- April 29, 2024
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Citing poor weather conditions and a dip in the golf industry, Kemper Sports announced Tuesday that the Palm Harbor Golf Club will see a deficit for the fourth straight year.
The projected loss is about $100,000, according to Chris Quinn, the city’s finance director. Kemper Sports, the third-party company that runs the golf course, took over in 2009, when the city gained ownership of the course. Back then, Kemper estimated the city would see a profit by this year. But that’s not the case.
The reason for the deficit is because of unfriendly weather and a dip — industry-wide — in the game, said Ricardo Catarino, director of regional operations.
Pressures from work, less time and the economy are all factors, he said, adding that rounds are down 11% over the past 10 years.
From 2011-2012 to 2012-2013, the Palm Harbor Golf Club saw an 11% decrease in playable golf days. That translated to about 39,000 rounds of golf played, down from about 44,000 last year.
“We are weather-dependent, so when that happens, there’s only so much we can do,” said Rich Stanfield, general manager of the course.
Despite the dips, Catarino estimates the golf course will see a profit in the upcoming fiscal year. The City Council hopes he’s right.
One amenity Palm Harbor lacks compared to its competitors is a large clubhouse with a bar, full restaurant and space to host private events; Palm Harbor’s clubhouse is rather small.
“You need a clubhouse, but you can’t do it because revenue doesn’t support it,” City Councilman Bill Lewis said. “But to me, that’s an attraction.”
City Councilman Bill McGuire attributed the lack of profit to two things: weather and a clubhouse.
He suggested looking at some sort of joint venture where a private investor could come in and provide capital to build a clubhouse.
“As we put our budget together this year, and we look into income and outgo, Kemper Sports is the only real negative on our balance sheet, and we’re trying to help you guys get where we all need to be,” McGuire said, noting that he doesn’t want the city putting money down a “rat hole.”
Catarino said it was a fair assumption in 2009 to be profitable four years later. “The end game was to make (the course) self-sustaining,” Catarino said, reiterating that although a clubhouse would help, the weather played a large role.
“If you’re saying that’s hurting you because you don’t have a luxurious clubhouse with lots of space, it would behoove us to find a solution to that,” McGuire said. “But the solution is not go to be with city revenue.”
