An Overview of the Golf Canada Calgary Centre There  has  been  much  discussion  surround  why  Golf  Canada  owns  and  operates  the  facility  in  Calgary;  Golf  Canada  Calgary  Centre.    Was  it  done  for  investment  purposes?    Is  it  a  sport  development  investment?    The  answer,  I  believe,  is  that  it  is  both.    I  have  taken  the  liberty  of  putting  together  this  information  piece  a)  to  provide  some  background  on  the  facility  usage  b)  provide  a  status  update  on  the  facility  post  flood  and  c)  provide  you  with  an  update  on  a  very  exciting  opportunity  that  has  presented  itself  to  the  facility  and  has  potential  application  across  the  country.    Facility  Background  

• In  the  fall  of  2002  the  Royal  Canadian  Golf  Association  acquired  the  Calgary  facility  in  an  effort  to  strengthen  brand  awareness  in  western  Canada  along  with  provide  affordable/accessible  services  for  all  ages  and  playing  levels,  grass  root  programming  to  assist  in  growing  participation  in  the  region  

• The  facility  is  composed  of  a  9  hole  par  3  short  course,  double  ended  championship  year  round  driving  range,  18  hole  all  natural  grass  putting  course  

• Services  include:  an  academy  composed  of  6  full  time  teaching  professionals,  recreational  golf  leagues,  corporate  events,  seasonal  golf  simulators,  food  and  beverage,  merchandise,  club  fitting  and  repair(tenant),  and  the  Golf  Canada  Calgary  Performance  and  wellness  Centre(tenants)  

• The  facility  offers  access  to  this  regions  top  identified  players  as  provided  by  Golf  Alberta,  supporting  our  drive  to  produce  champions  that  will  in  turn  grow  participation  through  mentoring  our  youth  

• The  Calgary  Centre  hosts  30  plus  schools  a  year  accessing  instruction  and  etiquette,  the  driving  range,  short  game,  short  course  and  mini  putt    

• We  host  over  500  children  in  our  CN  Future  Links  “Learn  to  Play”  program  along  with  2  –  3  annual  Skills  Challenges,  Junior  Golf  League  and  Girls’  Club  

• On  average  2-­‐3  Golf  fore  the  Cure  events  are  hosted  at  the  facility  annually  • The  facility  has  developed  a  Junior  High  Performance  Training  Program  “Strive  For  Excellence”  

designed  for  aspiring  junior  competitive  golfers  that  fill  the  gap  between  the  L2P  and  our  provincial  team  programs.    The  facility  employs  a  full  time  coach  to  run  this  program,  this  serves  as  a  case  study  for  movement/culture  change  we  are  attempting  to  make  with  the  PGA  of  Canada.  

• Golf  Canada  Calgary  provides  a  financial  benefit  to  Golf  Canada  (Average  surplus  of  $236k  /  since  acquisition,  before  amortization)    in  addition  to  being  a  pilot  site  for  sport  development  and  Golf  Canada  initiatives  including  the  National  Golf  In  School  Program  

• Calgary  staff  are  proud  ambassadors  of  our  sport  and  represent  Golf  Canada  within  our  region  on  a  professional  level  with  all  stakeholders  and  a  strong  relationship  with  Alberta  Golf  

• The  centre  provides  a  green  grass  facility  for  Alberta  Golf  to  access  for  camps  and  educational  seminars  

Golf  Canada  Calgary  Centre;  Post  Flood  Facility  Update  Golf  Canada  Calgary  was  heavily  impacted  by  the  June  2013  flood  .The  following  serves  as  a  high  level  update  on  status  of  the  recovery:  

• To  a  certain  degree  the  flood  was  a  blessing  in  providing  opportunity;  facilities  and  buildings  have  received  an  exciting  fresh  new  face  lift  replacing  and  upgrading  signs  to  Golf  Canada  branding,  structures,  landscape,  furnishings  and  finishes  throughout.        

• At  this  point  we  have  not  been  able  to  secure  flood  insurance.    We  are  working  with  the  landlord  to  investigate  our  options  

• Championship  Driving  Range  returned  to  operation  on  August  8,  2013  under  the  shelter  on  artificial  mats.    The  grass  tee  hitting  surface  was  reclaimed  and  will  return  to  operation  in  2014.      

• The  9  Hole  Par  3  Course  has  been  completely  reclaimed  and  is  ready  to  re-­‐open  in  spring  2014.    All  the  greens  and  tee  boxes  were  salvaged  along  with  green  surrounds  and  several  fairways  while  we  hydro-­‐seeded  and  laid  sod  in  areas  around  the  perimeter  and  all  heavily  impacted  areas  beyond  repair.    Sand  bunkers  and  infrastructure  such  as  nets  and  perimeter  fences  were  rebuilt.    

• The  main  clubhouse,  maintenance  building  and  tenant  spaces  are  complete  emergency  and  rebuild  and  operations  will  return  to  normal  for  December  2013  after  operating  our  driving  range  and  academy  services  through  a  temporary  portable  trailer  during  the  construction  phase.  

