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Sunday, August 27, 2017

The Week That Was, august 27, 2017

     Brazil’s golf industry is still waiting for its post-Olympics bump. The course that hosted the golf competition at last year’s Games, in Rio de Janeiro, is ringing up only 700 rounds a month, a number that would jeopardize the future of any venue that needs to survive without outside financial support. Let’s break down the numbers: According to its operators, roughly 15 percent of the course’s 8,400 annual tee times are filled by foreigners who are charged $150 a round. Total income: $189,000, presuming that every round is fully paid. If all of the 7,140 remaining rounds could somehow be played at the $75 weekend rate – and unfortunately, many of them are played at the $50 weekday rate – they’d generate $535,500. Total ideal-scenario revenues: $724,500, not counting cart fees, merchandise and food-and-beverage sales, and other income. The Golf Channel reports that course’s operators have set out to double the number of rounds played on the course. If they aren’t successful, then what?

     It’s become difficult, if not impossible, to develop golf communities in China, so a Chinese group hopes to develop one in the United States. I say “hopes” because Yihai Group, a home builder based in Dalian, has picked a promising but wet place for its first U.S. golf venture: Cleveland, Texas, a town northeast of Houston. Yihai’s Grand Oaks Reserve will occupy 615 acres and feature 976 single-family homes, 256 condos, and 416 apartments, along with commercial and retail space and a variety of recreational amenities, including a nine-hole golf course. The course has been designed by Mike Nuzzo, who’s best known for creating Wolf Point Golf Club, outside Port Lavaca, Texas. Grand Oaks Reserve will no doubt be delayed by the flooding in southeastern Texas, but Yihai can look on the bright side: The demand for housing in metropolitan Houston is about to explode.

     The next time he signs his name, Mike Keiser can legitimately add the initials HOF. The celebrated Chicago-based developer of Bandon Dunes and other world-class golf destinations has been elected to the Greater Buffalo Sports Hall of Fame, an honor shared by more than 300 other sports luminaries, among them Scotty Bowman, Ron Jaworski, Jack Kemp, Christian Laettner, O. J. Simpson, Warren Spahn, and Dick "The Destroyer" Beyer. Keiser, who grew up in suburban Buffalo and caddied at East Aurora Country Club, will be inducted on November 1.

     Time has run out on an A. W. Tillinghast-designed golf course in White Plains, New York. Ridgewood Real Estate Partners, a firm that targets golf properties for residential development, has paid $13 million for Elmwood Country Club, a formerly member-owned venue that’s operated since the late 1920s. Elmwood, which had reportedly “lost a number of members” and was skating on thin financial ice, will host its final rounds in late September. Ridgewood hasn’t commented on the purchase, but it’s expected to build houses on Elmwood’s 120 acres. History always serves as a guide, and the company owns three other golf properties that are slated for development: Apple Ridge Country Club in Mahwah, New Jersey; Edgmont Country Club in suburban Philadelphia, Pennsylvania; and Grande Pines Golf Club outside Orlando, Florida.

     Surplus Transactions – Boonville, Indiana will soon own Quail Crossing Golf Course, an 18-hole, Tom Doak-designed track that was reportedly styled “in imitation of Shinnecock Hills.” The city has voted to issue $950,000 in bonds to pay for the 20-year-old venue, but it’ll probably pay less. The seller is an affiliate of Warrior Asset Management, an entity that claims to own and operate 19 other golf properties from coast to coast. . . . A defunct golf course on the Grand Strand may soon come back to life. Harry Karetas, the owner of a self-storage company, recently paid $650,000 for Wedgefield Plantation Country Club, a 45-year-old property that he hopes to overhaul and lease and reopen by the spring of 2019. The club, in Georgetown, South Carolina, features an 18-hole track that was co-designed by Porter Gibson and Bob Toski. The property had been owned by Ray Watts, a developer who defaulted on a loan made by Phoenix, Arizona-based Paramont Capital. . . . Greg Bower has acquired what’s said to be the oldest public golf course in York County, Pennsylvania. Bower and some family members reportedly paid $2.15 million for Grandview Golf Course, an 18-hole track that was once owned by Fred Waring, the big-band leader who invented the Waring blender. Grandview opened in two phases, the first nine in the 1920s and the second in the 1930s.

