Update on the #Sale of the Chamisa Hills Golf and Country Club

(this is a copy of an email sent out by Councilor Scott to the constituents on his email list regarding the Chamisa Hills Golf and Country Club)

"I was notified by the City Manager that Michael Schumacher of BIZDOCS,
due to a variety of reasons given in the text of his email (shown
below), is not moving forward with the proposed purchase of the Chamisa
Hills Country Club. The City Manager has communicated to Mr. Schumacher
that should he wish to reconsider his proposed purchase of the CHCC, the
staff will be glad to work with him regarding his plans for the
revitalization of this facility.

In addition, I am still very supportive of his plans and will do
everything in my power to assist in efforts to preserve the golf course
and make the business viable.

As a note of clarification, the city cannot make "offers" to a private
business. The City can only respond to proposals made. This is
important as I have been asked a number of times "what has the city
offered." There are anti-donation laws that have to be followed when it
comes to private property and private business. The City can only
respond to what is presented. When I was asked why a special rate was
not offered to the current owner, the answer is, he never asked for one.
The current owner to my knowledge has never engaged the City Manager or
submitted any proposal. In addition, the current owner has been and will
continue to get until next June the same rate on recycled water he has
for years with poor results.

As noted in Mr. Schumacher's email (below), the current owner is free to
explore his alternatives for this property."

Mark Scott
City Council District 4


The text of Mr. Schumacher's email is as follows:
---------------------------------------------------------------
As I have mentioned, I don't follow the media much so I did not see the
article. Additionally, as I mentioned I am under a confidentiality
agreement regarding the transaction. So here is what I can share:

Chamisa Hills will be a difficult renewal because of the state of
deterioration alone. Because of the difficult renewal ahead we had a
transaction structure that needed to work a specific way for both the
buyer and seller. Unfortunately as we have learned through our due
diligence, the renewal also faces a difficult seller and is challenged
by a less than receptive governing body. Having said all that, when we
went to fund some of the purchase price last week we found the amended
(transactions do get amended during the process) contract terms to be
unpalatable and elected to put the potential acquisition on hold
allowing the seller to freely explore alternatives.

What this means for BIZDOC for now is we withdraw our rate request and
will sit on the sidelines on this one, at least for now...we never say
never.

Mr. Schumacher

Preview of Presentation to the Utlilities Commission from Michael Schumacher

Mr. Shcumacher has forwarded the power point presentation that he will be putting forth at tomorrow's Utilities Commission Meeting: You can view his letter to the City Manager here.

Ultilites Commission Reviewing Mr. Schumacher's Proposal (update)

On Tuesday, 8/20 at 6 p.m. at City Hall, the city’s Utilities Commission will review and consider a rate proposal for recycled water related to Chamisa Hills Golf and Country Club submitted by Michael Schumacher.

At this meeting, the Utilities Commission will have the opportunity to ask Schumacher questions as well as city staff. In addition, it’s likely that other relevant and associated issues will be discussed pertaining to water, and in particular recycled water.

The Rio Rancho Governing Body could consider Schumacher’s proposal at a future meeting.


Detail on Proposal

Schumacher, as part of his acquisition consideration of the for sale Chamisa Hills, has requested from the city a 10-year contract rate for recycled water for irrigating the golf courses, effective July 1, 2014. This rate would be $1.38 per 1,000 gallons for the first 230 million gallons annually, with the rate increasing to $2.51 per 1,000 gallons for use annually over 230 million gallons.

In January 2013 the Governing Body approved new rates for recycled water. Currently the rate is scheduled to be $3.28 per 1,000 gallons effective July 1, 2014, and increasing to $4.54 per 1,000 gallons by Fiscal Year 2017.

An Update from Prospective Owner of Chamisa Hills Golf and Country Club

(from Michael Schumacher):



I wanted to take this opportunity to provide an update to those of you who have reached out over the last couple of months to offer support, as we work to complete our acquisition of Chamisa Hills. As most of you know we do have an executed definitive agreement to acquire the assets of Chamisa Hills (which entailed significant earnest dollars in support of the transaction) and are now finalizing due diligence. One of the critical factors in a successful acquisition and enhanced operation of Chamisa Hills is addressing the water rate with the city to arrive at a rate that is both economically viable for the property and beneficial to the city. In support of that critical factor we have made a proposal to the city regarding water rates which we feel meets that goal. I am attaching both the proposal and the city administration’s memorandum regarding that proposal.

