ANALYSIS OF CITY OF CLEARWATER MUNICIPAL GOLF COURSES
pR:L
q. J 3 ' 9 7
wS-O
Analysis of
City of Clearwater
Muncipal Golf Courses
Clearwater, Florida
~.
I
; Clearwater
()
Interoffice Correspondence Sheet
From:
Brian Aungst, Mayor-Commissioner
Ed Hooper, Commissioner
Ed Hart, Commissioner
Bob Clark, Commissioner
j.B. johnson, Commissioner
Kevin E. Dun~ Recreation Director
Mike Roberto, City Manager
COPIES TO-
COMMISSION
TO:
SEP- 2
Copies:
PRESS
CLERK I A TIORNEY
Date:
September 1, 1999
Subject:
Clearwater Country Club & Clearwater Golf Park Report
Attached is a completed copy of a report conducted by NGF Consulting, Inc. of juniper, Florida, concerning
the Clearwater Country Club and Clearwater Golf Park.
If you have any questions relative to this report, please don't hesitate to get in touch with me at 562-4823.
- KD/ AKlldwc
s:\Parks\La~ra\Memo~}.KD\Mayor-CommissionerrNGF Golf Course Study. doc
Analysis
of the
City of Clearwater Municipal Golf Courses
Clearwater, Florida
Submitted To
Kevin Dunbar, Director
Department of Parks and Recreation
100 South Myrtle Avenue
Clearwater, Florida 33756
727-562-4824
Submitted By
NGF Consulting, Inc.
1150 South US Highway One
Jupiter, Florida 33477
561-744-6006
AUGUST, 1999
c!,;SULTlNG
Contents
Introduction .... ..... ..... ......... .......... .......... ....... ......... ....... ........ .............. ....... ........ ... 1
Executive Summary.. ....... ............ ... .... ........................... ... ......... ........ ......... ...... ..... 3
Financial Projections. ........... ....... ............ ...... ........ ......... ...... ......... ...... ......... ... ..... .............. 3
Management Recommendation. ...... ...... ...... ..... ............ ..... ... .... ..... .... ... ...... ...... ..... ........... 5
Golf Course Renovations and Upgrades ........................................................................... 5
Clearwater Country Club ............................................................................................................5
Clearwater Golf Park ...................................................................................................................6
Area Demographics and Economics ................................................................................. 6
Golf Demand/Supply Estimation ....... ...... ......................... ..... ....................... ...... .............. 7
Clearwater Area Economic Overview .................................................................... 8
County Profiles .... ......... ..... ............. ....... ...... ...... ........................ ...... ............................ ....... 8
Hills borough County .................. .............. .................................................................................. 8
Pine lias County....... ........................ ............................................................................................. 8
Pasco County ... ....... ..... ....... ................................................................... ......................................9
Hernando County .................................................................... .... ............................... ................9
Permanent Resident Demographics .................................................................................. 9
Population ... ... ....... ..... ............ ..... ....... ..... ........... ... ..... ... ....... ..... ....... ................. ........ .... ..............9
Median Age ..... .......... .......... ...................................... ................ ................................................. 10
Median Household Income Trends .........................................................................................10
Seasonal Resident Demographics .................................................................................... 11
Summary - Permanent and Seasonal Population .......................................................... 12
Economic Activity............... ....... ..... ....... ....... ..................... ..................... ......... ................. 13
Labor and Employment ............................................................................................................13
Employment by Industry Sector ........................................................................................;......13
Major Employers ....... ..... ........ .............. ........................... .... ..... ...... ............................. .............. 15
Unemployment ......................................................................................................................... 16
Taxable Sales.......... ........ ................. ....... ............................... .............................. ....................... 16
Real Estate Trends .....................................................................................................................17
Other Pinellas County Real Estate Trends ...............................................................................17
Commercial Occupancy Trends ...............................................................................................18
Office Space............ ................. ........................ .......................... ........................................ 18
Business Park Trends .........................................................................................................19
Tourism Trends ...................................................................................... ............................ 19
Economic Overview Conclusions ..................................................................................... 20
Clearwater Golf Market Overview...................................................................... 21
Participation Research Overview ..................................................................................... 21
Market Area Definition .................................................................................................... 22
Current Market Demand for Golf ................................................................................... 24
Market Demand ....... ......... ..... ........................... ...... ................................................... ....... 26
Primary Market Area. ...... ..... ........... ...... ..... .......... ........ ................. ...... ..... .... ............. ....... 27
City of Clearwat11r Golf Course Analysl,
eNGF
ONSULT'NG
Contents
(continued)
Golf Participation in the Primary Market Based on Age Distribution ...................................27
Golf Participation in the Primary Market Based on Income Distribution ............................ 27
Primary Market Demand Summary: Comparison of Both Models ........................................28
Comparison of Primary Market Demand and Supply............................................................ 29
Secondary Market Area .... ..... .......... ......... ......... ..... ......... ...... ...... ............ ..... .................... 29
Golf Participation in the Secondary Market Based on Age Distribution ............................... 29
Golf Participation in the Secondary Market Based on Income Distribution ........................ 30
Secondary Market Demand Summary: Comparison of Both Models .................................... 30
Comparison of Secondary Market Demand and Supply........................................................ 31
Seasonal Resident Demand. ........ ......... ......... ....... ...................... ....... ........ ....... ..... .... ....... 32
Seasonal Demand Model ..........................................................................................................33
Tourist/Visitor Golf Participation ................ ........ ...... .......... ...... ...... ...... ...... ........ ........... 33
Tourism Overview ...................................................................................................................... 33
Participation Estimation ............... .......... ...................................................... ............................ 33
Tourist Participation Model ............................................................................................. 34
Golf Market Demand Conclusions .................................................................................. 35
New Golf Courses .... ...... ...... ...... ..... ........ ..... .......... ......... ...... .............. .......... ....... ............. 35
Golf Course Inspections .. .............. ................ ................................. ..... ....... ....~... 36
Clearwater Country Club . ...... ............ ................ ......... ...... ...... ...... .................. ....... .......... 36
History and Background of the Clearwater Country Club ..................................................... 36
Clearwater Country Club Operation ....................................................................................... 38
Membership Fees ...................................................................................................................... 38
Financial Performance. ..................... .......................................................... .............................. 40
Golf Operation............. ......... ........ ........ ............ ............ ....... ..... ..... ...........................................41
Food and Beverage Operation .................................................................................................41
Maintenance Operation ................. ........ ............ ............. ......... ........ .......... .... .................. ........ 42
Golf Carts ...... ............ ............................. .... ........ ................................................. ..... ............ ...... 43
Course Conditions and Evaluation .......................................................................................... 43
Greens......................... ............... ....... ........... ............. .......... .............................. ......................... 44
Tees . ....... ....... ....... ..... ......... ... ....... ........... ....... ..... ........... ..... ............. ....... .... ........ ......... ..... ..... .... 44
Fairways ............. ........... ... ..... ..... ..... .... ....... ... ......... ....... ... ..... ............. .... ..... .... ........ ..... ............ ... 44
Cart Paths.. ...... ....... ......... .................. ................... ..... ........ ....... ..... ......... ........... ..... ............ ........ 44
Bunker Renovation ...................................................................................................................45
Irrigation System ................. ..... ..... ........... ............. .......... ......... .......... ......... .......... ......... ........... 46
Stevenson's Creek Improvements ............................................................................................46
Maintenance Buildings ... ..... .... ..... ..... ... ... .... .... ..... ........... .... .... ..... ..... ......... ..... ..... .... ..... ........... 48
Driving Range ... ....... ................... ........ ....... ....... .......................... ............ ..... ....... ..... ............ ...... 49
Clubhouse Building .......... ................ ....................... ....................... ..... .......... ................ ........... 49
Estimated Renovation Costs .....................................................................................................50
Inspection Conclusions and Recommendations ..................................................................... 50
Clearwater Golf Park .... ............ ....... ......... ............... ................ ............... ................ .......... 52
History and Background of the Clearwater Golf Park ............................................................ 52
Clearwater Golf Park Operation ..............................................................................................53
1999 Daily Fees .......................................................................................................................... 53
Financial Performance.... ............................ ....... ..... ....... ........................... .... ................. ........... 53
Golf Operation. ....... ..... ......... ........ ........ .............. ..... ........ .... ..... .............. .... .... ........ .... ....... ....... 53
City of Cltlarwater Golf Courstl Analysis
~!!8F
~NSULTING
Contents
(continued)
Food and Beverage Operation .................................................................................................54
Golf Carts .......... ..... ..... ..... ............... ................... ..... ............................................................. ...... 54
Maintenance Operation . .... ...... ...... ........ ..... ..................................... ................. ................. ...... 54
Course Conditions and Evaluation ..........................................................................................55
Greens........ ......... ... .......... .... ........ ........ .... ..... ..... ....... ............. ......... ........ ..... ....................... ....... 55
Tees . ..... .... ......... ................ ............ ....... ..... ..... ....... ............... ..... ....... .... ... ..... ..... ......................... 55
Fairways...................... ..... ...................... ................. ................... ....... ............ .......... ............ ........ 56
Cart Paths........................................ .......... ............ ......... ........................... ............. .................... 57
Irrigation System ........................................................ .................................................... ........... 57
Bunkers... .................................... ........ .... ............. ................................................................ ...... 58
Maintenance Buildings ..... ...................................................................... .................................. 58
Clubhouse Building ...................... ......................................... ................................................... 60
Driving Range................. ............... ........................ .................................................................... 61
Estimated Renovation Costs .....................................................................................................61
Inspection Conclusions and Recommendations ..................................................................... 61
Finan.cial Overview........ ..... ... ...... ... ..... .... ....... ....... ........ .... ..................... ... .......... 63
Financial Assumptions.... ............ ...... .................. .................. ............................................ 63
Estimated Maintenance and Operational Expenses ...................................................... 65
Clearwater Country Club Maintenance Expense .................................................................... 66
Clearwater Country Club Administrative & General Expense ...............................................67
Projected Performance Levels for the Clearwater Country Club Golf Course .....................68
Conclusions .. ...... ... ........... ... ................ .... ......... ................................ ... ........... ...... ............ ...... ... 70
Clearwater Golf Park Maintenance Expense ........................................................................... 71
Clearwater Golf Park Administrative & General Expense ...................................................... 72
Projected Performance Levels for the Clearwater Golf Park Golf Course ............................ 73
Conclusions ........ ......... ...... .... ..... .......... .......... ... .... ................. ..... ... ............. ............ ..... ....... ...... 75
Management Options .... ....... .......... ......................... 0 0........... ...............0.. .......... 0" 76
Management Contract .................. ............... ...... .... ..... ... .... ...... ..... .... ..... .......... ..... ........... 76
Advantages and Disadvantages of a Management Contract ................................................... 78
Operating Lease .... ............... ........ ............... ........ ... ....... ......... ..... ... ... ..... ....... ........... ... ,.... 78
Advantages and Disadvantages of an Operating Lease ...........................................................79
Concession Agreement . ....................... ..................................... ........... ...... ...... ................ 80
Advantages and Disadvantages of a Concession Agreement .................................................. 80
Self-Operation. ... ..... .... ...... ..... ...... ........... ...... ..... .... ......... ... ...... ..... ....... ...... ....... ...... ... ....... 80
Comparisons . ............................. ...... ............... ......... ............ .......... ................... ......... ....... 82
Management Recommendation - Clearwater Country Club ........................................ 83
Management Recommendation - Clearwater Golf Park ............................................... 83
Appendix Materials .... ............ ................. .............. .............. ..... ............ ....... ........ 85
City Df Clearwater GDlf CDurse Analysis
~SULTlNtI
Introduction
The City of Clearwater retained National Golf Foundation Consulting, Inc. (NGF
Consulting) to conduct a comprehensive analysis of two City-owned golf courses.
The two facilities, Clearwater Country Club and Clearwater Golf Park, are cur-
rently operating under long-term leases, which are nearing the end of their
respective terms. The City asked NGF Consulting for recommendations on the
future operation and management of the courses at the conclusion of the leases.
The City of Clearwater and NGF Consulting Ine. entered an agreement that
identified the following scope of services.
NGF consultants will travel to the Clearwater area. During this field visit the
consultants will:
o Meet with City of Clearwater staff and/ or officials to review the scope of work
set forth in NGF Consulting's proposal dated May 5, 1999.
o Review the work schedule and arrange specific dates for progress reports, as
required.
o Collect from the City and/or the respective course operators relevant opera-
tional data and documents. This information will include but not be limited
to:
· Activity records for the past four years.
· Revenues and expenses for the past four years.
· Golf fees for the past four years.
· Management and operational policies.
· Copies of the respective lease agreements.
o Inspect the two golf courses and identify capital improvement projects that
will raise the quality level of each facility to that of competitive courses in the
market area.
City of Clearwatflr Golf Course Analysis
1
#fA!!GF
w"uNSULTING
o Define the Clearwater golf market and estimate its current and future de-
mand for golf services, using NGF Consulting's predictive age and household
income models.
o Collect demographic and economic data to identify the characteristics of the
local golf market.
o Visit competitive golf facilities in the Clearwater golf market and prepare
detailed profiles of each facility.
o Obtain information regarding new courses under construction and proposed
new golf facilities within the determined market area.
NGF Consulting agreed to complete the required scope of work set forth by the
City in the following sequence:
o Phase One: Golf market overview
o Phase Two: Inspection of the Clearwater Country Club and the Clearwater
Golf Park by the consultant(s)
o Phase Three: Identify and document the need for golf course renovations and
upgrades
o Phase Four: Economic and financial performance analysis
o Phase Five: Examine various management and operational alternatives and
recommend the option for each facility that will best meet the City's objec-
tives.
o Phase Six: Prepare report of NGF Consulting's findings and recommenda-
tions
To accomplish these tasks, Angelo Palermo, Senior Associate Consultant, and
Steve Youhn, Project Assistant, visited Clearwater June 23 to 25, 1999. During the
visit they met with Stephen Sarnoff, Associate Planner, City of Clearwater Parks
and Recreation Department; Miriam Frank, lease holder for the Clearwater Golf
Park facility; and John Bailey, President of the Clearwater Country Club. They
toured the golf courses and were introduced to key staff at each facility.
The consultants also obtained community demographic data and information.
The following is the report of consultants' analysis of the City of Clearwater
Country Club and recommendations for its future operation.
City of Clearwatrlr Golf Course Analysis
2
ct,;SULTING
Executive Summary
NGF Consulting has examined the Clearwater golf market with special focus on
the population of golfers in the market areas and the demand for golf opportuni-
ties by residents, visitors and tourists. The consultants also examined the area's
economic climate, existing public access golf courses, and new courses under
development. All indications point to a very active golf market in a region that
has medium to high household incomes.
Based on the assumption the Clearwater Country Club and the Clearwater Golf
Park will be upgraded and improved, the consultants prepared cash flow models
that project activity levels, revenues, expenses, and supportable debt estimates.
The consultants conducted a cursory evaluation of the greens, tees, bunkers,
fairways, and other course components. They developed a list of recommended
improvements that will upgrade the quality and playability of the courses.
Finally, the consultants evaluated the current management method and recom-
mended methods of operation that give the City of Clearwater greater control
over the facilities, the financial means to make needed improvements, and the
measures to protect the City's golf course assets.
The results of NGF Consulting's analysis have been summarized as follows:
Financial Projections
NGF Consulting prepared cash flow models that are based on the assumption
that high quality, professionally maintained and operated IS-hole courses will be
operated at each of the sites.
The results of NGF Consulting's estimated cash flow projections show:
o The Clearwater Country Club, if operated as a public access course that plays
60,000 annual rounds, can expect to generate approximately $1.4 million in
total gross revenue in the first full year of operation. By the fifth year, NGF
Consulting projects gross revenue to be over $1.9 million.
City of Clearwaf1lr Bolf Course Analysis
3
~!!GF
tlUNSULTING
D A daily fee structure that allows modest increases to offset inflation will pro-
vide the needed resources to improve the operation and maintenance of the
course. Green fees are projected increase 50 cents per year for IS-hole rounds
and 25 cents per year for 9-hole rounds.
D Net Operating Income is projected to be a loss of $57,700 in Year One; how-
ever, it is projected to increase to almost $150,000 by Year Five of the opera-
tion.
D NGF Consulting has determined that the golf operation is capable of support-
ing $1.57 million of debt for improvements to the golf course, using pre-debt
service Net Operating Income from Year Five.
D A breakeven analysis of revenues and expenses reveals that at an average total
income (green fees, cart fees, driving range, pro shop and food/beverage
sales) of approximately $24 per round of golf, some 62,400 rounds will be
required to meet operating expenses the first full year of operation.
D The Clearwater Golf Park, operated as a public access course that plays 60,000
annual rounds, can expect to generate approximately $1 million in total gross
revenue in the first full year of operation. By the fifth year, NGF Consulting
projects gross revenue to be over $1.5 million.
D A daily fee structure that allows modest increases to offset inflation will pro-
vide the needed resources to improve the operation and maintenance of the
course. Green fees are projected increase 50 cents per year for IS-hole rounds
and 25 cents per year for 9-hole rounds.
D Net Operating Income is projected to be a loss of $104,600 in Year One,
however it is projected to increase to $132,000 by Year Five of the operation.
D NGF Consulting has determined that the golf operation is not capable of
supporting any debt in the early years of operation. However, using Net
Operating Income from Year Five, $1.4 million of debt can be supported for
improvements to the golf course.
D A breakeven analysis of revenues and expenses reveals that at an average total
income (green fees, cart fees, driving range, pro shop and food/beverage
sales) of approximately $17.50 per round of golf, some 66,000 rounds will be
required to meet operating expenses the first full year of operation.
NGF Consulting believes golf facilities in the Clearwater area market can be
financial successful if professionally maintained and expertly managed. Our
analysis of the area's demographics, economic climate, theoretical as well as
demonstrated demand for golf, market share, and financial projections leads us
to conclude that the Clearwater Country Club and the Clearwater Golf Park
operations can be both profitable and beneficial to the City.
City of Clealwal111 Golf CoulSe Analysis
..
~SULT'NG
Management Recommendation
NGF Consulting has analyzed the economic climate of the region, projected the
current and future demand for golf in the area, visited competitive courses,
reviewed the Clearwater Country Club and Clearwater Golf Park golf course
operations, inspected the courses, and identified course deficiencies. Based on
this examination, we recommend the City of Clearwater continue to lease the
Clearwater Country Club to the members. We recommend the City issue Re-
quests for Proposals for the lease of the Clearwater Golf Park course to an indi-
vidual or a management firm with extensive experience in operating public
access courses and the financial ability to make a substantial investment in the
property.
NGF Consulting believes the City of Clearwater can upgrade the quality of the
two courses by implementing contractual agreements that require the leaseholder
to make needed improvements, pay rent to the City, and pay real estate taxes on
the respective properties.
It is our belief that the Clearwater Country Club and the Clearwater Golf Park, if
leased under the terms of a strict agreement, can regain their previous stature
and once again become a source of community pride.
Golf (ourse Renovations and Upgrades
The consultants identified several deficiencies in each of the courses that require
improvements to make them competitive with other courses in the region. The
components recommended for renovations and upgrades are:
Clearwater Country Club
o An extensive bunker renovation program is needed to restore the bunkers to
optimum condition. The program includes placing new sand, improving
drainage, and reshaping the bunkers to their original size.
o Fairways should be graded and re-grassed after renovations are made to the
irrigation system.
o Additional cart path renovation is needed.
o The creek that traverses the course needs improvements to its banks and
removal of plant material that detracts from its appearance.
o The maintenance facility should to be enlarged and upgraded to accommo-
date the repair and indoor storage of valuable equipment, materials, and
supplies.
o Target greens should be constructed on the driving range.
City of CleafWatll, Golf Cou,se Analysis
5
~!!IIF
~NSULTING
D The estimated cost of the improvements can easily reach $3 to $4 million,
depending on the results of engineering and architectural studies. These
costs are exclusive of any capital expenditure associated with building a new
clubhouse.
Clearwater Golf Park
D The greens, tees, fairways, bunkers, irrigation system, and cart paths require
extensive renovation or replacement.
D The maintenance facility needs to be upgraded to accommodate the repair
and indoor storage of valuable equipment, materials, and supplies.
D Target greens should be constructed on the driving range.
D The estimated cost of the improvements can easily reach $1.5 million, de-
pending on the results of engineering and architectural studies.
Area Demographics and Economics
NGF Consulting has observed an expanding population that is projected to
increase in the near future, which sustains the Clearwater area economy. The
important findings concerning the economy and demographics are listed below:
D The demographic data on the Clearwater area indicates a modest-sized and
slow-growing population. However, the Clearwater area is part of the Tampa
Bay area, which is growing somewhat faster. Data indicates that the population
in the region is much older than the national average and with much lower
than average household income levels. National trends in the golf industry
indicate greater usage and participation at golf facilities of all types from
older and more affluent age segments. The implication for the City of
Clearwater courses is that the demographics of the region are very favorable
for the future success of modest-priced golf courses.
D The economy of the Clearwater area is sustained primarily by retail trade and
service jobs.
D A very large portion of the total Clearwater area population is employed. The
implication for the Clearwater courses is that activity levels should be high
because of the size and prosperity of the work force.
D Other key indicators such as real estate trends, taxable sales, and tourism all
point to a stable economic environment for the area and a favorable climate
for the golf business.
City of Clearwa"'r Solf Course Analysis
6
~SULT'NG
Golf Demond/Supply Estimation
NGF Consulting has identified the City of Clearwater as the primary market area
from which most of the play at the Clearwater Country Club and Clearwater Golf
Park will be derived. Play is also anticipated from a secondary market, an area
within a 15-mile radius of the City, and from a third market consisting of tourists
and visitors. NGF Consulting fully recognizes the potential to expand these
markets to include residents from surrounding areas, but for purposes of feasibil-
ity study evaluation, NGF Consulting has chosen to retain a conservative posture
in its market estimations. The market demand estimations are used as bench-
marks for estimating potential market strength. The findings on golf supply and
the demand for golf opportunities are listed below:
o A large and growing population of golfers is stimulating activity levels in this
regIOn.
o Using age and household income golf demand models, NGF Consulting has
estimated a large potential golfer population in the Clearwater area. The age
models estimate that approximately 81,000 golfers permanently resided in the
two Clearwater golf markets in 1998. By the year 2003, the number of golfers
is expected to increase to an estimated 83,000 golfers.
o Public golf rounds demanded by the golfer populations based on the age
models are estimated to be almost 2.6 million in 1998 and 2.7 million in 2003.
o The income models estimate there were some 88,000 resident golfers in the
two markets in 1998, and the numbers will increase to over 98,000 by 2003.
o Public golf rounds demanded using the income models are projected at
almost 3 million and 3.5 million for 1998 and 2003, respectively.
o At current rates of tourists and visitors to the Clearwater area, this market has
the potential of demanding over one-half million annual golf rounds.
o NGF Consulting's analysis of golfer population estimates and the demon-
strated demand for golf opportunities based on facility utilization indicate
that the demand for golf opportunities in the Clearwater area will remain
strong for many years to come.
o All of the public golf courses in the market area are operating with rounds of
play activity at or near full capacity. .
o NGF Consulting has identified 21 public access golf courses located in the two
market areas. These facilities are currently providing approximately 1,275,000
rounds of golf annually.
o Based upon observations within the market, NGF Consulting would character-
ize the local public golf market as having low to modest green fees.
o Currently, there are no new golf facilities under development in the
Clearwater area. There are two courses in the preliminary planning stages.
