BEVERLY — Revenue has increased by a modest $26,000 over the last four years at Beverly Golf and Tennis Club, according to a report from the club’s management company.
The club took in $1,527,862 in gross revenue in 2013, a 1.7 percent increase from 2010, when Golf Facilities Management Inc. first began running the club.
GFMI provided the numbers to the city after The Salem News requested them. Mayor Mike Cahill and the Beverly Golf and Tennis Commission had both recommended a contract extension for GFMI without knowing the gross revenue numbers.
Cahill said the revenue increase is not enough to change his mind about renewing the contract with GFMI rather than seeking higher payments by putting the contract out to bid.
“They’re reasonably modest,” he said of the revenues. “All of the indicators that we have — the financial data, member satisfaction, the strength of the relationship with the city — they all point in a very positive direction, so the idea of extending this lease makes sense.”
Under the proposed extension, GFMI would pay the city $2 million over five years. The company is now in the last year of a five-year contract that pays the city $1.7 million.
The contract extension must by approved by the City Council. Councilors are reviewing the proposal in their legal affairs and finance committees.
Beverly Golf and Tennis Club has an 18-hole golf course, outdoor tennis courts, a pub and function rooms. Revenue comes from membership fees, greens fees, the pro shop, golf lessons, the 19th hole pub, functions and tennis.
GFMI keeps most of the revenues from the club’s operation above its payments to the city. The city does get a share of membership fees if the gross revenue exceeds $550,000. The club took in $445,475 in membership fees last year.
Cahill said city officials have also compared the contract proposal to GFMI’s contract with the city of Lynn to run Gannon Golf Club. Purchasing Director David Gelineau said GFMI is paying Beverly about 24 percent of gross revenues at Beverly G&T, as compared to the 20 percent it is paying Lynn to run Gannon.
Staff writer Paul Leighton can be reached at 978-338-2675 or email@example.com.
Beverly Golf and Tennis Club annual gross revenue