Golf Services - Project Profiles

South Fork Ranches

The site of the South Fork Ranches project is a 2,300 acre parcel, bisected by the Rio Grande River and surrounded on three sides by National Forest. The mixed-use development plan included a variety of residential products, a resort hotel, an 18-hole golf course and commercial uses and is permitted for 1,700 units.

This project was the first effort at golf course development for Land Properties, and also their highest density development. The golf portion of the feasibility study focused on the impact of tourism and seasonal residents in South Fork. The Wolf Creek Ski Area, which currently has limited accommodations, is just over 10 miles west of South Fork. HVS Golf worked with the developers on various course concepts that would amenitize the development and provide the greatest impact on sales and the financial success of the project.

HVS Golf provided input into the potential absorption and helped provide ratios for the mix of lot types and an understanding of the hotel development potentials.

HVS Golf was asked to assist in the matriculation of the development and has been actively involved in numerous aspects of the development. A subdivision analysis used the existing working material to date, and created individual assessments of each parcel of lots, helped assist in the phasing of the parcels and provided assistance on understanding the relationship between these lots and the development.

HVS Golf worked with the developer to in the planning of the membership program for the Rio Grande Club, as the golf course was subsequently named. This included drafting the membership documents and providing recommendations for variations to the program designed to cater to the areas seasonal residents.

HVS Golf provided an outline of the programming and design of the Clubhouse, and assisted in the facilitation of its development. HVS Golf serves as the managing partner for the Rio Grande Club, helping to set policies and guiding the direction of the club.

Valley Ridge Golf and Country Club

In profiling the regional golf market, HVS Golf looked at a variety of indicators, including types of clubs in the area, membership structures, demand for golf, current rounds played, capacity, utilization rates, and fees.

In order to achieve the desired objectives, HVS Golf conducted an in-depth analysis of the club’s financial statements, management structure, and staffing. By traveling to the club and interviewing key employees, and understanding of the club’s overall operations was developed. A subsequent membership survey assisted in providing a better understanding of the membership.

This analysis allowed HVS Golf to make significant changes to the club operations and management. These changes included personnel changes, improved accounting methods, and new marketing strategies. The club was positioned the facility so as to improve customer service, profitability as measured by the net income and improve the relationship with the surrounding residential community. Finally HVS Golf assisted in recruiting and interviewing new candidates for the General Manager position.

Landmark Land Company

HVS Golf was a part of a team of appraisers that sought to provide retrospective values to the Landmark developments during a number of varied time points related to the litigation. The role of the appraisers during this testimony was diverse and included:

• Review of existing appraisals
• Review of membership plans
• Review of historical pro formas
• Deposition - Cross Examination
• Trial strategy
• Expert report preparation

The analysis included Landmark properties such as La Quinta, PGA West, Mission Hills Moreno Valley and Carmel Valley Ranch.

Mill Creek

The country club has an extensive social membership with over 300 members, a separate tennis center with about 150 members as well as over 400 golf members. In addition, the membership had an affiliation with a separate swimming pool and fitness area.

The appraisal was requested to provide a definitive measure of the facilities market value, and to substantiate this value to facilitate the sale of the golf club. The appraisal explored the sale to the existing membership as well as the sale to a third party operator. The property is currently under contract, with a purchase prices in excess of the appraised value to a third party.

Sequim Golf Course

The study focused on tourism from Seattle and abroad as well as the retirement community in Sequim to asses the potentials of the market. The addition of a golf course would establish Sequim as a golf destination and provide economic development opportunity for the city.

HVS Golf helped prioritize three sites that the city was considering for the course. A main consideration in the site selection was proximity to Sequim’s new wastewater treatment plant that would provide irrigation for the course. HVS Golf outlined potential financing options for the city including budgets, structure of a viable financial arrangement and options for funding the project.

Isla Maya Golf Course

This analytical dilemma posed by the site was unique because although Cozumel is a well-established resort destination, this would be the first 18-hole golf course on the island. The study focused on detailed analysis of several aspects of tourism in the region, focusing on the following issues:

• The ability of the hotel base to provide a clientele for the golf course;
• Possible affiliation with an on-site all-inclusive resort hotel;
• Selling limited memberships to second home owners, expatriates and local businessmen;
• The depth of the cruise ship market for golf play.

