CONTRACT 4801 Bid CLOSEDPro ForA
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Proposal for:
Financial Analysis and Comparison of
The Lakes at Ell Segundo Golf Course
& the T6,pGolf Development Proposal
RFP No. 14 -31
Prepared for: City of El Segundo
Prepared by: Pro Forma Advisors LLC
Gene Krekorian
722 1st Street, Suite F
Hermosa Beach, CA 90254
Tel: 310.616.5079 X 703
gene. krekorian@proformaadvisors.com
December 16, 2014
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Pro Forma Advisors LLC Los Angeles T 310.616.5079 New York Metro T203604.9007 F 888.696.9716 =r ., sr i'rnl..um s aTd d agar , fatal
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December 16, 2014
Members of the Selection Committee
City of El Segundo
350 Main Street
El Segundo, CA 90245
Dear Members:
Pro Forma Advisors is pleased to submit this proposal to the City of El Segundo in response to the City's
Request for Proposal (RFP) to conduct a "Financial Analysis and Comparison of The Lakes at El Segundo
Golf Course and the TopGolf Development Proposal." Pro Forma Advisors LLC, a commercial recreation
economic consulting firm headquartered in Los Angeles which specializes in golf course market analysis and
economics, would serve as the prime contractor. Supporting Pro Forma Advisors is the firm of Casey O'Cal-
laghan Golf Course Design, a professional golf course architecture and design firm. Thus, the team would
be structured as follows:
Discipline Firm Prime /Sub
Golf Market/Economics /Finance /Appraisal Pro Forma Advisors LLC Prime
Golf Design /Capital Improvements Casey O'Callaghan Golf Design Sub
Pro Forma Advisors LLC is a limited liability corporation, incorporated in the State of California in 2008. As
an independent consulting company with no interests in golf management, ownership, or product/industry
representation, we are not aware of any past, existing, or potential conflicts of interest in performing this
work. The firm has two offices - -a Los Angeles headquarters office and a satellite office in the New York
Metro. The headquarters office location is:
Pro Forma Advisors LLC
722 First Street
Suite F
Hermosa Beach, Los Angeles County, CA 90254
Tel: 310.616.5079
Casey O'Callaghan Golf Design is headquartered in Newport Beach, California.
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We believe that we have assembled a team and, more importantly, the professionals which can provide the
assistance required by the City of El Segundo in an effort to conduct a fair and unbiased comparative evalua-
tion of the CentercaVTopGolf proposal and existing The Lakes at El Segundo golf facility. The team of Gene
Krekorian (Pro Forma Advisors, LLC) and Casey O'Callaghan (Casey O'Callaghan Golf Design) have the full
capabilities and experience necessary to provide objective and focused input and recommendations in the
comparative evaluation of the proposed project and existing development. Each of these individuals is lo-
cated in Southern California, is a leader in their field, and has extensive direct experience not only with the
California golf market, but the South Bay golf market specifically. Mr. Krekorian, formerly the leader of ERA's
golf practice for more than 35 years, has conducted more than 100 golf economics assignments in the State
of California for public sector clients. He also is a golf course appraiser certified in the State of California.
It is important to note that Pro Forma Advisors LLC is comprised of former principals from Economics Re-
search Associates (ERA), formerly the largest U.S. independent commercial recreation economic consulting
firm which was acquired and integrated into AECOM in 2008 ( AECOM disbanded the ERA brand and golf
practice). As such, the qualifications and other background information relates to the experience of these
principals, much of which was gained with ERA.
We believe we are exceptionally well qualified to conduct this assignment.
. Through the qualifications and experience of its principals, Pro Forma Advisors is among the most
experienced golf course economic consulting firms in the western U.S. with golf analysts in Los Angeles
and New York.
• Team members (Pro Forma Advisors, Casey O'Callaghan Goff Design) are extremely familiar with the
Southern California and, in particular, the South Bay golf markets. Mr. Krekorian, while at Economics
Research Associates, conducted the original feasibility study for the City of El Segundo in evaluating
Chevron's proposal to deed the land for the golf course to the City. Mr. Krekorian also conducted an
analysis for the City of Los Angeles to acquire the Westchester Golf Course from Los Angeles World
Airports.
• Mr. Krekorian served on the ad hoc committee formed by the City of El Segundo in evaluating the potential
to lease the existing Lakes golf complex to a professional golf course management company.
