It was a packed house at the Feb. 17 Westchase CDD Workshop. There were two items on the agenda that drew the crowds: 1) greenspace use and the potential to add a new sports field and 2) the potential for the Westchase CDD to purchase the Westchase Golf Course.
CDD Chair Matt Lewis opened the floor to audience comments to start the meeting. A representative from The Shires read a statement on behalf of Shires Voting Member Barry Anderson, who could not attend. She then presented a petition opposing the addition of a sports field in a lot adjacent to the library that backs up to the community, which was signed by 114 residents of The Shires (representing more than 50% of Shires households).
Following the statement from The Shires, Supervisor Chris Barrett clarified that there had been a misunderstanding regarding potential plans to add a field. He noted that there had been mention of a sports field with lights and the board had never discussed lights. Barrett added that if 50% of Shires residents are opposed to adding a field in that location, he had no interest in discussing it further.
Lewis chimed in to clarify that the drawing of a proposed field that had been circulating was one that District Engineer Robert Dvorak had drawn up two years ago as part of a larger discussion about the potential to add greenspace in the community. “The field never had teeth,” he said.
There were also quite a few residents in the audience from Windsor Place and Mandolin Reserve — communities that are part of the Park Place CDD that also abut the land in question. Cathy Powell, who serves as Park Place CDD Chair, but was speaking solely as a resident, asked that the Westchase CDD keep the Park Place communities in mind when they make decisions that would also affect areas outside of the Westchase CDD boundaries.
Golf Course Discussions
Please note: the following represents very preliminary discussions about the potential to purchase the Westchase Golf course, including a presentation by Golf Course Consultant Greg Christovich. This process is in the fact-finding stage.
District Manager Heather Dilley turned the floor over to Golf Course Consultant Greg Christovich, who attended by video. Christovich offered a bit of background information about the golf course, which was built in 1992. The current owner, Nick Neubauer of the Sano Corporation, has owned the course since 2005. Christovich explained that he was first engaged by the CDD Board in 2018 and he conducted a full due-diligence assessment. At the time, the golf course was losing money and had roughly $1.3 million in deferred maintenance. He added that the asking price was $2 million over the valuation at the time and the board decided to pass.
Christovich said that Covid led to a resurgence in golf. Fast forward to today, and golf is very healthy. Current estimated revenue is 3.5 million on 47,000 rounds (double 2018). Estimated 2025 EBITA is $1.1 million. He added that the capital needs are also likely much higher because there have not been any major capital improvements.
Christovich also explained that there has been a feeding frenzy of private equity and institutional buyers scooping up golf courses – something the industry hasn’t seen in 35 years. Courses are selling at exorbitant prices and the seller’s value proposition is based on recent transactions (Cheval, Lakewood Ranch, etc.)
Supervisor Reggie Gillis interjected to clarify that the board does not currently have all of the details because they don’t have access to the books – the information they are using is based on conversations with the general manager/owner. Gillis also emphasized that there is a big difference between a private owner and the community owning the course. “I want to make it clear, we can’t go into further details until we get more info,” he added.
Supervisor Greg Chesney agreed. “This is 200 acres in the middle of Westchase – it will benefit us all,” he said.
Christovich said the CDD could consider a Letter of Intent (LOI), which is not binding. That would allow for further inspections to let the CDD know what they would potentially be getting.
Dilley asked Christovich about last time the CDD was able to get into the books. He said it was 2018 and the board signed an NDA that allowed him access to the books. Greg Chesney countered that the board actually had a letter of intent at that time.
Christovich concluded by commending the board for looking ahead and planning for the community’s future. He encouraged the board to consider trying the move the process forward and reminded them to keep in mind that it’s not just a golf course; land is super important – it’s a footprint for what the future vision is for the community and the potential for creating a new gathering space (ie. a new clubhouse).
CDD Chair Matt Lewis said he wanted to engage the HOA because they are a partner. “We hired Kai to help with community outreach. I feel like the next step is to start those conversations.”
Gillis added that they really need to try to plan this process out during the upcoming CDD workshops.
Chesney added that he felt this could be a profitable investment for the community, but it’s would be worth it to him simply to prevent what could happen otherwise.
Gillis agreed, saying that the goal is to protect the community.
The board opened the floor to audience comments/questions. One resident asked how they would pay for the purchase if they moved forward and the board said it would be a bond.
Another resident asked what would prevent a developer from purchasing the property. The board explained that it is strictly a rezoning issue and property gets rezoned all the time.
Gillis said that residents should look at locations like Pebble Creek and Plantation Palms as examples of what can happen to a community when a community golf course shuts down.
Someone asked about the number of potential units that could be built if a developer purchased the property. Supervisor Chris Barrett said that would depend on the zoning. He said the biggest danger lies in the front of the course where there is a potential for high-density developments (ie. apartments) and the rest of the course could also be developed piecemeal.
Janie Stone of The Greens said that everyone is probably behind the concept of owning the golf course, but she xpressed concerns with the cost of upkeep. She pointed to the example of recent sidewalk repairs that cost far more than anticipated. Chesney said there were some management issues during the sidewalk repairs that have been corrected. He added that the new management company has experience in the realm of golf courses.
Matt Ring asked about the potential percentage decline in home values if the golf course doesn’t remain a golf course. The board said they hadn’t gotten that far.
Editor’s Note: During the March 3 CDD meeting, there was no action or discussion on next steps for the golf course. The conversations will continue during the next workshop on April 21 at 6:30 p.m.