The next steps in the water rate question are as follows:

-Utility Commission will meet on Tuesday, August 20 at 6 pm at City Hall. In accordance with the City Code, all recommendations for adjustments to utility rates must be submitted to this Commission for recommendation to the Governing Body. I will be attending and offering a presentation as part of the meeting…hope to see those interested in attendance.

-Governing Body meeting and first reading of request at the 8/28 meeting of the Governing Body. I will be attending and commenting as allowed under the rules of the meeting…hope to see those interested in attendance.

-Governing Body meeting with vote on request the 9/11 meeting of the Governing Body. I will be attending and commenting as allowed under the rules of the meeting…hope to see those interested in attendance.

I encourage you, and those you know who are interested in the water rate and its impact on enhanced operations of Chamisa Hills, to participate in the process by attending these critical meeting and/or reaching out to the Utilities Commission members and the Governing Body members to offer your input. I will say that to date the city administration and the Governing Body have been receptive and I believe genuinely want a water rate solution that allows for the enhanced operations of Chamisa Hills, focuses on water conservation, and meets the needs of the city…I believe your input is critical at this point. Please help get the facts out to interested constituents.



Most Respectfully,

Mike

Michael Schumacher, MBA, DBA(abd)
Chairman, CEO, and CIO BIZDOC, Inc.

EDITOR'S NOTE: IT WAS NOT POSSIBLE TO CONVERT THE FILE FOR VIEWING HERE AT THIS SITE. WE HOPE TO GET A READABLE FORMAT UP SOON.

Water Rates and Chamisa Hills Country Club

This article is from the Rio Rancho Observer:

CHCC buyer wants lower water rates
Sunday, August 11, 2013
By ARGEN DUNCAN Observer staff writer
RR Observer

The prospective new owner of Chamisa Hills Country Club is asking the city for a contract lowering the rates for recycled water used to irrigate the golf course. The rates are scheduled to increase dramatically next summer.

According to a written proposal dated July 22 and submitted to City Manager Keith Riesberg, Michael Schumacher, who is in a due-diligence period before buying the course, suggested a two-tier contract rate for bulk use of recycled water. The contract would begin July 1, 2014, and last 10 years.

Schumacher proposes a rate of $1.38 per 1,000 gallons for the first 230 million gallons per year, which he said is consistent with the average water use for Southwestern golf courses the size of Chamisa Hills. For use above 230 million gallons a year, Schumacher suggested a rate of $2.51 per 1,000 gallons.

Chamisa Hills currently has an agreement with the city in which it pays 47 cents per 1,000 gallons for reused water. Once that agreement expires on July 1, 2014, the course would pay $3.28 per 1,000 gallons, and the rate would rise to $4.54 by 2017.

Schumacher has a goal of using not quite 230 million gallons a year to maintain the course, compared to the current 273 million gallons.

Also, the rate would be subject to annual increases or decreases based on inflation.

*The objective is to establish a bulk reclaimed water rate which is competitive to the market, balanced, encouraging of water conservation, positive to economic development and fair to all constituents,* Schumacher wrote in his proposal.

The proposal must win approval from the city Utilities Commission and then the Governing Body to take effect.

According to Schumacher*s proposal, the average regional peak-season rate for non-potable water is $1.38 per 1,000 gallons. The Albuquerque price is $1.08 per 1,000 gallons.

Schumacher said his proposed rate would encourage water conservation, allow the golf course to compete with Albuquerque courses, provide a chance for continued economic development and allow his company, BIZDOC Inc., to buy Chamisa Hills and be successful.

*The course*s water cost going forward, assuming we hit targeted water conservation gallons, is about $317,000 per year, as compared to the southwestern U.S. average cost of water per year (for a 27-hole course) of $160,500 * or almost double the average water cost,* Schumacher wrote.

In the proposal, he said he has a budget of about $6.5 million to buy and renovate the country club, including the golf course, club house and tennis courts. He said economic impact could include benefits to the values of nearby homes, gross receipts taxes, property taxes and the payroll for 60 employees.

