Okay…here are my thoughts…
But first please ensure I’ve got the background down…
David Edel is in possession of an old Alister Mackenzie course routing that was originally planned to be built on a private estate in Argentina. He has found suitable property in Texas, just outside of Austin, which the course could be built on. This land is owned by a Limited Partnership.
He has decided that Mike Devries will be the architect. And Mike has looked at things and he thinks he can do adequate justice to the plans and, essentially, build this bad boy in a way that does its Mackenzie roots proud.
The club will be old school…a modest clubhouse, no paved roads, no houses, just a private club with a few cabins for members to buy or rent, and limited outside play will be permited.
Additionally, David has the plans to a few other Mackenzie routings.
Do I have that right?
Assuming yes...
Given the slowing economy, banks are not interested in lending for this project and Metropolatin RED doesn’t have the funds to build it.
Is this right?
So, the question is...is it worth proceeding and/or how do you proceed?
I am not a golf course construction guru, but I can put two and two together and I have some experience in business.
Point #1---It is possible that if marketed correctly, it could be the next big thing. A new Mackenzie course…the guy behind Cypress Point and Augusta. It could be a huge home run. IF marketed correctly!!!!!
Point #2---To make it happen you need the man power. It sounds like you’ve got that covered. Devries seems awesome and I am sure all the other associated with it are as well. Do you have the marketing contacts to get the word out?
Point #3—You need money. Banks aren’t lending and Metro RED doesn’t have the funds. You know what I say…GREAT!!!! Loans and borrowed money can be the beginning of the end to any business entity. Interest carry kills!!!
How do we solve this issue? Frankly, I don’t think getting into the specific financial points online makes any sense whatsoever. But I will offer this up…
Dr. Mackenzie himself is on record as saying that if you don’t have enough money to build an entire golf course build as many first rate holes as you can…generate some revenue off of that…save up…then build some more. Well…do that.
Take personal monies of any and all interested parties, give them some type of ownership stake…then build one hole at a time. However, I think it is vital that ONE person be the decision maker…no matter how many people contribute capital…to maximize the probability of this thing being successful one guy must make the key decisions. Also, have Mike D. pick and choose which holes would inspire more people to join and/or contribute funds and build those holes first.
You can give incentive offers to people contributing capital or joining first. Lower membership rates, more perks, “founding member”status, profit share, whatever.
Next you will need to run numbers and targets need to be established for members/funds raised per holes build and the like…but you get what I am driving at, right?
FYI…I would be happy to discuss any of this with you offline if you like.
This type of Mackenzie course being built with the Mackenzie “one hole at a time model” can be marketed to pique interest. Essentially turning what some might consider a weakness into a strength.
Point #4---Also, if there is enough land available you can also incent people to join by trying to build the other 2 or 3 Mackenzie courses right there on site when the time is right. OR you could offer memberships to the other 2 or 3 Mackenzie clubs (assuming they will be built somewhere else) if members pony up $X to help build course #1. You could use profits off of course #1 to help seed the other 2 or 3. But if this one is successful, raising capital for the others will be a snap.
Anyway, I will stop now…but I could bore you to death.
As always, my apologies for overlooking key players and/or not mentioning the appropriate names and the like. I am ignorant on a lot of this and just trying to maybe add a good idea here and there.