County in the golf business? Forsyth splits on buying a course

By Christopher Quinn

The Atlanta Journal-Constitution

A proposed county purchase of the Lanier Golf Club's 18 holes at a price that is multiples of its tax value has roiled Forsyth County and divided the Board of Commissioners.

There have been public meetings and questions over the $12 million price for the course when the tax valuation says the land is worth $3.6 million, and an appraisal filed last week by the owners says it is worth a maximum of $1.8 million. Some residents question the way two commissioners negotiated a proposed purchase semipublicly, and the nature of the deal itself. It would involve the county in a complex public-private partnership in which a course management company would borrow money from one of the course owners to buy from the county the right to operate the course.

"I do have a lot of concerns, and one of them is the process," said Vern Zachgo, a Laurel Springs resident.

The price is another, he said.

Golf courses are foundering, such as north Fulton's Country Club of the South, which is in foreclosure. The Forsyth course appraisal last week noted that fewer people are playing fewer rounds of golf, and courses are having financial troubles and dropping in value.

"What's the rush?" Zachgo asked.

Slow down and let people know what is going on, he counseled.

The course could be purchased with money from a $100 million bond issue for new parks and green space passed in 2008.

Some residents have spoken against spending park money for a golf course, but Brent Meadows, a member of the county Planning Commission, defended it. He said unlike the 750 acres the county has already bought with the money, this purchase would produce cash flow, thanks to the continuing operation of the golf course. It is a creative way to make green space pay, he said.

The community division is reflected on the County Board of Commissioners. Two members are pushing the purchase, two are putting on the brakes and Chairman Charles Laughinghouse is the swing vote.

Commissioner Patrick Bell, who is against it, said the controversy has frustrated him, overshadowing other business such as looming budget problems. The county is struggling with budgeting issues. For instance, Forsyth County is cutting SPLOST spending by 17.5 percent.

"We may need to take a step back from it for a while," he said.

But Commissioner Jim Boff, who helped negotiate terms of purchase, expressed frustration that the county has not already bought it. Almost none of the new park purchases have been in his District 5.

"There doesn't seem to be the spirit of cooperation that we had on other properties," he said.

More than 250 people turned out for a community meeting about the course three weeks ago. A majority of those attending supported the purchase. Boff and Commissioner Jim Harrell sponsored the meeting and talked openly about the deal, unlike other purchases whose details were worked out in executive sessions.

The public nature of Boff and Harrell's push and the other commissioners' resistance has garnered some of the public attention. Boff campaigned during his election to save the 172-acre golf course, which was nearly developed into a high-density housing development four years ago. Many citizens began campaigning then for the county to buy the course.

"For some reason, the county made [the purchase] a public issue, and it just is not the way to do business," said Jack Manton, one of the course owners. "Some people say the county should be transparent with everything."

But that does not apply to land purchases, which laws allow to be handled in closed sessions so sellers cannot eavesdrop on their thinking and find a way to drive up the price.

"Now it seems like it is a dialogue of all the bloggers and the tweeters, and everyone has an opinion and no one is dealing with the facts," such as the price, Manton said.

Charles Meagher, the county's retired former chairman of the county Board of Tax Assessors, said county tax valuation puts the land at $3.6 million. He asked, if the course is worth $12 million, or about $68,000 an acre, why aren't others lined up to compete with the county?

"Because it's not worth it," Meagher said.

Manton said the course, just outside Cumming's city limits, is zoned agricultural, but property surrounding it has been rezoned residential or commercial and developed. The county's land-use plan also lists his property as future high-density development. He is asking for a price in line with nearby development and the highest potential use of the property.

Harrell noted that other purchases of undeveloped land have cost $50,000 to $120,000 an acre. And the county had the land appraised last year.

Boff said, "All I can really say is the appraisal we had, in June I think, justifies that price."

Questions have been raised by residents about Manton being a part owner in the company that will partner with the county to buy the land.

The deal Boff and Harrell negotiated would let Affiniti Golf Partners of Alpharetta, a course management firm, put $3 million toward the purchase price to run the course for 99 years. Affiniti would also make $600,000 worth of course improvements and pay the county $2,500 a month. Forsyth would put up $9 million of the purchase price.

Manton said he will make a $3 million loan to Affiniti for the purchase. Banks are not lending to buy golf courses in these tough times, and this was one way to get the deal done, he said. If Affiniti were to go bankrupt, Forsyth would own the land, and Manton said he would be stuck with the bad loan.

Laughinghouse, who is the swing vote, has expressed interest in buying the land, though not necessarily as a golf course. He mused that perhaps a county vote on floating more bonds to buy the course would resolve the issue.

Boff said he could not anticipate when the commission might vote on the issue.

"I had hoped it would already be done, so I am not going to offer any new predictions," he said.