City of Clealwatel Solf CoulSe Analysis
7
~!!GF
tlUNSULTING
Clearwater Area Economic Overview
To appropriately assess the viability of golf facilities in the Clearwater area, the
environment in which they exist must be examined to determine the demo-
graphic composition of the proposed market area. Since the facilities are an
integral part of the business community and are essentially dependent upon the
economic well-being of the area, it is necessary to comprehend trends occurring
in the local economy. This section of the report evaluates the economic environ-
ment of the Tampa-St. Petersburg-Clearwater MSA (Tampa Bay MSA) in addition
to that of Pinellas County to assess growth trends and business patterns. In so
doing, the report discusses demographic and economic trends, including trends
in population, income, labor, unemployment, and real estate. References will be
made to the state of Florida and the Tampa Bay MSA ( which includes Pinellas,
Hillsborough, Hernando, and Pasco counties). In addition, reference is made to
Pinellas County and the City of Clearwater.
County Profiles
HiIIsborough County
This is the largest of the four counties in total population and centers around the
City of Tampa. Hillsborough is an employee-based, working-family market with
an age and income distribution typical of the state and nation as a whole.
Pinellas County
Located across Tampa Bay west of Hillsborough County this is a peninsula bor-
dered by Tampa Bay to the east and south and the Gulf of Mexico to the west.
The resort beaches of Pinellas County are a major tourist destination. The early
growth of Pinellas County through the 1960s was retirement oriented, but since
the early 1970s, growth has come primarily from younger, working families.
Constrained by water on three sides, Pinellas is the most densely populated
county in the State of Florida. The County is literally running out of developable
land, and by the end of the 1990s, new construction will inevitably be limited.
City of ClearwatBr Golf Course Analysis
8
c;,;SULT'NG
Pasco County
Pasco is north of both Hillsborough and Pinellas counties. During the 1970s and
1980s the U.S. Highway 19 corridor of western Pasco County was heavily devel-
oped as a blue-collar retirement area, with the rest of the county remaining rural.
The northward growth of both Hillsborough and Pinellas Counties started push-
ing into southern Pasco County during the early 1990s, a trend that is likely to
continue. The CR 581 corridor of northeast Hillsborough County extends into
Pasco County via the Interstate 75 corridor.
Hernando County
Located north of Pasco County, Hernando is primarily rural in nature, except for
Spring Hill, (which is a sprawling, moderately-priced retirement community).
Permanent Resident Demographics
Pinellas County is characterized by dense population and housing. The proxim-
ity to the greater Tampa Bay metropolitan area, along with the development of
new and improved roadways, has fueled population and employment growth. In
recent years, however, the volume of vacant land available for new development
has virtually disappeared in Pine lias County, with only a few parcels in the north-
ernmost section of the county remaining. In the following paragraphs, NGF
Consulting outlines the changes in population, age, and income characteristics
that identify the permanent population of the area.
Population
The following table indicates the population growth trends for Pinellas County,
the entire Tampa Bay MSA, the state of Florida, and the United States.
General Population Trends
Average Annual Average Annual
Growth Growth
1990 1998 1990-1998 2003* 1998-2003
Pinellas County 851,659 874,597 0.33% 887,105 0.28%
Tampa Bay MSA 2,067,959 2,255,107 1.09% 2,366,784 0.97%
State of Florida 12,937,926 14,890,715 1.77% 16,047,182 1.51%
United States 248,709,873 268,416,907 0.96% 281,211,363 0.94%
Source: CACI Marlceting Systems. Inc. and NGF Consulting
'Projected
City of Cleetwe"', SIIIf Cllurse A.elysls
9
~SULTING
The Tampa Bay MSA includes over 2.2 million people and is the 20th largest
metro area in the nation and the largest MSA in the state of Florida. Its popula-
tion growth between 1980 and 1990 was more than 28 percent, giving it a third-
place ranking among the nation's 20 largest metropolitan areas.
Median Age
In the following table, median age comparisons are made for Pinellas County, the
entire Tampa Bay MSA, the state of Florida, and the United States.
Median Age Trends
Area 1990 1998 2003*
Pinellas County 42.1 43.4 45.3
Tampa Bay MSA 38.6 40.4 42.1
Florida 36.4 38.2 39.9
United States 32.9 35.1 36.3
Source: CACI Marketing Systems, Inc. and NGF Consulting
. Projected
One of the determinants for evaluating the potential for golf demand is the age
distribution of the population. In general, as people age, their potential for
participating in golf increases, as does their frequency of play. Thus, the older a
population becomes, the greater the potential for increased rounds of golf de-
mand. The capability of income trends to assist in determining potential golf
demand will be discussed later in this report. Nevertheless, the average age of
Pinellas County residents is substantially higher than that of residents from the
Tampa Bay MSA, the state of Florida and the United States.
Median Household Income Trends
Median Household Income Trends
Percent Change Percent Change
1990 1998 1990-1998 2003* 1998-2003*
Pinellas County $26,296 $34,222 30.1% $38,952 13.8%
Tampa Bay MSA $26,036 $32,608 25.2% $37,014 13.5%
State of Florida $27,483 $33,507 21.9% $37,537 12.0%
United States $30,214 $38,412 27.1% $44,390 15.6%
Source: CACI Marketing Systems, Inc. and NGF Consulting
. Projected
The above table indicates that household income levels for Pinellas County
residents are higher than those of their Tampa Bay MSA and State of Florida
resident counterparts. In general, as household income increases, so does golf
City of Clea,.atsr Golf Course Analysis
10
c:,;SULTING
participation and frequency of play levels. The capability of income trends to
assist in determining potential golf demand will be discussed later in this report.
Seasonal Resident Demographics
In the table below, NGF Consulting presents estimates of Tampa Bay area sea-
sonal residents as developed by the Hillsborough City-County Long-Range Plan-
ning Department and the University of Florida Bureau of Economic and Business
Research. Seasonal population estimates were developed based on the number
of vacant housing units held for occasional use multiplied by the estimated
number of persons per household. This number was then increased by a factor
of 15 percent to estimate visitors/tourists staying in hotel and motel units. An-
nual increases in seasonal population are based on five years of data accumulated
on increases in taxable sales, traffic counts, gasoline sales, and electrical hook-
ups. Seasonal population estimates as presented do not include some 15,000
seasonal farm workers who migrate to the area during the winter months.
Estimated/Projected Seasonal Resident Population
1990 1998 2003
Permanent Population - Tampa Bay MSA 2,067,959 2,255,107 2,366,784
Seasonal Residents and Visitors 248,000 270,600 284,000
Source: Research Data Services, Inc., University of Florida Bureau of Economic and Business Research, CACI
Marketing Systems, and NGF Consulting
Seasonal residents represent a significant boost to both the population and the
economy in the area for the duration of their stay. These "snowbirds" are typi-
cally retirees, seeking refuge from the colder northern climates, who reside in
Florida for between four to six months in the winter and early spring. Unfortu-
nately, very little concrete data is available regarding their demographic profile,
state of origin, length of stay in the greater Tampa Bay area, and other informa-
tion that would be helpful for the purposes of this analysis. To provide an esti-
mate of seasonal residents in Pinellas County, NGF Consulting has used the ratios
established by the University of Florida Bureau of Economic and Business Re-
search as was used for the Tampa Bay MSA.
Estimated/Projected Pinellas County Seasonal Resident Population
1990 1998 2003
Permanent Population - Pine lias County 851,659 874,597 887,105
Seasonal Residents and Visitors 102,100 104,900 106,500
Source: NGF Consulting
City of CI.a,watl1, Golf Cours. Analysis
11
,.!!..tIF
tlUNSULTING
It is important to note that the above seasonal resident population estimates do
not consider the many shorter-term visitors who stay in hotels, rental condomini-
ums, or short-term rental apartments. The population of these shorter-term
visitors will be considered as part of a Pinellas County tourism estimate presented
later in this section.
Summary - Permanent and Seasonal Population
From the data presented on the previous page, NGF Consulting has made the
following observations regarding the local demographics:
o The population in Pinellas County has been growing considerably slower than
that of the Tampa Bay MSA and the state of Florida. During the 1990 to 2003
period, the Pinellas County population is expected to increase only by 35,000
residents (a 4 percent increase). Nevertheless, the two golf courses are in
convenient proximity to the large population base of most of Pinellas County
and a large portion of the greater Tampa Bay MSA.
o The median age in the immediate Pinellas County market is much older than
the rest of the greater Tampa Bay area, indicating a greater proportion of
older residents. Additionally, the Tampa Bay MSA is also much older than the
rest of the state and the nation as a whole. As discussed above, a compara-
tively older population tends to increase overall golf participation and golf
frequency levels.
o Median household incomes in Pinellas County are growing slower than the
state and national averages. Despite this finding, NGF Consulting believes that
area income levels may be understated somewhat, as they do not reflect the
large retiree population in the area living off its "nest egg." In general, lower
income residents are less likely to participate in golf with a high level of
frequency. The implication for new golf course development in the area is
that activity levels may be adversely impacted if playing fees are set too high
for the market.
o Seasonal residents who come to the Pinellas County area have a significant
impact on its population and economic base. It has been estimated that
seasonal residents may increase the total population of the area by as much as
10 to 15 percent. Given that a large portion of these seasonal residents may
participate in golf, this market can be expected to impact local golf facilities.
City of Clearwater Golf Course Analysis
12
,.!!..
~NSULTING
Economic Activity
The health and economic well-being of a local economy are supported and
determined by a number of factors, including industry sector dependence, labor
force figures, real estate trends, taxable sales, unemployment, and the presence of
major employers. This section of the report focuses on several aspects of the
economy that can have a potential impact on the success of the City's golf
courses.
. labor and Employment
The following table portrays the level of available labor in the civilian labor force
of Pine lIas County and compares it to the Tampa Bay MSA and the state of
Florida from 1990 to 1998.
Total Employment (non-farm)
Plnellas County Tampa Bay MSA State of Florida
Total Total
Total Percent Employment Percent Employment Percent
Year Employment Growth (0005) Growth (0005) Growth
1990 349,767 1.5% 880.4 2.1% 5,400.8 2.1%
1991 337,377 -3.5% 858.0 -2.5% 5,280.2 -2.2%
1992 341,615 1.3% 867.1 1.0% 5,367.8 1.7%
1993 351,036 2.8% 903.7 4.2% 5,585.2 4.1%
1994 362,237 3.2% 957.3 5.9% 5,818.3 4.2%
1995 373,276 3.0% 993.8 3.8% 6,009.3 3.3%
1996 385,275 3.2% 1,022.3 2.9% 6,182.2 2.9%
1997 434,376 11.3% 1,069.5 4.6% 6,414.4 3.8%
1998 449,043 3.2 1,126.5 5.3% 6,677.3 4.1%
1999 NA 1,175.9 - 6,905.3 -
Source: Pinel/as County Economic Development
Employment by Industry Sector
To further illustrate employment trends in the Pinellas County area, NGF Con-
sulting has identified employment levels in the various industry sectors. We have
compared 1997 results with 1980 and 1990 historical trends.
City of Clearwafflr Golf Course Analysis
13
c:,;SULTING
Industry Sector Employment -Pinellas County (OOOs)
1980-1997
1980 1990 1997 Change
Farm 0.2% 0.1% 0.1% -0.1%
Agricultural Services, Other 1.1% 1.0% 1.2% 0.1%
Mining 0.1% 0.1% 0.1% 0.0%
Construction 7.4% 6.1% 5.3% -2.1%
Manufacturing 11.6% 10.9% 10.0% -1.6%
Transportation, Communication & Public Utilities 3.2% 3.1% 3.2% 0.0%
Wholesale Trade 3.9% 4.0% 4.6% 0.7%
Retail Trade 20.9% 21.6% 20.2% -0.6%
Finance, Insurance, & Real Estate 13.1% 9.4% 8.0% -5.1%
Services 28.3% 33.8% 37.8% 9.5%
Federal Civilian Government 1.6% 1.4% 1.3% -0.4%
Federal Military Government 0.8% 0.8% 0.6% -0.2%
State & Local Government 7.8% 7.6% 7.7% -0.2%
Total 315.69 445.42 497.67
Source: Pinel/as County Economic Development
Overall, employment in Pinellas County demonstrates considerable growth for
the 1980 to 1997 period. While almost all of the industry sectors experienced a
positive numerical change in employment over the 17-year period, it is important
to note the changes in the relative proportions of the individual industry sectors.
Pinellas County is experiencing a shift from traditional "blue collar" employment
toward "white collar" employment. Nevertheless, the most significant decline in
employment has been experienced in the Finance, Insurance and Real Estate
sector. This decline, however, has been more than offset by the rapid growth that
has occurred in the Services sector.
City of Clealwafl1l 601f Course Analysis
14
c:lSULTING
Major Employers
The following table lists the major employers in Pinellas County and provides
evidence of substantial employment diversity.
Largest Private Employers in Pinellas County
No. of
Company City Type Employees
Tech Data Computer Products Co. Clearwater Distribution of Computer Products 3,500
Home Shopping Network St. Petersburg Merchandising 3,429
Jack Eckerd Corp. Clearwater Drug, Other Retail 3,375
Florida Progress St. Petersburg Electric Utility Holding Co. 3,000
Times Publishing St. Petersburg NewspaperlPublishing 3,000
Nielsen Media Research Dunedin Media Research 2,600
Raymond James Financial St. Petersburg Financial Services 2,200
Raytheon E-Systems St. Petersburg Electronic Systems 1,670
Honeywell Space Systems Group Clearwater Aerospace, Avionics 1 ,400
Equifax St. Petersburg Credit Card Services 1,400
Special Data Processing Corp. Clearwater Data Processing 1,250
Jabil St. Petersburg Printed Circuit Boards 1,200
Essilor of America St. Petersburg Plastic Lens (Optical) 1,000
Bankers Insurance Group St. Petersburg Insurance Services 950
Val-Pak Largo Coupon Mfg. 847
Baxter Healthcare Pinellas Park Medical Equipment 800
Linvatec Largo Orthopedic Arthroscopy Equipment 750
GTE Directories St. Petersburg Publishing & Printing 710
AegonlWestern Reserve Largo Insurance Services 703
Lockheed Martin Oldsmar Computers & Sorters 700
R.p. Sherer St. Petersburg Soft Gelatin Capsules 630
MCI Pinellas Park Order Processing 550
Compulink St. Petersburg Cable Assemblies 500
Maxxim Medical Clearwater Custom Hospital Procedure Kits 500
Signature Group St. Petersburg Credit Card Services 500
Xerox Corp. St. Petersburg Customer Service ~
Total 37,664
Source: Rose Residential Reports
In addition, the Franklin Templeton Mutual Fund Group has announced plans to
double employment in the Gateway area of St. Petersburg to 3,000 people by
2001. Employment atJack Eckerd Corp., on the other hand, is expected to
decrease as the company moves its accounting and finance departments to Salt
Lake City.
City of CI.tlrwtl'" SDIf CDllrs. Antilysis
15
,.!!.",
tlUNSULTING
Unemployment
In addition to the strength and size of the labor force and the various industry
sectors of employment, unemployment levels provide insight into the overall
strength and flexibility of the local economy. The following table displays unem-
ployment trends for the Tampa Bay MSA.
Unemployment
1990 1991 1992 1993 1994 1995 1996 1997 1998
Tampa Bay MSA 4.9% 6.3% 7.1% 6.4% 5.3% 4.4% 3.9% 3.5% 2.9%
State of Florida 6.0% 7.4% 8.3% 7.0% 6.6% 5.5% 5.1% 4.8% 4.3%
Source: US Bureau of Labor Statistics
Throughout the decade, the MSA has experienced unemployment levels that are
significantly below that of the state as a whole.
Taxable Sales
Like other trends reviewed, taxable sales data can provide additional insight into
the strength of the local economy. The following table highlights sales trends in
Pinellas County.
Taxable Sales - Pinellas County
Amount Annual
Year (millions) Growth
1990 $7,427.99 -
1995 $9,030.66 4.3%
1996 $9,349.71 3.5%
1997 $10,406.20 11.3%
1998 $10,986.97 5.6%
Source: Florida Department of Revenue
The table indicates that taxable sales growth has been strong during the latter
part of the 1990s. This is typically indicative of a strong economy and high levels
of consumer confidence.
City of CI.arwater Golf Course Analysis
16
c:lSULTING
Real Estate Trends
In addition to being indicative of the immediate level of supply and demand for
housing, real estate trends can assist in making implications about the overall
health of the local economy.
Construction Permit Activity-Tampa Bay MSA
Single-Familly Multi-Family
Number Number
Year of Units Change of Units Change
1992 9,721 24% 1,291 -61%
1993 10,331 6% 2,132 65%
1994 10.997 6% 3,762 76%
1995 9,405 -14% 4,214 12%
1996 10,006 6% 4,674 11%
1997 10,745 7% 6,241 34%
1998 11 ,573 8% 7,286 17%
Source: US Bureau of Census
The Tampa Bay MSA housing market is vibrant. The table indicates that the
number of new multi-family housing units built each year has increased at
double-digit rates every year since 1993. The number of residential units has also
increased every year since 1992 (with the exception of 1995), although their
growth rate is not as rapid as that for the multi-family units.
Other Pinellas County Real Estate Trends
As part of our review of the local economy the consultants contacted Rose and
Associates, a local real estate market research firm, and obtained a copy of their
publication, Pinellas County Market Update; Second Quarter 1998. The following
points summarize and highlight this firm's findings on the local real estate mar-
ket.
o Pinellas County is one of the most densely developed counties in Florida. In
south Pinellas County there is very litde available land for new real estate
projects.
o Residential housing permit activity (as shown earlier) demonstrates only
modest increases in developments undertaken, however, the sale of both
single-family and multi-family dwelling units are experiencing moderate to
high annual price increases. As land becomes increasingly scarce, prices will
continue to bid upwards.
City tit Cle.,ws., Gtllt Ctlurse An.lysls
17
eNGF
ONSULTING
D During the last ten years, apartment vacancy rates have diminished from
approximately six percent to less than three percent.
D Retail space vacancy rates of seven to ten percent existed during the late 1980s
and early 1990s. In recent years, vacancy rates have been eight to nine per-
cent.
D The Pinellas County office market, which endured vacancy rates as high as 30
percent in the early 1990s, in recent years has enjoyed vacancy rates in the 11
to 15 percent range.
D Lastly, business park vacancy rates, which were as high as 15 percent in the
late 1980s, have fallen to the five to seven percent range.
The previous points indicate that larger tracts of developable land in Pinellas
County are scarce. This lack of developable space has led to low vacancy rates in
the various real estate markets. These trends also indicate that there is increasing
demand for real estate product in Pinellas County. In general, these trends
provide a favorable outlook on the local economy and the potential for the golf
course business.
Commercial Occupancy Trends
Office Space
Office space absorption has increased, with 615,450 square feet absorbed during
the first half of 1998 and 653,070 square feet absorbed during 1997, compared to
207,720 square feet absorbed during 1996 and 433,005 square feet in 1995. The
office vacancy rate currently stands at 9.2 percent. The Clearwater/North
Pinellas area has the most (41percent) office space in Pinellas County.
Location of Multi-Tenant Office Space in PineUas County July 1998
Percent Percent
of Space of Space
Existing Existing Vacancy Under Under 1996 1997 1998
Area Spacing (sqll) Space Rate Construction Construction Absorption Absorption Absorption
Clearwater!
North Pinellas 4,080,000 41.2% 8.3% 36,580 169,410 101,255
Gateway!
Mid Pinellas 3,230,000 32.6% 7.0% 337,000 100.0% 55,070 272,720 418,800
St. Pete!
South Pinelles 2.592.000 262% ~ .11MZQ 2.1O...9.4Q ~
Total 9,902,000 100.0% 8.1% 337,000 100.0% 207,720 653,070 615,450
Source: Maddux Report and Rose Residential Reports
City of Clea,wa., Golf Course Analysis
1B
c!,;SULnNG
Business Park Trends
Business park absorption increased sharply in 1997, with 801,650 square feet
absorbed, compared to 762,450 square feet in 1996 and 414,110 square feet in all
of 1995. However, first half 1998 absorption was only 184,750 square feet. .The
Gateway area of mid-Pinellas County contains over half of the business park space
in the county, with the remainder scattered throughout the rest of the county.
Location of Business Park Space in Pinellas County June 1998
Percent Percent
of Space of Space
Existing Existing Vacancy Under Under 1996 1997 1998
Area Spacing (sqft) Space Rate Construction Construction Absorption Absorption Absorption
Gateway 8,950,000 55.7% 3.1% 450,000 54.4% 536,500 639,110 124,250
Remainder 7.130.000 ~ ~ ~ ~ ~ ~ 2MQQ
Total 16,080,000 100.0% 5.2% 864,650 100.0% 762,450 801,650 184,750
Source: Maddux Report and Rose Residential Reports
Tourism Trends
Another measurement of strength of the local economy is the level of visitation.
This is especially important for the central-south Florida area. The following table
highlights visitation trends for the Tampa Bay MSA.
St. Petersburg-Clearwater Area Tourists
Number of Visitors Canada Percent Europe Percent
1988 3,625,543 601,962 16.6% 890,166 24.9%
1989 3,720,298 670,469 18.0% 1,087,367 29.2%
1990 3,835,094 705,818 18.4% 1,035,215 27.0%
1991 3,740,303 677,018 18.1% 776,484 26.8%
1992 3,792,546 766,670 17.3% 844,220 22.3%
1993 3,857,118 587,750 17.3% 859,060 22.3%
1994 3,891,592 527,448 13.6% 664,846 17.1%
1995 4,016,023 425,071 10.6% 786,361 19.6%
1996 4,140,496 427,459 10.3% 865,211 20.9%
1997 4,251,045 425,109 10.0% 852,731 20.1%
Average Annual Growth Rate 2.0%
Source: Sf. Petersburg-Clearwater Area Convention & Visitors Bureau
As shown in the previous table, the St. Petersburg-Clearwater area receives in
excess of four million visitors annually, of which approximately 30% hail from
Canada or Europe. The moderate growth in visitation trends and the popularity
of the area with foreign visitors suggests a stable, expanding local economy.
City of CI.ar.a"r Golf CoutS. Analysis
19
~SULTlNG
Economic Overview Conclusions
The Tampa area economy has rebounded strongly from the recession of 1990/91,
with employment growth the highest since the mid 1980s. There is a lack of land
available for development in Pinellas County. However, NGF Consulting believes
that the remainder of the economic data indicates that the local Pinellas County
area economy is in a period of relative stability and modest, sustainable growth.
These factors are viewed as being positive indicators for future success of existing
courses. The following points highlight the results of our findings regarding the
. soundness of the local economy:
o There is a growing base of permanent employment in the area. Of particular
interest is the growth in office/professional business space in the center of
Pinellas County in the Gateway/Carillon office parks. These office parks
contain large numbers of white collar/professional workers in relative prox-
imity to the Clearwater Country Club and Golf Park.
o Unemployment rates in the greater Tampa Bay area and Pinellas County in
particular has been significantly lower than the national average for the last
several years. Steady employment and low unemployment are viewed as
positive indicators for golf participation in the area.
o Building permit activity indicates that the Tampa Bay MSA housing market is
robust. While the majority of housing growth may be occurring outside of
Pinellas County, the City's golf courses benefit from any resultant population
Increases.
o The large numbers of tourists who visit the Tampa Bay area and Pinellas
County each year add significantly to the local economy. It has been esti-
mated that the total volume of the Tampa Bay area tourism industry ac-
counted for as much as $1.33 billion in visitor expenditures in 1995. Given
that a portion of tourism expenditures in the area will be spent on golf, the
large tourist market in the area can be expected to have a positive effect on
the local golf market.
