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Corpus Christi Golf Study – Insights and Opportunities
Presented to the Corpus Christi City Council
April 16, 2010
by
Texas A&M University – Corpus Christi
College of Business
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Corpus Christi Golf Study – Insights and Opportunities
Executive Summary
The golf industry in the Corpus Christi area has suffered from the downturn in the US economy
and from a dearth of marketing of golf as an industry. Overall, the US golf industry has grown by
16% in the past decade. Due to weather conditions, the gulf coast region in the US has seen a
decline in golf in recent years.
Although golf participation has increased over the past decade and the number of courses in the
area has remained essentially constant, the City courses have seen a decrease in the number of
rounds and revenues have been below projected estimates in recent years.
Like many other municipally-owned golf courses, the City golf courses have gone through a
downward spiral in participation over the past decade in large measure due to a decreasing golf
maintenance budget, a lack of effective marketing, and supervisor positions that were left
vacant. According to a National Golf Foundation study (2005:37), the local golf market in the
Corpus Christi area can be considered soft, and the quality of the City’s courses has declined in
the last decade.
The City’s decision-making process and the relative lack of staff who have a strong knowledge of
the golf industry have been major issues that have impaired the management effectiveness of
the City’s courses. Decisions about capital projects have also resulted in awarding bids to firms
that have not done an adequate job of completing projects successfully.
Golf management information is inadequate and not timely and has made it difficult for staff to
make quality decisions. The fact that positions have not been replaced has resulted in
inadequate supervision, a failure to achieve performance goals, and a failure to establish and
carry out an effective operations and maintenance master plan for the golf properties.
There appears to be little or no marketing of the City’s golf programs, beyond advertisements in
the telephone directory and the City website. No overall marketing plan or marketing strategy
has been developed for golf.
This study suggests five options for the City administration and City Council to consider
regarding the management and operation of the City’s golf facilities. The advantages and
disadvantages of each of those options are identified herein.
The possibility of making the City’s golf courses profitable requires a change in the mental
models and paradigms of those making policy decisions about golf. Under proper management,
the City’s Golf Enterprise Fund should be able to contribute to the overall financial health of the
City.
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Corpus Christi Golf Study – Insights and Opportunities
Although the golf industry has grown in public popularity by double digits over the last decade,
and despite the fact that the number of golf holes available to City of Corpus Christi (the City) golfers has
actually decreased during that same time period with the recent closing of the King’s Crossing golf
facility, the status of golf as a municipal recreation activity has been a concern to both golfers and
community leaders as the number of rounds played per year have decreased. In context with the
slowing US economy of the past three years, the City has struggled to balance its budget and has
seriously considered the feasibility of privatizing the management of its two golf courses. The purpose
of this study is to present an overview of the golf industry in the City, identifying the major factors that
are affecting golf, proposing options for the City to consider in managing its golf facilities, and
recommending criteria by which to evaluate which of those options best meet the City needs.
The first section of this paper will provide an overview to the golf industry, including a brief
description of the general environmental conditions affecting golf and a summary of the local
competitors in the Corpus Christi area. The second section will provide a brief history of the City golf
facilities, including the key strategic decisions that have affected the course, the number of rounds of
golf actually played, and the past contribution of the Golf Enterprise Fund to the City’s General Fund.
The third section of this paper will address the management and operating effectiveness of the City golf
facilities, identifying problems with and identifying opportunities to improve the short-term and long-
term condition of the two golf courses. The fourth section of this paper will identify five options for the
City to consider in managing its golf facilities, together with specific outcome criteria associated with
evaluating each of these options.
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An Overview to Golf in the United States
As a recreational sport, golf has grown steadily in popularity and in public interest over the last
century. Beginning with the amateur success of American golfers Francis Ouimet and Bobbie Jones, the
American public slowly embraced golf as a topic of interest in the early years of the twentieth century.
