REGULAR MEETING July 7, 2004 6:30 P.M.

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PITTSFIELD TOWNSHIP ZONING BOARD OF APPEALS MINUTES

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Members Present: Edward Resha, Robert Grosshans, Ishwar Naik, Alayna Stagg, Kenneth Brostrom (arrived at 7:25 p.m.).

Members Absent: None.

Others Present: Robert Jacobs, Ken Judkins, Mohamed Aly-Khalafalla, Richard Cloak, Robert & Sandra Hogue, Steve & Charlene Calcagno, James Mulvany, Woo Won Chung, John Norton, John Kirk, Geneva Kirk, Paul & Sheryl Calcagno, Jim Pryce, Thomas Manchester, Deborah Russell, Stuart Hutchings, Chris Hutchings, James Morris, Steve & Mary Cortese, George Belskus, David Egeler, Geraldo & Sara Uytingco, Kevin Geltz, Melody Yu, William Jin, Marie Paratto, Greg Symons, Richard Lintott, Judi Lintott, Mark Cooks, Karl Neumaier, Assistant Planner Jennifer Black, Zoning Administrator Mark Spencer, and Recording Secretary Laura Ford.

1.0 Call Meeting to Order/Determination of a Quorum

Chairperson Naik called the meeting to order at 6:35 p.m. A quorum was present.

2.0 Approval of Agenda

Motion by Member Resha, supported by Member Grosshans, to approve the agenda, as presented.

MOTION CARRIED

3.0 Communications and Announcements

None.

4.0 Items from the Floor

None.

5.0 Old Business

None.

6.0 New Business

6.1 Procedural Organization

Chairperson Naik stated the Members are going to set ground rules for the meetings. He then reviewed the suggested format for meetings. He said the agenda items will start with a brief introduction from the chair, staff will give their reports, and any other agencies will then give their reports. He added that the comments in support of the petition will follow, and then comments opposed to the petition will be heard. He said the public hearing will then be closed. He said one agenda item tonight will be tabled, and he hopes it will take only two meetings to complete that item.

Zoning Administrator Mark Spencer asked Chairperson Naik to clarify the format for the one specific agenda item he mentioned.

Chairperson Naik stated this format is applicable to both items on the agenda tonight.

Zoning Administrator Spencer stated this format was presented to the Members, as a suggested format based on the Zoning Board of Appeals Manual. He said this format is an outline and a guide to help organize the meetings. He said the Members should discuss the format and make sure they agree with it.

Chairperson Naik asked if the Members had any comments regarding the proposed format.

Members Grosshans stated the intent of the format is to be the procedure for all future meetings.

Chairperson Naik stated normal petitions do not require several meetings. He said Item 6.3 (Fairwood Green) may be lengthy. He said the meeting will be closed at 9:30 p.m.

Member Stagg stated she agrees with the format.

Motion by Member Resha, supported by Member Grosshans, that the Zoning Board of Appeals Members accept the suggested format presented tonight, and this format be used during all meetings.

MOTION CARRIED

6.2 ZBA 04-04 Mohamed Aly-Khalafalla

[submitted for use variance]

Chairperson Naik stated there are only four Members present and the other Member will be arriving soon. He said the vote on this item will not take place until Member Brostrom is present. He asked the applicant if this is acceptable. He said if the vote should take place, there is a possibility of a tie vote. He said the Members could move on to the next agenda item.

Mohamed Aly-Khalafalla, applicant, stated he would like to wait for the other Member to arrive.

Motion by Member Resha, supported by Member Grosshans, to postpone ZBA 04-04 Mohamed Aly-Khalafalla, until a future meeting.

MOTION CARRIED

6.3 ZBA 04-03 Fairwood Green

[submitted for use variance]

Chairperson Naik asked the applicant if they are okay with the meeting proceeding with only four Members present.

Tom Manchester, representing Hickory Woods Golf Course, stated he would like to wait for the other Member to arrive.

Chairperson Naik recessed the meeting at 6:51 p.m. to allow time for Member Brostrom to arrive.

Chairperson Naik called the meeting back to order at 7:12 p.m.

Chairperson Naik stated Member Brostrom has not yet arrived. He said the meeting could be postponed, or the applicant’s could wait until Member Brostrom arrives.

Robert Jacobs, representing Fairwood Green, stated they are willing to proceed with only four Members present.

Chairperson Naik stated the format will be followed for this meeting.

Zoning Administrator Spencer stated an application was received for a use variance from Jeffrey L. Fulton. He said the application makes references to Wexford Homes, and to the golf course, although staff’s reports address Jeffrey Fulton as being the applicant. He said the application stated, “to permit a use variance from the permitted uses in the Recreation Conservation (RC) zoning district, to permit development of the site for single-family residential uses, consistent with the density permitted in a single-family suburban residential (R-1B) zoning district.” He said this would allow 2.5 dwelling units per acre. He stated the applicant is also requesting approval of an open space site plan as submitted.

Zoning Administrator Spencer continued and stated the Members must first find that complying with the Zoning Ordinance requirements, for the current zoning, causes a hardship that prevents a reasonable use of the property. He said if the Members do not find that there is a hardship the variance should be denied. He said if the Members find that a hardship exists, then they must determine at what level relief is needed to provide a reasonable use of the property. He said if the Members find that the variance requested is not the minimum necessary to provide relief, they can deny the variance, or approve a lesser variance. He said if the ZBA is inclined to grant some density relief, it must determine the minimum variance necessary to provide reasonable use of the land. He said the ZBA could attach conditions to make sure the Zoning Ordinance is upheld.

Zoning Administrator Spencer stated this request is two requests. He said the first is to grant a variance to allow a condominium development consistent with R-1B density. He said single-family detached units are permitted in the recreation conservation district, and this is a request for additional density (by the applicant). He said the second request is for approval of the area plan, which is similar to the type of plan required to develop a PUD district. He said density is not a stated function of the Zoning Ordinance, although minimum lot size regulates the number of dwelling units per acre.

Zoning Administrator Spencer stated the lot width and yard requirements are directly related to lot area. As the minimum lot area increases, the minimum lot width and yard width requirements increase. He said density is typically assigned to a PUD district based on the density depicted in the Comprehensive Plan.

Zoning Administrator Spencer said the Comprehensive Plan designates this property for Public Facilities, and Public and Private Recreation/Open Space. He said the ZBA may allow a specific residential density for single-family detached homes.

Zoning Administrator Spencer stated the Public Facilities, and Public and Private Recreation/Open Space district, does not have a density assigned to it because it is not a residential area in the Comprehensive Plan. He said this can be confused with the Ordinance. He said the area plan has not been reviewed by the Planning Commission or by the Township Board. He said area plans are a required part of a PUD district. He said if the ZBA wants to approve an area plan, he recommends that staff review the area plan and draft a report to the ZBA. He mentioned this process is similar to the Planning Commission’s process for an area plan. He said the area plan should be looked at carefully to make sure it meets the requirements of the Zoning Ordinance and the Land Development Standards. He said the area plan becomes the preliminary site plan. He said the applicant applied for a PUD district through the Planning Commission and was denied. He said the area plan was not reviewed in detail because it did not comply with the Comprehensive Plan.

Zoning Administrator Spencer stated four items are highlighted in his report (of July 2, 2004), that the ZBA must find before granting the use variance. He said if the petition does not meet even one of these findings, the variance should not be approved. He said the petition has to meet all four of the findings. He said these findings were based on the Jennsen vs. Holland Township case.

Zoning Administrator Spencer then read the required findings, and his comments from the report:

HARDSHIP:

To conclude that a property owner has established unnecessary hardship, a zoning board of appeals must find on the basis of substantial evidence that:

1. The property cannot reasonably be used in a manner consistent with existing zoning.

A. Although, the Township typically does not delve into the financial matters of a business, the ZBA may want to know more about the current business in order to determine if this type of business is a reasonable use of the property. The Applicant has provided evidence of a decrease in revenue for his golf course, which his accountant considers the largest factor in the golf course business’s financial problems. Although the applicant has presented several letters stating the current golf course business is not profitable due to its small course size and an over supply of courses, that does not mean that under different management a golf course business could not be profitable at this location. Businesses go through cyclical periods of lean and profitable times. It is possible that this is just a temporary downturn in the market. The following questions may help answer why the business is not profitable.