City of Clearwater Golf Course Analysis
20
~SULTING
Clearwater Golf Market Overview
In this section of the report, NGF Consulting identifies current trends in the
Clearwater golf market. Both the number of current rounds of golf supplied and
estimated potential rounds of golf demanded by area residents and visitors are
detailed for 1998 and 2003. Rounds represent the number of occasions a golfer
visits a course to play, and NGF Consulting's definition of "round" includes either
a 9-hole or 18-hole round. Our rationale is that a person who plays nine holes
has played a round and a person who plays 18 holes or more has played a round.
Converting an IS-hole round into two 9-hole rounds would imply that a person
has visited the course twice. Likewise, converting two 9-hole rounds into one 18-
hole round would imply that a person visited the course only once.
The following points highlight the areas covered in this section:
. Background on NGF Participation Research
· Definition of the Market Area
· Current Market Demand for Golf
· Market Demand Potential
· Comparison of Actual Demand & Potential Demand
· Conclusion
Participation Research Overview
For over 60 years, the National Golf Foundation (NGF) has been the nation's
leading information source for the golf industry. Throughout those 60 years, the
NGF has provided the most current and complete assessment of the nation's
interaction between supply and demand in the game. To this end, NGF research
focuses on, but is not restricted to, the number of facilities currently operating in
the United States and the number of golfers and the rounds they play at Ameri-
can facilities.
Golf Participation in the United States, 1998, published by the National Golf Founda-
tion, provides dependable demographic information on the number, nature, and
habits of golfers in each state and the nation as a whole. This survey of golfers by
City of Clea,wal11, Golf Course Analysis
21
~SULnNG
the NGF, with the assistance of Market Facts, Inc., a market research company
based in Chicago, is the largest and most detailed sampling of sports participation
and purchasing habits conducted in the United States.
In order to assess the growth of demand for the game, the NGF began a new
method of determining the size of the golf population in 1985. Each year since
1985, the NGF has commissioned Market Facts, Inc. to conduct a survey of golfer
participation habits. In January of each year, Market Facts mails golf participation
. surveys to 30,000 households nationwide to determine the previous year's golf
participation characteristics. In order to be representative of the U.S. population,
the observations are weighted to match total U.S. demographics. Because the
sample is so large, the NGF is extremely confident of its accuracy. In statistical
terms, the national 1998 participation rate is estimated to be 12 percent plus or
minus 0.2 percent at the 90 percent confidence level.
The NGF has conducted annual participation surveys for the last 14 years. Conse-
quently, it has a database of almost one-half million individuals and their golfing
or non-golfing behavior as well as their demographic and socia-economic charac-
teristics. The NGF is capable of determining participation rates and frequency of
play statistics for any of the nation's states or major metropolitan areas.
While the NGF is national in scope and its primary focus is the assessment of
supply and demand across the United States, it also has the capability to evaluate
specific markets. The breadth and depth of the NGF's databases ensure that
market assessments made by NGF Consulting are as accurate and valid as possible.
The true value of the data is not only its detail and accuracy, but also its applica-
tion to specific analyses conducted by NGF Consulting, such as for the Clearwater
market area.
Market Area Definition
The Golf Consumer Profile, 1998 edition, a research document published bi-annually
by NGF, determined that "on average nationally, golfers travel about 12 miles one
way to play at their most frequently played course." The survey also determined
that golfers travel a considerable distance farther to regularly playa good course.
(Average golfers report a willingness to travel just under 27 miles, estimated to be
a trip of 36 minutes.) Of course, these distances vary depending on the popula-
tion density of the area and the number of competitive golfing facilities in the
market. Taking into account these factors, NGF Consulting defined the geo-
graphic markets from which the Clearwater courses would draw.
The Primary Market is that geographic market from which a golf course draws
the majority of play. NGF Consulting determined that the City of Clearwater is
City of CI..rw..r Golf Cours. An.lysls
22
c:&SULTlNG
the primary market for the Clearwater Country Club and the Clearwater Golf
Park courses. This area is the market from which the two golf courses currently
draw the greatest number of customers, and it is the area new customers are likely
to come from in subsequent years. This is consistent with the observation that
municipal courses traditionally attract local residents from the boundaries of the
municipality in which the course sits. Nevertheless, given the state of the golf
market in Pinellas county, local courses draw a substantial percentage of overall
play from non-city residents. For that reason, NGF identified a secondary geo-
. graphic market from which both courses will likely draw customers.
In determining the size of the Secondary Market for the two courses, NGF Con-
sulting considered several factors including traffic congestion, competition, and
golfer travel patterns observed at other area public access golf courses. Interviews
with area golf operators indicate that Pinellas-area golfers tend to travel greater
than average distances to play golf, especially for an affordable, high quality
facility. Area operators also stressed that the quality of the course has a major
impact on a customer's willingness to drive extra distances to play golf. If fees are
similar between two courses, area operators report that players will make an extra
effort to play the higher quality course even if it is farther away. Tee time avail-
ability is also an important determinant. On some local courses (~., Mangrove
Bay), it is extremely difficult to obtain a favorable tee time. Accordingly, golfers
often must travel greater distances just to be able to play at a certain time.
Based upon research of the local golf market, the consultants determined that
the secondary market for the two courses extends to a 15-mile radius. Accord-
ingly, this defined market area encompasses Largo, Dunedin, Tarpon Springs,
Seminole, Palm Harbor, west Tampa, and northern St. Petersburg. (see attached
map). The secondary market is, however, considerably smaller than the 27-mile
national average (discussed above) for several reasons. First, the number of
public golf facilities in the area restricts the market size. A golfer is not likely to
drive 25 miles to playa course if there are other facilities of comparable quality
(and price) within a shorter distance of his/her home. One variable in this
equation, however, assumes that the courses are equally accessible. If the closest
comparable courses have no available tee times (or unfavorable tee times), golf-
ers will drive the extra distance to play at a course that does have availability.
Second, given the urban nature of the local market, golfers are less likely to drive
long distances through heavily traveled areas to playa specific course. Densely
populated areas with heavy traffic decrease a resident's desire to travel an ex-
tended distance for many goods and services, including golf. Nevertheless, as the
Tampa Bay MSA area continues to grow, more rounds are anticipated from this
market.
City of Clllarwa"r Bolf COlltsll Alla/p/s
23
c:,;SULT'NG
A third market is the combined tourist and seasonal visitor market, which in 1998
consisted of 4.2 million (Pinellas County) tourists and approximately 105,000
seasonal residents. While this market has no geographic boundary, it is a viable
market for golf rounds, because course operators indicate that a large percentage
of overall winter play comes from tourists and seasonal residents. Accordingly,
the demand from this segment of the market significantly affects the local golf
market. NGF Consulting quantifies the demand from this segment in the Visitor
and Tourist Market section of this report.
Current Market Demand for Golf
In addition to examining and evaluating the Clearwater golf facility, NGF Con-
sulting analyzed the competitive courses in the primary and secondary market
areas, paying particular attention to the number of potential rounds played. NGF
Consulting obtained verifiable rounds played data from each of the public access
golf courses in the two market areas. The consultants are confident that these
estimates accurately reflect the rounds each course is capable of accommodating,
given reasonable weather conditions for an average golf season in this region.
The following table is a list of public access golf courses in the Clearwater market
area and the number of rounds played at each facility in 1998. Complete profiles
of each course are in the Appendix of this report.
City of Clearwater Golf Course Analysis
24
~SULTlNG
Public Access Golf Facilities in the Clearwater Market Areas
Type of Number Estimated
Course Name City Facility of Holes Rounds
Primary Market
Airco GC Clearwater MU 18 52,000
Chi Chi Rodriguez GC Clearwater MU 18 67,000
Countryside Exec. GC Clearwater OF 18/Exec 60,000
Glen Oaks GC Clearwater MU 18/Par 3 3Q.QQQ
TOTAL (Primary Market) 209,000
Secondary Market
Bardmoor GC Largo OF 18 45,000
Bay Pointe GC Seminole OF 18/exec 69,000
Belleview Biltmore Resort Belleair o FIRS 18 44,000
Countryway GC Tampa OF 18/Exec 67,000
Dunedin CC Dunedin MU 18 70,000
East Bay CC Largo OF 18 Reg. 60,000
Forest Hills Holiday DF 9 25,000
Lansbrook GC Palm Harbor OF 18 45,000
Largo Municipal Largo DF 18/Exec 69,000
Lost Oaks of Innisbrook Palm Harbor DF 18 55,000
Mainlands GC Pinellas Park OF 18/Exec 85,000
Mangrove Bay GC St. Pete MU 18 90,000
Pinecrest GC Largo 18/Exec 42,000
St. Andrews Links Dunedin DF 18/Par 3 30,000
Tarpon Springs GC Tarpon Springs MU 18 70,000
Tides CC Seminole OF 18 90,000
Westchase GC Tampa DF 18 QQ.QQQ
Total (Secondary Market) 1,066,000
Total Primary and Secondary Markets 1,275,000
According to our data, primary market courses supplied 209,000 rounds of golf in
1998 while secondary market courses supplied 1,066,000 for a total of 1,275,000
rounds.
City of Clearwa"'r Golf COllrse Analysis
25
,.!!IIF
tlVNSULTING
Competitive Facilities Map
Primary Market
A. Airco
B. Chi Chi Rodriguez
C. Countryside Exec.
D. Glen Oaks
Secondary Market
E. Bardmoor
F. Bay Polnte
G. Belleview Biltmore
H. Countryway
I. Dunedin
J. East Bay
K. Forest Hills
L. Lansbrook
M. Largo Municipal
N. Lost Oak of Innisbrook
O. Mainlands
P. Mangrove Bay
Q. Pinecrest
R. 51. Andrews Links
S. Tarpon Springs
T. Tides
U. Westchase
Market Demond
As mentioned previously, the National Golf Foundation, in association with
Market Facts, Inc. conducts annual nationwide surveys to determine playing
characteristics of golfers. Because of this research, the NGF can estimate the
percentage of golfers in a general population by demographic characteristics
such as age, education, and household income levels. NGF Consulting uses this
information to determine estimates of the total potential golfer population and
the number of potential rounds demanded in a given area.
In this research effort, NGF Consulting uses 1998 golf participation data for the
Tampa Bay MSA and the state of Florida and the United States. Data from 1998
was used because 1999 demographic (population and household income) data is
not yet available from CACI Marketing Systems and rounds data from courses for
1999 would be incomplete. By applying the participation data to demographic
data provided by CACI Marketing Systems, NGF Consulting developed two de-
mand models, the NGF Age Model and the NGF Income Model, to predict golf
demand for the defined Clearwater market areas. These models provide good
estimates for the number of golfers and potential rounds of public golf in this
immediate market area.
City of Clearwater Golf Course Analysis
26
~SULnNG
Primary Market Area
Golf Participation in the Primary Market Based on Age Distribution
NGF Consulting, working closely with the NGF's Research department, has
developed two golf demand models for the geographic market area. These
demand models are based on ten years of survey responses from the Tampa Bay
MSA. The Age Model predicts golf participation based on the age characteristics
of the population within the defined market.
NGF research indicates a strong correlation between age and golf participation.
In general, younger and less economically active populations have less time and
disposable income for golf participation. Comparatively, older populations have
more time and disposable income for golf participation frequency. Thus, the
older the demographic profile, the more likely the population will play golf with
frequency. The following table summarizes the age model analysis for the
Clearwater Primary Market Area for 1998 and 2003. The predictive models are in
the Appendix of this report.
Sunlmary of Age Model Analysis - Primary Market Area
1998
2003
Potential Number
of Golfers
9,532
9,559
Potential Number of Public
Golf Rounds Demanded
308,752
317,128
Using the age-based model, NGF Consulting estimates there were approximately
9,500 potential golfers living within the Clearwater Primary Market area in 1998.
This number should not dramatically increase by the year 2003. Our estimates
indicate that these golfers will demand approximately 309,000 and 317,000
rounds of golf in 1998 and 2003, respectively. A closer look at these estimates
shows that a significant portion of the estimated public golf demand in this
market coines from the older age segments. Based on NGF Consulting's age-
based model, 81 percent of the potential golf rounds demanded in 1998 are from
residents over the age of 45, despite the fact that this age segment accounts for
only 55% of the population.
Golf Participation in the Primary Market Based on Income Distribution
NGF Consulting also used the Income Model to predict the number of public
golfers and potential public rounds demanded. This model uses household
income characteristics of the demographic profile of the golf market as a predic-
tor. In general, the propensity to play golf increases among Americans with their
level of income. Golf participation in the United States is below five percent
City of CleaMalll, Bo/f Course Analysis
27
~SULTlNG
among those households with incomes under $25,000 annually and can exceed
25 percent for those with annual household incomes above $100,000. The fol-
lowing table summarizes the Income Model analysis for the Clearwater Primary
Market area for 1998 and 2003.
SUlllmary of Income Model Analysis - Primary Market Area
1998
2003
Potential Number
of Golfers
10,368
11 ,400
Potential Number of Public
Golf Rounds Demanded
362,611
414,748
Using the Income Model, NGF Consulting estimates that there were 10,368
golfers living within the Clearwater Primary Market area in 1998, with a slight
increase projected to 11,400 golfers by the year 2003. Estimates indicate that
these golfers could demand up to 362,611 and 414,748 rounds in 1998 and 2003,
respectively.
Primary Market Demand Summary: Comparison of Both Models
The figures presented in the Age and Income Models represent potential de-
mand based on the population (age 5 and over) within the Clearwater Primary
Market Area. The models do not include any factoring for rounds played by
visitors or by those persons living outside of the defined market area. Further-
more, these estimates represent "market possibilities" and not "market realities."
The estimates provided for participation in 2003 were prepared under the as-
sumption that golf participation data from the Tampa Bay MSA (participation
rate and average rounds played per year) remains constant at 1998 levels. Al-
though these figures may not become true, they do provide "reasonable esti-
mates" of golf participation in 2003. The 2003 models project golf participation
based only on changes in the size and nature of the population. The following
table summarizes the results of the predictive models:
Clearwater Primary Market Area Demand Summary
1998 2003
Potential Potential Potential Potential
Number Public Golf Number Public Golf
of Rounds of Rounds
Golfers Demanded Golfers Demanded
Age Model 9,532 308,752 9,559 317,128
Income Model 10,368 362,611 11 ,400 414,748
Average of Two Models 9,950 335,681 10,480 365,938
City of Clearwater Golf Course Analysis
28
cl&SULTlNG
Of the two models, the age-based model provides a more simplified approach
and, given the large percentage of retirees in the area, may be a more appropri-
ate predictor. However, the Income Model successfully reflects the impact of
income levels on the propensity to play golf. The results of the two models can
serve as lower and upper limits of the range of NGF Consulting's potential de-
mand estimate. The average of the two models serves as a good estimate for the
public golf demand in this market.
Comparison of Primary Market Demand and Supply
This following table compares the supply of, and demand for, public access golf
in the Clearwater primary market. The "Total Rounds Demanded" figure is an
average of the Age and Income Model estimates developed above.
Clearwater Primary Market Area
Comparison of Supply and Demand
1998 2003
Total Rounds Demanded
(using average of Age and Income Models) 335,681 365,938
Total Rounds Supplied by Existing Courses 209,000 209,000
Estimated Unmet Demand 126,681 156,938
NGF Consulting's analysis of the Clearwater Primary Golf Market revealed that
the area has an under-supply of public access golf opportunities. Applying the
population projections for the year 2003 to the predictive models, potential
demand from residents of this market also exceeds the supply by market area
courses. This shortage of public access golf rounds is more pronounced when
demand from the tourist and secondary markets are considered. .
Secondary Market Area
Golf Participation in the Secondary Market Based on Age Distribution
As discussed above, the Secondary Market for the Clearwater Country Club and
the Clearwater Golf Park comprises a fifteen-mile radius including the Primary
Market, which is the City of Clearwater. NGF Consulting also uses the Age and
Income models to measure secondary market demand. The following table
summarizes the Age Model analysis for the Clearwater Secondary Market area for
1998 and 2003. The predictive models are found in the Appendix.
City of CI.arwater Golf Cours. A"a/ysl.
29
,.!1tIF
~NSULTING
Age Model Analysis - Secondary Market Area
1998
2003
Potential Number
of Golfers
81,281
83,263
Potential Number of Public
Golf Rounds Demanded
2,613,080
2,744,353
According to the Age Model, in 1998 there were over 81,000 golfers in the
Clearwater Secondary Market demanding over 2.6 million rounds of golf. These
. figures should grow to 83,000 golfers demanding 2.74 million rounds of golf in
2003. Over 82% of the total demand in 2003 should emanate from the 45-and-
over segment of the population.
Golf Participation in the Secondary Market Based on Income Distribution
The following table summarizes the Income Model analysis for the Clearwater
Secondary Market Area for 1998 and 2003.
Income Model Analysis - Secondary Market Area
1998
2003
Potential Number
of Golfers
88,280
98,794
Potential Number of Public
Golf Rounds Demanded
2,993,578
3,488,345
Using the Income Model, NGF Consulting estimates that there were 88,000
golfers living within the Clearwater Secondary Market area in 1998, with an
increase projected to almost 98,800 golfers by the year 2003. According to esti-
mates, these golfers could demand up to 2.99 and 3.48 million rounds in 1998
and 2003, respectively.
Secondary Market Demand Summary: Comparison of Both Models
As discussed above, the figures presented in the Age and Income Models repre-
sent potential demand based on the population (age 5 and over) within the
Clearwater Secondary Market area. The models do not include any factoring for
rounds played by visitors or by those persons living outside of the defined market
areas. These estimates represent "market possibilities" and not "market realities."
The estimates provided for participation in 2003 were prepared under the as-
sumption that golf participation data from the Tampa Bay MSA (participation
rate and average rounds played per year) remains constant at 1998 levels. Al-
though these figures may not become true, they do provide "reasonable esti-
mates" of golf participation in 2003. The 2003 models project golf participation
City of Clearwal11, Golf Course Analysis
30
~SULTlNG
based only on changes in the size and nature of the population. The following
table summarizes the results of the predictive models.
Clearwater Secondary Market Area Demand Summary
1998 2003
Potential Potential Potential Potential
Number Public Golf Number Public Golf
of Rounds of Rounds
Golfers Demanded Golfers Demanded
Age Model 81,281 2,613,080 83,263 2,744,353
Income Model 88,280 2,993,578 98,794 3,488,345
Average of Two Models 84,780 2,803,329 91,028 3,116,349
As in the primary market, the age-based model provides a more simplified ap-
proach for the estimate of total potential rounds demanded. However, the
Income Model successfully reflects the impact of income levels on the propensity
to play golf. The results of the two models can serve as lower and upper limits of
the range of NGF Consulting's potential demand estimate. The average of the
two models serves as a good indicator for the potential public golf demand in this
market.
Comparison of Secondary Market Demand and Supply
This following table compares the supply of, and demand for, public access golf
in the Clearwater Secondary Market. The "Total Rounds Demanded" figure is an
average of the Age and Income Model estimates developed above.
Clearwater Secondary Market Area
Comparison of Supply and Demand
1998 2003
Total Rounds Demanded
(average of Age and Income Models)
Total Rounds Supplied by Existing Courses
Estimated Unmet Demand
2,803,329
1,066,000
1,737,329
3,116,349
1,066,000
2,050,349
NGF Consulting's analysis of the Clearwater Secondary Golf Market revealed that
the area has an acute under- supply of public access golf opportunities. This
shortage is more pronounced when demand from the tourist and seasonal visitor
market is considered. It is likely that the under-supply of golf opportunities in
this market forces golfers to seek playing opportunities outside the market area.
City of CI..,w."', Solf Course A../pls
S1
~!!.tIF
w"uNSULTING
Seasonal Resident Demand
In the following table, NGF Consulting estimates the potential for public golf
demand from the seasonal resident market segment. For this analysis, NGF
Consulting used Pinellas County seasonal resident population estimates for 1998
and 2003 of 104,900 and 106,500, respectively, based on the seasonal resident
estimate developed in the previous section of this report.
Given the lack of any definitive information on the number of Pinellas County
. seasonal residents, their states of origin, their lengths of stay, or their age and
income characteristics, NGF Consulting makes the following assumptions with
regard to seasonal residents:
D A high percentage of seasonal residents are over the age of 55.
D The majority of seasonal residents are retired.
D More than 80 percent of all seasonal residents have no children under the age
of 18 living at home.
D The majority of seasonal residents stay in Florida between four and six months
each year, with only a small percentage remaining more than six months.
D Because they can afford dual residency, and in some cases dual home owner-
ship, most seasonal residents are financially comfortable.
D Because a large percentage of seasonal residents are retirees, they typically
have more time available for recreational activities (i.e., golf).
Discussions with Pinellas area golf professionals indicate that seasonal golfers in
this market are active participants in golf during the winter season. NGF Consult:-
ing estimates that visitors to Pinellas County come from all areas of the United
States. Golf Participation in the United States - 1998, published by the National Golf
Foundation, reports that the United States golf participation rate is 12 percent.
Our models estimate that seasonal residents stay in the area approximately 18
weeks and average 2 rounds of golf per week. Because there are only a few pri-
vate/member clubs in the area, NGF Consulting estimates that 75 percent of all
golf played by seasonal visitors occurs on public courses.
City of ClearwatB, Golf Course Analysis
32
~SULTlNG
Seasonal Demand Model
Estimated Impact of Seasonal Resident Demand on
Public Golf Demand - Pinellas County Market Area
Pinellas County Pine lias County
Market Area Market Area
1998 2003
Estimated Seasonal Population 1 104,900 106,500
Golf Participation Rate 2 x..12% !..12.%
Potential Seasonal Golfers 12,600 12,800
Estimated Rounds per Golfer3 ~ ~
Estimated Total Seasonal Rounds 453,600 460,800
Percentage of Public Golf Play x 75.0% x 75.0%
Potential Public Rounds Demanded,
Seasonal Residents 342,200 345,600
, Pinel/as County seasonal population estimates based on 1998 and 2003 Tampa Bay area seasonal populations of
270,000 and 284,000, respectively.
2 Golf participation rate for the United States; National Golf Foundation (1998)
· Assumes an average stay of 18 weeks with 2.0 rounds of golf played per week. Figures rounded to nearest 100.
TouristNisitor Golf Participation
Tourism Overview
In the overview section of this report, NGF Consulting presented a brief review of
tourist data for the overall Tampa Bay area. The following points summarize the
findings in NGF Consulting's tourism review and the potential impact on new
golf course development in central Pinellas County.
DOver 4.2 million tourists visited Pinellas County in 1997. Area tourism experi-
enced substantial growth from 1984 to 1994 in terms of number of visitors
and total visitor expenditures. Overall, continued growth in tourism to the
area has a strong impact on golf course utilization. NGF Consulting estimates
two percent tourism growth for the area.
o The average tourist stay is approximately two days per visit.
o NGF Consulting believes that total visitation (particularly convention/ confer-
ence visitation and golf packages) to the area would likely increase if more
public golf holes were available.
