Golf Module

The Program has an AIR that runs in Section 14 (“Golf Community Impact”) of Program Setup that allows User to make entries for value impact on certain Land Acreages and both Developer’s and 3rd PHBs’ home sale prices.

The Golf Property Suites software program is one of the first that will be introduced as a stand-alone software. A fully functional version currently runs in the Excel version of MPC/HB.

The decision to allocate acres for a golf course has a profound impact on the economics of a MPC development. The essential core decision must address one question:

“Will a golf course being part of the community enhance the image of the community and directly have a positive impact on (i) the value of the land; and, (ii) home sales prices?”

  • Running with that answer is the matter of the value of Homes built by both Developer and 3rd PHBs.
  • The value enhancement for Developer is obvious.
  • The value enhancement for the Project from LP sales to 3rd PHB’s is two-fold:
    • Greater LP sales proceeds; and,
    • Greater revenue stream from sharing in 3rd PHB home sales revenue (where User selects that option).
  • The Golf Community impact may also enhance the value of land for Apartments, Senior Village and Hotel. Possibly there would be a positive impact on the land value for the other Income Property land applications.

A negative result would be the product of the increase in revenues for the Project does not offset the cost of (i) revenues lost due to acreage allocation to the golf course, (ii) cost of construction of the golf property; and, (iii) the potential for modest returns from golf operations.

If the decision is for the MPC to be a golf community, Developer must determine which of the following golf related scenarios is best for the economics of the Project:

  • The Project building and owning the golf property; or,
  • Selling the golf acreage to a third-party golf course developer/operator.

Within either of those two decisions is the question of golf operations management and how the golf course is used in (i) the marketing of the community, (ii) land parcel sales; and, (iii) home sales. It is essential to note that, the Project has the greatest control over those issues where it is the owner of the golf property.

With few exceptions, the Project will liquidate the golf property at the time it has exhausted its land (through sale and usage) and all of Developer’s homes are sold.

There may be an agreement with 3rd PHB’s that they have some rights to approve the Project selling the golf course while they have land inventory or unsold homes.

It should be expected that the overall cost of developing, owning and operating the golf property will be far less than the value received when the Project sells the golf property.

So, the bet is, the golf course contributes more to Project profits than its incremental Project cost.