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M M <br />Commissioner Scurlock advised that recently the Finance <br />Advisory was asked to consider the financial feasibility of <br />expanding the course by another 9 or 18 holes, and perhaps making <br />some improvements to the clubhouse. Through that analysis, we <br />have looked at the revenue stream of the existing situation and <br />we find it marginal. It is marginal because the golf course is <br />carrying its weight, but it is not carrying its weight in a big <br />way. If we lost a couple of greens or something major happened, <br />it would be a problem for us. The recommendation, which is in <br />letter form, indicated that things looked potentially good to <br />move ahead and start considering another 9 or 18 holes. From a <br />financial aspect, it is a bottom line of revenues coming in and <br />expenses going out. It is not a question of whether or not you <br />have memberships. The real question is do you displace $23.80 <br />golf during the winter time with $10.00 golf because you have a <br />membership, and have the net revenues drop and not be able to <br />cover your debt service, which is $238,000 a year, or cover your <br />operating expenses. From a financial standpoint, the fact is <br />that memberships a,t Sandridge would have to be significantly <br />higher than the $600 or $650 annual fee mentioned in the <br />newspaper article. To offset the revenues from the peak winter <br />months, you are talking about memberships in the $1200-$1500 <br />range, minimum. <br />Commissioner Bird felt somewhat bad that we don't all agree <br />on this particular subject, because many of the people here today <br />are great supporters of Sandridge and have been right from the <br />very beginning, especially Hal Djorup, who fought long and hard <br />to bring to the Board's attention the fact that we need a public <br />golf course and who also served on our initial golf course <br />feasibility study committee. The subject of memberships came up <br />almost from day one, and we had some disagreement even amongst <br />our own committee members. We hired the National Golf Foundation <br />to do a feasibility study, and their recommendion stated: <br />."Specifically, memberships, as such, should be avoided, as should <br />AUG1989 1 5 �00� F! FgUE.1,� <br />