(1) What is the scope of the current business? Is it only golf? Does it have a Pro shop? Do they serve food or beverages?

(2) Does the applicant utilize the grounds in the winter?

(3) What efforts were done to increase business? When revenues are down, many businesses greatly increase their marketing expenditures. Between 1999 and 2003, they increased their advertising expenditures by less than $250.00. Why so little?

B. Did the applicant market the property for other recreation uses or permitted uses in the RC District? If not, how does he know the property cannot be used for anything other than moderate density single family residential? Although some permitted uses may not be compatible with the neighborhood, many potential uses exist for this property. Many types of recreation facilities are in demand in suburban areas that could be compatible with the neighborhood. In addition to golf courses, these uses include public parks, tennis clubs, softball and baseball facilities, soccer fields, cross country ski courses, gymnasiums, frisbee courses, skate parks, indoor driving ranges, indoor bicycle and running tracks, and other indoor sports facilities. The Planning Department receives several inquiries a year for help to find properties for recreation uses. No one has applied to the Township to build any of these facilities on this site and therefore the Township has not denied anyone from doing these uses on the property. The applicant has not provided any evidence that the property cannot be sold for any recreation uses nor has it presented evidence that it has been marketed for any of the uses permitted in the RC District. The applicant’s planning consultant has stated that other uses permitted in an RC District would be incompatible with the neighboring residential uses. In Zoning Administrator Spencer’s opinion, this was not true. Adequate safeguards could be established to make any of the above listed uses compatible with the neighborhood. The Township is not obligated to permit a property owner to conduct the use that provides the most economic return. The Allcock and Williams (an appraiser) letter of January 23, 2004, provided by the applicant, states that from an appraisal perspective, residential use would be the most appropriate. It may be true that the applicant could generate the most money by developing the property as moderate density residential, but that does not mean that other uses would not generate a reasonable rate of return.

C. Could someone conduct two or more permitted uses on the property? Yes. The applicant could place complementary uses on the same property with the golf course, such as an indoor sports facility, outdoor Frisbee course, or winter cross-country skiing, to increase revenue.

D. If the ZBA determines that the current zoning does not provide for a reasonable use of the property and that a residential use is appropriate, then what density provides a reasonable use of the property? The applicant provided nothing to demonstrate a reasonable return on investment. What is the minimum density needed to avoid a hardship? If the ZBA determines that the current zoning causes an undue hardship, then it should ask the applicant to provide a detailed financial analysis of development costs and the return on investment. After a review of this information by staff, the ZBA will be better informed to decide an appropriate density.

2. The landowner’s plight is due to unique circumstances and not to general conditions in the neighborhood that may reflect the unreasonableness of the zoning.

The applicant states that he is in a unique circumstance because small golf courses are no longer economically viable. This in itself does not create a plight due to unique circumstances. The RC District permits many other types of recreation uses on this property. The one other piece of private property that is in an RC District has the same restrictions.

Zoning Administrator Spencer stated there are four pieces of property in the Township that have the RC zoning. He said two of the properties belong to the Township. He said the other properties are this property and the Miles of Golf property, which are private properties.

3. The use authorized by the variance will alter the essential character of a locality.

The addition of additional residential homes in this neighborhood may not alter the essential character of the neighborhood, but it will change the vision that the comprehensive plan calls for in the neighborhood. A recreation component has been a planned part of the neighborhood for over 30 years. The Planning Commission heard evidence that residential properties near an open recreation area enjoy an increase in value of around ten percent.

4. The hardship is the result of the applicant’s own actions.

The ZBA should determine whether the suggested hardship is the result of the applicant not fully exploring or pursuing other possible uses that are permitted in the district. Nothing submitted by the applicant indicates any attempt to market the property as recreation property or to use the property for any use other than moderate density residential.

RELIEF

If the ZBA finds that a hardship exists, it should only grant a variance that provides the minimum amount of relief needed to provide a reasonable use of the property. In order to make a more informed decision on the amount of relief to grant, staff recommends that the ZBA solicit the additional information that is mentioned above and that it ask staff to review the compatibility of the proposed site plan with the surrounding neighborhood. Previously, the Planning Commission concluded that since the original PUD petition was not consistent with the Comprehensive Plan that it would be premature to address the area plan issues associated with the petition.

Member Grosshans asked Zoning Administrator Spencer what the density of the two subdivisions north and south of this property are.

Zoning Administrator Spencer stated approximately 2.5 dwelling units per acre.

Chairperson Naik asked Zoning Administrator Spencer if there has been any discussion about development on the Miles of Golf property.

Zoning Administrator Spencer stated part of the Miles of Golf property is in the Comprehensive Plan for commercial use, and the other part for Public and Private Recreation Conservation Open Space. He said the owner has submitted a petition to rezone to a PUD district. He said this would include the commercial portion as two commercial lots, and the balance of the property to stay as open recreation area.

Chairperson Naik asked if the Miles of Golf property is bigger than (the Fairwood Green) property.

Member Resha stated the Miles of Golf property is much smaller than this parcel.

Member Grosshans asked Zoning Administrator Spencer if this (Fairwood Green) went to the Planning Commission and was denied.

Zoning Administrator Spencer replied yes. He said the Planning Commission recommended denial to the Township Board, and the Township Board denied the petition. He said the applicant then asked for a use variance.

Chairperson Naik asked Zoning Administrator Spencer about single-family detached homes being allowed in the RC district, and the request for additional density.

Zoning Administrator Spencer stated single-family residential homes are a permitted use in the RC district. He said these are allowed on ten-acre lots. He said the primary function of the RC district is not to be residential.

Chairperson Naik asked if ten-acre lots would be permitted.

Zoning Administrator Spencer replied yes. He said the applicant could have four ten-acre lots.

Chairperson Naik asked for clarification on “agency reports” in the meeting format.

Zoning Administrator Spencer stated there could be official comments from the Washtenaw County Road Commission (WCRC) or the Washtenaw County Drain Commission (WCDC) that need to be entered directly into the meeting record.

Zoning Administrator Spencer said if the ZBA is ready to consider the density or relief appropriate for this site, then tonight the material could be looked at. He said at this time the ZBA should find if a hardship exists.

Robert Jacobs, attorney representing the applicant, stated there are several people who will be providing information to the ZBA tonight. He said these people will supplement the reports that have been given to the ZBA. He said the ZBA is being asked to grant a variance that is not a rezoning or a PUD. He said the Zoning Administrator has reviewed the four elements that the ZBA needs to review. He said those four elements are to be decided on, and the Board must listen to all the testimony and the evidence. He said the decision of the ZBA is based on the evidence presented. He said under the RC district, residential is a principal permitted use. He said a residential use has been established for many years. He said there is nothing in the Ordinance or the Master Plan that establishes the density.

Mr. Jacobs stated they have a permitted use and they want to know how to use the property within the permitted uses. He said the permitted uses in the Zoning Administrator’s report are not realistic, reasonable, or appropriate. He said those uses do not provide an economic return on investment. He said the agricultural use cannot be used in a productive way. He said the property is served by utilities. He said it is noted in the Zoning Administrator’s report and Planner Carl Schmult’s report that there are adequate utilities on site. He said there is a road network, Crane and Munger Roads service this site. He said the density is an issue. He said using this property for residential uses is the only reasonable use for this property. He then named the people present tonight to present information to the ZBA.

Mr. Jacobs stated golf courses are failing. He said municipalities have subsidized courses.

Member Grosshans asked if the four elements in the Zoning Administrator’s report will be answered.

Mr. Jacobs replied yes.

Zoning Administrator Spencer stated staff would like time to review the information that is being passed out by Mr. Jacobs.

Heidi Hannon, of Birchler-Royall Associates, stated her report will address the concerns relating to hardship. She said the property has been used as a golf course for thirty (30) years. She said there has been an impact by the over abundance of golf courses in Michigan, which in turn has resulted in economic hardship for the applicant. She said there are changes to the character of the property since it was purchased. She said this property has turned into a residential district. She said the character has had an impact on the use of the property. She mentioned that the site has been included in the water and sewer district.

Ms. Hannon stated another test is whether the literal interpretation of the RC district and the uses permitted would deprive the applicant of rights commonly enjoyed by others in the same zoning district. She said the literal interpretation of the RC standards keep Mr. Fulton from making or securing any reasonable return on his investment in the property. She said this situation is different from the Miles of Golf situation. She said this property has 2.5 dwelling units per acre to the north and south of this site. She said the Miles of Golf site is in a commercial character area and this is why they came in for a commercial rezoning. She said a similar use to this would not fit into this site (Fairwood Green).

