Staying ahead in the municipal development game - golf course development - Cover Story

In today's golf marketplace, municipal officials are racing to stay ahead of the curve in the golf course development game. From coast to coast, these officials, including parks and recreation managers, are trying to balance the demands of golfers who expect more affordable and better quality courses, with decreasing fiscal budgets. Unfortunately, municipalities are faced with the predicament of becoming golf course developers overnight, even though it is not their area of expertise. And, confronted with an often limited background in golf course construction while also dealing with finite financial and personnel resources, municipal officials cannot reasonably be expected to know how to construct a golf course or how to select qualified professionals to build the course.

Coordinating the development of a municipal golf course today is akin to doing a high-wire act without a safety net, according to one city official. Facing an almost impossible situation without much room for error is a daunting, unwelcome prospect for those facing this situation. But don't feel bad, you're certainly not alone.

One of the best ways for a municipality to successfully develop a profitable golf course without sacrificing quality is to use a team of outside, independent experts to oversee the entire process. Investing in a group that recognizes the constraints municipalities face and that can assist them in assembling the proper team to handle development is probably the best insurance policy a city can get in order to help prevent cost-overruns and delays. By eliminating the trial and error process of development through the help of experts, municipal staff will ultimately become better educated and be better able to manage. A development advisor acts as a member of the municipality's team, assisting them in making the right selections and decisions at each step of the development process.

Although there are many qualified service providers who contract with the municipality to deliver a specific service--e.g. design or engineering--in each instance the municipality is left to its own devices to make the right selection or to properly integrate that service into the overall process. One of the objectives of The Renizon Corporation, a Denver-based golf course development, management and consulting company, is to provide municipal officials with development advisory consulting services in order to assist them in selecting the proper organizations to handle each phase of development.

The municipal development process typically involves one individual or sometimes a group of people who have an idea to build a golf course for their community. The parks and recreation manager often leads the way after talking with associates and possibly other individuals in the golf business. After much discussion, the city council or governing body locates the necessary $5,000 to $10,000 to complete a feasibility study. Having typically selected the company with the lowest bid, the city will get back an extensive report, which is full of numbers often telling the municipality that a golf course is feasible and that the community will reap profits from course revenues. This will usually bolster the city's resolve and take the process to the next level.

Upon receiving the go-ahead from the city council based on feasibility figures, the parks and recreation manager will hire an architect, who will lead the way in moving the project along. Simultaneously, staff will consider financing alternatives for the city, complete final design plans, bid the project and hire a contractor. Often no one looks back until the project is complete and the course is up and running. What could be easier, right?

A key determinate critical to the success of any golf course project is selecting the best site for construction. The selection process is crucial in determining the overall cost of construction and operation. After reviewing the availability of suitable land and determining the best available site, municipal staff then need to decide whether they can construct the type of course they want on that site and whether it will prove to be economically or politically possible. A few examples of selection criteria used to evaluate the proposed site include topography, soil condition, accessibility, drainage, vegetation, water availability and cost, as well as wetlands issues.

The issue of wetlands, for example, and what constitutes wetlands on any given site can easily kill a project if not handled properly by qualified experts. It's an expensive proposition to hire the right expert to complete a wetlands delineation, but the expense for getting unreliable information and not complying with regulations can result in stiff penalties and fines. Also, finding out about wetlands problems after the fact can eventually lead to construction delays, additional cost-overruns and a loss of reputation, if the process becomes embroiled in controversy. Municipalities can take the necessary steps to prevent issues from arising in the initial site suitability stage by using qualified experts who know the territory and can oversee the process. There are numerous golf development projects lying on the floor that died for no other reason than organizers overlooked key issues early on.

Selecting the most qualified architect to design the course and oversee its construction is another important decision that a municipality will make. The eventual choice will have a direct bearing on the project's bottom line and should not be taken lightly. Specialists can assist the municipality by initially reviewing the city's goals and objectives concerning the quality of course they are looking to develop. Does the city want a challenging design with mounding and undulating greens to add to the course's level of difficulty and visual appeal, or do they desire a less-contoured track which will generate more rounds? The organization assisting the city should also discuss the pros and cons of each architect, help prepare and submit a proper Request for Proposal (RFP) and then review the completed proposals. Reviewing and commenting on preliminary and final design documentation, as well as reviewing the construction bid package are all essential elements. Having an expert on board to act as a liaison with the golf course architect will help ensure consistency throughout the process.