Texas golfers, Ben Hogan and Byron Nelson, were recognized to be among the finest golfers in the world
in the years leading up to and following World War II and helped build interest in golf as a sport. In the
1960’s the emergence of the charismatic Arnold Palmer and the hugely talented Ohio golfer, Jack
Nicklaus, brought golf to the public forefront and spurred national awareness and participation in the
sport. Within the last dozen years, golf interest has increased exponentially world-wide with the
emergence of Tiger Woods who has become the world’s most well known athlete and the first athlete
billionaire. Woods not only increased public interest in men’s golf but has positively influenced the
growth of women’s golf and junior golf worldwide as well.
According to the National Golf Foundation (NGF), the number of rounds of golf played in the
United States has increased by 16% over the past decade and golf participation is currently growing
faster in the Southeast Region of the United States than in any other region. According to the NGF, golf
participation has increased from 3.5% of the population in the early 1960s to about 12.6% of the
population – or about 36 million golfers in the US. It is also true, however, that the golf industry has
been overbuilt with the construction of many new golf courses. The NGF reports that the number of
new courses has increased by 24% and the impact of that increase has been that many golf courses
nationwide are in deep financial trouble.
Factors which are most commonly cited for the decline in the number of rounds per course are
1) the declining economy, 2) the aftermath of 9/11 which has reduced the traveling golfer market, 3)
increasing time pressures on families and individuals, and 4) abnormally poor weather conditions over
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the past few years in much of the US. The latter factor has seriously impacted the golf-coast with an
average decline in the region of 4.5% in golf participation. According to the NGF, the number of golf
course closings has risen from an annual average of 24 courses per year from 1993 to 2001 to 60 in 2004
– with hundreds of courses throughout the US currently under financial stress.
Because of its status as a growing industry, the golf industry has not had to rely upon marketing
expertise because the expansion of interest in golf resulted in virtually all courses being profitable.
When the golf industry was faced with the four factors identified herein, few golf facilities or golf
managers were prepared. The response has often bid to simply cut prices – exacerbating the financial
pressures on golf courses and creating a downward spiral on the ability of courses to be maintained
properly. The resulting declining playing conditions made golf less attractive, creating decreased
interest, fewer rounds of golf played, and generating further price cuts in a downward spiral that has
predictably occurred throughout the US.
Fortunately, the growth in golf course development has slowed nationally with a 62% reduction
in the number of golf courses being built in the US between 2000 and 2004. Another positive trend, the
aging of America with Baby Boomers reaching retirement age, has increased demand for golf. The
number of rounds of golf per golfer increases dramatically for retired persons and Baby Boomers
represent the largest single demographic group in the US with the most disposable income of any
previous generation.
Historically, the role of governmentally-owned golf courses has evolved. To some degree,
during the early growth of golf the sport was considered somewhat elitist and played only by those with
money and free time. Many country clubs and private golf courses required a high membership fee to
join along with monthly dues and additional charges per round of golf played. Municipal golf courses
were often responsible for bringing golf to the general public by providing affordable golf. Golf courses
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were typically viewed as an amenity that also provided open space to the community. The goal for
municipal golf was typically to break even, and growing golf demand made breaking even relatively
simple to achieve. Many municipal-, county-, and state-owned golf courses were constructed during a
time when there were few private courses to compete with them. Golf grew from an estimated 3.5
million golfers in 1950 to nearly 27 million by 2000 – an increase over 770%.
With the changing role of the federal government and the decrease in the relative contribution
that it made to municipalities beginning in the last two decades of the twentieth century, many
municipalities saw the growth of golf in that same period as meeting a need to supplement shrinking
General Fund revenues. Cities saw the revenue from the growing Golf Enterprise Fund as an
opportunity to pay for budget shortages elsewhere in the city budget. However, municipalities were
not always ready or able to compete with expansion in the number of golf courses or in managing the
courses that they owned.