• Pro Forma Advisors' principals have completed a number of similar assignments for municipalities
including the City of Costa Mesa gust completed), Los Angeles, San Jose, Palo Alto, Santa Cruz, Vallejo,
San Francisco, Oceanside, Blythe, Walnut Creek, Anaheim, Indian Wells, Seattle, Reno/Washoe County,
Kent, Portland and others.
• Pro Forma Advisors is extremely familiar with the California golf market relative to terms and conditions for
management contracts and facility leases. Mr. Krekorian recently represented the County of Los Angeles
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relative to analyzing facility lease options for several of the golf courses in their municipal system. He
represented the City of Walnut Creek, County of Orange and Mountain View in the past several years
regarding management agreements and facility leases with California operators.
. Pro Forma Advisors and Casey O'Callaghan Goff Design are prepared to commit their most experienced
staff to this assignment. Gene Krekorian, formerly a Senior Vice President and now a Principal at Pro
Forma Advisors, has over 35 years golf course economic and market analysis experience. Mr. Casey
O'Callaghan is one of the most experienced and qualified golf course architects in Southern California.
With over 20 years experience, he has focused on golf course modifications and improvements for existing
Southern California municipal and public golf courses.
The proposed team has tested chemistry, having worked successfully together on numerous previous
assignments in California. The extensive collective experience of these individuals working together on
projects in California in their specific disciplines is unparalleled, and provides the perspective necessary to
render unbiased and realistic recommendations and direction for the City of El Segundo.
Following this Introduction cover letter, this proposal is organized as follows:
I. Background
II. Qualifications & Experience
III. Scope of Services
IV. Consultant Team Staffing
V. Consultant References
VI. Project Budgeted Hours and Schedule
VII, Proposed Fee
There is no "proprietary information" contained in this proposal submission.
Pro Forma Advisors, LLC, upon award of the project, will accept the terms and conditions of the City's Pro-
fessional Services Agreement and all the conditions held therein.
Pro Forma Advisors' primary contact person, who is authorized to negotiate and execute Contractual
Agreements with the City, is:
Gene P. Krekorian, Principal
Pro Forma Advisors
722 First Street
Suite F
Hermosa Beach, Los Angeles County, California 90254
Tel: 310.616.5079
Fax: 888.696.9716
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We have read, and understand, the RFP in its entirety, including, but not limited to, the scope of work, and
have no objections to the RFP.
Respectfully submitted,
P,
Gene P. Krekorian
Principal
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The Lakes at Ell Segundo golf facility is comprised of a 9 -hole, par -29, executive length golf course, two -level
practice range with 58 tee stations, 4,000- square foot clubhouse, and other support facilities developed on a
25 -acre parcel. The golf complex is owned by the City of El Segundo and operated under the oversight of
the City (the golf course is operated by Lane- Donovan, a golf course professional management firm, under a
fee - for - service management agreement). The Lakes at El Segundo operates as an enterprise fund for the
City, with the objective of operating as a self- sustaining economic entity without General Fund assistance.
With approximately $2 million in annual gross revenue, The Lakes at El Segundo is among the most
successful 9 -hole short course facilities in the country. It is often used as a model for small golf facilities
developed on limited size sites.
The City has been approached by ES CenterCal, LLC, a local developer, to develop a TopGolf facility on the
existing practice range site. The TopGolf concept combines a technology- driven golf driving range with an
entertainment complex featuring extensive food and beverage facilities. The concept is designed to serve a
much broader market than traditional golfers working on their game, and the facility is often used as an event
venue. There are about 10 existing TopGolf facilities already operating across the country (and England), and
another 10 under construction or in advanced planning. Typically, a TopGolf facility is a 3 -level structure with
about 65,000 square feet, and includes about 100 tee stations.
CenterCal would develop the facility on a ground lease with the City of El Segundo. TopGolf would operate
the facility under a lease agreement with CenterCal. The proposed project would require zoning
modifications, reconfiguration of the golf course, reconstruction of the existing clubhouse, and a parking lot
sharing agreement.
The City is interested in a comparative economic analysis of the proposed complex (modified golf course and
clubhouse, and TopGolf facility) and the existing golf course. Such a comparative evaluation would consider
numerous factors and considerations including: the comparative direct economics of both scenarios from
the perspective of the City; impact on the existing golf course related to its reconfiguration; short- and long-
term capital improvement needs at the existing facility; indirect revenues /benefits related to each scenario;
construction impacts on existing facilities; risks related to the income stream under both scenarios; parking
impacts/requirements; and other such issues.
