Background
This is an update to our August 22, 2019 article that provides a comprehensive financial analysis of the Price-Fazio Boca National Golf Course proposal. New financial information in this update article is from a presentation by Kimley-Horn to the Boca Raton City Council on August 27, 2019. The presentation can be viewed in PDF format here.
Our analysis below compares the financial information in the Price-Fazio proposal with the Kimley-Horn presentation using a time period of 25 years starting in January, 2018 and ending in December, 2042. The difference between the two is $15.5M
BocaFirst Analysis of Boca National
The following chart shows the financial comparison between the Price-Fazio proposal and the Kimley-Horn presentation. The main reason for the difference is the scope of the two plans. The Price-Fazio (P/F) proposal includes designs for a world class golf course; whereas, the Kimley-Horn (K/H) presentation defines a municipal golf course.
The rationale for the increased revenues is that a municipal golf course will generate more rounds of golf than a world class golf course
A key conclusion in the K/H presentation is that the Boca National golf course site does not support a world class facility. Furthermore, the K/H analysis states that investing more than $15M for construction will not result in increased green fee revenue.
The smaller financial loss in the K/H presentation is driven mainly by lower near-term design and construction costs. The K/H presentation also shows increased revenues that are partially offset by increased operations costs. The rationale for the increased revenues is that a municipal golf course will generate more rounds of golf than a world class golf course due to reduced green fees and a better golf experience for an average golfer.
The Beach and Park District commissioners favor the P/F proposal; whereas the City council members favor a project scale reflected in the K/H presentation. The City Council and Beach and Park District Commissioners attempted to reach a compromise on the above issues at a joint meeting on September 12, 2019. The key advantage of a mutually-agreed plan is funding of the construction costs. The City, with its large asset base is in a better position than the District to raise the necessary cash to fund the construction. Unfortunately, a consensus was not reached at the meeting and another meeting is planned for November 12, 2019.
Future Updates
We will continue to monitor updated financial information on the Boca National golf course project and update this analysis when credible data is presented in the public record.
Other contributors to this article: Jack McWalter.