Local governments tend to respond slowly due to the nature of municipal bureaucracy, delays in
processing information quickly, and the lack of expertise of some municipal employees. Often budget
problems in other departments can adversely impact golf operations that used to rely upon those
departments for support services. In addition, municipalities typically lack marketing know-how critical
to promoting golf in today’s highly competitive environment. When major improvements are needed in
golf courses, the process for financing and budgeting those changes can also create lengthy time delays
which can undermine the reputation of a municipal golf facility that desperately needs a problem
addressed on a timely basis. Finally, elected officials and staffs may have little knowledge of the golf
business. When cutbacks occur and decisions need to be made, an across-the-board approach to
cutbacks just does not work for a Golf Enterprise Fund program dependent upon the availability of
resources to maintain the condition of a golf course so that golfers will return.
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Examining the Corpus Christi Golf Market
Although the number of golf courses in the Corpus Christi area is essentially the same today as it
has been in the past ten years, the condition of the local golf courses in the City have generally
deteriorated with the exception of the recent construction of Newport Dunes, an Arnold Palmer course
built in (year) and the excellent conditions at the Corpus Christi Country Club. The Kings Crossing golf
property is no longer playable due to poor management of the course by its present owner and the two
municipal courses have declined in overall quality and number of rounds despite efforts to address
capital improvement needs at both courses. The condition of the Pharaoh’s Golf Club has steadily
declined. The current owner of Pharaoh’s has been operating at a deficit for many years and has been
unsuccessfully seeking a buyer. Padre Island Golf Club has essentially maintained its quality and its
membership during this time period.
The demographics of the Corpus Christi market show that the population has increased about
XX% in the last decade. The family income is about 10% below the national income level and the
community is, in general, a middle- to low-income community that is predominantly bi-lingual with an
increasing population of Spanish-speaking residents. These demographic factors equate with a generally
lower-than-average golf participation profile as compared with the entire United States population.
Because the community is heavily blue-collar, the local golf market is sensitive to changes in the
economy and the most recent recession has continued to affect local golf. However, a large number of
Winter Texans also relocate to Corpus Christi in the cold weather months. That population includes a
large number of senior golfers who have disposable income and who are likely to be a prime target for
playing golf if course conditions and weather permit.
A survey of the golf courses in Corpus Christi conducted by NGF in 2005 reported “a drastic
reduction in play since, 2000, even though no new facilities have opened up in that time span” (NGF,
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2005:7). Although all golf properties reported declines, the NGF report noted that the City’s golf
facilities “lost 44% of their play over the last six years” (NGF, 2005:8).
There are currently nine public or semiprivate golf facilities within a fifty-mile radius of either of
the City courses. The following is a table which summarizes information about those courses:
Course Name Regular Tees Slope Age Driving Range Quality
Alice Municipal 6,099 100 59 No Low
Gabe Lozano 6,503 121 38 Yes Medium
LE Ramey Municipal 6,185 122 30 Yes Medium
Newport Dunes 6,435 113 2 Yes Excellent
North Shore CC 6,297 126 24 Yes Good
Oso Beach 5,728 112 71 No Medium
Padres Island CC 6,150 118 38 Yes Medium
Pharaohs CC 5,796 103 40 Yes Low
Sinton Golf Club 6,311 114 42 Yes Medium
With the notable exception of Newport Dunes, these courses are older facilities, with the Oso
Beach course being the oldest. The Oso Beach, Pharaohs, North Shore, and Alice Municipal courses are
well suited for senior play with North Shore having a “senior tee.” Only two of these facilities do not
have driving range practice facilities, although most of them have practice sand bunkers. Only the
Sinton course lacked a grill. Golf fees for these facilities vary during time of day and for weekend play.
The following table summarizes the rates for each of these courses.
Course Name Current 2005 Percent Current 2005 Percent
Weekday Weekday Change Weekend Weekend Change
Alice Municipal
Gabe Lozano
LE Ramey Municipal
Newport Dunes
North Shore CC
Oso Beach
Padres Island CC
Pharaohs CC
Sinton Golf Club
Average
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The Newport Dunes course is the most expensive and is also most inflexible with its rates, although that
course does offer a twilight rate.
The average number of rounds reported for each of these golf facilities in the last four years are
indicated in the table below.
