The report I was citing *was* from 10 years ago. Wow - time flies when you
are wonk.
Let's see if we can tease this out. The golf courses, refectories, the
parade tennis complex, the ice arenas, boat docks and such contribute $1
million to the Park Board General Fund. From this money, the costs of
paying for providing services like accounting, human resources, and the Park
Board itself. In 1990, this cost was $300,000. Assume over 10 years, this
inflated to about $450,000. So half of this money is going to overhead
costs that should be borne by the income-generating activities.
The balance of these funds, say $500,000 for ease of math, is going to the
general fund for general activities like programs for kids and maintaining
parks. Now if this all was earned on from Meadowbrook alone, an asset with
a value of $20 million, this would be a rate of return of 2.5%. But this
$500,000 is being earned from six golf courses, five concession stands, the
tennis bubble, the boat dock rental, etc. Given the public investment that
exists in these renvenue-producing facilities, the $500,000 which is going
to the Park Board general fund is a pittance.
If we sold only Meadowbrook, and put the money in a trust earning a
concervative rate of interest, say 6%, you could get $1.2 million a year for
kids and parks. For an asset which is outside of our city limits and
benefits few residents, this sounds like a good idea to explore.
As to Meadowbrook making a $350,000 profit and the golf courses making $1
million for capital improvements, this gets mostly plowed right back into
capital improvements for golf courses. That isn't money for kids or parks
in Minneapolis.
Carol Becker
Longfellow
----- Original Message -----
From: Annie Young <[EMAIL PROTECTED]>
To: Multiple recipients of list <[EMAIL PROTECTED]>
Sent: Sunday, November 05, 2000 9:36 AM
Subject: staff reply to Meadowbrook dialogue
> From: "Siggelkow, Donald E." <[EMAIL PROTECTED]>
> To: "Young, Annie" <[EMAIL PROTECTED]>
> Subject: RE: Meadowbrook
> Date: Sun, 5 Nov 2000 08:18:40 -0600
> X-Mailer: Internet Mail Service (5.5.2650.21)
>
> Carol reviewed this over 10 years ago and she is wrong. Meadowbrook nets
> about $350,000 annually and along with all the other courses contributes
> $1,000,000 a year to the Park Board General Fund and to debt service for
> youth athletic facilities. The golf courses also fund $1,000,000 in
annual
> capital improvements for the enterprise system.
>
>
> Annie Young
> Ward 6 - East Phillips
> Citywide at-large Park Board Commissioner
> Working to build a sustainable community
>
