With the grand opening of its Sanctuary Lake Golf Course this week, the city of Troy is bucking the trend of fewer course openings and more closings that's been under way in recent years around Metro Detroit and the rest of the country.
City officials had a special set of circumstances, however, that limited their options for the land where Sanctuary Lake now sits. They also have several years of experience with another municipal course, Sylvan Glen, that turns a small profit each year and will host an estimated 55,000 rounds by the end of 2004.
Sanctuary Lake used to be a landfill. For nearly two decades, discussion over what to do with the property has included a golf course.
"It is definitely, in environmental terms, getting its best use as a golf course," said Carol Anderson, the city's director of parks and recreation. "We took something, a really bad piece of property, and turned it into an amenity, not an eyesore."
Those running Sanctuary Lake say they plan to compete with the best public courses in the area. The new club features a pro shop and will have a grill and bar open by late fall or early spring.
Nonresidents can expect to pay $60-$65 for a round depending on the day of the week; Troy residents will pay $50-$55.
"Some people who have played the course have had concerns about the rates," said assistant golf pro Tony Saulino. "But once they play it, they think it's well worth the price."
The only other viable option for the landfill property would have been to turn it into a passive park with walking and biking trails, according to Steve Vandette, the city's acting assistant manager. And Troy already has land set aside for further park development.
In addition, a second golf course makes good business sense, he said.
"We wouldn't have built this golf course if we hadn't checked the business aspect," Vandette said. "If there hadn't been a solid basis for this ... we would have walked away."
Each year, far more courses in the United States open than close. But since 2000, the number of closures has sharply risen, while openings have drastically declined.
Last year, the equivalent of 171 18-hole golf courses opened in the United States, according to the National Golf Foundation. That figure is down from 220 in 2002, 284 in 2001, and 398.5 in 2000.
Nationally, the equivalent of 43.5 18-hole courses closed in 2000 and 47 closed in 2002. Those figures represent a sharp rise from the 23 courses that closed annually between 1998 and 2000.
Local and national golf experts say weaker courses are dropping out of the business for a variety of reasons.
Oakland Hills Country Club in Bloomfield Hills is one of the industry stalwarts in Metro Detroit and will host the Ryder Cup, an international competition of the world's best golfers, in September. Rick Bayliss, the club's chief operating officer, said the trend in openings and closings is the result of years of skyrocketing fan interest.
"The growth of the game reached a crescendo about four or five years ago," he said. "...I think the growth of interest in the game has not kept pace with the growth in courses."
Around the country, public and private course owners have learned golf can be a tough business to make profitable ? particularly when operating costs have risen while most playing fees have remained the same.
"Property owners are realizing that their land is worth more if it's not operated as a golf course," said Jay Karen, membership director for the National Golf Course Owner's Association.
Municipalities are learning that lesson too.
In Commerce Township, the local development authority recognized how hot a commodity El Dorado Golf Course had become and stepped in to purchase it in October for a town center with homes, shops and a four-lane, north-south boulevard.
"We were very aware developers were knocking on the doors of the owners," said Constance Guest, the township's planning director. "The development authority decided to be proactive and control the development that takes place."
Not all municipalities are backing away from their investments. In Auburn Hills, city officials recently spent $1.8 million on a new clubhouse at city-owned Fieldstone Golf Course.
If the course didn't have to pay off the bond debt from its construction, it would be paying for itself by now, said acting City Manager Michael Culpepper.
Even for municipalities that can turn a profit with their golf courses, there is always the argument that it's a business government has no business in. Culpepper said it's a discussion city council members still have from time to time.
For others, the concern is whether the course truly benefits Troy residents.
Eric Hunt, a local lawyer who has challenged the city's priorities in the past, said there should be more steeply discounted prices for Troy residents.
"To me, a municipal course should be for the benefit of of the city residents," he said. "A lot of people can't afford to play for $50."
Source: The Detroit News