The Sustainability Of The Oakmont Golf Courses
The financial situation of the Golf Club is nearing critical aspects, according to leadership sources.
The OVA Board is prepared to financially support the OGC, consequently they are looking at ways and means to accomplish this desire. Among other possibilities, the purchase of land from the Golf Club has been considered. One parcel on Oak Leaf Drive was investigated as a staging area for the Maintenance Department. More interesting is a piece of land adjoining the CAC (Central Activities Center). It would facilitate the development of the Berger II – a new community center.
While the site is ideal for the OVA, a sale would require the OGC to realign the course, an expensive proposition, which would, no doubt, be reflected in the purchase price. However, regardless of the amount agreed upon, it will not satisfy the requirements of the club, who asked for $1.4mm in support from the Association over a period of five years.
The central issue that faces OGC and by extension OVA, is the long term sustainability of the golf courses. With Boomers playing less golf and the next generation Millenials interested in other activities, business will not materially increase in the future.
How will the OGC cover the incipient shortfalls? Closing down the East Course is one possibility. But those living by the links would object to the unkempt appearance of brown grass and weeds; and repurposing the property could be expensive.
One solution that has been proposed is for the OVA to buy land and/or part of the golf club.
“Simply giving money to the OGC may not be necessary as Oakmont might give OVA a return on their investment in the form of land or partial ownership of the club.” (John Williston, 2014, Long Range Planning Committee Report).
Perhaps the time has arrived to seriously consider this suggestion. If foreclosure or bankruptcy loomed, OVA could face competitors vying for the 225 acres, planning housing development on certain acreages.
A prudent and partial buy-in of the golf club assets by OVA holds promise, if required in order to prevent a default and potential outside control of a fundamental feature of our community. One caveat remains, namely IRS considerations in regards to financial transactions between not-for-profit and for-profit entities.
Don McPherson writes on Nextdoor (HERE), “It’s past time now for OGC to move from wants to needs and fish or cut bait — and time for OVA truly to protect its long-term interests in land, land use, and sustaining golf in Oakmont.”
I agree… it is time to face reality!
From $288,000 in yearly OVA subsidies to fee for services to purchasing land, OVA has wrestled with how to protect its interest in preserving Oakmont’s vast open spaces.
All the while OGC’s financial situation is steadily eroding. Is it realistic to continue running two 18-hole golf courses? A final decision needs to be made which of the courses to reserve for golf play.
THE EAST is a unique Executive sized course catering to Oakmont residents, meeting the needs of older golfers, and those looking for a shorter game. Does anyone know whether the East Course is even averaging 50% capacity during the season?
THE WEST GOLF COURSE I assume attracts more golfers from outside Oakmont. Players have the option of a driving range, putting green not to mention the Quail Inn bar and restaurant. Weddings and other banquets contribute considerably to OGC’s bottom line.
Oakmont residents would like to see OGC remain a viable business entity. However, given the reality of their finances, it’s time to move past band-aid considerations and develop a long-term plan securing OVA’s option in preserving open space for the enjoyment of the whole community.