golf course management – Syndication Server

This Florida golf course’s fight to stay tax-exempt reached the State Supreme Court. Here’s what happened

Is a municipally owned golf course disqualified from exemption because a management company is used?

In resolving a case that’s taken more turns than a car on a California mountain road, the Florida Supreme Court has weighed in on the side of Gulf Breeze in a years-old legal dispute pitting the city against the Santa Rosa County Property Appraiser’s Office over the tax-exempt status of Pensacola’s Tiger Point Golf Club.

It was in 2016 that Property Appraiser Greg Brown’s office first challenged the exempt status of the golf course.

The course first came into the hands of Gulf Breeze in 2012 when the city purchased it with the primary motivation of using it as a place to dispose of treated wastewater effluent coming from its sewage treatment facility.

It was run as a municipal course until late 2015 and enjoyed government tax-exempt status unchallenged for three years.

But after the city brought on a private for-profit company called IGC to manage the golf course and its amenities − which included a restaurant − questions arose over whether the agreement amounted to a lease, and in 2016 the Property Appraiser sent a tax bill.

The city questioned the action and took its case to a Value Adjustment Board, which reversed the exemption denial, finding the agreement between Gulf Breeze and IGC was a “management contract” as opposed to a lease. The Property Appraiser’s Office sought review by bringing an action in Circuit Court.

The Property Appraiser also denied the city’s application for exemption for the golf course in 2017. In doing so, it expanded its arguments for denial in part by arguing the property was being used as a “governmental proprietary function” rather than a “governmental-governmental function,” the Supreme Court’s summary of court events said.

In the consolidated cases, the Circuit Court granted final summary judgment in favor of the city, and agreed in its findings with the VAB, holding the agreement with IGC was a management agreement and not a lease. It ruled the 2016 and 2017 exemptions were valid.

The Property Appraiser appealed the Circuit Court’s decision and in 2022, the First District Court of Appeal sided with his office. It also posed a certified question for the Supreme Court to answer.

“Is a city’s public golf course still being ‘used exclusively by it for municipal or public purposes,’ so that it remains tax exempt … if the city turns the course and its appurtenant facilities over to a private business to operate and manage for the business’s own profit or loss in return for an annual fee that the business pays to the city for that privilege,” the question read.

The question was certified as “one of great public importance,” meaning the high court’s answer could have legal ramifications for the entire state.

Before providing their answer, the Supreme Court justices decided to rhetorically rephrase the Appeals Court question.

“Based on this line of analysis, we rephrase the certified question as follows,” its ruling read, “Is a municipally owned golf course property over which the municipality exercises extensive control disqualified from exemption (based on statute) because a management company used by the municipality in the operation of the property is compensated not by a fixed fee but based on a formula tied to the difference between revenue and expenses?” the court inquired.

“We answer this question in the negative,” justices said in response to their own inquiry.

The court ruled that Tiger Point Golf Course has historically been used exclusively by the city, and therefore its ad valorem tax exemption under the Florida Constitution for certain municipally owned property stood even after the city entered the management agreement with IGC.

It did so because Gulf Breeze “retained and exercised extensive control over the golf course property and the management company’s operation of the property” and the formula-based compensation by which the city collects some of the annual revenues of Tiger Point Golf Course did not defeat the city’s ad valorem exemption, the Supreme Court said.

Georgia golf courses (even those not named Augusta National) are enhancing wildlife habitats

“Our goal is to help people, especially non-golfers, to see the golf course as more than just a golf course.”

In spring of 2023, the University of Georgia Golf Course was designated as an Audubon Cooperative Sanctuary through the Audubon Cooperative Sanctuary Program for Golf Courses. Extra care is taken into account for upkeep in an effort to run in an environmentally friendly way.

“It takes a lot to maintain golf courses,” said Scott Griffith, associate director of agronomy at the University of Georgia golf course. “And we have to maintain them on a daily basis. There are a lot of misconceptions regarding fertilizers. If the grass is growing too fast, that creates more work for us. It creates a negative situation not only on our staff and our customers but also our budgets. Slow-release fertilizers are used judiciously.”

The Audubon Cooperative Sanctuary Program for golf is a certification program that helps golf courses protect the environment. The goal is to help enhance wildlife habitats and minimize potentially harmful impacts of golf course operations. The program serves an important environmental role worldwide.

