FORMER OAKRIDGE COUNTRY CLUB PROPERTY
Concept Plan – February 2013
Oakridge Country Club experienced moderate success
in the late 1980’s and 1990’s as a private country club operation
under multiple owners. In 2001 the property was
purchased by an affiliate of IRI Golf and began an
operational decline which led to closure of the golf course
and ultimate lender foreclosure in late 2010. The golf course
and club served as the hub of the Oakridge community for
almost thirty years, fostering strong property values and
community pride. Since the closure of the golf course,
property values have declined and an air of substantial
uncertainty has existed within the community.
In October 2012, Duck Creek Golf, LP was formed and
purchased the former golf course and club property from
Hillcrest Bank. Duck Creek Golf, LP is an affiliate of
Austin based golf course investment and management
company, OnCourse Strategies, in partnership with Larry Galloway,
a Dallas area resident and golf industry veteran.
The property was purchased with the intent of analyzing
the feasibility of revival of the golf course operation or potential
portional resale of the property.
Through months of physical plant evaluation and mar
ket study, Duck Creek Golf, LP has determined that
there is feasibility potential in the establishment of a
mid-market daily fee golf course operation on the property.
There appears to be no economic viability to
revival of a full service private country club. In
order to focus on daily fee golf operations, the
ownership group intends to sell the swim and tennis facilities to
someone interested in that business operation or for a
compatible repurposing of that portion of the property.
Additionally, a daily fee golf operation requires a less extensive
clubhouse facility than the total complex available, thus
options are being explored for the possible lease of a portion of the clubhouse to
a banquet and catering operation.
Since the clubhouse suffers from water damage which
occurred in early 2011, plus the deterioration of non-use
for two and half years, there are extensive repairs necessary to
the building. One level of repairs would be required to
ready the building for a daily fee golf operation and
another level would be required to make the building fully
operational for a banquet, dining or catering opera
tion. The golf course has reasonable coverage of turf which can
be cultivated and revived in most playing areas. However,
the greens must be replanted and extensive work is
required to renovate or remove golf course bunkering.
Substantial cleanup of fringe areas of the golf course along with
extensive repairs to the irrigation system will also be required.
Provision of a quality daily fee golf course operation is anticipated,
which requires less physical plant than a country club operation.
Conversations are underway with several
parties interested in purchasing the swim and tennis
facilities along with a portion of the paved parking area.
Efforts will be made to secure a viable purchaser of that
property by April. Discussions have also been held
with banquet and catering operators and those will continue.
If an acceptable option can be identified, then an arrangement
will be made with that operator and the full clubhouse would
be repaired for dual use. If no acceptable option comes forth,
then only a portion of the clubhouse would be repaired over the
next four to six months for use in a daily fee golf operation.
With the Spring bermuda grass growing season
approaching, golf course turf restoration would
begin in April. Ground temperatures would not allow replanting
of greens turf before early to mid-May with a 60-75 day growin
period required to reestablish putting surfaces. Bunker work
and irrigation repairs would be completed between April and June.
Additional work would be required on the driving range and
practice putting green areas. A fleet of maintenance
equipment would have to be put in place to begin golf course
restoration and an aggressive project plan would produce
a playable golf course by mid-summer 2013.
The viability of a quality daily fee golf operation
is predicated on a low property investment basis
and efficient operating structure coupled with development
of a strong customer base and revenues. These components
are vital to establishment of a long term, healthy golf course
operation. The symbiotic relationship between the golf course
and surrounding residential community is also a very important
component to their mutual success and vitality. For the golf course
to be fiscally sound, the community must support it, which in return
leads to enhancement of the community reputation, pride and value.
Duck Creek Golf, LP has made initial cash investment
to acquire the property and bears the ongoing maintenance
and holding costs. This ownership entity expects to recover
some investment capital through sale of the swim and
tennis property and anticipates making substantial
additional investment in golf course and clubhouse
repairs and renovations. However, to proceed with revival
of the golf course and to complete the project with a
comfortable investment basis, participation by the community is
necessary. The community has suffered material impact
to property values over the past few years and would conversely
experience favorable value enhancement with a renewed
golf course operation. Thus a viable golf course should be
of vital importance to both the community and property owner.
Oakridge is a community of almost 1200 homes with
400+ of them backing up to the golf course property.
To facilitate the golf course revival, Duck Creek Golf, LP
needs a $400,000 collective capital contribution from
the Oakridge community. A community
representative will be asked to work with residents
to secure commitments for and collect these funds
to be held in trust. This community fund would be paid over to
Duck Creek Golf, LP only after the golf course is
reopened for operation, but would be firmly committed
before renovations begin. The funding would constitute a good faith
investment by the community in restoration of the golf course
and enhancement of neighborhood property values. No ownership
or membership benefits would be vested in the contributing
residents as a result of the community funding.
With a commitment of community funding, Duck Creek
Golf, LP would proceed with golf course and clubhouse
renovations as outlined above with the comfort that it would
have a favorable investment basis in the property.
Again, given the high cost of operating a golf course and the many
associated risk factors, a low ownership basis in
the property with minimal debt service is paramount
to financial stability. Under this plan, the golf course would
reopen by mid-summer as a daily fee golf course and grill
operation offering daily fee pricing as well as a variety of
annual golf memberships. With the anticipated cost basis
and given the experience and expertise of the ownership
principals, the likelihood of immediate and sustainable
operational success is very high.
Duck Creek Golf, LP principals will meet with Oakridge
community leaders and residents regarding details of
the project, with expectation that the community leaders would
determine the means and process for the community funding.
A bilateral specific performance agreement would be structured
with community funding to be in place by March 31, 2013.
The concept herein is for information and discussio
n purposes only and does not constitute a formal ag
reement or obligation of any parties mentioned. Further
discussion and planning will be required to facilitate action
or an agreement.
For Discussion & Additional Information Contact:
J. Michael Ussery Larry Galloway