11.10.09
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1:05 PM
Ironwood CC, one of the oldest golf clubs in Omaha (founded in 1924, and originally called Highland CC) will close at the end of this year, unable to make the debt payments on a huge loan it took out in 1999 to pay for capital improvements. The property is to be sold at a trustee auction Jan. 22. Details in this
story in the Omaha World-Herald.
Sadly, the aspects of Ironwood's troubles are all-too-familiar in the private club world these days. Ten years ago, when the golf business was much more bullish than it is now, the club felt it needed a better clubhouse in order to compete with other golf facilities in Omaha -- so it borrowed $10.7 million for that and other internal projects.
But the economy soured, and Ironwood's membership plummeted -- the story says the club now has between 200-225 members, down from a one-time high of 350 members (plus 250 more who were social members only). That means a lot less business for that new clubhouse, which probably was a factor in the loan becoming overdue.
-- G.R.
10.23.09
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10:47 AM
Erin Hills GC, the much ballyhooed new (opened in 2006) Wisconsin layout that hosted the 2008 U.S. Women's Public Links, is going to host the 2011 U.S. Amateur, and is supposedly under serious consideration to host the 2017 U.S. Open, has been sold.
Owner Bob Lang, a greeting card and stationary tycoon who conceived of and bankrolled the project, has agreed to sell the facility to Milwaukee businessman Andy Ziegler. Details in the Milwaukee Journal-Sentinel
here.
"After 11 years as the owner and developer of Erin Hills, I welcome and support Andy Ziegler, who has the commitment and resources to take Erin Hills to the height of her potential," Lang said in a statement.
Meanwhile, Ryan Herrington, writing about the transaction for GolfDigest.com
here, gives an update on Erin Hills' chances for getting the 2017 U.S. Open.
-- G.R.
10.06.09
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8:52 PM
Tiger Woods made a site visit to High Carolina, the golf course he is designing at The Cliffs property in Swannanoa, S.C., last weekend. The Charlotte Observer offers a report of that visit
here.
Highlights of the story? First of all, given all the turmoil in the golf course construction business, it's nice to hear that any designer is making a site visit these days.
Second, according to the story, the course is at least two years away from opening. Permitting took longer than expected and, as a result, the land is still going through initial clearing stages. But tree stumps or no tree stumps, Woods apparently likes the land he's been given to work with. "I'm from L.A." he told the Observer. "We don't see [views] like this."
Finally, it's clear that whatever design fee The Cliffs is paying Woods -- and some reports say it could be as much as $10 million -- officials there feel they are getting their money's worth.
"We never anticipated he would be involved to this level," Jim Anthony, who has developed the six previous Cliffs golf communities, told the Observer.
-- G.R.
10.06.09
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8:30 PM
Are golf club memberships a reliable indicator of overall economic health?
We've written on this blog throughout the year of the downturn in the private golf club market in both the United States and the United Kingdom. But here is the other side of the spectrum: Officials in South Korea report an uptick in the market for golf club memberships, and say that is one of the surest signs of that country's emerging economic recovery.
Details are in this
story from Bloomberg.
-- G.R.
09.30.09
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1:24 PM
Doonbeg is bucking the trend.
In a tough year for the travel industry in general -- and golf resorts in particular -- officials at the luxury golf property in Ireland (which features a much acclaimed Greg Norman-designed golf course) released some very strong business numbers this week: rounds played are up 1,500 in 2009 compared to 2008, and overnight stays have increased between 45 and 50 percent.
How did Doonbeg pull off these kind of improvement in the teeth of a recession? The old-fashioned way: It lowered prices. On room rates. On golf packages. On membership deals.
Ireland's Sunday Business Post has the complete story on Doonbeg's strategy, and its results,
here.
"Obviously rates are down, but we are still bringing people into the resort during the recession," Doonbeg's general manager, Joe Russell, told the Post. "The key thing now is value, and we have altered our offering and introduced more offers and more deals. The result is that we have remained very busy, albeit at a reduced margin."
