Monday, June 19, 2006

How Private Capital Is Dynamizing Golf in the City

The New York Sun reports:
In 1983, when the city's courses had both fallen into disrepair and were losing money, the Parks Department decided to contract out control of its courses to private companies. The city filed requests for proposals for all its courses and, after laying down millions of dollars, American Golf took almost complete control over six courses spread throughout all the boroughs except Manhattan.

American Golf signed 20-year contracts for the courses, and in 2003, bolstered by good history, won the contracts again and immediately undertook the multimillion-dollar project to improve the course play and upgrade the clubhouses. The course renovations, which in most of the courses are almost fully completed, and the clubhouse upgrades, which are set for completion in 2007, will not only economically benefit American Golf, but also greatly enhance the overall experience for city golfers, city officials and players say.

"When City Parks was running the courses in 1982, things were not so great for New York City golf. The courses were not being used, quality was suffering, they were losing money, and it was basically not something that we viewed favorably," the director of concessions and revenues at the Parks Department, Ronald Lieberman, said.

However, since American Golf took over, the state of municipal golf in New York City has changed drastically, he said. Course conditions are better with no taxpayer contribution, the number of players is up, and the city is generating revenue. In 2005 alone, the city garnered $6.2 million in rent from the 13 courses.
Maybe the government shouldn't own land.