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Larry Hirsh,
CRE, MAI, SGA, FRICS
President
Golf Property Analysts
RECENT PUBLICATIONS
Learn more about GPA's consulting services
Tax Assessment Appeal Considerations
It's Mid-July and time for the Open Championship, this year at Muirfield, to be held from the 18th to the 21st. Follow all the action as Ernie Els defends at http://www.theopen.com/
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Conshohocken, PA 19428
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GOLF COURSE UTILIZATION RATES
Last week, someone raised the question of utilization rate for the golf course at a private club. With most clubs (and daily fee courses) constantly striving to drive revenues higher, I thought this would be a good topic to address as many clubs and courses struggle with the question of whether more is better.
This issue is one that is debated frequently as clubs try to maintain dues at affordable levels and daily fee courses seek optimum levels of profitability. There is no one right answer to how many rounds or how many members as each club is unique. I invite you to visit my BLOG to read my thoughts and share yours about golf course utilization.
CLUB REAL ESTATE TAXES
It's always "Tax Season" somewhere, and I've recently shared some thoughts on the various ways clubs can address their real estate tax issues with the folks at the National Club Association in this Club Director Magazine article. Property taxes are a major expense and as real estate markets recover, clubs are likely to be under increased pressure from cash strapped school districts and municipalities for tax revenues. There are multiple ways to approach assessment appeals and this article, to be published this month will help each club determine the best way for them.
DOES SIZE MATTER?
Recently, one of my colleagues in the Society of Golf Appraisers (SGA), distributed a survey to our members asking if the amount of land area (# of acres) was a significant factor in analyzing golf property sales for value. The responses were interesting.
There was near consensus that we typically do not adjust for differences in land area as a matter of course. Inherent in this is that the golf course has enough land to be desirable, safe and functional. One course that might use 250 acres on a wooded site with variable terain and wetlands and environmentally sensitive areas might only use 150 acres (or less) nearby on a level site with limited obstacles to generate similar revenues.
Where size very well might matter is if the course requires expansion, a portion of it might be condemned under eminent domain or if the Highest and Best Use is for an alternative use. While one of my colleagues noted that Merion Golf Club (PA), which recently hosted the US Open, has only 111 acres, it certainly qualifies as a great course and held up well during the recent US Open, however reportedly the USGA (and likely the club) sacrificed millions in revenue resulting from limits on ticket sales, displaced hospitality and concessions and the cost of renting nearby homes and yards to accomodate the infrastructure necessary for a modern major championship.
HIRSH TO MODERATE CONFERENCE PANEL
GPA President Larry Hirsh will be moderating a panel discussion at the upcoming Crittenden Golf Conference in Phoenix, AZ, October 7-9, 2013. Hirsh will also be presenting at the GOLFWEEK Donald Ross/Architecture seminar at Pinehurst, NC on November 10-11, 2013.
GOLF COURSE FINANCING & BROKERAGE
GPA is available and ready to help solve your golf property financing and marketing challenges. Call us to see how we can help.
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