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Home My WebLink AboutItem 10 Request for Selection of Interim Operator for Forest Lake Golf Course City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org STAFF REPORT Meeting Date: April 1, 2025 Item #: 10 Contact Name: Michael Rumer Department Director: Michael Rumer Contact Number: Ext. 6434 City Manager: Craig Shadrix Subject: Request for Selection of Interim Operator for Forest Lake Golf Course (May 1 – Nov. 2, 2025), located at 10521 Clarcona Ocoee Road. (Assistant City Manager Rumer) Background Summary: In the event the City Commission approves the Seventh Amendment to Ground Lease Agreement with Forest Lake Golf Course, the City will need an Interim Operator of Forest Lake Golf Course until a permanent replacement operator is chosen via the Request for Proposals (“RFP”) process. The current tenant at Forest Lake Golf Course will continue operating all aspects of the club and facilities until the close of business on April 30, 2025. The new permanent operator is anticipated to take over operations at Forest Lake Golf Course on November 3, 2025. Therefore, the City is in need of an Interim Operator of Forest Lake Golf Course from May 1, 2025, to November 2, 2025. The City has received proposals from three qualified local vendors to take over the Golf Course’s interim operations from May 1, 2025, to November 2, 2025. The City has obtained all submittals in the same format, to allow the Commission to easily compare the proposals on an “apples to apples” basis. Issue: Which, if any, Interim Operator would the Mayor and Commission like to choose to operate the Forest Lake Golf Course from May 1, 2025, to November 3, 2025? Recommendations: City staff and consultants are available to address any questions the Mayor or Commissioners may have regarding the submittals. Attachments: 1. Forest Lake Golf Six Months Revenue for Interim Operator Camparison 2. Tamarack Golf Management LLC - Interim Operator Fee Proposal 3. Down To Earth - Interim Operator Fee Proposal 4. Hampton Golf - Interim Operator Fee Proposal Financial Impacts: Any Carrying Costs associated with the Interim Operator will be funded by allocations in the mid-year budget amendment. Page 1062 of 1085 City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org Type of Item: Regular Page 1063 of 1085 PLANNING • GENERAL CONSULTING • OWNER'S REPRESENTATIVE SERVICES WWW.ZHAINTL.COM Corporate Office | Maitland Green II x 2290 Lucien Way, Suite 300, Maitland, Florida USA 32751 x T:407.422.7487 F:407.422.7413 Forest Lake Golf Club Interim Operator Fee Proposal City of Ocoee has provided the 2024 actual revenue figures as a reference for your proposal. This is anticipated to be a six month (May 1 to November 1) management agreement, with potential to extend by a few months, if necessary. Proposed monthly fee will apply regardless of duration. Proposer is to provide a fee that is made up of any of the following: x Flat monthly fee as a percentage of total revenue x Lump sum dollar amount fee per month x Some combination of both (for example: this could be a base fee with revenue share options) o If this option is chosen, the formula must be very clear, straightforward and unambiguous. Anything other than the options provided above will be considered non-responsive. The City requires full transparency related to all revenue, expenses (including interim operator fee) and monthly net profit. Actual Revenue May 2024 June 2024 July 2024 August 2024 September 2024 October 2024 Pro Shop $14,993 $18,786 $12,392 $12,540 $10,407 $11,118 Greens Fees $240,314 $217,314 $176,989 $174,553 $162,879 $152,057 Range $17,918 $15,318 $11,958 $12,740 $11,817 $12,095 Food & Beverage $53,565 $49,115 $44,942 $42,113 $36,330 $33,651 Total Revenue $326,790 $300,533 $246,281 $241,946 $221,433 $208,921 Total Rounds 5,777 5,181 4,588 4,450 4,025 3,885 Page 1064 of 1085 Proposer: Tamarack Golf Management, LLC Fee Proposal: Flat monthly fee as a percentage of gross revenue 50% profit sharing split between Tamarack & the City Lump sum dollar fee amount per month $12,500 GIVEN TO the City If a combination concept is proposed, it must be explained in 30 words or less in bullet format.  