The drumbeat for decisions about whether a club should look into selling all or part of its property to developers only promises to get louder as buyers search hungrily for available land.
The end of September brought the news that the equity members of the 94-year-old Forest Lake Country Club had voted to reject an outright sale to Toll Brothers, and would instead revisit undertaking a proposed clubhouse renovation and consider other measures in the face of what one of the club’s Board members described as a “difficult financial reality in a very challenging economic environment.”
The first day of October then brought word that the 125-year-old Salem Country Club in Peabody, Mass. was contemplating selling 48 acres adjacent to the 5th hole of its Donald Ross-designed golf course for $13 million, to a developer that would build 280 apartments on the parcel.
Pretty much a day doesn’t go by that we don’t come across new stories about clubs and golf courses deciding to reject the sale or development of all or part of their properties (or being denied the ability to do so), and about others looking into the possibility of completing such a deal. And the drumbeat for these decisions only promises to get louder as some clubs continue to search for new ways to generate working capital that can help them make it through the pandemic (or bail out from it), at the same time buyers are hungrily searching for available land they can quickly develop to meet the current demand for housing in an era of historically low interest rates.
Salem Country Club, as one of the country’s oldest country clubs, with a golf course that has hosted six major championships, is certainly not in desperate straits. Its current President was pretty low-key when contacted about the offer the club has received, saying “We get inquiries from people all the time.” If Salem CC did decide to go through with the sale, it would be pretty safe to assume it would be done in a way that wouldn’t jeopardize or cheapen its traditions or the integrity of its Ross course. But the fact that an offer was made to such a storied property is noteworthy, and an indication of the extent to which this activity is now occurring, and promises to continue.
The Forest Lake situation is also noteworthy, because it captures a real dilemma that many clubs are now facing. We’re not having any trouble finding examples of many other clubs with strong histories and traditions that are turning the negatives of this year into inspiring stories—two more in our latest (October) issue (https://clubandresortbusiness.com/october-2020-issue-marking-a-memorable-year-at-wanakah-cc/) include Lancaster (Pa.) CC and Wanakah CC. But in some cases, gains have been made, at least in part, because other clubs in a market have fallen by the wayside or abandoned a private model.
I don’t know if it swayed the Forest Lake vote or not, but it was interesting that a young non-equity member, writing with the support of a member group known as the “Save FLCC Sweet 13,” was moved to write an impassioned open letter and have it published in a local business publication, laying out all the reasons the sale to Toll Brothers shouldn’t be made (he didn’t include the fact that Toll Brothers itself abandoned its own club operations).
“Before you vote on selling this club, please think about the following,” the Forest Lake member wrote. “This was never an investment for you. This was not a stock market pick, a business endeavor, or a life insurance policy. You paid to be allowed to enjoy a club and when you were done, you were going to leave it better for the next generation to enjoy it the same.
“If you are unhappy with the facilities, the course, the members, the Board or whatever your issue is at this moment, this too shall pass,” the letter continued. “These are small issues compared to the bigger issue of whether or not this club remains intact after 94 years of success.”
As long as there are members, young and old, around with that perspective, I’m confident that the inspirational stories will always outnumber the grim ones.
Joe Barks, Editor
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