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Chapter 4: <br /> How Is a Golf Course Financed? <br /> KEY QUESTIONS: <br /> 1. What Are Your Total Projected Costs? <br /> 2. What Is Your Projected Cash Flow? <br /> 3. What Are Your Financing Options? <br /> Introduction good investment as well as a rewarding <br /> involvement. <br /> This chapter is not intended as a"textbook" At any rate, at this point you should have a <br /> on financing. It is probable that many of reasonably accurate estimate of the total amount <br /> you reading this are quite skilled in that area.In of money needed for the entire project, and are <br /> fact it is entirely possible that your thought of ready to determine the best way to fund the <br /> creating a golf course started with an idea you <br /> project. <br /> had on creative financing or land acquisition. <br /> You will be weighing whether all or part of the <br /> At this point you may have determined .that money should be from ashort-term or long-term <br /> different types of financing might be required at loan,note or bond.As noted earlier,the amount <br /> different phases;first for acquisition of the land of financing you can obtain goes hand-in-hand <br /> itself, then for course construction, then the with how much revenue you expect to generate. <br /> clubhouse and other facilities — and possibly In fact,the first question most lenders will ask is, <br /> even to cover the first few years of operation.In first <br /> much revenue do you expect to generate?" <br /> other words,it is rare that financing for astand- Citizens voting on a bond issue will want to <br /> alone public course without a real estate know that, too. <br /> development would be accomplished with a <br /> single loan or a turnkey bond issue. <br /> You may have related an acknowledged What Are Your Estimated <br /> community desire for a course to some existing Financial Needs? <br /> vacant land the city owns or has an option on. <br /> At times a planning group for a public course may <br /> Note: If you are a daily-fee developer, you make early misjudgments on what the total devel- <br /> might already own land that you know will opment costs will be—land,construction,all facili- <br /> increase in value if a golf course were to be ties and off-site needs. A good public course can be <br /> developed on it.Or,perhaps you just want to get created on a reasonable budget,but it is a serious <br /> into the golf business,and know it can be a very mistake to underestimate the total costs. <br /> Guidelines for Planning and Developing a Public Golf Course 25 <br />