Tamarack will assume all financial commitments o Start up costs and day-to-day operational costs  Tamarack will establish vendor accounts and relationships  No City employees are required to be on-site daily Differentiation narrative: Proposer has the opportunity to articulate a differentiation message in 30 words or less. Tamarack will ensure that the City is as prosperous as possible and share the success. We are confident we will produce, at minimum, the profit listed in the chart provided. By submitting this proposal, proposer agrees to assume the existing golf cart lease and hire employees as required. Page 1065 of 1085 RE: March 27, 2025 Page | 2 Proposer: SSS Down To Earth OPCO LLC Fee Proposal: Flat monthly fee as a percentage of gross revenue __________ Lump sum dollar fee amount per month __________ If a combination concept is proposed, it must be explained in 30 words or less in bullet format. x $5000 per month management fee x Profit share based on 30% of monthly net profits, capped at a maximum of $4000 per month. x Maximum monthly payment - management fees and profit share is $9000. Differentiation narrative: Proposer has the opportunity to articulate a differentiation message in 30 words or less. The Down To Earth Difference x Depth of experienced personnel x Buying power: we manage or provide maintenance services to over 20 Central Florida golf courses x We have Landscape and Irrigation Divisions supporting Golf Management Page 1066 of 1085 RE: March 27, 2025 Page | 2 Proposer: FLGC GOLF HOLDINGS, LLC – HAMPTON GOLF Attention: Travis Norman, Executive Vice President of Hampton Golf (Proposer shall be a special purpose entity created and organized upon selection as “interim operator” by the City of Ocoee) Fee Proposal: Flat monthly fee as a percentage of gross revenue N/A Lump sum dollar fee amount per month $5,000 PER MONTH MANAGEMENT FEE WHICH INCLUDES ALL MANAGEMENT SERVICES FOR THE GOLF COURSE, RESTAURANT, AND OTHER RELATED FACILITIES, INCLUDING WITHOUT LIMITATION, MARKETING, ACCOUNTING, MAINTENANCE, AND HUMAN RESOURCES. THIS IS AN ALL-INCLUSIVE MANAGEMENT FEE PROPOSAL, OF WHICH WILL PREVENT THE CITY OF OCOEE FROM BEING CHARGED FOR A LA CARTE SERVICES AND OTHER MISCELLANEOUS FEES. ALL TRANSITION SERVICES AND OTHER WORK REQUIRED OF PROPOSER PRIOR TO MAY 1, 2025, SHALL BE PERFORMED BY PROPOSER AT NO CHARGE TO THE CITY OF OCOEE. If a combination concept is proposed, it must be explained in 30 words or less in bullet format. 50% OF THE MANAGEMENT FEE SHALL ONLY BE DUE AND PAYABLE TO PROPOSER IF PROPOSER OUTPERFORMED THE PROJECTIONS AND EXPECTATIONS OF THE OPERATING BUDGET, AS APPROVED BY THE CITY OF OCOEE. ALL PROFITS WILL BE THE SOLE PROPERTY OF THE CITY OF OCOEE (E.G., NO PROFIT SHARE). Differentiation narrative: Proposer has the opportunity to articulate a differentiation message in 30 words or less. PROPOSER HAS PARTNERED WITH HAMPTON GOLF TO MANAGE AND OPERATE THE GOLF CLUB, AND PERFORM ALL RELATED SERVICES, WHICH PROVIDES A MORE COST-EFFECTIVE AND EFFICIENT MANAGEMENT PROPOSAL TO THE CITY. By submitting this proposal, proposer agrees to assume the existing golf cart lease and hire employees as required. PROPOSER HEREBY AGREES TO ASSUME THE EXISTING GOLF CART LEASE AND HIRE ALL EMPLOYEES CURRENTLY EMPLOYED AT FOREST LAKE GOLF CLUB AS OF THE DATE OF THIS PROPOSAL. TO ENSURE AN EFFICIENT AND SMOOTH TRANSITION FROM THE CURRENT TENANT OCCURS, INCLUDING THE ASSUMPTION OF SAID GOLF CART LEASE AND THE ONBOARDING OF EMPLOYEES, PROPOSER WILL ASSIGN A MEMBER OF ITS EXECUTIVE TEAM TO BE ON PROPERTY WITHIN 48 HOURS OF PROPOSER BEING SELECTED AS INTERIM OPERATOR BY THE CITY OF OCOEE. Page 1067 of 1085