BRIEFS Brassie and COPM management firms join forces New company will be second- E ~ - ^ largest publicly held manager

By PETER B LAI S ST. LOUIS — The merger of Brassie Golf Corp. with Club Operations and Property Management/Resort Golf Clubs International has created the third-largest management company in the U.S. golf industry and second- largest among publicly held firms. Operating under the Brassie name, the new firm's portfolio includes 50 GOLF ENTERPRISES IMPROVED owned and managed golf courses in 15 DALLAS — Golf Enterprises re- states and five courses in Mexico. The ported an operating revenue increase company's newest 18-hole course of 43.2 percent during the first quarter opened April 15 in Stafford County, Va. of 1995 from the same quarter a year Plans are to add six to eight new earlier. Operating revnue jumped from properties every year. "It's a pretty exciting time," under- $11.4 million during the first three Brassie Golf-managed The Gauntlet at Curtis Park opened recently in Fredericksburg, Virginia. months of 1994 to $16.3 million for the stated Pat Fister, Brassie's vice presi- same period this year. Operating rev- dent of business development. nated redeemable preferred stock, portfolio of 41 facilities, which includes enue attributable to existing courses Under the terms of the recently 500,000 five-year warrants exercisable at 32 golf courses and nine city/yacht clubs. increased approximately 4.3 percent, revised agreement, Brassie will acquire $2.50 per share for the first three years William Home founded Tallahassee, or $511,000. The remaining increase all of the outstanding shares of COPM in and $3.25 for the next two years, and Fla.-based COPM in 1982. COPM was contributed by the nine courses exchange for 1.075 million shares of $500,000 in cash. subsidiary Resort Golf Clubs Interna- purchased in 1994 and the three ac- newly issued Brassie common stock, In exchange, Brassie will assume tional is involved in golf course design, quired so far in 1995. 375,000 shares of newly issued subordi- control COPM's management-only Continued on page 38

NGP FINANCIALS UP MARKETING IDEA OF THE MONTH SANTA MONICA, Calif. — National New foundation Golf Properties Inc. reported funds from operations of $9 million or 47 Vermont resorts helps communities cents per share for the quarter ended March 31, a 10-percent increase from obtain financing the $8.2 million or 43 cents per share cooperate in rare for the same quarter last year. The CHICAGO — Local governments board declared a cash dividend of display of Green looking to develop, acquire or improve $0.39375 per share for the first quar- community golf courses have a new ter. Not reflected in those figures is resource for financing and managing the $2 million gain NGP realized from Mountain unity projects. its first-quarter sale of Hidden Hills The Public Golf Foundation of By PETER B LAI S Country Club in Stone Mountain, Ga. America (PGFA) — recently estab- NGP acquired four golf courses in the MANCHESTER, Vt. — The Equinox lished as a tax-exempt, non-profit cor- initial financial quarter giving the real resort has a golf course. So does the poration — can provide complete estate investment trust a total of 74 Woodstock Resort & Inn. financing, development and man- worldwide. New England and New York provide agement assistance for new or exist- the bulk of Equinox golfers. Same with ing golf projects, according to PGFA Woodstock. Executive Director William Hardy. COBBLESTONE PROMOTES BERTHOLD The Equinox would like to push Hardy also heads North American Golf MESA, Ariz. — Bill Berthold has through 5,000 rounds more a year than Inc. (NAG), a Chicago-based manage- been named general manager of Red the roughly 19,000 it currently attracts. ment company. Mountain Ranch Country Club (CC), Ditto at Woodstock. a Cobblestone Golf Group property Internal Revenue Service designation Do the two historic resorts compete located on the edge of the Tonto Na- as a tax-exempt organization means the or do they cooperate? tional Forest. The 750-member club Foundation can be a vehicle for tax- "We thought it was more important to includes a 18-hole Pete Dye-designed exempt bond financing, Hardy said. get the golfers here and then worry course and 25,000-square-foot club- "As long as a qualified municipal about dividing them up," said