Operations, december 6, 2013

     The city of Louisville, Colorado’s storm-ravaged golf course is closed until further notice, and it’ll reopen with a new operator. The city has decided to end its relationship with Western Golf Properties for failing to “take prompt, responsive action” and “carry out duties and responsibilities” after September’s floods inflicted $3.5 million worth of damage on Coal Creek Golf Course. WGP’s response, according to the Boulder Daily Camera, was to lay off most of the course’s staff and to hold what’s been described as “a dramatic sale of inventory in the golf club.” WGP had managed Coal Creek for more than a decade. For now, the city intends to turn over the course’s operations to its parks and recreation department, but things could change between now and 2015, when the 18-hole track will likely be ready for play again.

     In an effort to add some pizzazz to their membership marketing efforts, a pair of private clubs in greater Philadelphia, Pennsylvania have tapped into the ClubCorp network. Members of Talamore Country Club in Ambler and Applecross Country Club in Downingtown, both owned by Bob Levy, now have access to some of ClubCorp’s more than 150 golf, business, and sports clubs, along with a concierge service that will help them secure tickets to sports events, Broadway shows, and concerts. “We think this new benefit is extraordinary,” the general manager of Talamore said in a press release. “When our members are traveling, they don't miss a beat.” Such “reciprocal” golf privileges have become very popular of late, as private clubs pull out the stops to add value to their memberships. But how much are they really worth? ClubCorp owns only two golf properties within an hour’s drive of Philadelphia, and dozens of the properties in its portfolio aren’t truly special. Membership may have its privileges, but some of them are offer less than meets the eye.

     Two parties have submitted proposals to operate the city of Savannah, Georgia’s deteriorating Bacon Park golf complex. The most vocal bidder -- O. C. Welch, a local auto dealer and the owner of Black Creek Golf Club in nearby Ellabell -- believes the facility needs a dramatic overhaul, and he’s floated a plan to close nine of the facility’s holes and invest $9 million to restore its 18-hole, Donald Ross-designed layout. The other bidder -- Michael Collins, the complex’s manager -- told the Savannah Morning News that “spending millions of dollars is not necessary” because the complex “is so close to where it needs to be.” The city, which is offering a 12-year contract, believes the complex needs at least $4 million worth of improvements. It expects to decide between the suitors early next year.

     By a slim vote (4-3), council members in St. Paul, Minnesota have decided to seek private-sector managers for their Como and Phalen golf courses. More than a dozen groups have already contacted the city about the opportunity, reports the St. Paul Pioneer Press, though not all are guaranteed to respond to the city’s request for proposals. Golf operations have become an intolerable financial burden in St. Paul, as the city’s three properties are said to be $8 million in the hole. The goal is to have new operators in place by sometime in February.

     Premier Golf Centers has won a five-year contract to manage the municipal golf course in Lynnwood, Washington. The 18-hole track become the 11th property in Premier’s portfolio, joining 10 municipal properties in Seattle, Everett, Bellevue, Maple Valley, and other cities on the Puget Sound. The Everett Herald reports that Lynnwood has agreed to pay $96,000 a year for the firm’s services and might also pay bonuses if revenue goals are met.

     The city of Duluth, Minnesota is evaluating its golf operations and plans to seek bids for the management of its 27-hole golf properties. The complexes, in Lester and Enger parks, have been run by a local firm, Professional Golf Management, since 2007. They operate at a loss, according to the Duluth News Tribune, and have accumulated a deficit of about $1 million. “We think we have an obligation to taxpayers and ourselves to put this out for bid every once in a while,” the city’s chief administrative officer told the newspaper. He noted that the courses “must pay for themselves, both operationally and in terms of debt service.” The city expects to issue a request for proposals next summer.

     In recent months, nearly two dozen firms have expressed an interest in managing the municipal golf course in Lynn, Massachusetts. Much to the city’s surprise, however, only one actually submitted a bid. A firm led by Stephen Murphy, the superintendent of Gannon Municipal Golf Course, has made what amounts to a take-it-or-leave-it offer: He’s willing to pay the city $2.1 million for a five-year lease. If his offer isn’t accepted, according to the Daily Item, next year the 18-hole, Wayne Stiles-designed golf course will be operated by Lynn’ s public works department.