SHIP Sterling Hills Improvement Plan - A Plan for: Permanently Preserving a Championship Golf - Sterling Hills Golf Club

SHIP
Sterling Hills Improvement Plan

                 A Plan for:
• Permanently Preserving a Championship Golf
           Course at Sterling Hills

SHIP
            This Evening’s Agenda - 11/2 Hours
• Presentation and Introductions by Zaruka Family.
• Introduction and Presentation by Forrest Richardson.
• Table Meetings to develop community Amenity “Wish” list and to
  present questions.
• Questions and Comments.
• Closing

History
•   Original Plan – Build it and they will come.
•   Country club for a day.
•   Builders out – Golf operator in.
•   Golf business starts to decline.
•   Tom Park purchases course and course declines
•   Zaruka family assumes food and beverage management
•   Zaruka Family buys course as family Legacy to maintain food
    and beverage and keep championship golf course in Camarillo

Golf Business Today

• National, California, Local Trends
   •   205 golf courses closed in 2017 nationwide
   •   15 golf courses opened in 2017 nationwide
   •   68 courses in California have closed in the past 5 years
   •   30 courses in Southern CA closed since 2010
• Negative Demographics – Fewer Rounds Played and fewer millennials
  entering the sport
• Fierce competition for fewer players
• 6 golf courses within 15 minute drive of Sterling Hills
• Peak pre 2008 - Sterling 50,000 Rounds @ $40
• 2017 – Sterling 38,000 Rounds @ $31 – nearly 25% drop in rounds
• 2017 – Sterling 40% drop in revenue from 2008-2017
• Source: National Golf Foundation & Sterling Hills

Why We Bought Sterling Hills

• Family Legacy – Local Roots
• Passion for golf and Sterling Hills golf club
• Maintain food and beverage for our Wedgewood Wedding Company
  (ZGOLF F&B)
• Maintain & Operate championship golf course that serves the
  public and surrounding homeowners
• Preserve public golf for Camarillo

Financial Realities
•   Our efforts and challenges since assuming ownership
•   Facing significant national headwinds
•   Increasing Costs (minimum wage, water, etc.)
•   Water Restrictions
•   Deferred Maintenance Mounting
•   Servicing Debt
•   Revenue is down 40% between 2008-2017

Current and Future Sustainability requires funds to eliminate debt and
                   improve the course conditions.

How do we preserve golf and maintain
             property value?

• Renovate and Invest in Golf Course - Maintaining
   a Championship Layout that appeals to a broad
      spectrum of the golf community and future
                          golfers.
    • Eliminate debt on the golf course to ensure
        financial stability for decades to come.
    • This can be achieved by adding a small
  development on a highly limited area -- 15% of
  the golf course – in areas where it affects the
            current residents the least.

Objectives of Plan

  • Provide a “New” more playable Golf Course that appeals to a wider
       variety of golfers and will be much more visually appealing.

• Have a Debt Free Golf Operation that is financially stable for decades to
                                  come.

• Avoid possible closure or sale of the course via binding legal document –
                     create stability for the community.

• Provide new amenities for all Sterling residents.

Potential Golf Course Renovations

• Contract with Award Winning GC Architect (Richardson) who understands
  our market (Olivas Links & Buenaventura)
• Maintain Championship Size (Par 70-71)
• Make Course More Playable for Women, Juniors, Seniors and the Average
  Golfer while maintaining championship length for low handicappers.
• Convert Fairway Grass to Kikuyu to create greener fairways year round.
• Convert waste areas to water saving desert scapes.

We will create renderings for the golf and want SH and golf
community input in all phases of design. Workshops, focus groups etc.
will be held.

Potential Resident Benefits
• Require Property to be Golf Course or Open Space forever (Put into the
  appropriate legal document) – no future development EVER
• Expand current resident backyards by 30 ft with easement or deed on as many
  lots as possible.
• New development on only 20 of the 220 acres of the property, most likely along
  Beardsley. Exact location will be determined by feasibility and with community
  input.
• Reduction in Association dues paid to Master Association. (New homeowners
  will pick up the cost of Beardsley maintenance).
• Reduced HOA fees as a result of new residents/homeowners.
• Better Views of the Golf Course. Greener and landscaped better.
• Possible new amenities desired by the community such as a Pickle Ball Court.
• New community park area for kids and families.
• No sale, closure or foreclosure – no uncertainty of working with investor group
  or new owners who may try and develop a lot more than 15% of the course.

Current owners committed to
local community
• Zaruka Family History:
     •   Successful Entrepreneurs – Creating the Wedgewood Brand.
     •   Award winning for service to the community.
     •   3 time Rotarian of the Year Award.
     •   Original 25 over 50 Award – Star Free Press
     •   SBA – Small Business of the Year.
     •   Ventura Boys & Girls Club Community Leader of the Year.
     •   Acorn Top Ten Community Impact Leaders in Camarillo.
•   Contributions to Many Charities and Organizations.
•   Camarillo Residents for 20 Years.
•   John, Linda and Stacy are regularly on site.
•   Lee Harlow, well known and respected, long time Ventura County golf
    manager/pro will be on site for the foreseeable future.

Alternative Scenario?

                                  ?
THIS CAN BE AVOIDED
If we can work together to create a financially sustainable future.

Potential Business Partner

• We will look to find a builder partner that is:
  • Committed to listening to residents
  • Well respected in Camarillo.
  • Has experience in redevelopment of Golf Course
    property.
  • Work experience in Ventura County

Forrest Richardson, Golf Course Architect

• Olivas Park & Buenaventura
• Development Examples – Positive & Negative

Goals:

           • Preserve the golf course
           • Accommodate responsible infill development
            • Enhance the golf course
... add forward tees, eliminate & renovate bunkers and improve drainage
              • Enhance the landscaping
           • Correct deferred maintenance
           • Create a sustainable financial model

Sample Development Illustrations

• Meetings with golf groups and interested
  residents to determine best routing.
• Developer will work with residents to
  come up with the best 20 acres to develop
  with the least impact on the current
  neighborhoods.

Next Steps

•We hope to gain your support to
 move this SHIP forward and contract
 with a development partner.
We Welcome Your Input throughout
            the Process!

Ship Ahoy!
 Let’s Work Together!
Web site: sterlinghillsgolf.com/ship
email: ship@sterlinghillsgolf.com