City Councilors Mark Scott, whose district includes the golf course area, and Chuck Wilkins declined to comment on the proposal, saying they didn*t want to influence the decision of the utilities commissioners.

*They need to make their own decision and then bring it back to the governing body, to me,* Scott said.

However, he did say the golf course has value to Rio Rancho, its economy and surrounding properties. Scott hopes the public, businesses and community leaders will offer input on the matter.

*The more community involvement we get, the better product we have,* he said.

Thursday afternoon, Mayor Tom Swisstack said he hadn*t seen the proposal yet and so declined to comment.

#Chamisa Hills Golf and Country Club Update

Golf Course Update:

The City Manager has received a proposal from Mr. Schumacher, the person who is considering purchasing the golf course. In his proposal, Mr. Schumacher requests the City adjust rates for recycled water. 

City Staff is currently reviewing this request and will be submitting it to the Utilities Commission for review and consideration at their August 20th meeting. 

As of today, I have not received a copy of the proposal. I will keep you advised when I do receive it, I will post it on my web site as soon as it’s provided to me along with the rest of the Governing Body and Utilities Commission.

Update on #Chamisa Hills Golf and Country Club Pending Sale

Mr. Scott:

I wanted to update you on our efforts to acquire the assets of Chamisa
Hills Country Club. Last Monday (7/15/2013) we conducted a walkthrough
of the property in cooperation with the seller and their
representatives, at the conclusion of that walkthrough and meeting we
(both buyer and seller) signed the definitive agreement for us to
acquire all the assets of Chamisa Hills Country Club. The next step for
this coming week is the execution of that agreement by providing
escrowed funds in support of that acquisition. The execution of that
agreement is followed by an approximate 60 day final due diligence
period and our taking possession of the property shortly thereafter. We
are excited to conclude the acquisition, through what has been a very
collaborative process with the sellers and community, and begin the
renewal.
At this time I wanted to share some of our current steps and plans for
the renewal of the property:

-Staff - Since this is an asset purchase, the new entity owning the
property will need to go through a hiring process to staff the property
for the future. We are very excited to work with the existing Chamisa
team members to offer them first and preferred opportunity at positions
in the new entity based on their desire, skills, and administrative
checks...commensurate with best business practices in hiring.

-Work With City - We will work with the city to develop a water plan
to include water conservation and accretive economics (positive economic
impact).

-Club House - We will quickly move to re-organize, update, and
redecorate the clubhouse, to include:

o Paint

o Carpeting

o New/replacement restaurant equipment

o New furnishings

o New decorations

o Upgraded technology

o Portals

o And other features

-Irrigation Design - We will engage the irrigation architect upon
possession or shortly before, the engagement will be for an irrigation
design for all 27 holes (plus driving range) but the work will be done
nine holes at a time so we can always maintain 18 holes open for play.

-Course Maintenance Equipment - All equipment is dated and most will
be replaced.

-North Course and Driving Range Renewal - New irrigation and seed will
begin shortly after irrigation design is complete.

-Tennis Court Resurfacing - We are working to resurface the courts
before next spring.

-Soil Treatment - We will begin soil treatment (to break down salts
and allow for better water absorption) efforts very early in the renewal
process.

-West Course Renewal - Once the North Course is reopened we intend to
replace the irrigation system on the West Course (leaving 18 holes still
open for play).

-East Course Renewal - Once the West Course is reopened we intend to
replace the irrigation system on the East Course (leaving 18 holes still
open for play).

-Xeriscaping - Xeriscaping can begin shortly following the irrigation
work and will be methodical throughout the course.

-Marketing Strategy - Throughout the entire process we will be working
to market the club to the community based on providing the enhancements
that will drive greater participation in all the property has to offer.
While there is certainly more to the renewal process than we identified
above, this should help to provide guidance in how we intend to proceed.
The entire process will not be completed over night as you can imagine,
however we intend to deliver steady and noticeable progress for the
property and the community.

I appreciate all the input we have received from constituents and will
be reaching out to club members and the community through the month of
August and beyond to discuss our plans.

Most Respectfully,

Mike

Michael Schumacher, MBA, DBA(abd)

Chairman, CEO, and CIO BIZDOC, Inc.