     Even More Surplus Transactions – A company that builds communities for seniors has agreed to buy Ashley Plantation Country Club, an 18-year-old venue outside Roanoke, Virginia. Ashley Plantation once had a 27-hole golf complex, but nine holes have been closed and will likely be developed by the prospective buyer, Runk & Pratt Healthcare Enterprises Inc. Runk & Pratt owns two other courses in the state, Ivy Hill Golf Club in Forest and Willows Golf Club in Hurt. It’s buying Ashley Plantation from Bank of Fincastle, which took possession of the property a year ago. . . . At an auction last month, Andres Castellanos bid $902,000 to make what he called “a dream come true for me.” Castellanos, a co-owner of self-storage properties, agreed to buy North River Golf Club, an 18-hole, executive-length track in Stuart, Florida. The Arthur Young-designed layout at North River has operated since 1977 (it was originally called Pine Lakes Golf Club), and Castellanos grew up playing it. . . . Terry Reinhart has purchased Wayside Golf Course, a nine-hole track in Findlay, Ohio that caters to families, beginners, and seniors. A purchase price hasn’t been disclosed, but Reinhart bought the course from Earl and Jackie Risner, who’d owned it for 22 years. The course now operates as Broken Birdie Golf Course.

     Myanmar’s golf dreams may be short-lived. The nation is hoping that a spate of golf construction might help to spark a tourism boom, but it’s fighting an uphill battle against vestiges of its cruel past. Hotel Management reports that Myanmar’s hotels “are sitting idle” and that travel numbers have “continued to plunge,” largely due to “continuous ethnic violence” fueled by a corrupt military. Citing data provided by the Ministry of Hotels & Tourism, the magazine says a mere 2.9 million international travelers visited Myanmar last year, 38 percent fewer than the 4.7 million who visited in 2015. Two new golf courses are expected to open this year, including a Lee Schmidt-designed course in metropolitan Mandalay, but Myanmar isn’t going to become a tourist destination until it sheds its image as a human-rights violator. Political repression is bad for business.

Sunday, August 20, 2017

The Week That Was, august 20, 2017

     In an effort to jump-start his sagging Japanese mission, Greg “the Living Brand” Norman has entered into a partnership with a well-connected, 95-year-old, Tokyo-based civil engineering company. The LB outlined plans to redesign a parade of lackluster, under-performing Japanese golf courses last spring, his goal being to secure six to eight commissions annually until the river ran dry. To date, however, his West Palm Beach, Florida-based design firm hasn’t announced any commissions. Hence the alliance with Ohba Company, Ltd., which is said to be the largest company of its kind in Japan. The partners will be targeting “all the courses built in Japan during the 1980s but never modernized,” properties that the LB views as “dormant assets that can increase in value through redesigns.” Presuming clients can be found, Greg Norman Golf Course Design will “renovate, restore, reposition, and rebrand” the courses, while Ohba will handle permitting, construction management, and related matters.

     Advance Golf Partners has acquired what it views as “a premium public course” in “one of the top growth areas in Texas.” The venue so described is Bridlewood Golf Club in Flower Mound, a property that features an 18-hole, D. A. Weibring-designed layout that opened in 1997. Neither Advance nor the seller, Dominion Golf Group, has announced the price. Bridlewood is one of 11 courses in Advance’s portfolio, a collection that includes two others in Texas (Sky Creek Ranch Golf Club in Keller and WestRidge Golf Course in McKinney), four in Florida, and the remainder in Delaware, Kentucky, North Carolina, and South Carolina. And if you’re wondering whether Topgolf is influencing golf operations in the Dallas-Fort Worth area, take note: The Cross Timbers Gazette reports that Dallas-based Advance intends to spiff up Bridlewood’s practice area “by adding music and making targets and the driving range experience more fun.”