Ms. Hannon stated the applicant’s hardship is not self created. She said Mr. Fulton did not have control over the development of the properties to the north and south. She said Mr. Fulton did not construct water and sewer lines adjacent to his site. She said the owner has no control over the over-saturated golf course market. She said this site is not practical for commercial recreation uses that are permitted in the RC district. She said the uses proposed by the Zoning Administrator are not compatible with residential development. She said the noise and the lighting that comes with some of the proposed uses are not received well by existing residential uses. She said there are people here tonight to discuss the suitability of agricultural uses for this site. She said the site is no longer feasible as a golf course.

Ms. Hannon stated the use variance will not change the character of the area. She then showed a map of the area. She said the density proposed is the same density as the surrounding sites. She said the requested use variance is compatible with the adjacent developments and will not change the character of the area. She said the ZBA has been asked to look at a development plan, which provides the benefit of useable open space. She said the recreation area available as a golf course is only open to people who want to play golf. She said the development plan preserves the natural features of the site. She added that the plan will stabilize the adjacent residential uses, rather than adding the encroachment of a commercial recreation use.

Ms. Hannon stated Munger and Crane Roads are paved and they do have the capacity to handle the proposed development traffic. She said Arbor Meadows, Hickory Pointe, and Ashford Village are developed at approximately 2.5 dwelling units per acre. She said the proposed plan is a logical and consistent extension of the moderate density residential zoning. She said this will strengthen the residential developments and help avoid isolated pockets of subdivisions. She said the homes are consistent with the Master Plan goals and objectives. She said the plan promotes conservation of natural features and open space. She added that this space would be assessible for neighboring residents. She said this would preserve a four (4) acre wooded area.

Member Grosshans asked Ms. Hannon how many golf courses out of the thirty-six (36) in Washtenaw County are nine (9) hole courses, and are they profitable or not.

Ms. Hannon stated this is not her area of expertise and someone else will answer this question.

Member Brostrom asked if there was any effort made to think of a recreation facility that would be profitable and would serve the existing neighborhood.

Ms. Hannon stated there are other people here who can answer that. She said it is hard to fit a commercial recreational use into an existing residential area. She said from a land use perspective it is generally not popular.

Member Stagg asked if other nine hole golf courses in Washtenaw County are doing well. She asked if this could be a part of marketing the course.

Ms. Hannon stated someone else can answer that question.

Member Stagg asked why this use has been there for thirty (30) years and it is now not compatible.

Ms. Hannon stated she was speaking to the other uses in the RC district. She said the nine (9) hole golf course is not viable on the site. She said this statement is intended to direct the ZBA members to consider other uses permitted.

Member Stagg stated that Ms. Hannon’s presentation said that the use of the site as a stable, kennel or a large scale recreational use would raise compatibility issues with the neighboring developments. She said the site is recreational now, and she does not believe that the neighbors are having troubles with this.

Ms. Hannon stated she works in many municipalities where the requests they receive are for the establishment of kennels and other uses, which do have impacts on residential uses. She said those uses typically generate many problems and are not compatible.

Member Stagg stated she feels the neighbors would be happier to have this site used as recreational.

Ms. Hannon stated they are making the point that many of the uses are not compatible. She said there are some that may be compatible but not viable.

Member Stagg stated she disagrees that the requested variance is compatible with the adjacent development and will not change the essential character of the area. She said she thinks this will change the area. She said Ms. Hannon’s presentation said “preservation of woodlands and natural features will enhance the project’s value.” She said the site is already preserved. She said the proposed use would not be consistent with the current recreational district.

Mr. Jacobs stated the point Ms. Hannon is making is that even the Township Planner says the use would be compatible with the existing neighborhoods. He said the site is surrounded by that use. He said because one has an open field, and that is a private endeavor owned by an individual, that does not ensure that use will always be there. He said they are talking about a right, because there has been a significant change in circumstances. He said the current use of this property is not viable.

Member Stagg asked if Hickory Pointe and Ashford Village were zoned recreational before (development).

Mr. Jacobs stated he does not believe so.

Member Grosshans stated that previously there were agricultural uses around this site, and now there are subdivisions. He said with the additional people in the area shouldn’t there be more golfers.

Mr. Jacobs stated they are going to discuss this. He said there is too much competition. He said this is killing the little person.

Member Brostrom asked if there has been any effort to market this land to another person who may want to develop a recreational facility.

Mr. Jacobs stated the next speaker may be able to partially answer the question.

Brent Beshears, Insite Commercial Group, stated his organization does a lot of transactions involving vacant land for commercial and residential development. He said he has a history in the golfing business. He said his brother works for American Golf, which is a publicly traded golf organization. He said he was told six (6) or seven (7) years ago that the golf industry nationwide was taking a turn for the worse. He said golf course owners agree that the market is not there. He said not just this course is failing, the nationwide market is failing. He said Michigan is over-built, and the number of golfers is decreasing, because most golfers are baby boomers or retirees. He said they are migrating out of the state of Michigan.

Mr. Beshears said Insite Commercial Group is managing an entertainment district in Novi (Michigan) called Fountain Walk. He said this business is located in a high density area, and it is closer to freeway exposure. He mentioned that neither of those attributes are present at this site (Hickory Woods). He added that the Fountain Walk property is succeeding. He said this business now has other entertainment venues such as bowling, skate parks, and restaurants. He said to use that argument for this property is not applicable. He said if this property was near a freeway, other commercial uses could be drawn there. He said this property was taken to a number of developers before Wexford Homes accepted it. He said the members from Wexford Homes were willing to step up because they are committed to this community.

Chairperson Naik asked Mr. Beshears if he is a realtor. He then asked

Mr. Beshears if he is an expert in golf.

Mr. Beshears replied no. He stated the knowledge is shared through family members. He said he is currently selling numerous golf courses in the Southeastern Michigan area.

Chairperson Naik asked if the information is hearsay.

Mr. Beshears stated golf courses are failing and he is selling them.

Member Grosshans stated the Stonebridge golf course has had more play in the past couple of years. He said this is because it remarketed itself. He said it is not true to say all golf courses are failing. He asked if there are other nine (9) hole golf courses in Washtenaw County, and are they making money?

Mr. Beshears stated he did not have those facts. He said courses that are large enough to give outings are keeping their heads above water. He said large clubhouses are needed to support a large number of people at once. He said a golf course would need to be in the food and beverage business, and provide eighteen (18) to thirty-six (36) holes of golf. He said that is how Lakes of Novi is staying alive.

Member Resha asked for what uses the golf courses are selling.

Mr. Beshears stated all the golf courses are being sold for alternative uses outside of golf course and recreational uses.

Member Resha repeated his question.

Mr. Beshears stated most of the courses are being sold for residential development. He said the clubhouse at Partridge Creek is being turned into a banquet facility, but it is a 2 million dollar clubhouse.

Member Resha asked if it was sold as a golf course.

Mr. Beshears stated this property was sold for three (3) uses, residential development, commercial use, and they are maintaining the clubhouse as a banquet facility.

Chairperson Naik asked Mr. Beshears to repeat the name of the golf course, and the location.

Mr. Beshears stated it is Partridge Creek Golf Course, and the owner is Bob Brightmeyer. He said he can provide a list of courses that are closing and selling for residential development.

Member Brostrom stated that Hickory Woods has been here for thirty (30) years, and it was viable for a substantial period of time. He asked why it was successful for a reasonable number of years and it is now failing.

Mr. Beshears stated there were not as many golf courses before. He said the demand was there because the supply was not. He said now a lot of golfers are leaving the game.

Member Stagg stated she thinks the number of middle aged people playing is rising. She said Tiger Woods has increased the interest in young people.

Mr. Beshears stated the ZBA would receive a letter from the Wayne County Golf Association. He said that letter will contradict Member Stagg’s statement.

Mr. Jacobs gave a copy of this letter to the members.

Member Stagg read the letter from the Wayne County Golf Association. She disagreed that the average golfer only golfs eight (8) times a year, as stated in the letter.

Member Resha stated he is not an avid golfer, and he plays more than eight (8) times a year.

