In this industry many golf course development concepts do not make it through the necessary rigors to completion, and ultimately to opening day. With all the challenges and hurdles associated with bringing a golf course to fruition, it is not surprising that many projects get derailed during the process. It can certainly be said that developing and operating a golf course can be a difficult business at times and one that is not for the faint of heart.

I had the opportunity to recently sit down with golf course developer Mr. Bryan DeCunha, who is nearing completion of his second golf course project to discuss his vision, business, and financial strategies.

Prior to commencing his current project, set to open in May 2008 in Carlisle, Ontario, Mr. DeCunha was involved in the development of the Royal Ontario Golf Club in Hornby, Ontario, with great success. The website for his exciting new project is www.namethecourse.com, and as the website suggests, Mr. DeCunha is going to award a membership to the contest winner who ultimately submits the winning name for the golf course. However, golfers have also been able to provide feedback to the developer on numerous different items (i.e., bunkers, forced carries, mix of holes, etc.). Mr. DeCunha took a unique approach with this golf course…he sought the input of his customers prior to construction. This is a fresh idea and one that I wanted to discuss with him first hand.

Attached are the highlights of our conversation.

RS: What types of businesses where you involved in prior to the golf industry?

BD: I was in the real estate development business. I built shopping centres and office buildings. I also put together real estate partnerships.

RS: What ultimately drew you into the business of golf?

BD: I was purchasing a horse farm on Trafalgar Road to build a new house for myself. The site turned out to be ideal for a golf course, and as I had a passion for the game, I pursued the opportunity to turn the property into a golf course (known today as Royal Ontario Golf Club).

RS: Although we know that Royal Ontario was a successful project, what were the driving forces behind building your new golf course in Carlisle? What did you want to accomplish?

BD: There is a certain challenge to being able to take a piece of rock and have the vision to cut and polish it into a diamond. My last project was very successful and it was time for me to move on. I wanted to build a golf course that was challenging yet fair, and would give the golfing public excellent value for their money.

RS: Now that you are near the end of construction, will that vision be realized? Any major changes along the way?

BD: I believe this course will deliver an excellent golfing venue at a very affordable price. Ultimately, it is the public golfer that will determine the success or failure of my vision. There have not been any major changes along the way, just a few tweaks here and there, much of that based on consumer feedback.

RS: Generally what do you believe are the key factors to being a successful golf course developer?

BD: There are several factors that influence the success or failure of a golf course. The location of the course and the cost of the land are the key building blocks with which to start. You must be prepared to build the best course you can, bearing in mind the financial limitations imposed by the greens fee that the golfing public would be prepared to pay. You must know your target market and your competition. Your goals must also be realistic, achievable, and based on facts. Your goals can’t be based in wishful thinking.

RS: As you will also operate your new golf course, what do you believe are the key factors to being a successful golf course operator in Southern Ontario?

BD: The golf business is a tough business to run. You must be prepared to put in long hours during the season – there is no substitute for a good work ethic. As an owner-operator, you must have your finger on the pulse of every aspect of the golf business. A public golf facility is entirely different from a private one. The conditioning of the golf course has to be just as good as a private facility, but with half the manpower and resources. Customer service cannot be compromised. Your must earn the confidence and the loyalty of the public golfer, so that they can genuinely say “I’ll be back”.

RS: Today’s golfer has a lot of choice. Tying into my previous question, what is your view of the local golf market? What will your customers want? Has the interactive website brought forward any differentiation strategies for your new club?

BD: There are those who say the local golf market is saturated – I don’t buy it. The GTA has more golfers per capita than just about anywhere in the world. Yes, there is competition out there, but without competition the golfing public would have no standard to judge you by. I set up the interactive website because I really wanted to know what my potential customers would like to see in their favorite golf course. There are divergent views, generally influenced by skill level, but there were a surprisingly large number of common threads that wove through the answers. We did modify and change some basic construction features based on the input from the website. For example, I had planned to put in very few bunkers filled with native sand materials. However, bunkers and sand were considered “very important” to more than 80% of the respondents. We now have about 100 bunkers filled with “Ohio” sand, which is the best that money can buy. About 30% of the respondents were women. They are a huge emerging market and I took great pains to make the course as “women friendly” as possible. Also, we modified the back nine to have three par 3’s, three par 4’s, and three par 5’s, directly as a result of the survey feedback. We were also very sensitive to pace of play issues and tried to eliminate as many ‘delay of game’ issues as we could.

RS: With the golf course opening in May 2008, what are the most significant challenges you have faced during construction?

BD: In building a golf course, you need Mother Nature on your side. Rain delays are bad whether you are playing golf or building a golf course. In order to be able to open in May, we need a normal fall season. If there is a lot of rain, we cannot seed and must reseed washouts, etc.

RS: Have you been able to stick to your original business plan and construction targets?

BD: We have been very diligent in sticking to original plans and budgets in the construction of the golf course. I will be modifying my plans in the construction of the clubhouse. I had hoped to build the clubhouse in two phases, but I could not accommodate the facilities that I had to in a smaller Phase One clubhouse.

RS: Financing the construction of any golf course can be a risky venture. From your perspective what were the keys to arranging the financing for this project?

BD: Since financing a golf course is a risky venture, there are very few lenders that get involved. You need a larger percentage of equity capital than you would in other commercial ventures. You also need the confidence on an experienced golf lender that can help you not only build the golf course, but also help you realize the targeted operational budgets and goals. Once you have stabilized cash flow, there are definitely more financing options; the trick is finding a financier that will get you there. The relationship with our financier will be a very important once as we complete construction.

RS: What are your long term goals for the golf course for the next 5 years? 10 years?

BD: My long term goals are to have a golf course that becomes a local favourite, and is an integral part of the greater community. There is no better accolade than to have the golfing public consider the course as a venue that provides excellent value for their money with courteous, efficient service.

RS: What are some of the best ideas you’ve had so far in the ‘name the course’ contest?

BD: A lot of people have had fun coming in with names for the golf course. Most of the names seemed to have a personal connection with the individual suggesting it. We have had several hundred suggestions on the web site and there are many that I like. I will be posting several suggestions on the web site, and we will be picking a name in the first week of September.

RS: Bryan, thank you very much for taking the time to speak openly with me about your new golf course project. Best of luck this fall in completing the grow-in. Hopefully the weather will be cooperative. I can’t wait to come and play golf at this exciting new course in 2008.

Hopefully the above has provided a valuable look into the thought process involved in financing and developing a new golf course venture. Although arranging financing for golf course owners is the world I live in every day, my goal was to provide you with some insight into the mind of a successful entrepreneur. I was intrigued by the interactive and open-minded approach that Mr. DeCunha has undertaken, and I look forward to seeing the finished product in the near future. Have a great off season and see you in 2008!

By: Ryan Spring

Ryan Spring is the owner of Ryan Spring Golf Financial Ltd. The company is responsible for originating mortgage financing for golf courses in Canada, exclusively for Textron Financial Limited Canada. For more information, to discuss the above, or to enquire about the financing needs of your golf facility, please contact Ryan Spring @ 877.395.5368 ext. 3477, rspring@textronfinancial.com, or www.canadagolffinance.com