“I’ve always been environmentally conscious,” said Griffith. “A lot of the things that were listed in this program we were already doing. For me, it was important, because it represents UGA. Our motto is, ‘Elevate the G’. Anything we can do to elevate the University of Georgia and this is one way for us to do that.”

Frank LaVandera, director of environmental programs for golf with Audubon International, said the organization was founded in 1987 with a clear goal in mind.

“Initially, we received money from the United States Golf Association,” said LaVandera. “At that time the USGA wanted to see if we could change the perspective about golf courses. For many years golf courses may have had a negative connotation. Some people felt that golf courses used a lot of chemicals, water and were bad for the environment.”

LaVandera said the certification process to be designated as an Audubon Cooperative Sanctuary through the Audubon Cooperative Sanctuary Program for Golf Courses has six components.

The components are as follows:

Site Assessment/Environmental Planning
Wildlife and Habitat Management
Chemical Use Reduction and Safety
Water Conservation
Water Quality Management
Outreach and Education

“As the course goes through the environmental plan, we ask questions about water conservation, things they’re doing for chemical reduction,” said LaVandera. “At the end of the environmental plan, the course identifies the things that need to be completed in each of those categories. Once all the categories are approved, we actually come to the course and we do what’s called the certification site visit.”

‘More than just a golf course’

“Our goal is to help people, especially non-golfers, to see the golf course as more than just a golf course. In highly suburbanized and urban areas, golf courses act as a great natural filtration for stormwater that comes onto the course from other areas. A golf course can provide habitat for wildlife.

“A golf course can provide a cooling effect in the summertime. Two blocks away from the golf course is 95 degrees but actually on the golf course because of that turf, it might be six or seven degrees cooler. A course that doesn’t stay open all year can be available for people out walking and those sorts of things.”

LaVandera said more golf courses are moving to a more sustainable way of operating.

“Even if a golf course isn’t in our program, generally, the vast majority of golf courses operate in what I would consider to be a sustainable manner,” he said. “Just about every golf course has a best management plan, which, as the name implies, allows us to document and implement best management practices as it relates to managing the golf course. It also has an environmental component to it.”

This reporting content is supported by a partnership with several funders and Journalism Funding Funding Partners.

Erica Van Buren is the climate change reporter for The Augusta Chronicle, part of the USA TODAY Network. Connect with her at EVanBuren@gannett.com or on X: @EricaVanBuren32.

Course management company Troon keeps growing with second acquisition this week

Troon acquires Applied Golf Management’s and its portfolio of 13 courses in eastern U.S.

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Golf course management company Troon has been busy with acquisitions in recent years, and it shows no sign of slowing down after announcing Thursday it has acquired Applied Golf Management.

The Scottsdale-based Troon also announced this week it will acquire the management or consulting contracts of 18 clubs previously under the Invited (formerly ClubCorp) umbrella.

The New Jersey-based Applied Golf Management’s portfolio includes 13 public-access and private golf facilities in New York, New Jersey and Florida. Among those are St. Petersburg Country Club in Florida, Putnam County Golf Course in New York and Trenton Country Club in New Jersey.

Troon said in a media release that members of the 13 clubs will continue with the same service, and plans are for Applied Golf Management to maintain its office in Millstone Township with all associates remaining in their positions.

“We could not have chosen a better organization than Troon to help carry on what we have built over the past 17 years,” Applied Golf Management founder and president Dave Wasenda said in the media release. “This acquisition closes a great chapter in our company’s history, while beginning an amazing new one for our clients and associates. With Troon’s resources, expertise and growing portfolio of managed properties, it is an exciting time for all of us to become part of the Troon family. We look forward to continued success and contributing to the company’s strong growth.”

Troon – the world’s largest golf and golf-related hospitality management company – has completed 13 acquisitions since 2014, including 11 since 2018. It now manages the equivalent of more than 840 18-hole courses in 45-plus states and more than 30 countries, the company said in the media release.

“Dave Wasenda, for whom I have the utmost respect, and his team have cultivated a superb portfolio of club’s throughout New York, New Jersey and Florida by working hard and developing customized solutions for clients – tenets both companies share,” Troon president and CEO Tim Schantz said in the media release. “With the addition of Applied Golf, we significantly expand our footprint and management capabilities across the Northeast.”