Course Name 2009 2008 2007 2006 Percent Change
2005-2009
Alice Municipal
Gabe Lozano
LE Ramey Municipal
Newport Dunes
North Shore CC
Oso Beach
Padres Island CC
Pharaohs CC
Sinton Golf Club
Average
The local golf market in the Corpus Christi area has not changed appreciably in the last several years,
with the exception of the construction of the new Newport Dunes golf course and the closing of Kings
Crossing. According to a 2005 National Golf Foundation study of the Corpus Christi area, the “local golf
market in Corpus Christi can certainly be considered “soft.” All the area facilities have reported a
decline in performance since 2000. Reportedly, all of them are experience financial difficulties of
varying degrees (sic)”(NGF, 2005:37).
History of Corpus Christi Golf Facilities
The Oso Beach Municipal Golf Course (Oso) and the Gabe Lozano Senior Golf Center (Lozano)
are the two City golf courses. Oso was built in 1939 and is the oldest public golf course in the region.
The eighteen-hole course claims a lot of golf history and was the site of the Texas PGA Championship
from 1960 through 1964. Well known professional golfers who have played the course include Byron
Nelson and Ben Hogan, as well as Sam Snead, Ben Crenshaw, and Billy Casper. The Golf Professional,
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Red Taylor, served at Oso for sixty years prior to retiring in 2004. Currently, the Golf Professional at the
course is Marti Longoria-Potts. The course has no driving range, although it does have a small practice
area which includes practice bunkers, a small area where golfers may hit chips and wedges, and putting
greens.
The Lozano golf facility includes a nine-hole executive nine, an eighteen-hole regulation course,
and a lighted driving range. The course was built in 1962 on land that had been the former Corpus
Christi airport. Originally, the course was built and run by a group of investors from Kansas City who
gave the course to the City because it could not generate sufficient revenue to be profitable. The
Lozano golf facility and the Oso facility both contain small clubhouses that are old and poorly
maintained. Both courses suffer from insufficient maintenance, drainage problems, and inattention to
details in appearance due to inadequate funding to maintain the facilities.
The operation of the golf courses was managed through a personal services contract with Bruce
Haddad who ran golf operations at Lozano and with Red Taylor who ran the Oso operations. Employees
who ran the golf operations had been employees of the contractors, who also ran the golf pro shop.
The personal services agreements to run golf operations was terminated in approximately 1994 and the
City attempted to run golf operations through its own employees from that point. Golf course grounds
and facilities maintenance has always been provided by the City.
The City has periodically bonded to make necessary capital improvements at its two golf
facilities. One bond was issued in 1980 and a new $2.7 million renovation bond was issued in 2004. In
1998, the City implemented a surcharge on green fees, dedicated toward capital improvements at the
course or for building a new golf facility. A 2002 NGF study investigated the feasibility of building a new
golf facility and, after reviewing the two golf facilities and the condition of the two courses,
recommended that “money be invested instead in improving the existing facilities as the were found to
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be in poor condition” (NGF,2005:2). That study included detailed improvements at both the Oso and
Lozano courses that have not been implemented.
The City golf courses are currently overseen by an Interim Parks and Recreation Director,
assisted by a Recreation Supervisor who has an extremely limited knowledge of the golf business, one
relatively new Class A PGA professional who is not provided with management information to operate
the courses, and a Groundskeeper who has limited decision-making authority. A Golf Greens
Committee, consisting of public representatives appointed by the City Council and City employees,
meets periodically to receive reports about the golf facilities. The Greens Committee role is advisory to
the City Council and administration.
Although the City has a Golf Enterprise Fund, the golf facilities have not been “run like a
business” but have been allowed to deteriorate. Poor decisions appear to have been made about
investing in an maintaining the golf facilities, and the two golf courses continue to have major
maintenance problems. According to the Groundskeeper, the City has been very slow in responding to
problems that have arisen that need correction (e.g., repairing a sewer line serving a rest room at the
Lozano facility that has lingered for many months).