Mr. Beshears stated this can be researched with the PGA (Professional Golfers Association) in Livonia.

Member Brostrom asked over what period of time did the average attendance (plays) at golf courses drop by 4.2%.

Member Stagg stated 4.2% sounds like a very small percentage.

Mr. Beshears stated he would assume that this is a drop of 4.2% per year. He said certain golf courses are trying to hang on, and they have not seen any growth in the past few years.

Member Stagg stated she does not believe that eighteen (18) holes are more popular. She said some golfers want to play nine (9) holes because they do not want to put the time in to play eighteen (18) holes. She said she feels Mr. Beshears is speaking from his experience and this is not conclusive for the ZBA to make a judgment on.

Mr. Beshears stated the golf course owners are telling him that they cannot get the league play when you have a nine (9) hole course.

Member Stagg stated she has a friend in a league who plays nine (9) holes.

Mr. Beshears stated that during the week leagues play nine (9) holes.

Member Grosshans stated Hickory Woods has leagues and they play the same nine (9) holes every week.

Member Stagg said she thought Mr. Beshears had stated that leagues are not interested in nine (9) holes. She said she does not agree that everyone who is interested in golf wants to go to a huge golf facility.

Mr. Beshears stated a banquet facility is to draw additional income to a golf course. He said it is also used for outings.

Member Stagg asked if the property is still predominately used for golf.

Mr. Beshears stated he cannot speak in percentages, although the off-season income comes from a banquet facility.

Member Brostrom stated the implication is that there is only one other option and this is medium density residential development.

Mr. Beshears stated an apartment complex or condominium development would work better. He said this is a mild approach, to blend in with the adjacent properties.

Member Brostrom asked if they are really interested in the density.

Mr. Beshears stated it is his opinion that the developer is being conservative by wanting 2.5 dwelling units per acre.

Member Brostrom asked if in Mr. Beshears opinion, there is no other economically viable use for this property.

Mr. Beshears replied yes. He said there are no other alternative uses.

Member Brostrom asked if gyms, indoor running and bicycle tracks, or indoor sports facilities would have a possibility of success.

Mr. Beshears stated they would not have success. He said a higher traffic count is needed.

Member Grosshans asked if the owners of other golf courses are doing anything to draw more play and more people.

Mr. Beshears stated he has seen them advertise, and they are having direct contact with employers to promote league play. He added they are dropping their rates. He said Pebble Creek use to cost sixty (60) dollars to play eighteen (18) holes, and now it costs forty (40) dollars.

Member Grosshans asked if the applicant has done anything to increase play at his course.

Mr. Beshears stated Mr. Manchester can speak to this.

Member Brostrom asked if this golf course has been listed for sale.

Mr. Beshears replied no. He said properties like this typically do not put up billboards because it would hurt their already suffering business.

Member Brostrom asked if this property was listed.

Mr. Beshears stated he did not have a listing for this property. He said he was in direct contact with the owners to help sell the property. He said you can either list the property and be bound to one brokerage house, or you can contact multiple brokerage houses and share the information. He said the owner chose the second option. He said either way is successful.

Member Stagg asked if the owner has approached other brokers to sell this property.

Mr. Beshears stated he cannot speak for the owner, and this question can be directed to the owner. He said he spoke with a number of developers who turned him down before Wexford Homes accepted.

Member Resha stated if Mr. Beshears was helping to market the property, was it being marketed as a golf course or as a residential development.

Mr. Beshears replied both. He said he has clients that do buy golf courses and want to weather the storm.

Member Resha stated if the marketing of this property was both residential and recreational/golf course, why was it marketed as a residential site before anything had been done to change the zoning. He said you are sitting on a piece of property that is a golf course, and it is in the Master Plan, and it is being marketed as a residential development. He said this seems like false advertisement.

Mr. Beshears stated you would kill the business that is already hurting. He said if you change the zoning the taxes will go up. He said no landowner changes the zoning until they have the use in place.

Bill Wedemeyer, Hickory Sticks Owner, stated he lives in Pittsfield Charter Township, and is the co-developer of Airport Boulevard. He said he reports to GAM (Golf Association of Michigan) and the National Golf Association how many rounds, players, and nine hole players there are. He said they produce annual reports, and the amount of golf playing is decreasing. He said he runs a small public course without a large banquet facility. He said they had an R & B (R&B Tool, in Saline) league, which they do not have anymore. He named various leagues he had over the years. He said there was a league out of Ann Arbor called GT Products. He said this business moved to Mexico. He said the Visteon plant does not promote recreation as much as Ford did. He said they had four (4) Ford leagues and they are now down to one. He said it is more efficient for the plant to work a person eighty (80) hours a week, instead of hiring two people. He said people work more and play less golf. He said the loss of manufacturing base results in the loss of league play.

Member Stagg stated part of owning a business is that some of the business is going to be lost. She said you have to go out and get new business.

Mr. Wedemeyer stated they have marketed more in the past three (3) years by a factor of five. He said every course is fighting for the same golfers.

Member Stagg stated a fairly small portion of the population works 80-90 hours a week.

Mr. Wedemeyer stated they use to have four (4) Ford leagues and now they have one. He said people have many pressures on their time.

Member Stagg stated people’s recreation time has increased.

Mr. Wedemeyer stated golf runs contrary to this.

Member Stagg stated if people are having more recreation time…

Mr. Wedemeyer stated he can bring the annual reports. He said volume has gone down. He said they have advertised, and sponsored a bowling tournament. He said there are not enough golfers for all of the courses.

Member Resha stated there are two new factories opening in Washtenaw County and one in Dundee and Saline. He said this could employ fifteen hundred (1,500) to two thousand (2,000) more employees.

Mr. Wedemeyer stated the City of Ann Arbor should be asked what has happened to the public cross country skiing that used to operate at Huron Hills Golf Course. He said Don Chisum and Joe Savarino had a business called Tee and Ski which are both gone.

Member Resha asked Mr. Wedemeyer to provide copies of the statistics.

Mr. Wedemeyer stated Golf Association of Michigan (GAM) and the National Golf Association provide their statistics.

Member Grosshans asked if the statistics are split by Counties.

Mr. Wedemeyer replied yes.

Member Grosshans asked if leagues keep the golf course afloat. He then asked if new leagues replaced the leagues that were lost.

Mr. Wedemeyer replied yes, leagues keep any public golf course afloat. He said the old leagues were not replaced by new leagues.

Mr. Beshears stated Mr. Wedemeyer is not selling his golf course because he cannot have utilities on his site.

Member Stagg stated the ZBA is saying there are other options.

Mr. Beshears stated the owner (of Hickory Woods) has approached the Township to buy the golf course.

Member Grosshans asked if Mr. Wedemeyer had a banquet facility, would this provide him with a return on his investment.

Mr. Beshears stated he would have to look into how many banquet facilities are already in the market.

Frank Garzia, Reddeman Farms Owner, stated he has four (4) other locations. He said each facility is seeing less business during the last five (5) years. He said there has been a decrease in revenue every year. He said out of the last one hundred (100) golf courses built in Michigan, not one has been a nine (9) hole course. He said this (Hickory Woods) is an old style golf course. He said if the applicant has to sell this property as a golf course, there will be very little interest in this property.

Member Grosshans asked Mr. Garzia how he is staying in business.

Mr. Garzia stated he owns an eighteen (18) hole golf course. He said they have been losing money in the past five (5) years. He said he also holds weddings, and has a liquor license.

Member Resha asked if any of this resulted from the downturn of the economy. He asked when Mr. Garzia’s business started to decrease.

Mr. Garzia stated his business started to decrease in 1999. He said this year saw their first price increase in five (5) years.

Member Resha stated every business in this community is suffering with the increase in taxes, and in medical insurance. He said this does not mean that business will not come back.

Mr. Garzia stated there are very few businesses that have to deal with government competition. He said in 1998 Pierce Lake opened (in Chelsea, Michigan), and they undercut Reddeman Farms rates on purpose. He said they took 10% of his business in one year. He said Pierce Lake does not pay any property taxes.

Member Resha stated this does not constitute saying that this business (Hickory Woods) is not any good. He said it may have a down turn right now, but it may come back.

