Existing banquet space at the Buffalo Grove, Ill. club, which has an 18-hole, Dick Nugent-designed golf course, will now be leased by WJ Golf for indoor golf activities including simulators, along with full-service dining and entertainment. The arrangement will be the first of its kind in the Chicago area, Buffalo Grove village officials believe. “This exciting new experiential opportunity centered around golf and entertainment options year-round will make Buffalo Grove a distinctive recreation destination for residents as well as golf enthusiasts,” said Village Manager Dane Bragg.
Trustees of the village of Buffalo Grove, Ill. have entered into a lease agreement with WJ Golf, an indoor golf business, to be the next tenant at The Arboretum Club, the Journal & Topics of Des Plaines, Ill. reported.
The arrangement will allow WJ Golf to offer indoor golf activities including private lessons, golf simulators, and full-service dining and entertainment to complement The Arboretum Club’s Dick Nugent-designed 18-hole golf course, the Journal & Topics reported.
According to village officials, it will be the first project of its kind in the Chicago area where a golf course will be expanded to provide both virtual and traditional golf experiences all at the same venue, the Journal & Topics reported.
“We have made the strategic decision to reposition the course and its amenities to provide an experiential opportunity centered around golf and entertainment options year-round,” said Village Manager Dane Bragg said. “This exciting new use at The Arboretum Club will make Buffalo Grove a distinctive recreation destination for its residents as well as golf enthusiasts from the area.”
WJ Golf plans to remodel the current banquet space and install golf simulators in its place, the Journal & Topics reported. It plans to keep its current location in Buffalo Grove, which opened in 2020 and has an indoor driving range, online golf and a golf simulator, for future members only.
The lease agreement with the village will start no later than April 1, 2022 and will carry a term of 10 years, with two five-year optional extensions, the Journal & Topics reported.
Over the next 10 years, the Journal & Topics reported, the village expects to gross approximately $1.25 million in rent from the arrangement. In contrast, the village’s total capital expenses and reimbursements to accommodate the lease will total $660,000, allowing for a payback period of six years.
Village officials say, therefore, that the lease will provide a financially sound tenant and allow for a reinvestment of over $900,000 into the golf course, for improvements to cart paths, sand traps, greens and other buildings that will be done in phases over the next few years, the Journal & Topics reported.
Beginning on or after November 16th, the Journal & Topics reported, WJ Golf will demolish the existing banquet space and construct eight golf simulators for training, recreational and entertainment purposes. It will also make improvements to the existing bar and restaurant area. According to co-owner Won Cho, two restaurant users are vying to operate at the course, and one should be selected in the next couple weeks.
WJ Golf estimates that the total investment into the space will be more than $700,000, the Journal & Topics reported. The village will be responsible for both the cost and work to the windows. The village plans to remove all of the windows along the south wall of the restaurant and replace them with sliding doors/windows to open the restaurant and bar space to the outside patio. Improvements will also be made to the patio area to increase seating options for both WJ customers, golfers and special events.
The overall costs of the window and patio area to be approximately $200,000, the Journal & Topics reported. The village has agreed to reimburse WJ Golf for an amount not to exceed $460,000 for it tenant improvements and improvements to the bar/restaurant space. Reimbursements will only be made as work gets completed and passes inspections and WJ Golf provides the necessary lien waivers showing that its contractors have been paid.
The existing tenant at The Arboretum, Progressive, had a lease that was set to expire at the end of 2022, but an agreement was reached with the village to end the lease early, the Journal & Topics reported. Progressive now plans to leave the space by November 15th.
According to the lease-termination agreement, Progressive only had to pay rent through this past May, with the village waiving the remaining rent through November 15th, saving Progressive about $7,000, the Journal & Topics reported. The village has also agreed to waive all utility payments for 2021, estimated to total $27,000. The village will pay $275,000 to Progressive for all of its assets such as appliances and furniture and will provide Progressive an early termination fee of $25,000. Progressive must cancel all booked events through the original lease expiration date of December 31st, 2022 and fully return all deposits.
Village President Beverly Sussman thanked Progressive for its decades of serving the community, the Journal & Topics reported. “We now look forward to this exciting new concept for our community,” Sussman said.
Trustee Gregory Pike stated that the village providing Progressive with a short-term cost of $300,000 will be beneficial in the long run, and expressed belief that the new concept will make The Arboretum more sustainable in the future.
“This is a great fit and I am very excited about it,” Trustee Les Ottenheimer said. “This will be a tremendous draw to the facility and Buffalo Grove.”
“This will put Buffalo Grove on the map for golf, and I am also looking forward to a fun new restaurant destination,” Trustee Joanne Johnson commented.
Tell Us What You Think!
You must be logged in to post a comment.