More importantly, the awards given to contractors to make capital improvements have been
poorly evaluated and have resulted in projects being completed at Lozano that have 1) never worked
properly, and 2) involved the installation of equipment that has not worked properly and must be
replaced. A major irrigation system just installed at Oso has also been a problem and golfers complain
about the failure of the City to “get it right.” Although the City has asked the NGF to conduct two
studies of golf in Corpus Christi, the recommendations made by those studies have not been followed
and it is not clear that these studies have been either carefully read or understood by those who actually
make decisions about the City’s golf program.
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In context with the pressing financial problems facing local government, it is understandable
that golf operations and maintenance are not the top priority of the City Council and administration.
However, in retaining decision-making power while failing to fully understand the nature of the golf
industry the City has allowed its golf facilities to deteriorate and has inadvertently contributed to the
deterioration of the golf courses as 1) a community amenity and asset that serves local golfers, and 2) a
healthy and self-sustaining enterprise fund that can contribute to the City’s General Fund and actually
help to reduce revenue problems that face the City.
The following table reflects the total number of golf rounds at the City’s golf facilities since 2000,
the revenues generated by golf, golf related total expenditures during this same time period, and the
net profit/loss of the City golf program year-by-year:
Table of City Golf Rounds and Financial Condition by Course
Year Oso Beach Oso Beach Oso Beach Gabe Gabe Gabe Lozano Total
Rounds Revenue Expenditures Lozano Lozano Expenditures Profit/Loss
Rounds Revenue
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
The reduced number of golf rounds in (years) was, in part, due to (reasons). This table demonstrates
that (findings and interpretations).
Because the City has faced budget pressures affecting many municipalities in the state of Texas,
the City’s administration and City Council have hoped that the Golf Enterprise fund would be able to
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contribute to the General Fund and help the City to improve its financial position. Although the City had
hoped that the Golf Enterprise Fund could contribute $250,000 per year to the General Fund, the actual
contribution over the past decade has been $X. (Explain that significance financially.)
Despite the struggles that the Oso and Lozano facilities have faced, the two golf properties
nonetheless have excellent potential to be successful financially, and the opportunity is present to make
necessary adjustments to optimize the value of these golf facilities. Because golf has not been overbuilt
in the Corpus Christi area, under a new management approach the City’s golf courses have the potential
to contribute to the financial good health of the City in years ahead.
Management and Operations
The City administration has made a conscious decision not to fill positions in the golf
organization but has given responsibility to staff members that are both ill-equipped to understand the
golf industry and lacking in operational information by which to make wise decisions. Decisions about
capital projects, properly maintaining the courses, and marketing the golf program have been difficult
for uninformed staff members and the City’s financial position has created pressures that have
perpetuated a downward spiral in golf course maintenance and the perceived quality of the golf
courses. This downward spiral phenomenon in the management of the City’s golf program has
occurred in many communities throughout the US, and the City is not alone in falling prey to its current
paradigm for managing its golf courses. However, changing that paradigm and managing the golf
program more profitably is a choice that the City Council and City administration can consciously make.
The following are specific examples of golf operations problems that can be immediately
improved and that will enable the golf program to run more effectively.
1) Golf Decision-Making. Those who supervise the golf pro and course superintendent are
not knowledgeable about the golf business but have been trained in other areas of Parks
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and Recreation administration. Golf staff must be able to respond promptly and wisely
when problems occur, but the present decision-making system is untenable and
bureaucratic – often requiring the golf pro and course superintendent to obtain approval
from these administrators and staff who do not understand the implications of their day-to-
day operations. In addition, support services from other City departments must be provided
on a timely basis if repairs and course improvements are to be made so that the quality of
the courses can be maintained. From the information available and from our observations,
it appears that the City is not equipped to make timely and effective decisions about even
the most basic of golf decisions ranging from the repair of a toilet to the overseeding and
maintenance of greens and fairways.