The financial feasibility aspect of the study analyzed the impacts of affiliation with an all-inclusive hotel, and issues relating to tee time priorities and pricing. On the operating side, the salary structure and supply of adequate materials and supplies were unique items that were quantified.

The market and financial feasibility study was converted to an appraisal to determine value in support of a construction loan. Unique valuation methods were employed to delineate the parameters that affected development.

The project is under development and the projects owners and developers have teamed with Jack Nicklaus and Club Corp to produce a world class facility and resort community.

Boulder Golf Association

HVS Golf was hired by the Boulder Golf Association to perform a market feasibility study for a new municipal golf course in the City of Boulder. The objective of the study was to provide a broad overview of the golf market in the region by an in depth evaluation of the market. The BGA was interested in furthering the sport and wanted to illustrate to the City the benefits of a golf course to the community.

HVS Golf performed an analysis of the local supply and demand based on the typical trade area but profiled similar aspects for City of Boulder residents. The study looked at the depth of the market from residents as well as tourists. An in depth evaluation of the market for juniors along with the particular difficulties facing junior golf were illustrated to provide some perspective on the impacts of the game on the youth and the lack of available opportunities. HVS Golf prepared a comparative analysis of communities along the Denver Front Range to illustrate the dearth of golf courses open to the public.

The study concluded that the City of Boulder, as well as the trade area, were underserved in terms of access to both public golf and municipal golf. It was determined that there was market support for a new golf course within the City, and within the trade area.

Paiute Indian Tribe of Utah

The Paiute Indian Tribe of Utah wished to evaluate the potential to develop a golf course on a site adjacent to Interstate-15 in southwestern Utah. The tribe had witnessed the development of many regional golf courses by other Native American interests, and was looking for economic development opportunities to further the tribes’ long term goals.

Southern Utah has had rapid economic growth during the last several decades, with the growth mainly driven by the development of golf courses focused on retirees and snowbirds. The main growth area has been in St George which has a desert climate. One of the interesting questions posed by the study was to determine the market for a golf course in a “counter climate” region less than an hour away. Because Cedar City is much higher in elevation, the summers are less severe and allow better golf opportunities during the summer months.

While there was a substantial market for development, the financial prospects for a stand alone golf development were marginal. HVS Golf recommended that the tribe not develop the golf course as a stand alone operation, but that further study was needed to evaluate a larger project concept. A larger project that included residential, hotel and commercial development may be able to provide subsidies to the golf operation and alter the financial constraints of a stand alone golf project.

Desert Mirage Putting Course & Entertainment Complex

The Desert Mirage project was commissioned while still in the conceptual phase. Our study assisted in determining the market for a putting facility and related uses on the site; in particular we determined the specific potential uses of the site as a putting or alternative course, an indoor learning and interactive video golf center, a lounge and piano bar with limited slot machine gaming.

Mesquite is a rapidly growing community that has evolved from a tiny community centered around the Oasis hotel and casino, to a regional tourist destination with multiple golf courses, hotels and casinos. These characteristics as well as the warm climate have provided the impetus for the development of seasonal and retirement homes. Because Mesquite is blessed by its locations near the numerous National Parks, and Southern Utah's "Color Country,” our study included a thorough analysis of the tourism patterns in the region, and analyzes of various statistics to quantify the number of visitors that are in the area on a daily basis.

The study concluded that the market demand exists for the project and the project has the potentials to generate a market based return to potential investors.

Acme Lakes

This study was commissioned by the Acme Materials Company to evaluate the potential for developing an upscale 18-hole daily fee golf course on a parcel of land just south of Muscatine, Iowa. Muscatine is located on the Iowa/Illinois border south west of the Quad cites and east of Iowa City and has the potential to draw players from each of these regions.

HVS Golf took on this project in order to assist in deciding the following issues: (a) assisting in planning decisions relating to golf course development, (b) establishing the market and financial feasibility of golf course development at the Acme Muscatine site and (c) providing detailed information to assist owners and board members in the evaluation of this opportunity (d) providing a base of information for future partners or team members in this project.

