The Pellucid Perspective - January 2021 - 16

COMINGS
& GOINGS

L

ooking at the public domain, tracked activities since our
last issue, we saw a continuation of the relatively muted
activity (in numbers) but not a total falloff in December
like we usually see. Of the 20 activities listed in the accompanying table, Transactions again led the way with 8 (40%) followed
by 4 closures and a new category we " invented " called on-thebubble (reported financial hardship, " political football " courses,
unsuccessful or upcoming auctions etc.) making its debut with
4 activities.
You'll see the state of OH well represented in this month's
list (call out to industry veteran Chuck Bennell who periodically augments our public domain searches with his on-theground knowledge of that state's happenings) with 5 of the 20
activities across the Cleveland & Columbus DMAs.
We continue to see an interesting trend/dissonance in nonviable golf courses which appear to have no reasonable financial
suitors at appropriate values for golf as
an ongoing concern (usually in the $1$1.5M range for the average, public 18
hole course) but developers who are
willing to pay $5-$15M for those same
properties as developable land. In almost every case, either the local government or local residents are putting up
resistance (with very logical and understandable reasons) but the gap in perceived value makes resolving this conflict very challenging (takes years, costs

thousands of lives; channeling John Belushi in Animal House).
As a case study for that, see the Hollydale GC line item where
the owners have a willing redevelopment buyer for ~$25M for
their property but the City of Plymouth (MN) won't rezone it
and won't offer to buy it; that is the proverbial " rock and a hard
place. "
On a final note, you'll see on the Hancock GC entry (photo
below/last entry) a situation that may play out more and more
in '21 depending on how we exit the " pandemic era " where a
previously non-viable course may now be able to break even if
(big if ) we're able to retain at least half of the " COVID dividend " (channeling Stuart Lindsay as you'll hear in our upcoming '20 State of the Industry presentation). We'll see if this
monthly list of activities shrinks, grows or stays the same as we
progress into the '21 season and get a better understanding of
how much of '20's benefit we're able to retain. Stay tuned...

Hancock Golf Course, Austin, TX

WWW.AUSTINTEXAS.GOV/DEPARTMENT/HANCOCK-COURSE

Transactions continue to lead;
OH well-represented this month

Golf's landscape changes
Event

Course

DMA

Type/Holes

Summary

Rancho San
Marcos

Santa Barbara

Pub/18

Barberton
Brookside

Cleveland-Akron Pub/18
(Canton) OH

Highlighted in Golf Advisor " Courses We'll Miss "
list. I guess so since we completely missed it's
closing back when it was announced...
Sold to developer, plans for $100M subdivision,
contentious zoning hearings underway

River Bend GC

Pub/18
OrlandoDaytona BeachMelbourne FL

Rehoboth GC

Pub/18
Providence RINew Bedford MA

Open/Re-open

Closed

16 THE PELLUCID PERSPECTIVE

This one is article-worthy, leased to couple and
had previously been tax-exempt since land is
Volusia County property (on airport grounds, FAA
implications), County re-reviewed decision and
started charging in '17 back-dated to '13. If it
goes under, county taxpayers get to pick up the
back taxes...
Sold by sisters who wanted out, couldn't find a
reasonable buyer for it as ongoing golf concern,
sold to developers. Price not disclosed, last
assessment was $1.2M for land & building,
developer likely willing to pay (paid) multiples of
that

JANUARY 2021
http://www.austintexas.gov/department/hancock-course
The Pellucid Perspective - January 2021

Table of Contents for the Digital Edition of The Pellucid Perspective - January 2021
