Proposal - OB Sports Golf ManagementS I*lverRock Ranch
WORK PROPOSAL
November 2003
PREPARED BY:
,., .,
OB SPORTS GOLF MANAGEMENT ■ SINCE 1972 ■WWW.OBSPORTS.COM
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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"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.
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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
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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.
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• 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
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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.
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