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The team which can best serve the needs of the City of El Segundo in assessing the relevant issues and
providing unbiased and realistic recommendations for the City will possess a number of qualities, which we
are extremely confident that the team of Pro Forma Advisors and Casey O'Callaghan Goff Design offers:
• Each of the team members is involved with the day -to -day California golf industry.
• The team has extensive experience with providing very similar services to those required for this
assignment.
• The experience of the individuals assigned to the project - -Gene Krekorian and Casey O'Callaghan - -is
critically important. Each has extensive direct experience in their area of expertise (Mr. Krekorian over 35
years and Mr. O'Callaghan over 20 years direct experience).
• The team members understand the Southern California golf market dynamics and, more importantly, the
Los Angeles County South Bay golf market.
• Each of the team members is headquartered in Southern California, providing easy and frequent access to
the subject site and contact with City representatives.
• Pro Forma Advisors' principals have represented over 80 California public agencies on golf related issues,
and fully understand the public sector environment.
• The team has ready access to other disciplines located in California, such as irrigation specialists,
environmentalists, golf course construction contractors, golf course professional management companies
and others, which can provide input as needed.
• Lastly, and perhaps most importantly, the team members are committed to providing the most efficient and
effective services to the City of El Segundo. The combination of the skills, experience and dedication of
the individuals assigned to this high profile assignment will ensure the needs of the City are fully satisfied.
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Pro Forma Advisors is a diversified consulting firm founded in 2008 which provides a wide range of research
services in economics, finance, and market analysis. The four founding principals were senior partners at
Economics Research Associates (ERA), one of the established and most experienced commercial recreation
economic consulting firms in the country since its founding in 1958. ERA was acquired by AECOM in 2008
and incorporated in AECOM's planning and economics division. Pro Forma Advisors has carried on the
commercial recreation practice, providing the same services and dedication to quality and client service ERA
provided for over 50 years. The company website is
Pro Forma Advisors' principals provide the most experienced golf economics consulting services in the
western United States. Pro Forma's clients include municipalities, other public agencies, public / private joint
ventures, private developers, financial institutions, and golf course operators. Pro Forma's assignments in the
golf industry include market evaluations, financial analysis, management / operational audits, clubhouse
evaluations, appraisals, and evaluations of facility lease arrangements.
Importantly, Pro Forma Advisors is a fully independent consulting firm with no other business lines such as
brokerage, management, ownership, or association /affiliation with industry groups which would bias or
prejudice the firm in any way. Goff advisory services offered include:
Site Evaluation and Selection; Analysis of Market Feasibility; Financial Feasibility; Analysis of Finan-
cial Options; Operations Analysis; Analysis of Lease Arrangements; Developer /Operation Negotia-
tions; Valuation/Appraisal.
The principals at Pro Forma Advisors have conducted well over 100 golf- related assignments in the State of
California over the past 10 to 15 years. Pro Forma Advisors' golf advisory practice is heavily oriented to rep-
resenting public entities, with the principals providing services to over 70 municipalities throughout the west-
ern U.S. region.
The principals at Pro Forma Advisors have conducted numerous golf course operations audits and business
plan assignments for the West Coast public agencies, including the following:
1. City of Costa Mesa (Costa Mesa Country Club)
2. City of Santa Barbara (Santa Barbara Muni, Twin Lakes)
3. City of Ventura (Olivas Links, Buenaventura)
4. City of Walnut Creek (Boundary Oak)
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5. City of San Jose (Los Lagos, San Jose Municipal, Rancho Del Pueblo)
6. City of Palo Alto (Palo Alto Municipal)
7. City of Los Angeles (Rancho Park, Griffith Park, Encino - Balboa)
8. City of Oxnard (River Ridge Goff Club)
9. City of Mountain View (Shoreline Goff Links)
10. City of Modesto (Modesto Muni, Dryden Park, Creekside)
11. City of Santa Cruz (Delaveaga)
12. City of Anaheim (Dad Miller, Anaheim Hills)
13. City of Reno /County of Washoe (Rosewood Lakes, Washoe, Sierra Sage, Wildcreek, Northgate)
14. City of Ontario (Whispering Lakes)
15. City of Indian Wells (Golf Resort at Indian Wells)
16. City of Oceanside (Oceanside Municipal)
17. City of Chula Vista (Chula Vista Municipal)
18. City of Kent, Washington (Riverbend)
19. City of Portland (Heron Lakes)
20. City of Seattle (Jefferson Park, Jackson Park, West Seattle)
As previously noted, Pro Forma Advisors' principals has represented over 70 California public agencies re-
garding golf issues. Exhibit 1 summarizes many of the public agencies represented.
