Well within reach

When it comes to building your own golf course, a short course can be your dream come true.

Chris Becker, CGCS

Chris Becker, CGCS, used the four barns on the property for aesthetics and golfer protection.

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{short description of image}2000 Leo Feser award candidate

Key Points

{short description of image}Many superintendents dream of owning their own course -- and it is possible!

{short description of image} Creating a short course can allow a superintendent to keep his/her present job during and after construction.

{short description of image}Family and friends can make the best investors.

{short description of image}It offers an opportunity to own a business in which the entire family can be involved.

Pick any successful golf course construction project and behind it you'll find a golf course superintendent. We are the focal point -- part architect, agronomist, builder, accountant -- but rarely owner.

I have spoken with many superintendents from many places over the past 25 years, and without a doubt the No. 1 dream of all those superintendents (including me) has been to own a golf course. For at least 15 years, that dream has been my part-time job, with hundreds of hours spent pursuing properties, only to have each one diminish as the project got closer to reality.

Then one day I woke up and asked myself, "Why does it have to be championship? Why not something within my control, using my knowledge and financial means?"

I began my research on par-3 pitch and putts. Some very good numbers kept coming up, as did articles on the necessity of such facilities for beginners and juniors. These courses generally cost less to build and operate and require minimum acreage. With my knowledge as a golf course superintendent, I knew I could build it while I kept my current job as a superintendent on an 18-hole course 10 miles away.

So my process began. It was roughly broken into four steps:

{short description of image} Find the property and secure it.
{short description of image} Get investment money lined up.
{short description of image} Secure finalization of project.
{short description of image} Build it, grow it, open it, manage it.

Step four is the step that absolutely stalls, breaks down, roadblocks or just plain astonishes people pursuing golf course projects. But with a nine-hole course, it's likely you will be the person to get this step done. This alone will give you equity and the respect of all people involved in the project. Even if you can't do the entire project yourself, the money you'll save with your knowledge and contacts is overwhelming -- even to a skeptical banker.

For step two, potential investors include family, friends, local golfers, the current landowner and other businesspeople. I gave first shot to family, with no need to go any farther. I was able to maintain 45 percent investment, and the other 55 percent went to family. With a small Small Business Administration loan for the group, we were beginning construction as the ink dried.

A local golf course architect did the finalization of the plans for presentation to local authorities and the construction contractor who did the heavy earth moving and shaping. The rest was all our sweet sweat equity.

Find property and secure it
Don't get into too big of a rush. You need several key ingredients: location, road access, proper zoning, the ability to channel water availability, and of course, workable ground. Depending on certain factors, such as trees, buildings and natural terrain, you'll be looking for 7-25 acres.

Becker says it was difficult at times to get his investors to envision the completed course. During the early construction phase, he answered plenty of questions about grow-in and maintenance. He says his knowledge and experience as a superintendent proved invaluable. Shown here is the No. 7 hole during construction.

Latah Short Course was built on 6 acres (with no driving range), utilizing the four barns on the property for aesthetics and golfer protection. We also used trees and shrub fences. The holes range from 60 yards to 113 yards. It has grass tees and approximately 2,500 square feet of greens. A small lake and creek were added for a "big golf course" feel. A two-story, 1,500-square-foot clubhouse (built to look like a barn) and parking for 28 cars complete a fun and safe golf experience that only takes 45 minutes. We are currently negotiating with the adjacent landowner to purchase 10 acres of land to add a driving range.

Securing the property is quite simple. Like buying a house, you negotiate a price and set up terms. A lot of landowners will carry the contract (especially if an improvement such as a golf course is going to be built) or perhaps exchange the land for part ownership in the golf facility. You'll need to put down earnest money -- $1,000 or so -- while you ask for 90 days to investigate permits, zoning, bylaws, preliminary hearings, etc. to make sure the land qualifies for your project.

Also, don't be bashful about visiting the neighbors to gather their support. You of all people can convince them that golf courses are good for our environment.

After years of working toward his dream of owning his own golf course, Chris Becker, CGCS, decided to focus his efforts on creating a short course. His dream has been realized with Latah Short Course in Spokane, Wash., which attracts beginning golfers of all ages. The clubhouse, designed like a barn, sits in the background.
short course

Get investment money
Perhaps you are in a different position than I was and have your own cash flow. However, most of us will need investors. The landowner will be your first prospect, then family and others. These prospects will most likely generate all the money needed for the project.

You'll also want a proper feasibility study done, which you can do yourself. I recommend taking the GCSAA educational seminar "The Challenge of Owning a Golf Course." (Editor's note: This seminar will be offered Monday, Feb. 14 at GCSAA's conference and show in New Orleans.)

Most bankers are very receptive to golf course money requests, but they still have stable "business" investment requirements. A well-done proforma showing sweat equity by you and possibly your other investors will keep actual cash dollars required to start at a much lower and acceptable average income level. Latah Short Course was financed with a loan of about 40 percent of the value of the project and cash input by the group of about 20 percent. A sweat equity value of 40 percent was realized.

