Does ownership of the course include the clubhouse, restaurant, maintenance equipment, etc.? Also, as owners, will that affect our fees should we decide to golf? Will we be sharing any profits or losses from a business view? May we assume the values of our homes will be affected? Will our HOA fees change? Thank you.

The HOA already owns the Pro-Shop. The sale of the golf course will include the restaurant, maintenance yard, equipment, pro-shop inventory, cart barn, carts etc… We cannot guarantee that it will not affect your assessments, but it is the last step that we would want to take. We are using the drainage easement and monthly lease payment to pay off debt. No, there will be no profit sharing amongst homeowners as individuals. We would assume that the values stay the same or increase as we would not have to worry about development of homes on golf course.

If we get to have the golf course, can we have free memberships or discounts or free items at the golf course and the restaurant?

The members of the association already get a 25% discount on golf and a 15% discount on snacks and beverage in the pro-shop only. No, homeowners would not receive free golf. We would need to have revenue to keep up the expense on running the course. 

Underneath all what you've said about the acquisition of the golf course is a business decision, and I don't recall ever seeing any profit and loss statements or discussion about how viable (able to sustain itself) the business operation of the golf course is. In other words, does the golf course generate enough capital to make it's acquisition a good business decision? You've told us our HOA fees will not go up as a result of the association owning and operating the golf course, but if the course doesn't generate the revenue to take care of the purchase as well as upkeep, maintenence and capital improvements then where will that money come from? If there's a reasonable chance that would happen then this is a bad business decision. What safeguards will there be for us, the average homeowner in Augusta ranch, should the course prove not to be viable? Thanks.

Yes, the golf course is profitable. We did have financials on the website at one time. I will see if I can find them again. If the golf course had a bad year due to rain or other unforeseen circumstances, the board of directors started a reserve fund for the golf course a year ago. They will keep putting a monthly amount into that reserve fund that is just for the golf course. There are many other cost saving ideas that could be done if the golf course had a bad year (layoffs, cut landscaping costs, merge HOA and golf course landscaping etc..)

Is a task force being put together to help with the plans to mange the golf course? Thanks

Yes, the golf course committee is working on a contract to lease the golf course. We are using other leases for other community golf courses as a guideline. This will all be reviewed by association attorney after it is completed. 

Hi John, In discussions with Kamin, I left with an answer that I wasn't comfortable with. It sounds like we are guaranteeing the $ for the purchase of the golf course but that it will be run separately and the profits if any won't be to the benefit of the Home owners...if we are on the hook for any short comings we should also benefit from any gains, it should be "open book" did I misunderstand the answer, do the home owners understand the answer? Thanks!

We will be leasing the golf course back to a management company. They will pay us a monthly fee (that we will use to pay off debt) and they will cover the months that are in the red (summer) and collect in the months they are in the black (winter). They will also take care of all the capital improvements up to a certain amount then we will split 50/50. 

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I would recommend that every employee, from top to bottom, including new people on the open market, to have to interview for every job position. This would help in getting the best person for each job with the golf course and homeowners interest in mind.

Thank you for your suggestion and we will keep this in mind. 

The first thing we want to know  is how much will this cost us if this purchase does go through? How will this affect us all as homeowners? Will there be mandatory membership fees? Could you please forward, or direct us to information that was previously shared with the Augusta Ranch Homeowners.

We can’t guarantee it will not affect homeowners, but the last step we would want to take would be to increase assessments. No, there will not be mandatory golf membership fees. We had all the information on this site from previous questions throughout the year, but the site went down and we lost the information. If you would like to know more please let me know.

Golf Course Acquisition

Who is going to make payments on this transaction when things get bad. you will dump it on the home owners. It seems that the current owners can[t sell it to any one else. please be cautious this is out future you are messing with. I was against the purchase fro the beginning. I would rather see homes built on the property. This will maintain the value of Augusta Ranch for all.

We have put money into reserves and have thought of cost saving ideas if the golf course does have a bad year. We are also researching the possibility of  leasing the golf course where they take the hits and receive the profits. This is what many community golf course do when owned by an HOA.  Based on prior input from the residents, the majority do not want homes built on the golf course.  Keep in mind having a golf course in our community currently raises our home values as we are seen as a golf community.

What about the Green Jackets?
Is the HOA accepting the financial commitment to the "Green Jackets?

We have not finished going through all the contracts from the golf course. Once a decision has been made the “Green Jackets” will be contacted either by the HOA or the current owners. 

Has a deal already been made with the current owner that allows the current management and all of it's employees to be retained by the HOA once the sale is final? 

In the purchase agreement there is no obligation or stipulation that the current management or team members will be retained by the new ownership. However, your HOA Board is looking at options that will be the best for the community to ensure continuity in the golf course operations.

Hi, I'd like to know if the current golf course owners will be going through and repairing all the walls that are in need of texture, paint,and or structural decay repair from sprinkler damage due to golf course watering over spray? Will the the lake on number 10 be cleared up, I can only speculate that the circulation pump is sucking in silt and then spraying it back out through the fountains and water fall causing it to be cloudy or the water needs to be treated for something growing in it? It looks terrible with debris floating on top often making it look unsanitary. Why are HOA fees already being discussed being increased when the golf course in supposedly profitable, when we were told at the initial meeting that home owners would not be affected unless absolutely necessary. I play the course often and can see a lot of things that need to be addressed, and hope we as home owners are not going to be held responsible for things that be put off. 

No, the owners will not be completing the repairs to the wall before the sale. In negotiations we have settled on an undisclosed amount for repairs on the walls. The walls are party walls, which mean they are owned 50% by homeowners and 50% golf course owner. After a 3rd party company came out to inspect the golf course it was determined that the deterioration of the walls has been caused by both parties throughout the community. We are looking into the fountain. If you are speaking about the community email that went out a couple weeks ago. That was misunderstood. He was saying that we were able to negotiate the price so that we did not have to raise them 20%. The 3rd party that inspected the course is creating standards for the course and will do the field assessment for one year.