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Meeting Splainer March 2 2020

Meeting Splainer – March 2 2020

by BocaFirst

On March 2 2020, The Greater Boca Raton Beach and Park District (The District) met to  review the newly published document: “Updated Findings and Financial Projections for a Proposed New Public Golf Course at Ocean Breeze in Boca Raton, Florida”.

As explained in a prior article regarding the joint meeting between city and BPD, both sides agreed to disagree on several points. They disagreed on length of time to build the course, replacing an existing Interlocal Agreement (ILA), and whether The District could both build the course and meet other park and beach obligations. 

In a letter dated Feb 21 2020 from the city to The District, the city asked for “a detailed timeline of projected revenue and the projected operating and capital expenses for the construction of the Boca National Golf Course (BNGC) “. The City also requested “a facility construction phasing schedule that corresponds to the cash flow projections”.

The NGF provided a summary of development timelines for two options which was develop the east side of second ave first (A) or the west side of second ave (B) first with a budget of $14.5 million.

If option A (east side first) is chosen, no activity is projected on the west 18 holes until Oct 1 2023 due to lack of tunnel connection the two sides on second ave. 

If option B (west side first) is chosen, the course can open in phases allowing for play as early as Oct 1 2021. With steady growth, it can conservatively meet a projection of 50,000 rounds by the fourth year. 

It appears from the cash flow forecasts that opening the west side first is the best path forward. Total cumulative operating income from option A shows opening east side first after six years (through FY 2027) results in $384,000 yearly income versus option B west side first shows total yearly income of $929,600 with a net income after expenses of $208,800. 

The first two years (FY 2022-2024) show negative cash flow but by sixth year shows an excellent return for first full year based on 50,000 rounds  with expected increases each year. 

According to the NGF Final Report, these are conservative numbers to be on safe side when compared to Boca Muni at 94,557 rounds and Osprey Point at 100,000 paid rounds (see appendix A in attached full report). 

The next meeting of interest is a joint City and District meeting April 13 2020,

Points to Ponder.

  • Will the City come to the rescue to shorten the timeline by contributing $9 million as committed in prior discussions?
  • Will the City insist on replacing the original 2018 Interlocal Agreement for working with The District to build BNGC?
  • If the District walks away, what will the city build on the Ocean Breeze golf course?
  • Will the City submit their detailed plan for the course to the NGF for their revenue projections?
  • At the next joint meeting, will both sides agree to work together or will The District be forced to go it alone?  

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