Participation Estimation
To estimate the potential demand for public golf service from these visitors, NGF
Consulting prepared a demand estimation model for tourists/visitors to the area.
National Golf Foundation data regarding golf vacationers and their golf travel
habits provides the basis for this predictive model.
City Df Clea,walll, 60/f CDurse ABalpl.
33
~SULTlNG
Tourist Participation Model
As discussed above, over 4.2 million tourists visited Pinellas County during 1997.
Many of these travelers are children (under 12) who will not likely participate in
golf. Therefore, NGF Consulting reduced the number of visitors by 25 percent to
account for children.
Estimated Number of Tourist - Pinellas County (1998)
Estimated Number of Pinellas County Tourists
Estimated % of Children Under 12
Revised Estimated Number of Pinellas County Tourists
4,200,000
25%
3,150,000
Golf Participation in the United States - 1998, published by the National Golf Founda-
tion reports that the United States golf participation rate is 12 percent. The golf
participation rate for tourists to Pinellas County, however, is much lower. The St.
Petersburg-Clearwater Convention and Visitors Bureau does not keep track of the
percentage of tourist~ who play golf, however, they indicated that golf is not one
of the most popular activities among visitors. Based upon discussions with these
officials, and based upon data gained from other states, NGF Consulting esti-
mates the golf participation rate among Pinellas County tourists at three percent.
According to the NGF's Golf Consumer Profile publication, traveling golfers average
.557 rounds of golf for each day per trip. Based on this information, NGF Con-
sulting makes the following estimate:
Pinellas County Tourist Golf Demand Estimation
Revised Estimated Number of Adult Area Tourists
Participation Rate'
Estimated Number of Tourist Golfers
Estimated Number of Rounds PerTrip
(.557 rounds per day x 2-day Average Trip)2
Estimated Potential Number of Tourist Golf Rounds Demanded
3,150,000
3%
94,500
1.114
105,273
, St. Petersburg-Clearwater Convention and Visitors Bureau
2 Goff Consumer Profile - 1994, St. Petersburg-Clearwater Convention and Visitors Bureau
NGF Consulting intends this analysis to be a fair estimate of the potential de-
mand for golf rounds from tourist who visit Pinellas County, Florida. This esti-
mate does not include potential demand from tourists who visit other areas in the
greater Tampa area. This level of tourist golf demand is consistent with reports
from Pinellas County public golf courses who indicate extensive play by tourists.
City of Clearwatllr Golf CoulSe Analysis
34
~SULTING
Golf Market Demand Conclusions
This report has discussed three different sources of demand for the two
Clearwater golf courses: the Primary Market (City of Clearwater), the Secondary
Market (15-mile radius), and the combined Pinellas County seasonal residents
and tourists market. The following table summarizes the aggregate demand and
market supply.
Total Market Demand SUlllmary
Market
Primary Resident Market
Secondary Resident Market (not including Primary Market)
Seasonal Resident & Tourist Market
Combined Total Market Demand
Total Markets Supply
Total Unmet Demand
Rounds
1998
335,700
2,467,600
447,500
3,250,800
1.275.000
1,975,800
Figures rounded to nearest 100.
Rounds
2003
365,900
2,750,400
461,400
3,577,700
1.275.000
2,302,700
The figures presented in the table above represent NGF Consulting is demand
estimates for public golf in the Pinellas County market area from all markets
(primary, secondary, seasonal and tourist). The numbers in the table indicate
that demand for public golf in 1998 exceeded the supply of public golf in Pinellas
County by almost 2 million rounds. This figure will grow to 2.3 million rounds by
the year 2003. This leads to the conclusion that there is not enough supply of
public access golf in Pinellas County and the immediate area surrounding the two
Clearwater golf courses. This demand is either going unmet or golfers are driv-
ing out of the market areas to find golf opportunities.
New Golf Courses
There are only two courses in planning in Pinellas County. The Toy town Landfill
Course is a Pinellas County project, however, it is only in a very preliminary
planning stage. The other project is a proposed new daily fee golf facility in the
early planning stages for a site in Holiday. Darabi & Associates, Inc. owns a site
located approximately five minutes from the intersection of U.S. Route 19 and
Alternate U.S. Route 19 upon which they may build a golf course in conjunction
with a proposed residential and commercial development.
There are as many as seven new courses currently in planning or under develop-
ment in Pasco and Hillsborough Counties; however, they lie outside the
Clearwater Primary and Secondary golf markets. All future golf development
must occur to the north or east because there is no available land for golf course
development in Pinellas County.
City of Clsarwa", Golt COIIISS Alla/p/.
35
CfflSULTING
Golf Course Inspections
Clearwater Country Club
NGF Consulting inspected the Clearwater Country Club with John Bailey, Presi-
dent of the club, and with Stephen Sarnoff, Associate Planner, City of Clearwater
Department of Parks and Recreation. The consultants also met with Keith
Hering, golf course superintendent, to discuss the maintenance aspects of the
operation.
History and Background of the Clearwater Country Club
The Clearwater Country Club is an IS-hole Herbert Strong designed golf course
built by the City of Clearwater in 1921 and presumably operated as a municipal
facility until 1937. Pursuant to a lease agreement, Clearwater Country Club Inc.
took over the subsequent operation and maintenance of the course in 1937 and
has operated the facility ever since. This section provides a brief chronological
history of the legal relationship between the City of Clearwater and Clearwater
Country Club Inc. as it pertains to the operation of the facility.
The Clearwater Country Club is one of the oldest golf courses in Florida. Over
the past 80 years, the course has undergone several redesigns by such noted
architects as George Low, Perry Maxwell and Joe Lee. The present clubhouse
dates back to 1951, according to Mr. Bailey. The course measures 6,231 yards
from the blue tees. This distance is considerably shorter when compared to
modern day courses, which often measure in excess of 7,000 yards from the
furthest tees. Railroad tracks and a creek traverse portions of the course. Resi-
dential streets border the course on all sides.
The first lease between the City and Clearwater Country Club Inc. dates back to
June 1, 1937 (1937 Lease) and lays the foundation for a relationship that has
existed for more than 60 years. While NGF Consulting could not obtain a copy of
the 1937 lease (or the specifics of the pertinent lease provisions), that lease
covered the Clearwater Country Club property and undoubtedly served as the
basis for subsequent agreements between the two parties. The next agreement
between the City and Clearwater Country Club Inc., which replaced the 1937
City of Clearwate, Golf Course Analysis
36
~SULTING
Lease, was signed on June 7, 1950 (1950 Lease) and had an original duration of
31 years, expiring May 31, 1981. Under the terms of the 1950 Lease, Clearwater
Country Club Inc. agreed to operate and maintain the property in "good condi-
tion" and to make the course "available to the general public at . . . reasonable
fees." In exchange for the right to operate the course and extract all revenues for
the 31 years, Clearwater Country Club Inc. agreed to pay the City the total sum of
$10,837.14 to cover the entire duration of the lease, payable in six annual install-
ments of $1,806.19.
In addition, the City in 1950 conveyed to Clearwater Country Club Inc. the
property upon which it subsequently built the existing clubhouse facility (1950
Conveyance). In consideration for the absolute and outright conveyance of land
by the City, Clearwater Country Club Inc. paid the total sum of $10 and "other
good and valuable consideration." Because the property covered by the 1950
Conveyance was land-locked, the City also granted Clearwater Country Club Ine.
a right-of-way easement for access to and from the property. Clearwater Country
Club Inc. still owns the property upon which the clubhouse, parking lot, mainte-
nance buildings and parts of the ninth fairway and green lie.
The parties amended the 1950 Lease several times over the years. First, the City
and Clearwater Country Club Inc. signed an agreement in 1954 that gave the
Club the ability to prohibit the public from playing golf at the course (1954
Amendment). This provision effectively made the City-owned Clearwater Coun-
try Club a private golf course. In addition, the City deleted a provision that
prohibited it from levying taxes on Clearwater Country Club Ine. In consider-
ation, Clearwater Country Club Inc. covenanted to payoff and discharge all taxes
levied upon the property. (An agreement covering well usage and discontinuance
was signed in 1958, although it did not specifically alter any of the terms of the
1950 Lease.) The next amendment occurred in 1969 and resulted in the exten-
sion of the expiration date of the 1950 Lease from 1981 to 1993 (1969 Amend-
ment) for no additional lease payments. In return for the extension, Clearwater
Country Club Ine. agreed to spend approximately $70,000 to install an irrigation
system and to improve the greens and fairways. The 1969 Amendment also
reopened the course to the public. A minor amendment in 1985 altered the
boundaries of the course.
On April 10, 1987, Clearwater Country Club Inc. and the City signed a new
agreement (1987 Lease) that replaced the 1950 Lease. The 1987 Lease expires
May 1, 2002 and provides for total lease payments of $1 (1987 Lease). The 1987
Lease significantly expands upon Clearwater Country Club Inc.'s ability to engage
in golf-related activities and specifically authorizes the rental of golf carts, the sale
of alcohol, the use of a driving range, the sale of golf supplies, and "all other
normally attendant golf activities." In return, Clearwater Country Club Inc.
City "t Cle.,w."', S"lt C"u,.e A..lysls
37
If>!!tIF
~NSULT'NG
agreed to bear all maintenance-related costs for the operation of the course. It
also agreed to connect its irrigation system to the city main and to use wastewater
effluent for the purpose of irrigation. Since 1950, Clearwater Country Club Inc
has paid the City a total of$10,838.14 in direct lease payments for the use of the
facility and only $1 since 1957.
Clearwater Country Club Operation
John Bailey described the Club's operation to the consultants. He indicated that
the Club is self-operated under the direction of the officers and various commit-
tees. The Club employs a food and beverage manager and a golf professional,
who is in the process of becoming certified as a Class A professional by the Profes-
sional Golfers Association of America. The club also employs a golf course super-
intendent, who is responsible for maintaining the course and grounds. Each of
the respective Club departments has full-time and part-time staff to assist with the
operation of the facility.
Club memberships are currently at 503 golfing members (383 individual and 120
husband and wife), 160 social members, and 54 junior members. Golf member-
ships are capped at 525; however, because of attrition and turnover this limit is
seldom reached. In the past, when the number of memberships has gone below
470, initiation fees have been reduced in order to attract new members. In order
to maintain a full membership, the Club does not have a residency requirement.
Mr. Bailey estimated that about 65 percent of the members live in Clearwater and
the remaining 35 percent live outside the City. He estimated that 25 to 30 per-
cent of the members are "snow birds."
Membership Fees
Membership fees are very modest when compared with other private or semi-
private clubs in the area. The following table compares Clearwater Country
Club's membership fees with other area clubs.
City of Clearwate, Golf Course Analysis
38
c:,;SULTING
Membership Fees - Clearwater Area Clubs
Year Number of Annual
Private Clubs Location Type Built Members Initiation Dues
Old Memorial CC Tampa PR-18 1997 100 $75,000 $6,600
Feather Sound CC Clearwater PR-18 1978 300 $15,000 $4,440
Bayou Club Largo PR-18 1992 396 $5,000 $3,600
Cypress Run GC(1) Tarpon Springs PR-18 1981 240 $6,000 $3,540
East Lake Woodlands Oldsmar PR-36 1979 700 $6,000 $3,360
Belleair Country Club Belleair PR-36 1925 600 $20,000 $3,300
Crescent Oaks GC(4) Tarpon Springs PR-18 1989 NA $3,000 $3,060
Countryside CC Clearwater PR-27 1973 630 $3,000 $3,000
Bardmoor GC Largo SP-18 1974 50 None $2,736
Wentworth GC Tarpon Springs PR-18 1988 138 $13,500 $2,700
Belleview Biltmore Belleair SP-18 1926 150 $1,000 $2,300
Cove Cay CC(3) Clearwater PR-18 1972 315 $5,800 $2,160
East Bay CC Largo SP-36 1962 60 None $1,625
Lansbrook GC(2) Palm Harbor SP-18 1975 300 None $1,550
Tides CC Seminole SP-18 1972 800 $1,600 $1,300
Tarpon Springs GC Tarpon Springs MU-18 1906 NA None $1,100
Clearwate(CC Clearwater SP-18 1921 503 $1,500 $84()
(1) Membership capped at 290 members.
(2) Waiting list in effect for memberships.
(3) Club allows unrestricted public play from May through October 31. Information listed above is for equity
membership. Also offers an "Associate Membership" which requires $1,000 initiation and $215 monthly dues.
(4) Offers several membership options. This is the least expensive.
The table reveals that the Clearwater Country Club has the lowest annual mem-
bership dues of any of the 17 private and semi-private clubs (with regulation golf
courses) in the Clearwater area. The initiation fee is also one of the lowest in the
area.
Mr. Bailey estimated that approximately 68,000 rounds are played annually at the
Club. Members play some 47,000 rounds and non-members play some 21,000
rounds. The figures represent both 9-hole and IS-hole rounds. The following
table shows the fee schedule for daily fee players that went into effect January 15,
1999,
City of Clearwater Golf Collrs, Analpls
39
c/,;SULTlNG
Clearwater Country Club 1999 Daily Fees
Winter
Summer
Weekdays
Before 1 :00 PM
After 1 :00 PM
After 3:00 PM
Walking After 3:00 PM
$55
$45
$20
$16
$27
$25
$22.50
$16
Weekends and Holidays
Before 1 :00 PM $62
After 1 :00 PM $50
After 3:00 PM $25
Walking After 3:00 PM $16
Pinel/as County Residents $10 off. Fees include taxes.
$29
$26
$22.50
$16
Financial Performance
John Bailey provided the consultants with the following information on the
financial performance of the Club from 1996 to 1999. This data reflects the
changes made to the golf shop operation and the contractual arrangements with the
new golf professional, whereby the Club took over the operation of the golf carts.
Financial Performance
1996 1997 1998 1999 Average
REVENUE
Dues & Initiation $524,000 $532,000 $585,000. $593,000 $558,500
Green Fees & Carts 526,000 539,000 520,000 531,000 529,000
Private Carts 58,000 64,000 64,000 64,000 62,500
Club Carts 183,000 188,000 191,000 194,000 189,000
Food & Beverage 627,000 634,000 631,000 640,000 633,000
Range 23,000 24,000 23,000 30,000 25,000
Assessment 18,000 0 0 0 4,500
Miscellaneous 73,000 39,000 52,000 45,000 52,250
TOTAL REVENUE $2,032,000.00 $2,020,000.00 $2,066,000.00$2,097,000.00 $2,053,750
EXPENSES
Greens
Salaries $244,000 $242,000 $247,000 $261,000 $248,500
Seed & Chemicals 132,000 184,000 198,000 208,000 180,500
Supplies 38,000 36,000 41 ,000 31,000 36,500
Utilities 34,000 35,000 37,000 43,000 37,250
Repair & Maint. 88,000 79,000 81,000 80,000 82,000
Course Repair 43,000 45,000 111 ,000 54,000 63,250
Miscellaneous 1,000 3,000 4,000 3,000 2,750
House 323,000 338,000 335,000 309,000 326,250
Food & Beverage 588,000 591,000 605,000 640,000 606,000
Pro Shop 143,000 147,000 181,000 214,000 171,250
General Overhead 293,000 291,000 230,000 252,000 266,500
Miscellaneous 5,000 6,000 7,000 6,000 6,000
TOTAL EXPENSES $1,932,000 $1,997,000 $2,On,000 $2,101,000 $2,026,750
NET INCOME $98,000 $23,000 ($11,000) ($4,000) $26,500
. Single member dues Increased from $765 to $840 and Family dues increased from $1274 to $1400
City ot Cle.Me"', Golf COUIIII Anelysls
40
~SULTING
This brief overview of the financial performance of the Clearwater Country Club
reveals that the Club has operated on a break-even basis for the past four years.
Dues were increase nine percent in 1998. However, the last time a member assess-
ment was levied was in 1996, the year the Club renovated the greens.
It must be noted that green fees and cart fees from play by non-members (esti-
mated to be 21,000 rounds per year) on average, account for 25 percent of the
Club's revenues. This revenue stream offsets a great deal of the Club's fixed
expenses, yet has very little negative financial impact on the operation. Much of
the expenses that would ordinarily be assumed by the members are being subsi-
dized by non-member playas a result of the City's requirement in 1969 that
opened the Club to public play.
NGF Consulting believes subsidizing member dues with revenues from non-
members is an inequity that the City should address if it decides to renew the
lease agreement with Clearwater Country Club Inc. We recommend that at least
50 percent of the revenues from non-member play be used to correct the golf
course's deficiencies (not including the clubhouse), pay real estate taxes on the
golf course portion of the property, and make rent payments to the City.
Golf Operation
The Club has a full time golf professional on staff who is responsible for the golf
operation. In addition to the golf professional there are a full time assistant
professional and 12 part-time employees. The tasks performed by the golf staff
include managing tee time reservations, operating the driving range, handling
golf carts and bag storage, providing golf lessons and selling merchandise. It
should be noted that a local merchant, who operates Steve's World of Golf in
Clearwater, supplies the merchandise sold in the golf shop. The Club makes no
investment in the items sold and receives a small percentage of the revenues.
Members receive a discount if they purchase items at the downtown store.
Food and Beverage Operation
In addition to providing golf services to its members, the Clearwater Country
Club has an extensive food and beverage operation. Almost one third of revenue
and expense is from this part of the Club's operation. The main dining room
seats approximately 220 persons and is open a few evenings a week for general
dining and special events. A separate lounge is open for breakfast two days a
week. Lunch and a full beverage service are available daily. The dining room is
available for special affairs such as weddings and banquets. According to the
financial information supplied by the Club, the food and beverage operation has
shown a small profit in the past few years.
City of Clllalwall1l So/f COUrsll Analpl.
41
C:=SULTING
The food and beverage operation at most private and semi-private country clubs
is closely tied to the social activities sponsored by the club. Holiday parties,
dances, and post-golf events frequently make up the majority of the socialization
that occurs between the members. For many members, these activities (plus
activities such as card playing) take precedence over playing golf. Access to the
dining room and participation in non-golf activities are the reasons many clubs
offer social memberships. Clearwater Country Club has 160 Social members who
pay $250 dues per year.
Maintenance Operation
The golf course is being well maintained, considering the resources available to
this department. In addition to the superintendent, there are eight full-time and
4 part-time maintenance employees. Maintenance employees are difficult to hire
and retain. Several of the employees who work at the Club do not have driver's
licenses; thus, they are restricted to jobs that are in close proximity to where they
live. Frequently, persons who begin work as maintenance employees at the Club
leave for better-paying jobs at other courses after they achieve some expertise.
Most of the starting salaries for maintenance workers at Clearwater Country Club
are less than $10 per hour, with some as low as $6.25. Increases for employees
who stay long enough to earn them are minimal. Given the tasks maintenance
that have to be performed, it appears the size of the crew is not large enough to
accomplish all of the routine work and also make needed improvements to the
course. This was evidenced by the fact that the superintendent, at the time of the
field visit, despite having his leg in a cast as a result of an on-the-job accident, was
spraying greens and doing other tasks. It must be noted that the crew has the
additional responsibility of maintaining the banks of the Stevenson's Creek and
railroad tracks and mowing up to the edge of the pavement along the streets that
border the course. These are tasks that are not ordinarily associated with golf
course maintenance and thus impact on the ability the maintenance crew to
accomplish their routine work.
The maintenance equipment inventory appeared to be adequate to accomplish
the various tasks. Some of the equipment was several years old, however the were
also several newer pieces. Club officials indicated that there is an ongoing effort
to upgrade the equipment inventory.
Without the expertise of an agronomist, NGF Consulting did not attempt to
evaluate the Club's agronomic programs.
City of Clearwalll, Golf Course Analysis
42
C=SULTING
Maintenance of the golf couneineludes mowing
the banhs of the railmad right-ofwa,y.
Golf Carts
Members are permitted to use private carts at the Club. Currently there are 75
member-owned carts being stored. These cart,> are stored and recharged for a
monthly fee. The combined monthly storage fee and trail fee is $55. Persons who
ride with a person who has a privately-owned cart are charged a $9 fee that is paid
to the Club. Members who do not ovm carts can rent one of the 55 Gi~rts owned
by the Club. Members who prefer to walk can do so at any time.
Course Conditions and Evaluation
The overall appearance of the Cleanvater Country Club is good considering tlle
inherent site deficiencies and the limited resources available for maintenance
and capital improvements. Basic mowing and other maintenance tasks keep the
course playable and s attractive to the casual viewer. However, upon C:oser exami-
nation several course features should be improved. Following are the consultant's
observations and recommendations based on the condition of the C01-~lrSe at the
time of their visit. It must be noted that an agronomist did not participate in the
inspection of the facility.
City of Clearwater Golf Course Analysis
43
CNGF
ONSULTING
Greens
The consultants were advised the greens were upgraded in 1996 at a cost of some
$160,000. They appeared to be in good condition at the time of the field visit;
however, it must be noted they were not examined using probing tools to evaluate
the condition of the subsurface.
Tees
. The condition of the tees appeared to be fairly good. Some showed evidence of
wear, which is common, particularly on par-three holes. A more aggressive main-
tenance program would improve the overall condition of the tees.
Fairways
The condition of the fairways ~t the time of the consultants' visit revealed some
areas where the turf was thin (nd some areas that had;patches that were void of
any grass. In the absence of*n agronomic analysis,iJ can only be speculated that
these conditions are a result {?f excessive wear, inaqequate irrigation, poor drain-
age, or fertility conditions. lbe prevalent turfgrassis Bermuda 328, which is an
older strain of grass that lacYS the features of the n~wer grasses on the market.
;> .r,'"
While it may be possible toirehabilitate the fairw~ys through an aggressive mainte-
nance program, ideally, they should be sprayed~Th chemicals that will kill all the
current vegetation and th~n re-grassed using a g,wer variety of grass.
..'fj~~,
':~',?~
This procedure would foHow the correction or~er deficiencies such as drain-
age, irrigation and cart p~th construction. .,
Cart Paths
It was reported that there is an ongoing program of cart path improvements and
expansion. However, despite past efforts there are several areas that do not have
pavement or where repairs are .long over due. The following construction meth-
ods are recommended for future improvements to the cart path system.
1. Install all cart paths so the surfaces are flush with the surrounding areas.
2. Construct the paths so that the finished surfaces are eight feet wide.
3. Remove topsoil and tree roots from the intended path locations. Dig the
paths nine feet wide and eigpt inches deep. Place spoils from excavation at:
designated locations.
4. Build the base of each path with six inches of 3/4" crushed stone or
similar material.
City of Clearwater Golf Course Analysis
441
,.!!..OF
-.,oNSULTING
5. Cap the stone with two inches of surfacing material in the center eight
feet of the excavated area (leave 6" of road stone visible on ead side of
path) .
6. Install curbing in critical areas or cover the exposed 3/4" stone with two
inches of soil.
7. Curbing should be four inches above grade and back-filled with suitable
topsoil.
Cart paths should be cxtelldedfro1l/ tee to greell 011 all holes.
Bunker Renovation
The bunkers at Clearwater Country Club need to be reshaped, drained, and new
sand put into place. The use of mechanical rakes over the past several years has
resulted in the bunkers becoming round or oval shape. In order to improve the
appearance of the bunkers and their drainage, the following scope of work is
recommended:
1. Remove all of the sand from the bunkers and store it at some convenient
location on the golf course property.
