Step 1: Project Feasibility

All golf course projects begin with a vision. The trick is to determine whether the vision is financially sound. The lingering question of “Should we do this?” can best be answered by bringing together a team of experts to analyze the facts.

Where Do You Begin?

Naturally, development considerations vary greatly depending on whether the proposed golf course is to be public/municipal or private. However, there are key elements common to both types of developments. Population as well as economic conditions in a given area must be studied to determine the suitability of such a project.

Some questions which must be addressed are:

• What is the population within a 20-mile radius of the proposed site?
• How many other public and private courses are in the area?
• What is the projected volume of play and fees?
• What are the projected operating expenses?
• Have any courses in the area failed? Why?
• Are employment levels and per capita income at suitable levels?

Once this preliminary information has been gathered and the data seems favorable, it is wise to seek professional golf course architectural help in preparing a master plan.

Should You or Shouldn't You?

Information from market analysis, feasibility study and the economic impact is critical to decision making on a potential project.

Market Analysis

1. Identify target markets
2. Research the history of competing facilities

Feasibility Studies

1. Understanding of financial viability
2. Recommendations of fees
3. Estimate of costs to construct and operate
4. Identify capital to support
5. Determine facility type

Economic Impact

1. By area
2. Taxes or revenue
3. Employment opportunity
4. Recreational/living opportunity

What is the Cost of a Golf Course?

Golf course construction costs vary greatly throughout the country. Generally speaking, most developers or communities can expect to spend at least $1.6 million for a modern regulation-length golf course, not including the cost of the land. A golf course construction budget, which can be affected by location and condition of land, might look like this:

• Construction of 18-hole course* $1.6 million to $4.5 million
• Maintenance Equipment $300,000 to $500,000
• Maintenance Building $125,000 to $450,000
• Totals $2,025,000 to $5,450,000

*Includes basic golf course construction: clearing, grading, drainage, construction of tees, fairway and fairway features, greens, sand bunkers, irrigation system, seeding and grassing, shelter, bridges and cart paths.

It must be emphasized that these cost figures are intended only as rough guidelines and do not include the cost of the land, clubhouse, entry road and parking lots, other support facilities, the golf course architect, and other necessary professional fees. In addition, maintenance costs usually run between $250,000 and $650,000 annually, plus club operations and golf cart fleets. Costs will vary depending upon the type of facility constructed, terrain and soil conditions, climate and development goals of the project.

Next: Choosing a Golf Course Architect

References

The Economic Impact and Benefits of Golf Course Development

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