• The  18  Hole  all  natural  grass  Putting  Course  was  completed  destroyed  and  plans  to  develop  were  placed  on  hold  as  we  realized  the  facility  could  not  be  rebuilt  prior  to  the  snow  falling  and  priority  focus  was  on  salvaging  the  other  facilities.  Further  information  on  this  area  is  below.    

Golf  Canada  Calgary  Centre;  18  Hole  Natural  Grass  Putting  Course  In  the  absence  of  the  18  hole  putting  course  the  facility  is  impacted  in  several  ways:  

• The  putting  course  was  positioned  facing  the  main  traffic  route  into  the  facility  and  is  currently  an  eye  sore  from  a  drive  by  standpoint.  The  parking  lot  and  amenities  were  shared  with  our  double  ended  driving  range  or  Academy  short  game  and  private  group  teaching  facilities  that  hosts  our  junior  and  adult  clinics  

• The  Putting  Course  generated  a  surplus  of  $50  -­‐  $75k  annually  that  is  absent  for  2014  • The  Putting  Course  provided  a  place  to  introduce  the  non  golfer  to  our  game  • Instructors  used  this  an  entry  level  introduction  to  the  golf  course  for  our  level  1  and  2  L2P  

programs  • Family  friendly  facility  offering  a  place  for  all  ages  and  playing  levels  to  participate  together  • Presented  an  opportunity  for  parents  to  play  a  round  with  siblings  while  a  child  was  in  a  clinic  on  

the  academy  or  dad  to  hit  a  basket  of  balls  while  children  played  the  putting  course  • Promotional  opportunity  for  corporate  events  offering  an  option  for  the  non  golfer  in  the  office  

to  enjoy  the  golf  environment  often  hosting  groups  that  sent  half  of  the  participants  to  the  putting  course  while  the  other  half  played  and  par  3  course  and  met  in  the  banquet  room  for  a  meal  following  

Options  for  18  Hole  Putting  Course  land  going  forward  In  looking  at  the  options  for  what  to  do  with  this  area,  there  are  a  number  of  options:  

• Option  #1  -­‐  Rebuild  18  Hole  Putting  Course  Returning  to  Pre-­‐Flood  State  -­‐  Natural  Grass  • Option  #2  -­‐  10,000  ft2        Synthetic  Green  for  Multiple  18  Hole  Layout  Mini  Putt  • Option  #3  -­‐  Rebuild  18  Hole  Putting  Course  –  Synthetic  Turf  • Option  #4  -­‐  The  Opportunity  -­‐  Create  a  Shot  Performance  and  Entertainment  Facility  (CAS)  

 A  brief  summary  of  the  options  can  be  found  on  the  following  pages.  I  suggest  that  we  create  a  working  group  of  the  Board  (Paul/Doug?)  to  work  with  SMT  to  investigate  these  options  further  and  bring  a  final  recommendation  to  the  Board  by  the  AGM.  The  reco  will  take  into  account  what  we  plan  to  do  with  the  facility  going  forward  in  terms  of  keeping  it/investing  in  it,  or  possibly  selling  it.  Here  is  some  preliminary  due  diligence  on  each  of  the  options  for  background;    Option  #1  -­‐  Rebuild  18  Hole  Putting  Course  Returning  to  Pre-­‐Flood  State  -­‐  Natural  Grass  It  was  identified  days  after  the  flood  that  this  was  not  a  feasible  solution.    The  Putting  Course  received  mass  destruction  from  the  flooding  washing  out  50%  of  the  greens  and  excessive  damage  throughout.    Asphalt  from  the  parking  lot  was  scattered  throughout  along  with  electrical  conduit  for  night  lighting,  irrigation,  bridges  and  drainage  tile  was  undermined  and  uprooted  beyond  repair.      The  estimated  cost  to  return  this  area  to  pre  flood  is  in  the  range  of  $800,000  (a  full  5  –  6  months  construction)  and  with  a  return  on  investment  of  10  years  based  on  historical  net  profit. Option  #2  -­‐  10,000  ft2        Synthetic  Green  for  Multiple  18  Hole  Layout  Mini  Putt  A  rather  uncomplicated  and  inexpensive  solution  with  a  reasonable  construction  timeline  is  to  fabricate  a  10,000  ft2      practice  green  with  undulation  changes  and  a  unique  design  to  allow  one  to  create  a  12  or  18  hole  putting  layout  that  has  the  ability  to  change  daily.    The  cost  to  develop  this  green  and  the  complete  the  landscape  surroundings  to  create  a  pleasurable  experience  is  estimated  at  $80k  for  a  synthetic  turf  green  and  surroundings(virtually  zero  maintenance)  or  $45k  for  an  all  natural  grass  USGA  spec  green(irrigation,  grooming,  repairs).      