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Exhibit 1 - Golf Course Advisory Services - Cali-
fornia Pubic Agencies
City of Carlsbad
City of Escondido
City of San Diego
Ramona Municipal Water District
Otay Water District
San Bernardino Water District
City of San Juan Capistrano
City of Anaheim
City of Santa Ana
City of Costa Mesa
County of Orange
City of Yorba Linda
University of California @ Irvine
City of Pico Rivera
City of Rancho Mirage
City of Santa Cruz
County of Los Angeles
City of Tustin
City of Indian Wells
City of Santa Barbara
City of Fillmore
City of Simi Valley
City of Ventura
City of Oxnard
City of Buelfton
City of Los Angeles
City of Rancho Palos Verdes
Palos Verdes School District
City of Long Beach
City of El Segundo
Los Angeles World Airports/LAX
City of Barstow
City of Orange
City of Oceanside
City of Chula Vista
City of San Diego
Los Angeles City Community College
City of Foster City
City of Pasadena
City of Arcadia
City of Montebello
City of Ontario
Cal Poly (Pomona) University
City of Santa Clarita
City of Santa Fe Springs
City of Lancaster
City of Concord
County of Sacramento
City of Antioch
City of Pleasanton
City of Modesto
City of San Francisco
City of Rohnert Park
City of Vallejo
Van Nuys Airport
Metropolitan Water District
Univ. of California @ Riverside
City of Norco
City of Indio
Cathedral City
City of Corona
City of La Quinta
City of West Covina
City of Susanville
City of Redding
City of Palo Alto
Stanford University
City of Walnut Creek
City of Turlock
Santa Clara County
Alameda County Fairgrounds
City of San Jose
Presidio Trust
City of Glendale
City of Santa Maria
City of Mountain View
City of Blythe
City of Goleta
City of Newark
City of Manteca
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Casey O'Callaghan Goff Course Design, Inc. is a full service golf course design firm located in Newport
Beach, California. The firm focuses solely on new and renovated golf course planning and construction,
Casey O'Callaghan Golf Course Design, Inc. provides comprehensive golf course design services that
include preliminary golf course routing studies, preliminary construction cost estimates, construction
document production, bid package preparation, specifications, contractor selection process, and con-
struction observation.
Casey O'Callaghan Goff Course Design, Inc. has designed and constructed over thirty golf courses since
1993. Three of the firm's recent projects have been recognized nationally. Arroyo Trabuco Golf Club in
Mission Viejo, California was named Top Ten Best New Public Courses for 2004 by Travel & Leisure Goff.
Indian Canyons Golf Resort has been ranked 28th in the United States in 2005, 2006, and 2007 by Golf
for Women (a subsidiary of Golf Digest). The firm's recent renovation of the Eisenhower Course at In-
dustry Hills Goff Club was voted 2010 Golf Course of the Year by the National Goff Course Owners As-
sociation and Top Five New Renovations for 2007 by Golf Digest.
Casey O'Callaghan Goff Course Design, Inc. takes a proactive approach to environmental consideration
and golf course design. The firm has successfully worked with the Army Corps of Engineers and other
regulatory agencies over the past fifteen years. The firm's golf courses are designed to ensure reduced
irrigated grass areas on the golf course, collect golf course runoff and direct it toward bio- filters so that
natural water courses are not contaminated, and to maximize native habitats surrounding the golf
course.
Casey O'Callaghan Golf Course Design, Inc. has done extensive work on golf course renovation in
Orange, Riverside, and San Bernardino Counties. The firm has designed Arroyo Trabuco Golf Club in
Mission Viejo, California, Indian Canyons Goff Resort in Palm Springs, California and Hidden Valley Golf
Club in Norco, California. The firm has done renovation work on Big Canyon Country Club, Santa Ana
Country Club, Mesa Verde Country Club, Monarch Beach Goff Course, San Juan Hills Goff Course,
SeaCliff Country Club, El Rancho Verde Goff Course, Paradise Knolls Goff Course, Jurupa Hills Goff
Course, Whispering Lakes Golf Course, Quail Ranch Goff Course, and San Dimas Canyon Golf Course.
