Elgin may extend restaurant contract at Bowes Creek

Elgin’s golf operations have come under fire in recent months by some in the community looking for places to cut from the city’s budget.

Council members so far have remained committed to Bowes Creek Country Club and its attached restaurant, Porter’s Pub. They will discuss a 4-year contract with Carlucci Hospitality Wednesday night to continue running the restaurant.

If the contract is approved, the city would be responsible for paying Downers Grove-based Carlucci Hospitality $420,000 in 2012 to run Porter’s Pub — that includes paying salaries, buying supplies and marketing the business. The city would get all of the revenues up to $650,000 in 2012 and, for the most part, half of revenues beyond that.

The restaurant has to make $850,000 to be profitable next year, according to Mike Lehman, director of golf operations.

Lehman said the city’s golf fund is run as an enterprise fund and designed to balance its own revenues and expenses without help from the general or recreation fund. The goal is not to cost taxpayers money by running the golf courses and Porter’s Pub, which Lehman said is critical to creating the high-end “member for a day” experience at Bowes Creek on the city’s southwest side.

But the restaurant is its own entity, separate from the golf business. That is why it will remain open through the winter.

“In order to make this a viable business they need to be drawing from a customer base that goes beyond the golfing crowd,” Assistant City Manager Rick Kozal said.

The city hired Carlucci after encountering problems with its previous operator, Huntley-based Twelfth Night. The contract with Carlucci allows Lehman to have much more control over the restaurant and its operations. It also opens up the city to more risk.

In a memo to council members Lehman said the golf fund subsidy to Porter’s Pub will be $122,610 in 2012 and then go down to $50,000 for the following two years before being eliminated in 2015.

“This contract will guarantee a consistent operator within the community and provide a seamless transition of operations and risk from the city to Carlucci,” the memo said.

Several members of the Bowes Creek community spoke during the Dec. 7 council meeting in support of Carlucci’s management of Porter’s Pub as well as the city’s golf operations.

John Tomasiewicz said Bowes Creek Country Club is something other suburbs envy.

“Schaumburg and Hoffman Estates have worked 20 years to accomplish what Elgin has accomplished in two years,” Tomasiewicz said. “It’s a treasure in the golf community.”

Carlucci has been fighting an uphill battle since May, when it took over the restaurant. Its supporters point to good food and great management, asking the city to give it more time to become fully profitable.

Until that happens, Lehman plans to balance out the restaurant’s losses with the profits of the city’s other golf courses.

The council will discuss the contract during its committee of the whole meeting, which starts at 6 p.m. Wednesday in the council chambers. It will take a final vote during the council meeting, set to start at 7 p.m.