We Bought A Golf Course
Now what?
By Taylor Baxter
Photos: David Kennedy
On February 2, 2021, the Pontiac City Council voted to purchase the Pontiac Elks Club property. In Illinois, golf unofficially begins in mid-March, weather-dependent, which gave us roughly two months to open the facility as a public golf course. With questions swirling from the public about the purchase and even more questions behind the scenes from staff members as to how we were going to pull this off successfully, we went to work. The following is a glimpse—from a municipality perspective—of how we answered those questions, as well as some insight into how the city and the local Elks Club worked together to transition ownership and operations of this once semi-public, 160-acre, 18-hole course.
One Question—Why?
Being in the golf course business was not in front of the mind in 2020 and 2021, and it certainly was not one of the big-ticket items during budget workshops. Regardless, when the opportunity presented itself, city officials dove in, trying to understand the benefits of keeping the golf course open. What would happen if this asset was no longer here? What impact would it have locally? The park department’s vision statement is “to be the chief provider of leisure services through the preservation and expansion of facilities, parks, programs, and greenspace for residents to enjoy.” If that doesn’t scream keeping a golf course in a community, what does? The role of parks and recreation is to provide experiences that promote healthy lifestyles, enhanced social connections, and fun in communities. In talking this over with staff members, it was decided that, if the acquisition went through, we were up for the challenge.
Financial Obligations
The city’s fiscal year begins April 1 and ends March 31 each year. So, the timing of this purchase really threw a twist into the proposed budget. The city’s financial obligations and staffing needs in order to operate the course were raised by the public and city officials. The city administrator explained that financing the $500,000 purchase was a 15-year note, with the idea of stretching it out over time. Also, debt service was rolled into the operating budget, and the users of the facility—the golfers—would pay down that debt. He also noted that financing included greens fees and other golf functions over the years; thus, $500,000 would not immediately be drained from the general fund (those who operate with a general fund can imagine the impact a hit like this would have on a smaller municipality’s budget). Without the financial and visionary leadership of the city administrator, city attorney, mayor, and city council, this purchase would not have been completed.
Now What?
With the 30-day clock ticking, a decision was made to change the course name temporarily, with the intention of going through a comprehensive brand and marketing overhaul after the first year. We wanted to make sure that, when we did decide to rename the course, it was intentional and researched, not rushed. Many areas remained the same for the customer in the first year, including pass prices, pro-shop items, course guides, etc. The plan was to remain consistent with what customers had come to expect. The first year was consumed by learning the back-end, tee-sheet management software, discovering items that needed to be addressed immediately, inventorying areas to adjust and keep for next year, and sorting out similar details. Year one was simply a period of learning alongside the previous owners. The Elks Club taught staff members everything they knew to make the transition a smooth one, and we were grateful.
A Team Effort
As a municipality, one of our best assets is the ability to tap into resources within each department. The golf course project was no different. The Wastewater Treatment Department assists with irrigation issues and pump problems. The Streets and Maintenance Department pitches in by trimming trees, removing brush after a large storm, assisting with mowing, patching the cart paths as needed, and engaging in other miscellaneous tasks. The Tourism Department markets and communicates with various audiences in a 5-, 50-, and 500-mile radius, and targets golfers within those boundaries, which is crucial to the bottom line. This venture has been a team effort every step of the way; we do whatever needs to be done to protect this financial investment and community asset.
Branding And Marketing
City officials realize the value of keeping rates affordable for residents. For example, the city operates a 50,000-square-foot community center. While rates could be higher, council has has subsidized it every year since construction in 2000, instead of operating for a profit. The golf course is the first recreational facility where operating as close to a profit as possible is a priority. For this reason, an experienced branding and marketing firm was brought in to assist in providing tools for the future. Jessie Scheunemann with Campfire Concepts in Champaign, Ill., really helped open our eyes to the course’s strengths, weaknesses, opportunities, and challenges—both internally and externally. Before we could even begin to market to customers, we needed to gain an understanding as to who we are and where we are positioned compared to competitors. Working through this workshop session made us realize where the course is positioned, both good and bad. As time passed, several questions were answered. One remained at the top: “What is the expected experience at the course?” The answer? “Quality golf. Striking views. Outstanding service.” In keeping those qualities at the forefront, positive outcomes occur. A portion of the branding and marketing plan was to permanently rename the course: The Oaks at River’s Edge. Marketing efforts focused on four strategies:
1. Picturesque (topographically healthy)
2. Accessible (open to everyone)
3. Community-oriented (enjoyable, friendly)
4. Championship-level (challenging).
The marketing mix strategy included the Four Ps:
1. Product
2. Pricing
3. Place
4. Promotion.
We took a deep dive into each of these to maximize the potential reach of golfers and non-golfers alike. In the end, this facility is a community asset, not just a golf course!
Year Two—Roles And Responsibilities
With a marketing plan in place after one year, understanding who is responsible for each aspect of the golf business is imperative. There are various areas of responsibility in operating a golf course:
Budgeting and forecasting finances
Maintaining the course
Attracting and retaining pass holders
Accounting for daily deposits and financing
Creating programs and leagues
Implementing marketing and communications strategies
Developing outing contracts and recruiting new customers
Overseeing pro-shop staff (including hiring, training, scheduling, firing)
Keeping track of pro-shop inventory (i.e., ordering, pricing, etc.)
Building relationships and communicating with employers, businesses, and hotels
Obtaining hole sponsorships.
For anyone in a similar scenario, make sure you know who oversees each area and that roles are clearly defined. Although the first year was difficult for many reasons, one of the main ones was the grey area of roles and responsibilities, from the top down. Sometimes staff members were being told one thing from me and another from the Director of Golf. That isn’t the case anymore. We have had many conversations internally about each person’s strengths and weaknesses, and who is really responsible for each core area. This has helped tremendously in making the work more efficient and streamlined, but more importantly in creating a better experience for customers.
Taylor Baxter is the Director of Parks and Recreation for the city of Pontiac in Illinois. Reach her at (815) 844-6818, or ponparks@pontiac.org.