Are greenkeepers a dying breed? The golf industry is keen to increase visibility of this vital role

Old Tom Morris would probably have choked on his own hand scythe with excitement had he been around to witness the advances.

Time marches on. In fact, it marches with such merciless purpose, it just about tramples us into the ground. Take technology, for instance. Some cutting-edge contraption you bought just two or three years ago now looks so old-fangled it may as well be housed in a museum next to such antiquities as the turnspit dog and hand-cranked mangle.

In the world of greenkeeping, meanwhile, things have developed at such a rate, Old Tom Morris, that pioneering golf course custodian of yore, would probably have choked on his own hand scythe with excitement had he been around to witness the advances.

At the sharp end of the industry, far removed from a flock of sheep chomping away at clumps of lush rough, smartphones can control irrigation and sprayers, autonomous mowers can trim merrily away themselves while hidden sensors under greens keep an eye on moisture and nutrients and feed soil data back to a centralized hub. The gee-whiz gadgetry knows no bounds.

“This is a message we are trying to get out there to youngsters,” said Karl Hansell of the British and International Golf Greenkeepers’ Association (BIGGA). “It’s not just about mowing a green. Look at the amount of exciting technology that’s now available. It’s a wonderful industry to be in.”

Europe’s Graeme McDowell takes a selfie with a group of greenkeepers after putting out on the fourth green during a practice round ahead of the 2014 Ryder Cup.

Encouraging a new generation of greenkeepers into this particular industry is one of BIGGA’s key objectives. In an age when everything, from the government, the climate and the cost of living, comes with the word ‘crisis’ attached to it, the greenkeeping business has its own challenges to confront and combat. The startling results from a survey commissioned by BIGGA earlier in the season raised more eyebrows than a cosmetic surgeon and illustrated some of the harsh realities of life at the mower blade.

“Growing anecdotal evidence told us that golf clubs had been struggling to recruit quality staff and we wanted to understand the scale of the challenge,” said Hansell. “We received more than 1,300 responses and the data we gathered was pretty shocking.

“Many – more than a third – said they were actively looking for a job outside the greenkeeping industry. Half told us they were unhappy working in the profession. Is it any wonder that 84 percent told us they struggle to recruit staff?

“For the first time, the survey results presented us with hard data that we could present to the wider golfing industry. Were all those unhappy greenkeepers to leave the industry, the sport would find itself in dire straits.”

According to recent statistics, Hansell noted that 53 percent of golf clubs in Britain currently have green-keeping vacancies.

“We are not blessed with thousands of people coming into the industry and much work needs to be done to improve the visibility of the profession,” he added. “A full-time member of staff averages around 2,000 hours on-course work per year. It isn’t difficult to imagine the impact on a golf course of staff shortages.

“Some clubs are struggling to get even the basics of course management and presentation done, let alone all the project and development work necessary for a course to maintain its position and reputation.”

As a body that provides support and a unified voice for the greenkeeping profession, BIGGA is urging the wider golf industry not to stand idly by and let, well, the grass grow under its feet.

A greenskeeper cools down the greens prior to the 1990 PGA Championship at Shoal Creek.

“BIGGA is actively undertaking initiatives that will raise awareness of the profession, but golf must face up to its responsibilities with regards staff wellbeing and support,” said Hansell.

“Only 20 percent of clubs, for instance, provide single-sex changing rooms, while 30 percent don’t even provide an office or kitchen facilities. For things to change, golf clubs must offer working conditions and salaries to suit the modern workforce and we’re working with golf’s governing bodies to push the industry toward that goal. We need to put in place structures at clubs that respects and rewards these professionals.

“We want to highlight that the entire golf industry is only possible due to the hard work of those who prepare golf courses and yet they largely feel overlooked and unappreciated. Unless strong action is taken, then we will see a reduction in course quality, which is likely to impact on golfer enjoyment and therefore the sport as a whole. Long term, this will bring into question the viability of the sport.”

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A historic Donald Ross muni has become ‘deplorable,’ and now this North Carolina city says operator is $324K behind on payments

The 18-hole golf course was designed by Hall of Fame golf architect Donald Ross and opened for play in 1927.