2. Remove any sand build-up from the edges of the bunkers.
3. Shape the green side edges of the bunkers to desired contours. Bunkers
that have a high build-up of sand should be reshaped with soil so the
finished product ,,,ill contours that were originally designed.
4. Shape the bottom of the bunker and dig trenches for the drainage lines.
5. Install pea-gravel and 4" perforated ADS drainpipe.
6. Place new sand in the bunkers.
7. Sod all exposed soil. The green side area should have grass similar to that
in the roughs.
City of Clearwater Golf Course AnalysIs
45
~SULTING
Over the years the bunkers have lost their original shape.
Irrigation System
According to the golf course superintendent, the present irrigation system is
primarily a single row installation that has been in use for many years. The system
uses treated water supplied by the City and has been modified and upgraded to
some degree to address the most critical irrigation deficiencies; however this
effort at best has been minor surgery on a very sick patient. To bring the irriga-
tion needs of the Clearwater Country Club up to industry standards, the current
system should be abandoned and a completely new system installed. The cost of
a new system can range from $500,000 to $1 million.
Stevenson's Creek Improvements
The overall appearance of the Stevenson's Creek banks could be improved and
controlling vegetation growth could reduce the maintenance effort. According to
the current lease agreement, it is the City's responsibility to make repairs to the
creek banks. The cost of these repairs depends on several factors:
· What methods and materials will be used for the repairs? For example,
will the banks be reinforced with bulkheads or will they be reshaped with
earth and rip-raped with rock?
· How extensive will the repairs be? Will the entire length of the creek be
repaired or just the areas with the most damage or visibility?
· How aggressive will the program be? Will all the repairs be made as part
of one project or will they be spread over several years and done on an as-
needed basis?
· Will the repair project include increasing the capacity of the creek as a
flood control measure?
City of Clearwater Golf Course Analysis
46
c:,;SULTING
NGF Consulting recommends the current condition of the creek be studied by a
civil engineer. A detailed improvement plan should be developed, including cost
estimates for the various improvement options that can be used to make the
repaIrs.
Portions of the creel: ba/lk~ are in /Iced o(restoratioll.
City of Clearwater Golf Course Analysis
47
~SULTING
Maintenance Buildings
The majority of the club's maintenance equipment is stored in open, three-sided
shelters. There are two other buildings. One is a two-story structure that has the
mechanic's area on the ground floor and the superintendent's offices on the
second level. The second building is used to store materials, supplies, and equip-
ment. There is little accommodation made to protect the expensive maintenance
equipment from vandalism, theft, or exposure to the weather. Cold, rain, wind,
sunlight, heat, and temperature fluctuations can reduce the longevity of the
equipment. The following options are available for upgrading the maintenance
area:
· Enclose the three-sided shelters to protect the equipment from vandalism
and the effects of the weather.
· Replace the existing buildings in order to accommodate the expensive
equipment such as greens mowers and fairway units, a larger and more
efficient mechanics area along with office, storage and refueling areas.
The maintenance building should have a minimum of 1,500 square feet.
Maintenance buildings of this size are estimated to cost $250,000 to
$300,000.
Much of the golf course equiPment is not stored in a SeL11re environment.
City of Clealllatsl Golf Coulse Analysis
48
I'll,!GF
t.IONSULTING
Driving Range
The Country Club operates a small driving range for members, whichls also open
to the public. The depth of the fairway is rather short (approximately 225 yards)
and longer hitters can easily drive ball through the back of the range. The tee
area is made up of natural turf and concrete pads with artificial grass mats. There
are no target greens. The right side of the range is in close proximity t,) the creek
that traverses the course; consequently errant shots result in a number of lost
range balls. The location of the range is not convenient to off-the-stre,et users.
Patrons must carry their bags from the parking lot past the clubhouse:o the tee
line. This inconvenience combined, with the range's deficiencies, deter this
amenity from becoming a significant profit center.
Adding tUl~get greens to the driving range will
enhance its appearance Gnd sti/llulate more business.
Clubhouse Building
The consultants toured the clubhouse with John Bailey. It is obvious tllat this
building has numerous deficiencies and falls short when compared to newer
clubhouses found at other private clubs in the area. However, it appears to be
serviceable and well maintained, considering its age.
Mr. Bailey briefed the consultants on the Club's proposed plan to build a new
clubhouse to replace the 50-year-old structure. Preliminary drawings show a
structure with slightly larger space than the current building, for an esrimated
City of Clearwater Golf Course Analysis
49
CNGF
ONSULTING
cost of $2.5 million. Mr. Bailey indicated he has had discussions with the City
regarding this project and that the project has been put on hold until NGF
Consulting's report is completed and the City decides on the future management
of the facility.
If the City decides to renew the Club's lease, the construction of a new clubhouse
will do nothing to improve the condition of the golf course. Nor will a new
clubhouse do much to attract new members or daily fee players until the course's
deficiencies are addressed. The financial impact of building a new clubhouse is
likely to result in increased membership fees, a membership assessment or both.
This can scare away less active members who receive only marginal benefits from
their memberships. The financial strain of paying for a new clubhouse can result
in reductions in the Club's operating budget, which can have an adverse effect on
the current maintenance budget. Based on the consultants' observations and
discussions with club officials and staff, the maintenance budget (including
capital improvements) is under-funded.
NGF Consulting believes the construction of a new clubhouse by the Clearwater
Country Club membership (on land owned by the Club) will do nothing to
enhance the golf course portion of the facility. While the City cannot prevent the
membership from building a new clubhouse on their own property, it should not
facilitate this proposal by allowing the Club to direct its financial resources to this
project before improving the course, compensating the City for the use of the
facility, or both.
Estimated Renovation Costs
The total cost of making renovations to the Clearwater Country Club golf course
will depend on a number of variables. For example, creek renovation costs (re-
gardless of who is responsible for making them) are an unknown until an im-
provement plan is developed. Improving the fairways, cart paths, green side and
fairway bunkers, maintenance building, and irrigation system all require design
and engineering estimates to accurately project their costs. NGF Consulting
believes that the total cost of making all the needed golf course improvements,
exclusive of clubhouse improvements, can easily range between $3 to $4 million.
Inspection Conclusions and Recommendations
NGF Consulting's assessment of the condition of the Clearwater Country Club is
that this facility has failed to keep pace with golf course conditions typically found
at other private or semi-private country clubs in the Clearwater area. Only a few
course deficiencies have been addressed in the past few years, while others have
been permitted to go unattended for several years. This may be a result of the
membership trying to keep fees to modest levels or their reluctance to invest in a
City of Clearwater Golf Course Analysis
50
~SULTlNtJ
facility the Club does not own. Regardless of the reason, only a significant capital
investment can restore it to a competitive position with other area courses.
What is more disturbing is that only a relatively few of Clearwater's 100,000
residents have been benefactors to the various lease agreements between the City
and Clearwater Country Club Inc. It is presumed these agreements were enter
into based on the assumption that the Club would keep the City's asset to a
reasonably high level of quality. In return, the City waived all property taxes on
. the City owned portion of the facility and did not impose any form of rent pay-
ment for the use of the property.
The lease amendment of 1969 requiring the Club to make the course available to
public play "at reasonable fees" has served to increase its revenues and in effect
has subsidized membership fees. Revenues from green fees and carts exceeded
membership and initiation fees in 1996 and 1997 and were slightly lower in 1998.
As a result of a dues increase in 1998, dues and initiation revenues exceeded
green fees and cart revenue by only 11 percent. The ratio between these two
revenue categories is projected to be about the same in 1999.
If the City decides to renew Clearwater Country Club Inc.'s lease, NGF Consult-
ing recommends that the agreement specify what improvements the Club is
obligated to make to the golf course and a time line for these improvements.
Further, we recommend that the City require the Club to pay annual real estate
taxes on the City-owned portion of the property each and every year of the new
lease.
We believe the City has to look forward to how this facility will be operated in the
future. It is not out of the realm of possibility that a time will come when there is
no longer an interest to continue operating the Clearwater Country Club as a
membership-based facility. If this should occur, the condition of the golf course
portion of the facility should be such that it can easily be converted to a public
access operation by the City or be attractive to a private operator who would lease
it from the City. If the golf course were not brought up to competitive standards,
its appeal as a public course operation or a rental property would be severely
diminished. If this is permitted to occur, and because the property has little
sentimental attachment to the majority of the community, it is possible this
property may end up being converted to a use that is perceived to be of greater
benefit to the community than a golf course.
Although NGF Consulting believes this facility is worth preserving and should be
upgraded, we question whether the City should, in any way, become a party to
City Df Clee",..r Golf CDurse Ane/p/s
51
Co,",SULT'NG
financing the needed improvements on behalf of just a few residents who have
memberships. While it can be argued that the course is open to public play, it
must be remembered that, to date, the benefactors of that contractual agreement
have been the membership and not the City of Clearwater.
Clearwater Golf Park
The consultants, along with Stephen Sarnoff, met with Miriam Frank, leaseholder
for the Clearwater Golf Park and Mary Frank, General Manager. The consultants
. then toured the course with Marc Solomon, the golf course superintendent.
History and Background of the Clearwater Golf Park
The City of Clearwater built the Clearwater Golf Park in 1971 on property adja-
cent to the Clearwater Airpark. Designed by architect Ron Gad, the course,
which sits on approximately 73 acres of City-owned land, is an IS-hole executive
layout that the Frank family (through their Clearwater Golf Park Inc. corpora-
tion) has managed since the club's inception. When built, the course was a fully
lighted facility, which enabled nighttime play.
The City and Golf Park Inc. signed the original 30-year lease agreement on Febru-
ary 24, 1970 (1970 Lease). At the time, the 1970 Lease extended to the operation
of the Golf Park and the Airpark and provided for monthly payments of $1,388.89
(totaling $500,000). The 1970 Lease authorized Golf Park Inc. to: "operate a
lighted public golf course, including and in addition thereto all normally atten-
dant golf activities, including, but not limited to the operation of a pro shop for
sales at retail, and rental, operation and maintenance of golf carts, driving range,
sale of food and beverages, including alcoholic beverages." The 1970 Lease also
obligated Golf Park Inc. to operate and maintain the facilities" in such a manner
as to be a credit to the City of Clearwater" and "to a standard considered to be
generally acceptable in the operation of a public golf course and public Airpark."
In 1974, Clearwater Golf Park Inc. offered to sell its leasehold interest in the Golf
Park and Airpark to the City for $1.4 million. Documents obtained by NGF
Consulting indicate that the City deemed the offering price to be too expensive;
however, it is unclear whether it made a counter-offer. Regardless, the parties did
not reach an agreement and the 1970 Lease remained in effect.
In 1980, Golf Park Inc. transferred its ownership interest in 62.4 acres of Airpark
land to the City in return for $75,000 and lease payment reductions pertaining to
its remaining leasehold interest in the Golf Park (1980 Agreement). Accordingly,
this Agreement reduced Golf Park Inc.'s annual rental premium for the golf
course operation to $1,000 per year for the duration of the lease. A subsequent
City of Clearwa"'r Golf Course Analysis
52
~SULTlNG
1980 Amended Lease, dated October 3, 1980, incorporated all provisions of the
1980 Agreement. The 1980 Agreement eliminated the requirement that the
Frank family maintain control of Golf Park, Inc. and it also relieved Golf Park Inc.
from the obligation to provide a lighted golfing facility. Consequently, the lights
came down shortly thereafter (presumably at Golf Park Inc.'s expense.) The 1980
Amended Lease currently governs the legal relationship between the City and
Golf Park Inc. and expires February 28,2000.
. Clearwater Golf Park Operation
NGF Consulting did not obtain any information from the leaseholder on the
operation and performance of the Clearwater Golf Park course. Mrs. Frank told
the consultants that her attorney advised her not to provide any current informa-
tion or historical data regarding activity levels, financial performance, or opera-
tional costs.
1999 Daily Fees
The following fees were in effect at the time of the field visit.
Clearwater Golf Park - 1999 Fees
Winter Season
Summer Season
Green and Cart Fee
18 Holes
9 Holes
Walking Fee
18 Holes
9 Holes
$25.00
$17.00
$16.00
$13.50
$12.00
$10.00
$10.00
$ 8.50
Financial Performance
Without financial records and reports from the leaseholder, NGF Consulting has
no basis from which it can analyze the financial performance of this facility.
However, based on the demand for golf in the market area and what appears to
be minimal expenditures on the operation of the facility, and considering the fact
that the facility pays no real estate taxes and only $1,000 rent per year, it is likely
that the Clearwater Golf Park is a profitable, if not a very profitable, operation.
Golf Operation
The Golf Park does not have a full-time golf professional. According to the gen-
eral manager, a retired professional can be called on to give lessons.
City of Clearwa"'r Golf Course Analysis
53
,.!!.GF
~NSULTING
The golf shop at the time of the consultants' visit had almost no inventory. The
inventory consisted of a few hats, gloves, balls and other basic items. The resale
value of the merchandise on display is estimated to be $1,000 to $2,000. Six part-
time cashiers serve as starters, collect green fees, take tee time reservations, sell
range balls, and perform any other duties that may be required including work-
ing the snack bar and lounge.
The operator indicated that there are a few clubs and leagues that play the
course. The course offers tee time reservations and rewards its frequent summer
customers by giving them preferred tee times in the winter season.
The course is staffed with part-time rangers only in the winter season.
Food and Beverage Operation
The Golf Park operates both a snack bar and a full service beverage operation.
The snack bar has a limited food menu consisting of burgers, hot dogs, and cold
sandwiches. The beverage menu consists of soft drinks, juices, and hot drinks.
The snack bar area seats 32 persons. A separate lounge area seats 35 persons,
where liquor, beer, and wine are served. The unwillingness of the operator to
provide operational data prevents the consultants from determining the financial
success of this component of the golf course.
Golf Carts
The leaseholder indicated the course has 44 golf carts for rent. Fees are very
modest, and when combined with green fees, result in an attractive package for
the price-sensitive golfer. The number of carts at this executive course indicates a
high percentage of cart rental rounds. The carts are owned by the course and are
maintained by maintenance employees.
Maintenance Operation
The consultants toured the course and the maintenance buildings with Marc
Solomon, the superintendent. Mr. Solomon indicated six full-time and two part-
time summer maintenance employees staff the course. Their duties also include
equipment repair and servicing and maintenance of the golf cart fleet.
The consultant's inspection of the maintenance equipment inventory, provided
by the operator, indicates that much of the equipment is old and well used.
There appeared to be enough equipment to properly maintain the course,
assuming that all of the equipment is in working order.
City of Clearwater Golf Course Analysis
54
CNOF
ONSVLTING
Mr. Solomon indicated that his agronomic programs were a combination of
preventive and curative practices. He indicated that mole crickets were a problem
that needed constant attention. The consultants saw only a minimal amount of
fertilizer and chemicals. This would indicate that these items are purchased on
an as needed basis or that the operator has reduced spending for agronomic
supplies.
Course Conditions and Evaluation
The condition of the Clearwater Golf Park at the time of the consultants' visit was
below the maintenance standards of similar courses in the Clearwater 3Tea. Every
m<yor component (greens, tees, fairways, bunkers, irrigation system, ard mainte-
nance buildings) all appeared to be in a state of "deferred maintenanc~." Follow-
ing are the observations of the consultants.
Greens
The greens at the Golf Park are approximately 5,000 square fee in size. They are
round in shape and almost flat with very little contour. They appeared to be in
the transition stage. The winter rye grass was receding and the Bermuda grass was
becoming dominant. The superintendent advised the consultants that the greens
were originally constructed as "push up greens" and that they lacked seb-surface
drainage.
Tees
Most if not all of the tees showed signs of wear. Many of them had larg~ areas
with no turf. Weed infestation was commonplace and large portions of the tees
were not level. It was apparent, even to the untrained eye, that the tee~ were
mowed only when needed and that little if any other maintenance was being
performed.
City of Clearwater Golf Course Analysis
55
~SULTING
Fairways
The superintendent indicated that the fairways are not irrigated. As a result of
not having water available when needed, the fairways had very few areas with
acceptable turf cover. Several of the fairways are also subject to flooding after
large amounts of rainfall. It was reported that as many as five portable pumps are
frequently used to remove excess water from the fairways. The lack of cart paths
from tee to green subjects the fairways to excessive wear, particularly during
period of stress or when conditions require carts to stay on paths. As with the
tees, it appears that little if any maintenance other than mowing is being per-
formed on the fairways.
View of fairway showing loss of flui due to poor drainage.
City of Clearwater Golf Course Analysis
56
c::,;SULTING
Cart Paths
"What little paved cart paths exist are located from green to tee on some of the
holes. Those paths that do exist are in poor condition and need to be replaced.
NGF Consulting recommends using the same method to upgrade the)aths that
was recommended for the Clearwater Country Club cart paths.
Cart paths should be extendedfrom greens to tees with curbing along the tee areas.
Irrigation System
Only the tees and greens have irrigation. Of the 70 acres that comprise the
course, only 38 acres are under irrigation. The system is quite old and has been
subject to frequent breakdmvl1S according to the superintendent. Water is being
pumped from a well, despite two large and deep ponds on the site. The system
has a fertigation connection. which appears to be used sparingly, based on the
condition of the turf. It is apparent that a new irrigation system designed to
cover the entire course is needed to bring the course up to an acceptajle quality
level.
City of Clearwater Golf Course Analysis
57
,.!!.GF
w"oNSULTING
View of theirrigatioll pump station. Note open electrical panel.
Bunkers
Most of the 38 bunkers on the course are located greenside. The only fairway
bunkers are located on holes 13, 14, and 18. All of the bunkers need to be re-
stored to their original size, shape, and condition. The restoration process is the
same as has been recommended for the bunkers at Clearwater Country Club.
Maintenance Buildings
There are two maintenance buildings at the Clearwater Golf Park. They are
located on opposite ends of the parking lot. One is used for equipment storage
and the other is used as a mechanic's area, superintendent's office, and cart
storage area. The equipment storage building is in fair condition. However, the
other building is in poor condition.
Two deficiencies stood out as a result of the consultants' inspection. It was noted
that there is no equipment refueling station. Four 55-gallon drums containing
fuel were located in one corner of the equipment storage building. There were
several other smaller containers present, the type that are frequently used to
transport gasoline or diesel fuel.
The second deficiency was the equipment wash area and the location and storage
area for old motor oil and used batteries. The runoff from equipment washing is
allowed to filter into the ground, rather than being contained. Old motor oil is
stored in 55-go11om drums located outside the mechanic's area. Old batteries
from the golf carts were located in the same area.
City of Clearwater Golf Course Analysis
58
C;;;;SULTING
NGF Consulting believes these conditions to be unsafe and may be in violation of
EPA regulations. These conditions should be investigated by the appropriate
authorities and should be immediately corrected if they are found to be in viola-
tion of any local, state, or federal regulations.
....:..'"....
~ -,
Hazardous materials should be stored in ([ securc area.
City of Clearwater Golf Course Analysis
59
It>!!GF
~NSULTING
Fuel is stored in 55 gallon drums inside the equitmlent storage building.
Clubhouse Building
The building's appearance was good considering its age. With the exception of
over grown bushes and trees in the front, the exterior of building was acceptable.
The inside was neat and clean. The interior consists of a pro shop area, snack bar
area with seating for 32 persons, a cocktail lounge with seating for 35 persons,
offices, storage, and restrooms.
The staging area for the courses 44 carts is located immediately outside the rear
entrance to the clubhouse in close proximity to the putting green.
A cursory inspection of the clubhouse did not reveal any major deficiencies. It is
likely that this structure could be serviceable for several more years without
having to make major renovations.
City of Clearwater Golf Course Analysis 60
~SVLT'NG
. ;.. -
=-- --
--
.-.~. - ...
._-:,.~,.:.-
<'~~
--......-'-
:;?'~~~~~i'~' '~:~.'-
.....,:-
"-~."-_.
~..-
-0..... .,'
Frollt elltwltCe to Go((Parh clubhouse.
Driving Range
A small driving range at this facility consists of 10 artitIcial grass mats a: the tee
line. The condition of the range fairway was comparable to the rest of the
course, with a great deal of weed infestation and generally poor turf conditions.
The range does not have target greens or any of the amenities found at modern
practice facilities. Balls are sold from the pro shop, and their quality was poor. It
can be assumed that the range operation is not a significant profit center and
thus is being operated and maintained accordingly.
Estimated Renovation Costs
The cost of making renovations to the Clearwater Golf Park also depends on a
number of variables. Improving the greens, tees, bunkers, fairways, cart paths,
maintenance building, driving range and irrigation system requires design and
engineering estimates to accurately project renovation costs. NGF Corsulting
believes that the total cost of making all the needed golf course improvements
can easily range between $1 to $1.5 million.
Inspection Conclusions and Recommendations
There is conclusive evidence that the condition of the Clearwater Golf Park golf
course has been permitted to deteriorate over the past several years. All of the
major components that make up the golf course (greens, tees, fairway:;, bunkers,
irrigation system, driving range and maintenance buildings) are in need of
replacement or complete renovation. It can only be assumed the current lease-
City of Clearwater Golf Course Analysis
61
C NtJF
ONSULTING
holder was unwilling to make any major capital improvements in the facility
without the assurance that the lease with the City would be renewed. It also
appears that maintenance on the course has been reduced to an absolute mini-
mum and that only enough work is being performed to keep customers from
abandoning the course.
NGF Consulting believes this facility has a great deal of potential despite its
current condition. We recommend the City consider issuing a Request for Pro-
posals for the lease of this facility to a firm that is willing and financially capable
to make the necessary improvements to the course in a timely manner. We be-
lieve executive courses are essential in a golf market such as Clearwater, which has
large numbers of older golfers who are seeking modestly-priced and golfer-
friendly public access opportunities. Executive courses are also popular with
junior golfers and persons who are new to the game.
City of Clearwater Golf Course Analysis
62
,.!!..GF
w"oNSULTING
Financial Overview
By estimating a golf course's market share and using recent rounds played data, it
is possible to develop a cash flow proforma, which forecasts the course's future
performance. NGF Consulting's cash flow proformas display a projected five-year
performance based upon the assumption that persons who possess professional
qualifications and experience (City employees or a private golf course manage-
ment firm) will manage the facilities. It assumes the courses will be operated as
daily fee public access courses. It also assumes the recommended renovations
identified in the Golf Course Inspection section of the report will be made to
improve the respective courses and high-quality maintenance standards will be
adopted.
NGF Consulting used data obtained from the City of St. Petersburg's golf course
operation to develop the cash flow proformas for the Clearwater Country Club
and the Clearwater Golf Park.
Mangrove Bay, St. Petersburg's IS-hole regulation golf course; Cypress Links, a
newly opened 9-hole par-3 course; and Twin Brooks, an IS-hole par-3 course, are
considered to be some of the finest municipal golf course operations in the state,
if not the country. In addition to having an exemplary golf operation, the St.
Petersburg golf market is almost identical to the Clearwater market, and their
golf fees are very modest for the value received. We also used data from the
Mangrove Bay, Cypress Links, and Twin Brooks courses to project the cost of
operating the Clearwater courses. Operational costs were projected to be lower
for the Clearwater courses because of the basic differences in the facilities.
