, although the site could benefit from greater depth of information and improved visual content to maximize the business potential of the golf facility. NGF has identified the most important features of a golf facility website should include (most all are included in the Captains GC site): • Clear access to all fees and charges, including upcoming season (or off-season) rates. • Lots of pictures of the scenic beauty of Captains, but also of golfers having a great time. • A Map with directions (be sure the current Google Map location is accurate for GPS). • A portal for golfers to sign up for the email program to stay in touch with the club. • An ability to purchase gift cards online. • Full information about golf programming and how to join golfing clubs. • Information about banquet options and venues. • A calendar of events and results - very popular with websites at successful golf facilities. It is essential that the website be kept current for rates, hours, etc. The best sites are the ones that are constantly being updated, so that customers get in the habit of checking them. Maintaining the golf course website should be an ongoing task, most likely included in the activities of the senior staff member most responsible for marketing the facility. Search Engine Optimization The most effective websites are those that can be found easily, and Captains GC certainly fits this requirement. With its strong name match to the facility, the Captains site is found easily in a narrow local search. It is beneficial for golf course websites to be designed so that today’s Web search engines will find it based on key terms people are likely to use. In reviewing search engines such as Google and Bing, NGF found that the Captains GC site is very strong in search engine activity when searched for in the context of golf and Cape Cod, as well as for weddings and banquets in Cape Cod. NGF findings when searching for: • “Captains GC” – Captains site is the first listing. • “Golf Cape Cod” – Captains GC is on the first page of listings • “Brewster, MA Banquets & Weddings” – Captains GC is on the second page of listings • “Cape Cod Banquets & Weddings” – Captains is not on the first five pages of listings DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 29 In an effort to fully enhance the marketing of Captains GC, key words like “banquets” and “weddings” should be part of the search engine optimization strategy for the golf website. Search Engine Optimization (SEO) is the process of maximizing the number of visitors to a particular website by ensuring that the site appears high on the list of results returned by a search engine. The process is optimized by providing important HTML clues (page headings / detailed descriptions) that help search engines (and users) determine relevancy to search clues. E-mail / Newsletter E-mail databases are essential in today’s golf market place, as a means of staying in touch with the golfer customer base via active newsletter. E-mail marketing, with the exception of word-of- mouth and free advertising, is the most cost-effective advertising possible. At present, Brewster golf has a database of around 8,000 to 9,000 emails, which is a very strong network for newsletter distribution to keep up the awareness of Captains GC. Staff reports extensive work to keep contacts up-to-date to ensure a clean e-mail list. Expanding and maintaining the database should be a top priority of management, so that email marketing can be optimally implemented. Social Media Social networking is the fastest growing marketing tool in golf, and golf staff is trying to better promote Captains on social media platforms like Facebook and Twitter. This is best to use as a method to communicate “what’s going on” type of messages (who won a tournament, who had a hole-in-one, etc.), in an attempt to build loyalty and repeat activity. YouTube is the second most utilized search engine on the internet and Captains GC can develop a presence with informational videos of the facilities and golf courses, as well as league, tournament and instructional activities. Technology Summary The review of the POS and other technology systems in place at Captains GC illustrates the strong emphasis staff has placed on being in the forefront of technology. Upgrades and/or additional training in Chelsea capabilities would help CGC improve rounds and revenue. NGF finds that staying ahead in technology is a key to improving this golf operation, along with other physical and operational changes that will be addressed with NGF recommendations later in this report. Golf Courses Marketing Traditionally, NGF recommends marketing budgets for golf courses of at least 1% of total gross revenue, or roughly $36,000 for Captains GC based on recent performance. In markets that rely heavily on tourist participation (like Cape Cod) marketing budgets tend to be closer to 2% of total revenue, or upwards of $72,000 for CGC. Review of data shows the Town did come close to the 2% level as recently as FY2017, with $67,000 spent on marketing. However, this amount has fallen steadily ever since and the FY2020 review shows only $19,500 spent on marketing. Going forward, the key marketing initiatives that should be part of the program for CGC include the items more common in modern (2021) golf marketing, like the electronic methods that typically have much lower cost than more traditional print and media ads (TV/Radio). This would make the budget requirement less important than the effectiveness of electronic and website methods. The Town is currently focusing its marketing efforts on its website, email, selected print media, and the occasional radio or local Cape Cod TV spot. Golf Playing Fees The primary source of revenue to the Town from the golf courses is green, annual fee and cart fees, plus other ancillary revenue. The fees for membership and daily green fees for the upcoming (2021) golf season appear in the tables on the following page. The maximum green fee is the highest amount that Captains will charge, and was set at $77, plus an additional $23 for the cart for a total of $100 for a peak summer weekend morning green fee with cart in 2021. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 30 Daily Green and Other Fees The tables below show selected fee rates at Captains for 2021. The Town has continued a program of instituting fee increases every other year, with the last implemented in 2019 and 2021. The basic pricing convention for Brewster with varied seasonal pricing to reflect demand and a weekday (Mon – Thu) and weekend (Fri – Sun) rate, except in peak season (July-Aug) with a 7- day pricing schedule. Captains GC also offers a back-9 rate for the first hour and a half in the morning that reaches $40 in peak season (down to $26 in spring), as well as a $5.00 junior green fee. In all, the Brewster golf fee conventions are standard for the industry and the market area (more in competitive section). Captains GC Green Fees by Season (2021) 18H GF Mon-Th/Fri-Sun After 1pm Mon-Thu/Fri-Sun After 3pm Mon-Thu/Fri-Sun Jan 1st-April 2nd $41/$41 $26/$26 $26/$26 April 3rd-April 25th $46/$56 $46/$46 $31/$31 April 26th-May 31st $55/$74 $46/$50 $31/$36 June 1st-July 2nd $60/$74 $46/$50 $31/$36 July 3rd-Sept. 6th Before 9am $77/$77 9am - 2pm $74/$74 2-4pm $50/$50 After 4pm $36/$36 Sept. 7th-Oct. 11 $55/$74 $46/$50 $31/$36 Oct. 12th-Oct. 31st $46/$56 $31/$31 $31/$31 Nov. 1st-Dec. 31st $41/$41 $26/$26 $26/$26 Captains GC – Misc. Rentals & Fees Cart Fee (per Rider) 9-H 18-H Daily Fee Player $14 $23 Annual Fee Player $10 $18 Pull Carts $3 $5 Rental Clubs $30 Driving Range Buckets Warm-up (15 balls) $3 Large (70 balls) $10 Small (35 balls) $6 Junior (<16) $2 Debit Cards 5 Sm buckets - $22; $100 of range balls - $60 and $200 range balls for $100 Brewster Golf Fee Summary The NGF notes the following summary of findings related to “standard” pricing at Captains GC: • The golf fee structure includes a wide variance in rates for time of year and time of day, walking or riding. Golfers can play 18 holes of golf at Captains GC for as little as $26 for an off-season round in the afternoon, all the way to $100 for an 18-hole round with cart on a weekend morning in the peak summer season, and almost everything in between. This type of internal segmentation provides a “something for everyone” rate structure, and is consistent with the most successful public golf courses by offering different rates at different times and adding choice to consumers. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 31 • The level of discounting appears to be appropriate for Captains GC, although there may be slightly more discounting to maintain activity than the industry standard. The actual realized green fee revenue per guest round was about $57 at CGC in 2019, an amount that was 60% of the peak green + cart fee at CGC in 2019. NGF has found that successful public golf courses tend to operate with actual realized average green + cart fee revenue per round of about 65% of the highest rack green fee, indicating slightly more rounds played at discounted rates at CGC than the standard. However, we note that this is common in highly season tourist markets where there is a very limited timeframe in which the highest peak fee can be charged. • The market review suggests that Captains GC is priced in line with the desired niche among the local competition. In general, the Town prices its golf courses with the intent of being at the upper end for public courses on Cape Cod. The peak season weekday 18-hole rate of $100 (including cart) at CGC is the highest on Cape Cod (with Olde Barnstable GC at $96 as next closest). CGC weekend pricing at $100 per round is behind Bayberry Hills at $109 and Cranberry Valley at $103 (more later in this report). Annual Fee Player / Membership Fees The table below provides a summary of membership fees at CGC in 2021. The membership program is essentially providing a pre-paid green fee for active players, as there is very little other advantage to membership. There are three levels of Annual Fee Player (membership) playing privileges for Brewster residents/taxpayers. The AFP fee for all residents and non-residents includes unlimited golf with some discounts for cart fees (carts are not required). In addition, AFPs receive a 10% discount on all non-sale merchandise in the pro shop as well as discounted green fees for their guests. The discussion of how this program fits in with the local market is discussed in more detail later in this report. Membership Fees & Dues 2021 Annual Fee Brewster Residents (Taxpayers) Adult Early $1,053 Adult Morning $877 Adult Twilight $468 Junior (12-18) $204 Collegiate (19-25) $407 Non-Residents Adult Early $1,752 Adult Twilight $700 Junior (12-18) $292 Collegiate (19-25) $585 Charter Non-Res. (continuous member since 1985) $1,520 Review of Golf Carts The Town of Brewster operates a fleet of 140 electric-powered EZ-Go golf carts, which are stored in two sperate cart storage sheds. The size of these sheds is barely sufficient to contain the fleet as it exists, and there is no room to adequately store and charge additional carts. The carts are all new in 2020 and under a 4.5-year lease through 2024. The number of carts seems adequate for CGC in normal times, but the fleet was stressed during the single-user requirement for Covid-19 in 2020. The total annual cost of the fleet is around $118,000, and amount that is within the industry- expected $1,000 per cart per year for lease (or purchase) and maintenance of a powered cart fleet. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 32 Having newer carts in good condition is a high priority for Brewster. Having cleaner carts in good working condition with modern features will reflect positively on the golf facility and encourage additional rounds demand. The carts include several key features that are consistent with higher- end golf such as windshields, rain covering for golf bags, divot fill containers and a port to charge cellphones. The cart fleet at CGC is adequate for all but a very small number of extremely busy days and/or large tournaments and CGC does need to rent additional carts for large events and tournaments. The fleet is electric powered, which is generally preferred by golfers, but requires the Town to properly maintain batteries and replace as needed. Merchandise Operations Captains GC has a modest-sized pro shop (1,100 sf) and offers a mix of merchandise offered for sale, highlighted by logo-emblazoned wearable items. CGC tends to attract a mix of customers, with a higher-end daily fee customer and more modest annual fee patrons. Merchandising at Captains consists of mostly impulse items (balls, tees, gloves, hats, etc.), extensive soft goods (mainly logoed shirts, vests & sweaters) and some clubs and club repair. The items that tend to sell best at facilities like Captains GC are the obvious impulse items as noted above, but also logoed merchandise like shirts and outerwear. Brewster is not active in selling golf clubs and other hard goods, which is consistent with the trend NGF has documented in on-course retailing not wanting to compete with “big-box” retailers or the internet. Review of data shows the Town generated over $277,400 in total gross revenue from merchandise in 2019, declining to $203,200 in 2020 with decline due largely to Covid-19 restrictions and closures. For 2019, the average golf shop expenditure per round was $3.78 at Captains GC compared to a national “standard” for pro shop revenue of $2.48 per round with an expected direct cost of sales at 70% to 75% (was 80.6% at CGC). As the total margin on merchandise is only around 30% (best case), the net income will never be significant in merchandise sales. Rather, this is a service to golfers to make the round more enjoyable and help bring them back for more. Food and Beverage Operations Ideally, every golf facility (regardless of type) needs to have some type of food and beverage operation. F&B operations at golf facilities tend to achieve two goals: (1) provide direct revenue; and (2) help increase the rounds and other revenues at the facility. The NGF does not expect a high volume of net revenue from F&B operations, but high-quality F&B service correlates well with success in public golf. The typical 18-hole public golf course will earn about $6.10 per round in food and beverage, less direct costs, leading to a net return to the owner of about 10%. This would be considered “typical” for a regulation public golf course unless there was additional space for large banquets, parties, meetings, luncheons, etc. Having appropriate space available to host large functions will certainly add to the potential revenue at golf facilities, both directly (increased F & B sales) and indirectly (increased green and cart fees). The estimated 10% return on F&B operations tends to hold regardless of whether the operation is leased or self-operated by the municipality. Captains GC F&B Service The basic food and beverage service provided at Captains GC includes the main bar and grill service under the brand Freeman’s Grill. This grill operation provides a more upscale level of service than is common at typical municipal golf courses, but still includes a walk-up / take-away form of restaurant service that is preferred by public golf customers. The grill seating area includes space for about 90+/- patrons, plus additional outdoor seating. The pavilion at Captains provides additional revenue for events, tournaments and some other large functions for up to 200 patrons. The total space can be modified for banquets and still accommodate daily golfers either at the bar or with outdoor seating (can host banquet and serve golfers simultaneously). DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 33 The grill at Captains GC is open daily for lunch and other service when the golf course is open. Freeman’s Grill offers an extensive menu of soups and salads (from $6 to $10), appetizers ($10- $12), burgers ($14), sandwiches ($10-$14) and a catch of the day (market price). Beverages include a selection of wine, beer (domestic and imports) and liquor. The private vendor (Freeman’s Grill) owns the liquor license for the operation. Freeman’s Grill is also programmed with Happy Hours and selected specials. The basic set up at the facility provides an opportunity for significant enhancement of non-golf activity (non-golf lunches, banquets, parties, etc.). F&B staff reports a large number of banquets or parties each year, with extensive use of clubhouse and pavilion facilities for both golf and non-golf events. Total Revenue Estimates Data presented from the Town show Freeman’s Grill earning upwards of $875,000 in total gross revenue as recently as 2018, paying $42,500 to the Town (effective rate of 4.8%). The Town collected $35,000 in base rent + 2.0% of gross revenue over $500,000 ($875,000-$500,000 = $375,000 x .02 = $7,500). The Covid-19 pandemic clearly hit this business hard in 2020 and 2021 as much of the indoor dining services have been closed, but the Town has made adjustments in concession payments, reducing to $28,000 in 2020 and $20,000 in 2021. Still, the vendor has adjusted and the demand for F&B service outside has become more popular with customers, possibly opening an opportunity to expand this service and space available to provide it. Banquet and Events Operation CGC includes primary indoor space capable of hosting up to 200+/- patrons. The space was originally designed to be open-air, but was enclosed to add carpet, HVAC and restrooms. This level of size, flexibility and accommodation is rare at public golf courses and provides great opportunity for CGC to capitalize and grow this segment of the facility, at a time when golf demand and derived golf revenue is not growing nearly as fast. Staff reports a very active event calendar prior to 2020, with a total of 84 functions lost to Covid-19 in 2020. Beverage Cart Operations Beverage cart operations at CGC can produce modest revenue if run properly with well-trained servers. This service is not expected to contribute profit in a public golf operation, but rather is viewed as a service to golfers, ultimately leading to more repeat sales of green fees and cart fees. Most public golf course operations earn less than $1.00 per round of golf on the beverage cart, with a total cost of sales at 40%. Sales can be improved by offering credit-card processing directly on the beverage cart through a remote system linked to the POS. Captains GC Driving Range Operation The driving range at public golf courses can be a significant revenue source if it has the proper characteristics. These key features typically include good quality turf (versus artificial mats), good golf balls, adequate size (270+ yards) and convenient accessibility to the parking lot or clubhouse. The CGC range has some of these characteristics, but its location is a significant weakness. Over the past three years, the Captains range has generated revenue of approximately $1.60 per round, which is lower than the U.S. average for public courses of $3.00 per round (NGF 2020 survey). As the range is one of the highest margin revenue centers in a golf operation, any growth in this area will lead to improvements in facility net revenue. The Town has implemented many of NGF’s common recommendations to enhance range revenue, including the automated range ball dispensing system and offering a pre-loaded swipe card for multi-use range discounts. Given its location, it is difficult to imagine other changes leading to higher range revenue at this facility. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 34 Programming and Organized Golf Activities One of the keys to successful public golf facility operations is the continued promotion and hosting of organized activities and programs, such as leagues, outings, tournaments and player development. These activities are important to maximizing rounds activity at public golf courses and NGF observations show Captains GC being very active in promoting a strong calendar of events. These events tend to stimulate activity and encourage repeat play, generating more rounds per golfer than at courses that do not have an active event calendar. Leagues Captains GC is very active in hosting organized leagues that play regularly on various days during the week in golf season. These leagues serve as an important revenue supplement to standard daily fee play. Staff reports several active leagues at Captains with events every day during the week in golf season. Many of these leagues are 18-hole events, allowing for use on one 18-hole course at CGC while the other 18 is open for public play. These leagues are a great way to introduce new players and stimulate increased activity. The golf professionals are very active in the planning and organizing these leagues. Total rounds from leagues are not directly counted by the course, but NGF estimates that league play represents a significant portion of member activity. This represents a key source of late afternoon weekday rounds and perhaps this is a market that can grow in the future. Outings/Tournaments NGF interviews with Brewster’s golf staff suggests a robust tournament and outing schedule at Captains GC prior to the slowdown related to Covid-19. With 36 holes, CGC is capable of hosting very large events with up to 280 players, or host a full field 18-hole event and still have a full 18 holes open for regular play. In a typical non-pandemic year, Captains will host around 35+/- events with at least 60 players, and this includes two ultra-large events that host over 160 players (in May) and a 250-player event that was added in 2019. Most events typically seek out 18-hole courses that have large food & beverage capacity and covered areas to gather after play is completed, like the pavilion at CGC. The Town is currently requiring these tournaments and events to use Freeman’s Grill to provide F&B service (no outside food or beverage). Successful public golf courses should have at least 5% to 10% of total rounds generated from outings and tournaments. Lessons and New Player Development We note that player development will be one of the critical elements to the long-term viability of Captains GC, and this should remain as a point of emphasis for the Town. At present, the Town is employing two PGA golf professionals on staff that manage a modest lesson program. The NGF has documented that a critical element to the long-term viability of public golf courses is player development, especially a strong Junior Program, and it is important that these initiatives are continued into the future at Captains GC. Player development activity at CGC by PGA pros on staff, including the Head Golf Professional. Staff is allowed to earn extra income through lessons provided these lessons are given on their own time when not working “on the clock” for the Town in facility operational responsibilities. Player development programs at golf courses are important for generating interest in golf and creating future customers, thus total revenue derived from the programs is much less important. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 35 Other Operational Observations Other issues related to the operation of Captains GC that should be considered by the Town that could have direct impact on activity and revenue at the course: • Customer Service - Strong customer service can be a key differentiator in building customer loyalty. High level service at a golf course begins the moment the golfer sets foot on the property, beginning with a friendly welcome (especially for faces that staff may not have seen before). NGF generally recommends strategies such as staff training and establishment of service standards & measurable metrics – monitored through periodic customer surveys and occasional secret shoppers - to make sure that the standards are being consistently met or exceeded. • Club Rentals and Other Services – Brewster currently has 20 sets of Callaway rental clubs (premium brand) to offer patrons needing this equipment. In an effort to expand service to accommodate less frequent golfers, CGC should continue to make high- quality rental club sets available to golfers, and communicate this to customers. Staff reports a total of 344 sets rented in July-August 2019, for $3,000 in direct revenue and additional revenue in green and cart fees from players. The key revenue sources for the Town are green and cart fees, and rental sets help the facility to sell more rounds. The rental sets themselves are not typically a strong direct profit center. The rental club service has been suspended in 2020-21 due to Covid-19 restrictions. • Corporate Accounts – Captains GC currently has corporate accounts with several Cape Cod area lodging properties that includes direct billing to allow the hotels to collect golf playing fees directly from their guests. This concept is important for area hotels to offer golf packages and should enhance tourist golf rounds at Captains GC. CAPTAINS GC RECENT OPERATIONAL PERFORMANCE The operation of Captains GC is comparable to a high-level public golf business, with primarily revenue sources (green fees, memberships, cart fees, merchandise sales, etc.) and an expense structure derived primarily from revenues. Direct expenses to operate the facility are borne entirely by the Town, with the exception of direct F&B operating requirements. As is typical in public golf operations, much of the total expense is fixed in that the expenses must be borne regardless of how many rounds are played. The following paragraphs summarize the activity, revenue, and expenses for Captains GC for the last five full fiscal years of operation (FY2016-2020). In summary, it appears that CGC is performing with activity, revenue and expenses that are above industry standards. This is significant given the size of the Brewster market and the immediate local competition. NGF has observed a strong profit on the operation driven largely by the elimination in FY2020 of the large debt service related to the 1998 construction of the second 18 holes. The review below covers rounds activity, revenues and operating expenses incurred for each full year at CGC from 2016-2020, with a partial review of FY2021 (through the 2nd quarter). Rounds Played and Annual Fees at Captains Golf Course The table below shows total rounds by type since 2016. The review shows a modest decline trend from 2016-2020, followed by a huge spike in rounds in FY2021. Like many golf facilities in the U.S., Captains GC saw a tremendous increase in rounds activity due to Covid-19 restrictions and the availability of golf as one of the few “safe” activities for people to undertake. The 84,700+ rounds hosted in calendar-year 2020 was the most in any single year since 2006 (87,746 – the highest in any year since 2000). As we move into 2021 and beyond, retaining this influx of new golfers will become a key challenge for golf operators. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 36 In comparison, the total U.S. experienced a significant increase in rounds played of 13.9% for calendar year 2020, the largest increase in more than a decade. This followed a 1.6% increase in 2019 that came after a -4.8% decrease in 2018. Longer term, rounds of golf had declined an average of -8.4% per-course between 2008 and 2017. By comparison, NGF and Golf Datatech (Appendix B) record that rounds were up 2.7% in Massachusetts in 2019, followed by a strong 18.0% increase in 2020. The total U.S. standard for rounds played (“starts”) at an 18-hole golf course is at 31,527 for 2019. A summary of total rounds by year at Captains GC since 2016 is shown in the table below: Captains Golf Course Total Rounds Played by Type (2016 – 2020) FY2016 FY2017 FY2018 FY2019 FY2020 % of Total Guest Rounds 18-H 25,864 23,269 22,087 21,789 19,710 30.2% Pre-Paid 2,321 2,074 2,164 1,658 715 2.4% Back-9 1,411 1,719 1,755 2,121 2,219 2.5% Twilight 6,015 6,717 6,416 6,299 5,945 8.4% Misc. 4,185 3,094 3,864 3,198 1,578 4.3% Total Guest Rounds 39,796 36,873 36,286 35,065 30,167 47.8% Member Rounds 18-H 27,455 26,991 26,164 25,863 26,178 35.6% Back-9 6,561 7,095 6,553 5,786 4,539 8.2% Twilight 6,627 5,026 5,788 6,517 7,653 8.5% Total Member Rounds 40,643 39,112 38,505 38,166 38,370 52.2% Combined Total 80,439 75,985 74,791 73,231 68,537 100% Annual Change % -5.5% -1.6% -2.1% -6.4% Source: Town of Brewster Golf in this region is very seasonal, with the bulk of play at CGC (76.5%) occurring between the months of May and September. On average since 2016, Captains GC has hosted golf for an average of 255 playable days per year. Depending on the weather conditions, fall and spring can be playable periods. Conversely, the early arrival of winter can wreak havoc on play in October and November, while an extended winter or very wet spring can also delay the start of golf season. The seasonality of play at Captains GC is reflected in the chart from rounds data presented below. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tot % of Total Rounds 1.0% 1.3% 1.6% 3.9% 10.2% 14.2% 19.7% 18.9% 13.4% 9.5% 4.3% 1.8% 100% Source: Town of Brewster – FY2016-2020 data Memberships Captains GC offers golfers an option to pre-pay for golf through the issuance of annual golf fees or memberships. These memberships come in several types, divided between residents and non- residents and for various time-of-day restrictions. During the Covid-19 crisis in 2020, the Town offered a two-year membership that allowed golfers to pre-pay for membership through 2021, before the new 2021 price increase was implemented. The result of this program was a large influx of 2-year members, which may have impact in reducing the single year renewal for 2021-22. The table below shows the membership history by type from 2016-2020 at CGC: DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 37 Captains Golf Course Total Memberships by Type (2016 – 2020) Memberships FY2016 FY2017 FY2018 FY2019 FY2020* Resident Early 316 300 300 306 321 Resident Morning 286 307 276 269 220 Resident Twilight 86 86 101 109 130 Resident College 11 10 12 16 28 Resident Junior 26 18 13 12 17 Total Resident Memberships 725 721 702 712 716 Non-Res. Charter 5 5 5 5 4 Non-Res Early 209 210 199 200 216 Non-Res Twilight 34 38 68 61 101 Non-Res College 1 2 2 4 16 Non-Res Junior 3 2 5 9 10 Total Non-Res. Memberships 252 257 279 279 347 Total Off-Season 48 46 56 76 79 Grand Total Membership 1,025 1,024 1,037 1,067 1,142* Source: Town of Brewster *Includes 2-year members (239), 1-year members (824) and Off-season (79). The total number of passes has been steady in the last few years, with substantial increase in 2020 with the introduction of the two-year membership. As of January 2021, CGC has sold 239 of these two-year memberships that now account for 21% of total membership at the course. These pre-paid green fee arrangements are common at public golf courses nationwide and in this local market, and offer frequent golfers an opportunity to lower their average cost per round while providing significant up-front revenue to the facility. However, as we see below, the program is allowing for significant discount for a large portion of the activity at Captains GC, although this was mitigated somewhat in FY2020 due to Covid-19 and the course closure in March-April of 2020: Captains Golf Course Membership Analysis (2016 – 2020) FY2016 FY2017 FY2018 FY2019 FY2020* Total Number of Members 1,025 1,024 1,037 1,067 1,142* Total Membership Revenue $891,060 $925,028 $926,351 $986,785 $1,293,344* Average Revenue per Member $869.33 $903.35 $893.30 $924.82 $1,132.53* Total Member Rounds 40,643 39,112 38,505 38,166 38,370 Avg. Rounds per Member 39.7 38.2 37.1 35.8 33.6 Avg. Rev. per Member Round $21.92 $23.65 $24.06 $25.86 $27.15** Source: Town of Brewster *Includes 2-year members (239), 1-year members (824) and Off-season (79). **Avg. revenue is re-calculated to include 2-year memberships with $251,667 in FY2021. Member – Daily Fee Golf Balance At present, total rounds played at Captains GC are divided between daily fee players who pay a unique fee for a single round of golf, and golf members who pay an annual fee for unlimited golf during the year. Traditionally, annual fees account for passholders play about 53% of total rounds at CGC and 47% daily fee play. However, despite the high volume of rounds, these passholders generate generated only about 37% of total green fee revenue over the last five years. On a per round basis, members paid around $25.86 per round for green fees (2019) compared to an average of $48.45 for daily fee players. This represents a discount of about 47% for members compared to the 25% to 35% discount that is the target for public courses operating with memberships (also known as semi-private). DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 38 One key to enhancing revenue at Captains GC is to increase the inventory of tee times that can be sold to the public at a premium price. The Town is managing this inventory appropriately by providing one of the two courses with alternating tee times in 2-hour segments between members & guests (e.g., 8:00am to 10:00am for members & 10:00am to 12:00pm for guests). Then on the second course allocating 80% of the tee times for guests and the balance for members. This is the Town taking advantage of its 36-hole layout to maximize non-member participation and helping to maximize the number of higher-paying daily fee customers it can accommodate. Recent Revenue Performance at Captains Golf Course The table below shows the total revenue broken out by source since 2016. For comparison, the NGF has identified through past research that the ‘average” revenue for an 18-hole municipal golf course was about $1.2 million in 2019. As shown, Captains GC is vastly exceeding this standard, with an especially strong first six months of FY2021. This strong level of revenue performance is reflective of both the higher-than-average strong rounds activity noted above, coupled with an equally higher-than-standard average revenue earned per round (more in section that follows the table below). We note that despite a large increase in rounds in calendar-year 2020, total revenue was not as strong due to ancillary revenues and the impact of Covid-19 closures and restrictions, as well as timing of the fiscal year. We note that the food and beverage revenue is the rent (base + percentage) paid to the Town by the operating vendor and is not reflective of actual gross revenue (as presented earlier). Captains Golf Course Total Golf Operations Revenue by Source (2016 – 2020) Revenue FY2016 FY2017 FY2018 FY2019 FY2020 Avg '16-20 Pct. Of Total Member Dues & Fees $891,060 $925,028 $926,351 $986,785 $1,293,344 $1,004,514 26.8% Green Fees 1,794,795 1,712,041 1,690,945 1,691,973 1,519,109 1,681,773 45.0% Cart Fees 656,773 630,135 631,014 623,271 535,807 615,400 16.4% Driving Range 131,090 116,728 125,159 131,768 111,033 123,156 3.3% Snack Bar Rent 50,000 51,000 42,500 36,952 28,202 41,731 1.1% Pro Shop Sales 307,731 284,018 265,433 277,457 203,224 267,573 7.2% Other/Misc. 2,510 16,509 15,434 1,667 0 7,224 0.2% Total Revenue $3,833,959 $3,735,459 $3,696,836 $3,749,873 $3,690,719 $3,741,369 100.0% Annual Change -2.6% -1.0% 1.4% -1.6% Total Rev/Rnd $47.66 $49.16 $49.43 $51.21 $53.85 $50.15 Direct Cost of Sales Merchandise $265,325 $261,782 $234,836 $204,440 $163,795 $226,036 Gross Margin $3,568,634 $3,473,677 $3,462,000 $3,545,433 $3,526,924 $3,515,334 Source: Town of Brewster. *F&B revenue is rent to City (base + pct.). Average Revenue Analysis The total facility-wide average revenue per round was $51.20 in 2019, of which $45.09 was derived from green and cart fees and the remaining $6.11 derived from ancillary sources like driving range, merchandise sales and the F&B rent. The NGF average for public golf courses in the U.S. was $38.71 for total revenue per round, with $29.81 from golf playing fees (green, cart, membership), plus an additional $4.65 for F&B, $2.71 for merchandise and $1.54 for other (range, instruction, etc.) for a total of $38.71 per round. In general, Captains GC is earning