June 3, 1999

To:Scarborough Community Council

From:Joe Halstead, Commissioner, Economic Development, Culture & Tourism

Subject:Tam Heather Country Club, Extension of Agreement

Ward 16 - Scarborough Highland Creek

Purpose:

To seek approval to extend the current interim agreement with the Tam Heather Country Club for the period July 1, 1999 to April 28, 2000.

Recommendations:

It is recommended that:

(1)the current interim agreement with the Tam Heather Country Club be extended from July 1, 1999 to April 28, 2000;

(2)a detailed review of the existing agreement be undertaken prior to the expiry of the initial four (4) year term on April 28, 2000;

(3)the financial report for the 1998-1999 season be reported to Council in October 1999; and

(4)staff continue to work with and monitor financial results of the Club and review all long term implications for this partnership to succeed.

Council Reference/Background/History:

The former City of Scarborough acquired the Tam Heather Country Club in 1994 and have been operating the facility in partnership with the Club since that date under the authority of an "interim operating agreement" which directs that the Club be responsible for the operating costs of the facility.

The operating agreement has been renewed on a year-to-year basis and expires June 30, 1999.

The initial four (4) year term expires on April 28, 2000.

Comments and /or Discussion and/or Justification:

The Club entered into the 1998-1999 season with a previous year operating deficit of $5,679.00.

Preliminary year end results indicate that the Club will report an operating deficit of $4,504.00 for the year ending April 30, 1999. This amount needs to be audited and full details will be reported to Council in October 1999.

In addition, the agreement further requires that an amount of $15,000.00 be set aside each year as a "reserve account" for future plant maintenance. The 1998-99 season will be the fifth season in a row in which the Club could not provide an annual contribution for such a purpose.

The Board of Directors of the Club have presented a 1999-2000 budget which reflects appropriate actions to operate the facility on a break-even basis. Staff are working with the Club to explore options that will help reduce the deficit and meet their obligations for contributions to the reserve account. However, it is unlikely that sufficient operating dollars will be available to make a contribution to the reserve account. New initiatives will need to be undertaken if this committment is to be met.

Conclusions:

The Board of Directors of the Club is working very hard to satisfy the terms of the agreement and has presented a 1999-2000 budget which reflects appropriate actions to continue to operate the facility on a break-even basis. Staff will continue to monitor the financial results and will review all long term implications for this partnership to succeed.

Contact Name:

Margaret Crosby

396-4355

Joe Halstead

Commissioner Economic Development, Culture & Tourism