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case, supply is lagging far behind demand. NGF's research pro- jections indicate that, to meet cur- rent demand, approximately 375 new courses are needed each year and at least 25 percent should be municipal. "Our tracking reports, however, show that only about 15 percent of those coming on line today are mu- nicipal," says Palermo. To those who may wonder if 375 golf courses a year is achievable, Palermo points to the 1920s and 1960s, the two great boom periods in golf course construction in the United States. The nation averaged 350 new golf courses per year dur- ing each of these periods. Looking beyond the market statis- tics, Palermo points out that a mu- nicipal golf course can produce its share of revenue dollars as well as provide a community with a recrea- tional/greenbelt asset. He cites a re- cent study by the American Societv of Golf Course Architects that com- pares municipal golf operations in the East, Southeast, Midwest and Rocky Mountains. It shows that mu- nicipal golf courses in these areas are now returning an average net profit of $141,482 per year. By re- gion, the averages are as follows: East ($148,000), Southeast ($396,298), Midwest ($108,783) and Rocky Mountain ($60,700). According to Palermo, municipal golf courses can economically boost a community in other ways as well. New businesses and industries often look to a community's in- ventory of recreational facilities when looking to relocate or expand their operations. Tourists and vaca- tioners consider golfing opportuni- ties when selecting a place to visit. In many communities, municipal golf courses offer the best value and are the best courses. Cape Cod is an example of such an area. It has seen the opening of three municipal courses in the past five years. The communities of Dennis, Brewster, and Yarmouth were motivated by their desire to preserve open space, and by the knowledge that both residents and vacationers needed additional golf- ing opportunities and were willing to pay fees that would sufficiently offset the capital and operational costs of these facilities. Because of the success of these three projects, 28/MAY 1989/P&R two other communities on the cape are now considering building their own courses in the next two to three years. To those who might shudder at the idea of committing their community to the cost of construct- ing a golf course, Palermo is quick to point out that many communities today are discovering there are ways to get theirs without going in debt. "The most significant trend in golf today," says Palermo, "is the num- ber of companies now specializing in developing municipal and public golf courses. These companies have been formed by people who not only are well aware of golf s tremen- dous growth and profit potential, but who also realize the benefits of joint venturing golf course develop- ment with municipalities." One of today's most common public/private joint venture approaches is the land lease agree- ment. This type of approach, says Palermo, requires land that is suit- able for a golf course. Under the first type of agreement, the municipality turns the land over to a golf course developer who builds the golf course and then leases it back to the municipality. The municipality operates the facil- ity and pays off the lease from the revenues generated by the facility, usually over a 15- to 20 -year period, after which the land and facility re- vert to the municipality. Carter Lake, Iowa; La Paz, Arizona; and Rapid City, South Dakota, are three recent examples of communities that have used this method to bring munic- ipal golf facilities to their residents. Under the second type, every- thing is the same --except, in this case, the developer operates the facility and pays the municipality a fixed annual lease fee for the land. Orange County, California, recently developed an 18 -hole executive