Going, Going, Gone

Filed in archive Golf Business on October 7, 2007

Golden West Golf Course, Edmonton, Alberta

Take a good look at this golf course, as seen from space, courtesy of Google Earth. The next time they pass over the area to update it, you'll see an industrial park.

Call it the reality of being in business but it should be a warning to all golf courses in urban centers.

A 21 year old course in West Edmonton, Alberta has been bought to make way for an industrial park.

Golden West Golf Course has seen its municipal property taxes double in one year to 120 thousand dollars and, according to owner Paul McCracken, they can and likely will go higher.

The problem comes with how the land is zoned. It was classified as "agricultural land" for many years, thereby earning a low tax levy. But it was re-classified based on its market value.

Of course, surrounded by the oil-rich city of Edmonton, that "market value" is enormous.

Hence the price figure of $25 million for the 18-hole layout.

When re-zonings like that happen to golf courses with relatively short seasons like Alberta's, there's no way owners can stay afloat.

Just like family farms in North America, privately owned golf courses are being forced to sell to developers more and more frequently.

The flip side of the equation must be addressed, too, however. There are 75 other golf courses to serve Edmonton's golf population. The city is not large: just over 1 million inhabitants. So, Golden West's inability to pay a hefty property tax bill may also be due to an over-abundance of courses serving a relatively small population base.

Regardless, a mature, heavily treed layout is facing the bulldozer to make way for a business that CAN pay hefty property taxes.

As the city of Edmonton grows, pressures mount on city infrastructure. That, in turn, demands more funding which, of course, comes from the city's tax base.

It's a damn shame but life is rarely fair for long.