Martin County Taxpayer’s Association Review of Martin County Golf Course

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  1. Summary:

The mission of the MCTA is “To monitor and review all fiscal and tax matters affecting Martin County. To engage public officials, community leaders and private sector organizations who may influence the economy and efficiency of the County of Martin, the School District, municipalities and other taxing authorities in the matter of taxes and the financial resources of the County.” In accordance with this mission a review was undertaken by the MCTA of the Martin County Golf Course.

The Legislative Committee met and interviewed F. Chandler Doolity, manager of the course, reviewed the reports from National Golf Foundation and CBRE, which were prepared for the County, and the financial information and budgets for the golf course found on the county website.

The game of golf is seeing a decrease in the number of players. In 2001-2002, Martin County Golf Course had 145,634 total rounds of play. By 2016-2017 the number of rounds had decreased to 59,058. This is an approximately 40% decrease in rounds played.  Golf not only in Martin County but throughout the United States has seen a reduced number of rounds of play for the past several decades.

The Martin County Golf Course currently has 36 holes. It is underutilized given today’s rounds played and the trajectory for future years. Recently, the Parks and Recreation Department total recommendations would cost the County $12,250,000 for golf course improvements. MCTA does not agree with an investment of this size. The purpose of a government owned course is to provide an inexpensive opportunity for Martin County residents to play golf in a relaxed atmosphere. The public course and ancillary structures should not try to impede on the private sector.

After careful analysis, The MCTA recommends reducing the course size to 27 holes, constructing a modest grille room, and refurbish the greens. The entire investment should not exceed $2,700,000.  The BOCC should give clear direction to staff to cap the expenditure at this amount.

To help pay for the above recommendations, MCTA thinks that the county should sell 80 acres to the Airport Enterprise Fund. The Parks Department further needs to sell as surplus any equipment not needed such as excess golf carts.

The proceeds from the sales may not cover the entire $2.7 million. However, the difference in funds can be structured as a loan from the County to an enterprise fund for the Martin County Golf Course. MCTA believes the Martin County Golf Course can be self-sustaining and not a burden to Martin County taxpayers.

To fully understand the issue, it is helpful to understand the history of the Martin County Golf Course since the County cancelled the lease and took over management of the course.

  1. History:
  2. January 6, 2015, the BOCC directed staff take the following actions relative to the Golf Course:
  3. Assume control of the Martin County Golf Course while a new long- term plan is created.
  4. Discontinue the golf board and replace with a Citizen Advisory             Committee which has recently been disbanded.
  5. Prepare a long-term plan for the site, mindful of local golf demand and airport proximity restrictions.
  6. Report back on airport proximity restrictions and with a plan for             creating a long-range program and implementing it immediately.
  7. After the BOCC direction a design team was selected through             formalized bidding, a Golf Course Advisory Committee (GAC) was                                 appointed by the BOCC and six public meetings were held.

 

  1. July 28, 2015, staff presented the following information for the Golf Course Master Plan:
  2. A recommendation by the GAC from July 22, 2015 to reduce the number of holes from 36 to 27.
  3. Four golf course renovation programs for consideration that were designed through input from the GAC, public, staff, and the consultant.
  4. ACTION TAKEN: The BOCC approved a budget transfer from the Golf Course Development Fund in the amount of $79,000 to the Martin County Golf Course Enterprise Fund to immediately demolish the old clubhouse/locker room and lease a temporary food and beverage modular and directed staff to seek the most appropriate funding method to finance the approved program.

 

  1. March 22, 2016, the Parks and Recreation Department provided the following information on the Golf Course Master Plan as recommended    by the GAC.
  2. A business plan for 27 holes conducted by the National Golf Foundation (NGF).
  3. A real-estate analysis appraisal of the golf course conducted by CBRE.
  4. ACTION TAKEN: The BOCC approved allowing the operation of the Martin County Golf Course to continue as it has since coming under the purview of the Parks and Recreation Department for the next six months and report back on September 20, 2016.

 

  1. October 25, 2016, the Parks and Recreation Department provided the BOCC   with an update on the progress, management, and performance of the   Martin County Golf Course for the time period of October 1, 2015 through September 30, 2016.  ACTION TAKEN: The BOCC received the update from   staff.

 

  1. November 22, 2016, the BOCC directed staff to return with a CIP golf        sheet that did not reduce the number of golf holes, which included clubhouse        location to be determined and which would create more efficient flow of             play.

 

  1. January 10, 2017, the BOCC directed the Parks and Recreation Department to host a public charrette to gather more input from the     community on the public golf course.

 

  1. On March 27, 2017, a public charrette was held at Indian Riverside Park with more than 100 golf enthusiasts in attendance. The Treasure Coast   Regional Planning Council who was contracted by the County conducted the           charrette. The tasks were as follows:
  2. Conduct a pre-workshop phase including but not limited to; meeting with staff, public, committee members, historic evaluation, golf course tour and develop a strategy for the workshop.
  3. Conduct a workshop phase soliciting input from the public through electronic polling.
  4. Post-workshop phase consolidating all input form the pre-workshop, public polling, online surveys and report findings and recommendations.
  5. Complete a final work product and deliverables.