ASHEVILLE, N.C. — A 10-year lease agreement with Pope Golf, the company responsible for daily operations and maintenance of the historic Asheville Municipal Golf Course, has resulted in steadily degrading course conditions and $324,934 in outstanding lease payments to the city, according to public records obtained by the Asheville Citizen Times, part of the USA Today Network.

A June 29 letter from the city attorney’s office to Keith Pope, CEO of Pope Golf, based in Sarasota, Florida, advised that the city intended to initiate litigation over the past due lease payments, some of which have been accumulating since 2016.

Chris Corl, the city’s director of Community and Regional Entertainment Facilities, said Aug. 25 the legal department is in communication with Pope’s attorney, and no lawsuit has yet been filed.

More: Asheville Muni Golf Course in its ‘most deplorable condition ever?’

He hopes the issue will be resolved out of court.

“I would say we are working collaboratively to resolve the situation and to find the right solution between us and Pope Golf for past due payments,” Corl said.

Pope did not immediately respond to requests for comment.

The city’s management and lease agreement with Pope Golf began Oct. 1, 2012, and expires Sept. 30.

“I would say it was mutual to not extend with them,” Corl told the Citizen Times.

Asheville City Council has already approved a license and management agreement with a new operator, Commonwealth Golf Partners II – Asheville LLC, which will begin Oct. 1.

For the past 10 years, the responsibility of maintenance, improvements and general upkeep of the course fell to Pope Golf.

The first public golf course in North Carolina and the first to be integrated in the Southeast, the Asheville Municipal Golf Course is the last remaining affordable public fee course in Asheville, said Corl.

The 18-hole golf course was designed by Hall of Fame golf architect Donald Ross and opened for play in 1927. It is home to the longest-running Black-owned and operated professional tournament in the country.

While Corl said Pope Golf made some improvements since 2012, “there are also a great number of areas that have declined since they took over.”

He acknowledged the course is in “poor condition,” with infrastructure needs that range from stormwater repairs, tee box upgrades and green and sand improvements.

The city is embarking on an about $2.5 million project to initiate these capital improvements and is seeking grant funding from the Buncombe County Tourism Development Authority, along with other sources.

In its fiscal year 2023 capital improvement plan, the city budgeted $1.1 million for improvements to the course.

Under Pope Golf’s lease agreement, the company was tasked with providing the city a capital project schedule and budget.

Corl said this was intended to happen annually, “but they have never submitted a capital improvement plan to us, so therefore no capital improvements have happened in that time.”

For regular golfers at the course, the condition has become “deplorable,” according to one Citizen Times reader, strong language that Lonnie Gilliam, 83, who has been golfing at the course since 1966, was quick to back up.

“The conditions out there are terrible,” Gilliam said. Having seen the course at its “heyday,” and competed in the Skyview Golf Tournament for years, he said it’s the worst condition the course has ever been in.

Gilliam said he golfs at the course almost five days a week.

“For whatever reason, once Pope took over, nothing has been done,” Gilliam said. He described an abysmal scene — sand traps with no sand, an overgrown green, sinkholes caused by an antiquated drainage system, soil erosion and broken cart paths.

“It nosedived. They didn’t do anything except collect the money and cut the grass.”

Gilliam said he and other golfers were “elated” to discover Pope Golf would not re-up its contract.

$324,934 in past due lease payments?

According to an invoice obtained by the Citizen Times, the first underpayment was in 2016.

Payments are due to the city quarterly. Per the lease agreement, for the first three years, Pope Golf paid the city $72,000 annually.

After the initial three years, this flat fee was to be recalculated as 10% of the average adjusted gross revenues earned in the first three years, according to the lease agreement. This came to $84,593 annually, Corl said.

But Pope Golf never paid the additional $12,593 per year. These payments, which amounted to $3,148 annually, were listed on the invoice as “unbilled amount(s).”

Corl said the city was not charging the additional $3,148 per quarter until the first invoice of 2022, “but the rental formula in the lease they signed was clear that they were responsible for the additional amount, and therefore we retroactively billed for all applicable quarters prior.”

Until 2019, Pope Golf continued to pay $72,000 annually, but as of June 2019, Pope Golf stopped paying any of the lease amount, altogether.

