Golf Inc - August 2008 - (Page 33)

Several newer government-owned properties interviewed had to dip into the general fund to make golf courses work initially. In 2003, Anne Arundel County (Md.) partnered with the Maryland Economic Development Corp. to build a 36-hole golf complex, Compass Pointe, and ended up spending $24.8 million, secured by revenue bonds. In the middle of the has different expectations.” Chambers Bay is certainly an example of that, according to Tony Tipton, project manager for Pierce County. In the early 1990s, the county approached owners of a sand and gravel mine about buying land to add to the site of a nearby wastewater treatment plant. But the mine owners wanted to sell the entire 610-acre heavily degraded site. need. They’re not structured to run a business for profit. But profit isn’t always the goal. A lot don’t expect courses to pay off immediately. They take a longterm view.” “From our perspective, these courses can bring a lot of value to a city. Some don’t expect to pay off the cost right away, and every city or county has different expectations.” Steve Skinner, CEO, KemperSports project, the Economic Development Corp. ran into financial problems and turned the golf complex over to the county, said Michael Beard, business manager for recreation and parks. “The debt was secured by money generated by the course, but for the first couple years, it was not a big cash cow, and we’ve had a struggle keeping up with debt service,” Beard said. Sometimes the county has to make up the difference with the general fund. Indeed—although rounds increased by 12,000 and Compass Pointe earned over $800,000 in net profit in the last fiscal year, the heavy debt service created a $500,000 shortfall for the county. Despite the financial pain, many cities argue that they are not just creating recreation and big debts when they build a golf course. Government officials have other goals, including preserving open space, creating new access to a waterfront, raising property values of homes, and attracting new businesses and tourism. “From our perspective, these courses can bring a lot of value to a city,” said Steve Skinner, chief executive officer of KemperSports, which manages 40 municipal courses or clubs, including Chambers Bay, The Crossings and Desert Willow. “Some don’t expect to pay off the cost right away, and every city or county The county decided to move ahead to get access to the property on Puget Sound. It was a priceless location that needed heavy reclamation to make it healthy again. Some 250 acres were used for the course; the rest will provide beaches, trails and park space for residents. “There was very little waterfront access in the area before,” Tipton said. “The project has been very well received by the public.” “We’ve seen a lot of municipalities looking at golf to preserve green space,” said Joe Goodrich, senior vice president of Billy Casper Golf, which now numbers 55 munis among the 95 clubs it operates. “Many government agencies are also looking at golf as part of a destination package that can add ancillary value to a community for attracting hotels and restaurants.” Once governments have invested heavily in their new munis, many move to hiring outside firms for management, like Billy Casper and KemperSports. “In a lot of cases, munis choose to do so in order to control labor costs. If they use their own employees, the benefits and retirement plans are more costly than what you find in the golf business,” said Goodrich. “Sometimes they don’t have the experience to run a business; they don’t have the marketing skills they August 2008 www.GolfIncMagazine.com 33 http://www.golfappraisers.org http://www.golfappraisers.org 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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