COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

FEBRUARY 15, 1996

ATTENDANCE:

B & A MEMBERS: Wishnie, LaMotte, Darcy, Young, Abinanti

OTHERS: C.E.’s Office: Gina Angiulo, Jamie Hastings; Budget Dept: Joe Phelan, Brian Fitzpatrick; PRC: Sal DeSantis, Bob Young; Planning Dept: Lynn Oliva, Gerry Mulligan; North County News: Jim Doughty; LWV: Esther Shay; CBAC: George Hosey; Ossining School Board: Chris Heath; John Dedyo; Legislator Mosiello; BOL: Pat Gorski, Don Sandford, Robert Boland, Tina Seckerson

Co-Chair Wishnie opened the meeting at 3:10 p.m.

Discussion: (There is a cassette tape on file for more detailed information)

Hudson Hills Property:

Mr. Wishnie began the discussion by stating that the reason this issue needs to be expedited is that the Memorandum of Understanding between the County and IBM has a time frame of February 28th. After that date there is no longer an obligation on the part of IBM to wait for the County, they can go off and sell to someone else. Commissioner Oliva confirmed this fact.
The County is proposing to purchase 174 of the 214 acres
Mr. Darcy stated that this will be a $15 million operation by the time we pay for it. He stated that estimates show that it will lose $.5 million the first year and $1 million the second year. Mr. DeSantis stated that it is the construction phase. He questioned the projected revenue of almost $2 million in the 3rd year. Commissioner DeSantis stated that it is the equivalent of 46,000 rounds of golf at $35 a round consisting of 40,000 resident rounds and 6,000 non-resident projected rounds. Mr. DeSantis stated that it is a conservative number of rounds and they feel they will able to do more than that. Mr. Darcy questioned the $1.5 million in cash. Mr. DeSantis stated that it will be bonded and will be made up for in the profit end by the year 2008. Mr. Darcy stressed his concern that he would not like to see the success of the current golf program diluted by having to take from there to make this purchase successful. Commissioner DeSantis stated that there is definitely a demand for more public golf courses in the County. They anticipate a continued increase in the senior citizen market as well as an upsurge in the youth and female participation in golf. The Commissioner stated that the National Golf Association did a study and found that there are 400,000 unaddressed, unmet golf rounds in Westchester County. He said that the demand is appreciably higher than the availability.

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - FEBRUARY 15, 1996

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Commissioner Oliva said that the County Executive made it clear that if we were going to acquire a golf course it would have to carry itself. Therefore the fee at this course would be $35. Commissioner DeSantis stated that the fee is justified as this course will a cut above the other County courses. He continued that the Hudson Hills Course will have 2 features the other course don’t have; a continuous cart path and a double irrigation system.
Mr. Wishnie questioned the tournament policy in the Market Analysis and whether the amount that could be made has been factored in. Mr. DeSantis stated that tournament use is not a big money maker.
Mr. Darcy questioned the fees for other golf courses in the area. Mr. DeSantis stated that the only other municipal courses in the area are Rye and Eastchester. There is a need for another public golf course.
Mr. Wishnie asked if they have heard from the golfing community. Mr. DeSantis stated that the word on the golf courses is that they are interested in seeing this purchase happen.
Mr. Young stated that given the financial magnitude of the project he was concerned with regard to the timetable of the project. He asked if IBM is firm on their cut off date of February 28th. Commissioner Oliva stated that IBM is anxious to move on the sale of this property and probably have other people waiting in the wings. She further stated that there have been implications from IBM that if the County asks for an extension there could be a price tag attached to it. Commissioner DeSantis reminded the Committee that the property was first looked at by the County 3 years ago.
Mr. Abinanti stated that he agrees that public recreation is important but is concerned about the viability of the project as far as paying for itself. He stressed his concern about the message we will be sending by purchasing a golf course at a time when buses and DSS offices are being cut. Commissioner DeSantis stated that he understood Mr. Abinanti’s concern but the time is right for this purchase.
Mrs. LaMotte asked about the demographics of people using the golf courses. Commissioner DeSantis stated that there is appreciable pressure on all of our golf courses due to the high demand.
IBM will not close on the property until all approvals are received from the Town of New Castle.
Mr. Wishnie stated that the proximity of the golf course to the parkway is a major plus. He stated that the County has worked well with the school district and the municipality on this matter. He too is somewhat concerned with regard to the timing but this is an opportunity that you can’t turn down without serious thought.
Mr. Boland requested a debt service schedule that ties into assumptions. Mr. DeSantis will provide.
The cost of the Marketing Survey conducted was $7,000 - taken out of PRC operating expenses.

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Mr. Wishnie asked if the Committee would consider signing this out today for a vote by the entire Board on Monday, 2/26.
On motion of Legislator Abinanti, seconded by Legislator Young, the motion to go into Executive Session for the purpose of discussing negotiations on real property, with only Legislators and Board staff in the room, at 4:13 p.m. was carried by a vote of 5-0.
On motion of Legislator Abinanti, seconded by Legislator Young, the motion to come out of Executive Session at 4:40 p.m. was carried by a vote of 5-0.

There being no further items for discussion, on motion of Legislator Darcy, seconded by Legislator Young, the meeting was adjourned at 4:40 p.m.