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2004 01 09 CC� 4.CW Qua City Council Agendas are Available on the City's Web Page @ www.la-quinta.org CITY COUNCIL AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 -SPECIAL MEETING - Friday, January 9, 2004 - 9:30 A.M. Beginning Resolution No. N/A Ordinance No. N/A CALL TO ORDER Roll Call: Council Members: Henderson, Osborne, Perkins, Sniff, and Mayor Adolph PLEDGE OF ALLEGIANCE PUBLIC COMMENT At this time members of the public may address the City Council on items that appear within the Consent Calendar or matters that are not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. When you are called to speak, please come forward and state your name for the record. Please watch the timing device on the podium. For all Business Session matters or Public Hearings on the agenda, a completed "request to speak" form should be filed with the City Clerk prior to the City Council beginning consideration of that item. City Council Agenda 1 January 9, 2004 ADJOURNMENT Adjourn to a regularly scheduled meeting of the City Council to be held on January 20, 2004 commencing with closed session at 2:00 p.m. and open session at 3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta City Council meeting of Tuesday, January 9, 2004, was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and at Stater Bros. 78-630 Highway 111, on Wednesday, December 31, 2003. DATED: Wednesday, December 31, 2003 JUNE S. GREEK, CIVIC, City Clerk City of La Quinta, California City Council Agenda 3 January 9, 2004 CLOSED SESSION - NONE NOTE: Time permitting, the City Council may conduct Closed Session discussions during the dinner recess. In addition, persons identified as negotiating parties are not invited into the Closed Session meeting when the Agency is considering acquisition of real property. CONFIRMATION OF AGENDA PRESENTATIONS WRITTEN COMMUNICATIONS - NONE APPROVAL OF MINUTES - NONE CONSENT CALENDAR - NONE NOTE: Consent Calendar Items are considered to be routine in nature and will be approved by one motion. BUSINESS SESSION 1. CONSIDERATION OF GOLF COURSE MANAGEMENT FIRMS FOR SILVERROCK RANCH. A. MINUTE ORDER ACTION • Conduct Interviews • Selection of Golf Course Management Firm STUDY SESSION - NONE MAYOR'S AND COUNCIL MEMBERS' ITEMS - NONE City Council Agenda 2 January 9, 2004 (Ara #W4w5 OF T9 COUNCIL/RDA MEETING DATE: January 9, 2004 ITEM TITLE: Consideration of Golf Course Management Firms for SilverRock Ranch RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Authorize staff to negotiate a contract for professional services with the selected golf course management firm. FISCAL IMPLICATIONS: Cost proposals submitted by proposing firms generally range from $6,500 to $7,500 per month plus, in some cases, a percentage of gross operating revenue. The Redevelopment Agency has budgeted $600,000 for grow —in services. Operational costs after grow -in (i.e., upon opening of the golf course) will be the responsibility of the City and accounted for within the City's annual budgeting process. CHARTER CITY IMPLICATIONS: The City Charter and its principles of "home rule" allow the City sufficient flexibility to undertake economic development activities such as SilverRock Ranch. BACKGROUND AND OVERVIEW: The City Council authorized distribution of a Request for Proposals (RFP) for Golf Course Management Services at its November 4, 2003 meeting. The RFP outlined desired services including pre -opening tasks to monitor construction and supervise "grow -in" and, after opening, day-to-day maintenance and operational services. The flo City received twelve proposals. Six firms were interviewed by the Consultant Selection Committee. The Committee ranked the firms and recommended three for follow-up interviews with the City Council: • Troon Golf • OB Sports • Landmark Golf Management On December 16, 2003, the City Council authorized invitations to the aforementioned three firms for interviews at today's meeting. Submitted proposals from each of the three firms are included as Attachment 1. Attachment 2 includes cost proposals from each of the firms. Pursuant to City policy, cost proposals were not opened by the Consultant Selection Committee until the firms were ranked. Actual costs will be determined through negotiations with the selected firm. It should be noted, however, that the management fee will only be a portion of the overall project operations' budget (i.e., the selected firm with work with the City to develop a comprehensive budget for direct expenses associated with personnel and other project maintenance expenses). The Golf Course Operator is one of the most important choices being made relative to SilverRock Ranch in that the chosen firm will serve as the City's direct and daily public liaison. The operator maintains the course, promotes the project, and interacts daily with every visitor to the site. This firm, in essence, will become a representative extension of the City in terms of project style, image and service. 9:30 a.m. Troon Golf Troon Golf was founded in 1990 and has corporate headquarters in Scottsdale, Arizona. Troon indicates that it is responsible for more than 130 "high -end" golf clubs, including the Westin Mission Hills Club in Rancho Mirage. The Consultant Selection Committee asked each of the competing firms to name two firms other than their own that represent the very best in the profession. All five interviewing firms other than Troon mentioned Troon Golf as one of their two choices. Troon has extensive resort experience and some public experience (i.e., the City of Anaconda in Montana and the Iron Ranges Resources and Rehabilitation Agency with the State of Minnesota). 10:30 a.m. Landmark Golf Management Landmark Golf Management traces its roots back to Unique 'Golf Concepts in 1971. Landmark is headquartered in Indian Wells and lists six current management agreements, including Landmark Golf Club and Shadow Hills Golf Club, currently under construction, in Indio. Landmark principals have been instrumental in development and operation of numerous resort courses, including several desert courses in the Coachella Valley and in La Quinta. Landmark has closely followed the SilverRock Ranch project' �t 2 from its beginnings and has commented on course routing and design concepts. Principals within Landmark Golf Management reside locally. 11:30 OB Sports Management OB Sports Management was founded in 1972 and is headquartered in Scottsdale, Arizona. OB Sports lists fifteen current contracts including Ironwood Country Club in Palm Desert. OB Sports' proposal also indicates current and previous public experience, including agreements with the cities of Las Vegas, Incline Village and Wendover, Nevada and San Diego, California (Torrey Pines Golf Club). OB Sports emphasized player development programs during its interview with the Consultant Selection Committee. The Founder and CEO of OB Sports Management resides in La Quinta. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Authorize staff to negotiate a contract for professional services with the selected golf course management firm; or 2. Do not authorize staff to negotiate a contract for professional services with the selected golf course management firm; or 3. Provide staff with alternative direction. Respectfully submitted, t. Mark Weiss, Assistant City Manager Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Proposals. 2. Cost proposals. No 3 TROON GOLF Via Morning Priority Federal Express November 25, 2003 Mr. Mark Weiss Assistant Executive Director/ Project Manager La Quinta Redevelopment Agency 78495 Calle Tampico P.O. 1504 La Quinta, California 93353 Re: Troon Golf Response to the Golf Course Management Request for Proposal - SilverRock Ranch Dear Mr. Weiss: Pursuant to your Submittal Procedures this letter is to serve as the requested cover letter. Enclosed are eleven (11) separate envelopes. The ten (10) envelopes identified by the marking "Work Proposal" are Troon Golfs Response to items l(B)-1(D), under the Submittal Procedures. One (1) separate envelope identified by the marking "Cost Proposal" will serve as Troon Golfs cost proposal for the services identified in the Work Proposal. Please be advised that I, Andrew J. Anderson, shall be Troon Golf s contact person for the remainder of the selection process. I can be contacted twenty- four hours a day as follows: Andrew J. Anderson Vice President, Business Development Troon Golf L.L.C. 15044 North Scottsdale Road Suite #300 Scottsdale, Arizona 85254 (480) 477-0575(Fax) (480) 606-1000 (Main Switchboard) (480) 477-0425(Direct Line) (480) 695-4158 (Cell Phone) Aandersonaa troon olg from (email) Please be advised that I have included a package of Troon Golfs collateral information in each Work Proposal. Should you need additional copies of Troon Golfs collateral, please feel free to contact me. Troon Golf does not anticipate the use of any subconsultants other than those hired or retained by the La Quinta Redevelopment Authority. Troon Golf would be honored to be awarded the opportunity -to work with the prestigious team in place on this high profile project for the La Quints Redevelopment Authority. If you have any questions regarding any of the items enclosed, I encourage you to call me. Thank you for The Boards' time and consideration in this matter. Very ly, yours, An ew J. ers Vice President Business Development Enclosures �i TROON GOLF Table of Contents I. Corporate Qualifications and Expertise.............................................................1 II. New Management Contracts Within Last Five Years......................................4 III. Current Management Contracts.........................................................................6 . IV. Financial Stability Statement..............................................................................8 Ve Golf Management Experience for Public Entities ............................................. s VI. Project Understanding and Approach...............................................................8 VII. Scope of Services Provided by Troon Golf. ........................................................ 9 VIII. Conclusion.........................:...................................................................................18 sw 9 Exhibit A: Troon Golf References 9 I. Troon Golf Corporate Qualifications and Experience A. Company Overview Troon Golf was founded in 1990. Dana Garmany, Troon Golf s Founder, Chairman and CEO, envisioned the concept of serving the public golfer as a "member for a day", believing that public and resort golfers were looking for a higher quality public golf experience. This concept was initiated at Troon North Golf Club in Scottsdale, Arizona. The overwhelming success of Troon North Golf Club led to more golf course owners and developers desiring to emulate the "Troon Golf Experience." As a result, many turned to Troon Golf, the recognized innovator of this concept in the industry. Troon Golf now offers comprehensive services in the areas of golf course management, development consulting, and marketing. Troon Golf has become the world leader in upscale golf course development and third party management and currently operates some of the world's finest golf facilities including Troon North Golf Club in Scottsdale, Arizona, The Westin Turnberry Resort in Ayrshire, Scotland, The Ocean Club in the Bahamas and Brookwater Golf Club in Brisbane, Australia. Troon Golf is the only third party golf development and management firm that limits the facilities that it operates pursuant to a definite and stringent set of criteria, thereby allowing Troon Golf to create a recognizable brand within the golf industry based on agronomy and service standards. In total, our team is responsible for the development and operation of more than 130 high -end daily fee, resort and private golf clubs throughout the United States, Puerto Rico, Mexico, Bahamas, Dominican Republic, England, Scotland, Italy, United Arab Emirates, Australia, Fiji and Japan. Troon Golf s overall corporate structure is unrivaled by any third party golf development and management firm in the golf industry. Troon Golf oversees more than 7,000 employees, including more than 90 associates at the corporate headquarters located in Scottsdale, Arizona, with additional staff in global regional offices in Tokyo, Japan, Brisbane, Australia and Milan, Italy. Troon Golf offers more corporate support, experience and expertise than any other third party operator. Since Troon Golf has very few owned assets, the corporate employees' sole responsibilities are to serve our clients and their respective interests. Below is a summary of Troon Golfs key executive employees. B. Corporate Executives and Key Departments Troon Golf s key senior executives and key employees include the following individuals listed below. Dana R. Garmany Chairman and Chief Executive Officer Dana Garmany has over 20 years' industry experience developing and operating golf facilities worldwide, as well as involvement in more than 40 construction projects. Garmany was also named by Golf Inc. Magazine as one of "Golf s 25 Most Powerful People", one of the "25 Most Influential People in Golf', and one of the "21 Most Innovative People in Golf'. A member of the Professional Golfers Association of America since 1983, Garmany founded Troon Golf in 1990 with his first property, the renowned Troon North Golf Club in Scottsdale, Arizona. Garmany continues to lead and set standards for domestic and international high -end daily fee, resort, and private golf courses. Hud Hinton President and Chief Operating Officer Hud Hinton is widely recognized as one of the hospitality industry's most experienced brand, franchise and third - party management experts. Prior to joining Troon Golf in 1999, Hinton was Executive Vice President -Hotel Operations, North America, for Starwood Hotels and Resorts Worldwide. Previously, Hinton served more than seven years as Senior Vice President -Operations for Westin Hotels and Resorts. Hinton also has been General Manager of the world-renowned Plaza Hotel in New York City and the Arizona Biltmore in Phoenix, Arizona. 10 Dick Trueblood Executive Vice President Chief Financial Officer Richard Trueblood joined Troon Golf in 2001 and is an experienced executive with 30 years of experience in the financial field. He moved to Troon Golf from Heritage Property Investment Trust, where he served as Chief Financial Officer for the $2 billion real estate investment trust. Prior to that he held the position of Senior Vice President - Finance with Promus Hotel Corporation following a 23-year tenure as a Partner with KPMG Peat Marwick LLP. John W. Easterbrook, Jr. Executive Vice President, Operations John Easterbrook, Jr. has more than 20 years experience in the golf industry. Prior to joining the Company in k sent five ears' as head of Golf Operations for all Hyatt Hotels' golf properties, as well as 1997, Easterbrook p y OP Y nine years with Marriott Golf in various capacities, including Regional Director of Golf Operations. Easterbrook was appointed to his current position in 1998, and is responsible for oversight of operations at all Troon Golf facilities. Timothy J. Greenwell Senior Dice President, Sales & Marketing Tim Greenwell has over 17 years marketing experience in the golf industry including positions with the Arizona Golf Association, the USGA, and the PGA of America. Greenwell was hired by the Company in 1997 and is responsible for the development of all advertising, sales, marketing, and public relations strategies for Troon Golf and each of its facilities. Jeffery S. Spangler Senior Vice President, Science and Agronomy Jeff Spangler received his agronomy degree from the Ohio State University. He served tenures at Scioto Country Club and Muirfield Village Golf Club before being hired by The Pebble Beach Company in 1987. Spangler € served in Superintendent positions at Troon Golf and Country Club and Troon North Golf Club before being promoted to Troon Golfs Director of Agronomy in 1993. Spangler was appointed to his current position in 1998, and is responsible for the oversight of all agronomic programs for Troon Golf facilities. Jim Bellington Senior Vice President, Development Services Jim Bellington with over 25 years' experience in the golf industry, leads Development Services for the Company. In his current position Bellington provides oversight of all phases of course and clubhouse design, development. and construction services. Prior to joining Troon Golf in 2001, Bellington spent 14 years with Four Seasons Hotels and Resorts where he served as Director of Golf. During his tenure he provided oversight of golf operations at Aviara Golf Club and the Las Colinas Sports Club. Bellington's role with Four Seasons also involved the development of golf facilities both domestically and internationally. A graduate of the University of Arizona, Bellington has been a member of the Professional Golfers Association of America since 1981. Ronald A. Despain Vice President, Golf Course Design and Development Ron Despain has over 20 years' of experience in residential and golf course development, including overseeing development of the Troon Village and Troon North Golf Club master planned golf communities. Despain is a Registered Land Surveyor and Professional Engineer in the state of Arizona. Despain joined the Company in 1991 as Director of Engineering, and was promoted to his current position in 1996. Despain is responsible for the oversight of golf course, clubhouse and associated residential development for Troon Golf facilities. 2 11. Cynthia C. Anderson Vice President, Retail and Clubhouse Development Cindy Anderson has over 17 years' of management experience in the golf and hotel industry. Her career in the hotel business launched shortly after college holding such prestigious positions as Regional Director of Sales and General Manager. She became the youngest female to hold the position of General Manager in the state of Arizona at age 26. Anderson began her career with Troon Golf in 1994 as VP, Clubhouse Development. She was appointed to her current position in 1997, and is responsible for oversight of clubhouse design and construction for all Troon Golf Facilities. Cary T. Westmark Vice Presiden4 Information Technology Cary Westmark received his undergraduate degree from Western International University and a degree in Applied Science of Electronics from DeVry Institute of Technology. Prior to joining Troon Golf in 2000, { Westmark served in the technology industry for 13 years, including positions with Tosco Marketing Company i and McDonnell Douglas Helicopter Company as Technology Manager.. Westmark is responsible for development of technological strategies and implementation for all Troon Golf facilities. Gloria McKee Vice President, Human Resources r Gloria McKee has twenty years of experience in human resources with companies such as Joske's, Ritz Carlton, and Robinson May. McKee joined Troon Golf in 1996 and is responsible for benefit administration, human resources, and management training for over 7,000 employees. Charlene Lowry Vice Presiden4 Procurement Charlene Lowry has over 17 years experience in the hospitality purchasing industry. She served seven years in various purchasing capacities with the Phoenix -based Doubletree Hotels Corporation, most recently as Director of Purchasing. Immediately prior to joining Troon Golf in 1999, Lowry served as Director of Purchasing for the Gettys Group, a Chicago -based interior design and architecture firm serving the hospitality industry. Lyn Bickle Vice President., Corporate Controller Lyn Bickle has over 14 years experience in accounting, including SEC filings, debt offerings, securitizations, derivatives, internal control assessment, banking, real estate, transactions, forecasting and budgeting. She joined Troon Golf in 1998 and is responsible for corporate oversight of Troon Golf s Finance Division for both U.S. and International operations. Sickle received her degree in accounting from the University of Georgia, and is a Certified Public Accountant in the state of Arizona, Michigan, and Georgia. Paul M. Hadreas Director, Corporate Food A Beverage Paul Hadreas joined Troon Golf in 2000 and is responsible for Troon Golf s corporate oversight of food and beverage operations. Prior to joining Troon Golf, Hadreas managed the food and beverage operations at such renowned facilities as Congressional Country Club in Bethesda, Maryland, The TPC of Avenel in Potomac, Maryland and the Inn at Spanish Bay in Pebble Beach, California. In addition, he has managed food and beverage operations for several PGA Tour tournaments as well as supervising and managing formal dinners for the Chaine de Rotisserie and the Rolls Royce and Mercedes Benz motor companies. 3 12 II. New Troon Golf Management Contracts Within Last Five Years Pursuant to the La Quinta Redevelopment Agency's request, below is a list of new contracts for similar services that Troon Golf has entered into with its clients within the last five (5) years. 