Longtime St. Paul company to run Como Golf Course

City Council approves 5-year agreement with Prom Management Group

By TESHA M. CHRISTENSEN

As a boy, Bill Given of Prom Management Group, Inc. played golf at Como. As a man, he and his brother will be running things.

St. Paul has reached a five-year agreement with Prom Management Group to manage both Como and Phalen golf courses. The city council approved the agreement at its Jan. 22 meeting on a 4-3 vote, with Councilmembers Bostrom, Thune and Tolbert voting against it.

“I am most excited to see this new adventure become successful and profitable for both our company and the city,” said Given. “If we can accomplish this, and provide exemplar customer service and products, this will be a win for everyone, including those who pay taxes in the city and do not play golf.”

TIES TO ST. PAUL

Bill and his brother Tom were born and raised in St. Paul. “We have a very rich history in St. Paul, spanning more than three generations,” said Given.

The company began in the 1940s when their father, Harry Given, visited the original Prom Ballroom on University Ave. to do advertising and promotion for the popular dance hall. After a few years, Harry became the general manager, and eventually the owner.

During the late 1980s, Tom and Bill brought the company from their father and shifted it into catering, event management and concessions operations. They operated out of the Prom Expo Center on Smith Ave. in St. Paul, and became involved in the catering aspects of local and national PGA tournaments. As the business grew, they expanded into a new 40,000-square-foot facility in Oakdale.

Today, Prom Management Group caters to over 30 golf tournaments nationwide, including the: PGA Tour, Champion’s Tour, USGA National Championships, the LPGA Tour, the U.S. Open, U.S. Women’s Open, The Players Championship, The Presidents Cup and the 3M Championship-TPC of the Twin Cities in Blaine, Minn.

“We took over Theodore Wirth in Minneapolis and Columbia in Minneapolis seven years ago, and have doubled the food and beverage revenues in that time,” said Bill. “We have expanded food options, specials, beverage options, as well as service and catered offerings that the patrons never had previous to our arrival.

“Many years ago, we did the same at Keller Golf course, and we have been very successful at that venue for 28 years.”

A NEW BUSINESS VENTURE

Como will represent a new business venture for Prom, as it will be the first time they have managed tasks outside food and special events, but the Givens are looking forward to the prospect.

“This is a natural expansion of our golf interests, and a platform that we believe will have many more opportunities,” said Bill. “We believe we can deliver a better customer service experience for our patrons, expand menu and food and beverage options, and still produce a profit. I am most excited about the structure and development of this new business segment.”

AGREEMENT HELPED CITY KEEP AAA RATING

Prom will assume total financial responsibility for losses or gains at the golf courses. Prom will pay the city 4% of gross revenues from both courses, with a minimum guaranteed amount of $65,000 (regardless of performance). The city’s total annual payment will increase from the minimum annual guarantee if gross revenues totaled more than $875,000 at Phalen, and/or $750,000 at Como, in a season.

Prom will be required to provide the city with monthly financial performance statements and an annual financial report.

While Prom will set the rates at the golf courses, the city will have final approval.

Prom may use the current city-owned turf maintenance equipment and furniture, fixtures and equipment at each course, but will be responsible for repairing and maintaining it.

The city will contribute $30,000 per course each year for capital improvements. Meanwhile, Prom will spend $10,000 per course for the first three years, and $20,000 per course for the remaining two years.

The city will continue to operate the ski program at Como and the cross-country grooming at Phalen during the winter.

About 20 full-time unionized public employees who work at the Phalen and Como courses will be affected by this agreement. Most will be reassigned to work at the Highland courses filling positions previously being held by temporary/seasonal/out of title workers. The staff that are impacted have been officially notified of any changes to their existing positions, and only a few will not have a position, pointed out Brad Meyer of the Parks and Recreation Department. Some opted to retire. The city will eliminate all operating liability, and after all expenses are factored in, the net benefit of the agreement will be in the range of $400k annually.

The city’s golf deficit grew to more than $7 million in 2013. According to parks and recreation staff, getting this draft agreement in place and eliminating the operating liability at Como and Phalen were essential to maintaining the city’s AAA credit rating.

“So this agreement with Prom that eliminates losses and allows the courses to stay open with enhanced food and beverage options is the best case scenario in this situation,” said Meyer.

PLANS FOR CHANGE

The Givens believe they can do a better job than the city at running the golf courses, in part because they will be able to promote more events (such as weddings, golf tournaments, etc.), and drive revenues in a way that a city can’t.

Prom plans to get liquor licenses in order to give patrons more choices and keep the golfers after their rounds.

“We also plan to offer some new pricing options to try to fill open tee times,” said Bill.

The Givens expect challenges. “Both courses will always be challenged with weather – it’s obviously one thing we cannot control,” said Bill.

Additionally, the clubhouse configuration and space at Como is not ideal for promoting any catering or even expanding food and beverage service. However, the Givens intend to add outside seating and furniture that is rain resistant, and improve options on the beverage carts to counteract these negatives.

Because Como does not have a driving range, the Givens know that expanding golf to the public and trying to gain new golfers will be difficult.

“As you know, the golf population has been shrinking over the past 10 years. We are going to try to make the experience easier, less stressful, and more enjoyable,” said Given.