Boca Raton resident John Granath walks toward the 8th tee
at Red Reef Executive Golf Course.
Tim Stepien/The Coastal Star
Related Story: Golf courses struggle as the sports' popularity wanes
By Cheryl Blackerby
This is a story of two public golf courses, both built on A1A in the early 1960s, and both on prime Palm Beach County real estate between the Intracoastal and the ocean. Both are city-run courses, and, surprisingly, both attract more nonresidents than residents.
But 50 years later, there’s one huge difference: One makes money and the other loses a quarter of a million tax dollars a year. And the one that makes money stands to make even more with the addition of an upscale restaurant.
The Red Reef Executive Golf Course in Boca Raton is the one that’s in the red.
The course was built in 1960 as part of the Sun ’N’ Surf development owned by J. Myer Schine, who had also owned the Boca Raton Hotel and Club until the mid-1950s. The city bought Schine’s beachfront property in 1974 and it became Red Reef Park, which included the golf course.
In 1984, the Boca Raton Beach and Park District and the city agreed that the city would maintain and operate the park with money from the district.
The course has been a consistent money loser, and the bill keeps getting bigger. Ten years ago, the district paid $140,843 to cover the loss, and by 2011 the deficit had reached $267,588.
City officials started taking a hard look at the course’s annual deficits as early as 1998, when the Office of Management and Budget put together a report that considered options for getting better performance or getting the city out of the golf business all together.
The city owns two public golf courses, the Red Reef course and the Boca Raton Municipal Golf Course, which is on Glades Road about two miles west of the city limits. The Municipal Course is a 197-acre property that features 18 holes of championship golf and a 9-hole executive layout.
The City Council looked at several privatization plans in which the city would lease its two courses to one or more contractors, who would manage them and handle maintenance. Officials also considered selling the Municipal Golf Course off Glades Road, which at the time was appraised at about $3.5 million.
In the end, the city essentially decided to continue operating the courses and to try to reduce costs and losses.
Today, the City Council doesn’t seem to mind Red Reef course’s yearly loss, in spite of the fact that two city councilwomen have spoken in favor of selling the Municipal Course, which makes money.
“Red Reef Golf Course is a part of Red Reef Park and is such a special amenity for our community,” Deputy Mayor Susan Haynie said when asked about the deficits at Red Reef. “The Greater Boca Raton Beach and Park District assists the city in funding the maintenance and operation of the park.”
When City Councilwoman Constance Scott was asked about selling the Red Reef course, she said, “When I spoke of selling a golf course, it was only the Municipal Course on Glades Road not Red Reef. I still think we should keep options to sell the Municipal Course.”
Greg Jerolaman, Boca’s golf course manager, said that the Municipal Course is self-supporting, “and some years made up to $300,000 in profit. Last year, the municipal course made $110,000.”
The district’s dismay
The district, on the other hand, is frustrated at paying a big bill for Red Reef every year, and commissioners voiced their concerns about the latest bill during a July 1 meeting.
Commissioner Steve Engel said, “It’s a beautiful property. It’s beautifully maintained and the several times that I’ve been there, there’s hardly anybody on, and I think probably of all the facilities in the Beach and Park District, this is the least used.”
Golf course statistics confirm that fewer people are playing the course. In 2009, 31,071 rounds were played, and in 2012 the number dropped to 27,086.
While Engel suggested raising fees and increasing the course’s visibility, Commissioner Dennis Frisch said “It’s an enterprise fund that’s supposed to break even and can’t because it would have to lower prices to be competitive.”
Commissioner Earl Starkoff said the commission should consider getting expert consultants for advice about the course’s potential profitability, an option that has been raised in years past.
“A year ago, I was concerned about what had been a $150,000 supplement and is now a $250,000 supplement,” he said. “I’m not convinced that we’re looking broadly enough at how to come up with ways to increase rounds or (increase) the fees for the rounds because we’re the same people looking at the same problem.”
