While I, personally, do not believe that government should be in the golf business, I recognize that Gwinnett residents have not only not complained about the county’s provision of recreation facilities and programs but have agreed to be taxed a little bit extra to pay for them.

But the golf course has been a losing proposition for many years. The county bought the course for $3.4 million in 1988; apparently spent $1.5 million on upgrades; then “sold” it in 2000 to a newly-formed golf authority at an apparent loss. The authority borrowed another $1.5 million for additional improvements, which the county backed.

The course has never even truly broken even. Although the course paid for its operating expenses and most of the bank loan, it didn’t make a single principal payment on the original purchase price. For the past three years, Collins Hill has not paid a dime—interest or principal—on its original obligation to the county. Last year, in the midst of a failing national economy and a growing financial crisis at home, a majority of the Commissioners agreed to back a $250,000 line of credit to keep the course afloat.

In other words, the Collins Hill Golf Club has never been able to survive without the taxpayers’ help. And there is little chance of that improving. Golf courses are failing or floundering in red ink across the country. The county is not in a position to carry such a high-maintenance facility; especially one for which demand has steadily decreased in recent years. It is highly likely, as well, that the economy will not see any significant recovery for several years.

The County Commission should ask itself one question—if the county was offered or had the opportunity to purchase a golf course today, would it do so? I would hope not. The only reason that the county is back in the golf business now is to keep a deep financial hole from getting deeper.

The county created the golf authority and sold the course because, according to an 8/14 AJC article, “the new authority‚ unlike the county‚ could focus solely on running the golf course. County officials again vowed the course would pay for itself.”

It has not done so, and the County Commission would be foolish to believe that it could operate the course profitably today. It is time to cut our losses and walk away.

One of the Engage Gwinnett committee’s recommendations was to “[d]evelop and implement a workout strategy for the golf course to alleviate future risk associated with the county’s debt obligation.” Here’s my solution:

1. Demand the resignation of all current golf authority members; not for their failure to manage the course but so that a new panel of successful, business-minded individuals can oversee the property’s liquidation;
2. Shut down the facility to minimize operating costs. Provide only that maintenance sufficient to protect the property’s sale value;
3. Sell the facility promptly, if even at a loss. Putting the property back on the tax rolls will, over time, compensate for the short sale. Sell to an entity that has the financial wherewithal to pay; the county should not subsidize the deal in any way;
4. If needed to facilitate the sale, the transaction could be contingent on the rezoning of the property to as low a residential density as reasonable, to minimize the impact of the transition on surrounding properties.

If you have a strong opinion on the future of the golf course, you should let the Commissioners hear your views. You can contact all of the board members with a single email via this contact form.

Gwinnett to repossess golf course  | ajc.com

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