Financial Assumptions
Based on NGF Consulting's analysis of the area's golf markets, trends at local golf
facilities, and our analysis of the Clearwater Country Club and Clearwater Golf
Park operations, the following general assumptions have been used in the devel-
opment of the cash flow models:
City of Clearwater Golf Course Analysis
63
~!!GF
tlUNSULTING
D Both the Clearwater Country Club and the Clearwater Golf Park are expected
to generate approximately 60,000 rounds of golf the first full year of opera-
tion. It is projected that rounds of play will increase approximately 3 percent
a year to 67,600 by the fifth year.
D Rounds of play estimates are intended to be conservative, because we believe
that while course renovations are being made some customers may elect to
play elsewhere. It may take as long as three to four years to recapture this lost
business and generate new customers.
D Green fees used in the first year to develop the cash flow estimates for the
Clearwater Country Club are, on average, very similar to the current fees
being charged at the Mangrove Bay course.
D Green fees used in the first year to develop the cash flow estimates for the
Clearwater Golf Park are based on the current fees being charged at that
facility, but the categories have been modified so they are similar to the
Clearwater Country Club categories.
D The green fees schedule is based upon expectations for I8-hole, 9-hole and
twilight rounds of play for the entire year. These fees represent an average
between winter season and summer season fees. Discount fees are for City of
Clearwater residents only. The fee schedules for the Clearwater Country Club
and the Clearwater Golf Park are as follows:
Average Annual Green Fees
Year One
Country Club Golf Park
18-Hole Regular $18.00 $14.00
18-Hole Discount Residents $14.00 $10.00
9-Hole Regular $10.00 $8.00
9-Hole Discount Residents $7.00 $6.00
Twilight Regular $10.00 $7.00
Twilight Discount Residents $8.00 $5.00
Coupon $10.00 $8.00
18-Hole Cart Fee (per person) $10.00 $8.00
9-Hole Cart Fee (per person) $6.50 $5.00
D Green fees have been conservatively projected to increase by 50 cents per year
for I8-hole rounds and 25 cents for 9-hole rounds to offset inflation.
D The fee schedule for carts is projected to increase 25 cents per year.
D Approximately 58 percent of the facilities rounds are projected to occur as 18-
hole rounds. Approximately 10 percent of the rounds will be 9-hole rounds
City of Clearwater Golf Course Analysis
64
It> '!..GF
-.,oNSULTING
and 19 percent of the facilities play will be as twilight rounds. Coupon rounds
are projected to be 13 percent of all rounds. These estimates are based on the
expected level of quality of the courses, anticipated competitive pricing, and
the continuation of existing dynamics of the local golf market.
o Financial projections do not include a category for the sale of annual or
monthly memberships. Annual memberships tend to undermine the long-
term pricing potential for golf facilities and can have a negative effect on
profitability.
o NGF Consulting has assumed that the Clearwater Country Club course will
lease 60 carts and the Golf Park course will lease 40 carts at an annual per cart
rate of $1,000, including cart maintenance for the first year. The maintenance
contract for the second year is projected at $300 per cart, which win increase
at 2.5 percent annually through the fifth year of operation.
o Golf cart utilization is estimated at 50 percent for all 18-hole and coupon play
and 35 percent for 9-hole and twilight play.
o This model assumes that professionally qualified City employees or a golf
course management firm will operate the facility for the City of Clearwater.
All cash flow from the various departmental income sources (green fees, carts,
pro shop, food and beverage, and driving range) will accrue to the City.
o NGF Consulting has assumed that golf clubs, balls, shoes, and soft goods will
be the merchandise sold in the golf shops. Costs of goods sold in the golf
shop is estimated at 85 percent of revenues.
o NGF Consulting has assumed modest food and beverage operations that
would include a grill, snack bar, soft drinks, beer, wine, and vending items.
The current Country Club food and beverage operation would not be repli-
cated. Cost of goods sold for the food and beverage concession is projected to
be 60 percent of this department's revenues.
o Driving range expenses are projected at 25 percent of range revenues prima-
rily to cover the cost of ball replacement and other related expenses each
year. Personnel costs for the range operation are reflected in part-time staff-
mg.
Estimated Maintenance and Operational Expenses
NGF Consulting has made some basic assumptions for expenses for each golf
course based on NGF Consulting's experience, national and regional averages,
and input from other courses in the area.
City of Clearwater Golf Course Analysis
65
,..!:!GF
~NSULTING
Clearwater Country Club Maintenance Expense
Maintenance Expense · Year 1
Salaries & Wages
Full Time Employees
Course Superintendent
Assistant Superintendent
Mechanic
I rrigation/Spray Technician
Grounds workers (200 Hrs per week @ $15/Hr)
Benefits & Taxes @ 25%
Total Salaries, Wages & Benefits
Materials & Supplies
Repairs
Fuel & Oil
Utilities
Miscellaneous
Total Maintenance Expense
$50,000
$38,000
$33,000
$33,000
$104,000
$64,500
$322,500
200,000
50,000
10,000
70,000
50,000
$702,500
Maintenance expenses for the golf course have been estimated to be approxi-
mately $702,500 in the first year of operation, growing at 3.5 percent per year to
slightly over $ 806,000 by the fifth year of operation.
General and administrative expenses for the entire facility have been estimated to
be approximately $549,000 in the first year of operation, growing at 3.5 percent
per year to just over $630,000 by the fifth year of operation. General and admin-
istrative expenses are expected to conform to the following general schedule
prepared by NGF Consulting.
City of ClearwatBr Golf Course Analysis
66
,.!iGF
~NSULTING
Clearwater Country Club Administrative & General Expense
Administrative and General Expense · Year 1
Salaries & Wages
Full Time Employees
General Manager/Head Golf Professional
2 Assistant Golf Professional @ $35,000
Benefits & Taxes @ 25%
Part Time Labor
Shop Clerks/Snack Bar/Range (10,400 hours @ $10/hr.)
Total Salaries, Wages & Benefits
Telephone, Postage & Printing
Building Maintenance & Utilities
Security
Advertising & Promotion
Professional Services
Insurance
Supplies
Miscellaneous
Total Administrative & General Expense
$55,000
70,000
31,200
104,000
$260,200
25,000
50,000
20,000
50,000
30,000
60,000
20,000
25,000
$540,200
o The recommended maintenance budget reflects high-quality standards equal
to or better than the best golf facilities in the Clearwater golf market. The
estimates allow for the necessary resources needed to upgrade the current
condition of the golf course. These expenditures will be necessary to attract
additional rounds to the Clearwater Country Club.
o All expenses for the golf course are projected to increase at 3.5 percent
annually. The exception is the golf cart lease, which incurs an annual mainte-
nance fee of $300/cart beginning in Year Two and increasing at 2.:) percent
annually thereafter.
o A reserve for capital improvements has been estimated at three percent of
gross revenue starting in Year Two of operation. This reserve is for the re-
placement of short-lived items such as furniture, fixtures, and equipment
associated with the operation of the facility, as well as improvements/modifi-
cations to the course.
o Supportable debt level is based upon Year Five net operating income (NOI)
with a debt coverage ratio of 1.25, over a 3D-year amortization schedule and
with an interest rate of 6.5 percent. This measure infers the amount of in-
debtedness the course can support that can be used to make upgrades and
improvements.
o The food and beverage service reflects only a snack bar operation rather than
the extensive service currently being provided to Club members. Beverages
are assumed to be non-alcoholic.
City of Clearwater Golf Course Analysis
67
cFJGF
NSULTING
Projected Performance levels for the Clearwater Country Club Golf Course
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
ANNUAL ROUNDS
18-Hole Regular 30,000 30,900 31,900 32,800 33,800
18-Hole Discount 4,800 4,900 5,100 5,200 5,400
9-Hole Regular 4,200 4,300 4,500 4,600 4,700
9-Hole Discount 1,800 1,900 1,900 2,000 2,000
Twilight Regular 10,200 10,500 10,800 11,200 11,500
Twilight Discount 1,200 1,200 1,300 1,300 1 ,400
Coupon 7,800 8,000 8,300 8,500 8,800
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
PROJECTED GREEN FEES (Average Annual Fee)
18-Hole Regular $18.00 $18.50 $19.00 $19.50 $20.00
18-Hole Discount Residents $14.00 $14.50 $15.00 $15.50 $16.00
9-Hole Regular $10.00 $10.25 $10.50 $10.75 $11.00
9-Hole Discount Residents $7.00 $7.25 $7.50 $7.75 $8.00
Twilight Regular $10.00 $10.50 $11.00 $11.50 $12.00
Twilight Discount Residents $8.00 $8.25 $8.50 $8.75 $9.00
Coupon $10.00 $10.50 $11.00 $11.50 $12.00
PROJECTED CART FEES
18-Hole Cart Fee (per person) $10.00 $10.25 $10.50 $10.75 $11.00
9-Hole Cart Fee (per person) $6.50 $6.75 $7.00 $7.25 $7.50
PROJECTED DEPARTMENTAL REVENUES PER ROUND
Pro Shop Sales $2.00 $2.25 $2.50 $2.75 $3.00
Food & Beverage Snack Bar Sales $1.50 $1.75 $2.00 $2.25 $2.50
Driving Range Sales Per Round of Golf $1.00 $1.25 $1.50 $1.75 $2.00
REVENUES:
Green Fee Revenue $851 ,400 $904,700 $965,250 $1,023,075 $1,086,300
Golf Cart Revenue $376,100 $397,100 $421,500 $444,100 $469,500
Pro Shop Revenue $120,000 $107,700 $123,600 $139,800 $157,100
Food & Beverage Revenue $90,000 $38,900 $45,900 $53,200 $60,800
Driving Range Revenue $60,000 $77 ,300 $95,600 $114,800 $135,200
TOTAL PROJECTED REVENUE $1,497,500 $1,525,700 $1,651,850 $1,774,975 $1,908,900
Less: Cost of Sales
Pro Shop $102,000 $91,500 $105,100 $118,800 $133,500
Food & Beverage $54,000 $23,300 $27,500 $31,900 $36,500
Driving Range $15,000 $19,300 $23,900 $28,700 $33,800
TOTAL COST OF SALES $171,000 $134,100 $156,500 $179,400 $203,800
ADJUSTED GROSS INCOME $1,326,500 $1,391,600 $1,495,400 $1,595,600 $1,705,100
EXPENSES:
Administrative and General $540,200 $559,100 $578,700 $599,000 $620,000
Course Maintenance $702,500 $727,100 $752,500 $778,800 $806,100
Golf Cart Lease $60,000 $78,000 $78,000 $78,000 $78,000
TOTAL PROJECTED EXPENSES $1,302,700 $1,364,200 $1,409,200 $1,455,800 $1,504,100
Capital Improvement Reserve ~ MQ..QQQ $4.9...6QQ ~ ~
NET OPERATING INCOME ($57,700) ($12,500) $43,000 $93,000 $150,000
Net Operating Margin -4% -1% 3% 5% 8%
ESTIMATED AMOUNT OF SUPPORTABLE DEBT $1,570,000.
. Based on Year 5 NOI and debt coverage ratio of 1.25
City of Clearwater Golf Course Analysis 68
".!!.GF
-.,oNSULTING
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
OPERATIONAL
BREAKEVEN ANALYSIS
(Not Including Debt Service)
Total Projected Expenses
(Including Cost of Sales) $1,491,700 $1,499,100 $1,566,500 $1,636,000 $1,708,800
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
Average Expense Per Round $24.86 $24.26 $24.59 $24.94 $25.28
Total Projected Revenues $1,434,000 $1,532,600 $1,659,250 $1,782,475 $1,916,300
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
Projected Revenue Per Round $23.90 $24.80 $26.05 $27.17 $28.35
Total Projected Expenses $1,491,700 $1,499,100 $1,566,500 $1,636,000 $1,708,800
Projected Revenue Per Round $23.90 $24.80 $26.05 $27.17 $28.35
Breakeven Rounds Required 62,414 60,449 60,139 60,209 60,280
$23.90 $24.80 $26.05 $27.17 $28.35
Cart Lease Payment Schedule
Number of Carts 60 60 60 60 60
Lease Rate Per Cart $1,000 $1,000 $1,000 $1,000 $1,000
Cart Lease Payment $60,000 $60,000 $60,000 $60,000 $60,000
Maintenance Per Cart $0 $300 $300 $300 $300
Cart Maintenance Total $0 $18,000 $18,000 $18,000 $18,000
TOTAL $60,000 $78,000 $78,000 $78,000 $78,000
NGF Consulting's financial projections for the Clearwater Country Club indicate
a net operating deficit (NOI) of $57,700 in the first full year of the new opera-
tion. The NOI is projected to grow to $150,000 by the fifth year of operation.
The financial model is based on conservative projections. Revenue projections
are conservatively quantified using historical activity levels and current fee sched-
ules. However, facility expenses have been estimated at levels that make ample
allowance for the staffing, materials, supplies, and other associated expenditures
necessary to operate the course.
It must be stressed that our projections are based upon the management and
operation of a high-quality golf facility, which features excellent maintenance
conditions and offers a high level of customer service. The expenses projected
for the Clearwater Country Club were developed based on an upscale operation,
offering one of the best facilities in the Clearwater golf market.
The financial projections indicate that the golf facility appears capable of sup-
porting $1.57 million in debt, based upon the terms utilized, that can be used to
upgrade the course and make all of the recommended improvements.
City of ClearwatBr Golf Course Aoalysls
69
,..!!.tJF
tlUNSULTING
NGF Consulting's breakeven analysis reveals the Clearwater Country Club must
generate 62,414 rounds of golf at an average income per round of $23.90 to meet
its first year operating expenses, exclusive of principal and interest payments.
Average income per round is based upon total course revenues (green and cart
fees, and driving range, pro shop, and food/beverage sales) divided by the total
number of rounds. By Year Five, it will take 60,280 rounds at an average income
per round of $28.35 to meet operating expenses.
Conclusions
NGF Consulting has prepared a cash flow model that is based on the assumption
that the existing golf course is upgraded and recommended course improve-
ments are made. In addition, NGF Consulting has assumed the clubhouse will
not be replaced or significantly upgraded. It is our recommendation that until all
course improvements have been made and the financial performance of the
course meets projections, the clubhouse should remain as is with the exception of
minor improvements funded by the operating budget.
The results of NGF Consulting's preliminary cash flow projection show that the
Clearwater Country Club can expect to generate approximately $1.4 million in
total gross revenue Year One. By the Year Five, NGF Consulting projects gross
revenue to be over $1.9 million. Net Operating Income is projected to be a loss
in the amount of $57,700 in Year One. However, by Year Five of the operation it
is projected to increase to $150,000.
Using Net Operating Income from Year Five, NGF Consulting has determined
that the golf operation is capable of supporting $1.57 million of debt for making
improvements to the golf course and its amenities.
A breakeven analysis of revenues and expenses reveals that, at an average total
income of approximately $23.90 per round of golf, it will require some 62,400
rounds to meet operating expenses Year One. By Year Five it will take almost
60,300 rounds at an average of approximately $28.35 to break even.
In an attempt to be conservative in our financial projections, we have not fac-
tored attracting more golf activity from any markets other than the two
Clearwater market areas in our proforma. However, we do think the Clearwater
Country Club has the potential for generating some rounds from golfers who live
beyond the 15-mile radius as well as visitors and tourists.
NGF Consulting believes the Clearwater Country Club can achieve only a limited
degree of financial success, if it is operated and maintained by City employees or
if the City uses the expertise of a professional management firm. However, this
City of ClearwatBr Golf Course Analysis
70
,.!!GF
~NSULTING
management option will allow the City to protect the value of the golf course
asset and provide the residents of Clearwater with a high quality, affordable golf
facility. The City will also have direct control over the golf course operation and
can be more responsive to addressing the needs of customers.
However, generating the needed revenue to cover the estimated cost of making
all the recommended golf course improvements will require significantly higher
fees and more rounds of play. NGF Consulting questions if the course can gener-
ate much higher levels of activity at higher fees than what have been projected in
the financial model. It is NGF Consulting's belief that the City of CleaIwater will
have to be willing to assume a significant financial risk if it decides to operate the
Clearwater Country Club as a public access golf facility.
Clearwater Golf Park Maintenance Expense
Maintenance Expense · Year 1
Salaries & Wages
Full Time Employees
Course Superintendent
Assistant Superintendent/Mechanic
I rrigation/Spray Technician
Grounds workers (120 Hrs per week @ $10/Hr)
Benefits & Taxes @ 25%
Total Salaries, Wages & Benefits
Materials & Supplies
Repairs
Fuel & Oil
Utilities
Miscellaneous
Total Maintenance Expense
I
$50,000
$38,000
$33,000
$62,400
$45,800
$229,200
150,000
50,000
7,000
30,000
50,000
$516,200
Maintenance expenses for the golf course and the driving range have been
estimated to be approximately $516,000 in the first year of operation, growing at
3.5 percent per year to slightly over $ 550,000 by the fifth year of operation.
City of Clearwater Golf Courst! AnalysIs
71
CNGF
ONSULTING
Clearwater Golf Park Administrative & General Expense
Administrative and General Expense · Year 1
Salaries & Wages
Full Time Employees
General Manager/Head Golf Professional
1 Assistant Golf Professional
Benefits & Taxes @ 25%
Part Time labor
Shop Clerks/Snack Bar/Range/Carts/Rangers
(10,400 hours @ $10/hr.)
Total Salaries, Wages & Benefits
Telephone, Postage & Printing
Building Maintenance & Utilities
Security
Advertising & Promotion
Professional Services
Insurance
Supplies
Miscellaneous
Total Administrative & General Expense
$55,000
30,000
21,200
104,000
$210,200
15,000
50,000
20,000
50,000
30,000
60,000
20,000
25,000
$480,200
General and administrative expenses for the entire facility have been estimated to
be approximately $480,200 in the first year of operation, growing at 3.5 percent
per year to just over $550,000 by the fifth year of operation.
o The recommended maintenance budget reflects high-quality standards equal
to or better than the best golf facilities in the Clearwater golf market. The
estimates allow for the necessary resources needed to upgrade the current
condition of the golf course. These expenditures will be necessary in order to
attract additional rounds to the Clearwater Golf Park.
o All expenses for the golf course are projected to increase at 3.5 percent
annually. The exception is the golf cart lease, which incurs an annual mainte-
nance fee of $300/ cart beginning in Year Two and increasing at 2.5 percent
annually thereafter.
o A reserve for capital improvements has been estimated at three percent of
gross revenue starting in Year Two of operation. This reserve is for the re-
placement of short-lived items such as furniture, fixtures, and equipment
associated with the operation of the facility, as well as improvements/modifi-
cations to the course.
o Supportable debt level is based upon Year Five Net Operating Income with a
debt coverage ratio of 1.25, over a 30-year amortization schedule and with an
interest rate of 6.5 percent. This measure infers the amount of indebtedness
the course can support that can be used to make upgrades and improvements.
CIty of Clearwater Golf Course AnalysIs
72
c;,GF
NSULTING
Projected Performance levels for the Clearwater Golf Park Golf Course
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
ANNUAL ROUNDS
18-Hole Regular 30,000 30,900 31,900 32,800 33,800
18-Hole Discount 4,800 4,900 5,100 5,200 5,400
9-Hole Regular 4,200 4,300 4,500 4,600 4,700
9-Hole Discount 1,800 1,900 1,900 2,000 2,000
Twilight Regular 10,200 10,500 10,800 11 ,200 11 ,500
Twilight Discount 1,200 1,200 1,300 1,300 1,400
Coupon 7,800 8,000 8,300 8,500 8,800
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
PROJECTED GREEN FEES (Average Annual Fee)
18-Hole Regular $14.00 $14.50 $15.00 $15.50 $16.00
18-Hole Discount Residents $10.00 $10.50 $11.00 $11 .50 $12.00
9-Hole Regular $8.00 $8.25 $8.50 $8.75 $9.00
9-Hole Discount Residents $6.00 $6.25 $6.50 $6.75 $7.00
Twilight Regular $7.00 $7.50 $8.00 $8.50 $9.00
Twilight Discount Residents $5.00 $5.25 $5.50 $5.75 $6.00
Coupon $8.00 $8.50 $9.00 $9.50 $10.00
PROJECTED CART FEES
18-Hole Cart Fee (per person) $8.00 $8.25 $8.50 $8.75 $9.00
9-Hole Cart Fee (per person) $5.00 $5.25 $5.50 $5.75 $6.00
PROJECTED DEPARTMENTAL REVENUES PER ROUND
Pro Shop Sales $1.00 $1.25 $1.50 $1.75 $2.00
Food & Beverage Snack Bar Sales $1.50 $1.75 $2.00 $2.25 $2.50
Driving Range Sales Per Round of Golf $0.75 $1.00 $1.25 $1.50 $1.75
REVENUES:
Green Fee Revenue $652,200 $699,900 $753,450 $805,375 $861,800
Golf Cart Revenue $200,900 $213,600 $228,100 $241,900 $382,800
Pro Shop Revenue $60,000 $59,800 $74,200 $89,000 $104,700
Food & Beverage Revenue $90,000 $38,900 $45,900 $53,200 $60,800
Driving Range Revenue $45,000 $61,800 $79,600 $98,400 $118,300
TOTAL PROJECTED REVENUE $1,048,100 $1,074,000 $1 ,1 81 ,250 $1,287,875 $1,528,400
Less: Cost of Sales
Pro Shop $51,000 $50,800 $63,100 $75,700 $89,000
Food & Beverage $54,000 $23,300 $27,500 $31,900 $36,500
Driving Range $11,300 $15,500 $19,900 $24,600 $29,600
TOTAL COST OF SALES $116,300 $89,600 $110,500 $132,200 $155,100
ADJUSTED GROSS INCOME $931,800 $984,400 $1,070,800 $1,155,700 $1,373,300
EXPENSES:
Administrative and General $480,200 $497,000 $514,400 $532,400 $551,000
Course Maintenance $516,200 $534,300 $553,000 $572,400 $592,400
Golf Cart Lease $40,000 $52,000 $52,000 $52,000 $52,000
TOTAL PROJECTED EXPENSES $1,036,400 $1,083,300 $1,119,400 $1,156,800 $1,195,400
Capital Improvement Reserve iQ ~ ~ ~ ~
NET OPERATING INCOME ($104,600) ($131,100) ($84,000) ($39,700) $132,000
Net Operating Margin -10% -12% -7% -3% 9%
ESTIMATED AMOUNT OF SUPPORTABLE DEBT$1 ,380,000'
. Based on Year 5 NOI and debt coverage ratio of 1.25
City of Clearwater Golf Course Analysis
73
,..!!tJF
~NSULTING
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
OPERATIONAL
BREAKEVEN ANALYSIS
(Not Including Debt Service)
Total Projected Expenses
(Including Cost of Sales) $1,152,700 $1,172,900 $1,229,900 $1,289,000 $1,350,500
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
Average Expense Per Round $19.21 $18.98 $19.31 $19.65 $19.98
Total Projected Revenues
Total Projected Rounds $1,048,100 $1,074,000 $1,181,250 $1,287,875 $1,528,400
Projected Revenue Per Round 60,000 61,800 63,700 65,600 67,600
Total Projected Expenses $17.47 $17.38 $18.54 $19.63 $22.61
Projected Revenue Per Round
Breakeven Rounds Required $1,152,700 $1,172,900 $1,229,900 $1,289,000 $1,350,500
$17.47 $17.38 $18.54 $19.63 $22.61
Cart Lease Payment Schedule 65,988 67,491 66,323 65,657 59,732
Number of Carts 40 40 40 40 40
Lease Rate Per Cart $1,000 $1,000 $1,000 $1,000 $1,000
Cart Lease Payment $40,000 $40,000 $40,000 $40,000 $40,000
Maintenance Per Cart $0 $300 $300 $300 $300
Cart Maintenance Total $0 $12,000 $12,000 $12,000 $12,000
TOTAL $40,000 $52,000 $52,000 $52,000 $52,000
NGF Consulting's financial projections for the Clearwater Golf Park indicate a
net operating income (NOI) loss of $104,600 in the first full year of the opera-
tion. The NOI is projected to continue as a loss for the next three years. How-
ever, by the fifth year of operation the NOI is projected to increase to a positive
$132,000.