According to the city’s demand letter, if a lawsuit were to be pursued, Senior Assistant City Attorney Eric Edgerton told Pope Golf the city would seek “trebled damages” of $974,802, in addition to the cost of litigation.

“The City further understands from statements you have made to its employees that (Pope Golf Asheville) has in all likelihood deliberately depleted its assets with the goal of rendering it judgment proof,” the letter said.

Corl said the nonpayment was due to ongoing discussions and disputes surrounding stormwater improvements and capital costs, and whose responsibility it was to foot the bill.

He said he could not speak to much more of the background, as until Jan. 1, 2022, the Municipal Golf Course fell under Asheville Parks and Recreation’s management. Only at the beginning of this year did Corl’s department, Community and Regional Entertainment Facilities, take over management of the course.

Despite nonpayment, Corl said “eviction” of Pope Golf was not a good option without a set plan if the city intended to continue operating the course.

Without proper care, he said a green can die in less than three weeks. The city chose to continue working with Pope in the hopes of resolving the issue.

“It was never an oil/water situation. They are still operating the course on our behalf; we’re still trying to have that course open to the general public,” Corl said.

“We still have very affordable golf out there, so it’s good to keep the course open and try to work with them on the backside to try to figure out a solution.”

‘New life’

Despite challenges at the course — which prior to Pope Golf taking over operation in 2012 lost $539,000 in four years, according to prior reporting from the Citizen Times — it is an essential piece of Asheville history, Corl said.

“It’s everything that I think people think golf should be,” Corl said.

“There’s a lot of good happening there that people don’t realize can happen with golf because of the stigma that golf has had for decades as being a sport for rich, white people. It’s not that at Muni.”

He was excited for the city to begin its work with Commonwealth Golf Partners.

Corl said this will be a new model of management. Rather than a lease agreement, like the one the city had with Pope Golf, Asheville City Council approved on Aug. 23 a licensing and management/operations agreement.

Though it holds more financial risk for the city, it allows the city to dictate maintenance levels for the course and retain control of maximum allowable green fee and passholder rates, according to a staff report on the operator agreement.

In the case of a quarterly loss, the city will be responsible for 65% of losses, and Commonwealth responsible for 35%.

In the case of a quarterly profit, Commonwealth will earn 100% of the first $5,000 and then 55% of remaining earnings, while the city takes 45% of all earnings after the first $5,000.

Commonwealth will manage and execute capital projects on behalf of the city.

“It opens up a new door, creates new life,” Corl said of the new operator.

“And when you’re thinking about people … who are there on the regular, speak fondly of the course, but know what it’s current status is, a change in management is a really, really good start to invigorate people to make them realize, ‘Hey, we’re actually doing something.’”

A community meeting with the new operators will be held at 6 p.m. Sept. 1 at the Dr. Wesley Grant, Sr. Southside Community Center.

Sarah Honosky is the city government reporter for the Asheville Citizen Times, part of the USA TODAY Network. News Tips? Email shonosky@citizentimes.com or message on Twitter at @slhonosky.

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After Oregon golf club threatened neighbors it might close without ‘financial support,’ homeowners vote against plan

Golf course owners Tokarski and Kelly have been threatening to close the course and develop the property for years.

SALEM, Oregon — Neighborhood residents of Creekside Golf Club, a country club in the Oregon state capital less than an hour from downtown Portland, have overwhelmingly voted against financially supporting the club.

Club owner Larry Tokarski, who had threatened to close the 18-hole course and develop the property without that support, now says the club can stay open in the short-term.

In a letter posted on the club’s website Wednesday night, Tokarski said he will buy out partner Terry Kelly, and will lease the course to the club’s general manager, Danny Moore, and controller, Shelly Elliott.

“This option was made available in recent days due to the dedication and commitment of the Creekside Golf Club members,” Tokarski wrote.

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Over the past few weeks, club members have raised about $1.25 million to start addressing deferred maintenance and staff wages.

That’s far short of the $4.2 million Tokarski had asked the homeowner’s association to approve, and the letter indicated that he will again ask neighbors to pitch in.

“Danny Moore will commit to working with the Creekside community to gain feedback in the development of a long-term plan that reflects all of our desires to see the club thrive,” he wrote.