The commission should find “a realistic view of what our expectations should be,” from golf experts, he said.
The bill for the course is “only going to get bigger next year,” Frisch said.
Commission Chairman Robert Rollins, however, was more concerned about the “shaggy” state of the course. “In the budget, they’re asking for an additional $258,000. I support that, but I would like to have a little better job of the maintenance over there.”
Rollins described the losses as a “a sign of the times.” With a collective shrug of shoulders, the commissioners didn’t decide on a plan to help the course make more money.
Rollins concluded by saying, “There’s not a single golf course in this town, in this county, in this tri-county area that’s not suffering loss revenue.”
Except there is just such a course 19 miles north on A1A.
Head pro Tony Chateauvert says the Palm Beach Par 3 course is in the black and will soon have a new clubhouse.
File photo
The course that makes money
The public Palm Beach Par-3 Golf Course has consistently broken even or run a surplus, even through the economic downturns, according to Tony Chateauvert, the course general manager and head professional.
“We cover our expenses and operating costs and make a little bit of money,” he said.
Over the last five years, the Palm Beach course has accumulated about $373,000 in budget surpluses while Red Reef’s deficits rose 64 percent between 2008 and 2012.
Chateauvert is expecting the course to be deeper in the green with the addition of Palm Beach’s Renato’s restaurant, which will occupy the second floor of the clubhouse and offer ocean views.
The restaurant, which will serve breakfast, lunch and dinner, will pay more than $100,000 in yearly rent. Construction is almost complete and Renato’s is expected to open in January.
“The new building was paid for by private donors and the city gave itself a loan that we’re paying back. The course and new building is in no way subsidized by tax dollars,” said Chateauvert.
The Palm Beach Par-3 is a very different course than the Red Reef course, and those differences may explain why one makes money and the other doesn’t.
The Palm Beach course is an 18-hole course; Red Reef is nine holes. The Palm Beach Par-3 makes most of its money on greens fees, the pro shop and driving range. Last year, the Palm Beach course made $20,000 in beer sales.
Red Reef doesn’t have a pro shop or driving range or beer.
The Palm Beach course’s green fees are generally a little more than twice Red Reef’s fees in summer — $23 for 18 holes in Palm Beach, $10.75 for nine holes at Red Reef — but nearly the same if you played Red Reef’s nine twice for 18 holes. The Palm Beach green fees double in winter.
Palm Beach had 30,000 18-hole rounds last year; Red Reef had 27,086 nine-hole rounds. About 80 percent of the Palm Beach course’s players are nonresidents, and about 60 percent of Red Reef course’s players are nonresidents.
The Palm Beach Par-3 offers panoramic Intracoastal and ocean views from every hole. Players often describe it as a “mini Pebble Beach,” and Golf Digest magazine called it “one of the best par-3’s you can play anywhere.”
Red Reef, on the other hand, has a course layout between the busy A1A and the backyards of houses on the Intracoastal. Ocean views are largely obscured by trees, leaving tourists playing the course disappointed at not experiencing an ocean course.
The Palm Beach Par-3 was redesigned with new challenges in 2009 by Masters and U.S. Open champion Raymond Floyd. PGA instructors conduct adult and junior clinics and offers private lessons. Red Reef does not offer lessons.
People who play the Palm Beach course include professional golfers Jesper Parnevik, Michelle McGann and Beth Daniels, along with singers Vic Damone and Rod Stewart, inspirational speaker Tony Robbins and funnyman Larry the Cable Guy.
Chateauvert has played the Red Reef course and offers his assessment. “It’s a sensational property that’s such a special place,” he said. “It’s a place to play in flip-flops and get a quick nine. It’s great for kids and retirees. It’s not for people who want to play championship golf.”
Going forward, the question for district commissioners and the city is how much should they ask taxpayers to spend to subsidize dwindling numbers of golfers in flip-flops?
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