Screw Eminent Domain—There's a right way of doing things

[Dan_Callahan]

According to Golf Digest, Augusta National is in the process of buying up land around the golf course. The goal is ultimately to build a new and better range and move the parking offsite. Rather than finding a way to get the government to "take" the property, the members of Augusta are offering homeowners some very attractive incentives to sell:

"According to public records and sources familiar with the situation, various LLCs connected to the club began purchasing homes about five years ago. In 2005 the buyers offered the seller the opportunity to stay in the home for approximately two years rent-free and to receive two lifetime badges to the Masters. Now, the LLCs are offering one year of free rent and two lifetime badges.

"In a city where real-estate prices are reasonable, families and businesses have been able to accept generous offers from the LLCs and relocate easily while still walking away with a handsome profit--and those two Masters badges. According to real estate records, one of the LLCs, Berckman Residential Properties, purchased five residential properties between Nov. 28, 2005 and Jan. 13, 2006, for a total of more than $2.4 million, or about $488,000 each. In a recent transaction, a 1,400-square-foot home at the corner of Berckmans Road and Hillside Lane, facing Augusta National, was purchased for $520,000. Such a property normally sells for approximately $100,000, according to a rental agent speaking on the condition of anonymity."

Sounds like a good deal to me. For the complete article, see golfdigest.com.

[rgkeller]

The big surprise to ANGC will be the city of Augusta taking the course and making it a muni.

[Jim Nugent]

The big surprise to ANGC will be the city of Augusta taking the course and making it a muni.

Right, the rationale holds for virtually every town/city/village/golf course in the country.  

[Doug Siebert]

They could claim it is a blighted area, what with all the vacant houses they'll have!

[Kelly Blake Moran]

The big surprise to ANGC will be the city of Augusta taking the course and making it a muni.

Actually, given what the private sector is doing to the course, this may not be a bad idea.

[PThomas]

it's easy to buy stuff when you have the money that AGNC has...not so easy if your club isn't full of multi-zillionaires

[Patrick_Mucci]

it's easy to buy stuff when you have the money that AGNC has...not so easy if your club isn't full of multi-zillionaires

I have news for you.

Even if your club is full of multi-zillionaires it's HARD to get the club to understand the need to purchase adjacent or buffer property.

It's hard to get that vote to pass.

And, it's even harder to pass the assessment to make the purchase once the concept has been approved.

You'll note that most clubs, even clubs where your multi-zillionairs belong, don't own their adjacent property.

The failure to purchase adjacent property is almost a universal failing amongst golf clubs, irrespective of the net worth of their members.

[PThomas]

ah Patrick, when the USGA rolls back the ball   nobody will have anything to worry about ....

[Jim Nugent]

The big surprise to ANGC will be the city of Augusta taking the course and making it a muni.

Actually, given what the private sector is doing to the course, this may not be a bad idea.

Kelly, which architect do you think the city would hire, to direct future re-designs of AMGC (August Municipal Golf Club)?

I put my money on Jack Nicklaus.  

[Doug Siebert]

Patrick,

Is it a failure to purchase adjacent land for a club that's been there for decades and doesn't think about buying it until the price is 20x higher than when the club started?

Why didn't clubs buffer themselves when the club was incorporated?  Or did some of them, only to see the surrounding property later sold off in leiu of assessments the membership didn't want to pay?

As for the "ANGC membership can afford it", it is only because of the tournament generating an insane amount of revenue.  If it wasn't for that it would be a different story.  Just because half the members are guys like Buffett and Gates doesn't mean they all are.  If you were in a club with Gates as a member and the club wanted to put in a $50,000 special assessment for real estate purchases wouldn't you think it is a bit unfair if you were a local businessman for whom $50,000 is a good portion of your yearly income versus Gates for whom $50,000 isn't worth turning around and walking two steps backwards to pick up if dropped?  Though I guess that would be the risk of joining a club where a majority of the membership were far more wealthy than you that runs under 'majority rules'.

Then there's Buffett, who might not want that assessment either because he's not eager to spend money.  He still lives in the house in Omaha he bought for like $17,000 nearly 50 years ago, after all

[Scott Whitley]

The failure to purchase adjacent property is almost a universal failing amongst golf clubs, irrespective of the net worth of their members.

That is so true.  See Islington Golf Club here in Toronto, and their court battle which has resulted in the need to completely redesign Stanley Thompson's third hole, as a recent example.

[Bob_Huntley]

The failure to purchase adjacent property is almost a universal failing amongst golf clubs, irrespective of the net worth of their members.

If one looks at the property above the seventh green and the tee at the eighth  hole at Cypress Point, one can see that this is ground that should have been acquired by the club. Now there is a consortium that is offering two or three acres of land for sale to the right of the thirteenth fairway down to the Seventeen Mile Drive. No matter that it is swampland, if someone came along and built a MaCMansion it would have a deleterious effect on the aesthetics of the hole.

The members could have owned this for a song at one time... now it is too late.

Bob