Neither Tokarski nor Kelly responded to interview requests.

Creekside Golf Club and the Creekside Estates neighborhood were created by the same developer, but otherwise have no legal or financial connection.

But many club members live in the neighborhood, and those with golf course views have an interest in preventing development. Some residents said they bought their homes thinking the golf course would always be there.

Golf course owners Tokarski and Kelly have been threatening to close the course and develop the property for years.

In 2016 they asked the 588 members of the Creekside Homeowners Association to each contribute $60 per month toward the club in exchange for limited memberships.

When that failed, they asked the city of Salem to reduce the rate it charges the club for water, shifting the cost to residential customers. That proposal also failed.

First, each property owner would have paid $90 per month, or $1,080 per year, for five years to help support the club. That failed 334 to 170.

Second, a 1% transfer fee on home sales would go to the club. That failed 406 to 97.

In return, the club’s owners said they would pause plans to develop the property into housing for five years.

The 153-acre course was built in 1993. It was designed by touring golf professional Peter Jacobsen.

Tracy Loew is a reporter at the Statesman Journal. She can be reached at tloew@statesmanjournal.com, 503-399-6779 or on Twitter at@Tracy_Loew.

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Troon acquires Indigo Golf Partners in club management mega-deal

The largest golf-course management firm in the U.S. has just gotten larger by acquiring one of its chief competitors, Indigo Golf Partners.

In a deal that makes the largest golf-club management firm even larger, Troon announced it has acquired Indigo Golf Partners, the company formerly known as Billy Casper Golf. Terms of the deal were not disclosed.

“This transaction supports our continued growth and reach in the industry, while bringing additional support, expertise and resources to associates as well as current and prospective clients,” said Troon president and CEO Tim Schantz.

Troon’s purchase of Indigo Golf Partners, which specializes in full-service property management as well as assistance in specific segments of the golf business, continues an aggressive buying spree over the last few years, including the acquisition of Cliff Drysdale Management, the nation’s largest tennis management company, in July 2018; RealFood Hospitality, Strategy and Design in February 2019; OB Sports Golf Management in April 2019; and Green Golf Partners in May 2019.

Troon substantially increases its portfolio of facilities with the acquisition of Indigo Golf Partners – the company now provides managed services at 585-plus locations around the globe, including managing 630-plus 18-hole equivalent golf courses. In particular, the deal diversifies Troon’s portfolio of client properties that had been heavily weighted to the high-end daily-fee category. Indigo Golf Partners, which focused primarily on providing services to the municipal golf space and facilities with lower price points, brings more accessible golf under the Troon umbrella.

Indigo Golf Partners is one of the largest golf-course management companies in the United States, owning and operating more than 160 golf courses, country clubs and resorts in 29 states. Members and guests of Indigo-managed facilities will continue to experience the same level of service, course conditions and food and beverage options, the company said in a release.

”Leaving the industry better than we found it has been a guiding principle of Indigo Golf Partners, and Bob Morris and I hope to have achieved that in our over 30 year history in the industry,” said Peter Hill, co-founder, chairman and CEO of Indigo Golf Partners. “Troon aligns with our commitment to quality service and has a complementary course portfolio making it the right company for us to join. We are confident in growth ahead for Indigo and appreciate the dedication and commitment of all team members and partners who have made our great company what it is today.”

In November, Billy Casper Golf, which was founded in 1989, rebranded as Indigo Partners. In January 2019, the company spun off the division Buffalo Groupe, which focuses on the business-to-business sector of the industry, perhaps setting up for such a sale of the course-management business down the road. Indigo Golf Partners is expected to maintain its headquarters in Reston, Virginia and to continue and support managed-clubs throughout Troon’s full family of brands, including Troon Golf, Troon Privé, Honours Golf, OB Sports and more.

“Peter Hill and I have been good friends for many years,” said Troon founder and executive chairman Dana Garmany. “While we have been friendly competitors over time, we’ve always shared a mutual admiration for each other’s company. We share common values and a similar approach to putting our client’s interests first and foremost, and working to impact the golf industry in a positive fashion.”

While Troon extends its lead as the largest player in the course-management sector, there is still more than 80 percent of the 14,500 golf courses in the U.S. that aren’t run by a professional management company, meaning there remains plenty of room for growth.

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