Canyon 9 Golf Course

The following regarding Mr. Guderian’s previous post of “Golf Course Knowledge” and subsequent reader comments.

The Canyon 9 Par 3 Nine Hole Golf Course is owned and operated by the Somersett Owners Association (SOA) as an amenity available for play by all Somersett residents for a fee. Play is also open to the public at a higher rate (see Canyon 9 Rate Structure at end of article).  Canyon 9 Operations are financially accounted for within the Common Area Operating Budget, which per 2018 contains the following related items:

Expenses:

  • C9 Operations – $320,000 (includes 3rd Party Maintenance Contract)
  • C9 Loan Interest – $20,116
  • C9 Operation Expense – $2,200
  • Other – None specifically identified as a Canyon 9 Expense (e.g., administrative costs)

Revenues:

  • C9 Green Fees, Equipment Rentals & Merchandise Sales – $36,000 (represents both SOA resident and public play)

The proceeding amounts are in keeping with expenses/revenues experienced in past years. As such, they represent a deficit of approximately $300K/year in Canyon 9 Operations to be made up via owner assessments, which amount to approximately $8.33/month.

It is unreasonable to expect Association amenities to be self-supporting, that is what association dues are all about. However, whether or not Canyon 9 serves a significant enough portion of the SOA Community to justify its expense has been put into question. Keep in mind it is one matter to question the financial justification of maintaining Canyon 9 as an Association amenity, but quite another to determine what to do with it should it be shut down.

Note that the biggest expense with regard to Canyon 9 is its maintenance. In the past, this service has always been provided via contract with the Somersett Country Club (SCC), which for the past two years was set at $309K annually. For 2018, this contract was recently awarded to Reno Green at $262K (a $47K annual savings).

In his response to Mr. Gurdrian’s post, Mr. Brooks expressed a concern on how the loss of maintenance revenue to the SCC, coupled with Rockery Wall failure liabilities, could impact SCC’s financial stability. This remains to be seen, as the SOA Board has not yet released any information on perceived SCC liability and/or legal action with respect to the Rockery Wall failures.

Canyon 9 Rate Structure

Seasonal                                                             Winter

  • Residents:  $7 Adult, $5 Junior                   Residents: $5 Adult, $3 Junior
  • Guests: $10 Adult, $7 Junior                       Guests: $7 Adult, $5 Junior
  • Public:  $20 Adult, $15 Junior                      Public: $15 Adult, $10 Junior

Comments Welcome!

 

 

4 thoughts on “Canyon 9 Golf Course

  1. “It is unreasonable to expect Association amenities to be self-supporting”

    No, no, no! It is completely reasonable that C9 be self supporting. This is not a government institution, it should be a for profit endeavor.

    I just got my Zillow report today and for the third straight month, my home value has dropped – and my property taxes are lower this year over last year.

    Why are our values dropping in the current RE market? HIGH HOA FEES, DUMMY. The higher the HOA fees, the less a family has to spend on a mortgage.

  2. Dusty

    We pay for amenities we use or may not use! They are supported by all the residents, that is why they are amenities.

    The real issue is why has the rounds played on Canyon 9 dropped in half … why are we supporting an amenity that we use less and less even though the number of residences paying dues (and folks living here) has increased by 1000 since 2013?

    Maybe golf is not a priority of Somersett residents … folks don’t buy here for golf. Golf like many sports, is declining in participation. We had a beautiful day on January 1st, the course was firm – but the CGC was closed … you would have thought having an impromptu (weather dependent) New Years Day open tournament would have had appeal… I would be interested in hearing from Somersett Golfers…

    Zillow is not a very reliable index, it does not properly value neighborhoods, views, security, solar panels, landscaping, schools…etc… and fluctuations (as I have seen on my property) seem out of sync with market realities … and all prices drop December thru March…

    It is a fact, that higher association dues mean lower property valuations. A $23/month jump in 2018 – over 25% for 2017 for the Somersett General, Common and Canyon 9. (Here we pay for two golf courses, $2.5 million in repairs to the rockery walls, a $1 million + for landscaping). This increase is for ever and ever and was not, I believe, in our community’s best interest.

    A special assessment of ~$650 should have been levied on all lots (+ those not yet on the “rolls”) I.e. 500 builder owned to-be built lots taking Somersett from ~3100 to ~3600 units. One time, lets get it done. Keep Our reserves at a comfortable level.

    We bought the CGC to help enhance property values… so you should ask our Board whether they are making the right decisions when they plan ahead, demand a say (by vote) in major financial decisions … what happens if the SGCC files for bankruptcy? What if there is another recession (last time 30% of the HOA dues went unpaid)?

  3. Almost $345,000 in expenses and $36,000 in revenue? Sounds like a government run operation – but I guess most of our two BODs are made up of current or former government employees.

  4. I think a review of the C9 usage and best ways to maximize revenue for 2018 and beyond would be appropriate if not already completed. What are the revenue expectations for the C9 in 2018? Do we have a 2-4-6 year plan with estimated expenses, potential upgrades identified with estimated costs, revenue expectations, risks identified and ways to expand current internal/external community outreach programs?

    I forget the gentleman’s name but a while ago there was 1 person who helped market/brand the C9 events. He continually looked for ways to increase revenue and attract golfers outside our community. If the same person today is supporting that role for the SGCC and C9, I believe that should change. SGCC has it’s own issues which require 24/7 attention. C9 has its own challenges and needs which could be overlooked while supporting the SGCC.

    There were several events in 2017 but did we market or use free notification opportunities outside our base residents here or standard articles within Somersett Living? Did we meet the expected revenue goals? Did we partner with local businesses to support their own customer focused events?

    With all the old history, frustration with wasted expenses, use of dues, lack of community awareness/notification, etc… time to move ahead while providing suggestions/ideas to support our wonderful community.

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