City ponders golf course turnover
Several years of financial hardship have officials looking at management company.
Friday, July 04, 2008
HAMILTON — Joe Livingood says the golf market in Southwest Ohio is competitive but sustainable.
He'd know. He's the senior vice president for Billy Casper Golf, which operates the courses owned by the city of Cincinnati and the Heatherwoode Golf Club in Springboro. In all, it operates 93 facilities nationwide.
Billy Casper Golf is one of several management companies in the United States that specialize in running golf courses. Currently, Hamilton runs its own golf courses, Twin Run and Potters, but several years of financial hardship have officials considering a management company as a means to make the courses profitable again.
"This is our alternative if things don't start turning around," said Bill Wilks, president of the Parks and Recreation Commission. He said the earliest such a change would occur is 2010.
Livingood said that if the city was to contract with Billy Casper Golf, it would negotiate a flat payment fee and a percentage split of the courses' income. Then the company comes in and runs the business.
"We're really running the entire operations for the owner, which allows us to bring in some of the systems and structures we've refined over the years," he said.
Livingood said they focus on training the employees, evaluating all the amenities the courses offer and tweaking, adding or eliminating as necessary.
"Once you put all those things together at the end of the day, you're a little more efficient and making a little more money," he said.
The city could still have a say in prices at the course if they want, Livingood said. Those details are worked out in the crafting of the contract.
Parks and Recreation Director Bob Harris said that if the city contracted out golf services, the current employees at the courses now would be absorbed into the company.
Not all approve of management companies. Steven Klick, director of operations at the Beavercreek Golf Club, said contracting out golf management has problems.
He said the city's course was opened in 1996 and run by a management company from 1998 to 2004. In 2004, the city manager booted the management company, which was losing money, and Beavercreek has operated the course ever since.
Klick said a management company's primary goal is to the company not to the local course and it removes the control from local officials.
"Regardless if they make money or lose money they get their management fee no matter what," Klick said.
Any decision to lease out management will eventually be made by city council, Harris said. It's one option of many the city is considering to make golf a profitable or at least break-even business again.
"We're laying everything out on the table and we're doing our homework," he said.




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