     Surplus Transactions – It took more than a year, but the Fort Monmouth Economic Revitalization Authority has found a buyer for Suneagles Golf Course. Pending a successful closing, the 18-hole, A. W. Tillinghast-designed track in Eatontown, New Jersey will belong to Salvatore Martelli, a developer who’s agreed to pay $5 million for Suneagles’ 171 acres. Martelli thinks Suneagles is “a diamond in the rough,” and he intends to “restore it to its former glory.” . . . A group of nine families have seized control of the Club at Wynstone, a financially troubled, formerly member-owned venue in Chicagoland. The 28-year-old property, originally known as Wynstone Golf Club, features an 18-hole, Jack Nicklaus “signature” golf course, and it aims to rebrand itself as a “friendly, inclusive, comfortable, and respectful family-centered environment.” A price hasn’t been announced, but the Daily Herald says that the new owners paid off the club’s $6 million in debt. . . . Scott Greenseth, a golf-course builder, is the new owner of South Fork Creek Golf Course, an 18-hole, Joel Goldstrand-designed track in St. James, Minnesota. KEYC-TV reports that South Fork Creek, which has had numerous owners in its 95-year history, had been “on the brink of closing down for good.”

     The Inn at St. John’s, a former Catholic seminary in Plymouth, Michigan, has agreed to sell one-third of its 27-hole golf complex to a home builder. The inn, owned by the Archdiocese of Detroit, hasn’t said which of its Bruce Matthews-designed nines will go, but the choices are the Matthew, Mark, and Luke tracks. The archdiocese considers the transaction to be “a way to build on St. John’s financial and spiritual success.”

     Desolation Row Extended – It also appears that Hombre Golf Course, in Panama City Beach, Florida, will lose nine of its 27 holes. George Roberts, the complex’s owner, wants to build houses on the Hombre’s Good nine – as opposed to its Bad and Ugly nines – because the venue “is not doing very well.” Roberts, who just happens to be a home builder, bought the Hombre last year. . . . Elected officials in Courtland, Alabama have pulled the plug on Valley Landing Golf Course. The 18-hole track, a John K. Millhouse design, opened in 2001, and it reportedly cost $5 million to build. The Moulton Advertiser reports the city based its decision “on the lack of revenue Valley Landing was bringing in.” The city hopes to find a buyer. . . . The clock is ticking on Hiawatha Golf Club, a fixture in Minneapolis, Minnesota since 1934. After much debate involving water-related issues, the Minneapolis Park & Recreation Board has voted to close Hiawatha’s 18-hole course, which was redesigned by Garrett Gill and Paul Miller, at the end of the 2019 golf season. The number of rounds annually played at the course has fallen to about 20,000 in recent years, a decline that the board reportedly attributes to “wet conditions and market changes.”

