Elgin changing horses at Bowes Creek restaurant

Porter’s Pub at Bowes Creek Country Club may soon reopen as a joint venture between the City of Elgin and Carlucci Hospitality Group.

Councilmen will discuss a $420,000 service agreement Wednesday that would contract the company to operate Porter’s Pub starting May 1.

Twelfth Night Catering ran the pub at the city-owned golf course from September 2009 through January 2011, essentially as a third party renting the venue space from the city. When that didn’t work, Elgin officials decided to move in a new direction.

Based on the $420,000 proposed contract, Carlucci will manage the operations, including staffing the restaurant and bar. The city will pay for all the supply expenses like food, drinks and maintenance supplies. Revenues will go to the city.

Mike Lehman, director of golf operations for Elgin, said entering into this agreement will insulate the city from any future failures by operators like Twelfth Night.

“The fact of the matter is when you start a business, the first couple years you don’t expect to make money,” Lehman said. “This operator didn’t have the resources to handle that initial impact.”

Lehman said the golf side of the city’s business will be able to support the food side, a position restaurant-only operators did not have the luxury of being in.

Elgin is hoping to break even for the first couple years, then potentially make a profit.

If gross revenues exceed projections, the city will split the difference evenly with Carlucci.

Elgin Chief Financial Officer Colleen Lavery said that means Joe Carlucci, as the owner of the hospitality group, could see benefits beyond the management fee that is wrapped up in the $420,000 agreement.

“He has every incentive to do better than we anticipate,” Lavery said.

Lehman said the city is trying to brand Bowes as a place between lower price-point courses like the city-owned Highlands of Elgin and more expensive private clubs. He said Elgin is not modeling Bowes off any other course.

“We’re unique,” Lehman said. “That’s what’s really critical. We don’t want to find ourselves in the same problem area that all the other golf courses have.”

According to Lehman, the agreement with Carlucci will give Bowes the stability it needs to maintain a competitive advantage. Terminating the Twelfth Night contract left the city to run Porter’s Pub with a limited menu, hurting the club as a whole.

“The hospitality that we offer at Bowes Creek is a high end golf experience,” Lehman said. “The food element is really a support to the greater good of golf.”

Councilmen will discuss the service agreement with Carlucci at the committee of the whole meeting, which starts at 6 p.m. Wednesday in the council chambers of city hall, 150 Dexter Court.