Golf Inc - August 2008 - (Page 32)

That’s what happened to Dinuba, Calif., an agricultural community between Visalia and Fresno in the San Joaquin Valley. The city had been seeking a profitable way to use two to three million gallons of recycled wastewater from its treatment plant. “Initially, we were looking at ways to get rid of the water by farming alfalfa,” said Ed Todd, Dinuba city manager. “But a citizens group came to us and wanted to use the land to add value to the community. They suggested building a golf course. There were 75 people who served on a committee in all, and they carried the project forward.” course, designed by John Fought, also has “the largest practice area, 35 acres, on the West Coast,” Todd said. The plan was hatched during the recent housing boom, and the city aimed to help fund the project by selling off 100 acres around the course to developers. But along came the real estate slowdown. So far no builder has bought any of the land. But once the housing market rebounds, the city expects to sell off its subdivision sites. Although other courses are nearby, the city hopes to book from 37,000 to 40,000 rounds a year. A course in Visalia, 25 minutes away, now does 80,000 rounds Officials in Carlsbad, Calif., say that The Crossings at Carlsbad won’t break even this year and probably won’t for the next few years despite charging up to $150 a round at peak times. Dinuba paid for the site with redevelopment agency and other local funds. Another $26 million is being used to build a clubhouse, restaurant and maintenance facility. The 7,500-yard annually. The city needs 33,000 to break even on expenses, Todd said. A similar version of Dinuba’s plan has worked well for Palm Desert in California’s Coachella Valley, even though 32 Golf Inc. August 2008 golfers can find a competing course on every other corner in the valley. In the late 1990s, said Carlos Ortega, city manager of Palm Desert, the city set out to build a golf resort to attract developers and business as a way of generating revenue and tax income for the city. Michael Hurdzan was the lead architect for the golf layouts. Desert Willow did attract investment. Four sites surrounding the fairways that were set aside for developers were sold and 1,800 hotel rooms and timeshares were built. “The resort was a tool for the city plus an amenity for residents,” Ortega said. “It turned a profit from day one.” But changes in the marketplace now mean that it may take years for a course to gain a foothold, particularly in Southern California, already loaded with places to play. After the initial flurry of business shortly after The Crossings at Carlsbad opened in 2007, rounds have slowed down. “Through April, year-to-date, we had 17,710,” said Skip Hamman, special projects director for the ocean-side city of Carlsbad. “We’re hoping that it picks up during the summer. The goal is to get the number up to 60,000 a year.” The course will not break even this year and probably not for the next few years, he predicted. The city will make up the difference through its general fund. Much of the hefty price tag for this project was due to the fact that The Crossings went through numerous redesigns to meet the demands of the California Coastal Commission and other environmental agencies. Even though The Crossings charges high green fees — as much as $150 a round at peak times for non-residents — it can still steal rounds from other competing golf clubs. “Any golf course in the marketplace affects the competition,” said John McNair, vice president of golf for JC Golf Management. “All of Southern California is very competitive. We have three courses in the neighborhood, and we put a plan together to be ready to market ourselves in comparison.”

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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