Sunday, August 13, 2017

The Week That Was, august 13, 2017

     With apologies to Jon Landau: I have seen the future of golf, and it's Topgolf.
     Bruce Springsteen references aside, it’s become clear that a new center of power is emerging in a weakened, demoralized golf industry. Topgolf, which has opened nearly three dozen U.S. venues that cleverly combine golf with food, music, and a casual, fun vibe, is being offered new opportunities for growth in conventional golf operations. While Topgolf and its new-found partners always talk about being in win-win situations, at least for now traditional golf is doing more for Topgolf than Topgolf is doing for traditional golf.
     Just weeks ago, one of our industry’s true powerhouses – ClubCorp, the self-described “World Leader in Private Clubs” – announced a “strategic alliance” with Topgolf, as part of an effort to establish “the connections that bring people together for unforgettable good times.” The nature of the relationship between the parties hasn’t been spelled out, but it appears that Topgolf will install its ball-tracking technology at some ClubCorp-owned driving ranges, presumably to inject a little life into otherwise dull practice sessions.
     Last week, it was revealed that Topgolf may soon make a move into municipal golf operations. The city of Honolulu is looking for a private-sector group to take over management of the under-performing driving range at Ala Wai Golf Course, and Topgolf has reportedly expressed interest.
     In addition, last week Topgolf found its highest-profile partner to date, as the PGA of America has acknowledged that it’s persuaded Topgolf to do some things it apparently can no longer do for itself, namely find jobs for the nation’s PGA’s professionals and attract an audience for PGA-sponsored tournaments and development programs. We’ll get a sample of what’s to come as soon as tomorrow, when a Topgolf venue in Las Vegas is scheduled to host an “unforgettable” equipment demonstration for a PGA-organized event.
     Topgolf has operated in the United States since 2005 – a mere 12 years. It was dismissed at first, and even ignored. But today it looks young and exciting, while traditional golf looks old and tired. Which side would you rather be on? Topgolf could lose its appeal tomorrow, given the speed at which tastes change nowadays, but it’s clear that the Powers That Be in our business aren’t betting on it.

     Brown Golf Management has been sold, but it’s remaining in the Brown family. The sale was prompted by the retirement of John A. Brown, Jr., the family patriarch, who’s sold his majority interest in the firm to his sons, John M. and Todd, and Jason Harshbarger, all of whom have been principals in the firm since it was founded in 2011. A price hasn’t been announced. Brown Golf owns, leases, or manages 21 golf properties (29 total courses) in South Carolina, Florida, Georgia, and three other states. The group includes Palmetto Hall Plantation, a 36-hole venue on Hilton Head Island, Gainesville Country Club in Florida, and three properties owned by the time-share division of Holiday Inn Corporation: Holiday Hills Resort in Branson, Missouri; Apple Mountain Resort in Clarksville, Georgia; and Orange Lake Resort in Kissimmee, Florida.

     Before the end of the year, Tim Lobb hopes to break ground on his third course in Egypt. The 18-hole track will take shape at the massive Somabay resort community, near Hurghada on the Red Sea coast, and it’ll complement the property’s Gary Player-designed Cascades layout, a venue that currently checks in at #2 on Golf Digest’s list of Egypt’s top courses. (When it opened, in 1998, Player called it “the next Pebble Beach.”) Lobb intends to produce a course that’s “player friendly and fun to play,” and the developers expect it to offer “a world-class, enjoyable, and memorable golf experience.” While working as a principal in now-defunct Thomson Perrett & Lobb, Lobb helped to create a course at another Red Sea resort, El Ein Bay, and these days he’s overseeing the construction of a TPL-branded track at New Giza, in suburban Cairo.

     Pipeline Overflow – A Vietnamese developer that aims “to touch people’s lives positively” is preparing to break ground on its third multi-course golf venue. PPC An Thinh Vietnam Investment & Infrastructure JSC – PPCAT for short – wants to build a 36-hole complex at the Bảo Ninh resort community in Quảng Bình Province. PPCAT also has two properties in Vĩnh Phúc Province, the 36-hole Bàn Long Golf Course and the 54-hole Gia Khau Golf Course. . . . Sometime next summer, Jonathan Davison expects to debut his second solo design in the Czech Republic. The par-3 track will take shape at Golf Park Lhotka, outside Ostrava in the northeastern part of the nation, and Davison, one of Europe’s up-and-coming architects, thinks it’s “exactly the type of facility” that nascent golf markets need “to help introduce people to the game.” Previously, Davison completed a pair of nine-hole tracks for the Heipark resort in Odry. . . . The design firm founded by Arthur Hills has opened its second golf course in Russia. First came Forest Hills Golf & Country Club, in suburban Moscow. Now Hills and Steve Forrest, the principals of Hills Forrest International Golf Course Architects, have unveiled Peterhof Golf Club, outside St. Petersburg. Peterhof has been in progress since 2011, if not before.

