Orangetown Council To Vote on Management Deal for Broadacres

The Orangetown Council's search for a private entity to manage Broadacres Golf Course led to a negotiation with AppliedGolf, a New Jersey company with a track record of improving the financial performance of existing golf courses.

AppliedGolf President Dave Wasenda spoke to the Orangetown Council during last week's workshop, answering questions regarding what his company can do to improve the finances of a golf course that has been a source of annual debt for the town. He spoke about marketing, corporate connections and bulk purchasing power as key advantages his company offers.

"We are well-suited for rebranding and repositioning golf courses that have been operating with the same model for a while," Wasenda said. "We have an internal marketing company that is completely separate from the regular company. The professionals on our staff have marketed golf courses and maintained golf courses for reasonable prices while upholding the quality."

The Town Board is expected to vote on a resolution approving a two-year contract with AppliedGolf to manage Broadacres beginning in 2014, with an option for 2016. 

Wasenda said that the ability to stabilize overhead is also an advantage AppliedGolf will bring to Broadacres. Because they purchase equipment for so many golf courses, they are able to get better prices.

"Specific to Broadacres, there will be a fixed expense program to operate the golf course," Wasenda said. "The town will not be liable for any overage in expenses. It is up to us to manage that properly. Through the regional aspect of our operations, buying power and corporate (relationships), we have fixed overhead. We feel that is a huge benefit we bring to the table."

Wasenda said they do not plan to raise prices to play Broadacres, in part because the first priority will be to keep existing customers.

"We did the analysis and thought the rates were very fair where they are," Wasenda said. "Our model is not to raise revenue just by raising prices. We want to make sure the existing customers are happy and attract new customers. It is much harder to get new golfers than to make the existing golfers happy."

Wasenda said they normally do not make major changes the first year, taking time to evaluate what works. They would speak with the town council about more changes for year two.  They may also keep some of the personnel currently working at Broadacers, including manager Joe Wrafter. Wasenda said they had not spoken with Wrafter yet because they did not feel it was appropriate before they had the contract. Councilman Tom Diviny said he felt Wrafter's presence was important to Broadacres.

"We would want him back for 2014," Wasenda said. "He would have to adapt to our style and we would have to adapt to his.

"We do have to make changes or this wouldn't work for us, either, but it would be more tweaks and business building than wholesale knock-the-building-down changes."

One point of discussion is capital expenses. AppliedGolf is recommending $25,000 per year.

"With the deferment on spending the last few years, we are worried about this catching up to us. We have $25,000 as our max barring catastrophic failures," Wasenda said. "If we want luxury spending over $25,000, it's on us."

The contract would allow the town an out if the property is otherwise developed. The land Broadacres occupies could be included in a larger development plan for the RPC property, a fact that the council members reminded Waseda of last week.

"I know the long-term is to sell the property and this is an exit strategy, but we look it as long term,w e are here to manage your asset as profitably as possible," Wasenda said. "We're stabilizing it for the long term because we're assuming (we will manage it) for the long term."