Casey O'Callaghan Golf Course Design, Inc. has worked closely with the U.S. Army Corps of Engineers
on many of their golf course projects. Arroyo Trabuco Goff Club in Mission Viejo, California is
constructed along Trabuco Creek in the flood plain. The firm worked closely with the Army Corps of
Engineers and the project team to ensure that the golf course could accommodate additional flooding in
non play areas to reduce potential down stream flows.
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Casey O'Callaghan Goff Course Design, Inc. has completed assignments across the United States and
internationally. The focus of golf design, however, has been California golf courses. Representative golf
course design projects conducted in the State of California include:
Industry Hills Goff Courses, City of Industry, California
Arroyo Trabuco Goff Club, Mission Viejo, California
Indian Canyons Golf Club, Palm Springs, California
Hidden Valley Golf Club, Norco, California
The Ranch at Silver Creek Golf Course, San Jose, California
River Island Country Club, Porterville, California
Vintners Golf Club, Yountville, California
Victoria Goff Course, Carson, California
Quail Ranch Golf Club, Moreno Valley, California
Meadowview Golf Club, Temecula, California
Monarch Beach Goff Links, Dana Point, California
Santa Ana Country Club, Santa Ana, California
Big Canyon Country Club, Newport Beach, California
Lakewood Golf Club, Lakewood, California
Mesa Verde Country Club, Costa Mesa, California
MountainGate Country Club, Los Angeles, California
Navy Golf Course, Seal Beach, California
San Juan Hills Golf Club, San Juan Capistrano, California
Sea Cliff Country Club, Huntington Beach, California
Paradise Knolls Goff Course, Riverside, California
San Dimas Canyon Goff Course, San Dimas, California
Candlewood Country Club, Whittier, California
Wood Ranch Goff Club, Simi Valley, California
Recreation Park Goff Course, Long Beach, California
Meadow Lake Country Club, Escondido, California
Westlake Goff Course, Westlake, California
Costa Mesa Golf & Country Club, Costa Mesa, California
Green River Goff Course, Corona, California
Santa Anita Goff Course, Arcadia, California
Franklin Canyon Goff Course, Hercules, California
Loma Santa Fe Goff Course, Solana Beach, California
Whittier Narrows Goff Course, Rosemead, California
South Hills Country Club, Covina, California
Meadowlake Goff Course, Valley Center, California
Birch Hills Goff Course, Brea, California
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The scope of services is segmented into seven basic tasks. As part of the initial task included in the scope
of services, we recommend an orientation workshop. This workshop will allow initial inspection of the site,
meeting key stakeholders, and understanding clearly the City objectives and major issues, sensitivities and
constraints. The work scope can be refined and amended, if necessary, and the overall study strategy
reviewed or adjusted accordingly.
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• As appropriate, meet with representatives of the City of El Segundo /Community Groups/TopGoff in order
to gain a full understanding of the concepts, objectives, limitations, and other factors or considerations
which may influence the study approach
• Review the key issues relevant to the study and refine the work program as appropriate
• Obtain and review all planning and background materials pertaining to the course, including historical
operating performance, capital improvement plans, lease /concession agreements, planning documents
and the like
• Inspect the existing golf course and interview the golf operations manager, food and beverage manager,
and course superintendent
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• Review historical play levels by play category
• Document golfer profile (type of play, source of market, other). This also would involve, at a minimum, a zip
code analysis of golfers over a representative period of time
• Review financial revenue performance over the past 5 years by revenue department
• Analyze current staffing levels
• Review and analyze historical operating expenses
-- Direct operating expenses by department, including general and administrative
-- Indirect City administrative charges
- -City Enterprise Fund charges
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• Document the existing infrastructure and golf course features:
-- Irrigation system
-- Drainage
-- Greens
-- Greens surrounds
-- Tees
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-- Bunkers
-- Fairways and roughs
-- Landscape and trees
• Asses the current course layout and condition of existing improvements
• Evaluate support facilities (clubhouse, maintenance facility, practice range, cart storage, other)
• Assess current maintenance level and staffing
• Document the irrigation system in terms of irrigated turf areas, source of water, consumption, and cost
• Review near -, mid- and long -term capital improvement needs
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• Assess potential changes in fees, policies or practices which may result in increased operating revenues
• Review the potential for leasing the restaurant and/or pro shop operations
• Review operating expenses to identify potential efficiencies and cost reductions
• Evaluate the potential benefits of a facility lease
