News:

This discussion group is best enjoyed using Google Chrome, Firefox or Safari.


Carl Nichols

  • Karma: +0/-0
Re: Johnny Miller New
« Reply #25 on: February 26, 2014, 11:02:44 AM »
I remember playing the course a couple of times when it was open and it was not on the list of my favorites as it had some very forced holes and strange playing characteristics.  I would recommend that an architect be hired to review whatever plans they have and walk the property to see what should be done and perhaps limit it to 18 holes until you get some financial footing.  Richard Mandell did some great work at Army Navy and maybe he can give you some suggestions.  It is unfortunate that I recently played another Johnny Miller course, Binks Forest in West Palm Beach, Florida, which has also seen some really tough financial times and was so bad that I left rather than play the back nine.

Jerry-
I agree, especially with the part I've highlighted.  I also seem to recall that it wasn't a great walking course.
« Last Edit: February 28, 2014, 02:12:54 PM by Carl Nichols »

Sean Remington (SBR)

  • Karma: +0/-0
Re: Johnny Miller
« Reply #26 on: February 26, 2014, 07:57:10 PM »
Sean, how much would it cost to do that? 

One estimate I got today was approx. $1,000 per acre for sprigging Latitude 36.  There would be added costs for preparations but it seems possible to me that you could do 40 acres all in for under $100K

Bruce Katona

  • Karma: +0/-0
Re: Johnny Miller
« Reply #27 on: February 27, 2014, 05:00:39 PM »
It's difficult to say that for $1 plus a large investment in CAPEX, one could not make a $20 million venture profitable.

Others with more knowledge of agronomy can opine on bermuda or bent, that's a detail.

Assume the following:

1. Temp. clubhouse for the 1st few years - saves $$$
2. It will take 12 months from closing to re-open - turf needs to be re-established, grown in, weeded, etc
3. Maintenance staff & equipment need to be added to care for what is effectively a new "grow-in".
4. Marketing Plan created to bring back the customer.
5. Permitting- a meeting with The County Officials will be required.  No matter the noise, the broken golf course isn;t something elected officails want in their County.  There may be some permitting that requires updtaing or work completed the originals guys didn't do, but that can occur in parrallel to the "grow-in".

6. Without any real due diligence, the CAPEX on this could be $3.0 million....$1.0 million to get te place shaped up (sod, seed, tree work, fix paths/bridges, etc.), 1.0 million for equipment, paying outstanding fees, professionals services, closing, etc. and $1.0 million in carry for the grow-in (staff, fert & chemicals,utilities,G&A,etc.)

At $3.0 million all in, the numbers should work.

JMHO
QED
BK

Dave Doxey

  • Karma: +0/-0
Re: Johnny Miller
« Reply #28 on: February 27, 2014, 07:26:14 PM »
Great info, thanks Bruce.  $3M to get started - makes sense.  Getting the course for "free" is not the whole story! There would be debt to carry even then.

How do deals with course management/operating companies work?  Who takes the risk on profitability?  It is a lease to the management company, simply employing them while carrying the costs & risk, or something else? 

What sort of business planning might be expected from a golf management consultant?

Tags:
Tags:

An Error Has Occurred!

Call to undefined function theme_linktree()
Back