After determining the high demand for golf in the region and the excellent geographical placement that allows Acme Lakes to draw from numerous markets, HVS Golf recommended the course be targeted to the upscale regional market; additionally, the course should have complimentary amenities to serve this market.

The Jaspering family farm is facing the encroaching expansion and development of the St. Louis metro area. For this study the family wished to evaluate the economic feasibility of an 18-hole championship daily fee golf course with regional appeal. Further, the course was conceived as an upscale golf course with reasonable prices and minimum amenities (including the clubhouse, etc).

One of the main questions posed by the study was the economic viability of a course in a region already plentiful with golf courses. Because of these market factors, we determined that Jaspering Farms must target a broader (i.e. a regional) market. With this in mind, HVS Golf the scope of the areas studies to include the St Louis MSA and the Columbia MSA. Further, we determined that the Jaspering Farms Golf Course is a prime candidate for implementing demand pricing, which is essentially the pricing element that is used by airlines and hotels. Such pricing will allow the owners to capitalize on their investment and demand higher rates at times of higher demand, and at times of lower demand, Jaspering Farms Golf Course will be able to attract more customers because of their discount prices.

Efficient management and successful marketing of the Jaspering Farms Golf Course are of utmost importance to the economic success of the golf course. Additionally, building the course with support of a residential development will help to make the project more profitable.

Alpine Creek Golf & Ski Estates is a planned unit development located adjacent and to the north of Brian Head Ski Resort in Iron County, Utah. The mixed-use site is anticipated to encompass a variety of uses including residential product, townhomes, condominium or timeshare units, a hotel and an 18-hole golf course, alpine and cross country ski trails, and commercial uses.

The scope of the HVS Golf report was to perform an analysis of the potentials for a golf course and the varied residential development, and to assist in the economic planning of the development. HVS Golf evaluated uses including single family detached lots, condominiums and townhomes, and rental units. Premiums evaluated included golf as well as ski-in ski-out product.

The function of HVS Golf’s report was to assist the current landowner in analyzing the potential for development of the project, to assist in securing a joint venture partner, and for use in financing portions of the project.

Ravenna is an exclusive gated upscale golf course community located along the foothills of the Rocky Mountains in Southwest Denver. The site is spectacular, with huge red rock outcroppings, amazing views, and deep ravines.

The assignment for HVS Golf was to perform a market feasibility study, directed at potential founding and charter members, while at the same time assist in the financial planning of the development and assist in defining the membership structure of the club.

As part of the study, HVS Golf developed a membership cost factor analysis that synthesizes all financial aspects of club membership. These factors include refundability, transferability, equity and other considerations. This cost factor analysis allows a ranking of the clubs that equalizes all holding costs for the membership, and perceived value.

The Ravenna club was positioned based upon these rankings and the goals of the developer to become one of the premiere clubs in Denver. The concept developed for the club focused on Ravenna as an urban resort - an urban development encompassing all the benefits of the resort communities located throughout Colorado. The founding and charter membership structures were developed in coordination with the residential development.

Walters Golf Management is a home grown management company that has expanded from its initial redevelopment of the Bogey Hills golf course to the ownership and management of nine courses in the St. Louis metropolitan area. Walters has grown into one of the premiere management companies in St. Louis.

The assignment for HVS Golf was to perform an estate appraisal for five of the facilities in the portfolio. The appraisal focused on determining the use value of the properties, which required in depth financial analysis of each of the facilities cash flow and the application of judicious adjustments to these income streams.

The assignment was particularly challenging due to the varied nature of the properties. They include:

• The Missouri Bluffs, a Tom Fazio Designed upscale daily fee golf course that is part of the University of Missouri Research Park.
• Whitmoor CC, a full service membership club with 36 holes that is integrated into a residential community.
• Gateway National, a Keith Foster designed upscale daily fee golf course that was developed as a stand alone facility.
• Bogey Hills CC, an established Country Club located in the heart of St Louis.
• The Golf Club of Wentzville, a new stand alone golf course affiliated with a suburban residential development.

Interesting facets of this assignment include the valuation of lot allocations from residential development, valuing the liability of varied refundable memberships, the valuation of parking revenues at a facility and the valuation of a leased fee estate.