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• Appraise the existing facility as a fee - simple property based on its net operating income potential (the
market and cost approaches would not be employed)
• Appraise the golf course and clubhouse operation as a separate standalone facility
• Appraise the golf practice range lessons facilities as a separate standalone facility
Note that the appraisal would be conducted in conformance with USPAP standards
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• Review, and modify where appropriate, TopGolf revenue and expense projections
• Review the proposed agreement between the City of El Segundo and CenterCaVTopGolf and apply the
agreement terms to the revenue projections
• Examine upside profit participation given terms similar to those in TopGolf's agreement with Woodale,
Illinois
• Estimate operating expense responsibilities of the City (direct expenses, contract administration, Citywide
overhead assessments)
• Identify potential risks related to CenterCal's agreement and possible mitigation measures
• Estimate the market value of the property for the driving range and parking lot identified in the TopGolf
proposal, subject to the use restrictions and anticipated recreation entitlements
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. Quantify indirect revenues generated by the TopGolf project construction and operation (sales tax, utility
users tax, possessory interest tax, transient occupancy tax, license fees and other fiscal revenues)
accruing to the City
. Assess the potential long term impact on the City from the closure of The Lakes during the construction
period
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• Compare the net benefits of the CenterCaVTopGoff proposal with the continued operation of The Lakes as
it is currently configured (with required capital improvements to the existing facility)
o Compare the net benefits of the CenterCaVTopGoff proposal with the continued operation of The Lakes as
it is currently configured, assuming potential facility /operational enhancements are implemented
. Calculate the present value of the net benefits based on a 25 -year term, and other appropriate financial
measurements
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Pro Forma Advisors LLC and Casey O'Callaghan Golf Design will assign their most capable and experienced
staff to this assignment.
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Mr. Krekorian's role will be to serve as project manager, and will be directly involved with all aspects of this
study. Mr. Krekorian has been involved with all of the projects noted in the "experience and qualifications"
section of this proposal. Highlights of his qualifications are outlined below:
1 Principal Pro Forma Advisors LLC
Over 35 years golf course consulting experience
Major role in over 100 golf assignments over the past five years
1` Represented over 70 West Coast public agencies regarding golf issues
/ Authored a series of articles on the golf industry, a principal contributor to ULI's "Golf Course Devel-
opment and Real Estate, " and participated in numerous golf industry conferences
L" Extensive knowledge and work experience in California
"` California Certified General Real Estate Appraiser, specializing in golf course appraisal
L Conducted original feasibility study for The Lakes as part of process with Chevron's deeding of the
property to the City of El Segundo
A professional resume is attached.
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Casey O'Callaghan is the founder and President of Casey O'Callaghan Goff Course Design, Inc., a full service
golf course design firm located in Newport Beach, California. With over 20 years design and consulting ex-
perience, Mr. O'Callaghan focuses solely on new and renovated golf course planning and construction, and
provides comprehensive golf course design services that include preliminary golf course routing studies, pre-
liminary construction cost estimates, construction document production, bid package preparation, specifica-
tions, contractor selection process, and construction observation.
Mr. O'Callaghan has designed and constructed over thirty golf courses since 1993. He has done extensive
work on golf course renovation projects in Los Angeles, Orange, Riverside, and San Bernardino Counties.
The firm designed Arroyo Trabuco Goff Club in Mission Viejo, California, Indian Canyons Goff Resort in Palm
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Springs, California and Hidden Valley Golf Club in Norco, California. The firm has completed renovation work
on Big Canyon Country Club, Santa Ana Country Club, Mesa Verde Country Club, Monarch Beach Golf
Course, San Juan Hills Golf Course, SeaCliff Country Club, El Rancho Verde Goff Course, Paradise Knolls
Goff Course, Jurupa Hills Golf Course, Whispering Lakes Golf Course, Quail Ranch Golf Course, and San
Dimas Canyon Goff Course.
Casey O'Callaghan has worked closely with the U.S. Army Corps of Engineers on many of their golf
course projects. Arroyo Trabuco Goff Club in Mission Viejo, California is constructed along Trabuco
Creek in the flood plain. The firm worked closely with the Army Corps of Engineers and the project
team to ensure that the golf course could accommodate additional flooding in non play areas to reduce
potential down stream flows.
