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As Palm Coast Groans Over Its Anemic Golf Course, Flagler Beach Wants One Of Its Own

| April 24, 2015

Flagler Beach is ready to return the old Ocean Palm Golf Club, closed since 2008, to golf use. But a big question looms: will the city find a company willing to assume the lease? (© FlaglerLive)

Flagler Beach is ready to return the old Ocean Palm Golf Club, closed since 2008, to golf use. But a big question looms: will the city find a company willing to assume the lease? (© FlaglerLive)

Palm Coast taxpayers have owned the Palm Harbor Golf Course for almost six years. Like many publicly-owned golf courses, it’s been in deficit every year. A privately owned golf course that’s gone into disuse for almost a decade at the north end of town is causing the city more grief as residents around it complain of its eyesore effect on their property values. It’s part of a national phenomenon that has depressed the value of golf courses over the past 10 years, with 15 golf courses closing for every new one opening last year, according to the National Golf Foundation. Those numbers reflect the trend among 18-hole courses only.

Yet on Thursday evening, the Flagler Beach City Commission gave its manager and one of its volunteer committees the go-ahead to start whatever process necessary to turn the old and long disused Ocean Palm Golf Club at the south end of town into a functioning golf course again.

“Anyone out there in the golf world will tell you, if you have a driving range, you’re going to make more money. More money. If you have a golf course, if you run it right, you’re going to break even or make money,” City Commissioner Joy McGrew said, her assessment of the golf word in sharp variance with industry numbers. “I would like to see us make money. Yes, we’ve already spent $490,000. It’s going to cost us some money to buy this piece of property, but now we’re going to own it full out, and then we’re going to be able to negotiate a lease as people spoke here tonight, as we’ve talked about in the past, that can do the same thing that happened to the [Funky] Pelican. How many people thought that that restaurant could ever come to what it has come to now?”

The city currently owns 34 acres of what used to be the nine-hole Ocean Palm Golf Club, after buying the land in a foreclosure sale in April 2013 for $490,000. The opened in 1960 and stopped operations in 2008. That land has to remain in recreational use. At the time, the city justified the purchase by saying it would turn the space into a park or open green space. (Ocean Palm owners had sought to build 129 homes on the land, but the city refused to alter the zoning to that end: the land is surrounded by single-family homes.)

Golf keeps losing players and courses, but Flagler Beach sees potential in reviving a disused 9-hole operation at the south end of town.

A 2.9-acre enclave within the rectangular parcel is left in the hands of an Ormond Beach entity called Caribbean Condominium Limited Partnership, owned by Kathryn Vaughan. The state’s Division of Corporations lists that entity as inactive since 2012. The property is delinquent on the $1,900 in taxes it owed last year, and hasn’t paid the $1,900 it owes this year. The property appraiser lists the just market value of the 3 acres at $75,000. That parcel is zoned for residential construction.

Last year the city commission appointed a so-called Alternative Use Committee to come up with—well, alternative uses for the property. The committee submitted its recommendations at the commission’s meeting Thursday evening. It considered all sorts of alternatives, including a dog park, biking and hiking trails, tennis courts, a multi-purpose community center, “extreme golf,” natural areas, an indoor swimming pool, climbing walls and saunas, sports fields, a public farm, a flea market, picnic pavilions, a croquet course, a wind farm, a water park, an archery range, a zoo, a skateboard park, and so on.

In the end, the committee, not a little stacked with golfers, reverted back to what was expected to recommend all along: return the property to golf.

“Comparing us to Palm Coast is not accurate, because Palm Coast took over the golf course,” one committee member said. “They’re a city that are running a golf course. We’re not doing that. We’re a city that’s leasing the property the same as we are with the pier and everything else, so it’s a whole different scenario than us running a golf course.” Palm Coast owns the golf course, just as Flagler Beach would own the whole parcel. But Palm Coast is contracting with a private company, on a three-year basis, to run the operation. Flagler Beach would lease the property to a company to do the same thing, though there might presumably be a signal difference: if the company leasing Flagler Beach’s property loses money, the city would not subsidize its operation, the way Palm Coast subsidizes KemperSports to keep going at Palm Harbor Golf Club. But that’s largely speculation, as the city has no such agreement with any company—just three “letters of intent,” which are a long way from a lease.

“The golf course makes the most sense and it should be profitable for the city eventually,” the committee member—a golfer herself–told the commission.

There was no disagreement among commissioners to return the land to golf use. But there was less agreement on what to do with the 3-acre enclave. “Why did we have an alternative use committee and go through all this if that’s what we were going to do all along,” Mayor Linda Provencher said of the golf reversion, when discussing what questions should have priority. “I think the better question is if we have to have the 2.9 acres to make it a golf course, if that’s what we have to have. Do we have to have that? I don’t know.”

