Since it opened in 2009 as a city-owned facility, and with one meager exception in 2022, Palm Coast’s Palm Harbor golf course has not only not made money, but has been a drain on city coffers. The course has run combined losses of $3.44 million in the last 16 years, or an average of $215,000 a year.
Last year Palm Harbor lost $435,129, the second-highest loss in its history, after making a $9,600 profit the year before–the only year it was in the black. In 2021, the loss was a negligible $7,575. The difference in 2023? Half a million dollars in additional contractual services and nearly half a million dollars in fleet-replacement costs.
Losses at the 18-hole course don’t include depreciation costs or some capital improvements, which would increase losses substantially. For example, the city spent $5.5 million to renovate the course after acquiring it in 2008. It then wrote off that expense. It has spent other sums on course improvements since. By 2016, combined losses from capital improvements, depreciation and operating costs added up to $9 million. Every dollar spent on improving the course is a dollar not spent on roads or other infrastructure.
In the near future, the course needs $670,000 in capital repairs–to its irrigation pump station, its parking lot and its greens, according to the city.
Users of Palm Harbor golf pay a fee to play. The course has not generated enough business to cover operational expenses, let alone other costs. Year after year, the city has had to close the gap with general revenue dollars drawn from residents’ and businesses’ property taxes. In essence, taxpayers have been subsidizing the golf course all those years (as they have, to a lesser extent, the tennis center, now renamed the Southern Recreation Center).
Whether the city should be in the business of running the golf course or not has been a subject of discussion, and occasional controversy, almost since the city took over the course in 2008, on and off the City Council. ““I take a terrible beating over this golf course every year,” then-Council member Bill McGuire said in 2013. “The history, year after year of this golf course, shows that it’s sucking money out of the revenue. If there’s no way to change that, then we either accept it or go in another direction.”
Discussions died down around 2015 when the city decided no longer to see the golf club or the tennis center as separate “enterprise” funds that had to generate their own revenue to operate (like the utility fund or the garbage operation). Private managers came and went until the city lost faith in the private company that was running the club. Instead, the city folded the two clubs into its parks and recreation operations and called them amenities, like other parks, even though they have little in common with parks: the city’s parks are free to use and open to the general public. The golf club and the tennis center are not.
Former City Council member Ed Danko, who stepped down in November, referred to the 2023 loss several times in his last months on the council. On Jan. 7, Council member Charles Gambaro took the matter further as he addressed his colleagues on the council, recent financial accounts of the golf course in hand. “We lose hundreds of 1000s of dollars every year,” he said. “I would ask the council’s consensus to look at options of how we can run it better. Do we need to sell it, but still keep it a golf course? Because I think that’s important that that land remains a golf course for our community. Could an investor come in and turn into something different? It becomes a destination, get it back on the tax rolls. I don’t know. But I think those are all options that we should consider, because losing an average of $500,000 a year, it’s not good.” The figure he cited likely included depreciation and capital costs.
“Really, we don’t need to be bleeding money like that on the golf course,” Mayor Mike Norris said. Council member Ray Stevens aid before going further with discussions of selling the golf course, the city should enact a covenant that ensures the 145 acres that make up the property as it snakes around 967 C-Section homes remains a golf course in perpetuity. In fact, that is already on the books, a city spokesperson said. The city, however, may face challenges finding a buyer in a sport that had been hemorrhaging players and seeing golf courses close by the hundreds until the Covid pandemic, which seemed to stop the loss as players reveled in sport as if designed for social distance.
On Tuesday, the city administration will respond to Gambaro’s request with a presentation to city council on the golf course. The city is framing the presentation as a “facility analysis,” with some history (the course has been around since 1978) and stats: in 2024, the course sold 52,661 rounds, with local residents making up 91 percent of users. It was the site of 26 tournaments. “On average, the cost of an 18-hole round at a municipal course is 8 percent less than at non-resort daily fee courses,” the presentation states, though whether that generality is the case between the Palm Harbor golf course and surrounding courses is not made clear.