Mr. Garzia stated he is still making money. He said he will hate the day when he starts losing money and he has to stay there or close. He said the applicant has an investment in the property. He asked someone to name another business that has to stay that same business no matter what. He said people get into the golf business for two reasons; because they love it, and because they know they can do something else with the land. He said a farmer who has land and it becomes unfeasible for him to farm anymore, can sell that land. He said this property started as farmland, and the farmer decided to sell the land to get money out of it. He said this is the same thing the applicant wants to do. He mentioned all Ann Arbor golf courses are losing business. He said 35% of the golf courses in this county do not pay property taxes, and they keep their prices low.

Member Stagg stated Georgetown is a nine hole course.

Mr. Garzia stated he cannot think of a nine hole golf course being built in the last twenty (20) years. He said sometimes nine hole courses are built around condominium developments. He said there is a nine hole, par 3 in Northville that went bankrupt, and the Township made them leave nine holes there and build condominiums around it.

Member Grosshans stated there is a nine hole golf course on Stadium and Main Street in Ann Arbor.

Mr. Garzia stated this is a private golf course.

Member Stagg stated Georgetown seems to be thriving, and they just installed a swimming pool.

Member Grosshans stated the residents may pay an association fee.

Member Brostrom stated the applicant increased his advertising between 1999 and 2003 by less than $250. He asked Mr. Garzia if this sounds like a reasonable effort to increase the number of golfers.

Mr. Garzia stated he has increased his advertising budget a lot. He said his biggest increases are coming from the clubhouse. He said they have weddings, banquets, and good food service. He mentioned this helps to bring golfers to his course. He said his situation is better than the applicant’s. He said old style golf courses are struggling the most. He said if he had the mortgage payment he had in 1995, he would not be as profitable. He said in 1970 through 1990 this was a great business to be in. He said everything changed in the late nineties. He said Stonebridge has increased their business, but they are still struggling.

Member Brostrom stated this seems like a bad business decision unless the owner is going to dump the property. He said there could be special events to get children involved in golf. He said an increase of $250 over four years is not a lot.

Mr. Garzia stated some golf courses cut back on everything, and then they cut their rates.

Member Stagg stated it seems exceptional to only spend $250 in four years.

Mr. Garzia stated most of his marketing is done in the clubhouse. He said they market from within. He said he has tried cable, radio, publishing ads in the Ann Arbor News every Thursday, and the Detroit News on Tuesdays.

Member Grosshans asked Mr. Garzia if he is saying that for a golf course to stay afloat it is best to have 18 holes, with a restaurant.

Mr. Garzia stated he has kept leagues because they enjoy the clubhouse. He said it may not be economically feasible for the applicant to build a clubhouse.

Member Grosshans asked Mr. Garzia if he hosts banquets during the wintertime.

Mr. Garzia stated his Township will not let him.

Member Brostrom asked Mr. Garzia if the increase of $250 (for advertising expenses) sounds reasonable. He said the starting rate was $4,166 per year in the first year, and $4,401 in the fourth year.

Mr. Garzia replied yes. He said he spends approximately $10,000 a year on outside advertising. He said the newspaper ads work the best for him. He said he does approximately three to four times the amount of business that the applicant does. He said Washtenaw County is considering opening another golf course in Milan. He said this will be a drain on the public in this county.

James Mulvany, Professor for Agricultural Economics, stated he would like to examine the issue of the economic viability of this land for the agricultural uses permitted under the Zoning Ordinance. He said he will limit his remarks to Section 10.02 (of the Zoning Ordinance), Items D, E, F, and G, which are permitted uses. He said his definition of the viability is; are the potential revenues from this land significant enough to cover the direct cost of production, property tax, interest on working capital, a justifiable return for labor, and a coverage for the recapitalization of non-land investments. He said he developed a method of doing this for the Michigan Department of Agriculture. He said when people find that their land is no longer agriculturally viable, they can have their land prematurely removed from the public act agreements. He said he is also developing a procedure for appraising land for agricultural use. He said the appraisers needed to know the true agricultural use value of the land, to determine what the development rights were worth.

Mr. Mulvany stated he will be highlighting the problematic agricultural uses for the land. He said he would like to start with specialized livestock farming. He said the trends of livestock are for very large-scale operations. He said very few dairy farms exist with less than two hundred (200) cows. He said most of these farms will have 600 to 900 acres, with an animal waste management facility. He said forty-six (46) acres is a very small parcel for most agricultural uses. He said that the forty-six (46) acres would have to be attached to some larger operation.

Mr. Mulvany stated there is some cash green vegetable production happening in this County. He said specialized crop farms growing corn, soybeans, and wheat are typically 600 hundred acres+. He said many range from 2,000 to 4,000 acres. He said a lot of farms have disappeared in this Township. He said the farmers who do work land in this area are probably based a number of miles away. He said the farmers probably cash lease the land, rather than own it. He said the farmers cash lease the land for far less than the property taxes. He said when you look at viability you should not only look at agricultural uses. He said cash green vegetable production would not be viable. He said because this is a golf course there has been a lot of excavation on the site. He said the original soils have been altered.

Mr. Mulvany stated other possibilities are riding stables, kennels, and breeding fur-bearing animals. He mentioned raising fur-bearing animals has become less popular. He said there are two types of riding stables; boarding and breeding for racing purposes, and pleasure horse stables. He said he does not have a data bank on these types of uses, in terms of how they could make this land profitable. He said it is problematic to use forty-six (46) acres for these enterprises. He said extensive market analysis would have to be done to see if a pleasure horse stable would be viable. He said the horse racing business is a waning business. He said kennels require very little land and this use would be forcing the applicant to make viable use of two or three acres.

Mr. Mulvany next discussed the growing of plants, trees, and nursery stock. He said the land may be adaptable and suitable for this use. He said why would someone locate this use on this site when there is a considerable amount of other land available for lower tax rates. He said in Ottawa County there are intensive tree and landscape operations. He said one of the operations employs ten thousand acres. He said this operation is in the process of closing down because landscaping plants are being grown out of the state. He said Great Lakes Roses, south of Belleville on Willow Road, is a very viable business. He said it is located on a five (5) acre land base and it only uses 2 ½ acres for greenhouses.

Member Stagg stated if the business only uses half of the land, that would be very profitable.

Mr. Mulvany stated this would imply that they could use the entire forty-six (46) acres of land for growing roses. He said the owners of Great Lakes Roses have had their hands full with 2 ½ acres, and seven (7) employees. He said there is one ten acre strawberry you-pick operation south of Bellville. He said ten acres of strawberries is a large operation. He said forty-six (46) acres would be too large. He said the you-pick market is also a waning market.

Mr. Mulvany said it is questionable whether this site’s soils will be suitable for sod farming. He said there are some sod farming operations in Wayne County, although the bulk of the operations is in Ingham County. He said this use is problematic because it requires irrigation. He said this would require an eight (8) to ten (10) inch well that produces 300 to 400 gallons per minute. He said the Township officials may be concerned with what this would do to the water aquifer draw in the area.

Mr. Mulvany added that these are the reasons that the other uses are problematic. He said if the applicant is denied the opportunity to change the use will this site remain a golf course or will it be for agricultural use. He said there are very few agricultural opportunities.

Member Brostrom stated it never crossed his mind that this site would revert to an agricultural operation. He said Mr. Mulvany did not mention organic gardening which is a big deal and very popular in Ann Arbor. He asked if this use would be viable.

Mr. Mulvany stated it would be hard to obtain data on the viability of this type of use. He said it is not commonly done in Michigan. He said this food is produced under very strict regulations. He said if you can grow these products successfully, organically you can increase the retail price. He said it is highly unlikely that it would cover the cost of the property tax.

Ken Chutkins, Farmer, stated his family has been in the farming business for 150 years. He said his family grows corn, wheat, soy beans, and trees. He said they use to farm 2,200 acres and now they farm less than 600 acres. He said five (5) to ten (10) acre zoning is what is hurting the farmers in Michigan. He said they use to lease thousands of acres from other landowners. He said his cousin use to have a large dairy operation in Superior Township and they got shut down because the neighbors sued over the odors. He said the state was going to fine his cousin $10,000 a day if they did not spend 2 million dollars to control the odor.

