Now that the annual financials were just released (ended in April 2010 but released this week), we took a look at analyzing the golf course revenues.
Just to review some old stories, the Golf Course opened in 2002 and has not only lost the residents millions of dollars in revenues, it has been unable to pay back the over $40 Mil of whopping debt we incurred to build the LARGEST public golf course in the State of Illinois!
Most residents still ponder the decision of why we needed this monstrosity, while others claim it is because the Mayor wanted his own personal drinking hole. Since last year, the Mayor has alleged that he has sworn off the second office in this Golf Club.
A few months back we covered the story of this golf club and the private hot tubs, three saunas within 50 feet of each other and the private lockers (One tagged with Mayor Claars wife's name). We posted pictures (see past article under archive).
So how is this monstrosity doing to alleviate our extreme tax burdens this year? We are glad you asked.
According to the 2010 just released financials, the Golf Course lost over a half a million dollars in one year.... again. You do the math.
Customer Receipts were $7,056,180
Payment to Suppliers were $3,877,511
Payment to Employees were $2,940,701
Interest payment on debt was $0
Principle payment on debt $0
Lease payments $91,228
Total losses were claimed at - $527,870
Labor was over 40%!!! (Common industry practice is labor between 17% and 20%.). If labor was only 20% we would have made $1 Million dollars!
Yet we keep hiring this management company on a year by year contract, we don't bid out for other contracts and we pay them a whopping $ per year! According to the 2010 financials... grab your seat, Kemper Management received $2,455,311.29 in one year!
I bet I could get managers to run that company for less than $300K a year and save our money! By all means, it is a banquet hall, restaurant, and golf center. How hard is that to hire three GM's, and one Director?!!! How hard can it be to control inventory and labor? I can tell you whenever I have been there to take pictures or visit, there is way too much labor standing around, hanging out, and chatting away NOT helping the customers!
What is the reason that Mayor Claar is still using this golf club management company? There has to be a reason for this... we need to investigate this.
Well we keep making mistake after mistake on this property. (By "we" I mean the tax payers that do not vote out the incumbents and Mayor and allow them to continuously make bad decisions).
As a tax paying resident, I think that the Management company, the Trustees, and Mayor get a two thumbs down for their ongoing failure on this one.
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