The 9-hole and 18-hole golf courses are the anchor that has attracted many people to purchase homes at Holiday Island. Even many who are not golfers appreciate the green space and the mountain views from homes near the golf course. “For the 70 to 90 percent of residents, developers are not selling a golf course, rather they are selling a view and ambience,” states an article on the website for the National Recreation and Park Association (NRPA).
Property owners in the Holiday Island Suburban Improvement District (HISID) pay an annual “assessment of benefits” (AOB) for infrastructure and maintenance, including for the golf courses. Some residents who don’t play golf are not happy that the golf courses have to be subsidized heavily each year.
In 2021, the two golf courses had expenses of $798,249 and golf course revenue was $342,230, representing a loss of $447,019. The total projected expenditures for golf in 2022 are $782,212, and total projected revenue is expected to be $351,928, which would result in a loss of $430,284 in 2022, according to HISID budget estimates.
HISID District Manager Danny Presley said stating that this is a “loss” is not an accurate representation of the facts. “This amount is budgeted each year to provide this wonderful amenity to the residents and property owners of Holiday Island,” Presley said. “HISID invests in these golf courses and many other amenities and services including roads, water, wastewater, marina, swimming pools, and the recreation center. We have no expectation that the golf courses will generate a profit.”
The restaurant at the golf course had expenditures of $140,678 and revenue was $106,327, resulting in a deficit of $34,351. Presley said they believe the restaurant is an important and desirable amenity for Holiday Island.
“No golf course is going to make money,” Presley said. “It is not practical to think the golf courses will make a profit. It is not a matter that we lost money, but that we provide a very beautiful amenity in these golf courses that add tremendous value to people’s property in Holiday Island. Operating that amenity costs money. We invested as we do every year into the golf courses to maintain and have some of the most beautiful golf courses in this region. We believe it is a worthwhile investment.”
Mavis Stevens-Wilks said she is one of a group of about 50 people opposed to the big subsidies the golf courses receive out of HISID assessment fees.
“A group of us have suggested over and over again to lease the golf course out, which would be more sustainable for Holiday Island,” Wilks said. “They are using money that we could use for roads and other improvements to put into the golf course. That’s really kind of a sore spot with a lot of us. I don’t play golf, and don’t mind others who do. What I do mind is paying more assessments to keep the golf course going when there is not enough income coming in. It is just losing so much money and we are not all rich. A lot of us live on Social Security. The money would be better spent repairing our roads, some of which are in terrible condition.”
There is concern about what the future holds because golf is a sport on decline. NRPA reports there were 6.8 million fewer golfers in the U.S. in 2018 compared to 2003 — a loss of 22 percent leading to a closure of 1,243 18-hole courses between 2005 and 2018. “The decline is a function of the high cost of playing, difficulty of courses, and the game’s incompatibility with contemporary lifestyles,” he NRPA article by Texas A&M professor John L. Crompton, said.
The HISID AOB went up for 2022. Presley said when Holiday Island became a city in December 2020, the city and board of commissioners believed there was a possibility that city revenues could offset some of the AOB costs for residents.
“As a result of that, they lowered the AOB in 2021,” Presley said. “When the city taxes didn’t materialize, they had to increase the AOB for 2022. You could see that as an increase and, in a sense, it is. But we really just went back to close to what it was prior to the decrease in 2021.
“I think it’s important to note that over the past five years, the AOB on an improved property increased $18 from $762 to $780. That is a 2.4 percent increase in five years. The Consumer Price Index has increased 17 percent. HISID’s AOB revenue is not even close to keeping pace with the costs of providing services. I believe Holiday Island is the best value anywhere. I am very proud of our employees who provide excellent service while being careful stewards of the budget.”
Some people who have purchased property in Holiday Island have said they didn’t understand they would essentially have double taxation, property tax plus HISID fees. HISID Commissioner Ken Brown said that the assessments are difficult to explain to folks who have never lived in a SID and have only dealt with property taxes and other fees. He argues that Holiday Island is still one of the more affordable areas to live in the country.
“In the sixteen years I have lived here, moving from the Tucson, Arizona, area, I have asked many people if this was the least they have paid for taxes and fees for their home,” Brown said. “One hundred percent said ‘Yes, and by a large amount.’ After serving nearly six years on the Board of Commissioners, I am proud that we keep this beautiful area affordable for all.”
Generally golf courses that aren’t profitable are held up by other entities bring in money. The difference here is that its the residents footing the bill without any real source of income coming into the island. Holiday Island has become such a cut off place due to its bad business practices, poor management and over expenditure on areas that do not bring in more resources. If Holiday Island were to become more business friendly, less exclusive and more inviting the area would boom, property values would skyrocket and we would see an influx of new resources and capable business leaders. Instead we continue to vote the same crowd into office because “they seem nice” while those same folks sit on their hands and hope the state comes in to rescue them from their own incompetence. That is not how any of this works. It is up to us business owners and the residents of Holiday Island to bring this place into this century and build our economy ourselves. There is no golden goose coming… The time to act is now!
I agree, Mr, Evans.. Holiday Island had become a.business of sorts which isn’t a profilet making business.
Anyone owning a business which consistently looses money either changes the way they do business or closes.
With Real Estate there are mo doors to close.. However; changes can and should be made before a place of it becomes a “SINKHOLE” or a MONEYPIT!. Its like throwing good money into a fire pit to be consumed without a reusable profit. Its time for a change. The fate of Holiday Island depends on the decisions the Residents make!