The city administration is proposing three options: to continue operations under the city’s control while looking for ways to reduce spending and increase revenue (that’s been the goal for almost two decades); return to the previous model of contracting with a management company, but that gave the city heartburn and did not stanch the losses: like a landlord, the city was still responsible for all capital needs. Or sell the facility. Selling it, however, does not guarantee that the golf course would not at some point close and turn into another Matanzas Woods golf course scene, its greens overgrown and its surrounding residents exasperated. The Matanzas course was sold to a developer, and has seen some of its greens replaced by houses.
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Joe D says
Gulp….how many MILLIONS of tax dollars lost!?!
And the local government went after the SWIM CLUB for hemorrhaging money? I thought Golf Courses were THE THING in Florida!?!
I would suggest conducting a poll as to why it’s not being self supporting ( why aren’t people using it)? If they ARE using it, is it “too cheap” to cover even MOST of its own expense ( and allow SOME government loss as a community recreation facility). Would it be more financially attractive with adding a few pickleball courts? Dare I say “Splash Pad” type of draw? Walking paths? A small playground where non-golfing family members could spend time?
If there just isn’t enough interest to make it financially feasible ( good golf courses are expensive to maintain)…then maybe it’s time to look at other uses…PLEASE don’t IMMEDIATELY say 250 houses!!!
pete says
Why has it been so long to address this problem,it is just piss poor management of the city. All of them need to go
Standing in the Middle of Palm Coast Parkway says
The restaurant that previously held that concession was the highest-rated in the county. I wonder where the revenue generated by the restaurant at the golf course now (Loopers) goes. I didn’t see where that concession income is factored in anywhere. What about the golf shop that used to share space with the restaurant? Does the contract with an LPGA teaching professional generate revenue or cost?
Dan says
Just curious, does every other recreation item make money in Palm Coast. How much profit does that monstrosity of a bridge over 100 bring in each year. In all the months it has been open I have never seen over 3 people using it yet thousands of people use the golf course every year.
Ed White says
Palm Harbor Golf Course is open to the public. How much is Palm Coast willing to pay to provide this amenity to its residents? How much is Palm Coast willing to pay (or contribute in this case) for any amenity? Parks? Library? Recreation Center? Aquatics Center? Community Center? Riding Trails? If the golf course expense is $2MM a year and there are 50K rounds per year do the math… An average cost to play of $40 should cover it. This is clearly not rocket science! Figure out a fair cost to play and keep Palm Harbor Golf! Many residents enjoy it.
Patrick. says
Another City of Palm Coast failure. Does this city know how to operate correctly? It doesn’t seem as though they know what they are doing?
Don Appignani says
Shut it down and sell it off to some developer.
We could use more condos or apartments in Palm Coast.
john stove says
OMG….ae you kidding me? Get rid of this vampire facility that is draining our tax dollars. More houses? who cares, let them pay property taxes.
Enough is enough already!!!!
Robjr says
The golf course folly was a loser even before it began.
The people who lived on the closed golf course moaned and groaned about their “property values”.
Jon Netts, rest his soul, and the town manager pulled a fast one on the taxpayers.
They listened to the management company that they “selected” with respect to the profits that would be made. The only profit that was made was by the management company.
At the time of the recession golf course operators were selling and getting out of the golf course business and Palm Coast was diving head long into it.
And just as the golf course was about to open and the elected officials were patting
themselves on the back the management company said hold on, we need an additional $1,000,000
up front for operating expenses. And it continued to go down hill from there.
Initially it was supposed to be an enterprise operation, meaning it would be self sustaining.
Then after a FlaglerLive exposé of the actual spend, the Mayor changed it to an amenity in order
to try and hide the red ink.
That white elephant should have been sold long ago.