First-time developers are often blind to the ramifications of not hiring the correct designer for the facility. Many cities choose an architect for the simple fact that he or she is either well-known throughout the golf industry, has built many local courses in that particular community or is one who is simply able to sell his or her services through a superb presentation in the interview process. All of these individuals may be extremely qualified. However, it is very important for the city to be sure it selects an architect most appropriate for the municipality's project and who will ultimately help it meet its goals and objectives. The decision of which architect to hire will not only affect total construction and maintenance costs, but it will again ultimately affect operating revenues and the course's reputation in the golf community.

Finally, the feasibility, financing and construction stages of the golf course development process each has its own nuances and issues that municipal officials need to weigh carefully. Does the feasibility study really give the municipal staff the figures and corresponding documentation that they need in order to make the correct decision of whether to proceed with a proposed course or not? Choosing the most appropriate form of financing through such alternatives as revenue bonds or a public/private partnership needs to be analyzed for the long-term effects on and corresponding benefits for the municipality and the golf course. Hiring the appropriate contractor to build the course and having the golf course superintendent on board early in the process to monitor each step of construction--from making sure all irrigation piping works to seeing that the greens mix meets specifications--goes a long way in preventing problems from arising later. Finally, deciding at the outset whether or not the city should operate the facility or hire an outside management group gives the city ample time to complete a detailed selection process.

It is sometimes difficult for municipalities and parks and recreation officials in charge of golf developments to fully appreciate that each decision made in the developmental process will undoubtedly have a corresponding effect on the stage that follows. And, why should these individuals be expected to be versed in development issues when it's not necessarily their area of expertise? To begin with, when a municipality is considering the construction of a golf course, it is usually their first and possibly only attempt at undertaking such a challenge. The development process and every aspect it entails has become extremely specialized today, and it is not an easy process for the municipal project coordinator and his or her staff to handle alone. There are too many examples of where cost-overruns or delays occur in the development process because the municipal official in charge gets in over his or her head without realizing it and is not able to monitor each step of the process.

Another difficult situation municipalities face is recognizing when problems are imminent and taking preventive measures to rectify, the situation before it manifests itself. Sometimes, municipal coordinators mistakenly attempt to handle the entire process by themselves. Unfortunately, this attitude perpetuates a vicious cycle where the same mistakes are repeated time and again until the municipality either pays too much for an inferior product or the project ends up dying after money has already been invested. In an effort to assist the municipality in specific aspects of the developmental process, some recreation officials will turn to an individual consultant who may be a friend or close confidant in the golf business. This person may know about a few areas related to development, but he or she cannot be expected to have the expertise that a team of qualified, independent experts can.

Leaving the success of a multimillion dollar golf course development up to chance or fate is a risky option. Being able to take a step back and get a better idea of what the development forest looks, like before plunging in can hopefully prevent municipalities from experiencing the same mistakes over and over. Says Renizon president Jeff Witt, "We're making an effort to level the playing field in municipal golf course development and help municipalities more effectively and efficiently manage the development process. It's frustrating to see situations where money is needlessly wasted on problems that could and should be prevented in the first place. Municipalities must increase the effectiveness of their development dollars."

A municipal golf course should be s positive attribute for a community. Besides being an obvious additional recreational amenity, a successful facility should also provide revenues to help fund additional municipal recreational programs, as well as create a community centerpiece. Unfortunately, building a course is often a one shot deal, so the learning curve is quite steep. Municipal officials, including parks and recreation directors, cannot prevent every problem from occurring, but they can certainly employ preventive measures in order to avoid future problems. Investing a small amount of money up front in order to realize considerable savings in the long run will help the municipality control costs, as well as give the parks and recreation official in charge of the project a greater level of comfort, knowing that he or she has covered all the bases.

For more information on Renizon's consulting services, write to 7be Renizon Corporation, 8000 E Prentice Ave., Suite C-4, Englewood, CO 80111 or call (303) 779-4535.

COPYRIGHT 1993 National Recreation and Park Association
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