higher revenue per round in all categories, with actual FY2019 (last full non-pandemic year) average revenue per round compared to standards shown below: DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 39 Year CGC in FY2019 (36-H) Generally Accepted U.S. Average Rounds 73,231 31,500 (per 18-H) Green + Cart + Passes $45.09 $29.81 Golf Shop Merchandise $3.79 $2.71 Food & Beverage $0.50* $4.65 Driving Range $1.80 $1.50 Other $0.02 $0.04 Total $51.20 $38.71 *F&B revenue in Brewster is from contract rent, as opposed to consumer spending in the U.S. average. Captains GC Expenses The table below shows total on-site operating expenses by major line-item since FY2016. The table includes direct Town expenses, excluding expenses for F&B service. These expenses had been increasing from 2016-2019, until a drop in 2020 related to Covid-19. The Town does not charge the golf course for services (accounting, legal, payroll, etc.) nor do these expenses reflect the capital expenditures to improve the courses (addressed separately). The overall expenses to operate CGC are comparable to national standards for public golf courses (the NGF standard for total operating expenses is $1.2 million per 18 holes, with 55% for labor and 58% for golf course maintenance (including labor). Direct expenses for personnel are typically the largest for golf facility operations, as is the case with Captains GC. Total labor costs for Lakewood courses are averaging around 66.5% the last five years, much higher than the industry standard of 55%. Captains Golf Course Total Golf Operation Expenses by Category (2016 – 2020) Operating Expenses* FY2016 FY2017 FY2018 FY2019 FY2020 Avg '16-20 Pct. Personnel Expenses Full-Time Maintenance $458,397 $547,282 $563,501 $573,351 $588,859 $546,278 20.9% Part-Time Maintenance 194,813 223,099 240,563 280,357 221,794 232,125 8.9% Full-Time Admin 200,583 232,625 238,714 245,278 253,962 234,232 9.0% Part Time Admin 159,730 225,675 223,655 206,468 161,572 195,420 7.5% Overtime + Longevity 29,990 57,296 64,946 60,558 58,536 54,265 2.1% Fringe Benefits 389,481 410,000 490,770 528,183 543,203 472,327 18.1% Sub-Total Personnel $1,432,994 $1,695,977 $1,822,149 $1,894,195 $1,827,926 $1,734,648 66.5% General Expenses Repairs, Maint. & Supplies $357,042 $449,211 $477,299 $432,867 $303,622 $404,008 15.5% Clubhouse Maint. & Supplies 54,793 51,335 90,695 73,466 69,299 67,918 2.6% Cart Lease 119,986 119,986 119,986 119,986 118,271 119,643 4.6% Utilities 114,959 130,427 128,311 135,375 116,667 125,148 4.8% Credit Card Processing 36,425 40,595 46,461 48,924 56,231 45,727 1.8% Marketing 58,586 67,173 31,374 22,554 19,554 39,848 1.5% Insurance 57,000 57,000 57,000 72,019 0 48,604 1.9% Other 28,428 27,032 25,486 24,189 17,920 24,611 0.9% Total General Exp. $827,219 $942,759 $976,612 $929,380 $701,564 $875,507 33.5% Total Operating Expenses $2,260,213 $2,638,736 $2,798,761 $2,823,575 $2,529,490 $2,610,155 100.0% % Change vs Previous Year 16.7% 6.1% 0.9% -10.4% Total Expenses / Round $28.10 $34.73 $37.42 $38.56 $36.91 $34.99 Source: Town of Brewster *Operating expenses do not include direct costs for F&B operation. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 40 Summary Financial Performance (2016-2020) In reviewing all revenues and expenses, the overall net performance of Captains GC shows the operation to be profitable before the impact of debt service and capital are considered. Given that the $840,000+/- debt service requirement has been fulfilled as of FY2020, the Town can expect the Captains GC operation to provide net income to support additional capital projects. In the table below, the NGF provides a review of the Captains GC business from the perspective of the Town. The review shows that while the Town has been close to break-even the last few years of operation, this comes at the expense of deferral of some maintenance and capital items. Captains Golf Course Summary of Performance (2016 – 2020) FY2016 FY2017 FY2018 FY2019 FY2020 Avg '16-20 Rounds (Starts) 80,439 75,985 74,791 73,231 68,537 74,597 Revenue Golf Fee Revenue $3,342,628 $3,267,204 $3,248,310 $3,302,029 $3,348,260 $3,301,686 Ancillary Revenue 491,331 468,255 448,526 447,844 342,459 439,683 Total Revenue $3,833,959 $3,735,459 $3,696,836 $3,749,873 $3,690,719 $3,741,369 Total Rev/Rnd $47.66 $49.16 $49.43 $51.21 $53.85 $50.15 Direct Cost of Sales (COS) Merchandise $265,325 $261,782 $234,836 $204,440 $163,795 $226,036 Gross Margin $3,568,634 $3,473,677 $3,462,000 $3,545,433 $3,526,924 $3,515,334 Operating Expenses Total Personnel Expenses $1,432,994 $1,695,977 $1,822,149 $1,894,195 $1,827,926 $1,734,648 General Expenses $827,219 $942,759 $976,612 $929,380 $701,564 $875,507 Total Expenses $2,260,213 $2,638,736 $2,798,761 $2,823,575 $2,529,490 $2,610,155 Operating Income (Loss) $1,308,421 $834,941 $663,239 $721,858 $997,434 $905,179 Less: Debt Service (P&I) $828,050 $829,235 $836,277 $836,637 $841,837 $834,407 Capital Outlay $159,679 $340,026 $183,068 $52,617 $88,708 $164,820 Net Income After Debt (Loss) $320,692 ($334,320) ($356,106) ($167,396) $66,889 ($94,048) Source: Town of Brewster DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 41 Year-to-Date 2021 Captains GC Performance The operational performance in the first six months of FY2021 (July through December 2020) shows Captains GC well ahead of FY2020 performance and ahead of the FY2021 budget. We note that the large increase in July-September 2020 was driven by green and cart fee sales, while other ancillary sources were lower due to Covid-19 closures and restrictions. CGC hosted 64,667 rounds in the first six months of FY2021, compared to 48,446 in the first six months of FY2020 (33.5% increase). The membership revenue is also lower, but many of those sales occur in January and February, so catch up is expected. Total facility revenue was just over $2.53 million in the first six months of FY2021, compared to a budget of $3,641,000 (69.5% of budget). However, expenses in FY2021 were also ahead of budget, with $1,940,568 expended through December 2020 (includes cost of sales), or roughly 55.4% of the total annual budget of $3.5 million. Captains Golf Course Year-to-Date Performance Comparison (through December 2020) Actual FY2021 Rounds Played (July – December 2020) 64,667 Revenue Total Member Dues & Fees $59,213 Green Fees 1,611,390 Cart Fees 572,368 Driving Range 120,366 Snack Bar Rent 10,000 Pro Shop Sales 151,683 Other/Misc. 8,767 Total Revenue $2,533,787 Less Cost of Sales: (COS) Pro Shop Merchandise 51,172 Gross Margin $2,482,615 Golf Course Expenses Full-Time Maintenance $280,196 Part-Time Maintenance 165,890 Full-Time Admin 130,326 Part Time Admin 136,960 Overtime + Longevity 44,809 Fringe Benefits 378,226 Sub-Total Personnel $1,136,407 Repairs, Maint. & Supplies $274,272 Clubhouse Maint. & Supplies 52,021 Cart Lease 74,000 Utilities 70,568 Credit Card Processing 52,669 Marketing 9,856 Insurance 71,827 Other & Indirect 147,776 Total General Exp. $752,989 Total Expenses $1,889,396 Operating Income (before Capital & Other) $593,219 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 42 SUMMARY – CAPTAINS GOLF COURSE Captains GC is a good quality golf facility with a mix of amenities that is consistent with economically successful public golf courses. The facility is located at the eastern end of Cape Cod, but still convenient for golfers although access to the course requires some navigation through local streets and good signage is needed for tourist golfers. A summary of NGF key findings on the CGC facility and operation include: • Captains GC includes two 18-hole golf courses giving the facility a large capacity to host a high volume of events, outings and tournaments, while still supporting its regular- play constituency. The two courses are very similar, and each includes a mix of old and new. This blending in course holes affects a number of elements, such as irrigation, bunker style and cart paths. • The overall property condition appeared good in early 2021, but the facility does have some significant capital needs, including some elements that are at or nearing the end of their expected useful life. Given the high importance the Town places on water use and quality, maintaining the most modern and efficient irrigation systems will be a high priority for future capital spending. The original irrigation system installed in 1985 has already been replaced, and the system installed in 1998 is now due for upgrade sometime in the next 2-3 years. • In all, the NGF identified some $6.2 million in capital projects for the next five years, including $3.5 million for the golf courses, $2.3 million for maintenance facilities & equipment, and another $370,000 for clubhouse enhancements. The most expensive of these capital requirements will be irrigation replacement and maintenance equipment. In the five to 10-year horizon, capital requirements should level off at around $3.2 million, if the Town elects to replace the newer (2004) irrigation system before 2030. • The clubhouse facilities at Captains GC provide a strong complement to the golf operation, and provide opportunity to enhance facility revenue. While the clubhouse is in good condition, some improvement to basic systems and an upgrade/expansion of the outdoor dining area would go a long way to enhancing the appeal of Captains GC. • The Town has chosen to self-operate its golf facility with all Town employees with the exception of a food and beverage service contract. This exact form of operation is still the most common in public-sector golf nationwide, and offers the Town the most direct control for maximum benefit to the community. • The staff employed by the Town to operate and maintain Captains GC is appropriate and close to expected standards for this type of golf facility operation. The Town has high expectations for the level of service and facility quality, and this service quality is leading to very strong rounds and revenue performance. A large staff of properly trained professionals is required to provide the level of quality that is desired by the Town so staffing is proper at Captains GC. • The marketing of CGC appears to be modest, but with staff showing a clear effort to enhance and improve in the immediate future. As the facility is located in a tourist- oriented market, adoption of a modern, technology-driven marketing program will be necessary to attract the customers needed to sustain (or grow) rounds and revenue. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 43 • Playing fees for golf and concessions are appropriate at Captains GC, and clearly place the facility in the upper range for public golf in this market, which is consistent with the quality of golf facility product that is offered. In addition, the operators are doing a good job of maintaining a realized average daily rate (ADR) that is consistent with well- performing higher-end public golf courses. Review of data shows that the total ADR for non-member rounds at CGC is 60% of the highest peak green + cart fee, showing the club is less reliant on a large volume of heavy discounts in order to sustain rounds activity. • The golf fee structure includes a wide variance in rates for time of year and time of day, walking or riding. Golfers can play 18 holes of golf at Captains GC for as little as $26 and as high as $100 and everything in between. The Town is also offering an attractive pre-paid annual fee agreement (membership) that is also priced appropriately for this market. This pricing structure offers “something for everyone,” and is consistent with the most successful public golf courses by offering a wide variety of rates and consumer choices. • After a few years of consistent activity, Captains GC saw a tremendous increase in rounds activity due to Covid-19 restrictions and the availability of golf as one of the few “safe” activities for people to undertake. The 84,700+ rounds hosted in calendar-year 2020 was the most in any single year since 2006. As we move into 2021 and beyond, retaining this influx of new golfers will become a key challenge for golf operators. • Captains GC produced total top-line revenue of just over $3.69 million in FY2020, an amount that has been relatively consistent over the last four years. The large growth in rounds activity has also led to an expected spike in FY2021 revenue, which is already well ahead of budget after the first six months. • With total direct operating expenses totaling around $2.8 million the last three years, it is clear that Captains GC can comfortably cover its operating requirements and address key capital items that have been deferred in recent years. The most significant capital spending the Town has been making at CGC was the annual debt service of about $840,000 to cover the development of the second course addition. This indebtedness was fully paid in FY 2020, freeing up a large portion of funds to address deferred maintenance items. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 44 External Factors Affecting the Operation of Captains GC As we plan for the future operation of the Captains Golf Course, NGF has provided a summary of important external factors that have direct effect on the operation of this facility. This includes an assessment of local demographics and economy, golf industry trends, and a review of golf demand and pricing in the eastern Cape Cod market. NGF will also provide a review of other golf courses in the area that compete with Town golf courses for market share. We will then summarize these factors and how they relate to the continued operation of Captains GC. In summary, the NGF finds that the market environment for the continued operation of CGC presents many challenges and opportunities. The Cape Cod area remains one of the most attractive summer destinations, and participation in golf appears to be a key component of the Cape Cod summer lifestyle. The immediate Brewster area includes many lodging facilities, resorts and housing communities that support economic activity and golf demand in the area. This market area has become very popular with both seasonal and transient summer visitors, which is a key market to attract in order to sustain golf facility businesses. While there is a strong and thriving permanent population in Brewster, these residents are not numerous enough to support golf operations and thus attraction of visiting golfers is necessary. A summary of key findings on external factors that impact the operation of the Town’s golf course are noted below: MARKET OVERVIEW Captains GC is located in the eastern edge of Brewster and in the heart of eastern Cape Cod, making the courses immediately proximate to one of the most attractive summer destinations in the northeast U.S. The region includes a full range of activities to attract residents, seasonal residents, and tourists, including beaches, golf, fishing and pleasure boating. Barnstable County is projected to have around 212,000 residents, supplemented by the high number of seasonal (summer-only) residents that populate the area’s housing units. As such, the NGF expects that the continued support of Captains GC will rely on participation from the large visitor market to the area, in addition to permanent residents. Demographic Analysis – Local Permanent Residents The local demographic and economic factors affecting the demand for public-access golf in this market show that the Cape Cod region has demographic characteristics that correlate to strong golf demand, which is then supplemented by the large seasonal, tourist and retiree population in the Brewster area. The table in Appendix C summarizes key demographic measures of population, income and other trends that relate to golf participation. The table below provides a summary of key demographic and golf demand measures for various market rings around Captains GC, Barnstable County, the State of Massachusetts and the total U.S. A summary follows: DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 45 Market Data Comparisons 2020 Captains GC 5-Mile Radius 10-Mile Radius Barnstable County Population Est. 2019 27,281 57,592 212,285 Population 2024 Proj. 27,719 58,527 212,766 Med. HH Income (2019) $78,913 $72,253 $74,182 Median Age (2019) 59.1 59.2 53.4 Participation/Rounds Index* 145 / 363 134 / 372 134 / 294 Number of Golfers 3,863 7,038 25,941 Rounds Potential (res.) 176,164 359,626 1,000,891 Est. Rounds (in-market supply) 206,832 372,277 1,171,642 Source: NGF Consulting, Tactician Corporation, Applied Geographic Solutions. * Golf Participation and Rounds Index: Estimated number of golfing households / average rounds played in a particular geography compared to the national average golfing household (US index = 100). • The local market around Brewster golf courses shows a modest permanent population, with over 58,500 residents within 10 miles in 2019. Population growth rates in the subject markets suggest a stable permanent population in the local market rings and Barnstable County. We note that the above figures are based on permanent population and do not consider the large seasonal population in the area. • The Median Age in the local market is significantly higher than the national median age of 38.3 years, reaching as high as 53.4 years for Barnstable County. This is indicative of the higher proportion of older age residents in the permanent population (i.e. “retirees”). In general, the propensity to play golf with greater frequency increases with age, making relatively older markets more attractive to golf facility operators, all other factors being equal. • The Median Household Incomes in the local market areas around Captains GC are comparable to the State of Mass. Overall, but higher than the total U.S. However, we note that these income figures do not consider transfer payments that are common with large retiree populations living off their “nest egg.” In general, higher income residents are more likely to participate in golf, and they play more frequently than lower income residents. The higher incomes in Brewster would suggest a tolerance for higher golf playing fees among the local permanent population. • The NGF estimates there are a total of about 7,000 golfers potentially demanding over 359,600 rounds of golf annually (51.4 rounds per golfer per year) in the 10-mile market around Captains GC. The NGF has estimated that seasonal residents and tourists can add an additional 325,000 +/- rounds of demand to the area’s golf market, mostly during the peak summer months of June – August. It is expected that this golf demand would be serviced by the golf facilities available for use in this and other nearby Cape Cod Towns that offer golf facilities. • The local market around Captains GC shows generally higher-than-average golf participation, and substantially higher-than-average rounds demand. This finding is indicative of the basic nature of Brewster as a golf destination, where golfers from all over the world aspire to reside and/or retire and participate vigorously in golf. Combined with this resident and seasonal resident population, it is clear that Captains will need to attract their share of tourist golfers to generate the rounds and revenue needed to sustain operations. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 46 Key Climate and Economic Factors The NGF has examined certain economic factors that have the potential to affect the demand for public golf in the Brewster market area. Following are some key observations highlighting the economy, transportation, and visitation characteristics of Brewster and the surrounding Cape Cod market. In general, Brewster / Cape Cod have traditionally positive economic characteristics as they relate to continued operation of Town owned golf courses. The NGF has focused its review of the local market area on data and characteristics that were present in 2019, understanding that the 2020 market status represented an economy reflective of a special circumstance related to Covid- 19 and its particular impact on tourist/seasonal economies like Cape Cod and Brewster. Climate As with any outdoor recreation, weather impacts golf participation. NGF data estimates that almost all golf is played with temperatures between 50- and 90-degrees Fahrenheit, although evidence suggests greater tolerances at lower temperatures in this local market. Understanding local weather patterns helps determine the number of golf playable days. The data suggests that golf on Cape Cod can be realistically played in a 7-8-month golf season, although Cape Cod's weather is typically more moderate than inland locations leading to some additional winter golf days available. With an average of ±16 inches of precipitation and 39 rain days during the five-month summer season, this golf market is prone to a modest reduction in playable hours/days. The following table presents a summary of monthly weather data for the Hyannis area based on 50-year recorded trends: Climatological Data Hyannis, Massachusetts Month Temperatures Precipitation Inches No. of Rain Days Average Length of Day (Hours) Average High Low Annual 49.8 57.4 42.2 43.2 104 12.7 January 30 38 23 3.8 10 10.1 February 30 38 23 3.5 8 11.1 March 37 44 30 4.1 10 12.5 April 45 53 38 3.9 10 13.9 May 55 63 47 3.5 9 15.1 June 64 72 57 3 8 15.7 July 71 78 63 3 7 15.4 August 70 77 62 3.7 8 14.3 September 63 71 55 3.2 7 12.9 October 53 61 45 3.5 8 11.5 November 44 52 37 3.9 9 10.3 December 34 42 27 4 10 9.7 Source: Weatherbase.com, Hyannis, MA DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 47 Brewster / Cape Cod Market Cape Cod is a key seasonal and tourist market area in southeast Massachusetts. Its historic, maritime character and ample beaches attract heavy tourism during the summer months. Cape Cod stretches from Provincetown in the northeast to Woods Hole in the southwest, and is generally divided into the upper Cape, Mid Cape and a lower/outer Cape (includes Brewster). Automobile access to Cape Cod is via two highway bridges: the Sagamore Bridge and the Bourne Bridge, each ultimately connecting to Massachusetts State Highway 6 (Mid-Cape Highway), the primary auto thoroughfare through Cape Cod. The key NGF findings on the Cape area economy and tourism that relate directly to the operation of Town golf courses include: • Cape Cod has a year-round population of about 215,000, increasing to over 645,000 in the peak summer season (Memorial Day through Labor Day). While this period is the defined peak of activity, off-season visitation had been increasing in recent years through 2019, with 2020 impacts still uncertain. Cape Cod visitation had been increasing due to longer summers and “empty-nesters” visiting without children. • Cape Cod is a popular destination for beachgoers, with 559.6 miles of coastline, including many publicly-accessible beaches. Cape Cod is also popular for other outdoor activities, including golf (there are 27 public, daily-fee golf courses and 15 private courses on Cape Cod). A review of Cape Cod tourism by the Massachusetts Office of Travel and Tourism (MOTT) showed “visiting friends” and “outdoor recreation” as the top two activities for visitors to Cape Cod in 2018. • Tourism data collected for Cape Cod shows a total of around 4.5 million visitors annually for the 2010’s decade. The peak season months of July and August show in excess of 900,000 visitors in 2016, with 53% of total visits to Cape Cod coming in the third-quarter of 2016. Total visitor spending on Cape Cod was just over $1.08 billion, and tourism supports numerous service industries on Cape Cod, including golf facilities (NGF estimates tourists can support 300,000 to 350,000 rounds of golf annually). • According to the Cape Cod Chamber of Commerce, there are ~19,000 total lodging units on Cape Cod, although the figure is difficult to fully quantify due to the high number of bed and breakfasts or vacation houses that are often used for visitors. Lodging on Cape Cod peaks in the July-September third-quarter, with an average of 80- 85% occupancy and an average daily room rate (ADR) of between $240 and $255. The ADR on Cape Cod has increased by 20% since 2010. An estimated 61% of total lodging receipts are earned in the third quarter each year. • Captains GC is accessible for the Lower-Cape region, but its location at the eastern end of the Cape’s population centers makes this course more of a “destination” property. Captains GC is approximately 29 miles from the Sagamore Bridge. The course is proximate to U.S. Route 6 and the interchange with Brewster-Chatham Rd., with access via Freemans Way (about 3.0 driving miles from Mid-Cape Hwy). GOLF MARKET SUPPLY AND DEMAND INDICATORS National Golf Industry Overview Despite significant negative press, the golf industry remains healthy and was continuing a macro trend toward stabilization in 2019. As we begin to consider the potential effects of the 2020 Covid- 19 / economic downturn, we note that golf activity appears to have increased in the U.S. during 2020, although the impact on total golf facility revenue is still undetermined. Ultimately, golf is at the mercy of “discretionary income,” and the activity held up rather well during the great recession (2008-2010) and in the 2020 Covid crisis. Multiple NGF studies of golfers since 2008 attribute the DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 48 longer-term gradual decline in golfers and rounds since peak participation primarily to the impact of lower job security and concern over personal finances, not waning appeal for the game. Total spending on golf and club memberships will always be vulnerable to outside forces such as the economy, but the game remains popular and is fortunate to have a deep well of interested prospects. Some findings from NGF: • Participation - The national golfer number (participation) increased slightly in 2020, with 24.8 million golfers counted by NGF in 2020 compared to 24.2 in 2019. In addition, NGF survey research indicates that the inflow of returning golfers and beginners combined to total over 6.2 million in 2020, the highest number ever recorded by NGF. • Golf Course Supply - The correction in golf course supply continued in 2019 at a level comparable with the previous several years, dropping by 1.4% (193 total 18-hole equivalent permanent closures in 2020 compared to 160 in 2019). NGF data shows the Cape Cod market has been somewhat insulated from this trend, as no golf course in Barnstable County has closed since the Woodbriar GC in Falmouth (closed in 2010). • Rounds Played 2019-2020 – Despite the loss of 20 million spring rounds due to coronavirus-related course closures, restrictions and anxiety, the almost 502 million rounds played at U.S. courses in 2020 was the most in more than a decade. The 61 million additional rounds over 2019, a 13.9% rise, is second only to the industry’s 63 million jump in rounds in 1997, when Tiger Woods had his breakout year. In Massachusetts the results were comparable, with the state recording a 2.7% increase in 2019, followed by a strong recovery and a 18.0% increase in 2020. (source: Golf Datatech – see Appendix B). • Looking Ahead - Baby Boomer Effect – As Baby Boomers age and retire over the next 15 years; we expect to see a measurable increase in total rounds played in the U.S. Boomers - born between 1946 and 1964 - are currently 55 to 74 years old. About 6 million of them are golfers; that’s about 1/4 of all golfers, and they currently play about 1/3 of all rounds. The Social Security Administration reports that 10,000 or more Boomers retire every day. And ~300,000 Boomer golfers will turn 65 each year for the next 15 years. Retired Boomers (age 65+) play about twice as much as younger, non- retired Boomers (40 rounds vs. 21 rounds). Other Measures of Health Other perhaps equally important metrics to consider when measuring the health of golf include: • Off-Course Participation: Activity at off-course (or alternative) facilities continued in 2019 and 2020, with NGF counting over 9.3 million active users of off-course facilities (like TopGolf), compared to 8.3 million in 2018 (12% increase). • Beginners: The total number of new golfers reached an all-time high in 2018, with NGF counting over 2.6 million beginning golfers (compared to 2.0 million in 2014). These beginning golfers tend to be younger, more female and more non-Caucasian than the golfer population as a whole. • Increasing Diversity: The junior golf population remains relatively stable at 2.9 million and continues to show a transformation in diversity. One-third of golfers age 6-17 are females, up from 17% in 1995 (in sum, 24% of all golfers are women). Also, 27% of junior golfers are non-Caucasian, up from only 6% in 1995. A similar trend is observed among young adult (18-34) or Millennial golfers, of which 29% are female and 24% non-Caucasian. The highest diversity is among beginning golfers, at 34% female and 32% non-Caucasian. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 49 • Latent Demand: Overall interest in playing golf remains very high. NGF survey research indicates that the number of non-golfers who say they are “very interested” in taking up golf has doubled over the last five years, growing at a CAGR of nearly 15% and now totaling 12.8 million people. There are an additional 27.8 million non-golfers who say they’re “somewhat interested” in taking up the game. Together, these two cohorts represent about 1.7 prospects for every existing golfer. Estimated Local Market Demand The table below details basic golf market data indicating the magnitude of the local golf demand (additional support data in Appendix C). We note that much of this data is based on the permanent resident population, and is not reflective of the retiree, seasonal resident and visitor populations in the market area (more later in this section). Summary of Market Indicators 5-Mile Ring 10-Mile Ring Barnstable County Total U.S. Golfers Number of Golfing Households 2,833 5,220 18,362 17,484,590 Seasonal Golfing Households 1,890 4,150 9,728 748,477 Rounds Potential (resident golfers) 176,164 359,626 1,000,891 434,080,100 Estimated Rounds (in-market supply) 206,832 372,277 1,171,642 434,084,100 Latent Demand/Interested Non-Golfers 4,392 8,362 32,188 47,425,600 Golf Indices Golf Participation Index 145 134 134 100 Golf Rounds Activity Index 363 372 294 100 • The permanent population in the Brewster market has age and income characteristics that tend to coincide with higher-than-average participation in golf. This is reflected in golf demand indices that show 34% to 45% higher participation and 360% higher rounds played per golfer in the market areas (Cape Cod golfer plays three times more rounds per golfer than the U.S. average). • The local Captains market has a slightly larger proportion of higher income households than the wider market areas. An estimated 36% of households in the 5-mile ring show incomes over $100,000 annually, while 9% show income in excess of $200,000, both a key “sweet spot” for high golf participation and activity: Higher Income Households 5-Mile Ring 10-Mile Ring Barnstable County No. Pct. No. Pct. No. Pct. No. of Households over $100,000 Income 4,911 36.0% 9,386 32.1% 33,835 33.6% No. of Households over $200,000 Income 1,259 9.2% 2,291 7.9% 7,835 7.8% • The NGF’s golf demand model estimates a total of 3,863 permanent resident golfers living within five miles, and about 7,000 within 10 miles of Captains GC. These golfers have the potential to demand as many as 176,000+/- rounds (5 Miles) and 359,600 rounds (10 miles) each year. This equates to about 45 to 51 rounds per golfer per year. • These estimates are based on data that show golf participation rates in Brewster about 35-45% higher than the nation, and that rounds demand per household is also about three-times the national estimate. Permanent and seasonal golfers in this area are capable of supporting a large market of golf facilities, and this does not include the even larger market of transient / visiting golfers who come to the area each year. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 50 • NGF estimates the residents in Barnstable County could demand upwards of 1.0 million rounds of golf annually, and the golf courses in this County are hosting over 1.17 million rounds annually, indicating a strong demand from non-residents at area golf courses. The 1.17 million rounds played in Barnstable County help to confirm the expectation that there is sustainable demand for golf service in the Brewster market. Visitor Golf Demand Earlier we noted about 4.5 million annual visitors to Cape Cod in the 2010’s, contributing to golf course activity in the region. NGF research shows that roughly one-third of all golfers participate in the activity while traveling, playing 0.557 rounds per day of travel. Based on current golf participation rates, the estimate for total tourist golf rounds on Cape Cod is 300,000 to 350,000 rounds annually. Though Captains GC would likely capture a small proportion of these visiting golf rounds, it is nonetheless important for the Town to maintain a strong marketing presence, and visiting golfers, especially those staying in nearby lodging components, should continue to be aggressively targeted by the Town’s golf management for stay-and-play packages, digital/website channels, as a couple of thousand visitor rounds could make a big difference in the bottom line. Latent Demand People who express interest in golf but do not currently participate include former golfers and those who have never tried. The demographic profile of latent demand tends to be younger and more female than the population as a whole. Surveys show these interested non-golfers cite barriers to entry in golf, including the cost and social aspects (no one to play with). The latent demand population is comparable to the golfer population, with as many as 8,400 interested non- golfers within 10 miles of Captains GC. Given golf’s tenuous participation situation, all golf courses should have active programming aimed at inviting and “onboarding” prospective new golfers. Local Golf Supply The NGF data shows strong demand for golf from permanent residents, seasonal residents and tourists in this market area, and the supply of golf courses is equally strong to serve this demand. NGF observations regarding key golf supply measures for the local market: • There are 11 total golf facilities (includes 8 public, of which 6 are municipal) in Brewster’s primary 10-mile trade area, and 39 total facilities (23 public, 12 municipal) in Barnstable County. The proportion of public courses (59%) is lower than the total U.S. where 74.6% of all golf courses are open and available to the public. • Ratio analysis based on national benchmarks suggests that Barnstable County is over- supplied with golf courses, as there are about 72% fewer households available (unfavorable) to support each 18 holes of golf compared to the national benchmark. However, this finding is based on the ratio of golf holes to permanent households, and supports the need to attract non-resident golf demand. • Six of the 8 public facilities in the 10-mile market are at an NGF-defined ‘premium’ price point (>$70 peak riding fee), with one each at ‘standard’ ($40-$70) and ‘value’ (<$40 peak riding fee). In the broader Barnstable County market, there is a higher proportion of mid-range facilities, and only three ‘value’ facilities. • The net change in golf holes shows little change in the supply of golf on Cape Cod, with a net of reduction of 18 holes in Barnstable County since 2010, the most recent of which was the Woodbriar GC (Falmouth - closed 2010). Other small 9-hole and executive courses closed in Plymouth County since 2010, including the Challenger 9 at Waverly Oaks and the 18-hole par-3 Golf City course. NGF data shows no other new golf course projects under development in Barnstable County in 2021. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 51 Golf Course Market Supply / Demand Summary Using the basic measures of golf demand and supply, we note four possible combinations for any given market area: (1) favorable demand and favorable supply (“potential growth market”); (2) favorable demand and unfavorable supply (“competitive”); (3) unfavorable demand and favorable supply (“inactive”); and (4) unfavorable demand and unfavorable supply (“saturated”). The review of data for Brewster suggests a “competitive” market for golf, with strong demand and an unfavorable household/supply ratio. Thus, the influx of visiting golfers will be needed to sustain golf course operations in this market. Golfers per 18 Holes NGF has also evaluated the relative strength of the market with a comparison to a national “threshold” of golfers per golf course within 10 miles of a facility. In its 2009 publication “The Future of Public Golf in America,” NGF hypothesized that the best predictor of a public golf course’s success was the number of golfers per 18 holes within a 10-mile radius, with 4,000 identified as the key number for projected financial stability. The NGF has estimated that there are only about 640 golfers per 18-hole course in the Brewster market. However, the importance of this metric is mitigated somewhat in markets with a high annual influx of visiting golfers (further stressing the importance of continued support from non-resident golfers). LOCAL COMPETITIVE GOLF MARKET National Golf Foundation Consulting has reviewed the public golf market in the central Cape Cod market, with particular emphasis on the current market position of Captains GC, and the potential for maintaining and/or building additional market share in the future. On the following pages, we list operating information for a group of selected competitive public golf facilities within approximately a 20-mile radius from the east-central Cape Cod area. Primary Regulation Competitors Alternative Golf Facilities Cranberry Valley GC Blue Rock GC (18-hole par-3) Dennis Highlands GC Dennis Pines GC Bass River GC Bayberry Hills GC Olde Barnstable Fairgrounds GC Hyannis GC Sandwich Hollows GC This list was not meant to be totally exhaustive or account for all the potential public golf competition to the Captains GC, but rather to offer a frame of reference in evaluating actual performance of the subject courses as compared to other potentially competitive golf facilities. The map on the following page shows the locations of the various Town facilities and the other public courses selected as the key competitors. Following the map, we provide summary operating information for these key competitors, as well as key pricing & fee recommendations regarding the Town of Brewster golf facility. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 52 Competitive Public Access Golf Facilities Map The map below shows the relative locations of the facilities selected as comparable to Captains GC. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 53 Key Competitors – Summary Information The following tables provide summary information for Captains GC and the primary competitors in the local market area. Town of Brewster Public Golf Market Facilities (15-mile Radius) – Summary Information Public Golf Courses Location Type Year Open Par / Slope Back Tee / Forward Tee Number of Range Tee Stations The Captains GC – Port Course Brewster 18H MU-R 1985 / 1998 72 / 132 6,675 / 5,282 25 The Captains GC – Starboard Course Brewster 18H MU-R 1985 / 1998 72 / 131 6,776 / 5,359 25 Cranberry Valley Golf Course Harwich 18H MU-R 1974 72 / 129 6,482 / 5,132 15 Dennis Pines Golf Course Dennis 18H MU-R 1965 72 / 133 6,931 / 5,115 15 Dennis Highlands Golf Course Dennis 18H MU-R 1984 71 / 123 6,509 / 4,884 34 Bass River Golf Course Yarmouth 18H MU-R 1900 72 / 189 6,138 / 4,932 0 Bayberry Hills Golf Course Yarmouth 18H MU-R 1988 72 / 132 7,172 / 5,294 30 Bayberry Hills – The Links Course Yarmouth 9H MU-R 1999 36 / 126 3,345 / 2,574 30 Olde Barnstable Fairgrounds Golf Course Marstons Mills 18H MU-R 1992 71 / 132 6,470 / 5,031 32 Hyannis Golf Course Hyannis 18H MU-R 1973 71 / 133 6,305 / 5,132 40 Sandwich Hollow Golf Course East Sandwich 18H MU-R 1971 71 / 122 6,307 / 5,124 50 Short Courses Blue Rock Golf Course South Yarmouth 18H DF-P 1962 54 / 83 2,868 / 2,154 15 Type: DF – Daily Fee; MU – Municipal Length: R – Regulation; E – Executive; P – Par 3 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 54 Market Area Rounds and Fee Information Found on these pages are information regarding the fee structure at the public facilities within the 20-mile market area. The 1st chart reflects the peak season rate for green fees (walking) and green & cart fees as well as the number of rounds played in fiscal year 2020 (the last complete year). The next chart shows the various membership / season pass options available at these facilities. Summary Peak Season Green Fees – The Captains Courses & Other Public Facilities (20-mile Radius)1 Public Golf Courses FY 2020 Rounds 18-Hole Weekday 9-Hole Weekday 18-Hole Senior WD 18-Hole Weekend 9-Hole Weekend 18-Hole Senior WE 18-Hole Twilight 9-Hole Twilight Captains GC - Port Course 68,537 $77 / $100 $36 / $50 --- / --- $77 / $100 $36 / $50 --- / --- $36 / $592 --- / --- Captains GC - Starboard $77 / $100 $36 / $50 --- / --- $77 / $100 $36 / $50 --- / --- $36 / $592 --- / --- Cranberry Valley Golf Course 38,405 $65 / $89 $40 / $49 --- / --- $79 / $103 --- / --- --- / --- $35 / $592 --- / --- Dennis Pines Golf Course 32,000* $69 / $89 --- / --- $30 / $443 $69 / $89 --- / --- --- / --- $29 / $492 --- / --- Dennis Highlands Golf Course 36,000* $69 / $89 --- / --- $30 / $443 $69 / $89 --- / --- --- / --- $29 / $492 --- / --- Bass River Golf Course 32,834 $57 / $79 $34 / $59 --- / --- $67 / $89 $40 / $55 --- / --- $33 / $552 --- / --- Bayberry Hills Golf Course 45,113 $67 / $89 $40 / $555 --- / --- $87 / $109 $50 / $655 --- / --- $33 / $552 $20 / $35 Olde Barnstable Fairgrounds 32,868 $74 / $96 --- / --- --- / --- $74 / $96 --- / --- --- / --- $35 / $572 --- / --- Hyannis Golf Course 28,758 $55 / $79 --- / --- --- / --- $64 / $86 --- / --- --- / --- $35 / $572 --- / --- Sandwich Hollow Golf Course 24,999 $55 / $55 $20 / $30 --- / --- $65 / $65 $26 / $35 --- / --- $40 / $45 $20 / $30 Short Courses Blue Rock Golf Course ~17,000* $55 / $73 $40 / $50 --- / --- $60 / $78 $45 / $55 --- / --- $35 / $534 --- / --- * NGF estimate 1 Walking rate / Riding rate. 2 After 4:00pm 3 Senior rates only offered for 9-hole rounds – early WD & after 2:00pm WD 4 After 3:00pm. 5 A9-hole rate includes the Links course. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 55 2021 Season Passes & Membership Offerings – Town of Brewster Facilities and Primary Competitors Residents Non-Residents Seniors / Juniors Public Golf Courses FY 2020 Number of Passholders Single Couple Single Couple Captains Golf Course 1,142 $1,053 ---- $1,752 ---- $--- / $2041 Cranberry Valley GC 1,190 $810 --- $1,110 --- --- / $1502 Town of Dennis Courses 1,500* $775 --- $1,200 --- --- / $1653 Town of Yarmouth Courses 930 $1,200 ---- $1,200 ---- $7604 / $110 Town of Barnstable Golf Courses 1,082 $1,177 $2,000 $1,562 $2,500 $5884 / $143 Sandwich Hollows Golf Course 300* $1,105 $1,705 $1,105 $1,705 $1,0055 / $250 Short Courses Blue Rock Golf Course 150* $925 $1,600 $925 $1,600 --- / $225 * NGF estimate 1 Non-Resident Junior pass is $292 2 Non-Resident Junior pass is $350 3 Non-Resident Junior pass is $230 4 Age 80+ 5 Age 62+ Other Options in the Brewster Market In addition to standard golf facilities in the Brewster / central Cape Cod area, there are some alternative options available to local and visiting golfers. Alternative facilities include standalone driving ranges, par 3 courses, non-traditional ranges (such as Top Golf) and others. • Blue Rock Golf Course: This facility opened in 1962 and is now owned by the Davenport Companies. The Davenport Companies own 5 resorts in and around the Yarmouth area – the Blue Rock Golf Resort, the Blue Water Resort, the Green Harbor Resort, the Red Jacket Beach Resort and the Riviera Beach Resort. Most of the play comes from Davenport resort guests (all guests have access to the course) – there are approximately 1,500 people at the various Davenport resorts in peak season (prior to Covid-19) and this is the key component of their target market. The 18-hole par-3 course is developed on approximately 45 acres (including the range) and has holes ranging in length between 100 yards and 200 yards. The course is generally very well maintained and features attractive landscaping and vegetation. Daily fee play is also an important market, but this group historically signs up late as a par 3 course (not their 1st choice). DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 56 Key Findings – Competitive Golf Market A summary of general findings regarding the competitive market for Brewster / central Cape Cod public golf courses: • Cape Cod has had a very active golf market and the Captains GC represents an important part of the public golf landscape. The Cape Cod market includes private golf clubs dating back to 1885, although most municipal golf courses were developed between 1971 and 1999 (excluding the Bass River GC which opened in 1900). • As a public golf market, Cape Cod is extremely active – especially for a northeastern location. The coastal location provides slightly warmer winter temperatures and this tends to attract additional winter play (mainly from areas further north). The nine municipal facilities from the competitive set comprise a total of 10.5 18-hole equivalent golf courses, and these facilities averaged approximately 32,300 rounds per 18 holes in FY2020. Cranberry Valley in Harwich was the most active at about 38,000 rounds and Sandwich Hollows GC was the least active at 25,000 rounds. We found that the rounds played during FY2020 was lower than FY2019 – this was due directly to the Covid-19 restrictions that were implemented in early 2020. Captains GC was down more than 7,000 rounds (50%) in March-May 2020 compared to the same period in 2019. Other public courses in the market experienced similar results during this period. • There are several key competitors to Captains GC as identified by the NGF. Each facility has definitive advantages and disadvantages in terms of attracting market share. However, one of the most significant key advantages for the Captains facility is the availability of two golf courses at a single location. This is not the case at any other public course in our competitive set, although Yarmouth does have a third 9-hole course (Links course) at the 27-hole Bayberry Hills GC. • The primary competitive courses to Captains GC include Cranberry Valley, the two Dennis courses, the Yarmouth courses (Bass River & Bayberry Hills), Olde Barnstable Fairgrounds, Hyannis GC and to a lesser extent, Sandwich Hollows GC. Each of these courses is owned by a local municipality and all are operated under an Enterprise Fund with the exception of the Harwich and the Dennis courses (they can receive money from the General Fund to assist with operating shortfalls). In prior analyses of the Cape Cod market, several of the area public courses were operating at a deficit. However, all the competitive facilities generated a positive net operating income (NOI) in fiscal year 2020 except for the Barnstable courses. This was partially due to budget reductions implemented in early 2020 by the area courses as a result of Covid-19. • During FY2020, Captains GC generated just over 68,500 total rounds – this was down approximately 6.4% (or approximately 4,700 rounds) in FY2019. This reduction in rounds was lower than several other public courses – Cranberry Valley was down almost 11% between FY2019 & FY2020 and the Barnstable courses were down about 12% for these periods. • The impact of Covid-19 adversely impacted golf activity (and all other aspects of daily life) on Cape Cod during fiscal year 2020 (which ended June 30, 2020). The latter half of 2020 saw a massive increase in rounds played throughout the country and the Cape Cod market was also a beneficiary of this enhanced demand. Captains GC hosted over 16,000 additional rounds for the July to December 2020 period versus 2019 – this represents an increase of almost 34% for this 6-month period. Based on our discussions with other local operators, they also enjoyed similar results. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 57 • Captains GC has no pricing differential between weekdays and weekends – the Dennis courses and Olde Barnstable Fairgrounds GC also employ this same pricing strategy. The peak season weekday 18-hole rate of $100 (including cart) at Captains is the highest in the public Cape Cod market currently (with Olde Barnstable Fairgrounds GC at $96 as the next closest competitor). Captains GC weekend pricing at $100 per round is behind Bayberry Hills at $109 and Cranberry Valley at $103. • All municipal facilities in the central Cape Cod market offer a season pass or membership to lock in players and improve customer loyalty. The memberships are an important source of advance revenue and the number of memberships sold varies widely by Township. For example, the Town of Dennis has over 1,500 memberships to play their 2 courses while the Town of Sandwich has only 300 memberships for their single facility. Conversely, Cranberry Valley GC has nearly 1,200 annual memberships for an 18-hole course and member play is about 70% of their rounds. Captains GC has approximately 1,150 members and these players have historically represented around 50% of total play). Many muni course members spend little additional money at their home course (for carts, food & beverage, etc.) and the average revenue per round can be very low for frequent players. Hence, it is important to maintain a careful balance between passholder play and the higher-paying daily fee players. • The annual pass or membership fees at the Captains GC are slightly lower than most of the other Town-owned courses in the area ($1,053 for a Town resident). While the annual pass at Cranberry Valley is $810 per year for a resident, they have only one 18- hole course. The Dennis annual pass is $775 for a Town resident and this is valid for both their courses – hence, this is the lowest priced season pass in the area. • The Brewster golf system utilizes a resident and non-resident pricing structure for the annual passes as do most area Towns (except for Yarmouth and Sandwich). The non- resident season pass for the Captains is the highest priced pass at $1,752 in the market (the next closest are the Barnstable courses at $1,562). It is noteworthy that the pricing differential between residents and non-residents in Brewster is 66% - the other facilities have a pricing differential between 33% and 55%. If the Town is interested in growing the non-resident season passholder market segment, it may necessitate a review of the current pricing structure. • The alternative golf facility we identified – the Blue Rock GC - serves a role in the local market as a source of new golfers for the Cape Cod area. However, it is not considered directly competitive with the Captains courses (nor most regulation-length facilities) but rather represent a different type of golf experience. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 58 CAPE COD MUNICIPAL GOLF OPERATIONS REVIEW NGF collected basic operating and financial information from several Towns on Cape Cod presently operating municipal golf courses, including the previously identified key competitors. The data obtained included basic information on operations provided to NGF for comparison and benchmarking to the Brewster courses. The data collected was derived primarily from publicly available information contained in each Town’s annual financial reports, as well as from interviews and/or email surveys conducted with golf course staff. A table summarizing the findings is presented on the following page after the NGF commentary on the findings: Summary of Findings on Cape Cod Municipal Golf Operations • The Dennis and Harwich golf operations are accounted for within each Town’s General Fund, while Yarmouth, Barnstable and Sandwich are Enterprise Fund operations (Brewster is Special Revenue Account). According to data collected by NGF for this study, all the municipal courses except the Barnstable golf system were profitable for FY 2020 when taking only on-site operating revenues and expenses into account. • Average total revenue for these municipal golf courses, excluding Sandwich, was about $1.556 million per 18 holes for FY 2020. Captains GC is the highest revenue producer among the 18-hole facilities at approximately about $1.845 million per course. • The total greens fee, membership fee and cart fee revenue per round ranged from a low of $33.10 at the Dennis courses to a high of $48.85 at Captains GC, meaning the Town of Brewster is the market leader in this category. • The funding of capital improvements at the Cape Cod area municipal courses are largely dependent on their structure (enterprise fund or general fund), economic viability and if they are still paying debt service. Each of the competitive local courses have different approaches as described below. o Town of Brewster: Captains GC made the final debt service payment last year (2020) and this now retires an annual payment of approximately $840,000. o Town of Harwich: Cranberry Valley GC has tried to set aside approximately $80,000 annually for capital improvements. However, the Town declared a financial crisis last year due to Covid-19 and all capital plans have been put on hold. The next significant capital improvement being planned is an irrigation system and infrastructure upgrade for 2025 (at approximately $600,000). o Town of Dennis: They had previously created a specific formula to retain monies for capital improvements – 28% of member dues and 5% of daily green fees. This captures approximately $375,000 annually. Additionally, they place 25% of the cart revenue into a revolving fund for cart repayment. However, they withheld capital improvements in the previous fiscal year. o Town of Yarmouth: The Bayberry Hills GC was previously renovated in 2017 and there is some irrigation work needed on the Links course (but this is not planned yet). The Bass River course will be undergoing an extensive renovation in the next few years as part of the Yarmouth/Dennis/Harwich wastewater treatment project since the course will be part of the effluent disposal process. However, the funding for this renovation has not been finalized. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 59 o Town of Barnstable: Olde Barnstable Fairgrounds GC has been debt-free since 2006, but Hyannis GC debt is in place until 2025 (at appx. $300,000 per year). In the past few months, the Barnstable Community Preservation Committee has agreed to assume the remaining debt for the next 5 years (in exchange for putting the courses into a conservation easement). This immediate economic savings will allow the Town to start addressing deferred maintenance at Hyannis GC (which was delayed until they were debt-free). Hyannis GC has typically operated at a deficit and these operating shortfalls are covered by the Olde Barnstable Fairground GC revenues. o Town of Sandwich: Sandwich Hollows GC operates at or close to a break-even basis and they are limited in their ability to undertake capital improvements. • Covid-19 had a significant impact on all public courses in Cape Cod (and nation-wide) in the last 12 months. Operational changes were implemented from the government (at a state level) that caused loss of revenues and/or increases in expenses. Some of these items included: o The addition of more staff to clean and sanitize golf carts, range baskets and other items used in the daily operation o The closure of all golf courses in Massachusetts from approximately late March through May 8, 2021 o The reduction in tees times and capacity from using 20-minute tee times for May and June 2020 o Allowing only one rider per cart and the cart shortages this created o The loss of the outing and event business o The economic challenges faced by the food & beverage concessionaires at the various courses • There have also been some positive changes and impacts from Covid-19 in the Cape Cod public golf market such as: o Increased demand for golf o Adding new and former players to the local roster of golfers (but will they remain) o Establishing new methods for remote check-in and remote payments (reduced personnel) DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 60 Summary of Comparative Data – FY2020 Cape Cod Area Municipal Golf Systems Golf Facility Municipality Holes Golf System Structure Rounds Played Recent Trend in Rounds Green + Cart Revenue (incl passes) Per Round Total Operating Revenue Total Operating Expense The Captains Golf Course (Port Course & Starboard Course) Brewster 36 Special Revenue Account1 68,537 Rounds had been stable last 3 yrs (pre-Covid) $3,348,260 $39.50 $3,690,719 $3,626,9932 Cranberry Valley Golf Course Harwich 18 General Fund 38,405 Stable play prior to early 2020 (but growing) $1,400,892 $36.48 $1,518,934 $1,316,817 Town of Dennis Courses (Dennis Highlands & Dennis Pines) Dennis 36 General Fund3 68,000* Rounds had been stable last 3 yrs (pre-Covid) $2,250,682 $33.10 $3,099,606 $2,423,555 Town of Yarmouth Courses (Bayberry Hills & Bass River) Yarmouth 45 Enterprise Fund 77,947 Play increasing since Bayberry Hills renovation $2,914,168 $37.39 $3,600,769 $3,185,870 Town of Barnstable Courses (Olde Barnstable FG & Hyannis) Barnstable 36 Enterprise Fund4 61,626 12% drop from FY19 to FY20 $2,491,070 $40.42 $2,873,421 $3,536,3465 Sandwich Hollows Golf Course Sandwich 18 Enterprise Fund 24,999 Rounds declining in recent years $816,064 $32.64 $975,843 $922,415 *NGF estimate. 1 Similar to an Enterprise Fund in that all revenues stay with the golf system; however, they can receive general fund monies in the event of a shortfall. 2 Includes the final debt service payment of $810,000 – the $10 million bond from the 2nd course in 1999 is now paid off 3 The courses retain 28% of membership dues & 5% of green fees for capital improvements. They also retain 25% of cart fees into a revolving cart repayment fund. 4 Receive some monies from the General Fund to cover indirect Town administrative charges (such as HR, Finance, Accounting, etc.). 5 Includes a debt service payment of $300,000 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 61 EXTERNAL FACTORS SUMMARY The NGF market analysis shows that golf is an important component in the greater Cape Cod market. While there is strong demonstrated demand for golf in this local market, there are also numerous golf courses available to service the demand. As such, the NGF has a reasonable expectation that while the market will provide support for the continued operation of Captains GC, such strong support is not guaranteed. Other key findings from NGF’s analysis of the Brewster / Cape Cod golf market include: • The demographic profile of the permanent residents in the Brewster area is consistent with strong golf demand. The age and income characteristics of the population are consistent with high golf participation, and the local economy also has elements that correspond to durable golf demand. There are an estimated 4.5+ million visitors to Barnstable County annually, which NGF estimates could include golfers demanding over 350,000 rounds each year. Given its position as a high-quality public golf facility, Captains GC is in a strong position to capture some of the large tourist golf market. • From a macro standpoint, while some trends continue to create headwinds for golf operators, overall golf participation in the U.S. appears to be stabilizing and golf is far from “dead.” While demand for golf strengthened greatly during the Covid-19 pandemic in 2020, NGF research shows that golf was gaining some momentum in 2019 and the sport remains popular and is fortunate to have a deep well of interested prospects. The key challenge for golf operators like Captains GC is to sustain the momentum from 2020 into the coming years. • The overall balance between golf demand and supply is not favorable for golf courses in the Cape Cod market. The NGF has documented that this local market area has only about 640 permanent resident golfers for each 18 holes in the market, far fewer than the 4,000 golfers per 18 holes target. As a result, it is expected that the Brewster golf market will remain very competitive for the foreseeable future. Any improvement in economic performance at area public golf courses is going to have to come from increased penetration into the tourist and/or outing golf market, with increased sales of daily fee rounds to tourists, seasonal residents and tournament participants. • The most important local competition to Captains GC includes other facilities owned and operated by Cape Cod Towns like Dennis, Harwich, Yarmouth, Barnstable and Sandwich. Given Captains strong existing price-quality market position and the Town’s desire to fit in the upper range of fees in this market, it appears to NGF that Captains GC is well positioned in comparison to its most immediate competition. • Golf will always be at the mercy of weather, and in a New England climate strong demand may occur over only 7 or 8 months and yearly variations can significantly lengthen or shorten the golf season, perhaps making the difference between operating profits and losses for some golf courses. With an average of ±16 inches of precipitation and 39 rain days during the five-month summer season, this golf market is prone to a modest reduction in playable hours/days. • Finally, all golf facilities face a couple of other factors beyond their control: First, a high fixed expense structure and operating expenses that tend to rise more rapidly than revenues (e.g., ability to raise fees is constrained); this dynamic appears to be particularly acute with declining infrastructure and increasing capital costs. Second, while golf is more popular than ever with younger children, the activity is losing appeal with younger adults and this will provide a continuing challenge for golf courses facing attrition from older players. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 62 NGF Recommendations for the Town of Brewster and Captains Golf Course Based on our evaluation of Captains GC and the local market, NGF has formulated a set of recommendations to help the Town program for the future of the golf system. The objective of NGF recommendations is to provide the Town with a strategic vision for the future of golf and maintain the appropriate physical plant and service that will elevate the patron experience, maximize the economic performance and provide the possibility of long-term sustainability of Captains GC. NGF Consulting has prepared a schedule of specific recommendations to be considered by the Town. These recommendations have been organized into: (1) basic oversight, structure and staffing; (2) physical enhancements; and (3) other operational insights. BASIC OVERSIGHT, STRUCTURE AND CONTRACTS The Town of Brewster has chosen to self-operate its golf course, with only the food and beverage (F&B) services privatized to a third-party operator. An NGF survey of nearly 1,000 municipal golf courses in the U.S. in 2020 (40% of the total 2,500) found that the Brewster structure is still the most common form of municipal golf operation in the country with approximately 56% of U.S. muni golf courses operating with this exact structure. In considering alternatives, the NGF finds it unlikely that Brewster could improve its fiscal position in golf by changing to an alternate form of operation given the strong revenue performance documented in this review. Structure Considerations The Town has expressed a clear desire to continue to operate Captains GC with all facilities, services and amenities open and available to the public at an affordable rate, especially to Brewster residents. The Town of Brewster has chosen to operate its municipal golf course with Town employees staffing all positions (except F&B) and under the direct authority of the Town. This structure has allowed the Town to keep the most direct control of operations, and NGF sees no reason to alter this structure. The challenge in this structure includes the Town absorbing the economic risk in the operation, mostly related to personnel costs and benefits. Another challenge in this structure is finding and retaining qualified personnel, especially in top management positions when there are openings or retirements (as in 2021). The Town has developed an experienced and reliable employment base at Captains GC, allowing for the seamless replacement of senior leadership upon retirement. Retaining the existing self-operation model ensures this succession advantage will continue for the benefit of the Town of Brewster. Enterprise Fund Accounting The Town has created a separate Special Revenue Account for the Captains golf operation. A study of the Town’s financial management conducted by the State Division of Local Services in 2019 recommended that Brewster adopt an Enterprise Fund accounting for Captains GC that would require the Town’s Golf Fund to be primarily self-sustaining and allow for the issuance of new debt to fund large-scale capital improvements. The adoption of an enterprise fund for Captains GC will also help the Town clearly identify the total cost of providing the service and help determine if the rates charged are sufficient to cover the cost. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 63 NGF Recommendation Beginning in 2021, the Town is in a position to use funds that were previously earmarked for debt retirement for new capital investments. Based on our analysis and future projections, Captains GC is expected to be operationally self-sustaining and economically independent. In some individual years of operation, the Town may find that the revenue generated by Captains GC will not be sufficient to fund some of the larger improvements recommended by NGF (irrigation, equipment, maintenance facility, etc.) course maintenance equipment), and this will necessitate some form of external financing (which could be debt and/or a general fund infusion) to cover these temporary shortfalls. We note that unlike other common municipal services, a golf facility operates in a market environment where the fees charged for services are impacted by competitive realities and consumer choices. Significant increases in fees that seem needed to cover expenses may not be accepted by the market and can lead to lower activity and reduced revenue. The NGF recommends the Town fund all needed improvements using earnings retained from golf operations revenue, mindful of the reality that some larger projects like irrigation and other improvements may be too large and will require some outside funding mechanism. New Food and Beverage Contract As noted, the current food and beverage concession for Freeman’s Grill will come to an end in December 2021. The NGF recommends the Town continue to outsource its food and beverage operations as a separate concession with an experienced vendor operating as a contracted concessionaire at Captains GC. The Town will then continue to earn a modest income from lease or concession payments, expected to be at or near 10%+/- of total gross F&B revenue (industry standard). Given the challenging environment due to Covid-19, the Town may permit a waiver of lease or concession payments to the Town in the first year of the new contract period as an enticement to allow the vendor to recover from the difficult 2020 and 2021. The NGF also notes the difficulty in finding qualified vendors to run F&B operation at municipal golf courses, and several of the other Towns on Cape Cod have struggled to find and retain a good partner for providing this service (with Yarmouth and Sandwich as examples). In addition to the inherently challenging environment of providing this service at any public golf facility, the very nature of business enterprise and employment in Cape Cod make this service especially challenging for Captains GC. It would seem to NGF that the recent success Brewster has had with its current vendor that continuation of the basic structure and current partner should be a strong consideration for the Town after December 2021. OPERATIONAL RECOMMENDATIONS In addition to the larger oversight and physical recommendations, NGF Consulting offers the following recommendations to help the Town of Brewster with some minor adjustments that can help the Town improve its bottom-line performance of the golf course. The most significant of these relate to the expansion of modern technologies and marketing, including the full implementation of all facets of the existing point-of-sale (POS) system. It is understood that Town golf facilities are operating in a competitive market with many golf courses trying to maximize rounds and revenue. In this review, NGF will not address details in the day-to-day operation of Captains GC. Rather, the NGF team has provided a broad overview of key issues in the operation comprising: (1) marketing and technology; (2) pricing; and (3) recommendations for increasing participation from less- traditional segments. It is hoped that review of NGF recommendations on these topics can provide the Town a basic framework for the continued operation of its golf facility. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 64 Enhance Marketing Few things can positively affect rounds and revenue performance more than marketing. A marketing emphasis is critical to creating awareness and attracting the large volume of transient visitors who travel to the Cape in any given normal year. The NGF observed an extensive marketing of Captains GC, primarily through the activities of its Golf Director and other Town staff. Efforts to enhance golf activity at Captains GC should include both advertising and personal activities in direct selling. Going forward, the NGF recommends marketing Captains GC by: (1) maintaining or building loyalty and “wallet share” from existing regular-play golfers; (2) improving the messaging and reach to attract greater participation from golfers visiting the Cape; and (3) developing a comprehensive tournament and outings strategy that includes direct “face-to-face” marketing to potential target groups. Strategies include: enhanced marketing via the Internet; direct selling (including acceptance of tee times online); and judicious use of third-party tee-time providers, discount books, internet specials, etc. Direct Selling and Advertising Activities related to direct selling that should be part of the Town golf course marketing include: • Hotel and Lodging Strategy – Captains GC staff and the Town of Brewster should actively work to promote Captains GC to area hotel and lodging properties in central and east Cape Cod. The program to have hotels on account for direct billing is ideal to grow this segment and should be expanded to additional lodging properties as can be established in 2021 and beyond. • Tournaments and Outings – It is assumed the Golf Director and assistant golf professionals will directly market to tournament and outing prospects. NGF recognizes that there is competition in the market, but Captains GC, with its 36 holes and large clubhouse, is especially appealing and marketable for events and tournaments. A fact that needs to be heavily promoted at Captains GC. • Print / Brochure - Printed ads can still be effective in golf, and the Town should create new printed fold-out pieces with specific focus for golf. The golf fold-out piece would be printed with the word “Golf” in the upper 1/3 of the front page – to stand out in racks. This piece should be distributed and placed in as many area visitor’s centers, hotels, and tourist attractions with information racks as is reasonable. • Signage - The signage for Captains GC should be improved as is allowable by local guidelines. This is especially important for Captains given its location and need to attract tourist/visitor play. The course would improve its performance with new directional signs at key intersections leading to the courses and improved to the extent that is allowable. All signage for the golf course must make it clear that the golf facility