Since 2002 the number of golfers has dropped by 24%. The year 2013 alone saw a drop in the number of golfers by 1.1 million. There seems to be no way to stop the slide in the numbers but attempts are being made to no avail.
We are losing a tremendous amount every year operating the course but we have another problem. We sold the lots as golf course lots so we are locked into the agreement. We have tried many things to stem the losses but we still lose $150,000 to $200,000 per year. What can we do?
Here is a thought I brought up during a board workshop that was open to the public. A workshop is when ideas can be kicked around that are just off the cuff and many die there so again this was off the top of my head.
What would happen if we were to project our yearly losses then approach the Savannah Oaks property owners with the possibility of turning the golf course into a park/natural area and rebating the projected losses to the P.O.s on a yearly basis for an agreed upon number of years? There are something like 45 lots there. Divide $150,000 by 45 and it is a little over $3,300 per year Five years of $3,300 rebates would cost us $742,500.00 but that number would be offset by the end of Savannah Oaks losses. This would lower the lot cost base to the property owners by about $16,500.
Now the sticking point. Due to our sales as golf course lots we must have unanimous agreement from the property owners to avoid any litigation. I truly don't know what the reaction would be but this would take a lot of leg work to accomplish and I frankly do not have the necessary time to pursue the idea.
There are a lot of nice golf courses very close to Candlewick so there would still be many playing opportunities. The thought was tabled at the meeting and may never come up again but it is an option in a losing situation where we are with few feasible options.
As always, anyone wanting to comment privately to me or for this blog just drop me an email. I would be interested in your thoughts.
Ken