Memberships not being renewed as owner fights to keep course open
Members of The North Sound Club Golf Course were advised by letter this week that their memberships will not be renewed.
The letter, which was dated 7 November and was signed by North Sound Club General Manager Davy Ebanks, noted memberships expired on 16 November.
“Please be informed that due to a number of factors, we are not in a position to extend an offer to renew your membership beyond that date,” the letter read. “We regret the circumstances that have made this decision necessary and want you to be aware that we have and will continue to work to find ways to keep the course open and golf available past the 16th.”
Mike Ryan, developer of The Ritz-Carlton, Grand Cayman and the Dragon Bay project – of which the North Sound Club is part – said he was not going to close the golf course immediately and was going to try his best to keep it open going forward. “But I don’t know if I can keep it going,” he said. “I’m not going to keep writing a check every month.”
Mr. Ryan said the shortfall of revenue against expenses was between $60,000 and $100,000 every month, with the single largest expense being water for the grass on the course.
“It depends on how much rain we get and how much play we get, but that’s the range,” he said.
While rainy months like September and October require the purchase of less water for the golf course, the rain keeps golfers from playing. In addition, those months are the slowest for tourists using the course. Mr. Ryan said he has only asked the government for two things with regard to the Dragon Bay development.
“One is to allow us to produce all our own water, and the second one is to get freehold ownership of the property,” he said. “Both things, at various times, have been agreed to by [the government] but they can’t seem to get it done.”
The Ritz-Carlton/Dragon Bay property is situated on leasehold property, which the government owns and leases out on a 99-year basis. Mr. Ryan said it is essential for the success of Dragon Bay that the leasehold to get converted to freehold title.
“In today’s market, to get investors and sales of real estate, particularly to Americans, you have to have freehold,” he said.
In exchange for the freehold title to the property, Mr. Ryan said he had offered the government CI$10 million plus an additional 2 per cent stamp duty on land transfers in the development in perpetuity. In addition, Mr. Ryan said the big benefit will come from all the economic activity that will arise from the Dragon Bay project going forward. “It will come out to between $300 million and $600 million depending on how far you project the time.”Mr. Ryan said he had investors ready to pay the $10 million straight away and work on a new roundabout for the project and the Port Authority marina project could start within three months afterward.
Although he recognises golf is very important to Cayman’s tourism product and the closure of the North Sound Club would represent “a real black eye” to Cayman, Mr. Ryan said he might not have a choice. “We’re trying everything we can to keep it open, but I’m at the point now where we can’t keep throwing money down a hole hoping the government will do something,” he said. “If [the government] doesn’t help, it’s going to shut.”
In the meantime, the golf course will remain open on a “pay to play” basis.
“The goal for pay to play is to actually lower the cost to expand accessibility,” he said. “We’re trying to make this a turning point to make this good news.” Although Mr. Ryan knows there are those opposed to him getting any support from government, he said the detractors represented a “noisy minority”.
“The vast majority of the island recognises the benefit of The Ritz-Carlton; they recognise the benefit of golf; they recognise the benefit of having Dragon Bay go forward.” Premier McKeeva Bush said he was hoping to meet with Mr. Ryan to discuss the situation with the golf course this week. He said he had recently received a letter from the Cayman Islands Golf Association about the possible closure of the North Sound Club. A copy of that letter, which is dated 31 October and signed by Golf Association President Joel Dodson, has been obtained by the Caymanian Compass.
“As I am sure you are aware, the owner of the North Sound Golf Club has indicated that he may be forced to close the golf course,” the letter reads. “Based on our discussions, the golf course does not appear to be financially viable in its current state.
“We believe that the resulting closure of the North Sound Club would have a seriously detrimental effect on the future of golf here in the Cayman Islands. This would not only affect those of us who play on a regular basis and destroy our flourishing junior golf programme, but would also diminish Cayman’s tourism product.”
After highlighting the importance of the North Sound Club to tourism, residents, the junior golf programme and to charity golf tournaments, the letter states the Cayman Islands Golf Association believes it is important to support the current ownership of the golf course to ensure it becomes financially viable. “For that reason, we ask that the Cayman Islands government consider providing the requisite support to the North Sound Club in order to ensure that the golf course remains open.”
Mr. Bush said the government understood the North Sound Club was important both to residents and to tourists.
“Government will look at what needs to be done to help keep [the North Sound Club] open,” he said.
.jpg)
Related Videos
Maybe lowering the price locals pay might increase the amount of play the course gets. I would love to play the course a few times a week but the cost is too high and there are time restrictions that limit when you can start.
I know it is not much but there are plenty of local golfers ready to play if they could just afford it.
Mr. Ryan has tried everything??? How about dropping the fees to make the course more affordable? My wife and I try to play twice a week during the season. Often times, we are the only people on the course. I think he would see a gratifying jump in play and revenue if he would charge realistic greens fees. And just imagine the potential extra bar and food revenue if the number of players incresed.
The current green fees are an overwhelming barrier to playing golf here. If you include a couple of drinks and lunch, the average foursome will likely spend a combined 800 to 1000 to play one round of golf. I didn’t even bring my clubs to Cayman for that reason alone. At those rates, there is much more value in other forms of entertainment for tourists and locals alike.
If there is a civil servant out there, I’d like you to check and see the ownership history of this piece or north sound land Mr. Ryan has acquired.
This could very well be the same piece of land that a certain legislator of that day acquired and I am curious to know the history of this piece of property from beginning to end.
Ownership and change of hands on this piece of property is of particular interest, politicians were known to take people’s land depriving them of their inheritance throwing them into extreme poverty.
Now you should understand why people in the Cayman Islands are against crown land swopping. We are also against taking the people’s land. Mr. Ryan was not here in the late 60’s or 70’s and he is not responsible for the actions of crooked politicians in charge of the country at that time. But it is a very interesting piece of land and I am suspicious that most land even when government purchases it from poor Caymanians always wind up into the hands of foreign developers and the people are deprived of its enjoyment.We have a serious problem in this country and it remains to be seen whether this present governor will demand transparency and honesty in the handling of the country’s assets or will he be sucked into the greed as well.
Dubai
This particular piece of property was/is a part of the old Safehaven development that reclaimed and re-developed that entire area.
There are others out there who can provide much more detailed information than I can but, if I’m not mistaken, the original developers/leasees were a group of wealthy and politicically powerful Jamaican entrepeneaurs, whose names would be familiar, if mentioned.
A lot of private land reverted to the Crown during the original Cadastral Survey days when its owners either did not show up to claim title or their titles could not be verified or were judged as not legal, by the courts.
It seems the more things change, the more they remain the same in Cayman’s political system and voters need to be careful of those who come bearing gifts and making promises, in 2013 and the future.
This current lot have been the worse I’ve seen so far though; they’ve taken it to another level altogether.
Most days you could set off a neutron bomb on the course and not have a single casualty. The green fee is ridicuous, this is not the Ocean Reef Club. Halving the green fee would triple the players and produce 50% more revenue. Doesn’t anyone here understand supply and demand?
Time for an experiment.
Let him produce his own water (for a set period of time); and only for the golf course.
We keep the land!
Keep track of his books (debits vs credits) and see if water is the real issue.
If it’s not, it’ll be interesting to hear what he has to say next.
The con-artist Yankee Carpet Baggers really think that our people do not think for ourselves. They can’t seem to learn.Most of all we really don’t care if they leave yesterday since they are causing so much of a rumpus in our little society with big development that this little 2×4 country can not handle.
We really won’t shed a tear if they leave that’s what they don’t understand.