     Over the past decade, Great Britain has lost more than a quarter of its golfers. Sports Marketing Surveys counted 4.1 million British golfers in 2007 but fewer than 3 million last year.

Sunday, August 6, 2017

The Week That Was, august 6, 2017

     As we count down the days to this year’s Farmfoods British Par 3 Championship, Tony Jacklin has lots of wonderful things to say about par-3 golf. The British golf legend justifiably maintains that shorter holes lend themselves to a “more accessible” version of golf, one that can equally engage “golfers at all levels” and make the game “fun for the whole family.” In fact, he believes that par-3 golf can “give new life to the game.” Regrettably, however, Jacklin may not be a credible witness. He’s the host of the Farmfoods championship, and he serves as an “ambassador” to the event, so he’s being paid to promote par-3 golf. It would have been nice if Golf Punk, which published Jacklin’s comments, had acknowledged Jacklin’s role. And it also would have been nice if Golf Punk had mentioned that it’s the event’s “official media partner.”

     Golf Canada has enlisted Jack Nicklaus to help it find a property that can serve as the home of the Canadian Open. Canada’s national golf championship has been played 29 times at Glen Abbey Golf Club, a Nicklaus-designed venue in suburban Toronto, but Glen Abbey’s days as a golf venue are numbered. The Hamilton Spectator reports that Golf Canada is considering three replacement sites in the Toronto area and gave Nicklaus a look-see while this year’s Canadian Open was being contested. Nicklaus hasn’t commented on the quality of the properties and hasn’t officially been offered a design contract, but Golf Canada officials consider him to be “a valued opinion” and “a very valued and trusted sounding board.” Given the sensitivities that inevitably affect such high-profile projects, however, one would think that a Canadian designer should also be considered for the job. Is it possible that Nicklaus would consider doing a co-design, perhaps with a Canadian professional golfer? Hey, Mike Weir: Are you still itching to become a “signature” architect?

     Pipeline Overflow – A British group has announced plans to build a 1,250-acre resort community, including a golf course, in Bà Rịa-Vũng Tàu Province, an area of Vietnam known for its unspoiled beaches. The community doesn’t yet have a name, but London, England-based WCG Worldwide Holdings has master-planned it to include villas and apartments, a pair of hotels, a convention center, a marina, a terminal for cruise ships, indoor and outdoor water parks, a safari park, a shopping mall, a medical center, an ice-skating rink, a spa, and other attractions. The province is already home to one of the nation’s best-known courses, the Greg Norman-designed track at the Bluffs Hồ Tràm Strip. . . . Bauchi State, in northeastern Nigeria, is building an 18-hole golf course in Yankari National Park, the nation’s most popular vacation destination. “We want to showcase the tourism potential of Bauchi State through golf,” one of the project’s organizers recently said. Yankari, which occupies roughly 866 square miles, has been described as “the country’s richest wildlife oasis,” with large populations of elephants, lions, hippos, and other big game. . . . Mike Keiser is expected to file his development plans for Coul Links soon, perhaps by sometime next month. It doesn’t appear that Keiser and his development partner, Todd Warnock, have won over conservationists in the Scottish Highlands, but the application was supposed to have been submitted earlier this year and it’s apparently now time to fish or cut bait. Bill Coore anxiously awaits, as he believes the site “might be the best ever.”

     A Chicago-based merchant bank has acquired Jon Huntsman, Sr.’s golf community outside Jackson Hole, Wyoming. BDT Capital Partners has paid an undisclosed price for Huntsman Springs, a 1,350-acre spread that the Jackson Hole News & Guide says “was built on the eve of the Great Recession and has suffered the effects of the crash ever since.” Huntsman Springs, which has an address in Driggs, Idaho, features an 18-hole, David McLay Kidd-designed golf course, hundreds of undeveloped lots, a restaurant, a spa, and sites for a hotel and a clubhouse, both of which are forthcoming. Huntsman, a billionaire who made his money in chemical manufacturing (he’s also the father of the future ambassador to Russia), has said that the sale was “required” due to “challenging” health issues. He’s 80, and he’s said to be a four-time cancer survivor.

