The Pellucid Perspective - March 2011 - (Page 6)

environmental credits Courses can take environmental credits to the bank Courses may be missing opportunities to turn creeks and ponds into revenue streams By Jim dunlap oday’s golf course owners find themselves doing what military strategists generally advise against – fighting a two-front war. On the one hand, they stay up nights trying to squeeze more revenue from rounds, memberships and F&B or pro shop business, while on the other side of the ledger they search desperately for ways to cut costs associated with those critical profit centers. Ironically, many may be overlooking a potential ally in the very core of their business, the golf course itself. While course developers and owners have chafed for decades, more or less privately, about the various environmental constraints impacting their development or maintenance plans, today’s “green” movement is actually offering some financial in- T centives for owners. Environmental “banks” which serve as a clearing house for credits earned from the creation, preservation or conservation of wetlands, nutrients, animal or plant habitat or carbon can provide new golf course revenue streams in the form of either cash on the barrelhead or tax credits. How much cash, you ask? Ron Boyd, president of the Williamsburg Environmental Group consulting firm in Virginia, said wetlands credits in the Mid-Atlantic area range from $20,000 to $90,000 per (acre) credit, while habitat or conservation credits are going for $45,000 per credit acre. Prices vary nationwide depending upon the universal law of supply and demand. Don Ewoldt, founder and CEO of Indiana-based Wetlands Mitigation Solutions, said that while a wetlands credit in the soggy but development-challenged coastal Louisiana rice farming vicinities may go for $3,000 an acre credit, if you have a qualifying wetlands area on your property in the Chicago area, you could be looking at a payoff of around $170,000 per credit acre! While the rewards may be attractive, the process of qualifying for and receiving approval for any of these environmental credits is frequently time consuming, and will involve some expense. In most cases, owners will need an environmental consultant to inspect the area in question and advise on its eligibility and the documentation necessary to file for the credits with the appropriate regulatory agency or agencies. There will also likely be some ongoing monitoring and reporting to ensure that standards for acceptance continue to be met. In many cases, however, experienced consultants will have a fairly good idea of the standards and requirements for approval of the major agencies, such as the Army Corps of Engineers or Environmental Protection Agency. Environmental incentives on the rise It is certainly not news that concern for the environment is a hot-button issue that will continue to impact not only new development but existing businesses in most industries. (A San Francisco municipal golf course is currently facing a serious challenge from local environmental groups over its pumping of stormwater runoff from slow-draining play areas that threatens habitat and breeding areas for endangered frogs and snakes. If forced to stop the practice, the course could lose much-needed play days during the rainy seasons). On the other hand, regulatory agencies are beginning to add a carrot to the stick of fines or permit refusals that they have traditionally wielded to force 6 The Pellucid PersPecTive March 2011 http://www.clubcar.com http://www.clubcar.com

Table of Contents for the Digital Edition of The Pellucid Perspective - March 2011

The Pellucid Perspective - March 2011
Contents
A Look Back at 2010, a Fitting End to a Fitful Decade
Courses Can Take Environmental Credits to the Bank
Feb 2011 Ytd Weather Impact, Jan 2011 YTD Utilization
Can Alternative Golf Change Golf ’s Fortunes?
Guess Who’s Coming to Dinner?
Comings & Goings
Boston, Ma Core Business Statistical Area (Cbsa)
The State of the Game – Really?

The Pellucid Perspective - March 2011