Five years after City Park embraced an ambitious overhaul of its storm-battered golf complex, officials are preparing to begin formal negotiations with the Bayou District Foundation, a New Orleans nonprofit group that wants to build and manage the proposed 18-hole championship course, clubhouse and driving range between Interstate 610 and Filmore Avenue.
The talks got the green light last month after the Bayou District bid received the top score among three submitted to the City Park Board of Commissioners. But Bob Becker, the park's chief executive officer, cautioned that there is no guarantee that a deal will be struck.
"The negotiations will determine if an acceptable contractual arrangement can be reached,'' Becker said, adding that the final decision will rest with the 36-member City Park board.
The Bayou District offer is valid through mid-May, though that date could be extended if both sides agree. Becker said a negotiating team that he will head will attempt to craft an agreement with Bayou District officials in the coming weeks.
Becker said a key issue will be how the foundation intends to close a $9 million gap in financing for the project, which has an estimated price tag of $24.5 million.
Money in hand
City Park has about $15.5 million in hand -- $5.9 million in FEMA reimbursements and $9.65 million from the state capital outlay program. Bayou District officials had hoped to raise $9 million in private money to cover the remaining costs, but their submittal lists less than $3 million in cash commitments that would be disbursed over a five-year period. The two other bidders offered no guaranteed money.
Bayou District officials declined to discuss their bid.
"We are pleased that our response scored the highest,'' spokesman J.T. Hannan said. "Since we are now in negotiations with the park, we don't feel it's appropriate to comment on any specific aspect of the proposal at this time.''
The nonprofit's proposal says if Bayou District is chosen, its partners will review the project "in greater detail'' to "ensure that the budget provides for all necessary costs and that there is sufficient funding available.''
The two losing proposals were submitted by the Virginia-based Billy Casper Management Group, which operates more than 100 venues coast to coast, including City Park's North Course; and Honours Golf Co. of Birmingham, Ala., which owns and runs courses across the Southeast.
51.6 out of 100
Using a 100-point scale, Bayou District got a score of 51.6 from an evaluation panel that included Becker, board Chairman Mike Marsiglia and two other board members. The Casper group was second with 38.2 points, followed by Honours with 30.8 points.
A summary prepared by Becker for the board said Bayou District's high score "does not mean'' the organization "responded to the RFP in every respect.'' Rather, Becker wrote, it shows that the response "was rated the best against the criteria of the three proposals which were submitted.''
In an interview, Becker said adequate financing will be a critical issue in the negotiations. If the Bayou District team cannot close the gap, he said the park would have to consider scrapping the state-of the-art course now on the table and using the money on hand for a more modest "repair and renovation'' project.
Becker said he doesn't think the park board would vote to seek new bids.
Mike Cutler, a vice president with Billy Casper Golf, said his firm determined that the best approach would be to use the park's money "and go build a fantastic 18-hole golf course'' to compliment the existing North Course and then renovate the driving range.
"If someone is promising them $9 million and has the $9 million up front, then more power to them,'' Cutler said. "But I will say this: If someone doesn't have the $9 million and they are going to go and undertake this project without having the $9 million in place with hopes that they will find funding or something will happen, that seems awfully reckless."
The Honours Golf Co. did not respond to requests for comment.
40-year contract sought
Bayou District is seeking a 40-year contract, which its principals said would provide sufficient time to amortize their contribution. During that period, the foundation would get 40 percent of the profits from golf operations.
The group also wants a management fee of 4 percent of gross operating revenue. However, the proposal pledges to donate 3 percent of the fee to City Park. A similar arrangement is suggested for management of the North Course and the driving range.
The bid document estimates that the Bayou District contribution would be $125,000 in the agreement's first year and more in subsequent years.
The foundation lists a five-member board of directors in its proposal.
Developer Gerard Barousse Jr. is the group's chairman. The directors are Brian Cheramie, a former oil and gas executive; John Davies, the president of the Baton Rouge Area Foundation since 1988; Mike Rodrigue, an insurance executive and the owner of the Acme Oyster House chain; and venture capitalist Gary Solomon.
More than golf
Besides the golf-related improvements, Bayou District wants to redesign the park's lagoon system to help protect the surrounding neighborhoods from flooding. The group wants to link park recreation programs to an ongoing restoration of the St. Bernard public housing development and hopes to tap golf revenue to pay for social services at the complex.
Golf activities, traditionally a major source of revenue for the cash-strapped park, had been mothballed because of damage from Hurricane Katrina until September when the North Course reopened.
But park officials have been wrestling since the storm with the idea of replacing the ruined east and west golf courses with a complex worthy of hosting professional tournaments.
In May 2009, the park board voted unanimously to add a redevelopment of the golf complex to its master plan. Board members also agreed to shelve the project's $22 million second phase, which included plans for a second 18-hole course, a nine-hole par-3 course and a First Tee teaching facility.
The golf project has come under fire from some segments of the community who favor continued use of the shuttered courses as green space, dog paths and recreation areas.
Park officials have countered that they have addressed those concerns by adding a bicycle path between Filmore and Harrison and allowing the former South Course to remain closed and used for green space.
Staff writer Nakia Hogan contributed to this story. Frank Donze can be reached at fdonze@timespicayune.com or 504.826.3328.
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