The financial model is based on conservative projections. Revenue projections
are conservatively quantified using historical activity levels and current fee sched-
ules. However, facility expenses have been estimated at levels that make ample
allowance for the staffing, materials, supplies, and other associated expenditures
necessary to operate the course.
It must be stressed that our projections are based upon the management and
operation of a high-quality golf facility, which features excellent maintenance
conditions and offers a high level of customer service. The expenses projected
for the Clearwater Golf Park were developed based on a good quality operation,
offering one of the best executive golf courses in the Clearwater golf market.
The financial projections indicate that the golf facility is incapable of supporting
any debt that can be used make any of the recommended improvements until the
fifth year of operation.
City of ClearwatBr Golf Course Analysis
74
,.!!.GF
~NSULTING
NGF Consulting's breakeven analysis reveals that the Clearwater Golf Park must
generate almost 66,000 rounds of golf at an average income per round of $17.47
to meet its first year operating expenses, exclusive of principal and interest pay-
ments. Average income per round is based upon total course revenues (green
and cart fees, and driving range, pro shop and food/beverage sales) divided by
the total number of rounds. By Year Five, it will take 59,700 rounds at an average
income per round of $22.61 to meet operating expenses.
Conclusions
NGF Consulting has prepared a cash flow model that is based on the assumption
that the existing golf course is upgraded and recommended course improve-
ments are made. In addition, NGF Consulting has assumed the clubhouse will
not be included in a capital improvement program.
The results of NGF Consulting's preliminary cash flow projection show that the
Clearwater Golf Park can expect to generate approximately $1 million in total
gross revenue Year One. By the Year Five, NGF Consulting projects gross revenue
to be $1.5 million. Net Operating Income is projected to be at a deficit of
$104,000 in Year One but growing to $132,000 by the fifth year of operation.
NGF Consulting has determined that the golf operation is not capable of support-
ing any debt until Year Five when the NOI will support $1.3 million in debt
servIce.
In an attempt to be conservative in our financial projections, we have not fac-
tored attracting more golf activity from any markets other than the Clearwater
market area in our proforma. However, we do think the Clearwater Golf Park has
the potential for generating some rounds from golfers who live beyond the 15-
mile radius, as well as seasonal residents and tourists.
NGF Consulting believes the Clearwater Golf Park may be able to achieve finan-
cial success if a private operator is willing to make a long-term investment in the
facility and can reduce the expenses and increase the revenues projected in the
financial model.
If the course is operated and maintained for the City using the expertise of a
professional management firm, it is possible that the course can break even or
achieve a small positive cash flow after improvements are completed and the
course develops a new image. However, the City will be assuming a risk that can
be a financial liability for several years.
City of ClearwatBr Golf Course Analysis
75
".!!GF
tIONSULTING
Management Options
As the current Clearwater Country Club and Clearwater Golf Park lease agree-
ments near completion, the City of Clearwater has the opportunity to consider
which management method is best for the future operation of the courses. Arriv-
ing at the right management method can be a complicated procedure, because
the two facilities are dissimilar and they serve different segments of the
Clearwater golf market.
Following are outlines of various management methods for consideration. Man-
agement contracts, operating leases, and concession agreements are the three
most commonly used terms to describe a contract between a municipality and a
private golf course operator. Each has significant differences; however, there are
several factors common to all three. The following is a brief comparison of the
three options frequently used to operate municipal golf courses.
Management Contract
The primary goal of a management contract or management agreement is to
provide the golf facility with experienced professional managers who are respon-
sible for the daily operation and maintenance. This relieves the municipality of
there tasks regardless of the method used to finance the improvements or addi-
tions to the golf course.
In a typical management contract, the municipality hires a firm that is charged
with all management and maintenance responsibilities. The municipality funds
all capital improvements, and the management firm hires all employees. Because
employees work for the management firm and not the municipality, payroll cost
may be less; thus, the operating expenses may be reduced.
The management firm collects all revenue and provides complete accounting
reports to the municipality. .AJI revenues belong to the municipality, as well as
responsibility for all expenses. The municipality reimburses the management
firm for all payroll expenses plus a management fee. The firm is paid a manage-
ment fee, which may be a fixed dollar amount, a predetermined percentage of
City of Clearwater 60lf Course Analysis
76
,.!!GF
tIONSULTING
operating revenues, or some combination of both. Sometimes, the management
firm is paid a commission that is predicated on percentages of gross receipts or
net income, over and above the established minimum revenues. The operating
expense budget must be maintained at the original projection for incentives to be
earned.
Management fees can range from $50,000 to $150,000 annually depending upon
the services that are provided to the municipality. As a percentage of gross rev-
enues, the management firm's annual fee could be in the range of four to seven
percent. Incentives built into the agreement allow the firm to share any addi-
tional revenues, possibly 5 to 15 percent of gross revenues, or 10 to 30 percent of
net income.
The management firm submits detailed budgets to the municipality before the
operating year. The municipality monitors the firm's utilization of budgeted
funds and is responsible for any unforeseen expenses beyond the control of the
management firm.
Because of the close working relationship between the municipality and the
management firm, the changing golf economy, and capital requirements of golf
courses, the typical management contract requires frequent revision. The length
of the typical agreement is relatively short, three to five years, and may include
option periods.
A management contract is appropriate when substantial capital is not needed for
the physical facility, and the municipality could be involved on a part-time basis in
the operation of the facility. That is, the municipality should have an individual
who can work with the management firm when a questionable issue arises. This
should occur infrequently if the management agreement contains the necessary
controls.
In conjunction with a well-constructed contract, the management contract form
of operation provides the controls necessary to protect a substantial asset. It
provides the greatest amount of up-side revenue potential to the municipality,
allows the municipality the most input into operating and capital programs, and
provides the most flexibility of any management style, short of self-operation by
the public entity.
There are potential downsides to the management contract option. The munici-
pality would need a person with golf course expertise who could spend time
overseeing the management firm. The capital program could be confusing to the
municipality without the proper expertise, although developing a long-term plan
(five years) would help reduce this concern.
City of Clearwater Golf Course Analysis
77
,.!!.GF
~NSULTING
The major concern with a management contract is the risk the municipality
would be taking relative to shortfalls. The management firm's fee is guaranteed,
as long as the contract provisions have been met. If new facilities open in the area
and negatively impact revenue, or a natural disaster occurs, the municipality
could be left with a shortfall after paying the golf course debt.
Advantages and Disadvantages of a Management Contrad
D The major advantage is that the municipality is removed from day-to~lay
operation in exchange for a payment of a pre~etermined fee plus a percent-
age of gross revenues or some other formula, that is fair to both parties and
complies with financing regulations. In addition, the municipality retains all
net revenues.
D A disadvantage is that this option offers the municipality less control than self-
operation, but probably more control than with the operating lease.
D Although it can be considered a disadvantage, the municipality may receive
lower net revenues than through self-operation, due to the fees and incentives
paid to the management firm. However, the savings from lower payroll costs
may offset the lower revenues.
Operating lease
The primary goals of an operating lease are to relieve the municipality of all
operating concerns, to ensure a minimum rent payment to the municipality, and
to protect the asset.
An operating lease is similar to a management contract in that the lessee, like the
management firm, hires and fires employees and is responsible for the day-t~ay
operation of the facility. The difference between the two is that the lessee is
committed to pay the municipality a fixed rent, pay all operating expenses and,
typically, provide some capital for investment in the golf facility. This capital
investment differs depending on the subject facility.
A lease agreement for the Clearwater Country Club would require a lessee to
supply the personal property necessary for the operations. This includes golf
course maintenance equipment, golf carts, clubhouse furnishings, and all operat-
ing licenses. Often, a lessee may be required to make course and building im-
provements (clubhouse, maintenance barn, cart storage, etc.).
Some disadvantages of the operating lease are that the municipality would likely
receive less of the upside revenue potential than with a management contract.
Under the terms of an operating lease, the management firm keeps all net rev-
enues.
City of Clearwater Golf Course Anatysls
78
,..!!..GF
-.,oNSULTING
In an operating lease, the municipality is less involved in operating and personnel
decisions and has little or no involvement in determining operating expense
budgets.
However, if a lease agreement is properly constructed, with an emphasis on lessee
controls and reports, maintenance specifications, and capital improvement
provisions, the operating lease can provide the necessary protection for the
municipality and the golf course asset.
As with other management options, the municipality should have a person who
has golf course expertise monitoring the operation and enforcing cont.ract com-
pliance.
Advantages and Disadvantages of an Operating Lease
The advantages of the operating lease are:
· The municipality is removed from day-to-day operation in exchange for a
pre-determined rent.
· Revenue realized from a lease can equal or exceed debt service payments.
The disadvantages are:
.
This option offers the municipality the least amount of daily control over
the golf course operation. Changes to the golf operation requested by the
municipality can be contentious and may take a long time to accomplish.
If litigation becomes necessary, this can be costly to both parties and result
in an adversarial relationship between the lessee and the municipality.
Leases often have long terms, usually 15 to 20 years. During this period, it
may be difficult for a municipality to sustain contract compliance. The
spirit of the original agreement may erode over time and the individuals
responsible for developing the agreement may no longer be associated
with the municipality.
The municipality is required to establish controls and maintain vigilance
over the lessee's accounting system to assure it receives all of the rent per
the lease agreement~
The lessee may be forced to cut maintenance expenses and raise fees to
justify the operation.
The municipality would receive significantly less revenue than it would
through self-operation.
.
.
.
.
City of Clearwater 60lf Course Analysis
79
~!!GF
~NSULTING
Concession Agreement
This form of agreement is similar to a lease agreement. However, a concession
agreement usually involves granting a license to operate a facility rather than the
right to occupy the premises. Concession agreements are thought to be easier to
cancel than a lease agreement. They are frequently for a shorter term, compared
to a lease, and contain more controls. Concession agreements are usually
granted for properties in an "as is" condition and seldom require the concession-
aire to make major physical improvements to the facility.
Concessionaires are frequently permitted to use course-owned equipment with
the obligation only to maintain the equipment. Because of the short term of
most concession agreements, there is little incentive to make major investments
on the part of the concessionaire. Payment for concession licenses is usually a flat
fee plus a percentage of gross receipts.
Advantages and Disadvantages of a Concession Agreement
The advantages are:
. The municipality is removed from the day-to-day operation in exchange
for a pre-determined fee plus a percentage of gross receipts.
. Concession agreements provide more control than an operating lease, but
less than a management contract.
. The term of a concession agreement is typically shorter than an operating
lease.
The disadvantages of a concession agreement are:
. The municipality is responsible for all major capital improvements.
. There are likely to be fewer highly qualified management firms interested
in a short-term concession agreement. They prefer to put their resources
into projects that have longer terms and have the potential to be more
financially rewarding.
Self-Operation
There are more than 3,000 municipal golf courses in the United States. The
majority of these courses are self-operated by governmental jurisdictions, be it a
city, town, county, state, or park district. Since the first municipal course in the
United States (Van Courtlandt Park) opened in New York City in 1895, municipal
governments have developed and operated public access golf courses. Not only
are there long traditions of self-operated municipal golf courses, the majority of
City of Clearwatsr Golf Course Analysis
80
".!!GF
~NSULTING
these courses are successfully providing their communities with affordable golf
opportunities. Many courses that have retired capital debt payments are able to
operate on a self-sustaining basis. Some are able to generate excess revenues that
are used to fund other recreational activities.
Self-operation gives the municipality the greatest control over the golf operation.
In the case of the Clearwater Country Club and the Clearwater Golf Park, the City
would retain control over establishing policies and procedures, hours of opera-
tion, fee schedules, and operating and capital budgets. All revenues would be
available to pay for maintaining the course and upgrading areas that need im-
provements. None of the revenue would be taken as profit, as would be the case
with a privately managed course.
The City may have the fiscal resources to make improvements to these two
courses, such as course upgrades or the purchase of new equipment, which
private management firms may not have. Self-operation could assure thatim-
provements would be funded and made in a timely manner. Issuance of tax-
exempt debt by the City would enable capital projects to be financed at a far
lower interest rate than is available to private management firms. Should the City
elect to leasethe course to a private operator or grant a concession contract to an
operator it is not likely that capital improvements would be made as quickly or
extensively as the City would make them.
Self-operation also has its downside, as some municipalities have painfully
learned. In an attempt to capture the favor of their residents, some municipal
golf operations have been managed by political decisions rather than business
decisions. Invariably, these operations begin to suffer from a lack of resources
due to low revenues and high expenses. When revenues are inadequate to meet
operating expenses, budgets are cut and the quality of the course begins to
deteriorate. This often results in a loss of customers and a further loss of rev-
enues. The course operation usually goes into a downward spiral, until it hits
bottom. At that point, the municipality either tries to lease the course to a private
operator or faces a costly restoration to bring the facility back to a condition that
is competitive in the market.
City of ClearwatBr Golf Course Analysis
81
,..!!GF
~NSULTING
Comparisons
The following chart identifies the major differences of the four golf course man-
agement options that may be available to the City of Clearwater.
Lessee is required to
pay for all
improvements. The
City may give lessee
relief from rent
schedule in
consideration for cost
of improvements.
TheCityhastota'. ....... Lessee has budget Concessionaire has
responsibilityforthe responsibility. The City . budget responsibility.
budgetmanagedby should have The City should<
the firm. .. .. ... authorization to review requireauthorizationt()
.. .. expenditures. for .. . review expenditures to
i> maintenanceand. verify contract
.. ... .. .... ...... capitalimprovernents. compliance. . . .
All revenues belong to All revenues belong to All revenues belong to
the City. the lessee. the concessionaire.
Contractual
Obligations
Management
Contract
Initial contract may be
for three to five years
with two-year options.
........... City pays management
d .....<... finnafixedJeef6fits
................. .....>i services, pipS
ir?~ntMes.y
Capital City pays for all
Improvements improvements.
Term of
Contract
Operationsnd
Maintenance
Budgets.
Revenues
Operating Lease
Initial contract may be
five to ten years with
five-year options.
Lessee paysJhe CitY a.
fixed fee ora
percent~ge..of.gross
rec:eiptswhicheveris ..
higher. ... ....... ... .... .....
Concession
Agreement
Initial contract may be
for three years with
two, one-year options.
ConcessionaIre..pays
the. City aflattee,pms
a percentageotgross
. receipts .. ...
..........
Concessionaire may
pay for minor items;
the City pays for all
major projects.
,... ... ............ uyult, ... Set by the lessee, > Recommendedbythe
i"'--.. . ... approved by the City. concessionaire,
..... >.. .> Approvalshouldnotbe approved by the City.
........................ .... .... denied if fees are
...iYi .. ....... c......o....nl.p....e. t.i...t.iv. e..with
. . ................... market.. .. . ...
Established by the Recommended by the
City. lessee, approved by
the City.
Fees and
Charges
Hours of
Operation
...
.....
......... ....... The. Gity mUst have
.. .. ..... ... approval over . . .. .
.. managemehtfirm's
>> staff.Anernployee~
. ... belOng to the .>
>> managemerltfirlTl'City
ii ~::n~~i.spayrOIl.. ..... ....
> ....
......
........ ......
.......>
Equipment
The City can supply all
equipment or require
the contractor to
provide it.
Ih~Citycah dern~d
that..key..staff..be
replaced.'if.lesseefails
to qornply)vitl1c()ntrac:t
l'equIremsl1t$.
Lessee is required to
provide all equipment.
Self Operation
Not Applicable.
...y.Y........ ........
Ii ....>i
. ...... >. ......>
.....
City is
responsible for all
capital
improvements.
City has authority
over approving
golfcourse
budget.
....
All revenues
belong to the
City.
....
I the City. ..'
I
Recommended by the Established by
concessionaire, the City.
approved by the City.
. .
~
.i
.<
nn ~~1
...../i
City purchases,
maintains, and
replaces all
equipment.
..
......
City of ClearwatBr Golf Course AnalysIs
82
.....................~.i
......>i
........
.....
...'..........\...................i................
The City may include
the use of its
equipment in the
agreement;
concessionaire is
obligated to maintain
and replace equipment
as needed.
~SULTING
Management Recommendation - Clearwater Country Club
NGF Consulting believes the City should continue to lease the Clearwater Coun-
try Club to the members. However, the operation, maintenance, and improve-
ments to the facility should be more closely supervised by the City, and the Club
should pay the City a fair annual rent, pay property taxes, and make improve-
ments to the golf course in accordance with a capital improvement schedule
agreed upon by both parties. This method is preferable to any of the other
management alternatives. We offer the following reasons for this recommenda-
tion:
D The City of Clearwater Department of Parks and Recreation has no recent
experience operating or maintaining a golf course.
D The City would be assuming a significant financial risk by undertaking the
operation of this facility. The course's design and its inherent deficiencies
preclude this facility from accommodating sufficient rounds to make it a
profitable daily fee facility.
D The Clearwater Country Club needs various capital improvements and up-
grades, now and in the future. NGF Consulting recommends the Club make
these improvements thereby improving the City's asset and making the Club
more attractive to new members.
D Because of the site's constraints and deficiencies, the course is not likely to be
competitive with the newer municipal and public access courses in the area.
However, it can continue to serve a limited membership and be open for a
limited amount of public playas it has for the past several years.
D Since the City owns only the golf course portion of the property the City
would have to acquire the seven acres it sold to the Club in 1950 and make
improvements to or replace the clubhouse and maintenance buildings.
D Assuming the City and the Club could come to an agreement on the value of
the Club property, the acquisition cost plus the cost of making building and
course improvements can be as much as it would cost to build a new course.
Management Recommendation - Clearwater Golf Pork
NGF Consulting recommends the City issue a Request for Proposals to lease this
property to individuals or management firms with extensive experience in operat-
ing public access courses. Our reasons for this recommendation are almost
identical to those reasons cited for leasing the Clearwater Country Club to its
members.
City of Clearwater Golf Course AnalysIs
83
,..!!GF
~NSULTING
We also recommend that the lease include requirements to upgrade the golf
course features, improve the maintenance facilities and install a new irrigation
system. In return for a long-term lease, the City should receive annual rent and
real estate taxes on the subject property.