Lee agency acts as a conduit for the issu- house. Berthold was previously gen- Vermont's Woodstock Country Club Bowden, general manager of the Equi- eral manager of El Camino CC in ance of the bonds, the Foundation can nox. "That's how we came up with this Oceanside, Calif., which is also a Bowden said. secure financing for sound projects," joint marketing program." Cobblestone property. Such cooperation among competing Hardy said. This approach eliminates The "Best of the Joneses" offers golf- golf resorts is rare in Vermont, a state the need for a municipal body to pledge ers a stay-and-play package with the boasting just 47 golf courses, according its credit or tax revenues toward the GOLDEN BEAR ADDS WALSER opportunity to play the Rees Jones-rede- to the most recent National Golf Foun- bonds, he added. Steve Walser will oversee Golden Bear signed Gleneagles Golf Course at The dation figures. Expertise in golf development and Club Services (GCBS) division in his Equinox and the Robert Trent Jones Sr.- "I haven't seen anything like this be- operations management will come new role as vice president of Executive redesigned Woodstock Country Club fore," said Woodstock General Manager from industry sources, Hardy said. Sports Inc. Walser, 90 minutes up the road. Chet Williamson, a 23-year Vermont NAG helped develop PGFA and will 40, is former direc- Available midweek April 30 through resort industry veteran. "If you're going provide professional and technical tor of construction June 30 and August 20 through Sept. 22, to do something like this, you have to support for projects sponsored by the and development the package offers unlimited golf, com- know and trust the person on the other Foundation. However, Hardy said, the at PGA West and plimentary golf cart, gifts from both pro end." Foundation is available to work with LaQuinta Resort in shops and two nights stay at each re- That is the case with Bowden and any qualified golf company that is in- Palm Springs, Ca- sort. The entire package costs roughly Williamson. Bowden worked for volved in community golf. lif. Initially, his di- 20 percent less than guests would pay Williamson for several years before tak- Hardy said PGFA expects to be in- vision will guide during peak season. If visitors want to Steve Walser ing over The Equinox. The two ski to- volved in several types of projects: operations at stay an extra evening at either resort, gether and talk often. • Construction of new community Muirfield Village Golf Club and the the revenue is split accordingly between "We deliver our sales pitches to the golf courses where the land is owned Country Club at Muirfield in Dublin, the two facilities. same people," Williamson said. "We're by municipalities, counties, airport Ohio; the Golden Bear Golf Club at Ham- "This seemed like a good way to try to both marketing to people motoring authorities or similar agencies. mock Creek in Palm City, Fla.; Laurel fill some of the down time we typically around Vermont, Maine, Cape Cod, and • Courses developed as part of new Springs golf community in Atlanta; and have in late spring and late summer," Continued on page 36 residential communities, where the pri- Old Works in Anaconda, Mont. Continued on page 36 June 1995 33 from the start because of the vested in- YOUR "ONE-STOP" SOURCE HIGHLIGHT GOLF HOLES> Ocean Course FOR AMERICA'S LEADING IMPROVE VISIBILITY, terest they have in the future of Kiawah." GOLF SURFACES & SUPPLIES! & MAINTAIN CONSISTENCY Continued from page 3 Some questioned why VIT would be SOIL CONDITIONER U.S. GOLF HOLE Ocean Course back on the auction block. interested in the Ocean Course since ttfN PARTAC® Htty Harris said there was tremendous do- previous agreements reserved 60 per- PARTAGOLF COURSEC GREEN SAND mestic and international interest in the cent of the tee times for resort guests. In TOP-DRESSING TARGETS Ocean Course in the days leading up to the essence, they contended, all VIT was DIVOT REPAIR MIX May 19 auction. Among the suitors were getting for its $27 million was access to A UNIQUE SOLUTION TO UNSIGHTLY DIVOTS! PARTAC® GREEN SAND BLENDED owners of pro sports teams and some the other 40 percent of the rounds and WITH PARTAC® PREMIUM wealthy individuals who saw this as a way the deed. TOP-DRESSING FOR EXCELLENT to enter the golf business for the first