Log In

Reset Password

Government looking to offload Ocean View

Ocean View: The nine-hole course has been losing thousands of dollars annually and although Government don’t want to sell it they are in talks with potential operators.
Government are looking for someone to take over the running of Ocean View Golf Club.But anyone interested will be faced with the fact that the club has consistently lost hundreds of thousands of dollars a year.Over the past four years (up until January 31, 2009) the club has lost $1.4 million.

Government are looking for someone to take over the running of Ocean View Golf Club.

But anyone interested will be faced with the fact that the club has consistently lost hundreds of thousands of dollars a year.

Over the past four years (up until January 31, 2009) the club has lost $1.4 million.

Chairman of the Trustees, Wendell Brown, said over a year ago that Ocean View was no longer financially viable.

Brown said yesterday that the trustees were in talks with three groups about taking over the running of the nine-hole Devonshire course which was originally formed to give black players a course of their own when they were denied admission to other clubs.

A person associated with one of the groups in talks with Government said yesterday that anyone taking over the course would have to be "very creative" in order not to lose a lot of money on the venture.

Brown said the trustees, in conjunction with the Department of Tourism, were having talks with three separate groups.

"We have three applicants and we are still deliberating. I can't say much more than that. We are looking for an operator and certain conditions would apply to it," said Brown, adding, "it would not become a private facility. We are looking for an operator to operate the course. We are still talking to groups at this point and nothing has been decided. It would be inappropriate for me to say anything more at this juncture."

In an unaudited statement, Government admitted that "over the past few years Ocean View Golf Course has operated at a deficit. This has been increasing each year, from $340,000 in 2005/06 through $375,000 in 2006/07 to $427,000 in 2007/08. The deficit for the current year up to January 31, 2009 is $244,000, giving a total deficit for these four years of almost $1.4 million.

But before anyone takes charge of the course, Government and the trustees have admitted money must be sunk into the venture and that prospective operators must consider the installation of an irrigation system along with putting in a 100,000-gallon water storage tank or lake and pump station.

The cost? In excess of $600,000.

In the Request for Proposal (RFP) sent out to prospective operators, it is stated that the maintenance facility "is in poor condition and needs to be improved as a secondary priority. The estimated cost for this would be in the region of $500,000."

Government and the trustees are also looking for an operator for the long term (10 years or longer) and it could be a public/private sector partnership or a community/cooperative organisation to manage the entire facility.

Brown said in the past that the course had "been running at a tremendous loss."

One leading member of the golf community said yesterday: "Taking over Ocean View would be a big risk for anyone. It loses a lot of money and I don't know how anyone can turn that around. No question about it, it would be a big risk to take it over. Just the amount of money spent on staff is way too much."

In late 2008 Government sent members of Ocean View a notice that their fees would rise. And that was met with anger by many members.

But the trustees who operate the course said that the increases were necessary in order to keep the facility open.

Brown at the time said: "Originally we (the trustees) had considered increases of 20 percent but that would mean we'd still be losing $600,000 a year. Even with the new fees we anticipate losing $300,000.

"In the past we had relied on Port Royal to subsidise Ocean View.

"The problem with Ocean View is the traffic. It's only nine holes so unlike an 18-hole course you can only have so many on the course at any one time. That means fewer green fees."

Port Royal was reopened last summer and also had to raise their green fees significantly. It is now believed that Port Royal is losing money and cannot subsidise Ocean View and St. George's which has been closed.

Ocean View members who paid an annual fee of $1,500 to play in 2008 saw the rates rise to $2,000 in April last year.

Seniors, many of whom look back to the past when they were forced to mow greens and keep the course playable on what has always been regarded as a 'working man's club', are now charged an annual fee of $1,250 compared to the $780 charged in 2008.

Family membership which could be obtained for $2,565 in 2008 has now risen to $3,500.

Ocean View historically has been a working man's club and was taken over by Government in the 1990s but before that it was run by the members.

Also this week it was revealed that work on the closed St. George's Golf Course would hopefully start this year. The course has been closed since July, 2008.