The Indian Wells City Council tasked Troon, which has managed the course for three years, with creating a five-year strategic plan to put the resort back in the black. The council voted to approve the plan, which includes a $2.25 million loan from the city, with $1.5 million allocated for a new banquet structure, $500,000 for the IW Club, $125,000 for the café and $125,000 toward a marketing re-launch campaign.
Indian Wells City Council approved Troon Golf’s five-year strategic plan for the Indian Wells (Calif.) Golf Resort on July 11, the Palm Springs (Calif.) Desert Sun reported.
Established in 1986, the resort is not profitable and fell into Indian Wells’ possession after the city-created redevelopment agency that built it was eliminated on February 1, 2012, the Sun reported.
City Council asked Troon, which has managed the course for three years, to create a plan that would put the resort back in the black. Without it, the property will begin significantly draining Indian Wells’ funds as golf course and resort repairs become necessary, the Sun reported.
“We are on a path literally to failure,” said Mayor Pro Tem Ted Mertens. “We’ve done something with the Indian Wells Golf Resort and particularly the IW Club that government does so well: we built something because we had the money to build it.”
Central to the plan is an approximately $2.25 million loan from the city to the resort — $1.5 million of which will go toward a new banquet structure, $500,000 to the IW Club, $125,000 to the cafe, and $125,000 toward a marketing re-launch campaign, the Sun reported.
If all goes well, the updated resort could generate $2.3 million a year in gross revenue, which officials hope will help the city compete with Palm Springs, which is redeveloping its downtown and attracting at least two big name hotels, the Sun reported.
“We need to sell this facility as a campus that can draw big groups because that’s what Palm Springs is doing to us,” said Councilman Ty Peabody. “You want to see real competition, wait until Kimpton comes and wait until the Hard Rock Cafe opens; they just keep building up the momentum on their end of town.”
For the banquet venue, Troon proposed a tent structure capable of catering to special events and groups larger than 150 people for a profit increase of 5-15% the following year—around $987,000 in revenue. The structure itself would cost $950,000, with operating supplies and equipment at $350,000 and a kitchen extension to cater to larger crowds for $200,000, the Sun reported.
Roche opposed the plan and wanted to see a more concrete design for the banquet venue before approving Troon’s proposal. The plan was approved on the condition City Council is allowed to sign off final tent plans, safety issues, transportation issues, and redecoration changes, the Sun reported.
Troon also aims to refurbish the resort and increase seating at its dining room, bar and café. An outside marketing firm will be hired to rebrand the resort under a different name, the Sun reported.
“Troon golf was tasked with the opportunity of coming up with a plan to have the resort stand on its own two feet and be financially sustainable,” said General Manager Steve Rosen, who spearheaded the effort. “We’re really happy the council approved our plan and look forward to making the resort profitable.”