1998 Westin LaCantera Resort San Antonio, TX 36 Operating Westin Turnberry Resort Ayrshire, Scotland 54 Operating Westin Mission Hills Rancho Mirage, CA 36 Operating Eagle Glen Golf Club Corona, CA 18 Development Legacy Golf Club Bradenton, FL 18 Operating Eagle Ridge Inn and Golf Resort Galena, IL 63 Operating Westin Savannah Harbor Savannah, GA 18 Development 1999 The Crosby Club Rancho Santa Fe, CA 18 Development Fox Acres Country Club Red Feather Lakes, CO 18 Operating Quintero Golf and Country Club Peoria, AZ 18 Development Maderas Golf Club Poway, CA 18 Development Woodyard Savannah Quarters Savannah, GA 18 Development Westin Kierland Resort and Spa Scottsdale, AZ 27 Operating Shadow Lakes Golf Club Brentwood, CA 18 Development Branson Creek Golf Club Branson, MO 18 Development Turner Hill Golf Club Ipswich, MA 18 Development 2000 Ocean Club Paradise Island, Bahamas 18 Development Golf Club at Boulder Ridge San Jose, CA 18 Development Whirlwind Golf Club Chandler, AZ 36 Development Old Works Anaconda, MT 18 Operating Carmel Valley Ranch Carmel, CA 18 Operating Wyndham El Conquistador G & C.C. Fajardo, Puerto Rico 18 Development Lodge at Ventana Canyon Tucson, AZ 36 Operating Monarch Beach Golf Links Dana Point, CA 18 Operating Talking Stick Golf Club Scottsdale, AZ 36 Development Whitney Oaks Golf Club Rocklin, CA 18 Operating CapCana Punta Cana, D.R. 54 Development 2001 The Sagamore Club Indianapolis, IN 18 Development Brookwater Queensland, Australia 18 Operating Palmer Course at LaCantera San Antonio, TX 18 Development Vita Ridge Erie, CO 18 Development Black Creek Club Chattanooga, TN 18 Operating Teravista Round Rock, TX 18 Development Huntingdale Golf Club Victoria, Australia 18 Operating Robinson Ranch Santa Clarita, CA 36 Operating Prescott Lakes Golf Club Prescott, AZ 18 Operating Rose Creek Edmund, OK 18 Development The Rocks Private Residence Club Scottsdale, AZ Operating Montgomerie Dubai Dubai, U.A.E. 36 Operating Paradise Village Golf and C.C. Nuevo Vallarta, Mexico 18 Development Kitago Golf Club Miyazaki Pref., Japan 54 Operating Tom Watson Golf Course Miyazaki Pref., Japan 36 Operating Giants Ridge Golf and Ski Resort Biwabik, MN 36 Operating Phoenix Country Club Miyazaki Pref., Japan 27 Operating Kogen Country Club Miyazaki Pref., Japan 36 Operating Oblong Valley Golf Club Amenia, NY 18 Development Ambush Golf and Country Club Santaquin, UT 18 Development 4 13 f - 2002 Anthem Golf and Country Club Anthem, AZ 36 Operating Anthem Country Club Henderson, NV 18 Operating Horseshoe Bay Golf Club Egg Harbor, WI 18 Operating Estrella Mountain Ranch Golf Club Goodyear, AZ 18 Operating Tres Vidas Acapulco, Mexico 18 Operating Whitetail Club McCall, ID 18 Operating Glacier Club Durango, CO 18 Operating D'Andrea Golf Club Sparks, NV 18 Operating The Phoenician Scottsdale, AZ 18 Operating Denerau Golf and Racket Club Nadi, Fiji 18 Operating t Sheraton Steamboat Springs Steamboat Springs, CO 27 Operating Haig Point Daufuskie Island, SC 36 Operating The Revere Golf Club Henderson, NV 18 Operating Hillcrest Golf Crest Hollywood, FL 18 Operating Colonial (Sheraton) Wakefield, MA 18 Operating Colonial Country Club Ft. Myers, FL 18 Development The Georgia Tech Club Alpharetta, GA 18 Development Flying Horse Ranch Golf Club Colorado Springs, CO 18 Development Palmilla Resort & Golf Club San Jose Del Cabo, Mex. 27 Operating r Gaillardia Golf &C.C. Oklahoma City, OK 18 Operating Arabian Ranches Dubai, U.A.E 18 Operating Canyon RidgeGolf Club Rising, Fawn, GA 18 Development Wildflower Resort Grand Prairie, TX 36 Development r Popular Hill Golf Club Y Farmville, VA 18 Development 2003 The Grove Chandlers Cross, England 18 Development Sierra Nevada Golf Ranch Genoa, NV 18 Operating The Vintage Golf Club Sydney, Australia 18 Operating _ TPC Snoqualmie Ridge Snoqualmie, WA 18 Operating Green Academy Country Club Fukushima, Japan 18 Operating Corte Bella Golf Club Phoenix, AZ 18 Development Traditions Club at Texas A&M Bryan, TX 18 Development Lake Of The Isles Golf Club Mashantucket, CT 36 Development Elkhorn Golf Club Sun Valley, ID 18 Operating Peninsula Golf Club Sussex County, DE 18 'Development ` Wentworth Estates Naples, FL 18 Development Ocotillo Golf Resort Chandler, AZ 27 Operating Costa Palma Mazatlan, Mexico 18 Development Diplomat Country Club & Spa Hollywood, FL 18 Operating The Retreat Corona, CA 18 Development Moon Valley Country Club Phoenix, AZ 18 Operating Entrada at Snow Canyon St. George, UT 18 Operating Stone Quarry Golf Club New South Wales, Aus. 18 Development Twin Creeks Golf Club New South Wales, Aus. 18 Operating Kooinda New South Wales, Aus. 18 Development The Palm Dubai, U.A.E. 36 Development Dubai Sports City Dubai, U.A.E 18 Development Bearwood Lakes Golf Club London, England 18 Operating Castiglion Del Bosco Tuscany, Italy 27 Development III. Current Troon Golf Management Contracts Pursuant to the request of the La Quinta Redevelopment Agency's request, below is a list of Troon Golf s current contracts. Unfortunately, Troon Golf is unable to identify its contracts that are renewing within the next five years, as requested. This information is proprietary to Troon Golf. Providing information of this nature to The La Quinta Redevelopment Agency would put the information into the public stream and could compromise Troon Golf s relationships with our clients and our retention efforts. Attached on Exhibit "A" are the names and contact information for Troon Golf s clients who serve as references for Troon Golf. Since Troon Golf is actively engaged in business development, our clients frequently receive reference calls. As a result, we utilize a revolving list. The attached list represents Troon Golf s clients who are currently in the reference rotation at this time. Please note that references for two facilities that we manage for public agencies are included in the list. Please feel free to contact the references at your convenience. Year Facility Location Holes Stage Retained 1990 Troon North Golf Club Scottsdale, AZ 36 Development 1996 The Ridge at Castle Pines North Castle Rock, CO 18 Development 1997 Legend Trail Golf Club Scottsdale, AZ 18 Development Westin La Paloma Resort and Spa Tucson, AZ 27 Operating Westin Innisbrook Golf Resort Palm Harbor, FL 72 Operating 1998 Westin LaCantera Resort San Antonio, TX 36 Operating Westin Turnberry Resort Aiyshire, SL 54 Operating Westin Mission Hills Rancho Mirage, CA 36 Operating Eagle Glen Golf Club Corona, CA 18 Development Legacy Golf Club Bradenton, FL 18 Operating Eagle Ridge Inn and Golf Resort Galena, IL 63 Operating Westin Savannah Harbor Savannah, GA 18 Development 1999 The Crosby Club Rancho Santa Fe, CA 18 Development Fox Acres Country Club Red Feather Lakes, CO 18 Operating Quintero Golf and Country Club Peoria, AZ 18 Development Maderas Golf Club Poway, CA 18 Development Woodyard Savannah Quarters Savannah, GA 18 Development Westin Kierland Resort and Spa Scottsdale, AZ 27 Operating Shadow Lakes Golf Club Brentwood, CA 18 Development Branson Creek Golf Club Branson, MO 18 Development Turner Hill Golf Club Ipswich, MA 18 Development 2000 Ocean Club Paradise Island, Bahamas 18 Development Golf Club at Boulder Ridge San Jose, CA 18 Development Whirlwind Golf Club Chandler, AZ 36 Development Old Works Anaconda, MT 18 Operating Carmel Valley Ranch Carmel, CA 18 Operating Wyndham El Conquistador G & C.C. Fajardo, Puerto Rico 18 Development Lodge at Ventana Canyon Tucson, AZ 36 Operating Monarch Beach Golf Links Dana Point, CA 18 Operating Talking Stick Golf Club Scottsdale, AZ 36 Development Whitney Oaks Golf Club Rocklin, CA 18 Operating CapCana Punta Cana, D.R. 54 Development 6 2001 The Sagamore Club Indianapolis, IN 18 Development Brookwater Queensland, Australia 18 Operating Palmer Course at LaCantera San Antonio, TX 18 Development Vita Ridge Erie, CO 18 Development Black Creek Club Chattanooga, TN 18 Operating Teravista Round Rock, TX 18 Development Huntingdale Golf Club Victoria, Australia 18 Operating Robinson Ranch Santa Clarita, CA 36 Operating Prescott Lakes Golf Club Prescott, AZ 18 Operating Rose Creek Edmund, OK 18 Development The Rocks Private Residence Club Scottsdale, AZ Operating Montgomerie Dubai Dubai, U.A.E. 36 Operating Paradise Village Golf and C.C. Nuevo Vallarta, Mexico 18 Development Kitago Golf Club Miyazaki Pref., Japan 54 Operating Tom Watson Golf Course Miyazaki Pref., Japan 36 Operating Giants Ridge Golf and Ski Resort Biwabik, MN 36 Operating Phoenix Country Club Miyazaki Pref., Japan 27 Operating Kogen Country Club Miyazaki Pref., Japan 36 Operating Oblong Valley Golf Club Amenia, NY 18 Development Ambush Golf and Country Club Santaquin, UT 18 Development 2002 Anthem Golf and Country Club Anthem, AZ 36 Operating Anthem Country Club Henderson, NV 18 Operating Horseshoe Bay Golf Club Egg Harbor, WI 18 Operating Estrella Mountain Ranch Golf Club Goodyear, AZ 18 Operating Tres Vidas Acapulco, Mexico 18 Operating Whitetail Club McCall, ID 18 Operating Glacier Club Durango, CO 18 Operating D'Andrea Golf Club Sparks, NV 18 Operating The Phoenician Scottsdale, AZ 18 Operating Denerau Golf and Racket Club Nadi, Fiji 18 Operating Sheraton Steamboat Springs Steamboat Springs, CO 27 Operating Haig Point Daufuskie Island, SC 36 Operating The Revere Golf Club Henderson, NV 18 Operating Hillcrest Golf Crest Hollywood, FL 18 Operating Colonial (Sheraton) Wakefield, MA 18 Operating Colonial Country Club Ft. Myers, FL 18 Development The Georgia Tech Club Alpharetta, GA 18 Development Flying Horse Ranch Golf Club Colorado Springs, CO 18 Development Palmilla Resort & Golf Club San Jose Del Cabo, Mex. 27 Operating Gaillardia Golf &C.C. Oklahoma City, OK 18 Operating Arabian Ranches Dubai, U.A.E 18 Operating Canyon RidgeGolf Club Rising, Fawn, GA 18 Development Wildflower Resort Grand Prairie, TX 36 Development Popular Hill Golf Club Farmville, VA 18 Development 2003 The Grove Sierra Nevada Golf Ranch The Vintage Golf Club TPC Snoqualmie Ridge Green Academy Country Club Corte Bella Golf Club Traditions Club at Texas A&M Lake Of The Isles Golf Club Elkhorn Golf Club Peninsula Golf Club Chandlers Cross, England 18 Development Genoa, NV 18 Operating Sydney, Australia 18 Operating Snoqualmie, WA 18 Operating Fukushima, Japan 18 Operating Phoenix, AZ 18 Development Bryan, TX 18 Development Mashantucket, CT 36 Development Sun Valley, ID 18 Operating Sussex County, DE 18 Development 7 16 Wentworth Estates Naples, FL 18 Development Ocotillo Golf Resort Chandler, AZ 27 Operating Costa Palma - Mazatlan, Mexico 18 Development Diplomat Country Club & Spa Hollywood, FL 18 Operating The Retreat Corona CA 18 Development Moon Valley Country Club Phoenix, AZ 18 Operating ' Entrada at Snow Canyon St. George, UT 18 Operating Stone Quarry Golf Club New South Wales, Aus. 18 Development Twin Creeks Golf Club New South Wales, Aus. 18 Operating A Kooinda New South Wales, Aus. 18 Development The Palm Dubai, U.A.E. 36 Development Dubai Sports City Dubai, U.A.E 18 Development Bearwood Lakes Golf Club London, England 18 Operating r ' Castiglion Del Bosco Tuscany, Italy 27 Development IV. Financial Stability Statement Troon Golf is one of the most financially stable companies in the golf industry. Troon Golf, by business plan, is a third party manager, which shields Troon Golf from market fluctuations experienced by owner/operators, who have a substantial investment in their managed properties. Troon Golf s income is generated from management fees. Since Troon Golf has ownership interests in less than 10% of all of the courses that it manages, its balance sheet is virtually free from financial leverage. Troon Golf's ownership structure also provides solid financial backing, since it is owned by entities related to Goldman Sachs and Starwood Capital, with the remainder owned by individual shareholders. Troon Golf s profitability is based on economies of scale generated from its position as the largest third party manager in the industry. In addition, Troon Golf's growth has been reasonable, with a balance of delivering the corporate support our clients expect while reserving financial resources for challenging times. V. Golf Management Experience With Public Entities Troon Golf currently manages two golf facilities for two different public agencies. Since 2000, Troon Golf has operated The Old Works Golf Course in Anaconda, Montana for the City of Anaconda, Deer -Lodge County, the owners of the golf course. The Old Works Golf Course is an 18-hole facility designed by Jack Nicklaus. It is currently the number one daily fee golf facility in the State of Montana and has been recognized in that regard since its opening. Old Works is a tremendous source of pride for the City of Anaconda and Deer -Lodge County. Troon Golf has managed the golf operations at Giants Ridge Golf and Ski Resort in Biwabik, Minnesota since 2001 for the Iron Range Resources and Rehabilitation Agency, a division of the State of Minnesota. Giants Ridge is comprised of two 18-hole golf courses designed by Jeffrey Brauer, two practice facilities, and two clubhouses (one is currently in the planning stages). The Legend, the first course at Giants Ridge, has been recognized as the number one daily fee facility in the state of Minnesota by several publications since it's opening. Over the last eighteen months, Troon Golf has overseen the construction of the second golf course, The Quarry. The Quarry opened last July with extremely positive reviews. In both cases, Troon Golf has been a good partner with these respective public agencies and enjoys excellent working relationships with them. VI. Project Understanding and Approach The City of La Quinta's vision for SilverRock Ranch as a premiere hospitality and golf destination is consistent with the operating philosophy that has been the foundation for Troon Golf; to build the only true luxury brand development and management company in the golf industry. We hope that as you review our qualifications and collateral materials, you will notice a distinct difference between our firm and others. The type of golf courses operated by Troon Golf is restricted by stringent and definite standards. As a result, we are able to market an identifiable brand within the golf industry that is recognized by the quality of facilities, the superior agronomic 8 17 conditions, and the extraordinary service provided at those facilities. We are confident that Troon Golf would be the best selection as the manager of golf operations and maintenance at SilverRock Ranch based on our understanding of the La Quinta Redevelopment Agency's project objectives and commitment to delivering a quality product to its guests. If selected as the manager for SilverRock Ranch, we would immediately schedule an internal transition meeting to engage the various departments within Troon Golf to brief them on the project. At that time, specific individuals would be assigned to the project team, including development, marketing, operations, human resources, accounting and technology. The depth of the. Troon Golf management team will allow for immediate engagement by all areas and a seamless transition through all phases of the construction, grow -in, and pre - opening of the facility. A Regional Vice President of Operations would be assigned as the team leader and contact person for the City. r ° The Regional Vice President would begin to prepare a business plan to present to the City, taking into ti consideration the City's vision for La Quinta city residents, outside play, and the desire to attract a PGA tour event. The business plan would include a market analysis, operations and maintenance programs, detailed marketing plan, and operating and capital budgets. The team would also begin working closely with other contractors on the project to ensure that the master plan theme and history of the area is incorporated into the i operations of the golf course. VII. Scope of Services Provided By Troon Golf A. Development and Construction Oversight Troon Golf has been involved in the development of more than 40 upscale daily fee, resort and private golf facilities from the planning stages through the opening of those facilities. As a result, our in-house development team of land planners, architects, engineers, interior designers and project managers have a wealth of experience in the development, design and construction oversight of golf courses, golf course facilities and clubhouses. The goal of the development team is to utilize their expertise and Troon Golf s ability to deliver cost savings to build the highest -quality golf course, clubhouse and facilities within the owner's budgetary parameters, at the same time maintaining functionality and efficiency of design. Troon Golf s experience helps to prevent costly and unnecessary mistakes. We also understand the objectives of cost control and value engineering and can deliver a significant amount of our experience to ensure that these objectives are achieved. If retained for the project, Troon Golf would immediately become engaged in the development process by offering the all of the services requested by the La Quinta Redevelopment Agency's Request for Proposal and the following services. 1. Development • Visit project site and review project master plans, and provide Client with an evaluation of each. • Work with golf course architect to evaluate golf course design with respect to playability, safety, construction costs, schedule, grass variety selections, and relationship to clubhouse, maintenance building, and other portions of the development. Assist the golf course architect and Client in determining the program and location of practice facilities. • Assist in the coordination and review of the activities of the various design professionals through the plan review process and assist the Client in its efforts in obtaining the required approvals and permits. Coordinate design professionals activities with the Client's overall project construction manager. • Work with the irrigation designer to develop a design that maximizes irrigation efficiency within the irrigation budget. 9 18 -a • Assist landscape architect and golf course architect in the development of landscape plans for the golf course. Review plant selections and locations to ensure compatibility with the golf course turfed areas. • Provide input to Client on permitting requirements and/or studies necessary to obtain golf course water allocations. Work with Client's consultants to complete a study of available water a versus projected golf course water usage to help determine if additional water sources will be needed. • Review water quality testing reports and assist Client's consultants in determining if water treatment is needed. Make recommendations on type of treatment required to ensure that water quality is compatible with the requirements for quality turf growth. • In conjunction with the Client's overall construction manager, prepare construction and operating budget estimates for all aspects of golf course development including golf course grow -in and recommended maintenance equipment purchase. Show financial implications of purchase versus lease options on golf course maintenance equipment. • Work with building architects and design professionals to determine facility programming that ensures maximum flexibility and efficiency in building design. Coordinate reviews of site and landscaping plans to ensure compatibility with golf course operations. • Coordinate kitchen design with clubhouse architect and kitchen consultants to ensure that kitchen is sized and laid out appropriately. • Review engineering and architectural design plans through the design development phase to ensure conformance to Client's design intent. • Assist Client in obtaining and evaluating construction estimates and schedules for all structures including site work, landscaping and FF&E. • Provide input to the various design professionals during the development of their detailed design plans and specifications for bidding. Review all plans and supply Client with value s engineering ideas for all aspects of the project. Review golf course and clubhouse architect's specifications and make recommendations for modifications as needed. • Assist the Client with the preparation of bid documents and contracts. If the Client chooses to negotiate contracts, assist Client in the contract negotiations and provide an analysis of the contractor's proposals. • Attend pre -bid conferences. Answer questions and provide clarifications on items raised throughout the bidding process. • Analyze all bids, review for consistency and accuracy, and prepare a bid analysis for the Client. Make recommendations to the Client on which contractor's bid should be accepted. 2. Construction • In conjunction with the overall project construction manager, the golf course architect, the clubhouse architect, and the various golf course and clubhouse contractors, assist in the preparation of detailed construction schedules on all project elements. Coordinate golf course schedules with overall development schedules to resolve conflicts in scheduling. 10 19 • Coordinate with the project construction manager on the installation of roadway infrastructure and utilities to service the golf course. • Attend field walks with golf course architect to determine limits of clearing, adjustments to routing, and review of on -going construction. Assist golf course architect in creating a golf course that matches the Client's needs and one that can be maintained within the operating budget parameters. • Provide periodic site visits, attendance at construction meetings, and inspection of contractors' work to ensure compliance with plans and specifications. Review construction methods and procedures to ensure quality control during all aspects of golf course construction. is • Review and assist in field layouts of irrigation systems. Review hole -by -hole irrigation head counts to keep costs in line with budgets. Work with golf course architect to adjust grass lines to maximize irrigation efficiency. • Establish grassing and grow -in schedules for the golf course. Assist in coordinating the placement of the golf course superintendent and integrating them into the construction process. i (Typically the golf course superintendent is in place no later than the start of the irrigation installation). s• Review all materials tests provided by the contractors for proposed greensmix, bunker sand, gravel, and other materials, and provide recommendations on whether the proposed material is r suitable for use on the project. ' • Assist golf course superintendent and golf course architect in establishment of a contractor's punch list prior to final payment to contractor. Coordinate with contractor and superintendent on establishment of a schedule to complete punch list items. • Assist in final acceptance of all golf holes and in the turn over of the golf holes from the contractor to the Client for grow -in and maintenance. • Assist project construction manager and clubhouse architect in reviewing the progress of all building construction, construction invoices, change orders and RFI's to ensure adherence to construction schedules and budgets. Provide value -engineering recommendations during construction to maintain project within approved budget. • Attend construction meetings as requested by the Client to evaluate construction progress, adherence by the contractor to approved plans and specifications; and quality of construction. • Assist in the acquisition of all golf course purchases and recommend the timing of said purchases. Utilize Troon's national account status to negotiate lower prices on golf course irrigation equipment, pump stations, and other construction items as applicable. 