The Pellucid Perspective - October 2017 - 8

WWW.GOLFTHELAKES.COM

GOLF COURSE
REDEVELOPMENT

City nixes TopGolf deal in surprise move
Popular local muni course remains intact as TopGolf bid fails
By Jim Dunlap

J

ust when it looked as if the TopGolf phenomenon was
about to establish its long awaited beachhead in the nation's second largest market, the City Council in the Los
Angeles suburb of El Segundo reversed course and rejected the
entertainment center cum driving range's bid to build a facility on land currently occupied by The Lakes at El Segundo's
popular 9-hole course. Early this month, the Council voted 3-2
to turn down the TopGolf bid and instead to seek bids for improvements and enhancements to the dated but beloved 9-hole
course, driving range and clubhouse which has hosted junior
golf and local golfers for years.
The TopGolf deal, which included an approximately
$625,000 annual rent payment to the city, was torpedoed in part
by news of a similar offer to the San Francisco Bay Area city of
Burlingame that included a rent payment of nearly $1 Million
more than the El Segundo offer. Miffed by that revelation and
concerned that TopGolf 's footprint would cut into The Lakes'
acreage and reduce its viability as a revenue generator, three of
the five Council members turned thumbs down on the deal,
which had been at least five years in the making and seemed
headed for a TopGolf victory.
Unlike many municipal golf operations, The Lakes facility
had been paying its own way until recently, according to Craig
Kessler, the Southern California Golf Association's Director of

8 The Pellucid PersPecTive

Governmental Affairs. Kessler, an ardent supporter of municipal golf as both a recreational amenity and a pathway to lifelong golf participation, said that the course, driving range and
clubhouse at The Lakes had held their own until expectation
that TopGolf would soon arrive on the scene had resulted in
decreased maintenance and improvements to the facility in anticipation of changes that TopGolf might undertake. (Despite
Kessler's personal feelings, it should be noted that the SCGA
essentially remained neutral during the ongoing negotiations
between TopGolf and El Segundo officials). With the TopGolf
deal quashed for the time being, the city is reportedly considering seeking bids to upgrade The Lakes course and facilities.
TopGolf representatives were understandably unhappy with
the 3-2 vote against their proposal. A TopGolf representative
reportedly complained that the Council voted based on an
inaccurate interpretation of the TopGolf bid's value. He said
the total value of the bid was over $1.6 Million when capital
improvements and the dedication of recreational hitting bays
at TopGolf which represented a loss of $300,000 annually to
TopGolf were factored in. Nevertheless, perhaps still smarting
from a perceived lowball offer and perhaps swayed by community fears that TopGolf 's incursion would spell disaster for The
Lakes, the Council nixed the deal.
While the status quo will remain for the time being, it doesn't
October 2017


http://WWW.GOLFTHELAKES.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - October 2017

TOC
NGCOA casts its benchmarking lot with ORCA
The NGCOA Technology Conference: A long time coming, but worth the wait
City nixes TopGolf deal in surprise move
Credit Management a “hot” topic? Acushnet playing tough?
September golf weather impact: Flat for month, flat for year
Like the Sox, Boston course owners need better pitching
Improving, or approving, one’s lie
The Pellucid Perspective - October 2017 - TOC
The Pellucid Perspective - October 2017 - NGCOA casts its benchmarking lot with ORCA
The Pellucid Perspective - October 2017 - 3
The Pellucid Perspective - October 2017 - 4
The Pellucid Perspective - October 2017 - 5
The Pellucid Perspective - October 2017 - The NGCOA Technology Conference: A long time coming, but worth the wait
The Pellucid Perspective - October 2017 - 7
The Pellucid Perspective - October 2017 - City nixes TopGolf deal in surprise move
The Pellucid Perspective - October 2017 - 9
The Pellucid Perspective - October 2017 - Credit Management a “hot” topic? Acushnet playing tough?
The Pellucid Perspective - October 2017 - September golf weather impact: Flat for month, flat for year
The Pellucid Perspective - October 2017 - 12
The Pellucid Perspective - October 2017 - 13
The Pellucid Perspective - October 2017 - Like the Sox, Boston course owners need better pitching
The Pellucid Perspective - October 2017 - 15
The Pellucid Perspective - October 2017 - 16
The Pellucid Perspective - October 2017 - Improving, or approving, one’s lie
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