Mr. Chutkins stated he has friends who have sod farms. He said one is in Lyon Township and the other is near Stockbridge. He said the soils would not be feasible on this site because you need organic soils. He said his brother and him raise 100 acres of nursery stock. He said it is all under irrigation. He said they may need to abandon one seventy-seven (77) acre site because of the regulations the state is imposing onto wells. He said Mr. Mulvany underestimated the amount of water need to grow trees and plant material. He said it takes approximately a 1,000 to 2,000 gallon an hour well. He said you have sewer and water on this site and it would make no sense to use the site for agricultural uses. He said there are a lot of large trees on the site that would need to be cleared to have a tree nursery operation. He said you would also need to use pesticides on the site. He said there are three (3) neighbors near one of his operations that are concerned with the use of pesticides.

Member Grosshans asked Mr. Chutkins how Ann Arbor passing the greenbelt affected him.

Mr. Chutkins stated Ann Arbor Township recently put out bids to three farmers to buy their development rights. He said they all rejected them. He said the land values are much higher than the offering.

Member Grosshans asked if this property is something the greenbelt would be looking at.

Mr. Chutkins stated he is not sure. He said he wanted to get on the committee, and they would not put him on it.

Tom Manchester, attorney for Hickory Woods, stated he was involved in many of the discussions in regards to finances. He said this golf course was built forty (40) years ago in 1964. He said the fees are $10 for nine holes and $15 to play nine holes twice. He said its market is a high handicap golfer who cannot afford to play at a golf course with all of the amenities. He said there is a limited audience for this golf course. He said he has represented other golf courses, and the Eastern Michigan University Foundation, which owns Eagle Crest Golf Course. He said in 1988 they had a meeting because the course was losing golfers. He said they did a study and found there were too many golf courses in southeastern Michigan. He said he has been a member of the Washtenaw Country Club for twenty-eight (28) years and sat on their board for eight (8) years. He said two years ago they were down to one hundred (100) members out of three hundred (300) and they had to cut their admission fee to $1,000.

Mr. Manchester stated Hickory Woods is not subsidized by public dollars and it’s expenses cannot be paid for by those who own it. He said you cannot put a restaurant there. He said Dennis Sarus, restaurant owner in Ann Arbor, stated he would not put a restaurant on this site. He said three (3) years ago he sat down with Mr. Fulton to discuss what to do with the business. He said they decided to raise the fees from $10 to $15. He said two months later the fees went back down. He said most people who play golf in Washtenaw County are paying $45 and up to play eighteen holes.

Mr. Manchester stated they have submitted the revenue stream since 1999. He said in 1999 it was $308,000, in 2000 it was $317,000, in 2001 it was $284,000, in 2002 it was $255,000, in 2003 it was $210,000, and it is down ten thousand dollars this year. He said Mr. Fulton and his partners purchased this course in 1984, and he has managed it since then. He said Mr. Fulton has been contacted by developers since 1984 to buy the property. He said in 2001 Mr. Fulton stated he needs to sell the business and get out. He said the applicant had to get another job outside of the golf course, and by saving his salary they were able to keep the course open. He said if the applicant loses $20,000 this year he will be losing half of his savings.

Mr. Manchester stated if this land is sold to anyone other than a developer the debt service will not be paid. He said the applicant owes more money on the property than he can sell it for as a golf course. He said no one will buy the golf course because they will be buying it on the income stream, and if it is bought on the income stream they will be paying $50,000. He said the applicants mortgage is over $400,000. He said the applicant has tried other uses. He mentioned a study was done on cross country skiing, and they determined that Ann Arbor was charging $2 per person. He added that if you consider the cost of rental skis, and the equipment to make the trails, the applicant could not pay for the ski area. He said no developer has contacted the applicant wanting to do any other use than a residential development.

Mr. Manchester stated they are down to whether the ZBA will allow the applicant to make use of the property by selling it for development, or make him wait until the business goes under and the bank deals with developers. He said if the neighbors want the applicant to lose his investment and his livelihood because that is the only alternative to development then shame on them. He said the applicant has allowed the Township to run a program for children at this course, for no charge. He said the Township needs to deal with the reality that the land needs to be used now, since two or three years more will run the applicant out of business.

Chairperson Naik asked about the applicant’s mortgage.

Mr. Manchester stated the applicant owes $400,000. He said the applicant’s monthly payment is $4,400.

Member Grosshans asked how much play this golf course gets a week.

Jeffrey Fulton, Owner of Hickory Woods Golf Course/applicant, stated during the week they get 50 to 60 players and during the weekend they get 120 to 130 players.

Member Stagg stated if cross country skiing is offered close to the two subdivisions it may be a greater value.

Mr. Manchester stated only one person who lives in the subdivision near this property is a member of the course.

Member Stagg stated this course may not be advertised as well as it should be. She said she and her husband went to look at the site and it was hard for them to find it. She said the residents here tonight are stating that they did not know that the course offered a membership.

Member Grosshans asked how much play is needed for the applicant to get ahead.

Mr. Manchester stated they would have to figure that out based on today’s market. He said then they would need to do a cash flow for the next five (5) years. He said based on the golf industry in Michigan, this is not going to happen.

Member Brostrom asked if this land has every been for sale in the past four (4) years.

Mr. Manchester replied no. He said the present listing was brought about by a contact from the broker. He said the developer came to the applicant, not the other way around.

Mr. Fulton stated he bought this land in 1984. He said he met with Mike Morehouse who was with the Pittsfield Township Parks and Recreation Department, and he stated they would be interested in the land. He said this is the only time he offered the land for sale. He said he made an off-the-cuff remark in 2000 to the Township Supervisor. He said the land has never been listed, and he never looked for a purchaser. He said his partners wanted him to sell the land fifteen (15) years ago. He said it has gotten to the point where they are not making money and he has had to take out a home equity loan to pay the taxes, the mortgage, and the payroll.

Member Grosshans stated there are other nine hole courses that seem to be viable such as Georgetown.

Mr. Fulton stated there is a nine golf course in Pine View being sold to a developer. He said Pine Creek is also being sold to a developer.

Member Brostrom asked Mr. Fulton how he advertises.

Mr. Fulton stated he advertised through Comcast cable and the Ypsilanti Courier. He said he was on WAAM radio’s sports program every Sunday night, and did Fulton’s Fabulous Fact, and he would give away free golf. He said the advertising expense for Comcast cable has not raised a lot through the years.

Member Stagg asked why the residents were not aware of the membership.

Mr. Fulton stated he has offered memberships since 1980. He said he advertised this in the newspaper, although he has never done flyers. He said he did not do flyers because he was in a lawsuit with the developer of Ashford Village.

Member Stagg asked if Mr. Fulton did not advertise in Ashford Village because of the developer.

Mr. Fulton replied yes. He said the neighbors from the subdivisions allow their dogs to “do their stuff” on the course. He said the neighbors have cut down his trees because they cannot see the course. He mentioned because there is no fence between the properties he allows the grass to grow a little for rough. He said the ruff keeps the golf balls from going into the neighboring yards. He added that the neighbors mow this area. He said he has one member from Ashford Village, and no members from Hickory Pointe. He said the membership is $500, and it is posted inside the clubhouse.

Member Grosshans asked how many members are needed for the business to be viable.

Mr. Fulton stated he never knows what the costs are going to be. He said after 9/11 liability insurance went from $5,000 to $13,000.

Member Grosshans asked what the break even point is.

Mr. Fulton stated he needs to make approximately $1,500 a day on the weekdays and $2,500 on the weekends.

Mr. Jacobs stated the golf course is not a viable enterprise. He said conditions have changed. He said now the ZBA needs to determine what the density should be. He said this land is surrounded by subdivisions with 2.5 dwelling units per acre and an enterprise that has five (5) units per acre. He said what they are planning is consistent with what is in the neighborhood. He said from a planning perspective this meets all of the criteria of good planning.

Craig Welch, Wexford Homes, stated he was quite active in the greenbelt campaign. He said they had a debate at Washtenaw Community College that was hosted by Bill Rusten. He said when you look at the points put forth by the governor’s task force, they were looking for preservation of open space and the construction of higher density housing. He said this site is an infill site that needs housing. He said Washtenaw County has to provide 65,000 units of housing over the next twenty-five (25) years. He said this site is not within the greenbelt that was passed by the Ordinance. He said Ann Arbor Township offered the farmers between $12,000 and $18,000 an acre for the land. He said they told the public they thought they could buy the land at $10,000 to $15,000 per acre. He said he thought the numbers would be between $30,000 and $50,000 per acre. He added that the farmers are requesting $40,000 to $50,000 per acre. He said the traffic count on Crane and Munger Roads is approximately 1,500 trips per day. He said Michigan Avenue has approximately 47,000 trips per day. He said this does not support a high traffic count. He said when you look at sites that have water and sewer, high areas of development, and paved roads the market value will be $40,000 to $50,000 per acre. He said this land will sell for approximately $2.4 million.