Pros  Ability  to  change  the  layout  daily  Inexpensive  Short  Construction  Time  Frame  New  Concept  Low  Maintenance  if  Synthetic  Cons  Manual  Scorecard  with  ever  changing  layout    Down  Grade  from  previous  facility;  unpredictable  impact  participation  

   

Option  #3  -­‐  Rebuild  18  Hole  Putting  Course  –  Synthetic  Turf  • Highly  recommended  to  construct  a  synthetic  turf  miniature  putting  course  versus  the  very  

delicate,  high  maintenance  and  from  experience,  often  abused  by  the  uneducated  non  golfer,  natural  bent-­‐grass  layout  

• Option  for  a  6,  9,  12,  18  Hole  Design  with  the  ability  to  expand  • Recommendation  to  build  a  fun,  practical  and  aesthetically  pleasing  design  incorporating  a  

challenging  and  enjoyable  experience  for  all  ages  with  traffic  flow,  safety  and  entertainment  in  mind.      

• An  18  Hole  design  Development  Cost  can  be  budgeted  at  $500,000  based  on  miniature  golf  course  designer  Stephen  Wilson’s  experience  with  3  very  impressive  Calgary  and  Area  projects  he  completed  in  the  past  2  years.  Plus  the  Putting  Course  building  ($60,000  maximum  claim  value  on  flood  insurance).  

    Projected  Surplus  $75-­‐$125K  with  a  ROI  of  4-­‐5  years  • Miniature  Golf  Course  competition  is  in  the  far  NE  and  deep  SW  quadrants  of  the  city  while  we  

are  positioned  in  the  Central  SE  quadrant.    The  2  competitor  facilities  have  expressed  a  return  on  investment  in  less  than  2  seasons.  

• Surprisingly  Calgary  does  not  have  any  year  round  indoor  miniature  golf  and  therefore  we  see  an  opportunity  here    

Option  #4  -­‐  The  Opportunity  -­‐  Create  a  Shot  Performance  and  Entertainment  Facility  (CAS)  Taking  the  liberty  of  assuming  there  is  alignment  on  why  we  own  and  operate  the  facility  in  Calgary  –  part  investment  financially  and  part  investment  in  developing  initiatives  that  support  the  sport  the  following  is  an  overview  of  an  innovative  project  that  has  presented  itself  to  Golf  Canada  to  consider  as  a  replacement  project  to  simply  reconstructing  the  mini  putt  course  at  the  south  end  of  the  Golf  Canada  Calgary  Center  property.    What  is  CAS?  The  CAS  Facility  is  a  Premier  indoor  golf  practice,  training  and  entertainment  complex.    The  facility  is  composed  of  a  family  friendly  miniature  golf  component,  15-­‐70  yard  pitching  and  chipping  area,  high  tech  reaction  greens  with  a  variety  of  undulation  and  speed,  full  swing  ball  striking,  designated  instruction  and  club-­‐fitting  for  full  swing,  chipping  and  putting  video  analyzing,  sand  play  practice  from  green  side  to  70  yards,  league  and  corporate  gaming  with  the  similar  but  specific  to  short  game  concept  as  topgolf.com  venues.    The  facility  is  the  perfect  setting  for  the  serious  player,  families,  school  and  youth  groups,  corporations,  new  players  and  advanced  golfers  to  enjoy  a  day  of  golf  in  the  ambience  of  a  country  club  environment  with  the  restaurant  and  lounge,  event  seating,  locker  storage,  modern  design  and  leader  board  technology  providing  an  entertaining  day  of  golf!        

The  Benefits:  “Create-­‐A-­‐Shot”  (CAS)  Performance  and  Entertainment  Facilities  will  compliment  Golf  Canada  Calgary’s  programs  and  services  and  align  with  Golf  Canada’s  initiatives  in:  

•  Providing  affordable  and  accessible  year  round  facilities  for  introducing  and  growing  participation  in  our  region  

• Caters  to  all  ages  and  playing  abilities  • Opportunity  to  expand  CN  Future  Links  Learn  to  Play,  Junior  Skills,  Girls’  Club,  Leagues,  National  

Golf  In  Schools  • Access  for  leading  edge  training  facilities  for  our  provincial  and  national  team  programs  • New;  year  round  revenue  streams  for  Golf  Canada  and  the  Calgary  Centre  • Model  for  Junior  Golf  Development  Centre’s  nationally  • Improved  high  performance  practice  facilities  for  our  elite  golfers  • Model  for  Golf  Courses  to  recognize  year  round  revenue  opportunity    • Providing  increased  participation  nationally  • Ability  to  assist  golf  courses  financial  success  with  a  low  season  revenue  stream  that  is  not  

weather  pendant  • Innovation  of  a  pleasurable  golf  experience  providing  a  unique  competition(adrenalin  and  

excitement)  platform  for  leagues  on  a  condensed  footprint  without  the  often  undesirable  experience  of  slow  play  experienced  in  our  game    

• Secured  Investor  group  and  no  capital  commitment  for  Golf  Canada  • Public  Facility  driven  by  annual  membership  fees  in  addition  to  public  hourly  and  day  use  fees.