Source: Reno Gazette-Journal
Six public golf courses in the Truckee Meadows combined to produce a net operating loss of $424,000 in fiscal 2004, according to an audit of the facilities commissioned by the three entities that own them - the Reno-Sparks Convention & Visitors Authority, Washoe County and the city of Reno.
The audit, performed by Economic Research Associates, cost $70,000, split evenly among the three entities. Its main purpose was to determine if consolidating the courses under one owner or operator would make them more efficient, or even profitable.
Its findings are not surprising, RSCVA officials said.
"Basically, they all lose money," said RSCVA Board Chairman David Miller. "It's no stretch to say that. But there may be some safety in numbers, giving control of them to one of those three parties or putting a third party in charge."
ERA said consolidation of the six courses to a single operating entity "offers substantial economic benefits," because the courses are in need of extensive capital improvements and it's not currently possible to increase fees to generate more revenue.
"While there are no prominent examples for consolidation of public golf courses involving multiple public jurisdictions, the benefits of consolidation are well documented in the private sector," the report states.
Among the benefits are cross-marketing possibilities and administrative streamlining.
Consolidating would allow the owner to specialize in golf-course management, which would likely improve the courses' condition and service.Representatives of the RSCVA, the city of Reno and Washoe County will meet Feb. 16 to discuss the audit and any possible next steps. The meeting, at a location to be determined, will be at 1:30 p.m.