Ed Danko, former Vice-Mayor, PC says
I fully support putting this golf course out to bid to the private sector. It is completely unfair that our two privately owned golf courses, Cypress & Pine Lakes, has to compete against a city run golf course that bleeds lots of tax dollars. What is next, a city run bowling alley? Bottom line, government does not know how to run a business. Let’s level the playing field and let private business compete against private business. Let’s not forget that the city run Golf Course does not pay property taxes or city utilities, a privately owned business will. We have nothing to lose by putting this course to bid, and we have everything to gain if the right bidder comes along.
Dennis C Rathsam says
Please, you bullshit the baker…you get a bun. You billshit me you get none. Where did the DOUGH go? Seems the folks we trusted, & voted in are stabbing us in the back, nothings changed, no plans have been made …. Just keep raising taxes & our water bill. It all started with the biulding of City Hall…. The biggest lie ever told.
You again? says
Ed Danko
Tell the public you took $1K campaign donations from Doug Brown, owner of the golf course in the E section, who wanted the city one shut down as a condition of his donation to your campaign. He complains that it’s cutting into his profit.
Just be honest when the people when you fight this battle OK? Oh wait, not sure you are capable of that.
James says
Interested public buyer.
How Much ?
Kevin says
Just sell the property, build some beautiful condos on it, there’s other golf courses n other stuff for the old people to do, let them enjoy a beautiful condo
Maybe create a walking trail with a few benches just incase they need a breather or create a very 1st palm coast zoo, great for adults & kids
Mike says
Why not start with the payroll. $15 plus tips to be a bag boy. Why do they get tips as a city employee? They always have two bag handlers at all time as pine lakes and cypress has one at minimum wage. And the inside employees got to be at $20 plus. That’s a minimum wage job because they get $5 golf. Cut the payroll and you would save $.
Richard says
$500k increase in expense and a decrease in revenue? Someone us a silent partner somewhere
Lee Baker says
This must be so poorly managed. The course is always packed, the driving range does a great business. They charge the average going rate. It is shocking that that aren’t making a very solid profit.
celia pugliese says
FlaglerLive how come you didn’t research how much cost us the taxpayers Holland Park as I recall were 5 + 7+ 3 millions and how much the yearly maintenance in labor. machines and materials? The Southern Rec center cost us 13.7 millions just around now and we will request FOIA in yearly maintenance and management cost too. How much yearly maintenance cost in Water Front , Creek Preserve, Ralph Carter and Linear Park and they do not generate 1.6 million in users fees yearly revenue to off set cost! Reason for sticking the losses only with the PHGC is because always developers and their buddies in council and administration drooling to have it sold against the original ITT plat that we bought our 1000 homes around it. The problem are the incredible charges the city administrators impose in the course. Look at the fleet cost almost half million a year do buy gold made golf carts and lease them at what price? : https://docs.palmcoastgov.com/downloads/fileshare/public-records/500VI00000PTNNuYAP/Golf%20for%20FY%202024.pdf. Look line by line and tell me what is wrong here. The PHGC needs an oversight committee of the taxpayers adjacent home owners affected and the golfers that pay to use it which are mostly Palmcoaters. PHGC is a city amenity municipal court and as all other mentioned above, ain’t suppose to bring a profit maybe just break even. Furthermore the PHGC sustains jobs as well.
A BUDGET OF $1.8 M WITH 26% BEING IN “OTHER CONTRACT SERVICES”, THEIR HEADING NOT OURS !
LET US DIG DEEPER AND REVIEW THIS FOR “CREATIVE ACCOUNTING”.
DO YOU FIND IT ODD THAT THE NEWLY APPOINTED FILL IN COUNCILMAN GAMBARO IS LEADING THE “PACK” WITH FORMER VICE MAYOR DANKO [THAT NEVER VOTED NO ON PACKING IN MORE HOMES] SEEM TO BE OPERATING IN CONCERT TO SELL THIS PUBLIC AMENITY THAT HAS BEEN IN THE BLACK ? WE HAVE ASKED FOR A BREAKDOWN OF THE “MYSTERY” SERVICES, THE $303,000 GOLF CART LEASE AND $97,000 FLEET ALLOCATION.