2) Golf Management Information. The City cannot operate its golf courses efficiently and
effectively if information is not accurate. Currently, operational reports and financial
information are not made available to the golf professional and course superintendent that
are presently working for the City. The current golf pro reports that the Point of Sale
management information system does not operate correctly and is incorrect. The course
superintendent also reports that the financial information provided by the City accountants
are typically at least six weeks out of date. Timely information about revenues and
expenditures, along with the delegated power to make decisions to achieve agreed upon
goals on a timely basis, must be given to staff who are operating the golf facilities.
3) Capital Projects. Our initial observation of the two City golf facilities indicated that the
courses appear to be badly maintained, suffering from inadequate drainage and
maintenance, and their clubhouses are unattractive and antiquated. Capital improvements
that have been made have not resulted in solutions that adequately address course needs.
The sprinkling project at Lozano resulted in the contractor installing sprinklers that are sub-
standard in quality and that are hard to repair. The bid for this project came in lower than
the engineering estimate. It is well understood in the capital projects business that the
installation cost of a capital expense cannot be the only figure used in evaluating the cost of
a project. The course superintendent and his staff have had ongoing problems with the
Lozano sprinkler project and the system is not operating correctly at this time. Similarly, the
Oso irrigation project is also not operating properly and golfers who play the course
complain about the smell associated with the project. Decisions about capital
improvements need to be made by experts who understand the implications of awarding a
bid to a low bidder, particularly when that bid is significantly below the estimated cost of
the project. Not only must projects be more effectively managed but the City must adopt a
long-term Capital Improvement Plan for its golf facilities in order to ensure that these golf
properties are perceived as attractive to present and future customers.
4) Golf Maintenance Plan. The key to high customer satisfaction for a golf course is to
properly maintain the course to ensure that its fairways, tees, and greens are in excellent
condition and that other golf course facilities (e.g., cart paths, rest rooms, clubhouse, and
driving range) are also properly maintained. We did not see evidence of any formalized golf
maintenance plan, calendar, or time table which is essential for long-term maintenance
planning. Like any capital asset, a golf course has predictable physical maintenance needs
and the deterioration of golf course features and characteristics need to be planned for and
addressed.
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5) Golf Operations. The condition of golf carts at both facilities needs more attention. Golf
cart staff are not adequately monitored nor held accountable for keeping carts in proper
operating condition. The cart maintenance problem was identified in the 2005 NGF study
(NGF, 2005:11), but appears to continue to exist. Punch card accountability continues to be
a problem. Our observation was that the golf course staff, who often have been
transferred to work at the golf courses from other departments without adequate training,
did not know how to access the record keeping system associated with punch card
information tracking. The punch card problem was an issue also identified in the 2005 NGF
study which noted that the number of punch card rounds averaged 29.65 rounds per punch
card sold – a particularly disconcerting fact inasmuch as the number of rounds per punch
card should only be twelve (NGF, 2005:12).
6) Personnel Supervision. Golf is played during daylight hours and supervisory personnel must
be available seven days per week to monitor golf course operations, oversee staff, and make
timely decisions when problems arise. The decision not to replace supervisors who have
resigned or who have been reassigned may have saved the City short-term costs but long-
term the quality of golf course operations has suffered. Golf operations must be
monitored. The 2005 NGF report noted that both of the golf courses have no
manager/supervisor at the course for much of the time. The report noted that this failure to
staff adequately “should be a significant concern as it leaves unqualified staff in a position of
having to make important decisions that come up during the course of business . . .
(especially) on weekends when 50% of the revenue is produced” (NGF, 2005:11).
7) Course Pace of Play. According to customer feedback obtained from (surveys?) and
interviews with individual golfers, pace of play is a concern for many golfers. With
inadequate supervisory staff much of the time, it is hard to monitor pace of play.
Nonetheless, pace of play is one of the factors which leads to customer satisfaction and
needs to be monitored regularly.
8) Marketing. There is no visible marketing program for the City’s golf courses beyond the
City’s website and the telephone directory, and the failure to market the golf program is a
common problem of municipal golf programs. In fact, the growth of golf in the US made it
unnecessary for the golf industry to do much marketing. Marketing is about far more than
simply advertising, but includes positioning a product to fit the needs of customers. The
City courses have very small junior and women’s golf programs, but these programs are
often very successful in other communities throughout the US. We note that the 2005 NGF
study noted that the golf program needs to be adequately advertised and marketed to a
target audience in order for golf revenues to reach levels achieved in the past.
