Cook County Board President John Stroger recommended Tuesday that a Virginia company take over management of the Forest Preserve District’s golf courses in a deal officials hope will bring in millions of dollars to the cash-strapped district.
Stroger, shaking off doubters who said he wouldn’t privatize the 10 courses that employ roughly 200 workers, said he expected the new managers would take over the county operation by next spring.
“It will be better for the county because we will be getting a net [income], whereas before we provided good services but always ended up … in the red,” Stroger said after Tuesday’s meeting, where the proposal was presented.
Two companies submitted proposals to run the courses, Billy Casper Golf of Vienna, Va., and Kemper Sports Management of Northbrook. Kemper currently runs golf courses owned by the Chicago Park District.
According to figures presented Tuesday to the County Board Tuesday, the package offered by Billy Casper Golf, co-founded in 1989 by the golf legend, promised more revenue to the district than the one from Kemper.
In the first full year of a five-year contract, the firm would pay a base fee of $350,000 to the district, provide an estimated $255,000 in revenue sharing based upon receipts and make $250,000 worth of capital improvements.
In the fifth year, under the Casper contract, the district would receive $1.5 million.
Kemper promised to pay the district $1.2 million by the fifth year. Kemper officials declined to comment Tuesday.
The projected revenues estimated by both companies factor in a $1 per year increase in greens fees. The estimated gross revenue from the golf courses for 2003 is $7.75 million. Last year, total revenue was $6.57 million.
Each company submitted 5- and 10-year proposals with and without alcohol sales. A new state law allows alcohol sales on forest preserve golf courses, although commissioners have not yet decided to permit the sales.
An outside study released last year said the district’s golf courses lost an average of $4.16 for each round of golf played in 2000.
Forest Preserve District Supt. Joseph Nevius said Tuesday that with recent fee increases, job cutbacks and other changes, the golf courses are breaking even.
Under the new management proposal, current employees will be interviewed by the outside company, but they will not be guaranteed a job.
Dan Stefanski, secretary-treasurer for Teamsters Local 726, which represents most of the golf-course workers, said many of the employees will not work for the new company because they’ll likely receive less pay, fewer benefits and won’t be part of the pension system.
Stefanski said workers are being made to pay for years of mistakes by management and poor oversight by elected officials.
A county spokeswoman said Stroger is sensitive to the union’s concerns and will continue talking with its members. Nevius estimated that about two dozen employees would be eligible for an early retirement incentive program recently approved by the state legislature.