WHY NOT SELL THE SPLASH PARK, FREDA ZAMBA POOL OR THE SOUTHERN REC CENTER [MOSTLY FREQUENTED BY NON CITY RESIDENTS] THAT ARE ALWAYS IN THE RED ! None of our Palm Coast amenities should be ever sold on a city with a 421 millions budget a year! An oversight committee of taxpayers and users with complete access to expenditures is needed.
Barry Toth says
There is no reason that the course is not covering its costs. Since the tennis courts were merged money from golf has subsidized tennis. How many people actually use the tennis facility versus the golf course? How much does it cost to use the tennis courts?
To solve the problem sell off the tennis facility to private mgmt and charge appropriate fees to use.
Tired of the waste says
PC teaches Washington DC how to waste money. Fourteen years of running in the red, costing us millions?! Any of the other courses here in Flagler this far in the hole? Asking seriously. My taxes and I know I’m not alone, have QUADRUPLED since 2018!
Sick of you throwing my hard earned money down the drain.
BoloMKXXVIII says
If it is sold, the new owner (developer) will then demand changes in the land use designation and variances, then will build 580 homes on the site! Just like every other large piece of property sold in Flagler County. The only difference this time is it is currently a golf course instead of virgin land.
ERIC COBB WEBER says
Well, here we go again it seems like we have got another Green Lion growing on our hands in the city of Palm Coast. The city government now deems that golf is very expensive! If the golf course was losing money, why wasn’t this brought to light from the start! Other than writing the word this half-truth recent article. We need to see a full breakdown of the actual revenue and cost to run the Palm Harbor golf course. Not many articles have been published to promote the golf course so it’s obvious the city of Palm Coast doesn’t want to manage a golf course, and it is evident by the way the article is written that it is a big loss! Well, the loss comes from management, it’s called leadership and starts with the leadership at Palm Coast City government. It’s all negative, nothing positive because it doesn’t fit in somebody’s job description and how to manage a golf course! We deserve a better detailed P&L report on the golf course. Did 100% of the golf course revenue go into the golf course management? Was there golf course revenue distributed into the Palm Coast “General Fund”? What is the strategy when we do a project? What are the goals and objects? What are the metrics to use to show success or not success? Are we setting these projects up for success from the start? Was a risk analysis ever done? Higher the right people to do the job! This is article is half-truth and fake news!
Bottom line city government did we ever want the Palm Harbor Golf Course to succeed? We hope to see different things in the city government other than all the negative things that we can’t do. Here is a newsflash, can we tell the city taxpayers about the revenue and expenses of all the rowing equipment over there by the 9th hole green? First it was just a couple crew boats, now we dozens of crew boats, a shed they have their own water supply. Who pays for all this? Do we have revenue and expense for this?
Thomas Paine says
Ed, that’s a great piece of back-of-the-envelope math. If the city staff haven’t done a pricing analysis as part of whatever they’re presenting to the council, they should. Lots of other good questions among these comments, by the way. Thanks to the newly-elected council for deciding to take a hard look.
Thomas Paine says
Ed Danko, sounds like you have a lot of passion. What would your feeling be if the green space were to be replaced by townhomes and condominiums?
Moolah says
You again?, thanks for the clarity on that. We were wondering why Danko’s comment used the word “unfair” when describing the impact on privately run golf courses. Now we know that was the money talking.
T says
Palm coast not knowing what to do and run a shock lmao
Jack says
I wonder why this amenity is any different then the new tennis facility. From what I have read, publix tax money was used to build this “extensive” facility that is only available to those taxpayers by buying a membership. This amenity is part of the reason that many folks moved to Palm Coast.