3. Pre -Opening • Utilize Troon's national account status to negotiate lower prices for golf course maintenance equipment, golf carts, operating systems equipment and software, and other equipment and supplies as applicable. • Work with the interior design team retained by Client to review, evaluate, and make recommendations regarding the selection of FF&E and assist with installation. 11 20 • Provide Client with options on operating systems and integrate operating systems with systems from other portions of the development. Work with the appropriate design professionals on the system designs and assist with the installation of the systems. • Provide marketing assistance, including assisting Client in selecting a firm for logo development and advising such firm, aiding in the creation of public announcements and' directing pre -opening marketing activities, including incorporation into Troon's national advertising efforts. • Coordinate and assist with grand opening events and promotion. • Coordinate the clubhouse retail operation including set-up of golf shop and ordering of golf shop inventory. • Establish detailed maintenance and clubhouse operating budgets, operational schedules and safety programs. Assemble and coordinate clubhouse and maintenance staffs. B. Professional Management In All Phases of Operation By Industry Leading Experts 1. Golf Operations In order to create the most value for the owners of Troon Golf operated facilities, Troon Golf s goal is to deliver unparalleled levels of customer service and superior golf course conditioning. Troon Golf s management philosophy is to deliver guests to the facility and provide them with a world -class golf experience. In doing so, Troon Golf operates the facility efficiently and in a manner that generates maximum profitability for the facility's owner. The success of each facility's golf operations is dependent upon the hiring and training of quality employees, the implementation of Troon Golf s proprietary Operating Standards, and the depth of the corporate organization that support our employees at each facility. A key factor in the success of Troon Golf and the facilities it operates is the quality of its associates at the facility level. Troon Golf has been able to attract the best career golf employees. In an industry notorious for high 4 > employee turnover rates, Troon Golf has retained its employees because of the quality of the facilities in the Troon Golf portfolio and the possibility for advancement as Troon Golf grows. Our extensive benefit programs, g regular training seminars, and Troon Golf s industry leading operating standards have also contributed to an extremely low employee attrition rate. The stability of our personnel has made it possible to deliver consistent ' guest service without interruption. Troon Golf's General Managers, Food and Beverage Managers, and Golf Professionals are the most sought after . facility operators in the golf industry based on their experience of operating under Troon Golfs proprietary operational standards at some of the world's most renown golf facilities. Troon Golf would recommend candidates for these positions to the La Quinta Redevelopment Agency for consideration. Troon Golf s Operating Standards were assembled and implemented early in the firm's history, after a comprehensive facility level analysis of the criteria for superlative guest service, outstanding food and beverage preparation and presentation, and world class agronomy from our own facilities and other industry leading firms in the hospitality and service industry, including Four Seasons, Nieman Marcus and Nordstrom's. This well - integrated proprietary approach to golf facility management in the areas of golf operations, agronomy, and food and beverage provide the foundation for extraordinary facility management, efficiency and financial results. The implementation of our Operating Standards ensures consistency of the service levels, food quality, and agronomic conditioning at the each Troon Golf managed facility. These operating standards would be implemented at the SilverRock Ranch. Troon Golf s employee training program is one of the most sophisticated in the golf industry. Facility Managers that are selected from outside the Troon Golf system are trained in Troon Golf s corporate office in the "management -training incubator." If the Facility Managers have been promoted or have been transferred from a 12 21 Troon Golf property, training is generally not required since the candidate is familiar with the Troon Golf Operating Standards and understands what is expected of them. Golf Professionals and Food and Beverage Managers customarily are also promoted from within the Troon Golf s system. However, if a candidate from outside the Troon Golf system is selected, they are sent either to Troon Golf s corporate office or an existing Troon Golf facility for training. Prior to the opening of the SilverRock Ranch, Troon Golf s Employee Training Team will train all of the facility's employees. Troon Golf s Employee Training Team includes representatives from the Human Resources, Operations, and Accounting Departments. This training focuses on Troon Golfs guest service requirements, employee empowerment, and other employee training. Additional proprietary information A regarding Troon Golf s employee training practices can be provided at a presentation before the representatives i - of the La Quinta Redevelopment Agency. If retained, Troon Golf would perform the following operational and management tasks at the SilverRock Ranch: • Hire, train and supervise daily operations including facility staffing, operation and promotion of golf course and golf shop, facility food & beverage including, if applicable, banquet operations, course maintenance, and periodic activities such as tournament or other event coordination; • Develop and coordinate a business plan for each calendar year meeting the agreed upon objectives of the Client; • Provide Centralized Services including Facility accounting and payroll, financial reporting, and human resources administration; • Provide detailed monthly operating budgets to Client for all aspects of Facility operation • Utilize its national account status to obtain favorable pricing on golf shop merchandise, apparel, operating equipment and supplies and food and beverage supplies; • Coordinate with Client concerning ongoing capital expenditures, including the replacement of equipment and the expenditures of the Capital Reserve; • Prepare monthly operating reports comparing actual results to budget and analyzing financial performance monthly and year-to-date for each period; • If applicable, assist in the coordination of a membership plan at the facility. Services would include sale of memberships, as well as ongoing operation of membership programs; • Assist in the establishment of a golf school at the facility, if possible, with a nationally recognized golf school; • If applicable, assist with the operation of additional recreational amenities at the Facility. We understand that one of the goals of this project is to have SilverRock Ranch host the Bob Hope Chrysler Classic and possibly, a second significant tour event. Troon Golf has unparalleled experience both at the corporate and field levels to support this endeavor and ensure that any event held at SilverRock Ranch will be well received by the players and fans. Troon Golf has held and managed events on every American tour and several other major tours at courses under its management. Our General Managers, Superintendents and their golf operations staff understand what the American professional golf tours demand in golf course agronomic conditions, tournament operations, event coordination, and event marketing. Following is a list of the events that are hosted at our clients' courses under our management. In addition, scores of regional, state and local events are held at Troon Golf managed courses each year. 13 22 E= Gila River Classic Chrysler Championship Liberty Mutual Legends Of Golf Silver Dollar City Pro -Am Nationwide Tour Chattanooga Classic Valero Texas Open T_ C_ Loc- Nationwide Whirlwind Golf Club Chandler, AZ PGA The Westin Innisbrook Palm Harbor, FL Resort The Westin Savannah Legends Harbor Golf Resort & Spa Savannah, GA Nationwide Branson Creek Golf Club Branson, MO Nationwide Black Creek Golf Club Chattanooga, TN PGA The Westin La Canters San Antonio, TX Resort MasterCard Masters Australian European Dunlop Phoenix Tournament PGA European British Open (rotation) PGA European Senior British Open Senior European Weetabix Ladies British Open PGA European Michael Jordan Invitational Celebrity Huntingdale Golf Club Victoria, Australia Phoenix Country Club Miyazaki, Japan The Westin Turnberry Resort The Westin Turnberry Resort The Westin Turnberry Resort Ocean Club Ayrshire, Scotland Ayrshire, Scotland Ayrshire, Scotland Paradise Island, Bahamas These events have previously been held at Troon Golf managed go f facilities. Hyundai Team Matches PGA Monarch Beach Golf Links Dana Point, CA Chrysler Championship PGA The Westin Innisbrook Resort Palm Harbor, FL Office Depot Father Son Senior Ocean Club Paradise Island Bahamas 2. Agronomic Expertise Troon Golf s mission is to provide extraordinary guest service at golf facilities with superior playing surfaces. The backbone of Troon Golf s success is the superior agronomic condition of its facilities. This commitment to agronomic superiority is a focus of Troon Golf s proprietary Agronomy Standards. Our Agronomy Standards are the most exacting and detailed standards in the golf management industry. Golf course maintenance and agronomic programs tailored to the facility are developed and assembled prior to 14 41� T opening. Detailed schedules and programs for the golf course are established utilizing Troon Golf s proprietary agronomic programs. These programs are based on agronomic expertise involving complex scientific principles and a deep respect and understanding of the natural environment. The flow of information between the Troon Golf corporate office and the network of facility superintendents helps every facility maintain the best possible playing conditions. Jeff Spangler, Troon Golf s Senior Vice President of Science and Agronomy, is one of the most respected agronomists in the golf industry. Mr. Spangler's background includes an Advanced Agronomy degree from Ohio State University and more than 20 years of facility experience at some of the finest golf facilities in the country including, Pebble Beach and Muirfield Village. SilverRock Ranch will realize the benefits of Troon Golf's proprietary Agronomy Standards, the expertise and experience of Jeff Spangler, and a Troon Golf Regional Agronomist, along with a network of the industry's most respected team of Superintendents to ensure that the facility's agronomic conditions are optimized and the long-term health of the surfaces are closely monitored. Troon Golf s precise Agronomy Standards, world -class corporate agronomic oversight, and an information network of industry -leading Superintendents has proved to be a successful combination for Troon Golf s facilities, guests and clients. Recently, Troon North Golf Club's Pinnacle Course was named "The Best Conditioned Golf Course in America" by Golf Digest magazine. This coveted industry award is a confirmation of Troon Golf s philosophy regarding the priority of agronomic conditions at its facilities. Since our firm was built on our reputation for outstanding agronomic conditioning of our desert courses, SilverRock Ranch can be assured of receiving the same exacting attention to detail and focus that Troon Golf clients have come to expect. 3. Food and Beverage Expertise Troon Golf s philosophy on food and beverage and related service at its golf properties is that the food and d beverage and related service should be commensurate with the extraordinary golf experience at each facility. Troon Golf s proprietary Food and Beverage Standards are based on the food and beverage standards of the most f respected hote1jers in the world. These standards ensure that Troon Golf s high level of food and beverage quality remains constant at each facility over time and constant across Troon Golf s family of facilities. Paul Hadreas, Troon Golf s Food and Beverage Director, is responsible for the implementation and compliance of Troon Golf s proprietary Food and Beverage Standards at Troon Golf s facilities. Paul Hadreas has over 20 years of experience in the industry and was formerly the Food and Beverage Director at Congressional Country Club in Bethesda, Maryland and has managed the food and beverage operations at the Tournament Players Club at Avenal and the Inn at Spanish Bay. Troon Golf operates a wide variety of food and beverage operations at its various facilities. From the five-star dining experiences at Troon North Golf Club and The Club at Savannah Harbor to the casual atmosphere of the snack shop operations at Branson Creek Golf Club, Troon Golf s proprietary Food and Beverage Standards, management expertise, and well -trained associates ensure that each facility's guests enjoy their dining experience as much as their golf experience. 4. Marketing SilverRock Ranch Troon Golf markets the golf facilities that it manages on a national, regional and local basis. Marketing efforts are focused on building public awareness of not only each individual facility, but also the Troon Golf brand. Due to the number of Troon Golf facilities, maximum advertising exposure is realized for the most competitive rates in most markets. As a result of extensive marketing coverage, Troon Golf managed facilities are the most visible and recognized facilities. Troon Golf s facilities will have more than 340 million impressions by the end of this year. That amount of exposure will only benefit SilverRock Ranch as its notoriety quickly advances. In conjunction with the expertise and experience of McMurray, SilverRock Ranch will benefit from a powerful marketing team. By building brand awareness and consistently delivering positive experiences, Troon Golf assures its customers that they will "Experience Troon Golf' at any Troon Golf operated facility. Our strong relationships with upscale golfers, who have come to seek out the "Troon Golf Experience," drive more rounds at higher rates. In addition, 15 24 innovative products such as the Troon Two-Somd Card, Troon Rewards, and Club Troon have been developed to aid facilities to capture rounds that may otherwise have gone unused. SilverRock Ranch will have access to Troon Golfs frequent guest database of more than 2.5 million individual and more than 32,000 groups. If retained, Troon Golf will provide the following marketing support to the SilverRock Ranch: • Assist McMurray in the creation of local, regional and national marketing plan to facilitate maximized use at the Facility; • Coordinate Facility Public Relations efforts including event assistance and press release distribution; • Integrate marketing plan and Internet strategy; • Include Facility in national and regional promotions; • Assist in the development of products and yield -management tools such as custom golf packages and local -use card programs; • Provide database and direct mail opportunities including specific promotions and general Facility marketing; • Add Facility to 1.888.TROON U.S. router system to drive telephone reservations and traffic to the Facility; • Use best efforts to utilize its national account status to obtain favorable pricing on advertising opportunities; • Coordinate Facility photography; • Focus on relationships with travel providers to enhance Facility attractiveness to third -party golf travel vendors; and • Create a national group sales program utilizing growing Troon Golf database of mid -size to large groups. 5. Technology Services Provided To The SilverRock Ranch Troon Golf s Information Technology staff has been involved in the evaluation, design, and installation of complete information technology systems for more than 40 golf facilities. Troon Golf's Information Technology staff is available to evaluate your facility's technology needs pnd make recommendations for optimum system efficiency. The Information Technology staff is familiar with both Fore! Point of Sale and Peachtree accounting software. Troon Golf s national account purchasing arrangements with hardware and software suppliers enhances the benefit of operating these systems. If retained, Troon Golf s Information Technology staff will provide the following services: • Position the Facility on the cutting edge of modern technology in the golf industry by offering a fully - integrated reservations, property management, and point -of -sale solutions; • Administer the Facility's tee times electronically; • Facilitate inclusion in the Troon Golf web site (www.troongolf.com) and coordinate a Facility web strategy including the maintenance and/or establishment of the Facility's web page and Internet applications; and 16 25 Manage the Facility's supply chain and inventory with software applications or through the Internet. 6. Comprehensive Professional Human Resources Services ' Troon Golf provides comprehensive human resources services for all of its employees without the use of a third party consultant or employee leasing company that commonly add costs to the facility and ultimately, the owner. The employees at SilverRock Ranch would be employees of Troon Golf. Troon Golf employs more than 7,000 associates worldwide. Troon Golf s Human Resources department provides all of the services of a Fortune 500 company's human resources department. The department ensures that all employees are recruited, hired, trained, administered and in some unfortunate situations, terminated with most professional processes in the business, with a continuing focus on the importance of our people and their direct relationship to the success of each facility. All of the Troon Golf employees are trained on an annual basis in. such topics as Troon Golf service standards, first aid, CPR, sexual discrimination, and harassment. At SilverRock Ranch, our staff would train in English and Spanish, and our corporate staff has Spanish-speaking representatives as well. Our on-line Human Resources service allows employees to make benefit changes at their convenience. In addition, we have a 24- hour employee hotline, and our Human Resources department replies to all of their incoming calls within 24 hours. 7. Accounting Services Provided to SilverRock Ranch Troon Golf will provide comprehensive accounting oversight services from the corporate office without the use of third parties or consultants. Our Regional Controller system continues to be a highly successful and cost effective method to provide C.P.A. level oversight to each facility. Weekly, monthly, quarterly, and annual reports are provided to the owners to ensure that operational decisions are made on current information and controls reflect accurate data. Troon Golf s Accounting Operational procedures are modeled after that of most of the large hotel operators in the United States. The Accounting staff currently works with Peachtree accounting software at other Troon managed facilities. 8. Procurement and Risk Management for SilverRock Ranch Troon Golf will provide the purchasing power of more than 100 golf courses to SilverRock Ranch. Through Troon Golfs national purchasing agreements, Troon Golf will provide an unparalleled opportunity to leverage all of Troon Golf s purchasing relationships. Troon Golf s national purchasing agreements include multiple vendors for golf course maintenance equipment, golf carts, golf shop hard and soft goods, food and beverage supplies, and golf course maintenance supplies. Purchasing these items at lower cost and on superior terms will ultimately provide the best opportunity to reach its economic potential. SilverRock Ranch will receive the economic and service benefit of Troon Golf s in-house Insurance Risk Manager, who will ensure that all risk management policies are implemented at SilverRock Ranch in order to minimize exposure to the risks of operating a golf facility. The Risk Manager will also seek out the most appropriate and competitive insurance policies and coverages for SilverRock Ranch. This service can represent a significant savings to SilverRock Ranch without any additional cost to the facility or the City of La Quinta. 