Statement Read By Councilor Scott at 6/12/13 Governing Body Meeting Re: #Chamisa Hills Golf and Country Club

#Chamisa Hills Golf and County Club Update

I have received notification that a new owner group has "has executed a
letter of intent for acquisition" for the golf course. I do not have
any more information quite yet as I want to check the details before I
tell you something that may not be true (we have enough of that). I will post the info as soon as I can.

THIS JUST CAME IN:

Rio Rancho golf course Realtor says he has buyer
By Rosalie Rayburn Journal Staff Writer
Tue, Jun 11, 2013
ABQ Journal Rio West Section Online

Matt Call, a principal with NavPoint Realty, the Colorado-based company handling the sale of Chamisa Hills Golf Course and Country Club in Rio Rancho said today that he is working on a purchase agreement with a group of buyers.

Monday was the deadline for potential buyers to submit sealed bids after a publicized online auction on May 29 failed to produce a buyer.

The minimum bid for the course, tennis courts, club house, including liquor license, was set at $850,000 at the online auction.

Call said he got several offers but declined to divulge the names of those he is working with on the purchase agreement.

“I can’t disclose that information, but the group is very much committed to making Chamisa Hills a focal point in the community,” Call said.

Golf course owner Harry Apodaca listed the facility for sale a couple of months ago, saying he had been losing money and faced a steep increase in the water bill for irrigating the 27-hold facility.

New rates the city council approved in January will raise the rate Chamisa Hills pays for treated effluent from 47 cents per 1,000 gallons to $3.28 per 1,000 in July 2014.

Homeowners who live around Chamisa Hills are afraid a new owner would turn part of the golf course into a residential development. Some have asked the city to intervene.

Councilor Mark Scott, who represents the golf course area, asked Rio Rancho Mayor Swisstack to schedule a workshop to discuss their concerns and the water rates.

The workshop is scheduled at 6:30 p.m. on Thursday at City Hall. Call said someone from NavPoint Realty and/or the new buying group would likely attend the workshop. 

Councilor Scott Shares An Observation and Image of How #Chamisa Hills Golf and Country Club Uses Water

Broken sprinkler at Chamisa Hills Golf and Country Club (taken on Councilor Scott's cell phone)

Everything on the golf course is dying and yesterday (Sunday, June 9th) at 4:12 pm when it was 98 degrees, there was a large sprinkler stuck on for hours and hours making a swamp. I had noticed it on a few hours before and decided to stop by again around 4 pm to see if it was still going. Obviously it was broken, but this is a huge waste of water. No one noticed from the club management-or, if they did, nothing was done or acted on in a timely manner.

And yet, the owner blames the upcoming water rate hikes as the reason to the sell the property. Really?

Do you find that this owner has been a good steward of the water that the citizens of Rio Rancho have been subsidizing for years? It is time for a new owner. One who will respect the community, the water and the land. I hope one will come forward soon.

Work Session Called for #Chamisa Hills Golf and Country Club

Wed, Jun 5, 2013

Neighbors,

As you know I have asked the Mayor of Rio Rancho to call for a special work session to address the Country Club issues. His response was that after he gets with the City Manager he would make that call.

Today I meet with the City Manager at about 11:30am and asked that he (the city manager) contact the Mayor to see if this can be put on our schedule. As you know we have to be post it 72 hrs or more, before we can have a meeting of the governing body.

I will let you know as soon as I get word on when this meeting will take place.

Thanks!
Mark Scott







___________________________________





June 05, 2013

Work Session Called by Mayor Related to Chamisa Hills Golf and Country Club

RIO RANCHO, N.M. - Mayor Thomas E. Swsisstack has called for a work session of the Rio Rancho Governing Body related to Chamisa Hills Golf and Country Club for Thursday, June 13, 2013, at 6:30 p.m. at Rio Rancho City Hall.

The agenda for this work session will be:

*Background/Overview - City Staff
*Water Rates - Mayor Swisstack
*City Councilor Statements/Remarks
*Public Comment

Per resolution adopted by the Governing Body, a work session may be called by the mayor or by three of more members of the City Council upon three-day notice.

The work session meeting will be streamed live and archived on the city*s Web site, http://www.ci.rio-rancho.nm.us, and broadcast on the city*s RioVision government cable channel 15, which is available to Rio Rancho Cable One subscribers.

Rio Rancho City Hall is located at 3200 Civic Center Circle.