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Gene P. Krekorian, Principal
Mr. Krekorian is a skilled golf course consultant with more than 35 years experience in the industry. He has been involved
with various facets of the golf course industry including concept development, evaluation of market support for
municipal, daily fee, and private country clubs, operations audits, analysis of public golf course operating options,
analysis of financial performance, golf course valuation analysis, assessment of equity club conversion potential, and
analysis of various other golf- related issues. The following are representative assignments conducted by Mr. Krekorian
during tenure at multiple firms during his career.
Eeasib
Tustin Ranch Golf Club, Tustin, California (The Irvine Company)
Tijeras Creek Goff Club, Rancho Santa Margarita, California (Rancho Santa Margarita Company)
The Raven at Sabino Springs, Tucson, Arizona (Perini Land and Development)
Greyhawk Golf Club, Scottsdale, Arizona (Core North Associates)
Pelican Hill, Newport Coast, California (The Irvine Company)
Half Moon Bay Golf Links, Half Moon Bay, California (Ocean Colony Partners)
ii Robert Trent Jones Goff Club, Lake Manassas, Virginia (Robert Trent Jones Goff Club)
Shipyard /Port Royal Goff Club, Horseshoe Bay, Texas (Horseshoe Bay Development)
Wailea, Maui, Hawaii (Alexander & Baldwin)
City of Los Angeles Golf Division (13 courses), Los Angeles, California
P DeLaVeaga Golf Course, Santa Cruz, California (City of Santa Cruz)
Wildcreek, Northgate, Rosewood Lakes, Sierra Sage, Washow, Reno Nevada (City of Reno, Washoe County,
RSCVA)
Jefferson Park, Jackson Park, West Seattle, Seattle, Washington (City of Seattle)
Anaheim Hills Goff Course, Anaheim, California (City of Anaheim)
Sunriver Resort, Sunriver, Oregon (Connecticut Mutual)
Los Lagos Goff Course, Costa Mesa, California (City of Costa Mesa)
Semiahmoo Resort, Blaine, Washington (Lehman Bros)
Diablo Creek, Concord, California (City of Concord)
ii Olivas Links, Ventura, California (City of Ventura)
Irvine Ranch Long -term Goff Strategy, Irvine, California (The Irvine Company)
P The Woodlands Goff Development Strategy, Houston, Texas (The Woodlands Company)
o La Paloma Resort, Tucson, Arizona (La Paloma Development)
o Rancho Park/Encino- Balboa Goff Courses, Los Angeles, California (City of Los Angeles)
P, Ventana Canyon Resort, Tucson, Arizona (Estes Company)
As demonstrated by the above sampling of completed assignments, Mr. Krekorian is a skilled golf course analyst. Some
of the major clients he has served as consultant include The Irvine Company, The Woodlands Corporation, Connecticut
Mutual, Los Angeles Athletic Club, Sunrise Corporation, the Bixby Ranch Company, Pacific Mutual, Lowe Enterprises,
National Goff Properties, Cobblestone Goff Group and other private developers /operators. Public clients include the City
of Santa Barbara, Phoenix, Rancho Palos Verdes, Carlsbad, Santa Ana, County of Los Angeles, Escondido, Costa Mesa,
Ventura, Oxnard, Concord, and Boulder City.
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Mr. Krekorian received a B.A. degree in Mathematics and Economics from Pomona College and a M.S. degree ins
Business Economics from the University of California at Los Angeles. Mr. Krekorian is a Certified General Real Estate
Appraiser as licensed by the State of California.
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The following presents a brief summary of recently conducted major golf assignments in California, and re-
lated references for the projects.
County of Orange — Green River Golf Course
In the 2009 -2014 period, Mr. Krekorian represented the Orange County Flood Control District regarding a
series of issues involving Green River Goff Course. Increasing the height of El Prado Dam and other Santa
Ana River flood control improvements will alter the potential impact on the 36 -hole complex. The analysis
considered the number of supportable courses, market positioning, capital improvement and redesign is-
sues, and other related considerations.