17 26 VIII. Conclusion Troon Golf clearly understands the La Quinta Redevelopment Agency's objectives and goals. If retained, we will undertake our role in this project with the significance and care that it demands and deserves. We are prepared and staffed to immediately deliver all of the services requested by the La Quinta Redevelopment Agency's Request for Proposal Scope of Services and provide additional services not included, but customarily provided, by Troon Golf to its clients. Our associates and our company have substantial experience in developing and operating golf courses for public agencies and operating some of the most respected resort golf facilities in the country. The depth of our corporate infrastructure to support our field level employees is unparalleled in expertise and experience. Troon Golf has significant experience in attracting and conducting high quality professional events to its owners' r - facilities. Troon Golf s marketing expertise and brand awareness will assist SilverRock Ranch in building a destination name and identity. Troon Golf would make SilverRock Ranch a golf destination that the citizens of La Quinta would be proud to have in their city. Troon Golf, L.L.C. 15044 N. Scottsdale Road Suite 300 Scottsdale, Arizona 85254 ^tl., Executed thisof Jioyftber, 2003 M1 ZA2 WFLlT + r 18 27 Ms. Linda Roketa General Manager Giants Ridge Resort P.O. Box 190 Biwabik, Minnesota 55708 Phone: 218-865-4143 I _ i TROON GOLF Exhibit "A" Troon Golf References Giants Ridge Golf and Ski Resort (Public Agency Reference) Mr. Rich Rivers Old Works Golf Club Rivers & Rivers (Public Agency Reference) Old Works Golf Course Auth. Bd. Member 110 West 3rd Street Anaconda, Montana (406) 463-3811 Mr. Mark Beaudoin Legend Trail Golf Club Ziff Brothers Investments Citicorp Center 153 East 53`d Street, 43`d Floor New York, New York 10022 Phone: 212-292-6511 Mr. Mick Inoue The Ridge at Castle Pines North Senior Vice President Suncrown Development 8777 E. Via De Ventura, Suite 250 Scottsdale, Arizona 85258 Phone: 480-607-3900 Mr. Steve Shalit Westin La Paloma Owner's Representative Westin La Paloma 3800 East Sunrise Drive Tucson, Arizona 85718-3302 Phone: 520-742-6000 Mr. Greg Mowatt Kierland Golf Club Senior Vice President, Chief Financial Officer Woodbine Development Corporation 1445 Ross Avenue, Suite 5000 Dallas, Texas 75202-2785 Phone: 214-855-6000 Mr. Sam Mitts Vice President USAA Real Estate Company 9830 Colonnade Blvd., Suite 600 San Antonio, TX 78230-2239 Phone: 210-498-8184 Mr. Scott Kusy President Big Moon Development, L.L.C. 8425 La Senda Avenue Scottsdale, Arizona 85255 Phone: 480-585-6348 Mr. Richard Vann Executive Vice President Sunroad Enterprises 1455 Frazee Road, Suite 1000 San Diego, California 92108 Phone: 619-692-3220 Mr. Steve Couig Chief Operating Officer Capital Pacific Holdings 4100 MacArthur Blvd., Suite 200 Newport Beach, CA 92660 Phone:949-622-8400 Mr. Gary McClung Midway Trucking Centers 4404 NE Courtney Drive Lee's Summit, MO 64064 Phone: 800-598-2285 14300 North Northsight Blvd., Suite 228 Scottsdale, Arizona 85260 Phone: 816-455-3000 Mr. William Kubly CEO Landscapes Unlimited, LLC 1201 Aries Drive Lincoln, NE 68512-9338 Phone: 402423-6653 Mr. Peter Bridges Vice President Newland Communities 4308 Live Oak Lane Rocklin, California 95765 Phone: 916435-0413 The Westin La Canters Resort Talking Stick Golf Club Maderas Golf Club St. Regis Monarch Beach Golf Links Quintero Golf & Country Club, Haig Point The Sagamore Club Whitney Oaks Golf Club D'Andrea Golf Club Teravista Golf Club 29 Ms. Karin T. Krogius Robinson Ranch Golf Club Executive Vice President Pacific Bay Homes, LLC 4041 MacArthur Blvd., Suite 500 Newport Beach, CA 92660 Phone: 949-440-7202 Mr. John Scovell Kierland Golf Club Chairman of the Board Woodbine Development 1445 Ross Avenue, Suite 5000 Dallas, TX 75202 Phone: 214-855-6000 Mr. Ben Redman Anthem Country Club - Phoenix Vice President/General Manager Anthem by Del Webb 3701 West Anthem Way Anthem, AZ 85086 Phone: 623-742-6024 Mr. Chris Haines Anthem Country Club — Las Vegas President Nevada Operations Del Webb Corporation 11500 South Eastern Avenue Henderson, NV 89052 Phone: (702) 9144901 Mr. Todd Tupper Estrella Mountain Ranch Golf Club SunChase Estrella 3010 East Camelback Road Suite 100 Phoenix, Arizona 85016 Phone: 602468-0800 Mr. Barry L. Talley Vista Ridge Golf Club Vista Ridge Development Corporation 1333 West 120'h Avenue Suite 100 Westminster, Colorado 80234 Phone: 303-795-2800 Mr. Robert Kolb Rose Creek Golf Club President Georgia Tech Golf Club The Melrose Company Traditions at Texas A&M 200 Merchant Street Hilton Head Island, South Carolina 29926 Phone: 843-785-6688 Mr. Rick Hearden Horseshoe Bay Golf Club President Horseshoe Bay Golf Club, Inc. 5335 Horseshoe Bay Road Egg Harbor, W154209 Phone: 920-868-9141 30 CONFIDENTIAL SUverRock Ranch La Quinta Redevelopment Agency Request for Proposal for Operations November 26, 2003 Prepared by: Landmark Golf management 74-947 Highway 111, Suite 200 Indian Wells, Califomia 92210 Phone: (760) 776-6688 31 I- I Landmark November 26, 2003 Mr. Mark Weiss, Acting Executive Director La Quinta Redevelopment Agency 78-495 Calle Tampico LANDMARK La Quinta, CA 92253 Golf Company Advisory Board Robert Wagner Re: SilverRock Ranch Management RFP Chairman Johnny Bench Rick Dees Bill Devane Dear Mark, John Elway Larry Ed Ma Gatlin Thanks for your letter dated November 21, 2003 and your and Roy Stephenson's naro Dr. Gil Morgan time after the Mandatory Pre -Proposal Meeting held November 19, 2003. Ed Don Ohlmeyer Schiller and I appreciated the opportunity to talk openly in person. We have reread Mike Shanahan the RFP and the Golf Course Management Agreement and read the attachment to your letter - the City Ordinance and Resolution. With this information in mind, Landmark's approach reflected in our response to the RFP dated November 7, 2003 is to provide the most economical arrangement possible for the City. We acknowledge up front that we are presenting an economic approach to the RDA while maintaining the highest level of quality service. We request that our proposal be considered; we are passing on Landmark's savings to the City. Landmark is not only proven as qualified to operate your golf facility if selected as Manager, Landmark's management from the top down is local and available full- time, year round. Our local presence is what creates a major part of our reduced costs that are passed on to SilverRock Ranch. There will not be costs of the following nature; therefore a reduction in costs to the RDA as a result of Landmark's local management: Travel expense Housing Mileage Meals Phone bills Travel time Landmark is known nationwide for its cost-effective, quality golf operations and for 32 years of leadership in this desert. 74-947 Highway 1 1 i • Suite 200 • Indian Wells, California 92210 Phone (760) 776-6688 • Fax (760) 776-6686 www landmarkgolf.corn 32 The economics of Landmark's proposal are straightforward. ❑ Upon execution, Landmark will begin its contracted duties immediately and give input to the completion of grow -in free of charge. ❑ Upon opening of the first golf course, Landmark will be paid a total of $7,500 per month. ❑ Upon the beginning of construction of the second golf course, Landmark's monthly fee will increase to $12,500. ❑ Upon the opening of the second golf course, Landmark's monthly fee will increase to $14,000. ' ❑ At the one-year anniversary date from opening of the second golf course, Landmark's monthly fee will increase to $16,000. ❑ At the two-year anniversary date from opening of the second golf course, Landmark's monthly fee will increase to $18,000. s Landmark has many reasons for desiring to be involved with the City of La Quinta and SilverRock Ranch but none are more important than "success through quality golf. " We are available to discuss the proposal above. Your contact throughout. this: process will be either -one of the signatures below. Either of us can be reached at.the: follow numbers and address: . Phone (760) 776-6688 — Fax (760) 776-6686 Yours truly, oe Walser, Jr. Executive Vice President Landmark Golf Management. 74-947 Hwy 111, Suite 200 Indian Wells, CA 92210 Ed Schiller Vice President of Operations 33 RFP Response - SilverRock Ranch TABLE OF CONTENTS PART 1 -EXECUTIVE SUMMARY .................................. 1 PART II — COMPANY OVERVIEW ........................................ 1 PART 11- REQUIRED CONTENTS OF PROPOSAL ............. 2 ❑ Statement of Qualifications .......................... 2 I. List of Project Personnel 3 ■ Ernie Vossler 3 ■ Joe Walser Jr. 4 ■ Edward Schiller 8 ■ Judy Vossler 13 II & III. Experience and Contracts 13 IV. Financial Stability 15 V. Public Agency Experience 16 ❑ Project Understanding and Approach........... 16 ❑ Scope of Services ........................................ 16 REFERENCES 20 PREPARED BY: LANDMARK GOLF MANAGEMENT 34 RFP Response - 3ilverRock Ranch Executive Summary Landmark Golf Management ("Landmark") is pleased to submit this proposal for management services at SilverRock Ranch for the City of La Quinta. Landmark believes that our proven track record of successful, highest quality management services will be of great value to the City of LaQuinta. Landmark Golf Company is a golf management, Real Estate development, and consulting company based in Indian Wells, California. Ernie Vossler and Joe Walser formed their initial company, Unique Golf Concepts in 1971. Landmark Land Company purchased Unique Golf Concepts in 1974, and both gentlemen oversaw the tremendous growth of the company and projects such as PGA West, LaQuinta Hotel Golf and Tennis Resort, Oak Tree Golf Club, Kiawah Island, Carmel Valley Ranch, Palm Beach Polo and Country Club and Mission Hills Country Club. The company offers Real Estate master planning, golf course architecture, golf development and management services to a select number of clients seeking the same quality and high standards that were evident at the projects listed above. Landmark's decades of experience and vast network allow us to attract and retain the qualified talent necessary to operate our clients' facilities in only a first class manner. Landmark employs a number of PGA Golf Professionals and Golf Course Superintendents Association of America Member Superintendents. Our facilities currently under management range from daily fee to private country clubs. Landmark executives have experience managing all types of golf facilities, from resort, daily fee and to private clubs. Company Overview A few companies today stand out in the golf course development and management business. Landmark's principals have proven time and again how to create and manage successful golf facilities, real estate operations, and resort amenities. We have formed a team of talented and very experienced individuals, all with backgrounds in the golf and development business that share a passion for providing quality, professional management services for our clients. Our commitment to quality is the cornerstone by which we have achieved our success as a management and development company. We are committed to providing the best possible golf experience for each guest of our clubs, and we are committed to our owners to develop and operate the very best facility in the market place with the assets available. Guests who visit Landmark managed facilities come away with a memorable Landmark experience. Landmark was the first golf company to successfully bundle club services and charges in the 70's and 80's. We didn't feel that club members and guests should be subjected to the typical "nickel and dime" mentality of the average clubs and courses. By including range balls, lockers, carts and other services in one price, our club members and guests of our daily fee courses were able to experience a memorable day of qolf for one price. This was the beginning of the Landmark AMIL 7117 PREPARED BY: LANDMARK GOLF MANAGEMENT 35 p RFP Response - SilverRock Ranch f' experience. From the very highest standards in customer service to the identity established by the Oak Tree Logo, Landmark set the bar for others to emulate. We believe that two of the most important factors that keep bringing guests to our facilities are great service and excellent golf course conditions. Landmark has developed the highest levels of customer service at our managed facilities, and also the very best possible playing conditions for the available budget and marketplace. We feel that by applying our standards of operating excellence, La Quinta residents and other golfers will have nothing but the best experience at SilverRock Ranch. Today, we know we have achieved our goals and honored our commitments when the guests who have played our clubs leave with a great sense of satisfaction and enjoyment from their golf experience, the Landmark experience. Additional benefits: 1. Landmark has secured agreements with large national vendors offering significant discounts and rebates on golf shop merchandise, food and beverage items, food and beverage equipment, FF&E items for clubhouse and maintenance, fertilizer, irrigation parts, golf carts and maintenance equipment. 2. Ability to acquire the necessary talent to operate your facilities by using our vast network of talent built by our decades of experience in the golf business. 3. Knowledge of necessary agronomic practices in the market. 4. Ability to execute effective marketing and promotional plans in order to build awareness. 5. Access to the network of experienced, specialized consultants for additional third -party validation of solutions to problematic challenges. In summation, Landmark Golf Management is confident in our abilities to apply our time - tested methods and many years of experience to provide a first class golf facility and services that guests find enjoyable, memorable, and affordable. We will work hard to earn your trust and respect as your golf operator. Landmark Golf Management will add significant value to SilverRock Ranch. REQUIRED CONTENTS OF PROPOSAL A. Statement of Qualifications: I. Project Personnel: This proposal is submitted by Landmark Golf Management, LLC, formed as a California Limited Liability Company. The Company has its corporate headquarters in Indian Wells, California. The same individuals, who produced golf and resort projects with worldwide reputations of excellence for Landmark Land Company, Inc., from 1974 to 1992, formed the present company in 1992. PREPARED BY: LANDMARK GOLF MANAGEMENT 2 36 RFP Response - SilverRock Ranch 3 The principals of Landmark Golf Company are: �µ- Ernest O. Vossler Joe Walser, Jr. Johnny Pott Andy Vossler Other corporate executives are: Ed Schiller Tony Campanaro Tom Gilliam Ed Gerlach, ASLA Judy Vossler Eddie Vossler Owner/President Owner/Executive Vice President Owner/Senior Vice President Owner/Vice President Vice President of Operations Director of Merchandising Chief Financial Officer Director of Design Director of Marketing and Tournament Operations Acquisitions/Finance Joe Walser is in charge of operational matters concerning our managed facilities. Ed Schiller will be the corporate operations contact for the City of La Quinta, and he will be responsible for all aspects of operations at SilverRock Ranch. The respective project's General Manager will report to the Vice President of Operations, Ed Schiller. Please refer to the attached resumes for further biographical information on Ernie Vossler, Joe Walser and Ed Schiller. Johnny Pott, Senior Vice President is responsible for the Design and Construction Management Department. Johnny was a successful PGA TOUR player from 1957 to 1972, winning five Tour tournaments and has been an integral part of the Landmark team since 1970. Tony Campanaro, Director of Merchandising, is responsible for the successful marketing of merchandise of the golf retail outlets. Tom Gilliam, Chief Financial Officer, has oversight of all accounting and audit functions related to our managed facilities. One of Landmark's distinct advantages over other firms is our direct access to two of the golf industry's proven leaders: Ernie Vossler and Joe Walser. They have hand picked their corporate staff based upon honesty, integrity, commitment to excellence, and proven experience. These two individuals are icons in the industry and are available at any time to ensure that collectively, we all have the information to make the right recommendation related to your assets. Resume of Key Operations Employees and related experiences: 3 37 PREPARED BY: LANDMARK GOLF MANAGEMENT RFP Response - 3ilverRock Ranch Ernie Vossler, President Ernie Vossler began his golf career as a member of the high school golf team in Ft. Worth, Texas. Growing up in Ft. Worth, it was natural for Vossler to become acquainted with Ben Hogan and Byron Nelson, both of whom wrote letters on his behalf so that he t could join the PGA TOUR. As a TOUR member, Vossler won five times between 1955 and 1962. In 1961, to provide stability for his growing family, he accepted the position as Head Golf Professional at a planned new country club development in Oklahoma City, stopped actively playing on the TOUR and joined the development team, which successfully completed Quail Creek Golf and Country Club. Vossler remained at Quail Creek for 12 years. During that time, he was named PGA National Club Professional of the Year for outstanding abilities as an operator and teacher. Many of his former students became successful PGA and LPGA TOUR players. In 1971, with partner Joe Walser, Jr., Vossler formed Unique Golf Concepts, Inc. to create golf developments. Together they built Marsh Island Golf Club in Ocean Springs, Mississippi; The Cardinal Club in Greensboro, North Carolina; and Oak Tree Golf Club T in Edmond, Oklahoma. Vossler, with knowledge of great golf locations from his years on the PGA TOUR, acquired options for land in La Quinta and Carmel, California. Those properties became La Quinta Hotel Golf & Tennis Resort and Carmel Valley Ranch. In 1974, Unique Golf Concepts, Inc. was purchased by Landmark Land Company, Inc. Vossler continued to oversee land acquisition for projects such as PGA WEST, Moreno Valley Ranch and Oak Valley along with the purchase and expansion of Mission Hills Country Club. Developments that achieved national prominence while he was with Landmark Land Company, Inc., include La Quinta Hotel Golf & Tennis Resort, Mission Hills Country Club, PGA WEST, Oak Tree Golf Club, Oak Tree Country Club, Moreno Valley Ranch, Carmel Valley Ranch, Palm Beach Polo and Country Club and Kiawah Island. After Landmark Land, in 1993 Vossler started Landmark Golf Company, reassembled key staff members and set up a golf course design, construction and management firm. Landmark immediately began acquiring land for project development and signed management contracts for operating golf facilities. As President and Principal in Charge of Oak Tree Golf and Development, Ernie oversees the general performance of the company and ensures that all needed resources are provided. Recently, he was inducted into the Southern California PGA Hall of Fame. Landmark is located in Indian Wells, and Ernie Vossler is a 30-year resident of La Quinta, California. Joe Walser, Jr. Owner / Executive Vice President Joe Walser began his golf career as a member of his high school golf team in Oklahoma City, Oklahoma, playing on the team that won three straight State High School Championships. Walser graduated from Oklahoma State University and participated on the golf team with a full scholarship. He competed as #1 man on the team winning several conference championships. He won the Oklahoma State Amateur and the Oklahoma Open. He competed on PGA TOUR for two years and decided to man r11-V •,. PRWARbD BY: LANDMARK GOLF MANAGEMENT 438 I* RFP Response - 3ilverRock Ranch leave the TOUR after a wrist injury. The responsibility of a wife and three children also contributed to his decision. He then started a 15-year career as a club golf professional. (_ He was President of the South Central Section of the PGA of America for two I consecutive years represented resented his section on the PGA of America Board of p Directors for two terms. He won the Horton Smith Award, a national award for the ( person recognized as giving the most to the education of fellow professionals. In 1971, with Ernie Vossler, Walser formed Unique Golf Concepts, Inc. to create golf developments. Together they built Marsh Island Golf Club in Ocean Springs, Mississippi; The Cardinal Club in Greensboro, North Carolina; and, Oak Tree Golf Club in Edmond, Oklahoma. Walser, along with Vossler, using their knowledge of great locations from their years on the PGA TOUR, acquired options for land in La Quinta and Carmel, California. Those properties have become La Quinta Hotel Golf & Tennis Resort and Carmel Valley Ranch. r _ In 1974, Unique Golf Concepts, Inc. was purchased by Landmark Land Company, Inc. Walser was Senior Vice President of Landmark Land Company, Inc. for 18 years where he was in charge of all golf operations, golf course design and golf course construction. These courses include PGA WEST in La Quinta, California which hosted the Bob Hope Chrysler Classic and where the Skins Game was held for six years; Oak Tree Golf Club in Edmond, Oklahoma which hosted the 1994 U.S. Amateur and the 1988 PGA Championships; Kiawah Island Golf Resort, South Carolina which hosted the 1991 Ryder Cup matches; La Quinta Hotel Golf Club in La Quinta, California which held the World Cup and Senior Skins Game; Mission Hills Country Club in Rancho Mirage, California which held the World Cup and hosts the Nabisco Dinah Shore; Carmel Valley Ranch, Carmel, California and the Palm Beach Polo Club, Palm Beach, Florida. From 1992 to 1996 Walser worked for the PGA TOUR as Chief Operating Officer of PGA TOUR Golf Course Properties, Inc. overseeing the operations of 20 Tournament Players Clubs (of which 12 host PGA TOUR events), PGA TOUR Design Services, Inc. and PGA TOUR Construction Services, Inc. Walser also represented the PGA TOUR at all PGA of America Board Meetings. In 1996 Walser rejoined his business partner Ernie Vossler and Landmark Golf Company. Walser serves as the Executive Vice President of Landmark Golf Management and oversees all of the company's operations. Landmark is located in Indian Wells, and Joe Walser is a long-time resident of La Quinta, California. Detail Resume, Joe Walser: PROFESSIONAL EXPERIENCE Landmark Golf Company Owner / Executive Vice President 1996 to Present PREPARED BY: LANDMARK GOLF MANAGEMENT 5 