In a meeting held yesterday between Mr. Paul Kim ( the prospective purchaser), Mr. Lionel Railton, CEO of Morningstar, and the “Save Eaglecrest Committee” it was announced that if the Kim deal proceeds, the closing date would be moved up to Dec 31, 2006 and the Kim’s would operate the property as a golf course. Mr. Kim cautioned that he still has until Dec 22nd to make his final decision and that his decision will be based on the viability of the property as a golf course and not based on development of property. They did not eliminate, however, the possibility of a possible development proposal at some future date.
Mr. Railton stated that the sale, if completed, will consist of the assets of the golf course only and not the business. Therefore, the outstanding issue of golf memberships will remain the responsibility of the Operating Engineers Pension Fund (i.e., Eaglestar Golf Inc.). Mr. Railton further stated that Morningstar Golf Course would no longer be part of the purchase agreement and Eaglestar Inc would continue to operate that course. He also reiterated that if the sale does not proceed it is still the intention of Eaglestar Inc to shut down the course on Dec 31, 2006
Mr. Railton stated that the sale, if completed, will consist of the assets of the golf course only and not the business. Therefore, the outstanding issue of golf memberships will remain the responsibility of the Operating Engineers Pension Fund (i.e., Eaglestar Golf Inc.). Mr. Railton further stated that Morningstar Golf Course would no longer be part of the purchase agreement and Eaglestar Inc would continue to operate that course. He also reiterated that if the sale does not proceed it is still the intention of Eaglestar Inc to shut down the course on Dec 31, 2006
2 comments:
The purchase of our golf course by Mr. Kim can have only one outcome, the eventual closure and development of the property. The separation of the two courses, selling Eaglecrest assests only, and checking viability when the Operating Engineers have publicly stated the course is not viable indicate the value for the Kim's is in development, not golf. By keeping the course open without taking the current membership as part of the arrangement, Mr. Kim can gain some return of his money while pushing for the rezoning of the course. I see this as a clever way to keep the community off his back as he forges ahead with a plan for development and for the Operating Engineers to get their pound of flesh. D.Giesbrecht
"THE TRUTH ABOUT VIABILITY"
When the current owners of Eaglecrest Golf Course said that the golf course was "no longer...a viable business operation" they must have chosen their words very carefully. The words "viable" and "profitable" have very different meanings and are not to be confused. "Viable", according to many dictionaries, means "practicable" or "workable" while "profitable" means "yielding profit".
While the current owners probably yeilded an annual profit they have publicly announced that, given the significant amount of new capital needed to replace worn out facilties (mainly the clubhouse),market competition and other factors, they were unable to come up with a workable way to continue to operate (profit) under the existing business model. To use an old cliche, it was: "time to grab the money and run".
I am confident that a viable member-owned or municipally owned business model could be developed that, while "revenue neutral", would provide the capital needed to replace or upgrade the parts of the golf course that have been allowed to wear out without a capital replacement plan in place. By removing the underlying need for profit, central to the private business model, Eaglecrest Golf Course should be able to survive and prosper as the social, cultural, recreational, environmentally responsible and viable "heart" of the Eaglecrest golf course community.
I encourage all residents of Qualicum Beach to keep the real "truth about viability" in mind if the Kim's purchase the golf course. At some future time, the Kim's may also try to have us believe that the golf course "is no longer viable". We need to stay determined to keep our golf course community "viable" along with the lifestyle that goes with it!
Post a Comment