time. GERMINATION AND "Now VIT controls the actual mainte- DEEP GREEN COLOR! But those potential buyers chose not to bid nance and operation of the course, too, THE BEST DIVOT REPAIR MIX AVAILABLE! HEAT TREATED when they learned of VIT's and Way's con- which it wouldn't have done if someone AVAILABLE NATIONWIDE PLUS CONSTRUCTION, Drainage Systems tinued interest. else had bought it," Harris said. "Con- CART PATH, SAND TRAP, FLEXIBLE GOLF COURSE MARKERS "It was simply worth more to VIT than trolling the quality of the course is im- AND DIVOT REPAIR MIXES 800-247-2326 SAND TRAP PUMPS IN N.J. 908-637-4191 RAKES, PLUG PUSHERS, SQUEEGEES anyone else since it controls the other portant." TYPAR PARTAC PEAT CORPORATION AND MANY MORE public courses and the hotel," Harris said. Harris said VIT should close on the CEOTEXTILES & TURF BLANKETS KELSEY PARK, GREAT MEADOWS, N.J. 07838 GOLF SPECIALTY PRODUCTS ORLANDO (FL) MEMPHIS (TN) RENO (NV) "VIT and Way were the primary bidders property by mid-July. CIRCLE #137 Brassie Golf Continued from page 33 development, construction and membership marketing. Home will serve as president of Brassie and Brassie Interim President Gary Nacht as execu- tive vice president/chief financial officer. Golfer Hale Irwin will con- tinue as president of Brassie Hale Irwin Golf Design division and a director of Brassie. Gordon Ewart and Robert Atkinson, COPM's Why would one of the world's top rated goals with this smart new technology and for chairman and vice chairman, re- golf courses switch to ESN precision controlled raising the standards for fertilizer performance spectively, will retain their board nitrogen just months prior to hosting the U.S. and environmental stewardship." seats and positions. Open, one of the USGA's biggest events? As superintendent, Smith knows well the 'The combined management talent created by this merger of- "Because ESN is hands down the most tradition of excellence that surrounds the fers our shareholders a dramatic impressive high performance fertilizer on the course. It's a distinction learned from his father growth opportunity," Ewart said. market" according to Peter Smith, Super- and grandfather, "COPM will bring a wealth of proven management experience intendent at Shinnecock Hills Golf Club. superintendents of to complement Brassie's growing "ESN has it all... easy dust-free application, Shinnecock before portfolio of owned, leased and very precise release of nitrogen and the most him, who together managed facilities, and will pro- consistent longest lasting performance I've with Peter have vide greater access to acquisition and design opportunities. This seen from a fertilizer dedicated more than merger is also expected to signifi- "Here at Shinnecock both the club 90 years toward the cantly enhance Brassie's ability to management and grounds crew take great development and raise additional capital. pride in being on the leading edge of course success of Shinnecock Precision Controlled Added Fister, "Service, service, Nitrogen service is what we'll provide. The management We also share a genuine Hills Golf Club. depth of our management team concern for the environment I applaud United For more information on ESN precision will make us a better company. Horticultural Supply for helping us meet our controlled nitrogen, call (800) 847-6417. Plus we'll have the capital avail- able to aggressively pursue new properties. We have eight to 12 we're considering now. Knowing that we're willing to invest our own money should make our man- agement services easier to sell to owners looking for a management- only arrangement, too." Fister said a corporate meet- ings to discuss acquisition strate- gies were held in May. Daily-fee and semiprivate courses with po- tentially strong cash flows are ex- pected to be the primary targets. Initially the firm will seek new courses in markets it already serves, Fister said. Acquisitions are preferred, although Brassie will continue to sign management- only and consulting agreements. Corporate agronomist Bobby Ellis, a 14-year COPM veteran, is expected to continue in that role with Brassie, Fister said. The proposed merger is sub- ject to regulatory approval and was scheduled to close in May. Consideration for the purchase of Resort Golf Clubs Interna- tional was included in the issu- ance of shares for COPM.