City of Clearwater Golf Course Analysis
84
,.!!GF
~NSULTING
Appendix Materials
City of Clearwater Golf Course Analysis
85
Financial Models
Projected Performance Levels For The Clearwater Country Club Golf Course
Annual Rounds YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
18-Hole Regular 30,000 30,900 31,900 32,800 33,800
18-Hole Discount 4,800 4,900 5,100 5,200 5,400
9-Hole Regular 4,200 4,300 4,500 4,600 4,700
9-Hole Discount 1,800 1,900 1,900 2,000 2,000
Twilight Regular 10,200 10,500 10,800 11,200 11,500
Twilight Discount 1,200 1,200 1,300 1,300 1,400
Coupon 7,800 8,000 8,300 8,500 8,800
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
PROJECTED GREEN FEES (Average Annual Fee)
18-Hole Regular $18.00 $18.50 $19.00 $19.50 $20.00
18-Hole Discount Residents $14.00 $14.50 $15.00 $15.50 $16.00
9-Hole Regular $10.00 $14.25 $14.50 $14.75 $15.00
9-Hole Discount Residents $7.00 $10.25 $10.50 $10.75 $11.00
Twilight Regular $10.00 $7.50 $8.00 $8.50 $9.00
Twilight Discount Residents $8.00 $10.25 $10.50 $10.75 $11.00
Coupon $10.00 $8.50 $9.00 $9.50 $10.00
PROJECTED CART FEES
18-Hole Cart Fee (per person) $10.00 $10.25 $10.50 $10.75 $11.00
9-Hole Cart Fee (per person) $6.50 $6.75 $7.00 $7.25 $7.50
PROJECTED DEPARTMENTAL REVENUES PER ROUND
Pro Shop Sales $1.50 $1.75 $2.00 $2.25 $2.50
Food & Bewrage Snack Bar Sales $2.50 $2.75 $3.00 $3.25 $3.50
Driving Range Sales Per Round of Golf $1.50 $1.75 $2.00 $2.25 $2.50
REVENUES:
Green Fee Rewnue $851,400 $882,500 $942,550 $999,475 $1,061,800
Golf Cart Rewnue $252,600 $397,100 $421,500 $444,100 $469,500
Pro Shop Rewnue $90,000 $83,700 $98,900 $114,400 $130,900
Food & Bewrage Rewnue $150,000 $61,100 $68,900 $76,900 $85,100
Driving Range Rewnue $90,000 $108,200 $127,400 $147,600 $169,000
TOTAL PROJECTED REVENUE $1,434,000 $1,532,600 $1,659,250 $1,782,475 $1,916,300
Less: Cost of Sales
Pro Shop $76,500 $71,100 $84,100 $97,200 $111,300
Food & Bewrage $90,000 $36,700 $41,300 $46,100 $51,100
Driving Range $22,500 $27,100 $31,900 $36,900 $42,300
TOTAL COST OF SALES $189,000 $134,900 $157,300 $180,200 $204,700
ADJUSTED GROSS INCOME $1,245,000 $1,397,700 $1,502,000 $1,602,300 $1,711,600
EXPENSES:
Administratiw and General $540,200 $559,100 $578,700 $599,000 $620,000
Course Maintenance $702,500 $727,100 $752,500 $778,800 $806,100
Golf Cart Lease $60,000 $78,000 $78,000 $78,000 $78,000
TOTAL PROJECTED EXPENSES $1,302,700 $1,364,200 $1,409,200 $1,455,800 $1,504,100
Capitallmprowment Reserw lQ $46.000 $49.800 $53.500 $57.500
NET OPERATING INCOME ($57,700) ($12,500) $43,000 $93,000 $150,000
Net Operating Margin -4% -1% 3% 5% 8%
ESTIMATED AMOUNT OF SUPPORTABLE DEBT $1,570,000
Based on Year 5 NOI and debt cowrage ratio of 1.25
OPERATIONAL BREAKEVEN ANALYSIS
Year 1 Year 2 Year 3 Year 4 Year 5
Total Projected Expenses (Including Cost of Sales) $1,491,700 $1,499,100 $1,566,500 $1,636,000 $1,708,800
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
Average Expense Per Round $24.86 $24.26 $24.59 $24.94 $25.28
Total Projected Revenues $1,434,000 $1,532,600 $1,659,250 $1,782,475 $1,916,300
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
Projected Revenue Per Round $23.90 $24.80 $26.05 $27.17 $28.35
Total Projected Expenses $1,491,700 $1,499,100 $1,566,500 $1,636,000 $1,708,800
Projected Revenue Per Round $23.90 $24.80 $26.05 $27.17 $28.35
Breakeven Rounds Required 62,414 60,449 60,139 60,209 60,280
BREAK EVEN ANAL. YSIS
Total Projected Expenses (Including Cost of Sales) $1,491,700 $1,499,100 $1,566,500 $1,636,000 $1,708,800
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
Average Expense Per Round $24.86 $24.26 $24.59 $24.94 $25.28
Total Projected Revenues $1,434,000 $1,532,600 $1,659,250 $1,782,475 $1,916,300
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
Projected Revenue Per Round $23.90 $24.80 $26.05 $27.17 $28.35
Net Revenue Per Round ($0.96) $0.54 $1.46 $2.23 $3.07
Total Projected Expenses (Including Cost of Sales & Debt Service) $2,234,254 $2,241,654 $2,309,054 $2,378,554 $2,451,354
Projected Revenue Per Round $23.90 $24.80 $26.05 $27.17 $28.35
Breakeven Rounds Required 93,483 90,392 88,647 87,537 86,475
Cart lease Payment Schedule
Number of Carts 60 60 60 60 60
lease Rate Per Cart $1,000 $1,000 $1,000 $1,000 $1,000
Cart lease Payment $60,000 $60,000 $60,000 $60,000 $60,000
Maintenance Per Cart $0 $300 $300 $300 $300
Cart Maintenance Total $0 $18,000 $18,000 $18,000 $18,000
TOTAL $60,000 $78,000 $78,000 $78,000 $78,000
Projected Perfonnance Levels For The Clearwater Golf Park Golf Course
Annual Rounds YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
16-Hole Regular 30,000 30,900 31,900 32,800 33,800
16-Hole Discount 4,800 4,900 5,100 5,200 5,400
9-Hole Regular 4,200 4,300 4,500 4,600 4,700
9-Hole Discount 1,800 1,900 1,900 2,000 2,000
Twilight Regular 10,200 10,500 10,800 11,200 11,500
Twilight Discount 1,200 1,200 1,300 1,300 1,400
Coupon 7,800 8,000 8,300 8,500 8,800
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
PROJECTED GREEN FEES (Average Annual Fee)
16-Hole Regular $14.00 $14.50 $15.00 $15.50 $16.00
16-Hole Discount Residents $10.00 $10.50 $11.00 $11.50 $12.00
9-Hole Regular $8.00 $8.25 $8.50 $8.75 $9.00
9-Hole Discount Residents $6.00 $6.25 $6.50 $6.75 $7.00
Twilight Regular $7.00 $7.50 $8.00 $8.50 $9.00
Twilight Discount Residents $5.00 $5.25 $5.50 $5.75 $6.00
Coupon $8.00 $8.50 $9.00 $9.50 $10.00
PROJECTED CART FEES
16-Hole Cart Fee (per person) $8.00 $8.25 $8.50 $8.75 $9.00
9-Hole Cart Fee (per person) $5.00 $5.25 $5.50 $5.75 $6.00
PROJECTED DEPARTMENTAL REVENUES PER ROUND
Pro Shop Sales $1.00 $1.25 $1.50 $1.75 $2.00
Food & Beverage Snack Bar Sales $1.50 $1.75 $2.00 $2.25 $2.50
Driving Range Sales Per Round of Golf $0.75 $1.00 $1.25 $1.50 $1.75
REVENUES:
Green Fee Revenue $652,200 $699,900 $753,450 $805,375 $861,800
Golf Cart Revenue $200,900 $213,600 $228,100 $241,900 $382,800
Pro Shop Revenue $60,000 $59,800 $74,200 $89,000 $104,700
Food & Beverage Revenue $90,000 $38,900 $45,900 $53,200 $60,800
Driving Range Revenue $45,000 $61,800 $79,600 $98,400 $118,300
TOTAL PROJECTED REVENUE $1,048,100 $1,074,000 $1,181,250 $1,287,875 $1,528,400
Less: Cost of Sales
Pro Shop $51,000 $50,800 $63,100 $75,700 $89,000
Food & Beverage $54,000 $23,300 $27,500 $31,900 $36,500
Driving Range $11,300 $15,500 $19,900 $24,600 $29,600
TOTAL COST OF SALES $116,300 $89,600 $110,500 $132,200 $155,100
ADJUSTED GROSS INCOME $931,800 $984,400 $1,070,800 $1,155,700 $1,373,300
EXPENSES:
Administrative and General $480,200 $497,000 $514,400 $532,400 $551,000
Course Maintenance $516,200 $534,300 $553,000 $572,400 $592,400
Golf Cart Lease $40,000 $52,000 $52,000 $52,000 $52,000
TOTAL PROJECTED EXPENSES $1,036,400 $1,083,300 $1,119,400 $1,156,800 $1,195,400
Capital Improvement Reserve IQ $32.200 $35.400 $38.600 $45.900
NET OPERATING INCOME ($104,600) ($131,100) ($84,000) ($39,700) $132,000
Net Operating Margin -10% -12% -7% -3% 9%
ESTIMATED AMOUNT OF SUPPORTABLE DEBT $1,380,000
Based on Year 5 NOI and debt coverage ratio of 1.25
OPERATIONAL BREAKEVEN ANALYSIS
Year 1 Year 2 Year 3 Year4 Year 5
Total Projected Expenses (Including Cost of Sales) $1,152,700 $1,172,900 $1,229,900 $1,289,000 $1,350,500
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
Average Expense Per Round $19.21 $18.98 $19.31 $19.65 $19.98
Total Projected Revenues $1,048,100 $1,074,000 $1,181,250 $1,287,875 $1,528,400
Total Projected Rounds 60,000 61,800 63,700 65,600 67,600
Projected Revenue Per Round $17 .47 $17.38 $18.54 $19.63 $22.61
Total Projected Expenses $1,152,700 $1,172,900 $1,229,900 $1,289,000 $1,350,500
Projected Revenue Per Round $17.47 $17.38 $18.54 $19.63 $22.61
Breakeven Rounds Required 65,988 67,491 66,323 65,657 59,732
Cart Lease Payment Schedule
Number of Carts 40 40 40 40 40
Lease Rate Per Cart $1,000 $1,000 $1,000 $1,000 $1,000
Cart Lease Payment $40,000 $40,000 $40,000 $40,000 $40,000
Maintenance Per Cart $0 $300 $300 $300 $300
Cart Maintenance Total $0 $12,000 $12,000 $12,000 $12,000
TOTAL $40,000 $52,000 $52,000 $52,000 $52,000
Predictive Models
Age Model-Primary Market
Avg.
Golf Public Est. Total
Participation 1998 Potential Rounds Demand
Ages Rate Population Golfers Played. (1998)
5-14 Years 5.4% 10,765 582 23.1 13,437
15-19 5.6% 5,135 288 7.3 2,117
20-24 11.6% 4,786 557 13.1 7,325
25-34 11.6% 11,058 1,281 11.3 14,494
35-44 11.0% 14,364 1,574 12.5 19,702
45-64 11.8% 22,382 2,637 45.3 119,509
65-74 14.0% 11,272 1,578 51.6 81 ,489
75-84 8.9% 9,248 824 51.6 42,518
85+ 5.0% 4203 211 38.6 8.160
93,213 9,532 308,752
Avg.
Golf Public Est. Total
Partici pation 2003 Potential Rounds Demand
Ages Rate Population Golfers Played. (2003)
5-14 Years 5.4% 10,603 574 23.1 13,235
15-19 5.6% 5,130 288 7.3 2,115
20-24 11.6% 5,070 590 13.1 7,759
25-34 11.6% 9,759 1,130 11.3 12,792
35-44 11.0% 13,339 1,462 12.5 18,296
45-64 11.8% 25,214 2,970 45.3 134,631
65-74 14.0% 10,445 1,462 51.6 75,510
75-84 8.9% 9,505 847 51.6 43,700
85+ 5.0% 4682 236 38.6 9.090
93,747 9,559 317,128
Age Model-Secondary Market
Golf Avg.Public Est. Total
Participation 1998 Potential Rounds Demand
Ages Rate Population Golfers Played* (1998)
5-14 Years 5.4% 92,881 5,025 23.1 115,939
15-19 5.6% 41,554 2,331 7.3 17,130
20-24 11.6% 37,575 4,374 13.1 57,506
25-34 11.6% 101,125 11,710 11.3 132,549
35-44 11.0% 126,009 13,811 12.5 172,839
45-64 11.8% 185,449 21,846 45.3 990,209
65-74 14.0% 99,211 13,890 51.6 717,228
75-84 8.9% 77,258 6,884 51.6 355,198
85+ 5.0% 28.061 1.411 38.6 54.483
789,123 81,281 2,613,080
Golf Avg.Public Est. Total
Participation 2003 Potential Rounds Demand
Ages Rate Population Golfers Played* (2003)
5-14 Years 5.4% 93,548 5,061 23.1 116,771
15-19 5.6% 42,576 2,389 7.3 17,551
20-24 11.6% 40,709 4,739 13.1 62,302
25-34 11.6% 91,510 10,597 11.3 119,946
35-44 11.0% 119,933 13,145 12.5 164,505
45-64 11.8% 214,620 25,282 45.3 1,145,968
65-74 14.0% 94,272 13,198 51.6 681,522
75-84 8.9% 81,212 7,236 51.6 373,377
85+ 5.0% 32.144 1.617 38.6 62.410
810,524 83,263 2,744,353
Income Model-Primary Market
Avg.
Golf Public Est. Total
Household Participation 1998 Potential Rounds Demand
Incomes Rate Population Golfers Played* (1998)
< $15,000 3.6% 15,846 572 27.6 15,776
$15,000-$24,999 6.2% 16,499 1,028 27.9 28,662
$25,000-$34,999 8.5% 15,380 1,306 29.4 38,371
$35,000-$49,999 13.2% 17,151 2,261 35.8 80,910
$50,000-$74,999 15.9% 13,702 2,172 22.8 49,475
$75,000-$99,999 12.7% 6,618 840 25.8 21,631
$100.000 + 27.3% 8.016 2.190 58.3 127.787
1998 Totals 93,214 10,368 362,611
Avg.
Golf Public Est. Total
Household Participation 2003 Potential Rounds Demand
Incomes Rate Population Golfers Played* (2003)
< $15,000 3.6% 12,375 447 27.6 12,320
$15,000-$24,999 6.2% 14,906 929 27.9 25,895
$25,000-$34,999 8.5% 14,625 1,242 29.4 36,486
$35,000-$49,999 13.2% 17,250 2,274 35.8 81,374
$50,000-$74,999 15.9% 15,844 2,511 22.8 57,205
$75,000-$99,999 12.7% 7,687 976 25.8 25,126
$100.000 + 27.3% 11.062 3.022 58.3 176.342
2003 Totals 93,749 11,400 414,748
Income Model-Secondary Market
Golf Avg.Public
Household Participation 1998 Potential Rounds Est. Total
Incomes Rate Population Golfers Played* Demand (1998)
< $15,000 3.6% 118,368 4,273 27.6 117,839
$15,000-$24,999 6.2% 137,307 8,554 27.9 238,535
$25,000-$34,999 8.5% 134,151 11,389 29.4 334,678
$35,000-$49,999 13.2% 153,090 20,177 35.8 722,184
$50,000-$74,999 15.9% 133,362 21,138 22.8 481,520
$75,000-$99,999 12.7% 55,239 7,010 25.8 180,544
$100.000 + 27.3% 57.606 15,738 58.3 918,278
1998 Totals 789,123 88,280 2,993,578
Golf Avg.Public
Household Participation 2003 Potential Rounds Est. Total
Incomes Rate Population Golfers Played* Demand (2003)
< $15,000 3.6% 94,831 3,423 27.6 94,407
$15,000-$24,999 6.2% 121,579 7,574 27.9 211,211
$25,000-$34,999 8.5% 128,063 10,873 29.4 319,489
$35,000-$49,999 13.2% 158,863 20,938 35.8 749,417
$50,000-$74,999 15.9% 151,568 24,024 22.8 547,256
$75,000-$99,999 12.7% 72,137 9,154 25.8 235,774
$100.000 + 27.3% 83.484 22,808 58.3 1,330,791
2003 Totals 810,524 98,794 3,488,345
Competitive Golf Course Profiles
Airco Golf Course
3650 Roosevelt Blvd.
Clearwater, FL 33762
COURSE INFO: Architect: Chic Adams
Year Course Opened: 1962
Other Amenities: Clubhouse, drivin
Rounds played in 1998 52,000
Number of Holes: R ulation: 18
Facility Fees:
Type of Facility: Municipal Facility
Executive: 0
Par 3: 0
1998
Course Statistics:
Blue:
White:
Red:
Yards
6635
6088
4773
Slope
114
109
97
Rating
70.1
67.6
65.7
Par
72
72
71
Notes: 37 year-old county facility that appears to be in need of improvements. The course looks nice but
it appears that the course operators have cut down on course maintenance. The course is active with
52,000 rounds played and, unlike the other courses, Airco cut its peak winter green fees for 1998.
Bardmoor Golf & Tennis Club
8000 Cumberland Road
Largo, FL 33777
COURSE INFO: Architect: William Diddel
Year Course Opened: 1974
Other Amenities: Clubhouse, drivin
Rounds played in 1998 45,000
Number of Holes: R ulation: 18
Facility Fees:
Type of Facility: Semi-private facility
reen.
Executive: 0
Par 3: 0
1998 69/59 38
Course Statistics: Yards Slope
Black: 7000 129
Gold: 6564 127
Co r: 5550 118
Rating
74.4
72.2
71.8
Par
72
72
72
Notes: Bardmoor is a top-quality facility, voted "Tampa Bay's Favorite Public Course," that can command
the highest fees in the area. There is a $10 discount for Florida residents and a very late twilight rate.
Bay Pointe Golf Course
9399 Commodore Drive
Seminole, FI 33776
COURSE INFO: Architect:
Year Course Opened: 1968 Type of Facility: Semi-private facility
Other Amenities: Clubhouse, pro shop, puttina areen.
Rounds played in 1998 69.000
Number of Holes: Regulation: Executive: 18 Par 3: 0
Facility Fees: Peak Winter Peak Summer Cart Fee
(w/cart) (w1cart)
1998 23/19 21/17
Course Statistics: Yards Slope Rating Par
Blue:
White: 3,167 61
Red: 2,384 61
Notes: This executive course is located next to the Tamarac retirement community.
Belleview Biltmore Resort
1501 Indian Rocks Road
Belleair, FL 34616
COURSE INFO: Architect: Don Ross
Year Course Opened: 1925
Other Amenities: Clubhouse, drivin
Rounds played in 1998 44,000
Number of Holes: R ulation: 18
Facility Fees:
Type of FaCIlity: Resort facility
reen.
Executive: 0
Par 3: 0
1998
55
Course Statistics: Yards Slope Rating Par
Blue: 6655 118 70.7 72
White: 6309 115 69.1 72
Red: 5703 119 72.1 74
Notes: Traditionally a member-only club. the Biltmore is a higher-end facility that now targets the high-
end public golfer. The course's 150 members play approximately one-third of the annual rounds at the
facility. Similar to Bardmoor, this Club offers few discounts to stimulate play.
Chi Chi Rodriguez Golf Club
3030 N. McMullen booth Road
Clearwater, FL 33761
COURSE INFO: Architect: Dennis Griffiths
Year Course Opened: 1989
Other Amenities: Clubhouse, drivin
Rounds played in 1998 67,000
Number of Holes: R ulation: 18
Facility Fees:
Type of Facility: Municipal facility
Executive: 0
Par 3: 0
1998 39/35 26
Course Statistics: Yards Slope
Blue: 5454 118
White: 4796 114
Red: 3929 110
Rating
67.6
64.6
64.0
Par
69
69
71
Notes: The newest public facility in Pinellas County, this course is now one of the busiest, routinely
playing more than 65,000 rounds per year. The course actively recruits the junior market and its May-
December Playcard attracted $70,000 in sales this year.
Countryside Executive Golf Course
2506 Countryside Blvd.
Clearwater, FL 33763
COURSE INFO: Architect:
Year Course Opened: 1978 Type of Facility: OF facility
Other Amenities: Clubhouse, restaurant, pro shop, chiooina and outting areen.
Rounds played in 1998 59,000
Number of Holes: Reaulation: Executive: 18 Par 3: 0
Facility Fees: Peak Winter Peak Summer
(w/cart) (w1cart)
1998 25 15
Course Statistics: Yards Slope Rating Par
Blue: 3362 58
White: 2738 58
Red: 2395 58
Notes: A primary competitor to Clearwater Golf Park, Countryside Executive is a much nicer course.
Last year the rounds played activity fell from 70,000 to just under 60,000 due primarily to problems
related to the Canadian Tourist market.
Countryway Golf Club
11111 Waters Ave
Tam a, FL 33635
COURSE INFO: Architect:
Year Course Opened: 1990
Other Amenities: Clubhouse,
Rounds played in 1998 67,000
Number of Holes: R utation:
Facility Fees:
Type of Facility: Semi-private facility
Executive: 18
Par 3: 0
1998
23
17
3471
3108
2680
Slope
92
86
83
Rating
56.6
54.9
54.9
Par
Course Statistics:
Blue:
White:
Red:
Yards
61
61
61
The Dunedin Country Club
1050 Palm Blvd.
Dunedin, FL 34698
COURSE INFO: Architect: Don Ross
Year Course Opened: 1926
Type of Facility: Semi-private facility
Other Amenities: Clubhouse, drivin
Rounds played in 1998 70,000
Number of Holes: R ulation: 18
Facility Fees:
Executive: 0
Par 3: 0
1998
45
24
Course Statistics:
Blue:
White:
Red:
Yards
6565
6245
5726
Slope
125
121
125
Rating
71.5
69.9
73.1
Par
72
72
73
Notes: This course provides strong competition to Clearwater Country Club. It offers more competitive
rates and therefore attracts more rounds of golf on an annual basis.
East Bay Golf Club
702 Country Club Drive
Lar 0, FL 33771
COURSE INFO: Architect: William Mitchell
Year Course Opened: 1971
Other Amenities: Clubhouse, drivin
Rounds played in 1998 110,000
Number of Holes: R ulation: 18
Facility Fees:
Type of Facility: Semi-private facility
reen.
Executive: 0
Par 3: 18
1998 42 32
Course Statistics: Yards Slope
Blue: 6451 122
White: 5967 116
Red: 5286 119
Rating
71.2
68.8
70.7
Par
71
71
71
Notes: The regulation course accommodates about 60,000 rounds annually while the Par 3 course
attracts 50,000 rounds per year.
Glen Oaks Golf Course
1345 Court Street
Clearwater, FL 33756
COURSE INFO: Architect: Hans Schmeisser
Year Course Opened: 1969
Other Amenities: Clubhouse,
Rounds played in 1998 30,000
Number of Holes: R ulation:
Type of Facility: Municipal facility
reen.
Executive: 0
Par 3: 18
Facility Fees:
1998 12 10
Course Statistics: Yards Slope Rating Par
Blue:
Red: 1929 54
White: 1929 54
Largo Municipal Golf Course
12500131 Street N.
Lar 0, FL 33n 4
COURSE INFO: Architect:
Year Course Opened: 1969
Other Amenities: Clubhouse,
Rounds played in 1998 81,000
Number of Holes: R ulation:
Facility Fees:
Type of Facility: Municipal facility
Executive: 18
Par 3: 0
1998
25
23
Course Statistics:
Blue:
White:
Red:
Yards
Slope
Rating
Par
3254
3034
62
64
Mainlands Golf Course
9445 Mainlands Blvd. W
Pinellas Park, FL 33782
COURSE INFO: Architect:
Year Course Opened: 1969
Other Amenities: Clubhouse,
Rounds played in 1998 85,000
Number of Holes: R ulation:
Facility Fees:
Type of Facility: Daily Fee facility
Executive: 18
Par 3: 0
1998
23
17
Course Statistics:
Blue:
White:
Red:
Yards
Slope
Rating
Par
4190
3458
63
63
Mangrove Bay Golf Course
875 62 Ave. NE
St. Petersbur , FL 33702
COURSE INFO: Architect: Bill Amick
Year Course Opened: 1977
Other Amenities: Clubhouse, drivin
Rounds played in 1998 90,000
Number of Holes: R ulation: 18
Facility Fees:
Type of Facility: Municipal facility
reen.
Executive: 0
Par 3: 9
1998 34 21
Course Statistics: Yards Slope
Blue: 6779 120
White: 6113 113
Red: 5204 112
Rating
71.5
68.4
68.5
Par
72
72
72
Notes: This course offers what is probably the best golf value in Pinellas County. The City renovated the
championship course in 1998 and installed new tees, greens, and an irrigation system. St. Petersburg
residents receive a 30% discount and account for approximately 10 to 15% of overall play. Mangrove
Bay is one of the busiest courses in Pinellas County.
Pinecrest Golf Course
1200 8th Ave. SW
Lar 0, FL 33770
COURSE INFO: Architect:
Year Course Opened: 1968
Other Amenities: Clubhouse,
Rounds played in 1998 42,000
Number of Holes: R ulation:
Facility Fees:
Type of Facility: Daily Fee facility
reen.
Executive: 18
Par 3: 0
1998 22
Course Statistics: Yards
Blue:
White: 2198
Red: 2035
20
Slope
Rating
Par
55
56
51. Andrews Links Golf Course
620 Palm Blvd.
Dunedin, FL 34698
COURSE INFO: Architect:
Year Course Opened: 1960
Other Amenities: Clubhouse, drivin
Rounds played in 1998 30,000
Number of Holes: R ulation:
Facility Fees:
1998 22
Course Statistics: Yards
Blue:
White: 2223
Red: 2097
Type of Facility: Daily Fee facility
15
Slope
Executive: 0
Rating
reen.
Par 3: 18
Par
54
58
Tides Golf Club
1183266 Ave. N
Seminole, FL 33772
COURSE INFO: Architect: David Gill
Year Course Opened: 1972 Type of Facility: Semi-private facility
Other Amenities: Clubhouse, oro shoo, puttinQ Qreen.
Rounds played in 1998 90,000
Number of Holes: Reaulation: 18 Executive: 0 Par 3: 0
Facility Fees: Peak Winter Peak Summer
(w/cart) (w/cart)
1998 48 25
Course Statistics: Yards Slope Rating Par
Blue: 6329 118 70.5 72
White: 6013 114 69.0 72
Red: 5698 120 72.5 74
Notes: Tides is one of the most active 18-hole courses in Florida, with as many as 800 members playing
70% of the annual rounds played. Due to the high membership numbers, it is difficult for the facility to
generate much in the way of high-fee public rounds in the busy season.
Westchase Golf Club
10217 Radcliffe Dr.
Tam a, FL 33626
COURSE INFO: Architect: Lloyd Clifton
Year Course Opened: 1992
Type of Facility: Daily Fee facility
Other Amenities: Clubhouse, drivin
Rounds played in 1998 60,000
Number of Holes: R ulation: 18 Executive: 0 Par 3: 0
Facility Fees:
1998 55 50
Course Statistics: Yards Slope Rating Par
Blue: 6710 130 71.8 72
White: 6233 123 69.2 72
Red: 5205 121 69.1 72
Notes: This course, built through a residential community, offers residents a $10 discount off of greens
fees. Westchase reports that approximately 85% of all rounds played are with cart.