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An added attraction
Golf courses boost residential developments, but interest wanes in stand-alone
courses
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by Arthur Utley
for Virginia Business
March 2006 Poplar Grove is a golf course near Amherst, and Poplar
Hill is a course near Farmville.
The similarity in the names is a coincidence, but the
similarity in their business models is not. Both courses
serve new residential developments in rural areas.
Real estate developers need amenities to sell houses,
and a golf course is a prime amenity. By contrast,
construction of stand-alone courses, especially in
urban areas, has pretty much come to a standstill. The Poplar Grove Golf Club in Amherst
County is the centerpiece of a new real estate development
off U.S.
Route 29 that includes waterfront lots. The course,
designed by legendary golfer Sam Snead, was ranked
No. 8 in January by Golf Digest in its list of the
best new upscale courses.
In Farmville, about an hour’s drive southeast
from Amherst, the Poplar Hill Community Development
Authority hopes to create the same type of buzz for
its course, the star attraction in a 1,060-acre project.
The Poplar Hill Golf Club is set to open in June. “We
needed an 18-hole course to attract people,” says
Harlan Horton, a Farmville attorney who has been involved
in the project for six years. "I’m one of
many who have worked hard to bring something we didn’t
have before to a rural area."
The Poplar Grove and Poplar
Hill courses conform to a pattern that Jeff Fleishman
has been seeing nationwide. "The
courses we’re seeing are part of residential
developments and not much else," says the president
of Golf Business Advisors, a Williamsburg firm which
helps clients develop, operate and market golf ventures. "It’s
the supply and demand factor. Not so long ago we were
undersupplied [with golf courses]. Now, we are oversupplied."
Golf’s boom years in the 1990s and at the turn
of the century stocked Virginia’s most populated
areas and tourist destinations (such as Northern Virginia,
Williamsburg and Virginia Beach) with plenty of upscale
courses open to the public. (An upscale course charges
green fees of more than $50.)
The growth in the number of courses eventually outstripped
the growth in the number of golfers. Participation
is down for a variety of reasons. An article by David
R. Sands in the January issue of GolfStyles magazine
notes that aging baby boomers are watching more golf
and playing less. Higher fuel costs are contributing
to less participation.
"The numbers just don’t
justify more new courses [in the bigger markets]," says
Richmond-based golf architect Lester George. "Smaller
communities have enough players to do something. Stuart’s
Draft needs a course. Elkton needs a course. You can
make it affordable and include everyone."
Stand-alone courses, even those
with name architects and "wow" factor layouts, are dependent on
the number of rounds played. "It’s hard
to make money on stand-alone courses. You go out and
spend five or six million dollars, and it’s tough
to generate enough income to make it worthwhile. No
one is building courses without expecting a return," Fleishman
says.
The return for developers these days comes in the sale
or rental of real estate properties. With a high-quality
golf course as an amenity, the value of the real estate
increases.
The Poplar Hill project will
offer single-family, golf duplex villa, townhouse
and condominium options,
in
addition to a hotel/conference center. It is four miles
from Farmville and 60 miles from Richmond. "Initially,
the concept was for a stand-alone course, but it was
clear early on we needed to do other things," Horton
says. "Since we’ve done the course, the
positive momentum [to Farmville’s economy] is
palpable. There’s been a complete shift in the
way people view the area."
The development authority hired
Rick Robbins, a well-respected architect who has
designed courses around the world
and is based in Cary, N.C. Horton says Robbins’ design
is perfect for the property. “It has a rural
retreat feel to it," he says.
Poplar Hill isn’t the only course coming to the
commonwealth’s southern tier. Other new public
courses are planned in South Boston and Clarksville.
Conference centers are in the plans for each as area
leaders look to boost tourism.
Another example is Old Trail
Golf Club, which opened last year as the centerpiece
of a residential development
west of Charlottesville. A second course at Williamsburg
National in Williamsburg, King Carter Golf Club (next
door to the Tides Inn Resort’s Golden Eagle
Golf Course) in Irvington and Spring Creek in Palmyra
are
other new courses that have been or are being built
to sell real estate.
If a development’s success
rides on the quality of the golf course, Poplar Grove
has set a high standard.
Golfers would expect nothing less from a layout marketed
as a Sam Snead signature course.
Snead visited the property
four times, but he died before Poplar Grove was completed.
Architect Ed Carton
and Snead’s son, Jackie, carried out Snead’s
design thoughts throughout the course.
The 7,059-yard, par-72 course is visually magnificent.
The elevation changes produce some spectacular views
of the surrounding mountains as well as characteristics
of the layout. Many of the shots are downhill, but
the course offers uphill challenges, too.
The five sets of tees gives golfers of all skill levels
a challenging experience. The beauty of the course
makes it easy to forget bad shots.
Although the owners didn’t seek the recognition,
the ranking in Golf Digest’s annual review of
the nation’s new courses is a welcome reward.
More national publicity will come Poplar Grove’s
way this spring when cable television’s Travel
Channel will air a segment on the club as part of its
top golf course series.
The club’s pro shop is a log cabin. The plantation’s
manor house (built in 1773) is serving as a temporary
clubhouse and restaurant until an inn, tavern and conference
center are constructed.
The golf course and lakefront
lots (one to five acres each) are large enough that
the houses won’t
be wall to wall. Buying a lot and membership in the
club are separate items for residents.
Poplar Grove is a semi-private venture now. The club
eventually will become private, but that is several
years down the road.
The real estate/golf developments
in the smaller communities and affordable rates in
major markets provide a brighter
outlook for golfers in Virginia this season. As Fleishman
of Golf Business Advisors says, “There are plenty
of opportunities for golfers who like to travel to
play.”
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