Over the years, NGCOA has written many articles and Accelerate posts on the subject of Eminent Domain and how all businesses are vulnerable to its abuse by government officials. Generally, private property is acquired through eminent domain for the betterment of its citizens.
There is now a case taking place in Harrison, New York, that, if approved, would set a precedent that should concern every business owner, especially golf courses. In this case, a private, not-for-profit member-owned golf club is unique from other types of small businesses. Its members cover the costs of operations, and if membership declines, the costs of operations are shared by the remaining members. Sometimes, a private golf club is coveted by the local government. What is being considered in Harrison, NY, could have far-reaching consequences to our industry.
The town of Harrison is preparing to start an eminent domain proceeding to acquire Willow Ridge Country Club. Willow Ridge is a private, not-for-profit member-owned club that has lost members over the last few years and seen costs to members increase as a result. It has sought potential partners to work with the club to allow it to continue at reasonable costs to its members. Harrison is trying to take the club at this time, claiming, improperly, that it is preventing residential development by so doing and helping the club. Since the property is zoned for one-acre lot residential development, the club could be so developed, but its members desire to keep it as a private country club.
The city became aware of the club members' plans and has created a public relations campaign designed to convince the public that Harrison should acquire the club and convert it to a public golf course. Instead of offering a competitive bid to the owners, city leaders knew they have the capability to take this property through eminent domain. Once this became public knowledge, other proposals the club had received were pulled off the table. This now leaves the club with little options but to ensure they receive fair market value for their facility. In New York, they appraise property based on the highest and best use. That could cost Harrison taxpayers tens of millions of dollars and raise their taxes.
Hopefully, the members will be able to recover the investment. While the community will have a very nice municipal golf operation, the golf industry can only hope this is not a practice others will follow! They have their first public hearing on this matter later this week and we remain hopeful the members of the Willow Ridge CC will succeed in their efforts to cease this action but if not they will be properly compensated for their business and property.
We would like to thank the members of the Willow Ridge Country Club for sharing their story with us.
Received this in my inbox this am. I'd long known about the plight of Willow Ridge, and even spent some time modeling a potential involvement. This is a unique situation in a golf-rich, wealthy neighborhood.
Multiple parties were interested but as the letter states, were ultimately scared away from a messy and eventually ugly fight with the local Harrison, NY government. Two neighboring private courses (Westchester CC & Apawamis) both were interested in parts of WR, but neither wanted to absorb even a single WR member, diminishing the notion of any merger or takeover.
Harrison is one of the county's wealthiest neighborhoods. The "dirt" there is quite valuable. Westchester has a dearth of public golf, especially when measured against the number of high-quality private club golf immediately nearby (Fenway, Quaker Ridge, Winged Foot, Wykagyl, Metropolis, etc....) Some county courses exist and are always crowded, but the level of quality isn't comparable.
While my inclination to oppose any governmental seizure remains very strong, should this kind of eminent domain deserve an endorsement of any measure? Should it be strenuously opposed? Willow Ridge has a number of fervent golfing members, but it was always a course vulnerable to this kind of demise.
Thoughts from the Treehouse?