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Task Force Tackles North/South Courses

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The Tampa Tribune

Published: January 28, 2009

While the community at large is unlikely to get a glimpse of WCI's financial condition until the end of this month at the earliest, the current economic climate makes it doubtful there will be any improvement in either cash flow or assets at the beleaguered developer.

With that in mind, members of the Sun City Center Community Association formed a task force to gather bids and evaluate them for a study of the North Lakes, Sandpiper and possibly Caloosa Greens golf courses to see what these courses might be worth, what it would take to maintain them and whether they would be profitable under a dues system and/or open play.

As noted in this space earlier, John Luper of WCI told the Community Association Board of Directors at a recent briefing, that the North Lakes and Sandpiper courses were "profitable." He added they were not as profitable as WCI would like. (Note: WCI pays about $160,000 property taxes on its Sun City Center golf courses, which would not have to be paid if the golf courses were owned by a nonprofit 501 (c) 3 corporation.)

Where Are Yesteryear's Golfers

There are probably fewer annual dues paying members each year (WCI has not released financial figures on the courses) and, in my estimation, that is due to two factors: No. 1: A lot of people who came here to play golf 20 or more years ago still live here but don't or can't play the two or three times a week it takes to justify the dues. No. 2: The majority of the new golfers coming into the community are moving into (or have moved into) the Renaissance area which has its own golf course. More importantly, WCI has awarded people who buy homes in Renaissance the privilege of playing the North Lakes and Sandpiper courses at no cost.

Thus the normal attrition is happening but the normal replacement of paying golfers isn't happening. Part of it is the normal aging process found in any town such as ours, where people get older and stop doing things but stay in their homes - and live longer and longer.

So, along these lines, a second task force has been formed by the CA to determine what must be done to increase play on the golf courses here. More on this in the next few weeks.

Four proposals to do the evaluation were received. The difference between the first and second place bidders on a weighted scoring basis was minimal, although the price differential for the analysis was huge. The Task Force proposed the CA hire HVS International of Boulder, Colo. to do the job. Its bid was for $15,000 for the basic study (not including Caloosa Greens or a refresher of the original data at a later time.) Second was National Golf Foundation of Jupiter, Fla., whose fee for the job would be more than double the HVS bid.

Board Vote on Feb. 10

The vote to make the study will be taken at the CA Board meeting on Feb. 10 at 9 a.m. in the Rollins Theatre. I am going to be one of the directors voting for the study because I believe we need to be prepared for any eventuality, and I know WCI is on shaky financial ground. Further, because of the 1984 Agreement between the CA and WCI, if WCI wants to sell the courses, the CA has the right of first refusal and we really MUST know what they're worth and what they will cost to operate before we can make that decision.

If WCI has an offer, the CA has 30 days to say it might be interested and another 90 days to meet the original offer. Ninety days is precious little time when you consider the CA would have to go to the full membership (11,126 members) for an informed referendum on any action regarding the courses.

An added reason for the study is that it is not impossible the Bankruptcy Court judge (and the creditors) could force WCI into Chapter Seven which would make the company dispose (auction?) of its assets. That might happen very fast and I want us to have prior knowledge for decision making, not scrambling around in a half- hearted manner at the last moments.

Finally, I have reason to believe the Sun City Center Golf & Social Club, Inc. would contribute several thousand dollars to the CA for the study, thus bringing the cost down. Money to do the study was considered by last year's budget makers and sits in the contingency budget.

I am sure we're going to go into rumor mode early in the game. As a matter of fact it's already started with people saying there will be assessments and costs and we'll all go broke. And that's before the study is made. There's nothing here about buying the golf courses. All this consists of is a study to evaluate them!

Turn Into A Park?

The Task Force also looked into the costs of turning the North Lakes Golf Course into green space or a park. The maintenance cost estimates from three firms range between $309,680 to $500,000 a year with no income (such as golf dues) to offset the outgo.

It has also been suggested the North Course could be given to Hillsborough County to maintain as a park. With the County seeking to cut expenses wherever it possibly can, it is extremely doubtful the County would accept another half-million dollar expense.

However, if a park comes into being, it certainly will have to be funded somehow.

Bob Black is a journalist and member of the Sun City Center Community Association Board of Directors.

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