Finalize the project
This step basically involves tying up all the loose strings, including:

{short description of image} Forming a company type for your investing group
{short description of image} Finalizing ownership percentages
{short description of image} Securing a loan
{short description of image} Purchasing land
{short description of image} Obtaining construction permits and final architectural drawings
{short description of image} Developing written agreements with contractors
{short description of image} Setting proposed construction timelines and an opening date

Build it, grow it, open it, manage it
Getting my investors to envision the project was a difficult task. I used ladders to show elevated tee views, sprayed scrub grass with green dyes to show where the greens would be and hit golf shots with these potential investors. Still I got blank looks with the question, "This will become that?"

Yes, I assured them, and I am the person who can do it, and do it right for us. The security and confidence I had in myself, as an investing partner with the ability to control the transformation, was for us the magic part that would catapult us as a group to becoming golf course owners.

The No. 9 hole illustrates the extensive sweat equity put into the project by Becker and his investors. Becker says he's learned many things and he's a better superintendent because he must also view the facility with owner's eyes.
project

"But what if it doesn't grow?" they asked. "What kind of grass will we have? Will the greens be like other courses?" These are just more examples of the true anxieties of non-turf professionals. I won't go on; you know the answers to grow-in questions. But remember, you have years of experience and education in the turfgrass field, so don't take for granted the wealth of knowledge that brings.

Opening Latah Short Course
From the first mowing to opening day were weeks of undeniable excitement for our entire group. Television, radio, newspapers and local business journals all hyped the new course in town. The short course was seeded in mid-September 1997 and opened in early June of 1998

Managing the facility at Latah is broken into two categories: golf course maintenance (my end); and the clubhouse, record keeping, payroll, etc. (the responsibility of the investing partners). We have weekly meetings, monthly group meetings and yearly company meetings. We chose this method because it allows us to hire help while still managing the facility ourselves and maintaining current jobs. Later we will look at moving into positions ourselves or hiring for the positions. All areas are operated just like they are at regulation courses -- with budgets, reports, legal issues, etc., to keep abreast with the investing group's need-to-know information.

Now don't think, "Yeah, but this guy is some business major, land baron, entrepreneur." I'm not. Chris Becker, CGCS, that's me! We, as superintendents, are the key to successful golf courses. We take million-dollar projects to successful openings, so why not for ourselves? Because most of us don't have a million dollars! We have jobs that demand many hours of dedication, and we have families with whom we try to spend precious time. This balancing act can be thrown out of sync just trying to put together a major development, let alone carry it out. A short course truly can be a family affair -- building it and working it.

I have learned many new things about golf course management. And I am most definitely a better superintendent from having the opportunity to see dollars and expectations through an owner's eyes.

Update
Latah Short Course has been in operation for 14 months now and continues to show profit. Though weather in June resulted in a loss, overall there has been approximately a 20 to 25 percent increase in revenues from one year ago, with a high repeat-customer rate.

Our original projections of the ratio of juniors and beginning adults was fairly close; however, a steady growth of adult beginners has proved that these players enjoy starting on a short course.

Pace of play has been acceptable, and there hasn't been any need for course marshaling to maintain pace. But the overall high percentage of beginning golfers takes its toll on the golf course -- divots and ball marks being of the most concern. Free clinics to teach course etiquette and management have helped, although golfers seems to retain the information better when they are approached on the course for direct discussions and hands-on learning.

The lack of a driving range has not had an impact on the number of people who come out and play the short course. This may be because golfers don't need to hit balls or warm up for the necessary swing of a short course. However, it is a necessary tool to be able to complete the "full course" offering for lessons and club purchases, especially woods. Also, as we deal with beginners, a familiar facility such as our short course would be an attractive site to go hit balls, adding to revenue.

Becker and his wife, Suzie, stand on their course with their home in the background. Becker says the enjoyment of working on his own course cannot be matched by any job he's ever had.
Becker and wife, Suzie

The workload has been more than I projected. With two full-time employees working, I still must put in up to 20 hours per week, mostly on scheduling and equipment upkeep (greasing, reel to bed knife, etc.) and meetings. Hiring an employee with a mechanical background and paying more will result in less of my time (even with new equipment).

Latah Short Course was built directly across the highway from an 18-hole public course. There is no competition for golfers. That facility recommends us to those who should not yet be playing on a regulation course, and we "grow 'em" and send them back for years of business.

The enjoyment of working on my own course cannot be matched by any job I have ever had. And beginning golfers seem to enjoy the golf experience a lot more than advanced players do. It has been an absolute joy to work with children, women and seniors as they grow into the game of golf. The early-stage advancements can be incredible, with only one drawback: They move on, ready to play regulation courses. The game of golf is strong, though, and more arrive daily to take on the challenges of this great game.


Chris Becker, a 23-year GCSAA member, is the owner of Latah Short Course in Spokane, Wash. He is also superintendent at Fairways Golf Course in Spokane and has been there 12 years.