Florida Golf Courses

Friday, February 24, 2006

FloridaGolf Courses In The Hole / Municipal Courses Face A Nearly $1M Deficit

In a sport dominated by expensive country clubs, municipal Florida golf courses remain the last bastions of affordable golf for many senior citizens and middle-class players.

These Florida golf courses were initially designed to be self-supporting operations, offering outdoor recreation at reasonable prices.

But if you live in Brevard County, even if you've never swung a club, your taxes subsidize a municipal golf course -- to the tune of almost $1 million per year.

"I'm a taxpayer. Why should I pay for someone else to play?" asked Indialantic resident George Pickel, a retired St. Petersburg municipal golf director who plays at the private Manatee Cove Golf at Patrick Air Force Base.

To be sure, Florida golf courses attract tourists and increase property values, boosting business and generating tax dollars for schools, roads and other services.

But the Space Coast golf market may be saturated: Seven public Florida golf courses were built in Brevard over the past decade, pushing the total number to 28 before last November's closure of Port Malabar Country Club.

"The numbers are stagnant. The game of golf isn't growing," said Mike Floyd, executive director of the Space Coast Golf Association. "We still have 8 million golfers in the United States, and that number's staying the same."

This competition is squeezing the municipal courses, said Cocoa Beach Country Club Director Joe Tucker. And it's forcing taxpayers to foot the bill.

Brevard's trio of county-owned courses posted net losses of $560,385 during the past fiscal year. Last year, the Cocoa Beach course used $208,946 from the city's general fund to cover capital equipment and debt service costs. And Melbourne's two Florida golf courses posted a total shortfall of $248,332.

Likewise, in Indian River County, expenses at Sebastian Golf Course outpaced revenues by $238,410 in 2004-05.

"Wow. For retirees on fixed incomes, that's where the people in that demographic are going to play. They have no other alternative," said Keith Williams, teaching golf pro at Golf USA in Suntree. "They're not going to go to Duran and pay $90 per round. They're not going to play at The Majors and pay $55, $60 a round."

Melbourne residents pay $19.08 to play 18 holes at Harbor City or Melbourne Municipal golf courses. Summer price is $12.72.

Harbor City Manager Edward Barbour said hurricanes Frances and Jeanne were major factors in the lackluster 2004-05 financial figures.

Golf deficits have become a political issue in Melbourne. City leaders have commissioned an independent marketing study and drafted a two-year "recovery plan" to try to get back in the black.

Jim Demick, executive director of the Florida State Golf Association, said municipal course shortfalls -- occurring across the state -- do not always indicate a crisis.

"I like to draw a parallel with all the other recreational parks. The softball fields and baseball fields and parks people go to just for picnicking -- they don't generate a profit. They cost money to operate," Demick said.

Fighting the battle

Annual rounds played at Melbourne's facilities -- Harbor City Golf Course in Florida and Melbourne Municipal Golf Course -- have plummeted from a mid-1990s peak of about 200,000 to 134,567 in 2004-05, a 33 percent drop-off.

The result? Melbourne's courses fell into a deficit cycle. Maintenance suffered, resulting in poorly watered and fertilized fairways and greens, a National Golf Foundation study concluded last summer. And the enterprise fund's cash reserves essentially ran dry.

In August, city leaders hiked annual resident membership rates 17 percent, to $475, and resident family memberships 10 percent, to $725. Last month, city staffers released a two-year recovery plan to try to "halt the hemorrhage," Councilman Richard Contreras said.

CK Communications, an Eau Gallie firm, is compiling a marketing study with strategies on boosting revenue and reworking the courses' image.

"The perception of the golf courses, from the public's point of view, is that they're blue-collar courses. They're Florida golf courses that aren't even trying to aspire to another level -- it's just seniors and blue-collar players. We need to raise the bar," Councilman Mark LaRusso said.

LaRusso, an avid golfer, favors setting up a partnership with a pro shop supplier, such as Nevada Bob's Discount Golf or Sports Authority. He also supports corporate sponsorship of holes in exchange for rounds of golf.

"We can't keep dipping into the pockets of the taxpayers to pay for the golf courses," LaRusso said.

City resident Jacqueline Baez has taken lessons at Melbourne Municipal for about a month. She called the courses a bargain.

"Everybody wishes the putting green was kept up a little better, the grass was a little greener," Baez said. "But the prices are reasonable."

Improvements

After years of losses, the fiscal forecast appears sunnier at Brevard County's courses: Spessard Holland, The Savannahs and The Habitat.

The facilities are on track to generate more than $3.4 million in revenues this year -- up from $3 million last year. Total golf rounds could exceed 143,000, up from 126,295 last year.

And the county Florida golf courses just posted their best November, third-best December and best January numbers since at least 1993-94.

"My mission is to make (the courses) break even. It's a very delicate balance when you're doing it for the government's side," said Dennis MacKee, golf course operations manager. "What I tell my people is, our job is to provide well-maintained facilities at a reasonable cost for the greatest number of taxpayers."

Cocoa Beach Country Club also recorded robust revenues in November and December, Tucker said.

"I was talking to a pro from Aquarina (Country Club) the other day, and we pretty much agreed -- six less Florida golf courses and we probably all could make a little more money," Tucker said. "I don't see it getting a whole lot better. We strive to be a break-even business. The time has passed when you're going to make money, largely because of the proliferation of Florida golf courses."

0 Comments:

Post a Comment

<< Home