Cali Enya says
First up, do some research before you say sell it, develop it! While losing an average of $215,000 a year is never a good thing, there are things I am sure that can be done once you really look at Palm Harbor Golf Course, Shop, and Restaurant.
The city sold Palm Harbor eons ago, against the wishes of those who golfed there, then the course was left to rot. The city had to take the course back in 2008 (per the agreement I believe), then put money (5.5 million) into it to get it operable. The city decided it was not in the course operating business and contracted it out to one group. The contracted group had difficulty getting the city to do anything and then was booted (remember the red shirt group at the meetings–they saw and understood what was happening and tried to make a difference.) for a more “favored” group Well, that group just sucked money out of everything it could and then the city took it over.
This was all the “early leadership” in the city, many of whom have passed, those leading Palm Coast after that were more concerned with the Tennis (Southern Rec Ctr) & expansion, the new Community Center, the Holland Park debacle and never paid attention to the Golf Course unless it was regarding the food tenant there. The only time the course was referenced was about the renewal contract of the Green Lion, now known as the Next-Door Bistro–doing amazing. The current tenant, Loopers, took a while to get open due to issues the city had to take care of and is also an amazing place. Next up is the current leadership and they are left holding the bag. Let’s not forget city has difficulty all around in “maintaining” things be it the Golf Course, Tennis Center, Playgrounds, Swails, Roads and persistent flooding in areas.
Since the current leadership is left holding the bag, I certainly hope they do not have a knee jerk reaction to this issue and really look at the potential Palm Harbor has as a public course. Mr. Gambaro, our Mayor and the council should not be rushing to judgement, as there are plenty of pressing issues in the city and money budgeted for Parks & Rec (assuming that is where the course is in the city budget) has already been allocated for 2025. Everyone also needs to remember that the privately held courses are just that “private” Pine Lakes and Cypress Knoll are Private, just like Grand Haven, the Conservatory and others in Palm Coast. Somehow folks seem to only equate private courses with gated communities and that’s just not how things go. Palm Harbor NEEDS to be public course
Again, the city of Palm Coast needs a PUBLIC COURSE. There were over 50,000 rounds of golf played there in 2024–imagine how many more rounds would be played if the city made the effort to really promote the course, host more events at the course. The only effort the city seems to make at Palm Harbor is for a one-day event in the spring at the course with the National Christian College Association. Matanzas and FPC play home golf matches (boys & girls) as well as practice at Palm Harbor. I’m sure that MHS & FPC don’t play or practice for free and both of our High Schools have very good golf programs.
Joe D says
To Ed Danko…former WHATEVER:
Yes, it might come into question City owned “businesses” competing with private businesses. However, there is SOMETHING to be said about providing an AFFORDABLE alternative for those that can’t afford, what are USUALLY exorbitant greens and membership fees. What does it cost for an 18 hole round of golf at the City golf course vs at the 2 private local courses (not including equipment rentals, but mentioning any ADDITIONAL membership fees)? ….Anybody help me out here?
Just as there are County Recreational programs and PRIVATE gyms and exercise facilities, SOME provision should be made for those not making the BIG $$$ for private facilities to have SOME access to the SPORT, but not at the expense of $$$ millions of taxpayers money. I never did see any comment about the restaurant or the golf pro income for the golf course?
Karl Barber says
Charge the 8% more that will equal it to the resort priced. And also factor in the population growth, which will mean more golfers. This should help with the shortages and may even end up with it making money. I’m sure it’s a nice thing for many to have access to. And if it’s shut down then other courses will take advantage and will raise rates.
