All golf course projects begin with a vision. However, the important first step in building a golf course is determining whether this vision is financially sound. The lingering question of "Should we do this?" is best be answered by bringing together a team of experts to analyze the facts.

Where To Begin?
Development considerations vary greatly depending on whether the proposed golf course is to be a public/municipal course or private course. But there are key elements common to both types of developments that need to be considered. For example, population and economic conditions in a given area must be studied to determine the suitability of such a project.

Development considerations vary greatly depending on whether the proposed golf course is to be a public/municipal course or private course. But there are key elements common to both types of developments that need to be considered. For example, population and economic conditions in a given area must be studied to determine the suitability of such a project.

Some questions which must be addressed are:

• What is the population within a 20-mile radius of the proposed site?
  
• How many other public and private courses are in the area?
  
• What is the projected volume of play and fees?
  
• What are the projected operating expenses?
  
• Have any courses in the area failed? Why?
  
• Are employment levels and per capita income at suitable levels?

Making an Informed Decision
Information from market analysis, feasibility studies and the economic impact analysis is critical to decision making on a potential project. Once this preliminary information has been gathered and the data seems favorable, it is wise to seek professional golf course architectural help in preparing a master plan.

Market Analysis

1. Identify target markets
   
2. Research the history of competing facilities

Feasibility Studies

1. Understanding of financial viability
   
2. Recommendations of fees
   
3. Estimate of costs to construct and operate
   
4. Identify capital to support
   
5. Determine facility type

Economic Impact

1. By area
   
2. Taxes or revenue
   
3. Employment opportunity
   
4. Recreational/living opportunity

What is the Cost of a Golf Course?

Golf course construction costs vary greatly throughout the world.Generally speaking, most developers or communities that develop a golf course in the United States can expect to spend at least two million U.S. dollars for a modern regulation-length golf course, not including the cost of the land and many other factors, but that number can vary greatly due to location, land condition and more. Those building golf courses outside the United States can experience conditions that bring down the cost of construction somewhat or increase it, sometimes dramatically.

Those considering the development of a golf course construction budget are encouraged to speak with an experienced golf course architect. ASGCA members understand the factors that affect construction cost and can help prospective clients build a realistic budget that includes clearing, grading, drainage, construction of tees, fairway and fairway features, greens, sand bunkers, irrigation system, seeding and grassing, shelter, bridges, cart paths, and more. 

It must be emphasized that the cost of developing a golf course is separate from other factors such as the cost of the land, clubhouse, entry road and parking lots, other support facilities, the golf course architect and other necessary professional fees. In addition, maintenance costs usually run between $250,000 and $650,000 annually, plus club operations and golf cart fleets. Costs will vary depending upon the type of facility constructed, terrain and soil conditions, climate and development goals of the project.

Suggested Reference
The Economic Impact and Benefits of Golf Course Development

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