39 RFP Response - 3ilverRock Ranch Indian Wells, California Joe Walser, Jr. has a name and reputation that are unparalleled in Golf in America. Walser's myriad of experiences in the golf industry spans over 40 years. Today, as Executive Vice President of Landmark Golf Company, Walser's diverse expertise is focused on land acquisitions, real estate development, master planned golf communities, golf project construction, golf club operations, membership plans and golf tournament management. PGA TOUR Chief Operating Officer Ponte Vedra Beach, Florida 1992 to 1996 From 1992 to 1996 Walser worked for the PGA TOUR as Chief Operating Officer of PGA TOUR Golf Course Properties, Inc. overseeing world wide operations of 20 Tournament Players Clubs (of which 12 host PGA TOUR events), PGA TOUR Golf Course Design Services, Inc. and PGA TOUR Construction Services, Inc. Walser also represented the PGA TOUR at all PGA of America Board Meetings. Landmark Land Company, Inc. Senior Vice President La Quinta, California 1974 to 1992 In 1974, Unique Golf Concepts, Inc., was purchased by Landmark Land Company, Inc. Walser was Senior Vice President of Landmark Land Company, Inc. for 18 years where he was in charge of all golf operations, golf course design and golf course construction. These courses include PGA West in La Quinta, California which has hosted the Bob Hope Chrysler Classic and where the Skins Game was held for seven years; Oak Tree Golf Club in Edmond, Oklahoma which hosted the 1994 U.S. Amateur and the 1988 PGA Championships; Kiawah Island Golf Resort, South Carolina which hosted the 1991 Ryder Cup matches; La Quinta Hotel Golf Club in La Quinta, California which held the World Cup and Senior Skins Game; Mission Hills Country Club in Rancho Mirage, California which held the World Cup and hosts the Nabisco Dinah Shore; Carmel Valley Ranch, Carmel, California and the Palm Beach Polo Club, Palm Beach, Florida. Unique Golf Concepts Senior Vice President (Co Founder) La Quinta, California 1971 to 1974 In 1971, with Ernie Vossler, Walser formed Unique Golf Concepts, Inc., to create golf developments. Together they built Marsh Island Golf Club in Ocean Springs, Mississippi; The Cardinal Club in Greensboro, North Carolina; and, Oak Tree Golf Club in Edmond, Oklahoma. Walser, along with Vossler, using their knowledge of great locations from their years on the PGA TOUR, acquired options for land in La Quinta and Carmel, California. Those properties have become La Quinta Hotel Golf & Tennis Resort and Carmel Valley Ranch. PREPARED BY: LANDMARK GOLF MANAGEMENT [. all RFP Response - 3ilverRock Ranch General Manager and Director of Golf at Altus Country Club, Altus, Oklahoma (three years) General Manager and Director of Golf at Lake Hefner Golf Club, Oklahoma City, Oklahoma (six years) Director of Golf at Oklahoma City Golf and Country Club, Oklahoma City, Oklahoma (five years) EDUCATION Oklahoma State University, Stillwater, Oklahoma Bachelors Degree, Education — Attended on a full scholarship Capital Hill High School, Oklahoma City, Oklahoma ACHIEVEMENTS PGA of America Board Member, National Vice -President 1968 to 1970 and 1983-84 PGA of America Horton Smith Award 1970 Played on the varsity golf team Played #1 on the golf team for three years Undefeated in match play for three years Won conference championship two years Won Oklahoma State Amateur Championship Won Oklahoma Open Won over 25 miscellaneous amateur events Played the PGA TOUR 1959-1960 Golf Projects that Ernie Vossler and Joe Walser, Jr. Have Planned/Constructed/Owned/Operated Quail Creek C.C. Oklahoma City, OK Oak Tree Country Club Oklahoma City, OK The Cardinal Greensboro, NC La Quinta Hotel Golf & Tennis Resort La Quinta, CA Carmel Valley Ranch Carmel, CA Belle Terre Country Club La Place, LA Mission Hills Country Club Rancho Mirage, CA PGA West La Quinta, CA Palm Beach Polo & Country Club West Palm Beach, FL Moreno Valley Ranch Moreno Valley, CA Kiawah Island Kiawah Island, SC Oak Valley Golf Club Beaumont, CA The Plantation Indio, CA Las Vegas Paiute Resort Las Vegas, NV Mission Hills Resort Guan Lan Town, Shenzhen, China Oak Valley S.C.P.G.A. Beaumont, CA Landmark Golf Club Indio, CA Landmark Golf Club at Oak Quarry Riverside, CA Golf Club of California Fallbrook, CA Landmark at Hemet Golf Club Hemet, CA The Ranch at Silver Creek San Jose, CA e PREPARED BY: LANDMARK GOLF MANAGEMENT A . .... .. 4 . ' RFP Response - 8ilverRock Ranch Golf Projects Joe Walser, Jr. Has Planned/Constructed/Operated Altus Country Club Altus, OK Quail Creek Country Club Oklahoma City, OK Lake Hefner Golf Course Oklahoma City, OK Oklahoma City Golf & Country Club Oklahoma City, OK Chief Operating Officer 1992 to 1996 PGA Tour Golf Course Properties, Inc. TPC — Summerlin Las Vegas, NV TPC — Sawgrass Ponte Veden, FL TPC — Scottsdale Scottsdale, AZ TPC — Michigan Dearborn, MI TPC — Avenel Potomac, MD TPC - Tampa Bay Lutz, FL TPC - Eagle Trace Coral Springs, FL s TPC - Piper Glen Charlotte, NC TPC — Prestancia Sarasota, FL s TPC — Southwind Memphis, TN TPC - River Highlands Cromwell, CT TPC — Jacksonville Jacksonville, FL TPC - Heron Bay Coral Springs, FL z TPC - Jasna Polona Princeton, NJ TPC — Sugarloaf Atlanta, GA Edward J. Schiller, Vice President of Operations Edward J. Schiller's career started in 1986 with Landmark Land Company of California, at Mission Hills Country Club, as the Assistant Controller. He was responsible for preparing all Financial Statements, Committee Reporting and Budgeting Analysis for Mission Hills Golf Club. He also designed and implemented a new sales journal procedure and early bird sales recap for management, which is now being used in all Landmark resort and country club facilities. After managing the installation of the Point of Sales system for the opening of Landmark Land Company's Carmel Valley Ranch Resort, and the information system and telecom expansion for the La Quinta Hotel, he served as Systems Manager at La Quinta Hotel where he was responsible for all computer operations at the barge resort complex consisting of 640 rooms, 3 championship golf courses, 33 tennis courts and 5 restaurants. In May of 1992 Ed joined Western Golf Properties as Financial Controller of Pelican Hill Golf Club in Newport Beach, California and "worked his way up" to Vice President of New Development. While at Western Golf, Ed was affiliated with such projects in Southern California as Oak Creek in Irvine, The Meadows at Del Mar, and Ocean Trails in Palos Verdes. With Adki&start PREPARED BY: LANDMARK GOLF MANAGEMENT his experience in golf and resort operations, Ed departed from Western Golf to Schiller Golf Consulting in 1999. As President and Founder of Schiller Golf 42 L:: I` RFP Response - 3ilverRock Ranch Consulting, he specialized in all areas of golf operations and development. His consulting services consisted of Market Feasibility Studies, Financial Plans, Business R Startup Plans, Computer System Evaluations and Web Page Designs. Ed returned to Landmark in February 2001 as Vice President of Operations to oversee all facets of Landmark Golf Management's operating contracts. His educational background includes his degree from the University of Windsor in Ontario, Canada where he received an Honors Bachelor of Commerce with a Major in Finance and Economics, and Minor in Accounting. Detail Resume, Ed Schiller PROFESSIONAL EXPERIENCE Landmark Golf Company February, 2001 to Present Vice -President of Operations, Indian Wells. California • Responsible for all facets of golf operations for Landmark Golf Company, owned, managed and consulting properties. • Current projects to date: The Golf Club of California - Fallbrook, California The Ranch Golf Club - San Jose, California Oak Valley Golf Club - Beaumont, California Landmark Golf Club - Indio, California Landmark Golf Club at Oak Quart' - Riverside, California Landmark at Hemet Golf Club - Hemet, California Mojave Resort - Laughlin, Nevada Shadow Hills Golf Club - Indio, California E Schiller Golf Consulting March, 1999 to February, 2001 Principal, Riverside, California Schiller Golf Consulting was a consulting company that specializes in all areas of Golf operations and development. Consulting services consist of Market Feasibility Studies, Financial Plans, Business Startup Plans, Computer System Evaluations and Web Page Designs. • Clients: 1. The Irvine Company - Pelican Hill and Oak Creek Golf Club. Performed year 2000 compliance testing and upgrade for all computer systems. Coordinated and projected managed the SBT financial system software and hardware upgrade. 2. Spieker Properties, Black Point Partnership. Performed miscellaneous consulting projected related to the Stone Tree Golf Club. 3. Landmark Golf Club at Oak Quarry. Performed their startup detail operational financial plan for years 2000 and 2001. PREPARED BY: LANDMARK GOLF MANAGEMENT it 43 RFP Response - SUverRock Ranch Western G Properties, Golf Pro erties Inc. May, 1992 to March, 1999 Vice President of New Development, Scottsdale. Arizona • Responsible for all facets of accounting, insurance, human resources, and financial reporting for -Western Golf Properties and their managed golf properties. (10 projects, 270 holes, were under management operations and 11 under construction or development and were schedule to open in the next year). • Responsible for all projects reporting for pre -opening, startup, maturation and FF&E capital. In addition, responsible for business plan evaluation during the feasibility and development stages. Schiller performed seven startup business plan evaluations of which Western Golf has been awarded four new construction and operating management contracts. • Responsible for Western Golf Properties feasibility analysis for new golf development. Schiller performed seven market feasibility studies for the Orange County daily fee market, Orange County private and public golf market, Inland Empire daily fee golf market, Los Angles daily fee market, San Francisco Bay Area daily fee golf market, Golf Shores Alabama daily fee and semi -private golf markets and the Seattle Food & Beverage Banquet Market. Controller, Pelican Hill & Oak Creek Golf Clubs (Irvine Company Properties) Newport Coast, California • On the management opening team for the construction of Oak Creek Golf Club. This project had a $24 million construction budget, which was under budget by $1.2 million, opened on time as scheduled and a net operating margin in excess of 50 % in the first year of operation. • Accounted for increase in annual Revenue from $4 million to $22 million and Net Operating Profits of 30% to currently over 52%. • On the management opening team for construction of the Ocean Course North at Pelican Hill which included all of the Job Cost Accounting. ($12 million construction budget) • Responsible for all facets of accounting and financial reporting for Pelican Hill (36 holes) and Oak Creek (18 holes) Golf Clubs. • Implemented a Management by Objective program for all levels of employees and management to reduce operating expenses increase revenues and most of all, to improve customer service. • Supervised a staff of 6 personnel including two people at Oak Creek and four people at Pelican Hill Golf Club. Landmark Land Company of California, February, 1986 to May 1992 System Manager, La Quinta Hotel La Quinta, California • Responsible for all computer operations at a large hotel complex consisting of 640 rooms, three championship golf courses, 33 tennis F, PREPARED BY: LANDMARK GOLF MANAGEMENT lei RFP Response - SilverRock Ranch I courts and five restaurants. • Duties included managing a 1200 port GTE OMNI PBX phone switch, 100 port Basic Four - CLS Property Management System, 50 terminal NCR Point of Sale System, 30 PC Novell LAN Network Software: Lotus 123, Q&A, Word Perfect and Miracle), 10 Unysis - M&D Back office system and all other miscellaneous Hotel systems, TCA, Credit Card Deposits, Time Clocks, etc. On the management opening team for Carmel Valley Ranch Resort, r responsibilities were Point of Sales. ° On the management expansion team for La Quinta Hotel, responsibilities included all computer systems and telecom. Assistant Controller, Mission Hills Country'Club Rancho Mirage, California • Responsible for preparing all Financial Statements, Committee Reporting and Budgeting Analysis for Mission Hills Golf Club. • Designed and implemented a new sales journal procedure and Early Bird sales recap for management, which is now being used in all Landmark Resort and Country Club facilities. • Corporate Projects - NCR Point of Sales System and golf shop Perpetual Inventory System. EDUCATION University of Windsor 1981 to 1985 Ontario, Canada Honors Bachelor of Commerce Major: Finance and Economics. Minor: Accounting ACHIEVEMENTS Golf • Winner of several amateur golf tournaments and qualified and participated in several provincial and amateur championship. • Played for the University of Windsor Golf Team — 1982, Provincial Champions. • Misc. Running: Completed 30 plus marathons/ultras and four Ironman events. • Coached ice and roller hockey. • Skiing, multi -sport events, tennis, hockey, reading and bridge. Golf Projects Ed Schiller has been affiliated with: Alabama: Gulf Shores (Potential Golf Project) 45 ,r PREPARED BY: LANDMARK GOLF MANAGEMENT RFP Response - SilverRock Ranch Arizona: Estrella Mountain Ranch Golf Club -Goodyear The Country Club at Prescott Lakes - Prescott California: Arroyo Trabuco Golf Club - Rancho Mission Viejo (Potential Golf Project) Carmel Valley Ranch Golf Club - Carmel Chiquita Canyon Private Golf Club - Rancho Mission Viejo (Potential Golf Project) Hasley Canyon Golf Club - Los Angeles County (Potential Golf Project) Landmark Golf Club at Oak Quart' - Riverside Landmark Golf Club - Indio Landmark at Hemet Golf Club - Hemet La Quinta Hotel Golf & Tennis Resort - La Quinta Lost Canyons Golf Club - Simi Valley Mission Hills Country Club - Rancho Mirage Mission Hills Resort - Rancho Mirage Moreno Valley Ranch Golf Club - Moreno Valley Oak Creek Golf Club - Irvine Oak Valley Golf Club - Calimesa f Ocean Trails Golf Club - Palos Verdes Pelican Hill Golf Club - Newport Coast PGA WEST Golf Club - La Quinta Rancho La Sierra Golf Club - Norco Shady Canyon Golf Club - Irvine Shadow Hills Golf Club - Indio Sierra Lakes Golf Club - Fontana StoneTree Golf Club - Marin The Meadows del Mar - Del Mar The Golf Club of California - Fallbrook The Ranch Golf Club - San Jose Oklahoma: Oak Tree Golf Club - Edmond Oak Tree Country Club - Edmond Louisiana: Belle Terre Country Club - La Place Florida: Palm Beach Polo and Country Club -West Palm Beach Washington: TPC Snoqualmie Ridge Golf Club - Snoqualmie Canada: Three Sisters Resort Golf Club - Canmore, Alberta * PREPARED BY: LANDMARK GOLD' MANAGEMZNT 12 I RFP Response - SilverRock Ranch Hotels and Resorts: La Quinta Hotel Golf & Tennis Resort - La Quinta Carmel Valley Ranch Resort - Carmel Palm Beach Polo Club Resort - West Palm Beach Judy Vossler, Vice President of Marketing and Tournament Operations Judy Vossler began her career in the Coachella Valley in 1980 when she joined the staff of Landmark Land Company at La Quinta Hotel, then a 76 room seasonal hotel. Ms. Vossler served as the General Manager of La Quinta Hotel for 10 years from 1984 through 1993 and was responsible for all operational functions, staffing, expansions, renovations, sales, marketing and community relations as well as interfacing with the golf and tennis facilities of La Quinta Hotel, PGA West and Mission Hills. During that period of time she was intricately involved with the design, planning and construction of various remodel and expansion projects at La Quinta Hotel that resulted ' in a world class 640 rooms/suite full service destination -convention resort. From 1994 through 1998, Ms. Vossler was employed by KSL Recreation Corporation in community relations and real estate marketing, which maintained her close ties to La Quinta Resort and PGA West. In January 1999, Ms. Vossler rejoined the Landmark team as a Vice President of Landmark Golf Company. Her concentration was 1)Tournament Director for the prestigious Skins Game (1999 through 2002) and the Giddings Cup and 2) Communications and Public Relations for Landmark. More recently she has also become Tournament Director for the annual Betty Ford Tournament. Throughout her career in the Coachella Valley, Ms. Vossler has been actively involved in community development and with many non-profit and charitable organizations. In 1995, La Quinta's Chamber of Commerce named Judy Vossler "Citizen of the Year." II & III. Experience and Contracts: Current Management Agreements: Landmark Golf Club (five-year contract — January 2002 to January 2007) Indio, CA 36 holes, Daily Fee Club phone 760-775-2000 Owner Contact (Lehman Brothers) Harold Kliederman Pacific Equities Group P.O. Box 151108 415-459-7700 San Rafael, CA 94915-1108 415-454-3970 FAX PREPARED BY: LANDMARK GOLF MANAGEMENT 13 4'7 RFP Response - 3ilverRock Ranch Shadow Hills Golf Club (five-year contract with five- year extension 2003 to 2013) at Sun City Shadow Hills by Del Webb Indio, CA 18 holes, Semi - Private Currently Under Construction, planned to open 2004 Owner Contact: Paul Quill Director of Land Pulte Homes, Southern California 39755 Berkey Drive Palm Desert, CA. 92211 quillp@delwebb.com 760-772-5334 760-772-5372 FAX 760-578-8191 CELL f Henry B. DeLozier Pulte Homes, Inc. Vice President - Golf 15333 N. Pima Road Suite 300 Scottsdale, AZ 85260 480-391-6204 480-391-6254 FAX 602-739-0488 CELL The Golf Club of California (five-year contract — May 2001 to June 2007) Fallbrook, CA 18 holes, Private Club phone 760-451-8702 Owner Contact William Lyon Homes, Inc. Wade Cable, President 949-476-5410 Paradise Ridge (Owned by Landmark Land Company of Arizona) Phoenix, AZ 2200 acre Master Planned Community currently under development Owner Contact Ernie Vossler, President Landmark Golf Company 74947 Hwy 111 Ste 200 Indian Wells, Ca 92210 760-776-6688 PREPARED BY: LANDMARK GOLF MANAGEMENT 14 RFP Response - 3ilverRock Ranch The Ranch at Silver Creek (5-year contract — 2003 to 2007) San Jose, CA 18 holes, Daily Fee Under Construction, planning to open in May 2004 Owner Contact William Lyon Homes, Inc. Wade Cable, President 949-476-5410 Landmark at Hemet Golf Club (ten-year contract — 2003 to 2013) Hemet, CA 18 holes, Semi -Private Owner Contact Bill Kubly, CEO Landscape Golf Group, LLC, 1201 Aries Drive Lincoln, NE 68512 Mobile: 402-430-6378 f - Ernie Vossler, President Landmark Golf Company 74-947 Hwy 111, Ste 200 Indian Wells, CA 92210 760-776-6688 IV. Financial Stability: Ernie Vossler and Joe Walser's primary business conduit is through Oak Tree Golf & Development Company, LLC. It functions as the investment arm for the principals that include Ernie, Joe, Johnny Pott and Andy Vossler. Oak Tree Golf and Development Company ("Oak Tree") has investments in various entities and Oak Tree has accomplished this without debt. As in any investment company profitability comes through the maturation of its assets. The primary asset of Oak Tree is its investment in Landmark Land Company of Arizona, Inc. Oak Tree holds twenty-five percent of the outstanding stock of Landmark Land Company of Arizona, Inc., whose primary holding is a 2500-acre development in north Phoenix, Arizona. This development is in the midst of the premier development corridor along Scottsdale Road. This asset is expected to reach its greatest profitability within the next two years for ten to twelve years in the future. Oak Tree holds majority ownership in other entities that include Landmark Golf Company, Landmark Golf Limited Partnership and Landmark Golf Management, LLC, which was recently formed to conduct golf management services with Pulte/ Del Webb Shadow Hills. Through these entities, the principals apply their accumulated expertise in golf course design, golf course construction management and golf course operations management. PREPARED BY: LANDMARK GOLF' MANAGEMENT 15 W RFP Response - SilverRock Ranch V. Public Agency Experience: Lake Hefner Municipal Golf Course - Okalahoma City, OK General Manager/Head Golf Professional: Joe Walser, Jr. Owner: The City of Okalahoma City, Ok. Operator: Joe Walser, Jr. B. Project Understanding and Approach: Landmark's philosophy is to create value through quality and service. Each facility that we manage or provide consulting services to set the standard in their respective markets for quality. Because of our perseverance and dedication to the game of golf, we have been able to formulate the ideas and establish procedures that have been proven to provide excellence. Our team is. unmatched in our ability to operate golf. facilities. We call it The Strength of Experience. C. Scope of Services: Our plan for day to day operations include but are not limited to: ■ Develop a competitive analysis and marketing plan with advertising schedules. ■ Install Landmark's policies and procedures for golf shop, accounting, outside service, course assistants and starters, and golf course maintenance departments. ■ Install Landmark's guest services standards. ■ Install golf course maintenance standards to be managed by the course superintendent with direct support from the corporate office. ■ Evaluate all existing merchandise and adjust inventory levels and future orders as needed. Our Director of Merchandising will provide a detailed evaluation of the retail operations with an action plan for items needing improvement. ■ Conduct monthly site inspections and provide written report to onsite personnel and city officials. ■ Focus on constantly maintaining the quality of all personnel hired for the operation of the facilities. ■ Evaluate all golf programs and provide action plan for improvements. PREPARED BY: LANDMARK GOLF MANAGEMENT 16 50 RFP Response - SUverRock Ranch ■ Utilize Landmark's national account program vendors to improve profitability and quality of retail operations. ■ Utilize Landmark's national