Operations, march 14, 2014

     The Republican administration in Tennessee is in the “research phase” of a plan that would put the operations of 11 state parks into private hands. Nine of the parks feature golf courses. Three of the nine -- the 18-hole tracks at the Tims Ford, Cumberland Mountain, and Harrison Bay state parks -- are part of the state’s Bear Trace, a collection of five Jack Nicklaus-designed courses that were built to compete with Alabama’s Robert Trent Jones-designed golf trail. The state’s proposal has elicited protests from the Tennessee State Employment Association, which believes that it’ll lead to a loss of jobs. “They are trying to fix something that isn’t broken,” the group’s executive director told the Tennessean. Nonetheless, the state’s department of environment and conservation has solicited expressions of interest from groups that might be willing to take over “certain hospitality operations” at the parks.

     Mosaic Clubs & Resorts has established a presence deep, deep in the heart of Texas. The Alpharetta, Georgia-based firm has been retained to manage Rancho Viejo Resort & Country Club, a 1,400-acre private resort community in the Rio Grande Valley outside Brownsville, the southernmost city in the state. Rancho Viejo offers villas and other lodging, meeting space, and a pair of golf courses, the nine-hole El Angel and the 18-hole El Diablo. Mosaic, a recently established spin-off of Affiniti Golf Partners, was created to operate “the world’s most prestigious private and resort clubs.” These days, it also operates two properties in Georgia and one in South Carolina. Whitney Crouse, Mosaic’s chairman, describes Rancho Viejo as a place of “renown, tropical beauty, and enriched heritage.” It’s located in a part of the nation where golf can reportedly be played on 340 days a year.

     KemperSports has added a third management contract in Tennessee, this one for a historic club in Bristol. Brent Roswall has hired the Northbrook, Illinois-based company to operate Country Club of Bristol, a 120-year-old venue. Steve Skinner, KemperSport’s CEO, has promised “to take the property to the next level” by enhancing experiences for both members and guests. Bristol, which was established as a private club in 1894, calls itself “the birthplace of organized golf” in the state. It’s had a hard time finding new members of late, and last year it made its 18-hole course available for public play. “We’re changing with the times,” Roswall told the Bristol Herald Courier at the time. KemperSports’ other properties in Tennessee are the Governors Club in suburban Nashville and WindRiver Golf Club in Lenoir City.

     Sequoia Golf’s aggressive marketing in Southern California continues to pay dividends. Joe Guerra’s company has assumed management of Spanish Hills Country Club, a 21-year-old venue in Camarillo. Spanish Hills, the fourth property in the state that Sequoia has signed since mid 2012, features an 18-hole, Bob Cupp-designed golf course and all the expected private-club amenities. “We made reference calls to other clubs in their management portfolio,” the club’s president said in a press release, “and they told us that not only has Sequoia met their expectations, they’ve exceeded them.” Sequoia’s other properties in California are Pauma Valley Country Club in suburban San Diego, Rancho Vista Golf Club in Palmdale, and Old Ranch Country Club in Seal Beach. In total, the firm owns and/or operates nearly 50 properties in Georgia, Texas, Florida, Colorado, and five other states, about half of them under the Canongate brand.

     In an effort to restore lost profits, city officials in Brigantine Beach, New Jersey may turn over their financially ailing 18-hole golf course to the private sector. Links at Brigantine Beach, a Scottish-style 18-hole track that’s been around since 1927, reportedly rang up only $905,000 in revenues last year, less than half of what it collected in 2007. The course finished 2013 with a deficit of $188,000, according to the Press of Atlantic City. To generate more play, the course needs an estimated $2 million worth of improvements, an amount the city can’t afford. As a result, some in the city think it would be wise to seek professional managers willing to make an investment in exchange for a long-term operating contract. Last year, the city hired Stephen Kay, a New Jersey-based architect, to prepare a master plan that prospective operators could use to identify the necessary upgrades.

     Arnold Palmer Golf Management has taken control of a golf club in Tucson, Arizona that needs to dig out of a deep financial hole. Skyline Country Club defaulted on a $3.5 million loan last year, and its golf memberships have fallen from 462 in 2006 to 290 today. In an attempt to fend off foreclosure, it offered Palmer a 25-year lease. “It’s very, very difficult for clubs to be self-managed in this modern world,” a board member told the Arizona Daily Star. Skyline has settled with its lender and agreed to pay Palmer $600,000 annually beginning in year three of their contract. To pay for Palmer’s services, the residents in the accompanying gated community voted to raise their annual homeowners’ association fees from $1,800 to $3,100.

     OB Sports has secured a major maintenance contract in what amounts to its back yard. The Scottsdale, Arizona-based management firm has been hired to service the five golf courses owned by the city of Phoenix. OB Sports believes the agreement will “provide significant annual savings” to the city and improve “the presentation and playing conditions of each golf course.” OB Sports is now involved in golf operations at the state’s two largest cities. Earlier this year, it signed a contract to manage the five courses owned by the city of Tucson.

     Troon Golf has been tapped to manage the long-delayed Potomac Shores Golf Club outside Dumfries, Virginia. The community’s Jack Nicklaus “signature” golf course will be the centerpiece of a 1,920-acre spread that includes more than 3,800 houses, a town center, a business park, a marina along the Potomac River, two schools, and other attractions. The course was built five years ago but was never opened, as the Great Recession put a squeeze on residential sales in the Washington, DC area. Nicklaus describes his 18-hole, daily-fee course as “a masterpiece” and says it’ll offer a “European-style playing experience.” Suncal, the current owner of Potomac Shores, believes the track will become “the golf getaway of choice for Northern Virginians and DC dignitaries alike.” Troon promises to provide “the finest playing surfaces, incredible guest service, and exquisite dining.” The course, originally called Harbor Station, is scheduled to open next month.