Agenda Item 10A - Selva Marina Country Club Report CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
MAYOR PRO TEM MARK REPORT
AGENDA ITEM: 10(A) Report Pertaining to Selva Marina Country Club
DATE: October 4, 2012
SUBMITTED BY: Mayor Pro Tem Maria Mark
BACKGROUND: At the September commission meeting, it was the consensus of the Commission
to authorize Commissioner Mark, City Manager Hanson and Hank Brigman to
meet with the Selva Marina Country Club (SMCC) Board, and Hampton Golf to
determine if a viable approach is available to keeping the golf course open.
REPORT: Mayor Pro Tem Mark, City Manager Hanson and Mr. Brigman first met with City
Attorney Jensen to understand the legal parameters within which the City could
enter into discussions with SMCC or any other entity regarding the current
status of SMCC in carrying out the assignment as state above.
Subsequent to that meeting, on Tuesday, October 3, 2012, a meeting was held
with Mr. Travis Norman, Executive Vice President of Hampton Golf and the
primary liaison between Hampton Golf and the Selva Marina board.
Mr. Norman stated the club's major assets were its location and the golf course
layout —their major challenges were the lack of proper freshwater irrigation and
deferred maintenance costs of ranging between $1 million and $5 million.
Mr. Norman gave a comprehensive review of the projected operating revenue
and expenses of SMCC as an municipal facility. Their projections were the basis
for Mr. Brigman's report to the commission and show a positive cash flow on
what Mr. Norman characterizes as very conservative projections. We had an
open discussion about SMCC and Hampton's role as the management company
for approximately two years.
Mr. Hansen advised Mr. Norman that the City was considering contracting an
independent consultant to conduct a feasibility study and asked if Hampton Golf
would cooperate in sharing the information and data they've compiled. Mr.
Norman agreed to cooperate and work with any consultant should the City
pursue this plan.
That afternoon, the three of us met with Mr. Kirk Hansen, who was there as the
representative for the board. We discussed the current status of the club and
the debt of approximately $4.3 million. Mr. Hansen iterated the following based
on the most recent SMCC board meeting:
10(A) Report Pertaining to Selva Marina Country Club
October 4, 2012
Page 2
There is currently a deal being discussed with a developer to maintain the
current status and amenities of the Club which is the most desirable choice
being considered at this time. Mr. Hansen could not say for sure which 35 acres
or how much over 35 acres were being considered. He said that decision would
be based on the mandatory keeping of an 18 -hole golf course. He stated that
the Board would consider any reasonable option from the city of Atlantic Beach
as an alternative if the current deal does not work out.
City Manager Hanson stated at the present time, the City's current interests are
being at the table while Selva is considering the developer's offer and obtaining
the board's cooperation in working with an independent consultant if the City
retains one to conduct a feasibility study on the club. On behalf of the board,
Mr. Hansen agreed to these two requests.