account program vendors to upgrade any necessary golf course maintenance equipment, ancillary golf vehicles, maintenance transportation vehicles, and evaluate other maintenance purchasing and vendors for operational efficiency. ■ Ensure compliance with all laws, statutes, regulations and ordinances of all governmental entities with respect to maintenance, operation management, and golf course usage. ■ Meet on a pre -determined schedule with City representatives to review operational performance. ■ Implement customer service feedback program via comment cards, customer surveys, secret shopper program, and Internet E-mail. ■ Review capital spending and provide action plan. Landmark managed facilities provide a better product and higher levels of customer service and overall experience than our competition. We don't attempt to apply a standard list of products or services in a cookie cutter fashion. Areas of service improvement that we will assure our clients are: Golf Shop We have the experience and know how to improve the bottom line and to enhance the image, win awards, and enhance the buying experience for our guests. Enhancing Community Awareness Busy golf courses sometimes forget that they are part of a community. The residents of La Quinta are all owners of the facilities, and we need to continue to reach out to them and provide more opportunities for participation. Providing a relaxed, no pressure atmosphere for women, easy access for juniors, and more affordable programs for seniors should be at the top of the priority list. Golf Course Maintenance Simply put, our standards are higher. We demand more from our superintendents. We provide them with the tools necessary to produce the best course conditions possible. Better attention to detail will be a result of our direct involvement. Outside Services These individuals are often the first to greet and the last to interact with the guest. Outside service is an important piece of the overall experience. Commission programs, cross training between this department and the F&B outlets, first tee greeter (starter) enhancements, improvements in the training of player assistants (rangers) and increased offering of services by these team members such as fixing PREPARED BY: LANDMARK GOLF MANAGEMENT 17 51 RFP Response - 3ilverRock Ranch ball marks, course management suggestions, raking bunkers and simply being friendly are all enhancements that will help provide the Landmark Experience. Safety and Sanitation Landmark Golf Company understands the complexity of laws and regulations regarding workplace safety compliance. We have safety programs for our managed facilities that are managed by the on site golf course superintendent and closely monitored by the General Manager and Corporate Operations staff. Safety meetings, impromptu tail gate meetings, training documentation,. training materials, and audits by insurance professionals are all part of this program. Also, a custom Best Management Practices (BMP) guideline document will be provided and implemented. _ Management and Operations Supervision An operations professional based in our corporate office supervises each facility. Site visits are performed weekly. Monthly reports include a total facility inspection, review of recent financial results, golf course inspection with the General Manager and Golf Course Superintendent, and when, possible, visits to the competition for service comparisons. We encourage the owner to accompany our staff on the golf r course and facility inspection, and schedule site visits to accommodate the owner's schedule. A review of budget variances, pertinent financial information, marketing programs, service issues/enhancements, and upcoming events is also shared with the owner representative during the site visit. A detailed, graded report is provided. Training Programs Utilizing on site department heads under the guidance of the corporate office, ongoing training will focus on the following: Outside Services Operation - all areas of outside service with guest contact to include language program, service operations from the guest viewpoint, shadowing of all positions of guest operation including first tee greeter/starter, player assistant and cart attendant. Recognizing areas of concern, anticipation of needs, and empowerment. Each employee will be familiar with Landmark history and other pertinent company information. Golf Shop Operation - point of sale operation, tee time reservation system, phone techniques, anticipation of guests' needs, general opening and closing procedures, tournament operations, language program, empowerment, and Landmark information will be discussed. A custom tailored Policy and Procedures manual will be given to each employee. Retail and Merchandising - training by our Director of Merchandising to include general display, taking advantage of available space, suggestive selling, merchandise receiving, point of sale system, budgets, retail accounting and terms, customer service and empowerment. A comprehensive buying plan will be tailored for each facility. PREPARED BY: LANDMARK GOLF MANAGEMENT 18 52 RFP Response - SilverRock Ranch I. Administration - telephone techniques, language program, payroll administration, accounts payable, accounts receivables, banking, and gift certificates. 0 Golf Course Maintenance - general desired course conditions, attention to detail, clubhouse grounds, awareness of guests on course, preventative maintenance, turf management, equipment orientation, ongoing equipment training and documentation, safety program, irrigation system, budgets, record keeping, personnel records. A custom grounds and greens orientation manual will be given to each employee. The execution of proper training ensures that your facilities will remain consistent within Landmark's standards of quality. References Deane Beman, Former Commissioner of the PGA TOUR 112 PGA Tour Blvd. Ponte Vedra Beach, FL 32082 1-800-556-5400 Jim Awtrey, Chief Executive Officer The PGA of America 100 Avenue of the Champions P.O. Box 109601 Palm Beach Gardens, FL 33410-9601 561-624-8401 561-624-8410 FAX Lary Litchliter, Executive Vice President KSL Recreation, Inc. 56140 PGA West Blvd. La Quinta, CA 92253-4600 760-564-8000 • 760-564-8005 FAX Tom Levy Coachella Valley Water District P.O. Box 1058 Coachella, CA 92236 949-218-0033 949-218-0034 FAX Tom Gustafson, Executive Director/CEO Southern California Section PGA 36201 Champions Drive Beaumont, CA 92223 909-845-4653 909-769-6734 PREPARED BY: LANDMARK GOLF MANAGEMENT 19 53 �Y i RFP Response - SilverRock Ranch a Paul Quill Director of Land Pulte Homes, Southern California 39755 Berkey Drive Palm Desert, CA. 92211 * quillp@delwebb.com 760.772.5334 phone 760.772.5372 fax Cell. 760.578.8191 Wade Cable William Lyon Homes 4490 Von Karmen Newport Beach, CA 92660 949-476-5410 949-252-2505 FAX Bill Kubly, CEO Landscape Unlimited, LLC, 1201 Aries Drive Lincoln, NE 68512 Mobile: 402-430-6378 Henry B. DeLozier Pulte Homes, Inc. Vice President - Golf 15333 N. Pima Road Suite 300 Scottsdale, AZ 85260 Office Telephone: 480.391.6204 Mobile Telephone: 602.739.0488 Lesco Tom Comalli, Manager National Accounts & New Construction 6832 Woodlock Way Citrus Heights, CA 95621 888-407-4849 916-722-1157 FAX Mojave Resort (Former owners, Club sold in May 2003) HB Equities/Conseco Mike Bonnet, Principal Rob Scafura, Vice President 212-980-5510 Ank .T PREPARED BY: LANDMARK GOLF MANAGEMENT 20 54 if) 111111111, 1 H. H film i H Jill I 9 gel V! Ila t I I I t ; 8 Fwj -0.3 10 CC.D, 'o co 01 10 CL S I*lverRock Ranch WORK PROPOSAL November 2003 PREPARED BY: ,., ., OB SPORTS GOLF MANAGEMENT ■ SINCE 1972 ■WWW.OBSPORTS.COM 56 I November 24, 2003 Mr. Mark Weiss ( Acting Executive Director La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, CA 92253 Dear Mark and Committee: Thank you for your consideration of OB Sports Golf Management for the pre -opening consulting services and post -opening management services for SilverRock Ranch. We truly feel that OB Sports is the perfect fit for this high -end management opportunity. The goal of this proposal will be to clearly illustrate our credentials, capabilities, understanding and enthusiasm for this project. Items to expound upon in this proposal will include: • We are intimately familiar with La Quinta and the local and regional golf market. Our founder and CEO, Orrin Vincent, is a La Quinta resident and has resided in the Coachella Valley for more than 20 years. We have experience with more than 15 courses in desert environments including Southern California, Nevada, Arizona, Utah and Mexico. • We have extensive experience in exactly the types of premier high -end services being sought for this project and will meld cohesively with the existing team members already in place at SilverRock Ranch. As we will describe, we have already worked successfully with many of your existing team members on other projects. • The timing of this project is perfectly suited for our company. This will enable us to designate our most senior staff members to this project. • We provide all the systems, controls, buying power and marketing advantages of a much larger company; however, we will provide the hands-on detail and attention from the principals of our company that only a small company can offer. • We have tremendous enthusiasm for this project. OB Sports is a hands-on management company privately owned by members of the executive team, and we are highly selective with our new projects. For SilverRock Ranch, we will do everything necessary to make this project successful. Professional Golf Course Management, Development and Consultation • Since 1972 SilverRock Ranch Cover Letter Page 2 In addition to answering the requirements of this RFP, we will identify various customer segments for SilverRock Ranch, and provide some innovative concepts and ideas as to how we plan to reach those various groups. While being first-class and of true tournament quality, we feel it is imperative for SilverRock to stand out as unique in this highly competitive marketplace. Although we understand that many of these items will be further explored in the interview process, we want to make it ultimately clear our understanding and comfort for this specific project. Official OB Sports Contact for Proposal Process: For the remainder of the proposal process, I will be the main contact and can be reached at the following locations: C.A. Roberts 7025 E. Greenway Parkway, Suite 550 Scottsdale, AZ 85254 480.948.1300 ext. 102 480.518.5000 cell phone caroberts@obsports.com Other RFP or Contract Issues: - Based on our current understanding of your project needs, OB will not need or utilize any sub consultants to carry out this work. - Upon review of the sample contract included in the RFP, OB does not foresee the need for any deviations or modifications. Thank you again for your consideration of OB Sports. We look forward to the opportunity to meet with your committee and further explore our potential role with this project. Sincerel , C.A. Roberts III VP, Business Development; Principal { { STA TEMENT OF Q UALIFICA TIONS 1 E I. A Listing of Project Personnel Including Relevant Experience and Resumes: The work for SilverRock Ranch will be performed by the senior executives of OB Sports, many of whom are also the principals of our company. If appropriate, we hope to be able to introduce these individuals to the committee during the interview process. Listed below is a diagram of the primary OB executives who will be involved with SilverRock Ranch with a brief description of their role for this project in italics: Orrin Vincent Founder & CEO OB Project Coordinator and Primary City Liaison for SilverRock Ranch Jamie Cook Phil Green C.A. Roberts VP Finance; Principal President; Principal VP Marketing; Principal Financial Modeling Pre -Opening Guidance Sales and Marketing Accounting Personnel Selection Public Relations Human Resources All Golf Operations Business Planning Mont Warren Tom Christy Kris Strauss Controller Director of Maintenance Director of Sales and and Construction Marketing Orrin Vincent, Founder and CEO Orrin has been a leader in the golf course management industry for more than 30 years. As mentioned in the cover letter, Orrin is a current resident of La Quinta (on the Citrus Course) and has resided in the Coachella Valley for 20 years. OB Sports Proposal - STATEMENT OF QUALIFICATIONS - Page 1 of 9 Orrin is uniquely qualified (out of the entire golf industry!) to provide strong guidance and support to a new project such as SilverRock Ranch. He understands all aspects of construction, clubhouse design, infi astructure, business planning, marketing, operations and maintenance. Although Orrin is truly a specialist in each of these categories, his strongest suit is the overall leadership he can provide to the entire development team making everyone feel comfortable that the golf component is in good hands. He has extensive experience dealing with municipalities and other government agencies and will also be an excellent liaison for the City. Due to the proximity to Orrin's home, the perfect start date for this contract, and our great enthusiasm for this project, we are willing to commit Orrin as our primary point of contact for the work to be performed by OB Sports at SilverRock Ranch. Orrin and his wife Barbara are highly active in the community. Barbara is the head golf director for the area's Special Olympics programs. Orrin's son, O.D., is the men's golf coach at UCLA. Phil Green, President; Principal Phil has served in leadership capacities in the golf industry for the past 20 years. In addition to his successful stints as general manager and director of golf for many high end golf clubs, Phil has served as President for OB Sports Golf Management since 2001. For SilverRock Ranch, Phil will provide tremendous expertise to the Pre -Opening activities. Just in the past three years, Phil has successfully prepared numerous courses for opening including several with temporary clubhouses with permanent clubhouses under construction. Phil, along with Orrin, will be instrumental in the hiring process for the general manager, director of golf or other key leadership positions at SilverRock Ranch. Once the course is open, Phil will pmvide continual guidance to the project and will assist Orrin with ongoing management direction. Jamie Cook, Vice President Finance; Principal Jamie will lead the financial modeling process and set up all accounting functions. With more than 15 years of experience in the golf management industry, Jamie is well qualified to provide strong financial leadership and direction to SilverRock Ranch. Jamie has direct experience dealing with government agencies and understands the types of reporting necessary and preferred. Working under Jamie will be our corporate controller Mont Warren and his supporting accounting staff in our Scottsdale home office. Additionally, Jamie will receive support on all Human Resources issues from OB's HR Coordinator, Kati Dewyer. C.A. Roberts, Vice President Business Development & Marketing; Principal C.A. will coordinate the business planning process and implement all sales and marketing efforts for SilverRock Ranch. C.A. has successfully "launched" more than 20 upscale courses and understands all of the necessary elements involved such as early media OB Sports Proposal - STATEMENT OF QUALIFICATIONS - Page 2 of 9 60 t B 1 relations, an effective advertising strategy, a sound sales plan and perfectly executed. grand opening ceremonies. C.A. is familiar with the team of McMurray Marketing & Communications and will provide support to their efforts where appropriate. Assisting C.A. in this endeavor is OB's Director of Sales and Marketing Kris Strauss. Kris is currently in charge of six projects for OB and has direct experience in the Coachella Valley market (as does C.A.). In addition to his stints with OB Sports, Kris also served as a regional marketing director for Troon Golf. Tom Christy Director of Maintenance and Construction Tom will provide strong guidance to the golf course construction and grow -in at SilverRock Ranch. Tom has been based in the Coachella Valley for the past four years and has a total understanding of desert environment growing conditions. Tom has directed the maintenance and construction efforts at Ironwood Country. Club as the on - site superintendent and also in a supervisor's capacity for OB. Tom has more than 25 years of experience in the golf industry. He is a highly skilled agronomist, an excellent trainer of on -site talent, and loves presenting a golf course in championship -style conditions. Tom was directly in charge of the nationally televised Fred Meyer Challenge at The Reserve Vineyards and Golf Club in Portland, Oregon, as well as the PGA Senior Tour event in Kenmore, Washington. He loves tournament preparation and understands the many playability and presentation issues involved. Mark Cupit, Potential Candidate for Superintendent at SilverRock Ranch OB is pleased to present Mark Cupit as a potential candidate for Superintendent at SilverRock Ranch. Mark is the current superintendent for the 36 holes at Ironwood Country Club, and is willing to come to SilverRock Ranch if selected. Mark has been with OB Sports for five years. He served as OB's corporate director of maintenance and construction (same function served by Tom Christy today) for several years. He then left our company briefly to serve as Vice President of Construction and Maintenance for Intrawest Golf for two years. During that time, Mark was directly responsible for the construction management and grow -in of The Trilogy in La Quinta, home of the 2003 Skins Game. He returned to OB Sports in 2002 as the Superintendent for Ironwood Country Club and has been directly responsible for the renovation and grow -in of both the South Course and the North Course for the last two years. Prior to joining OB Sports in 1999, Mark was in charge of the construction and grow -in of the TPC Snoqualmie Ridge and also worked directly for a public agency at Meadow Park Golf Course in Tacoma, Washington. Mark is truly one of the top agronomists in the entire Coachella Valley and also understands the many nuances of construction and grow -in. Although it is certainly not mandatory for Mark to serve as Superintendent for SilverRock Ranch, we feel it is a wonderful opportunity for the City and this project. ********** OB Sports Proposal - STATEMENT OF QUALIFICATIONS - Page 3 of 9 61 H. A Listing of the Number of New Contracts for Similar Services in the Last Five Years: In the past five years, we have added 21 new management contracts, although not all are still in our portfolio due to contract expiration or a sale of the golf course. The majority of these projects are highly similar to SilverRock Ranch, either in upscale prestige or in the comprehensive nature of our services. In the right column, we will list unique or similar facets to SilverRock Ranch: 1. TROPHY LAKE GOLF AND CASTING, Port Orchard, Washington Years Involved: 1999 to 2001 (sold) Worked with Heinbuch Golf on Style of Operation: Public/Resort - 18 holes this project. Interesting house Levels of Involvement: Design of Golf Course used for maintenance building. Construction Management Grow -in & Management Contract Ownership 2. WASHINGTON NATIONAL GOLF CLUB, Auburn, Washington Years Involved: 1999 to 2001 (sold) Wonderful modular temporary Style of Operation: Public/Resort - 18 holes building. Expansive maintenance Levels of Involvement: Design of Golf Course building. Host of several major Construction Management collegiate events. Grow -in & Management Contract Ownership 3. CIMARRON GOLF RESORT, Palm Springs, CA Years Involved: 1999 to 2001 (sold) OB successfully built 36 holes Style of Operation: Public/Resort - 36 holes and a 28,000 sq. & clubhouse in Levels of Involvement: Design of Golf Course eight months! Maintenance Construction Management building is fabulous. Grow -in & Management Contract Ownership 4. WINCHESTER COUNTRY CLUB, Auburn, CA Years Involved: 1999 to current Temporary building being used Style of Operation: Private -18 holes while magnificent 40,000 sq. & Levels of Involvement: Construction Management clubhouse is under construction. Management Contract 5. LAGUNA DEL MAR, Rocky Point, Mexico Years Involved: 1999 to current Interesting temporary clubhouse Style of Operation: Private - 18 holes being built while main resort and Levels of Involvements Construction Management club is being developed. Grow -in & Management Contract 6. RODDY RANCH GOLF CLUB, Antioch, California Years Involved: 1999 to 2001 (sold) - Interesting temporary clubhouse Style of Operation: Public/Resort carried out in full Western Levels of Involvement: Grow -in & Management Contract . ,hemp Construction Consultation 7. IRONWOOD COUNTRY CLUB, Palm Desert, California Years Involved: 1999 to current Style of Operation: Private - 36 holes Levels of Involvement: Maintenance Contract Grow -in & Construction Management on Renovation OB Sports Proposal - STATEMENT OF QUALIFICATIONS - Page 4 of 9 6r) 8. RANCHO SANTA FE FARMS, San Diego, California Years Involved: 1999 to 2000 (contract completed) Style of Operation: Private - 18 holes Levels of Involvement: Construction Management Grow -in 9. SEVILLE GOLF AND COUNTRY CLUB, Gilbert, Arizona Years Involved: 2000 to 2002 (contract completed) Style of Operation: Private - 18 holes Levels of Involvement: Construction Consultation Grow -in & Management Contract 10. WE -KO -PA GOLF CLUB, Fountain Hills, Arizona Years Involved: 2000 to current Style of Operation: Upscale Daily Fee - 18 holes Levels of Involvement: Grow -in & Management Contract 11. TUSCANY GOLF CLUB, Henderson, Nevada Years Involved: 2001 to current Style of Operation: Upscale Daily Fee - 18 holes Levels of Involvement: Grow -in & Management Contract 12. THE RANCHES GOLF CLUB, Eagle Mountain, Utah Years Involved: 2002 to current Style of Operation: Upscale Daily Fee - 18 holes Levels of Involvement: Construction Consultation Grow -in & Management Contract 13. SOMERBY GOLF CLUB, Rochester, MN Years Involved: 2002 to current Style of Operation: Private - 18 holes Levels of Involvement: Construction Consultation Grow -in & Management Contract 14. ALIANTE GOLF COURSE, North Las Vegas, NV Years Involved: 2002 to current Style of Operation: Public - 18 holes Levels of Involvement: Construction Management Grow -in & Management Contract 15. THE DUKE AT RANCHO EL DORADO, Maricspa, AZ Years Involved: 2002 to current Style of Operation: Public - 18 holes Levels of Involvement: Construction Consultation Grow -in & Management Contract 16. THREE CROWNS GOLF COURSE, Casper, WY Years Involved: 2003 to current Style of .Operation: Public - 18 holes Levels of Involvement: Construction Consultation Grow -in & Management Contract 17. TERRAVITA COUNTRY CLUB, Scottsdale, AZ Years Involved: 2003 to current Style of Operation: Private -18 holes Levels of Involvement: Management Contract Named Development of the Year by Golflnc Magazine in 2002. Working with the Dahlin Group on the clubhouse. Interesting temporary clubhouse for nine months. Just opened permanent building. OB Sports Proposal - STATEMENT OF QUALIFICATIONS - Page 5 of 9 63 18. LONGBOW GOLF CLUB, Mesa, AZ Years Involved: 2003 to current Style of Operation: Public - 18 holes Levels of Involvement: Construction Consultation Management Contract 19. ANGEL PARK GOLF CLUB, Las Vegas, NV Years Involved: 2003 to current Style of Operation: Public - 36 holes Levels of Involvement: Management Contract 20. THE LEGACY GOLF CLUB, Henderson, AZ Years Involved: 2003 to current Style of Operation: Public - 18 holes Levels of Involvement: Management Contract 21. DALHOUSIE GOLF CLUB, Cape Girardeau, MO Years Involved: 2003 to current We of Operation: Private - 18 holes Levels of Involvement: Marketing and Management Extremely innovation modular clubhouse and cart storage building. Arnold Palmer design. We also worked with Palmer Design in the 1980's on the prestigious Teton Pines in Jackson Hole, WY. Temporary clubhouse is a restored old farm house. Permanent clubhouse to come next spring. M. A Listing of the Number of Current Contracts, and the Number of Contracts Expiring or Up for Renewal in the Next Five Years. 