The City golf courses must be viewed in context with the other municipal and semi-private golf
facilities serving the Corpus Christi community. The Corpus Christi golf industry has failed to
create a high level of public interest in golf, and opportunities exist for the City to play a major
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role to improve the operations of its two golf facilities and utilize golf to improve the quality of
life in the Corpus Christi community.
Golf survey data about the City’s golf program report the following key information:
(Conduct a survey of golf at the two City courses and compare those results with the data from a
similar survey of golfers from the other four project teams.)
Options to Consider
Developing the most effective approach to managing the City’s golf facilities involves
considering a broad variety of complex variables. The challenges of implementing change for
any organization are extensive and the City faces a broad variety of barriers in managing a
change process. Based upon the presentation made by the City’s Director of Intergovernmental
Relations, Rudy Garza, who explained the City’s interests for managing the golf program, the
goals of any solution proposed are 1) to enable the City to maintain its control of the golf
facilities and associated decisions, 2) to improve the quality of the golf product offered to
golfers, and 3) to optimize the ability of the golf program and its Golf Enterprise Fund to
contribute to the City’s financial position long-term. Those three criteria form the basis for
considering the options contained herein.
The City has a strong financial interest in the golf program operating as a well-regarded
City activity provided for the community. Balancing the quality of golf with the cost of that
amenity is a highly desired outcome. Ideally, the options considered will enable the City to
achieve both an improved quality of golf and a better economic outcome. Achieving those
goals while maintaining control of the golf properties as municipal assets are optimal objectives
that would enable the City to honor its governance role to the community. The following
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summary of five options for the City to consider are proposed with each option addressing the
three criteria briefly described above.
1) Hire Additional Staff and Manage the Golf Courses Internally – In order to do an adequate
job of managing the two golf courses, the City would need to hire an individual who is a
competent manager skilled in working within a municipal context, a knowledgeable leader
who can quickly earn the followership of the golf course staffs, and an effective
communicator who can work with the City administration and elected officials as easily as
(s)he can motivate golf course employees. At least one other individual also needs to be
hired to manage golf operations full-time at Lozano. Currently, the golf courses are
understaffed and qualified supervisory staff are necessary create workable golf operations
and golf maintenance plans for each golf course and to give existing staff clear direction.
The advantage of this option is that hiring well-qualified staff internally would enable the
City to increase internal understanding of the golf programs both up the organization and
with lower level employees who are currently not accountable to realistic performance
goals. An effective Director of Golf who had the support of the City’s top administration
could also be effective in obtaining cooperation from other key departments. A major
disadvantage of this option is that this position would require a strong individual capable of
cutting through the City’s bureaucracy. At present the decision-making and management
support functions that support the golf programs are a part of the management problems of
the golf program, and managing the golf program from within the organization would
require significant paradigm changes within the City for this option to be truly effective.
2) Contract the Management of Golf Operations and Maintenance to an Outside Firm.
Entering into a long-term relationship with a golf management firm to manage the
maintenance and operations of the golf courses would allow the City to take advantage of
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the talent and expertise of a professional golf management firm that is familiar with all
aspects of the golf business. A critical factor in this option is the degree of control which
the City would need to give up in negotiating this long-term relationship. Another factor is
the net cost to the City that would result from implementing this option. Hiring a golf
management firm would require establishing performance criteria for the City’s two golf
courses. The City would also need to be prepared to terminate or reassign current golf
personnel and sell existing equipment, should the management company not want to utilize
all existing personnel and/or maintenance equipment. An advantage of this option is that
the City would be able to ensure itself that the golf courses would be professionally
managed. A disadvantage could be that the City would suffer a significant dollar loss if the
management contract was not favorable to the City. All costs associated with this contract
would need to be considered, including the costs associated with writing off the value of
existing golf equipment not sold to the management company that could not be used
elsewhere in the City.