Mr. Jacobs passed out a break down to the ZBA members.

Mr. Welch stated there is a hardship and the alternative uses for the land are not compatible. He said they assume the sale price for the units will be $250,000. He said the plan submitted is for detached condominiums. He said they have tried to hold the homes off of the property lines. He mentioned they did not affect the four (4) acres of woodland. He said there is a four (4) acre park area that was adjoining the utility easement for Ashford Village. He said the single detached condominiums will be 1,500 to 1,900 square feet. He said people are looking for ranch style homes. He said 116 homes represents 2.5 units per acre, which is consistent with the neighboring subdivision. He said there is a possibility to construct 105 conventional sites and the density will be less than 2.5 dwelling units per acre.

Mr. Welch stated the land costs will be $2.1 million. He said they then have land improvement costs and engineering costs, construction costs of the homes, and a gross margin of 20%. He said the 20% will be used on construction overhead costs, job costs, financing costs, marketing costs, and warranty costs. He said they are building these type of units as attached in Saline, Howell, and Scio Township. He said at 75 sites the project loses approximately $25,000, and with 90 sites the net profit margin is approximately 3.5%. He said with 105 sites it is 6.19% net profit, and at 116 sites it is an 8% profit. He said industry margin profits run between 5% and 8%. He said the number of home sites is drive by land costs and the sale price. He said they are not asking for a density that is inconsistent with what has been granted north and south of this property.

Mr. Welch stated when he made a presentation before the Planning Commission and the Township Board, there were doubts about whether the applicant was really losing money. He said the financial data was provided. He said the applicant has owned the golf course for over twenty (20) years and he was making money for many years. He said the applicant is the same business man now that he was then. He said the golf course business is in decline everywhere. He said it was recently published in the Ann Arbor News that the Ann Arbor City owned golf courses have lost 1.2 million in the past two (2) years. He said when the City of Ann Arbor is losing money they are losing money on the basis of operating revenue not on overlying debt.

Mr. Welch stated Pierce Lake (Chelsea, Michigan) was built for $6 million dollars of taxpayers money, and the course is not making money. He said he does not have access to the books for Stonebridge Golf Course, but he knows people in the industry that know the course is not making money. He said there are too many golf courses in the County. He said some golf courses need to go for others to survive. He said this course cannot make it. He said when this course was created the land was agricultural land. He said the Township zoned this property to be used as a golf course. He said the Township has chosen to extend water and sewer services here, and provide relief for the farmers around the area. He said he has not considered alternative uses, and they are proposing residential. He said the applicant does not have the money to build new facilities.

Mr. Jacobs stated there are only four (4) elements to consider. He said the first is that the property cannot be used reasonably in a matter consistent with the existing zoning. He said this has been demonstrated. He said there is an undue hardship that is not the applicant’s fault. He said the circumstances have changed. He said the other principal uses are not reasonable or appropriate and they do not serve the site from an economic standpoint. He said the landowner’s plight is due to unique circumstances and not to general conditions in the neighborhood that may reflect the unreasonableness of the zoning. He said the same condition in play is not shared by everyone in the neighborhood. He said it has to be unique to his applicant not to the neighboring residents. He said the applicant cannot use the property as it is currently zoned. He said he can use it for the principal use of residential development.

Mr. Jacobs stated they need the ZBA’s help to find a use variance to allow for a density that is reasonable, appropriate, and provides an investment backed opportunity. He said a use authorized by the variance will not alter the essential character of the locality. He said Zoning Administrator Mark Spencer and Planner Carl Schmult stated that if they had a development such as being requested and planned, the essential character of the neighborhood would not change. He said they have Ashford Village, Hickory Pointe, and Arbor Meadows that are existing subdivisions near this site. He said the hardship is not the result of the applicant’s own actions. He said there has been testimony that the golfing industry is failing. He said there are various golf courses that are failing today. He said the testimony has indicated that nine (9) hole golf courses are not equipped to meet the demand today and compete with eighteen (18) hole courses. He said there has been a change of circumstances and the applicant had nothing to do with this. He said the applicant is asking for a use variance consistent with the site plan that was presented. He said they are asking that the density granted is similar to the neighboring properties at 2.5 units per acre. He said the property is serviced by utilities and roads. He said there will be no detriment to neighboring properties by the construction of the site.

Member Brostrom stated he would like a response from staff on the estimates received from the applicant.

Chairperson Naik requested a detailed response from staff on all of the information presented.

David Egeler, 5407 Crane Road, stated he is the one landowner that will be affected the most, based on property footage, by the proposed request. He said he purchased his property knowing that the golf course would not be there long-term. He said the property has been set up by the Township to have sewer and water hookup. He said there is green space in the presented plan. He said you cannot have a golf course with neighborhoods surrounding it. He said there will only be a hand full of people affected by the development. He said it will be good in the long-term for the Township. He said the applicant should be allowed to sell this course if he chooses to.

Karl Neumaier, 5966 Cottonwood, stated he was on the Ashford Village Homeowners Association Board until recently. He said they talked about the proposed development, and the homeowners agreed that they did not want the golf course changed. He said the roads, and sewers were mostly paid for by the homeowners in Ashford Village and Hickory Pointe. He said the golf course was exempt from paying for this because it was considered to be a hardship on the golf course. He said he agrees that the golf market has changed. He said there is an over supply of golf courses, although supply and demand have a way of working themselves out over time. He said the question is, will this course be viable when the demand returns.

Member Grosshans asked Mr. Neumaier if he plays golf at this course.

Mr. Neumaier replied yes. He said he has played twice this year. He said it would be great to market this course for moms, dads, and their kids.

John Norton, 4777 Sycamore Drive, stated there have been a lot of presentations tonight, although there were not a lot of facts or data presented. He said they claim that the neighborhood has changed around the golf course. He said he does not believe there are a lot of facts to make that claim. He said in order to make a golf course work you have to have people, and this course has people surrounding it. He said a lot of the courses in Washtenaw County have houses built around them, and this makes the course appealing. He said the proposed plan is not consistent with the Master Plan. He said the Master Plan was set forth by the Township and the community members, and approving this plan (variance) would be going against the people.

Mr. Norton said you can look at the four “P’s” of marketing which are product, place, promotion and price. He said the price is reasonable, but with respect to product, there have not been a lot of improvements made to the course. He said you have to make improvements to a business to keep it going. He said with respect to place, there are five hundred to six hundred homes around this course. He said there are a lot of potential golfers in the neighborhood, and there are a lot of families with children. He said the owner of the course could promote the business to the neighbors. He mentioned he sponsored a night golf tournament last year at this course. He said there was a letter from the Washtenaw County Commissioner, Robert Brackenbury, to the Planning Commission not supporting the rezoning. He said other uses could be indoor/outdoor soccer fields, basketball courts, hockey rink, driving range, swim clubs, or a tennis club. He said ninety (90) percent of golfers have a handicap over 100, and these are the kind of golfers who golf at this course.

George Belskus, 4755 Sycamore Drive, stated he has lived in Ashford Village for the past five (5) years and he has never received a flyer. He said he plays this course a few times a year. He mentioned that his wife is interested in taking golf lessons, and this may be something the owner should consider offering. He said he is against the rezoning, and he believes that nine (9) hole golf courses do have a niche.

Richard Lintott, 4642 Walnut Court, stated he is opposed to the rezoning. He said changing the golf course to housing will change the character. He said the area does not have a high percentage of recreational space. He said there is an area being cleared on Munger and Textile Roads for a large development. He said the nine (9) hole course is a reasonable use for the area. He said he does not think the course has been advertised by the owner enough. He said other golf course owners here tonight mentioned they did not have success advertising on cable television, they had success advertising at their courses. He said everything has been built around the Master Plan and this needs to be substantiated. He said even if the owner cannot use the land there is a market value for the property. He said no one is guaranteed profit on their investments. He said the owner knows he can make more money if he turns this course into a residential development. He added that this is a dollars and cents game. He said he is not convinced that this property should be rezoned. He said the Township does not owe (someone) a profit on a property based on a zoning change, just to benefit one individual.