and all amenities are government-owned and “open and available to the public.” Clubhouse and Banquet Marketing The marketing of the clubhouse amenities and services is also key to the success of Captains GC. We believe the most effective and efficient strategy for marketing the clubhouse would include both internal marketing (on-site promotions for food and beverage and upselling), and direct wedding and banquet marketing, largely through the internet. Sites like www.theKnot.com and other similar wedding sites provide a strong referral network and can add exposure to the CGC clubhouse. Other key recommendations for marketing the clubhouse and banquets: • Include most up-to-date Covid-19 restrictions and capacities DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 65 • Include a lot of pictures on the website and contact information. • Have a strong presence on social media, bridal magazines/websites, participations in bridal shows, etc. • The CGC operator facility should provide updated sales collateral materials that are commensurate with the quality of the facility. • Invite local community groups to hold events at the new facility (Rotary Meetings, local business networking meetings, Chamber Events, etc.). Better Employment of Technology Technology is one of the most important tools available to a golf course management team, and its deployment is critical in golf operations in 2021 and beyond. Technology defines and guides the marketing strategy, helps to generate exposure and provides tools to manage a customer database, create customer loyalty and boost revenue. In our review, the NGF found that Captains GC is already active in most of the NGF identified areas to improve technology, but more can be done by Town golf staff to enhance these initiatives. POS System The Town should work to maximize the potential of its modern POS system to access tools for marketing initiatives. The Town of Brewster golf courses currently use the Chelsea POS system which includes several modules of advanced customer tracking and contact databases that can be used in direct marketing campaigns. In addition, modern POS systems should allow for the ability for customers to book tee time online (while viewing a live tee sheet), accept credit cards for payment, facilitate the sale of gift cards and even implement a loyalty program. It is expected that the Chelsea system in use at Captains GC includes these services, although some may require additional fees and/or additional staff training. The NGF can’t emphasize enough the how essential these modules and POS abilities are to running a successful public golf business. Other Technology Enhancements E-mail – E-mail databases are essential as a means of staying in touch with the golf customer base in today’s golf market. E-mail marketing is now the most cost-effective advertising possible. Creating and augmenting the database should be a top priority of the Town so that email marketing can be optimally implemented. Captains GC reported having 8,000-9,000 active email addresses of customers, but many of these are regular customers who already frequent CGC. A key goal for the future should be to capture the email address for ALL golfers, especially those who only use the facility once or twice in a given year. The Town can also collect email addresses for those seeking information while on the Captains website using contests and while attending various regional golf expos. Website and Social Media – While the website for Captains GC did include most of NGF’s recommended features, there is always room for improvement. Any efforts the Town can make to improve the look and feel of the golf website to present a more attractive picture of the facility and all the amenities and services that are offered. Social media is the fastest growing marketing tool in golf and Captains’ golf staff should become more active with Facebook and Twitter, which can be used to communicate “what’s going on” type of messages (who won a tournament, who had a hole-in-one, etc.). This tends to help build loyalty and repeat activity. For example, YouTube is the second most utilized search engine on the internet. Captains GC courses could develop a presence, including informational videos of the facility and golf course, as well as activities such as league play, tournaments, & instruction. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 66 Recommended Fee / Pricing Changes Based on our review of Captains Golf Course fees and the competitive market environment, the NGF makes the following recommendations regarding golf course pricing: • The Town will continue its program of approximately 4.0% increases in green, cart and membership fees every other year, with next increases scheduled for 2023. • The overall pricing of green, cart and member fees should be actively monitored to keep CGC in a market niche at the same level, or slightly below key competitors like Olde Barnstable Fairgrounds, Bayberry Hills and Cranberry Valley. Brewster should continue its practice of no weekday/weekend differential in the peak summer season. • Captains GC will maintain the current pricing convention, with off-season weekday/weekend segmentation (about 25% discount weekdays), and other price breaks after 1:00 PM and 3:00PM in spring and 2:00 and 4:00PM in summer. • The Brewster annual pass is currently at $1,053 per for residents and $1,752 for non- residents. The Brewster non-resident pass is the highest priced in the market, and is appropriate given the Town’s goals. The Town should monitor the resident pass rates to be sure to stay in the range that is comparable to Yarmouth, Barnstable and Sandwich, and clearly higher than Dennis and Harwich. We recommend that the Town continue to increase this price by 4% every two years (next for the 2023 season). Recommendations for Increased Beginner Participation We note that new player development will be one of the critical elements to the long-term viability of Captains GC, and this should be a point of emphasis at the facility. The Town’s golf course has a modest lesson program with limited resources and staff time. The NGF has documented that a critical element to the long-term viability of public golf courses is player development, especially a strong Junior Program, and it is important that these initiatives are continued. Also, because of today’s difficult climate for golf operations, tapping latent demand among groups that traditionally have shown relatively low golf participation – such as women and minorities – is more important than ever. PGA data shows every new golfer developed could be worth as much as $250 per year (10 rounds at $25), and the common successful player development program produces at least 200 new golfers per facility. The Town should encourage its PGA professionals to include new beginner programs that work, and how to properly implement and promote these programs (i.e., “Get Golf Ready,” “Hook a Kid on Golf,” “Drive Chip & Putt,” “PGA Junior League,” and LPGA’s “Teaching Her” program). Increased Women’s Participation - This represents a major “industry best practice” and is recommended by NGF to every golf course we review. At present, women account for about 20% of golf participants, but 40% of beginners. There are many reasons why female golf participation is low, but increasing participation from women is one of the keys to maximizing revenue. The most common issues relate to golf course difficulty, retail selection, on-course services (restrooms, drinking fountains), food / beverage selection, and customer service. Golf and the Millennial Generation In 2015, the NGF completed a comprehensive review of golf participation among what was then a 18-35-year-old group known collectively as the “Millennial” generation. The NGF’s study of millennials was in reply to a drop-in participation among this age group and a part of an industry effort to better understand golfing habits of young adults. What we discovered was that while this important segment of the population is more closely tethered to golf than most think, the commitment isn’t what it was compared to previous generations when they were the same age. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 67 The NGF’s “State of the Industry” report in 2019 stated clearly that “We haven’t lost the Millennials, but we seem to be missing a big opportunity to attract more of them.” The NGF has confirmed that one out of every four golfers are a Millennial, and there are 12 million non- golfers among the generation that are “very or somewhat interested” in playing golf. NGF counts six million Millennials playing 90 million rounds and spending $5 billion on golf annually. However, their spending patterns are different than their parents and should be considered in activities and marketing. SPECIFIC PHYSICAL RECOMMENDATIONS The NGF recommendations for enhancing the physical plant of Town golf facilities considers specific improvements that can be made to Captains to both catch up on deferred items and make some new investment to enhance the overall facility offering. The NGF vision for the future of Captains GC considers the most ideal physical condition of the facility so as to maximize the potential economic performance. Completion of Capital Investment Considerations The full capital plan for the next ten years was documented previously in this report and summarized in the table below: Captains GC Summary of Capital Upgrades – FY2022-FY2026 Facility Items FY2022 FY2023 FY2024 FY2025 FY2026 Total Total Golf Course $317,000 $335,000 $2,380,000 $130,000 $395,000 $3,557,000 Total Clubhouse $135,000 $125,000 $50,000 $60,000 $0 $370,000 Total Maintenance $457,000 $225,000 $290,000 $1,100,000 $250,000 $2,322,000 Grand Total of Capital Projects $909,000 $685,000 $2,720,000 $1,290,000 $645,000 $6,249,000 NGF Consulting estimates based on architect’s input and input from Captains GC staff. This estimate has been provided to allow for preliminary planning and amounts may not reflect actual costs for Town of Brewster. The Town should engage appropriate research to cost out specific projects. Longer Term Capital Investment Considerations (Beyond 5 Years) In addition to the above-noted capital investments, the Town should begin planning for additional capital needs likely to arise in the 2025-2030 time period, including: Longer Term Investment Considerations Details + Cost Expected Cost Current Age Irrigation System Replace the 2004 irrigation system $2,400,000 17 Years Additional Maintenance Equipment Continue a program of annual replacement $200,000/yr Various DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 68 Captains GC – Projected Financial Performance (2021-2030) As part of this NGF Consulting study effort, the consultants have prepared an analysis to show the potential economic performance of Captains Golf Course over the next 10 years of operation. In this section, the economic potential of the Town’s golf course is evaluated and summarized, with estimates of performance for the next five years of operation. All NGF projections are based on a set of assumptions that may or may not become reality. We feel that these projections represent the best effort to create a “fair estimate of performance” for these facilities based on our complete review of each Individual aspect of the operation. SUMMARY OF CAPTAINS GC PROJECTIONS (2021-2030) In the tables that follow, NGF provides summary projections for Captains GC based on assumptions that are outlined in this section. The primary assumption that drives NGF projections is that Captains GC will continue to provide outstanding facilities in the best physical condition possible, a high level of customer service to both members and daily fee players and a commitment to efficient operations with enhanced marketing. We recognize that this estimate is prepared in March 2021, and so all financial estimates are prepared in 2021 dollars. A summary of NGF assumptions is detailed below: Basic Assumptions • The overall economic condition remains stable, without any sizable increase or decrease in the Barnstable County area economy, employment, or visitation. Additionally, that there are no significant setbacks relative to Covid-19. • Captains GC will operate with service and conditions as described, placing the facility in the upper range of public golf courses in the Cape Cod market. • CGC will continue to operate with a traditional mix of revenue centers common in public-access golf, with the predominance of golf activity derived from a mix of passholders and daily fee customers, with additional revenue from clubhouse and driving range operations. • The basic pricing structure will remain with slight (approximately 2.5%) increases in golf playing fees every other year to keep up with inflation. Memberships will continue to be offered at a comparable rate, subject to the same 2.5% increase every other year, but with the Town no longer offering the two-year membership in 2021. • All NGF financial projections assume a “status quo” on basic operating expenses, with some modification to account for NGF-recommended changes. • The marketing of Captains GC is enhanced in 2021, with emphasis on technology, website & email programs, and direct selling. All marketing activities will target both local and non-local golfers, plus golf events and tournaments. Projected Revenue and Expense Assumptions – CGC (FY2021-FY2030) • NGF has assumed a basic inflation factor of 2.5% for general expenses, 6.0% for fringe benefits and the afore-mentioned 2.5% every second year for revenues to reflect alternate year fee increases (beginning in 2023). DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 69 • Food & Beverage rent is assumed at $20,000 to the Town in 2021, $42,000 in 2022, $45,000 in 2023 and then $50,000 each year thereafter through 2030. • The projection for FY2021 assumes the trends established in FY2020 are the first six months of FY2021 are continued, with 84,680 total rounds and 1,142 members, including 79 seasonal members. NGF has assumed an average of 40 rounds per member per year. The resulting rounds estimate for 2021 is 39,000 guest rounds and 45,680 member rounds. • For the purpose of conservatism, the projection for 2022 through 2030 assumes a stable level of members and rounds, as CGC is running up against capacities that are not expected to be exceeded. Annual fee players are projected to decline slightly, falling to 1,175 in FY2022 down to around 1,045 by 2030 (including seasonal). Assuming the 40 rounds per member per year, annual fee players will play 47,000 rounds in 2022, falling to 41,800 by 2030. • As member rounds are declining, it is assumed that Captains GC will grow guest play enough to hold total facility rounds at or around 80,000 to 81,000 rounds each year from 2022 through 2030. The rounds activity projected by NGF assume a new “stable” level of activity, with some years falling below and some years rising above this expected ‘average’ figure. • NGF has prepared financial projections based on blended average green + cart fees for the various categories of rounds derived from green fee pricing presented earlier. These average rates are then applied to daily fee rounds for the next 10 years, with 2.5% increases every other year. Average revenue for additional ancillary items such as merchandise, driving range and other miscellaneous items has been projected and applied to all rounds. A summary of average revenues per round for BRGC: Blended Average Fees FY2022 FY2024 FY2026 FY2028 FY2030 Avg. Member Fees (per membership) $924.82 $961.81 $1,000.29 $1,040.30 $1,081.91 Average per Round Revenue Daily Fee Rounds (per DF Round) $52.90 $54.22 $55.58 $56.97 $58.39 Cart Fees (per DF + Memb. Rnd.) $8.50 $8.71 $8.93 $9.15 $9.38 Range Revenue (per Round) $1.60 $1.64 $1.68 $1.72 $1.77 Merchandise (per Round) $3.75 $3.84 $3.94 $4.04 $4.14 Other (per Round) $1.60 $1.64 $1.68 $1.72 $1.77 • Total operating expense projections are based on expenses estimated for the continued operation of Captains GC under the existing program as recommended by NGF. We note than many of the NGF recommendations do not require change in expenses, but rather a re-directing of efforts and energies. • The total direct cost of pro shop sales (COS) is estimated at 77.5% of total shop sales, based on the historical pattern at CGC, modified slightly to reflect industry standards. Estimated Future Performance - Captains GC (FY2021-FY2030) Using the above-noted assumptions, a cash flow model for the Captains GC operation for the next 10 years has been created. Each category of revenue and expense has been listed separately, and presented in the tables on the following pages. All figures have been rounded to the nearest $100 for simplicity. The primary assumption that drives the NGF Consulting financial projections is that the CGC facility will continue to be operated in similar fashion to other comparable golf facilities operating in the upper-middle-range of public-access golf in this market. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 70 Estimated Revenue and Cost of Sales Performance Projections (FY2021-FY2030) Captains Golf Course Summary of Projected Revenue and Cost of Sales (FY2021-FY2030) FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 Guest Rounds 39,000 34,000 34,500 35,000 35,500 36,000 36,500 37,000 37,500 38,000 Member Rounds 45,680 47,000 46,400 45,400 44,800 44,200 43,600 43,000 42,400 41,800 Total Rounds 84,700 81,000 80,900 80,400 80,300 80,200 80,100 80,000 79,900 79,800 Revenue Member Dues & Fees $835,100 $1,086,700 $1,115,700 $1,091,700 $1,120,300 $1,105,300 $1,133,900 $1,118,300 $1,146,800 $1,130,600 Green Fees 2,063,100 1,798,600 1,870,700 1,897,800 1,973,000 2,000,800 2,079,300 2,107,800 2,189,700 2,218,900 Cart Fees 719,800 688,500 704,800 700,500 717,100 716,200 733,200 732,300 749,700 748,700 Driving Range 135,500 129,600 132,700 131,900 135,000 134,800 138,000 137,800 141,100 140,900 Snack Bar Rent 20,000 42,000 45,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Pro Shop Sales 275,200 303,800 311,000 309,000 316,400 316,000 323,500 323,100 330,700 330,300 Other/Misc./Solar 2,500 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 22,000 Total Revenue $4,051,200 $4,071,200 $4,201,900 $4,202,900 $4,333,800 $4,345,100 $4,479,900 $4,491,300 $4,630,000 $4,641,400 Less Cost of Sales: (COS) Pro Shop Merchandise 213,300 235,400 241,000 239,500 245,200 244,900 250,700 250,400 256,300 256,000 Total COS $213,300 $235,400 $241,000 $239,500 $245,200 $244,900 $250,700 $250,400 $256,300 $256,000 Gross Margin $3,837,900 $3,835,800 $3,960,900 $3,963,400 $4,088,600 $4,100,200 $4,229,200 $4,240,900 $4,373,700 $4,385,400 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 71 Estimated Total Operating Expense Projections (FY2021-FY2030) Captains Golf Course Summary of Projected Operating Expense (FY2021-FY2030) FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 Personnel Full-Time Maintenance $545,000 $558,600 $572,600 $586,900 $601,600 $616,600 $632,000 $647,800 $664,000 $680,600 Part-Time Maintenance 235,000 240,900 246,900 253,100 259,400 265,900 272,500 279,300 286,300 293,500 Full-Time Admin 235,000 240,900 246,900 253,100 259,400 265,900 272,500 279,300 286,300 293,500 Part Time Admin 195,000 199,900 204,900 210,000 215,300 220,700 226,200 231,900 237,700 243,600 Overtime + Longevity 55,000 56,400 57,800 59,200 60,700 62,200 63,800 65,400 67,000 68,700 Fringe Benefits 600,000 636,000 674,200 714,700 757,600 803,100 851,300 902,400 956,500 1,013,900 Sub-Total Personnel $1,865,000 $1,932,700 $2,003,300 $2,077,000 $2,154,000 $2,234,400 $2,318,300 $2,406,100 $2,497,800 $2,593,800 General Expenses Repairs, Maint. & Supplies $400,000 $410,000 $420,300 $430,800 $441,600 $452,600 $463,900 $475,500 $487,400 $499,600 Clubhouse R&M+Supplies 70,000 71,800 73,600 75,400 77,300 79,200 81,200 83,200 85,300 87,400 Cart Lease 120,000 123,000 126,100 129,300 132,500 135,800 139,200 142,700 146,300 150,000 Utilities 125,000 128,100 131,300 134,600 138,000 141,500 145,000 148,600 152,300 156,100 Credit Card Processing 55,000 56,400 57,800 59,200 60,700 62,200 63,800 65,400 67,000 68,700 Marketing 40,000 41,000 42,000 43,100 44,200 45,300 46,400 47,600 48,800 50,000 Insurance 90,000 92,300 94,600 97,000 99,400 101,900 104,400 107,000 109,700 112,400 Other/Town Hall 160,000 164,000 168,100 172,300 176,600 181,000 185,500 190,100 194,900 199,800 Total General Exp. $1,060,000 $1,086,600 $1,113,800 $1,141,700 $1,170,300 $1,199,500 $1,229,400 $1,260,100 $1,291,700 $1,324,000 Total Expenses $2,925,000 $3,019,300 $3,117,100 $3,218,700 $3,324,300 $3,433,900 $3,547,700 $3,666,200 $3,789,500 $3,917,800 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 72 Estimated Summary of Operations Projections (FY2021-FY2030) Captains Golf Course Summary of Operations (FY2021-FY2030) FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 Guest Rounds 39,000 34,000 34,500 35,000 35,500 36,000 36,500 37,000 37,500 38,000 Member Rounds 45,680 47,000 46,400 45,400 44,800 44,200 43,600 43,000 42,400 41,800 Total Rounds 84,700 81,000 80,900 80,400 80,300 80,200 80,100 80,000 79,900 79,800 Revenue Golf Fee Revenue $3,618,000 $3,573,800 $3,691,200 $3,690,000 $3,810,400 $3,822,300 $3,946,400 $3,958,400 $4,086,200 $4,098,200 Ancillary Revenue 433,200 497,400 510,700 512,900 523,400 522,800 533,500 532,900 543,800 543,200 Total Revenue $4,051,200 $4,071,200 $4,201,900 $4,202,900 $4,333,800 $4,345,100 $4,479,900 $4,491,300 $4,630,000 $4,641,400 Cost of Sales $213,300 $235,400 $241,000 $239,500 $245,200 $244,900 $250,700 $250,400 $256,300 $256,000 Gross Margin $3,837,900 $3,835,800 $3,960,900 $3,963,400 $4,088,600 $4,100,200 $4,229,200 $4,240,900 $4,373,700 $4,385,400 Personnel Expenses $1,865,000 $1,932,700 $2,003,300 $2,077,000 $2,154,000 $2,234,400 $2,318,300 $2,406,100 $2,497,800 $2,593,800 Operating Expenses $1,060,000 $1,086,600 $1,113,800 $1,141,700 $1,170,300 $1,199,500 $1,229,400 $1,260,100 $1,291,700 $1,324,000 Total Facility Expense $2,925,000 $3,019,300 $3,117,100 $3,218,700 $3,324,300 $3,433,900 $3,547,700 $3,666,200 $3,789,500 $3,917,800 Operating Income $912,900 $816,500 $843,800 $744,700 $764,300 $666,300 $681,500 $574,700 $584,200 $467,600 Other Items: Capital $110,000 $909,000 $685,000 $2,270,000 $1,290,000 $645,000 $200,000 $200,000 $200,000 $200,000 Facility Net $802,900 ($92,500) $158,800 ($1,525,300) ($525,700) $21,300 $481,500 $374,700 $384,200 $267,600 Cumulative Net $802,900 $710,400 $66,300 ($1,366,500) ($2,051,000) ($504,400) $502,800 $856,200 $758,900 $651,800 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 73 Cash Flow Results – CGC (FY2021-FY2030) The results of the NGF financial projection analysis show that with the removal of the $840,000 debt service, the Captains GC will have new capital available to complete many of the capital upgrades identified by NGF in 2021. However, the largest of these capital expenditures – 1998 irrigation system and maintenance facility upgrades – will not be covered by retained earnings and therefore must be funded separately. After completion of the major near-term facility upgrades in FY2026, Captains GC should enter a period of more modest capital needs through FY2030 that will allow the facility to build back a retained surplus. The estimate presented above shows total operating income remaining strong, exceeding $467,000 in every year through 2030. However, the large inflation in key expense items, most notably employee fringe benefits, means the operating income will shrink every year through 2030, making any unexpected capital requirements potentially problematic for the Town of Brewster. This reality makes the NGF recommendation to keep up with planned bi-annual fee increases and resisting public pressure to keep fees as low as possible. Captains GC is in a strong position to cover all its basic operating expenses, including employee benefits, but over a longer term (beyond 10 years) the current inflation in this line items suggests it will be challenging for Captains GC to properly fund all expenses and capital requirements from golf playing fee revenue. Support for Projections and Potential Mitigating Factors Support for Projections • Stable Cape Cod resident and visitor segment, and a growing permanent resident base. • Potentially strong and diversified local economy, with traditionally low unemployment. • A potentially high volume of seasonal visitors to supplement demand. • The high likelihood that no other new golf course will be developed in the CGC trade area due to lack of land and the high cost of development. As such, the overall supply- demand ratio balance should remain stable and even become more favorable for existing golf courses. • The site is immediately accessible and convenient for a wide geographic area. Site visibility and automobile accessibility from major roadways is good, particularly from the Mid-Cape Highway. • A clubhouse facility that adds to the attraction and appeal of this facility. The clubhouse at CGC is unique for this area and has the potential to add significantly to ancillary sales. In addition to standard golf clubhouse sales, the clubhouse brings an added potential of banquet demand and room-rental fee income that may be untapped. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 74 Potential Threats / Mitigating Factors Relative to Projections While there appears to be considerable evidence to support continued strong activity and revenue performance at CGC, there are mitigating factors that could reduce revenue and/or increase expenses at the golf course. These include: • Regional economic recession – previous recessions have impacted the performance of public golf courses. This is particularly acute in 2020 as the Town deals with fallout from the Covid-19 crisis and economic slowdown. • Limited time availability for golf due to long commute times to the lower Cape with the non-local demand base that is required to sustain golf at this location. • Continued overall decline in golf participation – recent trends show declines in golf participation, especially among the younger generation. • Golf maintenance expenses – The cost to maintain golf courses is dependent on many variables that cannot be controlled by the Town. Items such as fuel, chemicals, other utilities, labor and other maintenance expenses have shown high inflation in recent years, which could negatively impact the operation. LIMITING CONDITIONS The income estimates presented in this business plan have been prepared based on existing and projected market conditions, the quality of the subject facility and the intended segment of the golf market toward which it is oriented. Particular focus was paid to the actual performance of area public golf courses, and the potential impact of enacting various improvements to CGC facilities and marketing. The NGF is confident that growth in activity and revenue can be achieved at Captains GC after the proposed facility and operational improvements. From a practical standpoint, those managing the facility will need to respond to variable market conditions as well as unforeseen maintenance needs. NGF is confident that the facility will be able to continue to achieve results as presented in our analysis beyond the next five years of operation. When projecting a realistic market share, it is important to realize that the total number of rounds to be played on a golf course in any given year may be lower than the market opportunity appears to suggest. NGF believes it is important to project the future performance of the Town’s golf facility in such a way as to help the Town make financial decisions based on realistic expectations. It is obviously possible that either more or fewer golf rounds can be sold. We note that our projections for future performance of Captains GC anticipate strong market demand through the next decade of operation. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 75 Summary Statement Town of Brewster continues to own and operate the 36-hole Captains Golf Course that appears to be very well-run and producing activity and revenue well above the expected standard. This was especially true in the second half of 2020 (first 6 months of FY2021), as Captains GC reached new highs in revenue during the mini “golf boom” associated with the Covid-19 pandemic. However, in addition to strong revenue, Captains GC also has higher-than-standard expenses, although much of this is related to the Town’s desire to provide an outstanding golf course product and a premium level of service. In reviewing this facility, it is clear to NGF consultants that while the Captains’ operation is sound, there are some new investments the Town can make to help better position the golf course for the long-term, and help ensure the quality and sustainability of Captains GC. This includes taking advantage of the dollars that used to be earmarked for debt retirement, and adopting a new program of capital investment to address aging equipment and other infrastructure, especially irrigation, at the Town golf facility. In addition, the Town would likely benefit from enhancing its use of technology and marketing the facility to attract a higher level of participation from non-resident tourists and visitors to the area. In summary, it is clear that the Town’s golf course is very well managed and in position to continue strong activity and rounds performance. The upgrades that will be completed in 2021- 2025 period means that the Town will have addressed the most significant capital requirements at Captains, and can now turn its focus to considering other investments that could lead to even greater revenue production, such as expansion/improvement of outdoor dining services. Captains offers a challenging golf course that is well-located and popular with golfers of all skill levels. The 36-hole golf facility, all appurtenant amenities and variable pricing gives the Town an opportunity to offer “something for everyone” within its own golf course. In review of this golf course, the NGF has identified five important actions that the Town can take right now to improve Captains GC performance: 1. Commit to completing the $6.2 million in capital projects over the next five years. 2. Fund all needed improvements using earnings retained from golf operations revenue, mindful of the reality that some larger projects like irrigation and maintenance facility improvements may be too large and will require some outside funding mechanism. 3. Enhance expertise in the technology that supports operations (POS, website, etc.), and use these platforms to enhance the marketing and promotion to less frequent users. 4. Increase focus on new player development and beginner programs, especially with juniors and young adults. 5. Consider other new investments to help modernize and “liven up” facilities like the patio expansion / covering and theme upgrade to help broaden appeal, especially with younger adults. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 76 Appendices A: Golf Course Life Cycle B: National Rounds Played Report C: Demographic, Golf Demand and Golf Supply Data DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 77 APPENDIX A – GOLF COURSE LIFE CYCLE DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 78 APPENDIX B – NATIONAL ROUNDS PLAYED REPORT DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 79 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 80 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 81 APPENDIX C – LOCAL DEMOGRAPHIC, DEMAND AND SUPPLY DATA Captains Golf Course 5-mile ring 10-mile ring Barnstable County State of Massachusetts U.S. Summary Demographics Population 1990 Census 25,045 53,665 186,609 6,014,825 248,584,652 Population 2000 Census 28,649 62,075 222,230 6,349,050 281,399,034 CAGR 1990-2000 1.35% 1.47% 1.76% 0.54% 1.25% Population 2010 Census 27,541 58,460 215,888 6,547,629 308,745,538 CAGR 2000-2010 -0.39% -0.60% -0.29% 0.31% 0.93% Population Estimate 2019 27,281 57,592 212,285 6,902,551 328,252,472 Population 2024 Projected 27,719 58,527 212,766 7,064,044 339,844,802 CAGR 2019-2024 0.32% 0.32% 0.05% 0.46% 0.70% CAGR 2010-2024 0.05% 0.01% -0.10% 0.54% 0.69% Median HH Income (2019) $78,913 $72,253 $74,182 $81,107 $63,709 Median Age (2019) 59.1 59.2 53.4 39.7 38.3 Ethnicity White 94.4% 93.8% 91.3% 76.5% 69.7% African American 2.1% 2.6% 3.5% 9.1% 13.4% Asian 1.2% 1.1% 1.7% 7.3% 6.0% All Other 2.3% 2.5% 3.6% 7.2% 10.9% Hispanic Population Hispanic 2.5% 2.7% 3.3% 11.4% 17.9% Not Hispanic 97.5% 97.3% 96.7% 88.6% 82.1% CAGR = Compound Annual Growth Rate Captains Golf Course 5-mile ring 10-mile ring Barnstable County State of Massachusetts U.S. Golf Demand Indicators Total Households 14,355 28,612 100,827 2,732,224 128,476,935 Number of Golfing Households 2,833 5,220 18,362 392,447 17,484,590 Projected Golfing Households (2024) 3,084 5,615 19,191 407,722 18,258,060 Projected Annual Growth Rate 1.70% 1.50% 0.90% 0.80% 0.90% Seasonal Golfing Households 1,890 4,150 9,728 20,492 748,477 Latent Demand/Interested Non-Golfers 4,392 8,362 32,188 1,089,479 47,425,600 Household Participation Rate 19.70% 18.20% 18.20% 14.40% 13.60% Number of Golfers 3,863 7,038 25,941 638,504 24,241,030 Rounds Potential (resident golfers) 176,164 359,626 1,000,891 11,014,370 434,080,100 Estimated Course Rounds (in-market supply) 206,832 372,277 1,171,642 9,295,277 434,084,100 Demand Indices Golfing Household Participation Rate 145 134 134 106 100 Seasonal Golfing Households 2,258 2,488 1,655 129 100 Latent Demand/Interested Non-Golfers 105 103 105 109 100 Rounds Potential per Household (resident golfers) 363 372 294 119 100 DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 82 Captains Golf Course 5-mile ring 10-mile ring Barnstable County State of Massachusetts U.S. Golf Supply Golf Facilities Total 6 11 39 357 14,604 Public 3 8 23 235 10,896 Public: Daily Fee 0 2 11 177 8,377 Public: Municipal 3 6 12 58 2,519 Private 3 3 16 122 3,708 Public Golf Facilities by Price Point Premium (>$70) 2 6 13 52 1,428 Standard ($40-$70) 0 0 7 97 4,081 Value (<$40) 1 2 3 86 5,387 Golf Holes Total 117 198 702 5,607 247,815 Public 63 144 405 3,618 179,760 Public: Daily Fee 0 27 171 2,718 137,760 Public: Municipal 63 117 234 900 42,000 Private 54 54 297 1,989 68,055 Non-Regulation (Executive & Par-3) 0 27 117 495 19,872 Net Change* Net Change in Holes past 5 years 0 0 0 -198 -14,346 Percentage Total Holes Past 5 Yrs 0.00% 0.00% 0 0 -5.50% Net Change in Holes past 10 Years 0 0 -9 -252 -21,888 Percentage Total Holes Past 10 Yrs 0.00% 0.00% 0 0 -8.10% *Numbers may include courses under construction and temporarily closed at the end of the year. DRAFT National Golf Foundation Consulting, Inc. – Captains GC Facility & Operations Review – 83 Captains Golf Course 5-mile ring 10-mile ring Barnstable County State of Massachusetts U.S. Supply-Demand Ratios Households per 18 Holes Total 2,208 2,601 2,585 8,771 9,332 Public 4,101 3,577 4,481 13,593 12,865 Public: Daily Fee 0 19,075 10,613 18,094 16,787 Public: Municipal 4,101 4,402 7,756 54,644 55,062 Private 4,785 9,537 6,111 24,726 33,981 Premium (>$70) 4,785 4,087 6,722 48,358 74,329 Standard ($40-$70) 0 0 16,805 28,167 29,451 Value (<$40) 0 28,612 67,218 57,521 32,978 Golfing Households per 18 Holes Total 436 475 471 1,260 1,270 Public 809 653 816 1,952 1,751 Public: Daily Fee 0 3,480 1,933 2,599 2,285 Public: Municipal 809 803 1,412 7,849 7,493 Private 944 1,740 1,113 3,552 4,625 Premium (>$70) 944 746 1,224 6,946 10,115 Standard ($40-$70) 0 0 3,060 4,046 4,008 Value (<$40) 0 5,220 12,241 8,262 4,488 Household Indices Total 24 28 28 95 100 Public 32 28 35 107 100 Private 14 28 18 73 100 Premium (>$70) 6 5 9 64 100 Standard ($40-$70) 0 0 57 95 100 Value (<$40) 90 90 211 181 100 Golfing Household Indices Total 35 38 37 100 100 Public 47 38 47 113 100 Private 21 38 24 78 100 Premium (>$70) 9 7 12 67 100 Standard ($40-$70) 0 0 76 101 100 Value (<$40) 131 121 283 191 100 Rounds per 18 Holes Rounds Potential (resident golfers) 27,102 32,693 25,664 35,359 31,529 Estimated Course Rounds (in-market supply) 31,820 33,843 30,042 29,840 31,530 DRAFT