 

  1. May 3, 2017, the GAC voted to bring before the BOCC a recommendation that creates a Master Plan for the Martin County Golf Course keeping the         course at 36 holes, adding an appropriately sized clubhouse, with the intent of keeping golf course play affordable and concurrently developing a CIP        program to improve the golf course.

 

  1. June 13, 2017, the BOCC directed staff to maintain 36 holes of golf, reconstruct the clubhouse within the realm of its original site, remove the    existing cart barn and relocate the carts under the elevated clubhouse and        include locker facilities.

 

  1. February 27, 2018 The BOCC directed staff to provide an update on the golf course design.

 

  1. May 8, 2018, Mr. Abate, the Director of the Parks & Rec Department, presented a plan requiring an expenditure of $12,250,000. The agenda item stated, “It is estimated that the new golf course clubhouse and surrounding practice facilities/new adjusted golf holes will cost approximately $9,500,000. An additional $2,750,000 is needed to modernize the 40 years of turf and play program for the red/white remaining holes to compliment the new improvements to the clubhouse and practice facilities.”
  2. The presentation further stated that, “Without a capital investment into the Golf Course itself, the subsidy will continue and will increase.”
  3. Page 12 and 13 of the presentation reflected a net shortfall for 2017 of $591,538.

 

 

III. Issues:

  1. The Board of County Commission had disbanded the Golf Board formed a Golf Advisory Committee (GAC) and commissioned two studies to develop      recommendations for the Martin County Golf Course (National Golf    Foundation-NGF and CBRE, a valuation firm). The Golf Advisory Committee             recommended on July 28, 2015 to reduce the number of holes from 36 to 27.              The National Golf Foundation recommended and presented a business plan           on March 2016 to reduce the size of the course to 27 holes.

Martin County taxpayers have spent over $122,500 for these studies. Both                                the studies and the GAC recommended reducing the size of the golf course to 27 holes. It is apparent that this is not the answer the majority of the Commissioners want to hear. Hence, we are now at a point where the BOCC is entertaining investing an additional $12,250,000 in an enterprise that the taxpayers are subsidizing.

  1. The CBRE study placed the value of the property if it was to be sold for residential use at $6,800,000 for 304 acres or $22,368/acre. (page 2 of the             CBRE Valuation)
  2. The main issues with the current golf course, as identified by F. Chandler Doolity, and the National Golf Foundation are as follows:
  3. Turf is 2nd generation and needs to be replaced
  4. Inadequate parking facilities
  5. Inadequate practice facilities (driving, putting and chipping areas)
  6. No clubhouse
  7. Inadequate toilet facilities (portable toilets are currently being             used)
  8. Antiquated and expensive watering system (17 pumps and the             water are handled twice: i.e. pumped from a well to the lakes and then                         to the fairways and greens)
  9. The Martin County Parks and Recreation Department has estimated that the cost of replacing the turf is $2,750,000 (BOCC Meeting 8 May 2018)      for 36 holes.
  10. Recommendations:
  11. Immediately Freeze the remaining monies allocated to the planning phases.
  12. Establish a monetary limit for the renovation of the course not to exceed $2,700,000.
  13. Establish The Martin County Golf Course Enterprise Fund as the vehicle to manage the golf course and collect appropriate fees. Utilizing the county budget for 2017, projected for 2018 and projections from the study done by the National Golf Foundation, the MCTA believes that the Martin County Golf Course can be a self-sustaining county golf course. (MC Golf Course Pro Forma Rev2)
  14. Reduce the size of the golf course to 27 holes, by retaining the Red, White and Blue Courses.
  15. Re-align the Red and Blue Courses to be an 18-hole course with the first four holes on the current Red Course, the 9 holes on the Blue                             Course and the remaining five holes on the Red Course.
  16. Retain the White Course as a 9-hole course and allow walking on the course.
  17. Replace the Turf and bring it up to standard. The estimated cost for 36 holes was $2,750,000. To retrofit the 27 holes should cost no more than $2.1        million. However, it should be noted that another semi-private club in Martin     County recently replaced 22 greens for a cost of $400,000.
  18. Develop enhanced practice facilities (driving, putting and chipping areas).
  19. Build a new single-story facility with a 3,000 square foot footprint adjacent to the current Pro Shop and extending toward the cart   barn.
  20. The building will have a Grille Room at a cost not to                   exceed $200/sq. ft. and will correct the inadequate toilet facilities.
  21. Continue to use the existing cart barn for cart storage.
  22. Retain the existing Pro-shop and continue to sub-let it to the Don Law Golf Academy.
  23. Connect the course to Stuart re-claimed water system. This will reduce the electricity usage of the course and the dual pumping required for the current irrigation system.
  24. J. Sell the 80 acres, the Gold Course, to the Airport Enterprise Fund for $22,368/acre (CBRE valuation) or $1,789,440.
  25. K. Reduce the net investment from Martin County to $910,560, which will be made in the form of a loan to The Martin County Golf Course             Enterprise Fund for a 30-year period at an interest rate of 3.5%