Judi Lintott, 4642 Walnut Court, stated she opposes the rezoning. She said her concern is with all of the residents who paid a premium to abut the golf course. She said she paid a $15,000 premium for her lot to back up to open space. She said the residents on Sycamore Way, in Ashford Way, are probably paying a larger premium to back up to the recreational space. She said if the variance is granted she hopes the Township will have restitution for the residents who paid a premium, or have alternative recreational space near by.

Mary Cortese, 4701 Sycamore Drive, stated that neighboring residents provided sales information to the Township, at a prior meeting, that showed that some residents paid an $18,000 premium (for homes abutting the golf course). She said her property abuts the golf course and she paid a $7,000 premium seven (7) years ago. She said the applicant’s promise to keep the four (4) acres of wooded area is not a good promise. She said the wooded area near her property flooded, and the trees were removed. She said the facts presented were not consistent. She said if other courses are selling won’t this improve this golf course’s business. She said her church plays golf at this course every Saturday morning. She said the course looks the best it has in the seven (7) years. She said if the owner advertised more, he would get more memberships. She said the applicant has owned this property since 1984, but he has a $400,000 mortgage. She said she thinks the principle would have gone down in the past twenty (20) years. She said she has heard about the revenues, but not the expenses, and it sounds like the owner cashed out.

Steve Cortese, 4701 Sycamore Drive, stated he opposes the rezoning. He said approximately 90 to 100 people opposed the rezoning at committee meetings. He said when the applicant speaks of the 5.0 density of Arbor Meadows it does not apply because it is around the corner from this site. He said he relied on the open space when he bought his home. He said there will be an adverse effect on the neighborhoods. He added that the ranch style homes they are proposing are different from the homes in the adjoining subdivisions.

Member Grosshans asked Mr. Cortese how many square feet his home is.

Mr. Cortese replied 1,620 square feet. He said the homes in his subdivision reach about 2,400 square feet. He said the Comprehensive Plan was reviewed in a prior meeting and the applicant did not show up to this meeting to request a change in the zoning. He mentioned having a conservation with Mr. Fulton seven (7) years ago, and Mr. Fulton stated he would be selling the course when his children reach high school age. He said he questions the owner selling this course for financial need.

Bob Hogue, 4709 Sycamore Drive, stated he is opposed to the rezoning. He said he purchased his home 6 ½ years ago because it was near the golf course. He said he cannot believe that the applicant cannot make a profit. He said the applicant’s attorney stated the applicant was making approximately $200,000 a year for the last five (5) years, and his mortgage is $4,400 a month. He asked how much of a salary the applicant makes. He said it seems like the applicant is making a lot of money.

Sandy Hogue, 4709 Sycamore Drive, stated the golf course has not changed in the past few years. She said a person cannot run a business and expect people to come back to that business if changes are not made. She said if there was more marketing, the business may not be suffering. She said children create a lot of revenue for recreational activities. She said she would like to see this property saved for recreational use, and a variety of activities installed for children.

Geraldo Uytingco, 4345 Sycamore Drive, stated his home abuts the golf course. He said he did cut down some trees, as the applicant stated earlier, that were on his own property. He said he spent $8,000 to cut down three (3) trees and plant twenty-four (24) foot pine trees that are equivalent to the ones on the applicants property. He said he approached the applicant to get a window repaired that was hit by a golf ball, and the applicant failed to return his calls.

Member Grosshans stated the golfers pay for the damages.

Mr. Uytingco stated the applicant has brought a lot of professionals who deal with real estate here tonight. He said they have been paid by the lawyers or commissioned to do so. He said the applicant has not tried to talk to small developers such as Joe Grammatico. He said Mr. Grammatico has been known to develop smaller acreage single-family houses. He said the applicant could break down the property to four ten (10) acre lots, and build executive homes on this site. He said there are other alternatives. He said the applicant has not marketed this property for development by means of other avenues. He said the applicant could work to create common space, or provide a buffer with the existing land for the neighboring subdivisions. He said the property could be used for a multi-use. He said the forty (40) acres could be divided among six (6) to seven (7) different businesses. He said several families are looking to have five (5) or ten (10) acres.

Mr. Uytingco stated the applicant could deal with his affairs with public assistants rather than a lawyer. He said Wayne State University offers extension courses for running a business. He said Wayne State offers free marketing for three (3) years if the business owner attends the class. He said Mr. Fulton and his partners could purchase the land to the east and make this course into an eighteen (18) hole course. He said there may be alternatives such as private clubs. He mentioned there is a variety of wildlife in the area. He said in other Townships they build $500,000 homes, and this may be an option for this site. He said he can see the stars at night from his home, and this makes him feel like he is in the country. He said there is a subdivision being developed at Textile and Munger Roads, and also 800 to 900 homes being developed in Milan.

Jim Pryce, 5970 Cottonwood, Ashford Home Owners Association President, stated the homeowners in Ashford Village are against the rezoning. He said he plays the course approximately six (6) times a year. He said it is hard to play at the course when he wants to because it is so busy. He added there is a lot of wildlife on the course. He said he has always enjoyed the golf course and would like to see it stay a recreational site. He said in the winter when the retention ponds freezes in this subdivision, there are a lot of kids and adults playing hockey. He said he has to rent time to play hockey at 2 a.m. because it is so busy. He said there are alternative recreational uses for this site. He added that he is opposed to his rezoning.

Mary Paratto, 4659 Sycamore Drive, stated she is a new resident of Michigan and to Ashford Village. She said she choose this house because it is near the open space and it is private. She said she likes the idea that there is a recreational use behind her home. She said she plays golf two (2) to four (4) times a week. She said she disputes the statement that golfers are only leaving Michigan. She said the proposed sale price of $250,000 for these condominium units seems unrealistic.

Chairperson Naik asked Ms. Paratto if the prices seem low or high.

Ms. Paratto stated the prices are too high for a freestanding condominium.

Charlene Calcagno, 4591 Nutmeg Drive, stated she is new to the area. She said there was a two (2) acre minimum to build where they use to live. She said she is concerned that the property was not marketed as a golf course. She said this course was marketed for development. She said she feels bad that Mr. Fulton is not making a profit. She said the economy may turn around. She said she would like the ZBA to consider that the traffic around this site is brutal. She said with more homes there will be more traffic.

Judi Lintott, 4642 Walnut Court, stated that the neighbors have emphasized that they want the golf course to succeed as a golf course. She said the neighboring residents have a lot of marketing experience. She said the neighbors could sit down with Mr. Fulton and share ideas with him. She said she is an Editor for the Michigan Municipal League magazine. She said she receives press releases from the American Society of Golf Courses, and the golf business is viable. She said other golf course owners have stated they spend $10,000 in advertising, with ads in the Ann Arbor News and the Detroit Free Press. She said the $10,000 may not include the newspaper ads, because it costs $1,000 to run an employment ad in the Sunday newspaper.

Member Grosshans stated that course owner was publishing an ad in the Thursday Ann Arbor Newspaper in a spotlight section.

Ms. Lintott stated that when she drives by the golf course on the weekends the parking lot is full. She said she learned with her church that if there are not enough parking spaces people will not attend. She said her church increased the parking and the number of people who attend the church went from 400 to 750 in five (5) years. She said she knows of people who are looking for ten (10) to twenty (20) acre residential sites.

Chairperson Naik stated the public hearing is going to be postponed, and another meeting will be scheduled.

Motion by Member Grosshans, supported by Member Brostrom, to postpone the public hearing until the next meeting.

MOTION CARRIED

7.0 Zoning Administrator’s Report

Zoning Administrator Spencer and the Members discussed scheduling future meetings.

The Members and staff agreed to reschedule the meeting for ZBA #04-04 Mohamed

Aly-Khalafalla for July 19, 2004 at 6:30 p.m., and ZBA #04-03 Fairwood Green for

July 20, 2004 at 6:30 p.m.

8.0 Member's Report

None.

9.0 Secretary’s Report

None.

10.0 Chairperson’s Report

None.

11.0 Approval of Prior Minutes

11.1 None.

12.0 Adjournment

Motion by Member Resha, supported by Member Brostrom, to adjourn the meeting.

MOTION CARRIED

Chairperson Naik adjourned the meeting at 11:50 p.m.

____________________________________________________________________

s/Alayna Stagg, Secretary October 11, 2004