3) Contract with an Individual to Run the Golf Business as Director of Golf. This option would
be a hybrid of option one and two but would be a personal services contract with an
individual Director of Golf rather than with a golf management company. The advantage of
this option is that the City would be able to maintain more flexibility, depending upon the
nature of the agreement, with an individual selected as Director of Golf. The disadvantage
of this option is that it would not prove to be productive if the City did not empower the
Director of Golf to make decisions, and did not provide her/him with the resources and
support required to make the requisite changes in the golf program.
4) Enter into an Agreement with the Texas A & M – Corpus Christi School of Business. Under
this option the City and the university’s School of Business could develop a partnership that
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empowered the School of Business to manage the golf facilities under a mutually suitable
performance agreement. Under this option, the City and the university could share profits
generated by the Golf Enterprise Fund on an agreed upon basis. As part of this agreement,
the City could ask the university to create a Professional Golf Management program that
partnered with the City to utilize university students as golf course employees. Business
school students could also develop marketing and golf-related business plans to help the
City to improve the effectiveness of the golf course operations. The advantage of this
option is that it builds upon the partnership between the City and the university that has
been established in the past and benefits both entities. The university, the City, and the
golfers could accrue a shared benefit from this option and the golf program could be run
under the joint responsibility of a board consisting of members appointed by both the City
and the university. A disadvantage of this option would be that it is a creative solution that
would require some degree of risk for both the City and the university.
5) Implement a Combination Option. Creating an option that combines the best features of
any of the other four options is also a possibility. The advantage of this choice is that the
City would retain flexibility in its ability to craft a solution that best meets City goals and
objectives. A disadvantage of this choice is that the City decision-makers have struggled to
make good long-term or short-term decisions about golf over the past decade and it is
unlikely that the quality of decisions is likely to improve under the current policies, systems,
and structures of the City.
Each of these five options requires that the City seriously reevaluate its goals regarding its golf courses.
The evidence suggests that the golf program, the golf courses, and the Golf Enterprise Fund have not
been as effectively managed over the past decade as they might have been if trained and professional
staff were available to guide the City and the golf program. Based upon the record of the City golf
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program in the past decade, it is unlikely that the golf program and the golf courses will be run more
profitably unless and until the City is able to develop a different model for governing and overseeing the
City golf program.
Conclusion
Albert Einstein, the German scientist often considered to be the most brilliant mind of the
twentieth century, is reputed to have observed, “The significant problems we face cannot be resolved at
the level of thinking that we were at when we created them.” This quotation may well apply to the
management of the Corpus Christi golf program. Over the past decade the City golf program has fallen
on difficult times and the problems that the two City golf courses now face are imposing and challenging
– especially in light of the fact that City personnel seem to lack both expertise and experience in
understanding how to effectively and efficiently manage a golf program in difficult economic times.
In this study we have made the effort to present to the City Council a brief summary of the
problems faced by the golf program. We have provided information that cites applicable general
environmental, industry, and competitive environment factors affecting the Corpus Christi area golf
industry. Our report, though quite brief, is based upon our review of the City golf facilities, our
interviews with City employees at all levels, a survey of local golfers who play at the Oso and Lozano golf
courses, and our research associated with the golf industry.
In making decisions about the future of golf in Corpus Christi, the City administration and City
Council have the opportunity to rethink their paradigms about the golf program and develop solutions
that contribute to the quality of the City’s golf courses and the overall financial health of the City. The
growth of the golf industry nationwide and the relative lack of participation in golf in the Corpus Christi
area suggest that there opportunities for the City to make substantial improvements in the golf
program. Under any of the five options provided in this report, the City Council will have the
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opportunity to develop a new model for managing the City’s two golf courses. Although this report does
not propose a specific preferred recommendation, we have nonetheless made the effort to identify the
advantages and disadvantages of the options considered herein. We encourage the Corpus Christi City
Council and staff to carefully consider each of these options and to make a decision that best serves City
golfers long-term.
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