-- G.R.
09.17.09
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3:01 PM
Sounds as though what had become a messy situation at Papagp Golf Course in Phoenix is about to boil over. The Arizona Republic has the story
here.
To summarize, Papago, one of the better public golf facilities in the country, underwent a big renovation project two years ago. That project was overseen by Arizona Golf Management LLC, which is part of the Arizona Golf Foundation, which is the tax-exempt arm of the Arizona Golf Association. As part of the deal, the AGF took over operation of the facility.
Key parts of the project -- such as the construction of a new clubhouse -- have not taken place. Several longtime Papago employees have been laid off. Revenues at the course are down (not surprising, considering the economy) and payments on the $9 million loan on the project are starting to come due. According to the story, the Arizona GA president, Frank Shipman, said the AGF has begun "the process of withdrawing from day-to-day operation of the course."
From the Arizona Republic story: "Randy Joly, who served as president of the Papago Men's Golf Association in the mid 1990s and is currently on the AGA's board of governors, said he believes the AGA 'bit off more than it could chew. Some poor choices were made in terms of the architect. Poor choices were made by AGA management in terms of what they thought the course could be, and what they thought the city could do.' "
--G.R.
09.11.09
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4:09 PM
Two new additions to the golf course bankruptcy files:
In Bluffton, S.C., Old Carolina GC, a nine-hole course that used to be an 18-hole layout until nine holes and the driving range were rezoned four years ago so developers could turn them into houses, will be sold at a foreclosure auction Oct. 5. Its owner defaulted on a $1.3 million loan in May. Details
here.
And in Palm Desert, Calif., the Palm Desert CC closed Monday, a result of its owners filing for bankruptcy in June. According to this
story in Friday's edition of The Desert Sun, city officials say they are monitoring the course to make sure the owners continue to do basic maintenance on the course while it is out of operation so that it does not become a "public health or safety hazard."
Sounds as though it already is. Robert Okren, a Palm Desert resident who lives near the course and complained to city officials, told the newspaper, "All the water [hazards] on the course are stagnant. It stinks."
--G.R.
09.04.09
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12:19 PM
Last week, we passed along a
report about the troubles at Makena Resort in Maui: Investors who had bought the resort two years ago with plans for a 15-year, $800 million development, are now in default on their $192.5 million mortgage.
Thursday, Pacific Business News had an update on the situation. According to this
story, a new management company (so far unidentified) will take over the operation of the resort, which includes the Maui Prince Hotel and Makena golf course. According to Barry Sullivan, a spokesman for Wells Fargo Bank, which holds the note on the mortgage, both the hotel and the golf course will remain open for business.
"The threat of closing has disappeared," Sullivan told Pacific Business News. "We are confident there will be a smooth transition to the new resort management company."
-- G.R.
09.03.09
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4:45 PM
Another high-end golf club is facing hard times: The Retreat at Stone Eagle near Palm Springs, Calif., features $2 and $3 million homes and an award-winning Tom Doak-designed, Stone Eagle GC, but that course is now in a stage of foreclosure.
According to this
story in Wednesday's edition of The Desert Sun, Stone Eagle's lender, Pacific Western Bank, has filed a Notice of Default against the course, which reportedly owes the bank $24 million.
The Desert Sun says Stone Eagle has 200 equity members, and cites "anecdotal information" that those members have been asked to kick in $100,000 apiece to keep the course open.
"As with every other club in the valley, we've suffered in these economic times with a slowdown in sales," Ted Lennon, a spokesman for LDD Development, which built the course, told the newspaper. "But we're still selling memberships. We're up and operating and re- seeding. And we just sent out announcements and tournament schedules for the year."
-- G.R.
09.01.09
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6:15 AM
Greg Norman has re-listed his eight-acre estate in Jupiter, Fla., for $60 million. He originally listed the property two years ago for $65 million and eventually dropped the price to $47.5 million, but it never sold and he took it off the market. Now it's back on. Maybe the Shark sees a real-estate recovery in our future.
-- G.R.