1. WINCHESTER COUNTRY CLUB, Auburn, CA Reference: Linda Clifford, Owner - (916) 635-9370 2. LAGUNA- DEL MAR, Rocky Point, Mexico Reference: Juan Kladt, Owner - 011.52.638.383.0004 3. IRONWOOD COUNTRY CLUB, Palm Desert, California Reference: Mike Williams, GM - (760) 346-0551 4. WE -KO -PA GOLF CLUB, Fountain Hills, Arizona Reference: Raphael Bear, Owner - (480) 816-7149 5. TUSCANY GOLF CLUB, Henderson, Nevada Reference: Bob Unger, Owner - (702) 456-8744 6. THE RANCHES GOLF CLUB, Eagle Mountain, Utah Reference: Shawn Dahl, Owner - (952) 892-8696 7. SOMERBY GOLF CLUB, Rochester, MN Reference: Shawn Dahl, Owner - (952) 892-8696 8. ALIANTE GOLF COURSE, North Las Vegas, NV Reference: Dea McDonald, Owner - (702) 914-4903 9. THE DUKE AT RANCHO EL DORADO, Maricopa, AZ Reference: Monty Ortman, Owner - (602) 955-2424 10. THREE CROWNS GOLF COURSE, Casper, WY Reference: Alice Kraft, Owner - (307) 472-5591 11. TERRAVITA COUNTRY CLUB, Scottsdale, AZ Reference: Joan Burnett, Board President - (480) 488-6356 OB Sports Proposal - STATEMENT OF QUALIFICATIONS - Page 6 of 9 64 12. LONGBOW GOLF CLUB, Mesa, AZ Reference: Joe Isbell, Owner - 602.889.2302 13. ANGEL PARK GOLF CLUB, Las Vegas, NV Reference: Dave Honerkamp, Owner - (949) 219-3773 14. THE LEGACY GOLF CLUB, Henderson, AZ Reference: Dave Honerkamp, Owner - (949) 219-3773 15. DALHOUSIE GOLF CLUB, Cape Girardeau, MO Reference: Cord Dombrowski, Owner - (573) 335-4257 W. Demonstrate Financial Stability by Making a Statement that Accurately Reflects your Company's Overall Profitability and its Balance Sheet Risk from Finaneial. Leverage: The following information summarizes the- financial results of 4B Sports Golf Management, LLC for the year ended December 31, 2002 and for the interim six month period ended June 30, 2003. • Total revenues for the year ended December 31, 2002 and for the six months ended June 30, 2003 were $3,71.8,623 and $1,929,989 respectively. • Net income before taxes was $790,618 for the year ended December 31, 2002 or 21.26% of revenues. • Net income before taxes was $496,384 for the six months ended June 30, 2003 or 25.72% of revenues. • The company anticipates that cash flow from operations is sufficient to fund ongoing operating requirements for the foreseeable future. • The company does not carry any long term debt on the balance sheet. OB Sports Proposal - STATEMENT OF QUALIFICATIONS - Page 7 of 9 V. Ezperience with Public Agencies Golf Course Management Including Names and Current Phone Numbers for Listed Projects: OB Sports has been involved with numerous municipalities and public agencies and has always had effective and positive relationships. Three Crowns Golf Club, Casper, Wyoming • OB is currently supervising final stages of construction and growing in the golf course for Three Crowns Golf Club in Casper, Wyoming. Three Crowns is part of an impressive redevelopment project being directed by the Amoco Reuse Joint Powers Board, which is composed of several city officials. During the interview process and now as part of our monthly reports to ownership, OB meets with all of the top city officials including the city manager, city representatives and mayor. • Our primary contact for the Joint Powers Board is Alice Kraft. Her phone number is (307) 472-5591. If desired, she could certainly direct the committee to additional city representatives as further reference for OB's ability to serve and communicate with the city. Aliante Golf Club, North Las Vegas, Nevada • OB was hired by North Valley Enterprises in 2002 to perform comprehensive construction management and pre -opening management services for a new project named Aliante Golf Club in North Las Vegas. Although North Valley Enterprises is not a public agency, they have a Development Agreement with the City of North Las Vegas whereby the city will take over the golf course (including inheriting the management contract) at the end of one year per the terms of their Development Agreement. Therefore, as part of our business planning, we have met several times with the city to review our programs and make certain they are in compliance with their goals and standards (such as appropriate resident rates for North Las Vegas residents). As a pre- requisite to our contract signing, we were interviewed by the city since we will be working directly for them after a given period of time. • Our contact with the City of North Las Vegas is Mike Henley 702.633.1171 and Greg Rose 702.633.1004. Angel Park Golf Club, Las Vegas, NV • During the 1990's, we owned the golf operation at Angel Park. Our relationship was a 50-year management agreement with the City of Las Vegas. OB Sports funded the development of the project while all long-term assets and improvements are owned by the City. As part of our agreement, OB Sports paid the City a land license fee on an annual basis. During that time, we worked closely with the city to make certain our rates were in compliance with agreed upon'standards in the market and that appropriate resident rates were maintained. • Today, we manage the golf course under third -party contract for Pacific Life Insurance (949.219-3773). OB Sports Proposal - STATEMENT OF QUALIFICATIONS - Page 8 of 9 • Other past city relationships include the following: • City of San Diego (Torrey Pines Golf Club) — OB Sports was hired by the City Council to build the clubhouse and driving range and to operate the golf course from 1987 to 1990. Torrey Pines is one of the nation's most popular and successful municipal facilities and annually plays host to the PGA Tour's Buick Open and will host the U.S. Open in 2008. • City of Incline Village (Incline Village .Golf Club) — From 1981 to 1988, OB Sports leased and operated the golf course owned by the City. We built new greens, made improvements to the golf course and owned all concessions. • City of Wendover, Nevada — From 1985 to 1989, OB Sports built and operated this municipal course. • City of Seattle, Washington — In 1997, OB Sports assisted with the re -design and construction of some of the City's municipal courses. Conclusion on Qua li ications A brief summary of OB's unique qualifications for SilverRock Ranch include: • Experience with more than 34 prestigious high -end courses, most of them on the west coast • Experience with more than 15 courses in desert environment. • Direct experience and local knowledge in La Quinta and Coachella Valley • Past experience with Arnold Palmer Design on three courses • Current activity with The Dahlin Group • Experience with McMurray Marketing Services • Experience with Heinbuch Golf • 18 construction management and grow -in projects in the past five years • Responsible for design of 14 maintenance buildings in the past five years ranging in size from 5,000 to 14,000 square feet. • 15 clubhouse designs in the past five years ranging from 3,500 to 40,000 square feet • 6 with temporary clubhouses in the past five years Much more importantly, however, are the specific individuals assigned to spearhead this project for OB Sports. They comprise the four principals of the company including our founder Orrin Vincent, who will serve as the primary OB Coordinator and City Liaison for SilverRock Ranch. OB Sports Proposal - STATEMENT OF QUALIFICATIONS - Page 9 of 9 67 PROJECT UNDERSTANDING AND APPROACH As a manner of identifying our project understanding and approach, allow us to provide some broad goals we would have for the project through our involvement: 1. PROVIDE STRONG LEADERSHIP A. We know what we're doing! We can and will anticipate unique challenges and problems. When issues occur, we will effectively and quickly solve those problems before they become larger. We will provide clear guidance to the project based on the skills and experience of the specific individuals we will assign to this project including the four principals of our company. We will add further detail in the Scope of Services section on following pages. B. Work well with the existing development team of consultants developing an atmosphere of camaraderie and idea sharing. C. Create organized systems and controls for the project to keep it on time, on budget and per the overall goals. OB will accomplish this through systematized checklists, timelines, policy manuals and employee handbooks, supported once again by our experience and know how. D. CONRAUMCATION! ! Nothing will be more important to help guide the overall golf effort and to bring the total team together, including the city officials. 21 IDENTIFY, DEVELOP AND SERVE THE POTENTIAL CUSTOMER BASE Although we will seek to expand upon this concept with the help of the city, we see the SilverRock Ranch project as much more than a golf course operation. Our vision is to create a place for people of the area to do the following: • to gather • to recreate • to learn • to eat • to spectate • to shop • to socialize • _ to support the community • to participate Based on our experience, we can accomplish all of this within the confines of a truly high -end world class facility. Just because we present the highest of quality doesn't mean we can't still create an energetic, comfortable and friendly atmosphere for all of our local participants and visiting guests. Our first goal will be to identify all of the potentials customers, or users, of the facility. Then, we can develop specific programs for each of these users tailored to their specific needs. OB Sports Proposal - PROJECT UNDERSTANDING AND APPROACH - Page 1 of 5 68 1 Note: Please know that all of these concepts listed below will be developed in accordance with the goals and desires of the City and after much more consideration by the entire team. La Oninta Residents - Occasional Golfers We will develop special prices for residents of La Quinta. With reasonable access (i.e. 5 days), they will simply present proof of residence to receive. the special resident rate. These resident programs will be available without the purchase of any card. La Quinta Residents - Frequent Golfers For fi-equent playing residents, we will develop a special annual card whereby their discount is even greater based upon quantity and activity. For example, if an overall SilverRock Ranch Golf Card is developed with an annual fee, then La Quinta residents will be able to purchase this card at a lower rate (i.e. purchase the card for $89 versus $199 for non-residents). OB Sports Proposal - PROJECT UNDERSTANDING AND APPROACH Page 2 of 5 69 La Ouinta Residents - Shop. Dine or Social Only We will develop special incentives for La Quinta residents to shop, dine or participate in other functions. We may consider discounts with proof of residence, or, we may also develop certain dining functions or occasions targeting local residents (i.e. special shopping days for residents such as Mother's Day or other holidays). Coachella Valley Residents - Frequent Golfers We will propose an annual card program for SilverRock Ranch to involve frequent golfers in the area. This card will provide significant discounts for players willing to make tee times within a limited time period (i.e. 3 days). This program has proven beneficial at other OB-managed properties by helping us fill the off-peak times or off- peak seasons on the tee sheet. As mentioned above, we will sell this card for an annual fee and then offer a discount on the annual fee to La Quinta residents. OB Sports Card programs are much more than just a discount card. We will develop extensive activities for our cardholders to make them feel like "members" of the golf club. These activities will include special tournaments on an annual basis, with some smaller functions on a monthly or even weekly basis during certain times of the year. We will also provide a "Value Pak' for each cardholder whereby we will negotiate certain discounts and benefits for our cardholders at participating retail facilities throughout the Valley. SilverRock Ranch Hotel or Casita Guests We develop special stay and play packages with the SilverRock hotel and casitas. In addition to pricing and/or access advantages, we will develop a seamless interaction between the experience at the hotel and the golf course. Guests will have their clubs handled for them, and their every need will be anticipated. When group events are scheduled at the hotel, we will make certain the entire experience is well coordinated. Resort Guests in La Quinta We will develop similar packages with special hotels and resorts in La Quinta. In similar situations, we have developed a tiered system whereby the special rates or privileges are based upon the quantity of business we expect or receive from each resort. We will prioritize La Quinta resorts based upon the City affiliation and do everything possible to become the true center of public golf in the area.. Resort Guests in Coachella Valley We will extend some of the benefits extended to La Quinta resorts to the entire Valley seeking to align with resorts and hotels of similar quality to our golf operation. OB has tremendous experience marketing with the entire Coachella Valley resort network and has personal relationships with the GMs, Sales Managers, Concierges and Bell Desk personnel that will prove beneficial to SilverRock Ranch. General Visitors to the Area We will develop unique concepts to draw recognition to SilverRock Ranch making it a special tourist destination in the Valley. The most important component will be value, which will be achieved by offering a reasonable greens fee as compared to the truly upscale conditions and surfaces. Other ideas may include providing a special gift for each tourist greens fee (i.e. no special prices) such as a poster of the golf course or a special book or memorabilia from Arnold Palmer. Groups - Corporate or Charity Functions We will develop special packages to aggressively sell group outings. Group business is highly valuable because they fill large blocks of the tee sheet; they typically book far in advance; will play in inclement weather, and are strong candidates to rebook, saving future sales and marketing expense. OB has 30 years of experience soliciting and serving group business and will provide clear guidance to this process. OB will present its unique OB Sports Proposal - PROJECT UNDERSTANDING AND APPROACH -Page r�3 of 5 o } i "Charity All -Stars" program to the area whereby we will host special events at SilverRock Ranch educating potential event coordinators as well as local businesses and service groups. Juniors. Schools, Special Olympics SilverRock Ranch will reach out to the community to involve certain segments of the golfing population. These will include a variety of junior programs with special tournaments, meaningful instruction, etiquette ' development and clinics. We will reach out to the area's schools and offer a place to practice, compete and learn. We will consider the involvement of the area Special Olympics for practice programs and for events. Professional Golfers The Coachella Valley is home to a wide range of professional golfers needing a place to practice and hone their skills. In addition to PGA Tour players, we will also consider reaching out to the various Development Tour players. Many of these will become stars of the future and will appreciate the loyalty shown to them in their early days. In some cases, these development talented players can even serve a role in the golf course operation, and are certainly ideal for clinics to assist our trained instructors. 3. MAKE THE FACILITY STAND OUT AS TRULY UNIQUE With more than 15 courses in La Quinta, and 100+ in. the Coachella Valley, it is imperative to stand out as innovative and unique. This is easy to say, but sometimes tough to accomplish. The Coachella Valley is truly one of the highest quality (and most competitive) golf markets in the entire world. Furthermore, La Quinta is the epicenter of this golf hub. One of the primary methods for standing out as unique is to provide spectacular maintenance. The health of the turf is certainly the primary ingredient, but next comes the presentation which can be greatly influenced through special grooming techniques. OB will work closely with Palmer Golf Design to determine the desired playability and presentation desired by their team. Furthermore, budget will be considered before any maintenance practices are final. Ideas may include: • Triplex mowing of the fairways (versus fiveplex) - this will provide for a tighter "striping" of the fairways. • Hand -mowing greens, tees and all sloped approaches. This would present tremendous visual appeal throughout the property. • Hand -rake all bunkers. • Paint the edges of the cup white everyday. This creates a PGA Tour type of experience for every golfer. • Using a roller on the greens. • Provide tournament conditions everyday. More importantly, our starter or course host will make sure to point out to our golfers the ingredients on the course that are found in true tournament conditions. These may include speed of the greens, firm playing surfaces or challenging roughs. Other ideas to help SilverRock Ranch stand as unique may include the following: a. White Jumpsuit Caddy pro gram A great caddy program provides prestige and recognition to .the project. It can enhance the "tournament feel" of the project and make the overall experience much more special. A great caddy program can also provide interesting jobs for local residents of all ages. OB Sports Proposal - PROJECT UNDERSTANDING AND APPROACH- Page 4 of 5 71 b. Morning Calisthenics Given the early morning nature of many La Quinta residents (especially the elderly or active adults), we would propose a morning calisthenics program on the driving range. Even for non -golfers, this may be a wonderful opportunity to involve local residents in the facility who could enjoy an exercise program followed by a special clinic or breakfast event. c. Coaches Club on Saturday Mornings This is a concept utilized at other OB properties where we host weekly clinics for two levels of golfers: true beginners to the game, and intermediate players still seeking more knowledge. In addition to golf instruction, these clinics discuss golf etiquette, protocol and other game enjoyment aspects. These clinics are a wonderful method of introducing people to the game and developing long-term loyal customers. d. Departing Gift for Tourists We may consider offering a special departing gift for guests paying the full peak greens fee. This could include a poster of the course, an interesting course trinket, or possibly some Arnold Palmer memorabilia. e. SpecialOlympics Given OB's relationship with the Special Olympics (through Orrin's wife Barbara), we might propose having SilverRock Ranch serve as- the regional home for that organization. f. Other "Home Course" Affiliations OB will explore all opportunities for SilverRock Ranch to serve as the home base for valued organizations. This may occur through hosting the annual championship for certain organizations, or possibly even through on -site placement of a home office. 