know both sides- keep informed!

In an effort to make everyone aware of all aspects of important issues in an unbiased manor, I am posting this email I received from Scratch Golf today.

Dear Friend of Jacaranda Golf Club,

The attached article, South Florida Courses Face Financial Hazards, appears in the October edition of The Tee Times, a South Florida golfing news publication. The article quotes several area golf course owners and managers regarding unfair competitive advantages that municipal courses enjoy over privately owned courses (bold added).

Faced with unfair competition from City of Plantation-owned Plantation Preserve municipal golf course, Jacaranda Golf Club has proposed adding new upscale residences to our golf course property. These new residences, spread over 5 new buildings and townhomes, will enhance the Jacaranda community and provide needed revenues to preserve and protect our golf course lifestyle.

If you have not done so already, please help support our efforts by logging onto our website at http://www.PreserveJacaranda.com and send a pre-written email of support to local elected officials.

Thank you for your support,
Brent Bender
General Manager/Director of Golf, Jacaranda Golf Club

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S. FLORIDA COURSES FACE FINANCIAL HAZARDS
By Nick Pugliese

John Francis has seen the future of public-course golf in South Florida and he doesn’t like what he sees.“In 10 years, it will be all municipal courses. The independent guys will be all gone,” said Francis, one of those independent guys as the owner of Sunrise Country Club.

“We’re trying to survive,” he said. “Talking long-term, how much longer can you continue to keep greens fees the same? We lowered our fees this summer in light of everything. The consumers are facing the same pressures we are – rising food prices, electric bills, insurance. We took a chance and it worked for us. It does not work when you say it’s a long-term solution.“We’re kind of plugging the leaky dike and running out of fingers. I don’t want to sound negative. I love golf and don’t regret for a moment being in this business. But, like they say, if there is light at the end of the tunnel, it’s another train coming.”

Francis is not alone in his assessment of the turbulent economic state of golf in Broward, Palm Beach and Miami-Dade counties, especially when it comes to privately held public courses.

An economy that continues to miss the green, changing demographics, aging courses, higher insurance premiums, water restrictions and ever-rising property taxes are hurting those courses. Meanwhile, greens fees remain static.

The tax issue is a particular sore spot because municipal courses do not pay property taxes.“We have 600 acres and two clubhouses, and we have averaged 10 to 12 percent increases in property taxes for the last 10 years in a row,” said Rick Weber, general manager of Palm-Aire Country Club. “Last year, the taxes on the Oaks course went up 50 percent. We’ve already received our trim [property tax] notices and it’s up another 30 percent. They are lowering property taxes for homeowners and hammering businesses. There is no relief.”Weber and Francis both have sought breaks from the Broward County Commission and the county’s tax department to no avail. Francis said he was disappointed that the United States of America would allow a local government to compete against a small business while giving the former an unfair advantage.“I had an $18,000 raise in property taxes in one year; they are paying not a penny,” Francis said. “I’m willing to accept the risk of running a small business, but it would be nice to have a level playing field. I work awfully hard. I’ve been a PGA pro for 30 years. This has been a lifelong dream. I share the same feelings with a lot of other owners.”Two other factors hurting all courses in South Florida are higher insurance premiums and water restrictions.

Weber said he cannot get insurance for wind-storm damage and his rates keep rising. Francis said his course had a 45 percent water reduction in January and the rest of the year hasn’t been much better.“The course is 50 years old and if you can’t water, it’s awfully hard to maintain the grass we have,” he said.

According to a recent survey by Golf Magazine, the most important element for a golfer was not price, location or difficulty of the course, but the condition of the tees, fairways and greens.

That’s one reason Okeeheelee Golf Course in West Palm Beach renovated 18 greens this summer at a cost of $180,000 and West Palm Beach Country Club is planning a major restoration in 2009.“When you are looking at how to drive golfers to your course, the No. 1 reason is how are the greens,” said Elise Gentile, manager at Okeeheelee. “In non-peak times, we have to create incentives for golfers to come back. We’re always thinking about putting money back into the course. We renovated all of our bunkers last year and the greens this year. We’ll update the clubhouse down the road.”

According to Johnny LaPonzina, whose company, Professional Course Management, oversees four South Florida courses, you have to spend money to make money. Pembroke Lakes Golf Course revenue is up more than $700,000 after undergoing a $6 million renovation and re-opening in December 2007. Another PCM-managed course, Miami Beach Golf Club, underwent a $10 million renovation and its revenues are up $2 million over the last several years.

“Those courses are doing fabulous because they made the investment and they’re reaping the benefits despite the economy,” LaPonzina said.

LaPonzina said it’s particularly prudent for the older courses, many losing golfers due to changing demographics and neighborhoods, to modernize their facilities, which often have aging clubhouses and antiquated irrigation systems. “If you make an investment, it’s a windfall,” he said.

Francis said it’s not that simple.“Spending money to make money is fine, but you are going to have to charge $50 for greens fees rather than $35 and people will not pay that,” he said.

All of the golf managers agree a key to survival is attracting new golfers. One of the programs that apparently has been succeeding is the discount golf cards that cover greens fees at numerous courses over a period of time.

Sales of the South Florida PGA GolfPass are up 21 percent compared with the same time in 2007, according to Andrea LaBlanc, senior director of marketing and communications for the organization.

“Any kind of program like the Golf Pass is good for consumers because they can see the value and it can help drive meaningful business to facilities,” she said.

PCM’s Premier Card, which cost $225 to play any of 18 courses for six months, has seen an increase in sales of 25 percent for five consecutive years, including this year when 5,400 cards brought in more than $1 million. LaPonzina said the Premier Card is going to be offered year-round; for $250, greens fees will be free for seven months and reduced for the other five. It also will be accepted at several new venues, including some top resort and semi-private courses.“We need to grow the game of golf from the grass roots up,” LaPonzina said. “Not very many people can afford annual memberships. This is a pay-as-you-play plan.”LaPonzina also has come up with other ideas to promote golf, including the formation of the Dade-Broward Public Golf Course Association. That group includes a marketing committee and a Canadian golf pass committee “to try to attract more Canadians” to play golf when they are in South Florida.

Canadian golfers helped Francis’ Sunrise course post its best winter with rounds up 10-15 percent from the year before.“The Canadian dollar was much stronger,” he said.

Still, Francis and the others see more and more courses struggling and closing as the years pass. LaPonzina laments that about 20 courses in Dade and Broward counties have closed during the past five years and 75 to 80 percent of the public courses are reporting declining revenues and rounds.“Over the next three to five years, we’ll probably have another 10 or 12 courses closing down because they can’t make it economically,” LaPonzina said. “Ultimately, if they keep closing down and shrinking the inventory, it may stabilize some of those losses. “That’s a hell of a way to grow your business, by having courses shut down.”

Gentile has noticed a slight decline in golfers at Okeeheelee during the week. “The regular golfers are coming out once a week instead of two or three times,” she said. “It’s not our product. It’s the economy.”

Weber, who has seen the number of golfers continue to drop for Palm-Aire’s many corporate, charitable and civic tournaments, remains hopeful that privately owned public course golf has a future in South Florida.“If I wasn’t hopeful, they got the wrong guy,” he said. “Everyone has to tighten their belt because we cannot cut back on services or conditions of the golf course. You get a downward spiral, conditions get worse and you start charging less to attract people. We can’t get in that cycle.”Send e-mail to LH@teetimesnews.com or call (954) 607-6325 to comment on this article.