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HASTINGS AREA CHAMMER OF COMMERCE & TOURISM BUREAU 00000 on the Mississippi Date: August 15, 2000 To: Mayor Mike Werner and City Council Members From: Hastings Area Chamber of Commerce's Board of Directors Re: Proposed Municipal Golf Course My name is Peggy Johnson and I am the Chair of the Board for the Hastings Area Chamber of Commerce and Tourism Bureau. I want to thank you for allowing the Chamber to share the results of a survey conducted in mid May of 2000. The Hastings Area Chamber of Commerce asked 500 area business owners and managers what their feelings were about the possibility of a municipal golf course in Hastings. There was a 24% response rate to the survey,which represents approximately 120 businesses. Of those responding, 65%were opposed to the idea of a municipal golf course. The primary reasons given were the belief that the City should not compete with private enterprise and that there is an adequate number of golf courses in the area. Other concerns raised were the use of Industrial Park land for a golf course and whether the feasibility study that was conducted for the City was accurate. While 13% responded "no opinion,' comments included the need for more information, concern over saturation of golf courses, opposition to the cost of$40 per round and a preference toward seeing industrial land used to promote and support business development and to expand the tax base. Comments among the 20%who were in support of the course included five who would support it if it were lower cost or a beginner course and others who felt it was a clean industry and could bring people to town. The final 2% did not indicate their support, opposition or opinion, but provided general comments similar to others listed above. While the Chamber can appreciate that a municipal golf course could be a financial resource for the City, it could also be a financial liability. The challenges that the Golf Course Capacity and Feasibility Study Review present to the study conducted by THK are very concerning. With the omission of four 18 hole courses and one 27 hole course, there is concern over the real demand for another golf course in the Hastings Area. The Chamber is concerned that while using the land for a golf course instead of industrial development may provide revenue for the City of Hastings, that land will not generate income for School District#200 or Dakota County. If the land were used for industrial development,those industries would share a portion of the tax burden with existing businesses. Building homes around a golf course in the Industrial Park would not be a tax benefit, because providing public services to homes is more costly than providing services to commercial/industrial properties. We thank the City for their efforts to thoroughly review the implications of using this land for a golf course. It is our hope that the City Council looks at the future potential for business development within Hastings when making their decision. I thank you for hearing our concerns. 111 East Third Street•Hastings, MN 55033-1211 • Phone Toll Free (888) 612-6122•(651)437-6775• Fax(651) 437-2697 ® printed on recycled paper