By Scott Kauffman
Native Washingtonian and golf architect Mike McCartin is an avid golfer who learned the game growing up around the District’s trio of publicly owned National Park Service (NPS) courses. McCartin was so influenced by one of the courses, East Potomac, the University of Georgia graduate wrote his master’s degree thesis about the historic impact of the course routed within the National Mall and Memorial Parks.
Now, McCartin has graduated to golf course ownership and to the chagrin perhaps of some private course owners, McCartin represents yet another ownership interest with distinctive ties to taxpayer supported public entities that arms his group with perceived advantages from managing or leasing government assets.
To be sure, McCartin notes, his recently completed deal with the federal government, wherein his non-profit entity National Links Trust was granted a 50-year ground lease contract effective October 5th to operate East Potomac as well as the nearby Rock Creek Park and Langston courses, has no financial advantages whatsoever, other than not having to come up with initial land acquisition and development costs.
“The advantages we have are related to the locations and histories of the courses,” says McCartin, co-founder of National Links Trust along with fellow Washingtonian and University of Georgia graduate Will Smith. “I think there’s a lot to draw from and differentiate these courses that would allow us to have a successful business. We’re going to be competing with a bunch of municipal and privately owned courses in the area so for us, I really don’t see it as anything other than a fair competition.”
National Links Trust has ambitious multi-year and multi-million-dollar investment plans to restore and rehabilitate the aging courses and not just “bring these courses back to their original prominence, but also fully restore other historically and architecturally significant elements of the properties,” according to Smith. The opportunity is so attractive, Links Trust has the backing of noted architects Tom Doak, Gil Hanse and Beau Welling, developer Mike Keiser and Troon Golf to help bring these courses back to their gloried past.
“We plan to develop attractive community gathering venues and are committed to maintaining environmentally sound and open spaces for the benefit of all those who want to come and enjoy these parks, golfers and non-golfers alike,” adds Smith, whose golf group was formed to preserve and protect affordable, accessible and engaging golf course architecture at municipal courses throughout the United States.
Meanwhile, the National Parks Service appears to be pleased that it is handing over its national assets to private operators.
“National Links Trust will provide long-term care to these historic courses and affordable opportunities to golf in our nation’s capital,” acting NPS National Capital Area Director Lisa Mendelson-Ielmini said Oct. 2, when the deal was announced. “National parks are about making memories with family and friends, and this 50-year agreement means that children who learn to golf today can look forward to playing with their children and grandchildren right here on their home courses.”
Though National Links Trust is certainly a worthy cause for golf’s future and would set up as an independent long-term lessee/owner with no ongoing NPS financial support whatsoever, some in the business still question whether government entities belong in this business to begin with. According to a National Golf Foundation report last June, there exists “almost 2,900 government-owned courses at more than 2,500 golf facilities” – representing nearly 18 percent of America’s overall 16,963 courses.
The total number of municipal layouts in America increased by 485 courses, nearly 17 percent over the last 25 years, according to the NGF’s 1995 “U.S. Golf Facilities Report.” Like golf in general, the municipal golf landscape ranges from modest facilities to top-notch major championship tournament venues like Bethpage State Park near New York City and San Francisco’s TPC Harding Park that played host to this year’s celebrated PGA Championship.
Brevard County, Florida Commissioner Rita Pritchett is one elected official who is glad to be out of the golf business. In transcripts from a “Brevard County Golf Board” workshop March 15, 2018, to discuss the county’s options to either sell two of the county’s courses or sign an operating deal with Golf Brevard, Inc., that would allow the county to get “out of the golf business,” Pritchett was clear about her views when she said, she wants the government out of the golf course business, and “does have heartburn over government competing with the public sector.”
Soon thereafter the board approved the deal with Golf Brevard to take over the par-72 Habitat at Valkaria and the par-67 executive course Spessard Holland designed by Arnold Palmer Design Company. In May 2018 the county board abandoned its remaining 18-hole course, the Savannahs, when it approved a deal to give the county deed to the Savannahs Homeowners Association. The latter golf transaction was the culmination of a messy third-party management contract tied to the three municipal facilities with now-defunct Integrity Golf that ended in a $200,000 legal settlement with the group’s former chief executive officer, Eugene Garrote, the previous month.
KemperSports CEO Steve Skinner is a strong advocate of municipal golf and the role it plays. Considering his Northbrook, Illinois-based company it is one of the largest owners/operators of municipal courses. This September the company reported nearly 50 of its 120-courses under operations are municipal facilities and the asset class continues to grow.
“There’s certainly more pressure in the last 10-15 years and more municipalities have looked to outsource, especially since 2007-08,” says Skinner. “Government entities recognized they need outside help, so we’ve seen more opportunities to manage our existing clients and are looking to drive more revenue in this category. … We've always enjoyed this asset class. The rank and file if you will [from golf society]. We think it’s important.”
Back at the nation’s capital, McCartin and his National Links Trust partners certainly believe municipal golf serves a meaningful and worthy mission for society overall. Transcending even the game itself by preserving open green space or parkland for the public to provide access to healthy leisure pursuits for all citizens.
“These properties are more than just golf courses,” said McCartin. “They are unique cultural and recreational resources with a long and commendable record of offering affordable access to the game of golf. Our plan calls for celebrating the history of the three golf courses, particularly their role in the integration of public golf and recreational facilities in both the greater Washington D.C. area and the nation.”
“We are honored to take on the responsibility of revitalizing these remarkable properties and look forward to expanding recreational opportunities for underserved communities, including seniors, veterans, individuals with disabilities and those new to golf.”
Scott Kauffman is a contributing writer to Golf Business magazine.