Golf Inc - August 2008 - (Page 31)

? ? Hundreds of courses built in the ’60s and ’70s and decades before provided recreation and places where beginners could learn the game. Sometimes they were among the only public places to golf for miles around. But when the golf industry exploded in the 1990s, cities and counties across the nationa plunged into golf with new gusto, creating what some call the “nouveau munis,” with luxurious fairways and greens and prices to match. Now, their layouts by big names in golf architecture often rival those of the newest privately owned daily fee courses. Sometimes controversy haunts these projects: How much is reasonable for a city to spend and when does the price go over the line? Do these courses create unfair competition for neighboring forprofit courses? The list of hot new munis goes on and on: Carlsbad, Calif., home to some of the country’s most prestigious golf equipment companies, also owns one of the most costly municipal courses ever built. The city spent $68 million over almost 20 years on The Crossings at Carlsbad, a course that opened about a year ago. Pierce County, Wash., ran up a bill of $21 million to build Chambers Bay on Puget Sound after buying an abandoned sand and gravel mine for $33 million. The acclaimed course will be the site for the 2015 U.S. Open. The San Joaquin Valley community of Dinuba, Calif., with 21,000 residents, bought 350 acres at $6,000 an acre and then built a $26 million, 250-acre golf course plus clubhouse. The club will open this summer. Other luxury-priced, governmentowned courses have been built in Bolingbrook, Ill., and Anne Arundel County, Md. And the trend has caught fire with old, traditional munis as well. San Francisco invested $16 million in renovating he said. “That should be part of their Harding Park, soon to be the site of thinking when they go out to get bond the Presidents Cup competition. An $8 packages for capital. They also have to million clubhouse was built as well. consider the costs of operation.” “I don’t know why some cities put so much money into it,” said Larry Hirsch, president of Golf Property Analysts, an appraisal firm in Harrisburg, Penn. “Cities are not golf- course savvy. They don’t have to spend tremendous amounts of money, even to build a ‘wow’ course. Taxpayers don’t know when a new course is being built what it should cost: $12 million, $15 million?” But Sandy Tatum, former Chambers Bay president of the USGA and the leader in the drive to renovate gument Harding Park, makes a strong argument for what munis can mean to a city and For communities thinking about the future of golf. building a golf course, he suggests: “I’ve been one of those lucky people — Get someone to do a market study to who have been able to play wonderful, see what golf is there now and what could marvelous courses all over the country,” be there in the future. The study should said Tatum, a longtime San Francisco consider the demographics of the area. attorney. “But they have been virtually all — Ask yourself how many rounds private. That’s why I’ve been distressed you can do. In a market study, there is to see all these wonderful older munis, opportunity to find out how many rounds like Harding Park, that are suffering you will do at various pricing levels. Run and deteriorating. I played in 40 city that out, and see what the probability of championships at Harding, and it caused financial success will be. me to react when I saw it turning into a — Talk to other communities who have weed patch.” run courses about their experiences. Tom Bruff, principal with Global — Consider other financing alternatives Golf Advisors of Dallas, doesn’t see a in partnership with private owners. For general trend of heavy overspending on example, he said, a city with available municipal or government-owned golf, land can find a golf course operator to “just isolated instances of high-end fund the building of a course if the city communities that want to provide golf as contributes the property or leases it to recreation for their residents and perhaps the owner. The city might ultimately provide other amenities.” have to meet the financial obligations if Bruff recommends that cities be careful the course fails, but the private party is about how much they lavish on these immediately responsible and takes on projects. most of the risk. “There’s a lot of competition among Other alternatives can involve funding golf courses, and cities should consider from other businesses, though sometimes that, not just the cost of the building,” those can be tricky to arrange. August 2008 www.GolfIncMagazine.com 31 llion 1 mi $2 http://www.harding-park.com http://www.golfprop.com/ http://www.golfprop.com/ http://www.thecrossingsatcarlsbad.com/layout10.asp?id=182&page=3854 http://www.chambersbaygolf.com http://www.globalgolfadvisors.com/ http://www.globalgolfadvisors.com/ http://www.GolfIncMagazine.com

Table of Contents Feed for the Digital Edition of Golf Inc - August 2008

Golf Inc - August 2008 Contents Editors Column Around the Industry: Big Green in Arizona Data Collectors Combine Forces GPSI Hires Chessler, Files Suit Americas Europe/Africa Asia/Australia Machrihanish Dunes Draws on the Past to Make History Again in Scotland Innovative Superintendent Finds Way to Keep the Nation's First Totally Organic Course Green Latest Clubhouse Designs Reflect Changing Lifestyles: It's All About Casual Camelback Conference Brochure More Operators Embracing Initiatives Aimed at Bringing Families Together on the Golf Course State of the Industry 2008 Muni Maddness? The Last Word

Golf Inc - August 2008

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