Marshall Shupe. (© FlaglerLive)

Marshall Shupe. (© FlaglerLive)

There’s some thinking among commissioners and the administration that the 3-acre enclave is not critical to the rest of the parcel, should it be turned into a golf course again, although most would prefer to buy the enclave. The commission gave City Manager Bruce Campbell the authority to start negotiating for the enclave.

“I think that we need to proceed with this to the point where we need to have the committee continue and maybe work, Bruce, with you, and try to get us the information that we need to see where this 2.94 acre falls, whether it has to be there in order to get this turned into a golf course, or whether it can be restructured. Who knows. I don’t think anybody wants to have a couple of 34-foot tall buildings occupying that property, so I think it behooves us to have Bruce go ahead and see if he can start a negotiation or at least a search-negotiations and we continue to relay that information to the committee if they’d like to hang in there for us.”

Commissioner Steve Settle reworded that summation into a motion, which the commission approved unanimously. “We’ve got some experts in golf on that committee so they probably can judge what we need better than we can” Settle said.

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10 Responses for “As Palm Coast Groans Over Its Anemic Golf Course, Flagler Beach Wants One Of Its Own”

  1. m&m says:

    Palm Coast officials whine about the golf and tennis but spend millions of dollars on walking paths, boat ramps and parks which have no ROI but are needed. The golf course is in the best shape it’s been in years. It is needed. If Flagler wants a golf course maybe Matanzas will be what they need.

    • The Truth says:

      Walking paths, boat ramps and parks are utilized by MANY more people than the 300 members that utilize the tennis center. There is a NEGATIVE ROI on the golf course and the tennis center. We are losing money daily at those facilities all so a select few (like yourself) can play at a ‘state of the art’ tennis facility that about 0.1% of the population even remotely cares about.

  2. palmcoastpioneers says:

    That would be great especially if Flagler Beach seeks an Official Florida Landmark MARKER$$ for which most probably be eligible and also if it tries to become part of the State of Florida Golf Trail .

  3. Willy Laundrie says:

    This is the absolute WORST idea I believe I’ve ever heard come out of Flagler Beach. Wait, its the second worst idea. I would say the whole putting parking meters along a state designated coastal scenic highway as the worst.

  4. Willy Laundrie says:

    What? A larger 18 hole City owned golf course is failing in the same county? Pfft!!! Lets open a smaller, 8 hole mostly par-3 public golf course instead. Seems legit.. (heavy sarcasm)

  5. Rob says:

    These blokes think and the key word is think they see dollar signs because someone told them they can make money with a driving range.
    There is a valid reason that the operators of the golf course closed it down and no other golf course people bought it. Can’t these people see their noses in front of their face. It is a loser. Don’t these folks pay attention. All of the golf courses that are public or semi public in Palm Coast are losers. One closed and more than likely never to work again. Those town councilors in Palm Coast must have been on something when they threw away millions of dollars on their golf course foray, the elected people in Flagler Beach must be using the same stuff. If they jumped headlong into the purchase a high dollar fire engine how would anyone expect them to pay heed to the economics of the local golf course industry. Do what you do best and stay out of anothers business. Its only a guess but mine is that not one of them (elected officials or town manager) have experience or knowledge of golf course development and operation.

  6. PJ says:

    Another good reason to raise your taxes for no good reaso:
    This is not improvement this is a business that can’t pay for it’s self anywhre else in the County. Here is another board that can’t stay focused. I thought you needed a fire truck and could not afford it? So why would you even consider a golf course??? WOW you talk about caring for your taxpayers. Spend your money on what you need to improve on and what your area is loved for “A BEACH”.

  7. Al_Zeimers says:

    I think it should be obvious to the most astute citizens of Palm Coast as to whats needed the most in our glorious community. By far the greatest need we have is for more Pizza parlors followed by more lawn cutting services. Also the city could use two or three dozen more restaurants-we barley have enough to go around. Throw in another golf course or two and we will be set for life.

  8. Jack Douglas says:

    Ask the residents surrounding Ocean Palm if they’d like to see a golf course there again. I believe the responses would overwhelmingly be positive in favor of seeing golf played there again. Having stated that, it is my opinion that only three types of people should be in the golf business:
    1. People who truly know the golf business
    2. People who don’t know the golf business but are smart enough to hire people that do
    3. People who have so much money it doesn’t matter if they know the golf business or not
    Non-golfers probably don’t care if Ocean Palm opens again – but a lot of people miss the place. Problem is is that the City is going to be in over $700K and it’s going to cost SOMEONE another $400,000 to get the place up and running again – and build the City a new clubhouse. Without that 2.94 acres, trying to squeeze in a range somewhere is going to require a lot of re-design, irrigation changes, etc. More money, in other words.

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