     Surplus Transactions – Regarding John McConnell’s prospective purchase of Southern Pines Golf Club, outside Pinehurst, North Carolina: It’s off, at least for the time being. McConnell reportedly “walked away from the deal” when he and the club’s owner couldn’t agree on terms. Let’s be clear, however: Just because a fellow takes a walk doesn’t mean he’s taking a hike. . . . Regarding the expected sale of Las Vegas Country Club: It’s off, apparently definitely. Discovery Land Company and its purchasing partner, Wolff Company, have reportedly told the club’s members that they’re “backing out of the deal” for financial and water-related reasons. The club isn’t likely to be left high and dry, though, as other prospective buyers are said to be “waiting in the wings.” . . . The owner of Double JJ Resort, in Rothbury, Michigan, has acquired a second golf property. Antler Bar Amusements, a group led by Matthew Halbower, now owns Grand View Golf Course, a 23-year-old track in nearby New Era. Grand View’s 18-hole layout will complement Double JJ’s Arthur Hills-designed course.

     In Kalamazoo, Michigan, a golf venue founded by marijuana traffickers is about to go under. John Brussee has agreed to sell Thornapple Creek Golf Club to Daniel Scheffers, the president of a local construction company, for an undisclosed amount. “I had an offer and I took it,” Brussee told the Kalamazoo Gazette, adding: “People don't play golf as much as they used to.” Brussee, who acquired Thornapple Creek in 1998, is reportedly the property’s fourth owner. The club was established in 1979, by a trio who were, according to the Gazette, “linked to a multimillion-dollar drug trafficking network.” Following convictions, the U.S. Department of Justice took possession of the property in 1986 and sold it the following year. Scheffers hasn’t announced his intentions for the 194-acre club, but it appears that he’s going to use it for hunting and fishing.

     Desolation Row Extended – Just four years short of celebrating its 100th birthday, Hillcrest Golf Club is about to go belly up. The club, in St. Paul, Minnesota, will close at the end of the current golf season, as it no longer has enough members to make ends meet. Hillcrest’s owner, Steamfitters Pipefitters Local 455, has described the club’s continuing annual losses “untenable.” . . . On the third of July, Legacy Golf Club, in suburban Las Vegas, Nevada, was sold and immediately closed. A group called Par Excellence Drive Trust LLC reportedly offered $5.6 million for the club and its 18-hole, Arthur Hills-designed golf course, and an entity related to Pacific Life Insurance Company accepted. The new owners aim to build what they call “a planned use development” on the club’s 177 acres, but residents in the area intend to fight the proposal. . . . A nine-hole golf course in Westcliffe, Colorado didn’t open this year, and it may be closed for good. A lender has reportedly foreclosed on St. Andrews Golf Course, a venue that opened in 1990, and a public auction will likely be held.

     Only 26 new golf facilities have opened in Canada since 2010, and these days our northern neighbor has just 22 of those awkwardly designated “18-hole equivalent facilities” in the pipeline. So there’s no reason to expect a near-term increase in the supply of golf venues in Canada, which trails only the United States when it comes to a total count of golf courses. (If you’re wondering, the United States wins in a blowout, 15,014 to 2,298. Japan comes in third, with 2,290.) Those who are intrigued by such factoids are advised to check out “Golf Facilities in Canada 2017,” which has been published jointly by Golf Canada and the PGA of Canada and claims to be “a comprehensive snapshot of the Canadian golf landscape.” For those whose thirst for such knowledge hasn’t yet been quenched, the report also points out that 90 percent of Canada’s courses are open to the public and that 36 percent of them are nine-hole tracks.