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PUBLIC RECREATION

Golf courses raise property values and draw taxpayers, say officials

City officials say the facilities raise property values and draw taxpayers to a region.

The Beavercreek Golf Club typically earns enough money to cover operating expenses, but not enough to cover capital and debt costs. In 2008 Nearly $1 million of the city's general fund went toward repaying the $9.5 million construction debt from 1997. File photo

Bill Reinke The Beavercreek Golf Club typically earns enough money to cover operating expenses, but not enough to cover capital and debt costs. In 2008 Nearly $1 million of the city's general fund went toward repaying the $9.5 million construction debt from 1997. File photo

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By Christopher Magan, Staff Writer Updated 6:55 PM Saturday, November 28, 2009

BEAVERCREEK — Nearly $1 million of the city’s general fund in 2008 went toward repaying $9.5 million construction debt from 1997 when the Beavercreek Golf Club was built.

The city has no income tax, so the money must come from the property taxes the city collects without a specific voted purpose.

Like many municipally owned courses in the Miami Valley, the Beavercreek Golf Club typically earns enough money to cover operating expenses, but it comes nowhere near bringing in enough revenue to cover capital and debt costs.

“I think that it is something the City Council will look at more closely in the years to come,” said City Manager Michael Cornell. “The consensus is it should remain open for the time being. Looking long-term there is a value to the community.”

Cornell said city leaders have expected to cover the debt and his explanation echoes those of many city managers whose communities subsidize golf courses.

Springboro City Manager Christine Thompson said the city’s Heatherwoode Golf Club has been on a “roller coaster ride” during her two decades with the city. Like Beavercreek, Springboro leaders will cover the courses’ construction debt, which is about $330,000 annually, but expects the course to break even.

“I believe it will be an asset when the debt payments are made,” Thompson said.

Dayton and its six 18-hole courses at three facilities seem to be the exception to the subsidy rule. There were times when the city-operated courses received tax dollars, but former City Manager Jim Dinneen put a stop to it, said Joe Parlette, Dayton’s golf and administrative support manager. This year Community, Kittyhawk and Madden courses will pull in a small profit after expenses and $280,000 in debt payments.

“We operate strictly off revenue,” Parlette said. “It’s through efficiency mainly and accounting for every penny that comes in and goes out.”

They may be costly, but city leaders say golf courses are more than just sporting facilities, they are assets that raise property values and draw taxpayers to a region.

Centerville’s Golf Club at Yankee Trace lost $150,000 in 2008 after annual debt service payments were included. But city officials say the course has drawn people to build at Yankee Trace, helping the city’s bottom line in other ways — via property taxes on 900 largely high-end homes and income tax payments from those residents.

Heatherwoode also has been a development draw and an amenity for Springboro, according to Thompson. “We have people that come to Heatherwoode from all over the world to play golf. They get an impression of our community and our region,” she said.

Other times, city leaders purchase private courses to pre-empt residential development. Mason paid $9 million in 2006 to buy the Golf Center at Kings Island, which was in danger of slowly being sold off for high-density residential development. City leaders argued, at the time, more condos and cheaper homes would burden the school district and city.

Last year, Mason paid $1.5 million to cover operating, capital and debt. The course is expected to cost the city a similar amount this year, according to city records.

Local courses aren’t the only municipally owned ones struggling. John Mahoney, deputy director of the Ohio Municipal League, said city-owned courses across the state are “having some troubles. It’s hard to sell a golf course,” he said.

Still, communities are trying to make their courses profitable. Cornell said his Beavercreek golf club team is branching out into banquets and other moneymaking events. “The current management team has done an excellent job keeping expenses in the black. I’m very pleased with their ability to operate the course. I feel fairly comfortable they are close to breaking even.”

Those numbers, Cornell admits, do not include debt service, which will continue to drain the city’s general fund until 2023.

Staff writer Jeremy Kelley contributed reporting for this story.

Contact this reporter at (937) 225-2342 or cmagan@DaytonDailyNews.com.

Estimated annual golf course subsidies

Beavercreek: $1 million

Springboro: $330,000

Dayton: $0

Springfield: $200,000

Troy: $50,000

Piqua: $150,000

Mason: $1.5 million

Miamisburg: $0

Miamisburg: $250,000

Centerville: $150,000

Vandalia: $69,000

Middletown: $215,000 loan

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Let's put this on the next ballot -- should Beavercreek tax payers continue to subsidize a money-losing golf course? There are already too many courses in this area. Or, since taxpayers are paying for it, let everyone pay for free -- all they have to do is show their tax bill. That should more than cover greens fees. Ha!

There are already 2 country clubs in Beavercreek -- perhaps the city could make an arrangement where residents play there for free. Soumnds like a good plan to me!

Katie
12:20 PM, 11/30/2009

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All this is Bull****, the city tried to make everyone pay for something mostly the rich use, I hope this city leaders burn in the firey pits of hell for trying to pull this one over on the people of Beavercreek

ELROD PERKINS
12:04 PM, 11/29/2009

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Only ignorant politicians and DDN reporters would believe that raising property taxes would bring more people in...what a ridiculous title for this article!

Frank
10:54 AM, 11/29/2009

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You are right, they get the govt they deserve. I don't support city owned entertainment facilities, though I hear some work. I hear that Vandalia has a nice facility, but it serves a much wider population than the guys smacking a small ball around. Does Beavercreek have similar facilities for people who like to play racketball? Golf isn't a right, it should be supported by those who play and not those who live there.

To Told you So
10:23 AM, 11/29/2009

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this is addressed to HD :

Look at Springboro, there was only one council member that called for the city to cut its' losses and sell Heatherwood to a private company. Guess what? He was voted out of office this month. All the other council members there walked in lock step to continue pouring money down a bottomless rat hole. People get the government they deserve.

told you so
9:37 AM, 11/29/2009

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