Reference: Ms. Merrie Weinstock, Project Manager — Green River
County of Orange
300 North Flower Street
Santa Ana, California 92703
714.834.5779
County of Los Angeles
Pro Forma Advisors recently completed an assignment for the County of Los Angeles relative to two of its
18 -hole courses -- Marshall Canyon Golf Course in La Verne and the Links at Victoria in Carson. The analysis
was focused on capital improvement needs and their impact on performance. The analysis also was in-
tended to determine supportable rent structure at each facility
Reference: Mr. Jorge Badel
Goff Operations Manager
County of Los Angeles
Parks and Recreation Department
405 South Santa Anita Avenue
Arcadia, CA 91006
Tel: 626.821.4649
City of Santa Barbara- -Santa Barbara Golf Club
Pro Forma Advisors recently completed an assignment for the City of Santa Barbara regarding golf market
conditions, capital improvement needs, current operating performance, performance enhancement, and op-
erating options for the City.
Reference: Ms. Nancy Rapp
Director of Parks and Recreation
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City of Santa Barbara
620 Laguna Street
Santa Barbara, CA 93102
Tel: 805.564 -5418
City of Mountain View -- Shoreline Golf Course
Pro Forma Advisors currently is assisting the City of Mountain View in evaluating operating options for the
City's Shoreline Golf Links. Operating options have been identified and evaluated in terms of economic and
non - economic factors, and Pro Forma Advisors has assisted the City in the process of selecting an outside
professional management group if the City elects to change its current operating structure.
Reference: Ms. Rochelle Kiner
Community Services Director
City of Mountain View
Department of Community Services
500 Castro Street
Mountain View, CA 94039
Tel: 650.903.6331
City of Ventura — Links at Olivas Park
In 2014, Gene Krekorian conducted a comprehensive review of the City of Ventura golf course system, con-
sisting of the Links at Olivas Park and Buenaventura Goff Course. The analysis included a review of perform-
ance, golf market conditions, capital improvement requirements, and operating options. The City, with assis-
tance of the consultant, selected a new operator for the golf courses.
Reference: Mr. Eric Burton, Community Services Supervisor
City of Ventura
Project Manager
501 Poll Street
Ventura, California 93002
805.658.4738
City of Walnut Creek — Boundary Oak Golf Course
In 2008, Mr. Krekorian (then employed with Economics Research Associates) conducted a comprehensive
operational audit and complete analysis of golf course redesign opportunities at the City of Walnut Creek's
Boundary Oak Goff Course. The study analyzed historical operations, conducted a complete assessment of
the golf market, identified revenue enhancement opportunities, evaluated capital improvement alternatives,
and examined operating options. Mr. Krekorian subsequently represented the City in the RFP process and
selection of a golf course management company to oversee redesign and continuing operation of the
course.
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Reference: Ms. Jackye Harbert, City Manager's Office
City of Walnut Creek
1666 N. Main Street
Walnut Creek, California 94596
925.943.5850
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The professional hours budgeted by primary work task are summarized in Exhibit 2.
A time schedule by task is presented in Exhibit 3. The schedule includes the time duration of each major
task and sequential relationship among tasks, as well as key milestones, meetings, and report submittals.
This time schedule is consistent with the City's deadlines for completion of the project by April 2015.
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Pro Forma
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Exhibit 3: The Lakes /TopGolf Schedule/ Milestones
Week
Task 1 2 3 4 S 6 7 8 9
1. Orientation /Stakeholder Interviews now
2. Historical Opeating Performance
4Norkshop /Meeting
Pratt Report I
final Report
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Pro Forma Advisors LLC proposes to conduct the assignment on a time and expenses basis, with a
maximum not -to- exceed budget of $19,960. The maximum budget is based on the proposed professional
time outlined in Exhibit 2 above, yielding the budget by task shown in Exhibit 4.
Mr. Krekorian's hourly billing rate is $165, and Mr. O'Callaghan's hourly billing rate is $165.
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l
Professional
...
Orientation /Stakeholder Interviews
$2,640.00
Historical Operating Performance
1,980.00
Current Facility Conditions
2,640.00
Revenue Enhancement/Expense Reduction
...
I
1,320.00 l
Golf Facility Appraisal
2,640.00
TopGolf Concept Evaluation
3,300.00
Comparative Assessment
(
1,980.00 l
Meetings/Workshops
J
1,320.00
Report Preparation /Attendance City Council
1.980.00
SubTotal Professional Fees
$19,800.00
Reimbursable Travel Expenses-
110.00
Reproduction and Other Out -of- Pocket
90.00 j
Total
$19,960.00 ]
Mr. Krekorian's hourly billing rate is $165, and Mr. O'Callaghan's hourly billing rate is $165.
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