The growing popularity of golf has made many municipal golf courses look like Saturday morning shootouts. Crowded conditions on the first tee would suggest that there is a squeeze on space.

According to William Amich, President of the American Society of Golf Course Architects, "Quite the opposite is the case. Many municipalities have the open space which is needed for developing golf courses. However, some governmental units do not have the development funds or managerial experience to build and operate a public golf course profitability. Also, some municipal governments are reluctant to propose any such projects that would add to the burden of the taxpayers."

According the the ASGCA president, there has been a decided trend toward the use of leasehold agreements, "which bring municipal government and private enterprise together in a mutually beneficial relationship."

Land is made available to a promoter for leasing on a long term basis, usually up to 50 years. The promoters and his investors, who generally include persons skilled in the development of golf courses, provide the necessary construction funds and assume the major share of the risk. In return for use of the property, the investors pay a percentage of the course revenues, or a fixed fee, or a combination of both to the municipal landlord. At the end of the lease term, the property and all improvements revert to the municipality.

The rent during the initial years should be small to allow the project to generate enough cast flow to sustain both operating costs and a reasonable return to the investors. Professional advice should be sought at the initial states of the project. Construction budgets vary greatly. But most courses will cost at least $500,000, and perhaps well over $1 million, depending on the location and condition of the land.

When a golf course architect is brought into the project at the onset, a comprehensive master plan can be prepared for municipal review. Cooperative efforts between government and private developers can be found from coast to coast.

The Huron-Clinton Metropolitan Authority is building two municipal golf courses in the Detroit area, using leasehold agreements with private developers in Ann Arbor and Fort Wayne. The developers will operate the courses under graduated rent schedules, based on a percentage of the gross income, including greens fees, cart rentals, and restaurant revenues.

Private developers and municipal authorities are very active users of leasehold agreements in California. Courses are under construction, or on the drawing boards, in Burlingame and Melpistas, and exploratory discussions are in progress with several other communities.

Few officials will dispute the benefits of a municipal golf course. But many are surprised at the profits such operations can yield. Well-planned golf courses can serve as the cornerstone of successful park operations, generating revenues to support themselves, as well as other park facilities. Ample playing facilities will also propogate the game's popularity for years to come. Additional information may be obtained from the American Society of Golf Course Architects, 221 N. LaSalle St., Chicago, IL. 60601.

(Release courtesy of American Society of Golf Course Architects)

Illinois Parks and Recreation 9 May/June, 1978