4. SATISFY THE GOALS OF THE CITY In developing the golf course and overall operation, OB will work closely with the City to determine its true goals for the project, both short-term and long-term. Each and every decision related to the business planning and implementation of policies and procedures will take into account these shared goals. Based upon our understanding of the project to date, we see the following as key goals to focus upon: • A Truly Spectacular & First -Class Operation • Unique Special Touches • Creative and Beneficial Uses for La. Quinta Residents. • Support the Hotel and Other Commercial Uses on -site • Developing Long -Term Customers • Satisfy the Revenue Goals for the City • Community Contributions • Prestige for the City OB Sports Proposal - PROJECT UNDERSTANDING AND APPROACH Page 5 of 5 72 Based upon our inquiries into SilverRock Ranch over the past year, our review of the website, our attendance at the Pre -Proposal Meeting, and discussions with various consultants and team members affiliated with the project, OB Sports has an excellent understanding of the Scope of Services requested by the City. Using the RFP as a guide, we will provide brief responses to each topic listed in the Scope of Services section, with the hope of being able to expand upon these thoughts during the interview process: 1. Pre -Construction or Pre -Opening Services • Review and offer comments on the construction plans and specifications for the golf course, temporary clubhouse, maintenance building and restrooms from an operational perspective. In the past five years, OB has assisted with 18 high -end golf course construction projects; 6 temporary clubhouses; 14 maintenance buildings; and numerous on- course facilities. We will assist with project timelines, organization and value engineering. • Assist the Building Architect in the floor plan programming of the temporary clubhouse and maintenance building. OB is currently working with the Dahlin Group on a smaller (yet stylish) clubhouse in North Las Vegas. In the past five years, OB has assisted with the design of 15 upscale clubhouses ranging in size from 3,500 to 40,000 square feet. We understand the delicate balance between style and functionality and will prepare the buildings for every use necessary by the ultimate operation. • Coordinate with the Marketing Consultant on a pre -opening marketing plan, score card design and printing, yardage guide design, media relations and grand opening. OB has worked with Carol Ackerman and has confidence and comfort in her abilities. Over the past, five years, .OB has prepared more than 16 high -end courses for opening. Our relationships with leading vendors, printers, sports writers and other marketing agencies will provide opportunities for savings and assure quality. We have extensivg checklists for pre -opening supplies and images to make sure it's kept on a proper timeline and that nothing is missed. • Initiate corporate outings and special event sales and provide a system for the City to monitor monthly progress. For 30 years, OB has excelled at reaching and serving the corporate outing business, including the Coachella Valley. Some of our more recent courses run more than 15, 000 group rounds annually. We have controls in place to systematically solicit this target market, coordinate on -site sales meetings and schedule the event. The real key is to take such great care of the event (and event coordinator) that they rebook for the following year. OB will provide detailed reports to update the City on the prospective and scheduled bookings. Through our interactive website, we will update frequent customers so they will know when the course is being utilized for events. • Assist the City in development of pricing strategy. Obviously, this is a critical component. The key to effective pricing is to truly understand the market. OB understands the current status of the local market and can also provide insight from trends in comparable markets such as Las Vegas or Phoenix. We also understand from 20 years of local experience the trends that have occurred in the Coachella Valley and mistakes made in the past that should be avoided. As mentioned in the Project Understanding section of this proposal, OB will develop specific programs for different customer segments and attempt to utilize the full tee sheet on a 7-day, 12 month basis. OB Sports Proposal - SCOPE OF SERVICES - Page 1,Qf Provide an operations manual, employee handbook, and job descriptions -for each position. Each of these requires City approval. OB has all of these documents already prepared and even customized for California. We will share these with the City when appropriate. • Hire the maintenance and grow -in staff in anticipation of receiving grassed holes. The golf course superintendent should be hired prior to drainage and irrigation system installation. The Superintendent shall be a current class "A" members in good standing of the GCSA. The management firm should provide a seamless transition from the contractor when the golf course is completed. As mentioned previously, OB is prepared to present Mark Cupit as the Superintendent for SilverRock Ranch. Mark is currently the Superintendent for the 36 holes at Ironwood Country Club. He also served as the Construction Manager for The Trilogy in La Quinta. Mark has extensive experience working with public agencies as well. If Mark is not chosen as the Superintendent, OB has a very deep and strong talent pool from which to draw. Given the premier status and location of SilverRock Ranch, this will be a very prestigious opportunity for any Superintendent. • Coordinate with the City the purchase of all maintenance equipment, fertilizer and other supplies, including irrigation parts, maintenance building set-up, signage and practice range needs. All purchasing discounts available to the management firm shall be passed on to the City. OB has excellent national account buying programs with all of the leading vendors and suppliers of maintenance and golf operational supplies and equipment. Our discounts will present significant savings to the City on initial purchases as well as ongoing parts and supplies. In many cases, through our relationships with these vendors, we can keep various supply items on -site through consignment and only be billed .when the items are utilized by the operation. 2. Post -Opening Services • Maintain and operate the golf course and ancillary facilities in a first-class manner consistent with the quality expected in a premier golf resort in accordance with standards established by the City. Upscale golf operations are the only type of product with which OB has been affiliated since 1972. Some of our daily fee courses command greens fees near $200 and some of our private clubs are the most exclusive in the nation. We fully understand the City's goal to present a first-class, high quality product to the market. We plan to implement those standards in full within in a friendly, comfortable atmosphere. • Assist the- City in negotiating arrangements with concessionaires, licensees, tenants and other users of the facilities. OB has worked with every type of concessionaire possible in a golf operation, and in many cases have been the concessionaire. We understand all of the necessary elements towards obtaining appropriate licenses to operate the facility. • Maintain an appropriate level of supplies for the facility and its customers. Through our checklists and well -trained staff, OB will constantly have the appropriate supplies on hand to serve the many needs of our customers. • Hire, train and supervise the staff necessary to manage and operate the facilities. This is likely the most important decision for any operation to put the right people in place. OB will identify supremely talented individuals to come to SilverRock Ranch. If attrition occurs, OB will quickly replace those individuals with comparable talent who already understand our goals and standards. OB Sports Proposal - SCOPE OF SERVICES - Page 2 of 4 74 1 • Prepare and submit to the City an annual operating budget including expenditures for facility operation and maintenance, repairs and alterations, furnishings, equipment and operating inventory, advertising sales and business promotion and a five (5) year capital improvement program. Given our extensive experience, OB is highly skilled and capable of this preliminary, and ongoing, budgeting process. Because we have also owned 7 golf courses, we understand the financial implications from an owner's perspective. We have been told from respectable sources that our financial reporting mechanisms are as fine as any public agency (although we are privately held). Our reporting mechanisms have proven satisfactory for public agencies and major banks as well. • Provide a general manager for the Golf Course to be responsible for the day to day management who shall reasonably be available during normal working hours. OB already has several top candidates in mind for general manager. Our goal will be to find someone with not only the skill and talent for the job, but also someone who will emotionally attach to the project and develop deep roots in the community. • Provide a director of golf who is a current Class "A" member in good standing of the PGA or Ladies PGA. Given our current talent pool in our company, combined with our extensive connections throughout the industry, OB is able to place strong leaders in these key positions. Because we are owned by executives who have served these on -site jobs themselves, we are able to relate to the unique needs and challenges of the position and the people. we manage. • Provide USGA golf handicap services to both men and women golfers who patronize the facility. This is done at all of our facilities. • Provide starter services in golf shop including assignment of tee times and carts and the collection of fees. This is done at all of our facilities. • Provide paid marshals when course is open for play to closely monitor and control speed of play. This is done at all of our facilities. We will also implement additional programs for pace of play such as timing updates at the turn. In some cases, we have provided challenges and incentive opportunities for our customers to finish on time. The main ingredient to managing speed of play is to understand the design and playability of the golf course and to manage accordingly. • Provide certified PGA or Ladies PGA instructors for golf lessons. This is done at all of our facilities. • Manage Food and Beverage operations in the temporary clubhouse and on the golf course. Comply with all state and local law governing the sale and distribution of alcoholic beverages. Obtain and maintain all necessary food and beverage permits from the County of Riverside Department of Health. Although OB's true roots are in the golf business, we have also become experts at managing the food and beverage at a golf facility. It is a delicate balance between serving the needs of the non golfers, while protecting the overall value for the golfer who has already paid a substantial greens fee. All of OB's food and beverage operations (at public facilities) are operated to a profit. We fully understand the local and state governing alcohol sales. OB currently holds 6 liquor licenses in our own name as a benefit to our clients. OB will also serve a great function in analyzing and ordering the kitchen equipment for the temporary and permanent clubhouse. OB Sports Proposal - SCOPE OF SERVICES - Page 3 qf� • In cooperation with the City staff, develop and implement financing and accounting procedures necessary to accurately account for all income and expenses. OB's financial controls and procedures are as fine as you will find in the entire golf industry. We currently ( manage all of the accounting functions for 8 different courses out of our centralized accounting office in Scottsdale. In cases where on -site personnel are more fully utilized, we implement modern technology t allowing OB and the owner to receive timely updates via email and/or live updates. Our monthly reports include variance reports from all department heads and a summary report from the general manager. • Provide systems allowing Finance Department to link into the Golf Course financial records at any time. OB has these systems and will share with the City. • Have demonstrated experience in preparing and managing a golf course in a manner required by PGA Tour specifications. Preparing a course for a major tournament is not only one of our strongest suits; it is also one our favorite endeavors! OB has hosted tournaments at every imaginable level ranging from USGA Championships, PGA Tour, LPGA Tour, Development Tour, PGA Sections, State Opens, Major Collegiate Events, Major Junior Events and Local Events of every kind. We also specialize in "made for TV" events such as the nationally televised Fred Meyer Challenge. Preparing for a major event requires several different areas of focus. First is the golf course. It must be maintained appropriately (usually with narrow fairways, challenging roughs, firm playing conditions and perfect greens). Second is the appropriate consideration for crowd control, concession placements, grandstands, corporate tents, TV towers, cabling, etc. Third is the extensive marketing, sales and on -site promotion that will occur. Fourth is volunteer recruitment and overall hospitality. In our opinion, there is no better marketing medium than a well -run, well promoted tournament. It shows off your facility to your entire customer base in a highly personal and entertaining fashion. • Have demonstrated experience interfacing with "5-Star" quality hotel management in accommodating hotel guests golf play. OB has extensive experience dealing with the many high -end resort and hotels in the Coachella Valley. We also have great experience dealing with many equally exclusive resorts in parts of Scottsdale, Las. Vegas and Lake Tahoe. We understand how to seamlessly manage the transition from the "5-star" hotel to our golf facility. We will arrange programs for the customers to never have to handle their bag and to have full "concierge" services throughout their stay. DESCRIPTION OF OR SPORTS' CURRENT WORKLOAD Although OB is one of the industry's most successful and fastest growing management companies, we are highly selective in choosing our new projects and managing our growth. It is important to us the project meets certain minimum standards in regards to quality, and that the goals of the ownership group are aligned with our goals as a company. At SilverRock Ranch, both of these are certainly the case. Another critical element in our business is timing. Certain types of projects take more time than others. Typically, new construction is the most time consuming and certainly draws upon specific individuals in our company. In 2003, OB Sports has successfully grown -in and opened five projects. Two of our other new contracts, Three Crowns and Pacific Gailes, are not scheduled to open until spring of 2005. Therefore, with a contract start date of February, 2004, and an opening planned at the end of that year, SilverRock Ranch is perfectly suited to receive the full attention of our key executives and construction personnel. Ongoing, the project will be reasonable to manage due to the proximity to Orrin Vincent (who resides in La Quinta) and to Ironwood Country Club in Palm Desert. OB Sports Proposal - SCOPE OF SERVICES - Page 4 of 4 76 :TROONGOLr ATTACHMENT 2 Via Morning Priority Federal Express November 25, 2003 Mr, Mark Weiss Assistant Executive Director/ Project Manager La Quinta Redevelopment Agency 78-495 Calle Tampico P.O. 1504 La Quinta, California 93353 Re: Troon Golf Cost Proposal - SilverRock Ranch Dear Mr. Weiss: Troon Golf, L.L.C. ("Troon") is pleased to send you this Cost Proposal, which sets forth the fee structure for Troon to provide Development/Construction/Pre-Opening Services for, and to enter into a management agreement to manage on behalf of La Quinta Redevelopment Agency ("Owner"), that certain golf facility, located in La Quinta, California and known as SilverRock Ranch. 1. Development/Construction/Pre-Opening Services. Troon *Golf shall provide the development, construction and pre -opening services described in the Work Proposal, in connection with the development of the golf facility at SilverRock Ranch in exchange for a fee equal to $7,000 per month, to be pro -rated for any partial month. The development, construction and pre -opening services are anticipated to begin as soon as reasonably possible, and continue until the opening day of the golf facility at SilverRock Ranch. 2. Management Agreement Base Fee. Troon Golf shall provide the management services described in the Work Proposal, in connection with the management of the golf facility at SilverRock Ranch in exchange for a Base Management Fee of $6,500 per month, to be pro -rated for any partial month. The Base Management Fee shall begin on the opening day of the golf facility at SilverRock Ranch and continue for a term of five (5) full years. The Base Management Fee shall increase annually by CPI. 3. Management Incentive Fee. Troon Golf shall receive an Incentive Management Fee equal to two percent (2%) of gross revenues generated from the golf facility paid monthly. Subject to Owner's approval, all reasonable out-of-pocket expenses incurred by Troon in providing the Development/Construction/Pre-Opening and Management Services, such as travel (at coach rates), mileage and lodging expenses, shall be paid by Owner within thirty (30) business days of Troon's presentation to Owner of an invoice for such expenses. Thank you for your time and consideration. Very truly yours, Y Andrew J. Jerso Vice President Business Development Management - Development - Marketing 15044 North Scottsclale Roacl, Suite 300 - Scottsdale, Arizona 85254 Tel 480.606.10oo - Fax 480.606.1oio 77 November 26, 2003 i ,anclmark Mr. MarK w eiss Acting Executive Director La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, CA 92253 Re: SilverRock Ranch Fee Schedule LANDMARK , pre -opening g re-o enin operations, Golf Company Pre -construction Services. Grow-inmarketing, p p g p Advisory Board coordination with the RDA and City representatives Robert Wagner Chairman ❑ Upon execution, Landmark will begin its contracted duties immediately and Johnny Bench give input to the completion of grow -in free of charge. Rick Dees Bill Devane John Elway Post-o�Iening Services: Larry Gatlin Ed Marinaro o Upon opening of the first golf course, Landmark will be paid a total of Dr. Gil Morgan Don Ohlmeyer $7,500 per month for operations management. Mike Shanahan ❑ Upon the beginning of construction of the second golf course, Landmark's monthly fee will increase to $12,500 for Pre -construction Services and operations management. o Upon the opening of the second golf course, Landmark's monthly fee will increase to $14,000 for operations management. ❑ At the one-year anniversary date from opening of the second golf course, Landmark's- monthly fee will increase to $16,000 for operations management. ❑ At the two-year anniversary date from opening of the second golf course, Landmark's monthly fee will increase to $18,000 for operations management. Landmark will provide the employees and be reimbursed fully by SilverRock Ranch for all employee costs. The dollar amounts above are net to Landmark monthly. SilverRock Ranch will own the inventories, FF&E, golf carts and all maintenance equipment. Phone (760) 776-6688 — Fax (760) 776-6686 Landmark Golf Management 74-947 Hwy 111, Suite 200 Indian Wells, CA 92210 74-947 Highway 11 1 • Suite 200 • Indian Wells, California 92210 Phone (760) 776-6688 • Fax (760) 776-6686 wwwlandmarkgolf.com (r� 8, COST PROPOSAL FOR SIL VERROCK RANCH Thank you for your consideration of OB Sports Golf Management for the management of the SilverRock Ranch Golf Facility. As stated in our Work Proposal, OB Sports feels that it is perfectly suited for SilverRock Ranch and is highly enthusiastic about this golf management opportunity. With that same enthusiasm in mind, we offer the following Cost Proposal: Pre -Opening Construction Consultation, Grow -in, Marketing and all Pre-Openinp-Operations OB proposes a consulting fee of $8,000 per month for the scope of services pertaining to construction consultation, grow -in, pre -opening marketing, and pre -opening operations starting from the contract commencement date to opening day. Management Fee Once the Course is Open Based upon our review of the sample contract, OB does not foresee any need for deviations or modifications. Similar to section 4.0 in the sample contract, OB proposes the following combination of a Fixed Management Fee and a Percentage Management Fee once the course is open for play: Fixed Management Fee OB proposes a fixed management fee of $7,000 per month. Per the terms used in the sample contract, this fixed management fee shall be increased annually on July 1 of each Operating Year (the "Adjustment Date") in accordance with the percentage increase, if any, in the Index for the month of May immediately preceding the Adjustment date as compared to the Index for the like month of the previous year. Percentage Management Fee For each annual period during the Management Term (proposed as 60 months), OB proposes to receive 5% of that portion of the Gross Revenues (as defined in section 4.1.3 of the sample contract) derived from the operation of the Golf Course that is in excess of $2,500,000; provided, however, that in no event shall the Percentage Management Fee, for any annual pay period during the Management Term, be greater than an amount equal to 50% of the Fixed Management Fee. Development of a Player Development Fund through OB's Proceeds As a manner of illustrating our enthusiasm for SilverRock Ranch, as well as our commitment to growing the game of golf, OB would like to propose that 25% of the amount we receive for our annual Percentage Management Fee will be contributed into a Player Development Fund at SilverRock Ranch. With City approval, we would desire to form a committee comprised of OB and City officials (equal representation) and together decide on the best use for these funds. Concepts we have considered include: • Development of an Orientation Center for New Golfers • Development of Special Events, Clinics or Functions for New Golfers • Contributions to worthy charities or organizations dedicated to growing the game Thank you once again for your interest in OB Sports Golf Management We look forward to your comments. OB Sports Proposal - COST PROPOSAL - Page 1 of