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Rough times take toll on city's golf course
(by Sue Reid - October 01, 2009)
Rough times take toll on city's golf course
By SUE REID
Grantwood Golf Course has a couple of tough years ahead of it, director Gary Mazzeo told Solon City Council's finance committee last week.
The course is experiencing similar scenarios to many area courses in light of the state of the economy, Mr. Mazzeo said.
"It's a decision the city is going to have to make, whether they want to pursue this," he said. "I don't know how long we can keep going losing like this and with the reduction of greens fees each year and still stay in business."
His comments were part of a summary report update given to the committee.
Mr. Mazzeo said that, compared to last year, the course is down $40,000 in its main component, which is greens fees. That is mainly due to the discounts and price cuts offered to try to stay competitive with other courses, he said.
Last year, the cost per round at Grantwood for 18 holes was averaging $26.80, and this year it is $23.81 for a "significant drop," he said.
"We've accomplished our goal of having people there, but it comes with a price," Mr. Mazzeo said. He said that fall rates, which will take effect the first week of October, will feature even more of a reduction to keep up with other courses.
Grantwood is only down 150 rounds compared to last year, which is good, Mr. Mazzeo said. "We're getting the play," he said, "but the price per round is going down. We brought a lot of new faces here, and hope that pays off next year."
Revenues also are down for the pro shop and gas wells, he said. The pro shop sales are down about $30,000 compared to last year, and the gas well revenues are down $10,000 to date. Revenue is up, however, for golf-cart rentals and the driving range, Mr. Mazzeo said. That is because the course owns the carts now and does not have to share a percentage with the golf-cart companies. Through August, revenue for golf-cart rental was $146,000, compared to $107,000 last year.
Mr. Mazzeo said the course's fund balance is in good shape to get through the winter. "We still have a contingency in our budget," he said.
Expenses also are down this year by $65,000, he said. "It's a struggle, but we continue to make cuts that are necessary to keep expenses down," Mr. Mazzeo said.
"You are between a rock and a hard place," Councilman William I. Russo told Mr. Mazzeo. He said the course's fund balance continues to decrease year after year with no improvement.
"You are making your money at the driving range," Mr. Russo told Mr. Mazzeo. "If we back that out, we are at a loss."
Mr. Mazzeo said he hopes to increase the driving range and greens fees next year. "I don't know what the answer is," he said.
Mr. Russo said he is not saying that Mr. Mazzeo and his staff are not doing a good job, but it's just the nature of things with the current economy. He said he has played other courses, and "Grantwood is in excellent condition this year."
"The weather has been very cooperative," Mr. Mazzeo said. "It's the economy, not the course condition." He said the course received a "fantastic letter" from the Solon Chamber of Commerce commenting about its condition, as well as from those who play.
"It's the economy and the fact that there are so many choices of golf courses in the area," Mr. Mazzeo said."
He gave examples of other courses in the area and how they, too, are suffering.
Brookledge, owned by the City of Cuyahoga Falls, is down 440 rounds this year, he said, although its revenue is up. There is a double driving range, miniature golf and batting cages, Mr. Mazzeo said. Meadowbrook, which is owned by the City Westlake, is down nearly $70,000 in revenue, he said, and Gleneagles, another municipal course owned by the City of Twinsburg, is down 4 percent in rounds and revenues.
The Cleveland Metroparks saw a decrease of 1,300 rounds for the month of July, Mr. Mazzeo said, and experienced a $30,000 decrease in greens-fees income at the end of August.
"It's not just Grantwood, it's the golf business," Mr. Mazzeo said. He also said that the course had four outings cancel altogether this year. "Our outing rounds were down around 300 players," he said.
Also hurting Grantwood is the close proximity of other courses, including Hawthorne Valley Country Club on Aurora Road (Route 43), which may be going public next year, and Tanglewood, which is trying to operate the next five years as a public course, Mr. Mazzeo said. There is also talk of them building a driving range out there. In addition, there is Aurora Country Club, which is still public, only two miles away, Mr. Mazzeo said.
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