CT says
You cannot include capital expenses in the overall losses of the golf course. Those capex items flow to the asset side of the balance sheet and are depreciated over time (probably 30 years). If you include both capex and depreciation when examine the overall losses, you are duplicating the expense over the life of the asset. You can really only calc the loss after depreciation. Regardless, seems like a simple fix of increasing rates a few buck a round and maybe consider hiring nicer people to operate the daily operations that don’t scare people away. I never play there anymore because it’s nothing but a bunch of old grumpy employees who search for a reason to be upset and take it out on players.
celia pugliese says
Your greedy wishes Adios on the meeting PHGC not for sale and maybe not for lease either but an oversight and audit of financials of the big unexplained charges to the court’s 1.6 million revenue of golfers fees. Only city amenity whether sports rec center, courts or parks that generates a revenue other than all expenditures and nor a penny in income. Hello Mr. Gambaro aiming at the wrong tree to cut.
Play no more says
This was my favorite course to play but over the past few years it’s like playing on a communist field. The staff are not friendly, there is no customer service. Requiring bag drop only on a small, tight, always full lot is a nightmare. It’s not fun to play there anymore. It’s become overly strict for local hacker play, can no longer enjoy it there. You’ve run off so many like me with the gestapo. Put new ownership on it with a customer focus and it could be profitable. The city shouldn’t be in the golf business.
Kevin W Burke says
Pretty simple math here…based on the number of rounds and the total revenue….they are averaging about $28 per round. That’s hard to fathom for the year 2024 with one of the largest golf booms in decades. They need to raise greens fees, increase rounds, raise out of state prices and they will still be competitive with other courses in the region. Sure there are other costs to be cut. No reason they can not break even at a minimum with professional management.
Mike says
I’ve read some of the comments on here and they are not accurate. First of all pine lakes and cypress are not private golf courses. They are privately owned but anyone can play there both are open to the public. Second the schools do not pay to play at palm harbor. As far as the comment about the red shirts, they were ousted from palm harbor . As far as the rowing club goes they use the water from the city and I do believe there is no fee. I agree with there should be an itemized audit to breakdown on how much monies are being spent on all expenditures at the course. Finally, I don’t need my taxes being raised every year to subsidize this course.
celia pugliese says
What about this I heard the mayor in today’s meeting saying that the Southern Sports Rec. center will cost $600,000 a year to operate…So Mr. Gambaro will you out loud ask to sell it too as we just spent 13.7 millions in building it? Pierre please do a research in how much cost us all the other (Holland Park 17 millions at least) and the yearly Carter Park, Water Front , Linear and Creek Preserve Park to build and maintain with all our tax dollars. TY.
Jay Schurman says
If the land is sold and developed, how much tax revenue would Palm Coast receive each year? Why does it have to remain a golf course? This area has plenty of private courses.
Land of no turn signals says says
This comes up every couple of years with the tennis center both being huge money pits.If they can’t break even year to year they should be sold and put back on the books and pay property tax’s.
Jared Nicklaus says
Can the 967 property owners along the course create an HOA to pay any differences? After all, they’re the benefactors of their property being on a golf course and the subsequent extra home value. We’re talking, what? $35/mo? That’s a big fat nothingburger for that kind of amenity.
Nina says
It would be a shame to sell that place designed by Arnold Palmer himself! It’s got a one of a kind restaurant with an outrageous view of the course! Why would anyone want to sell an amazing Palm coast destination! It’s got history, charm, beautiful established landscaping, a clubhouse pool, a huge parking lot. You should make it into a Lodge with a golfing theme! Like the Hammock Beach Resort! Put in a couple jacuzzis and see what can happen!
J Smith says
What moron came up with these “loss” numbers?
There are over 200 homes on the golf course that pay higher taxes and have higher home values because they are on the golf course!
If you don’t live on the golf course and you don’t think any of your tax dollars should go to it, please move! People moved here because its a beautiful part of our city. It adds VALUE!
I could save the city by cutting off the salaries of the council members AND THE MAYOR! It should be a “volunteer” position.
Spending money on the golf course adds value to our city. Council members and a mayor that we spend too much money on do not add anything but stupidity!