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Howard Riefs

  • Karma: +0/-0
Kemper to manage Harborside
« on: February 01, 2013, 04:10:14 PM »
Well, they all can't be Streamsong:

"KemperSports Management Inc. has agreed to pay the Illinois International Port District at least $100,000 a year for 10 years to manage the golf course, which lost a total of $2.4 million on revenues of $9.8 million from 2009 to 2011.

http://www.chicagobusiness.com/article/20130201/NEWS02/130139916/chicagos-port-birdies-golf-course-deal

I hoped they had a silver bullet to turn it around. Nope:

“There's no silver bullet in any of these turnarounds,” he added. “We think we can make some big strides in the first year and get it moving in right direction.”

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"Golf combines two favorite American pastimes: Taking long walks and hitting things with a stick."  ~P.J. O'Rourke

Joe Jemsek

  • Karma: +0/-0
Re: Kemper to manage Harborside
« Reply #1 on: February 01, 2013, 05:25:22 PM »
There is a huge amount of revenue and the maintenance budget was so over the top. Could easily cut 500 k out and still offer a great product. Funny think is we offer port district more than a 100k per year plus a gross over breakeven.
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Have clubs, will travel

Jud_T

  • Karma: +0/-0
Re: Kemper to manage Harborside
« Reply #2 on: February 01, 2013, 05:52:59 PM »
Anyone who can't break even on $3.3mm/year doesn't deserve it IMO, even if there is 36 holes.  Hell there isn't even that much fairway out there to maintain!  :o
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Golf is a game. We play it. Somewhere along the way we took the fun out of it and charged a premium to be punished.- - Ron Sirak

Paul OConnor

  • Karma: +0/-0
Re: Kemper to manage Harborside
« Reply #3 on: February 02, 2013, 10:53:40 AM »
Quote from: Joe Jemsek on February 01, 2013, 05:25:22 PM
There is a huge amount of revenue and the maintenance budget was so over the top. Could easily cut 500 k out and still offer a great product. Funny think is we offer port district more than a 100k per year plus a gross over breakeven.

It is not clear from Port Authority financials that the reported $2.4 million 3-year loss, or the claimed $800k yearly loss are accurate figures.  Note the City takes a 9% amusement tax off the top of Harbordside's revenue, the pro shop makes money, and there is a huge D&A and interest expense tied to the golf course.  Rather than dig a little deeper into this deal, Crain's has lazily relayed the Port Authority's press release to the public.

Joe, wonder if you could add some color to the Port Authority decision.  Are they not required to take the best offer? 
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Paul OConnor

  • Karma: +0/-0
Re: Kemper to manage Harborside
« Reply #4 on: February 02, 2013, 11:16:34 AM »
"Mayor Rahm Emanuel aims to revitalize the Port of Chicago, entrusting a battle-tested ally to make an economic engine out of the aging backwater facility on Lake Calumet.

Led by Michael Forde, the lawyer who defended Mr. Emanuel's residency status in the mayoral race, the mayor's recent appointees are setting a new agenda to shake up the little-known Illinois International Port District, a sleepy, secretive city-state agency that has run the port since the 1950s but has made no major dockside improvements in 30 years."

Translation:  Rahm's guys will now be getting paid.  A few million in insurance, security, directors fees, legal fees, and food contracts will all find a new home with Rahm's chosen vendors.  Apparently, Jemsek is not on the list.


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