TOWN COUNCIL
  JAMESTOWN, RHODE ISLAND

  Golf Course Work Session

  September 30, 1996

A work session of the Jamestown Town Council was called to order at the
Jamestown Philomenian Library, 26 North Road, at 7:40 PM by Councilor Mark
E. Liberati (as selected by consensus). The following members were
present:
  Richard A. Hines
  Steven M. McInnis

(Absent: Council President Fred F. Pease and Councilor Paul A. Robertson)

Also present were:
  Frances H. Shocket, Town Administrator
  Theresa C. Donovan, CMC, Town Clerk
  Steven J. Goslee, Public Works Director
  Mark Browning, Town Planner
  James A. Donnelly, Esq., Town Solicitor

As well as Golf Course Committee members James Bryer, Anthony Faria,
Robert Holmes and William Murphy (Councilors Hines and McInnis, the Town
Planner and Town Administrator are also members).
     (Absent: Paul McDermott, Dale Buckey and Michael Smith.)

Councilor Hines, who also served as chair of the committee, introduced the
members present and identified the study process used by the committee; he
said an appraisal had since been obtained that valued the golf course
property between $500,000 and $1 million; on August 13, the committee
submitted its recommendation to the Council: that the course should remain
a leased operation for the following reasons and upon the following terms:
  *  The Town does not have the historical data to justify the risk of
Town operation
  *  The Town should retain long term control
  *  The lease should be on a percentage basis; i.e. a minimum amount plus
a percent of the gross or rounds played
  *  The lease should address capital improvements to the course,
including the irrigation system
  *  The lease should be for a period of at least five years with an
optional five year renewal
  *  Any options to extend should contain a rent reopener
  *  The lease should be structured to allow review of the books, no later
than the third year
  *  An appraisal should be obtained against which to test/measure lease
proposals or alternative options
  *  The lease should be non-transferable
  *  Proposals may include or exclude the upstairs restaurant
  *  The Town should reserve the right to reject any and all bids
  *  The Town should establish a standing golf course committee upon
execution of the new lease to review issues, monitor developments and
maintain documentation

Councilor McInnis: The structure of the lease should be changed; it is now
a flat amount per year with increases based upon the consumer price index;
we do not know the gross revenues or expenses of the current operation; we
suggest leasing for a base rent, then some type of overage; the operator
would have to disclose operating information; that would give us a better
idea of what our asset is actually producing by the end of the lease term;
we currently have no historical base; in fact, that limited this committee
in any informed consideration of the option of the Town assuming
management of the course; regarding food and beverage service, there are
currently two operations on the premises with two liquor licenses.
     Mr. Murphy: The committee discussed the food and golf operations, but
did not want to limit the RFP to one or the other; there is latitude
there.

Councilor Hines: The irrigation system to the fairways must be included in
the structure of the new lease.
     Ms. Shocket: Council is scheduled to make a formal vote during its
next regular meeting on October 15 to go out to bid; we then need to
finalize the RFP and get it out by the end of October.
     Councilor Liberati: The request for proposals (RFP) will be public.
     Councilor Hines: The committee completed its charge a little better
than a month ahead of schedule; the RFP will be publicly advertised; the
current annual income is just over $30,000, but that amount does not cover
the Town's debt service on the property.
     Councilor Liberati: When the Town purchased the golf course, it did
so to prevent development of the land into house lots; consequently, we
paid too much money, but achieved the goal of preserving the land as open
space.

Maryanne Crawford, Finance Director, arrived at 8:10 PM.

Several people spoke in favor of the current golf course lessees (Joseph
and Harriet Mistowski dba New England Golf Course Management, Inc.), and
giving them a bidding advantage or simply renewing the lease with them
with new terms, but without putting it out to public bid.
     The Council indicated that it would be put out to bid, and bidders
would be free to bid on the golf course operation with or without the
restaurant.
     An audience member suggested that the form of the RFP be published
ahead of time for public comment.

There being no further requests to comment, the work session was
informally adjourned at 8:20 PM.

Attest:

Theresa C. Donovan, CMC
Town Clerk

cc:  Town Council Members (5)
  Town Administrator
  Town Solicitor
  Administrative Circulation