Cost Increases At Park Mini-golf
In 2005, Park Board staff proposed adding mini-golf to Lupient Water Park. The initial budget was $100,000 in construction cost and $80,000 in revenues a year - so a project that would be a money maker in two years! It hasn't worked out that way.
Project costs are up to at least $350,000 and revenue projections have been substantially lowered. The project was delayed and did not open summer 2008.
A history from documents is below.
The 2005 Park Board Superintendent's Recommended Budget included the enterprise goal: "Develop a mini golf center at Lupient Waterpark - investment of $100,000, annual income of $80,000; less than 2 year payback." (p 16)
Projected costs increased to $310,000 by April 25, 2007 per a memorandum to Park Board Commissioners from General Manager Don Siggelkow. Specifically:
"Estimated Construction Costs Course Construction $230,000 Lighting and fencing $ 30,000 Design/Project Management $ 25,000 Contingency $ 25,000 TOTAL $310,000"
At the same time, revenue projections fell:
"2008 Net Income Estimate $ 41,000 2009 Net Income Estimate $ 50,000 2010 Net Income Estimate $ 65,000 2011 Net Income Estimate $ 75,000 2012 Net Income Estimate $ 85,000"
By August 2007, the project budget was revised downward to $261,600 per GM Don Siggelkow memorandum to the MPRB Board:
"A service agreement with Herfort/Norby Golf Course Architects is attached for your approval. The agreement is for $11,600 in design, plan specifications and construction oversight for the miniature golf course at Lupient Water Park. The project budget will be $200,000 for the golf course and up to $50,000 for other improvements such as fencing, lighting, pathways and landscaping adjacent to the miniature golf course. Funds are budgeted in the 2007 Enterprise capital improvements fund for the project."
The MPRB Board approved the architect's contract at the Sept 4 2007 meeting.
The landscaping work commenced in November 2007 per an MPRB press release dated Nov 13 2007. On August 6, 2008, the MPRB Commissioners approved a Phase I construction contract of $197,487. Total construction cost was estimated at $340,000 per the staff report. This does not appear to include Design/Project Management and, it is not clear if this includes the 2007 landscaping work.
FYI,
Shawne FitzGerald