Palm Coast reviews Palm Harbor Golf Course options; council orders cashless purchases and directs financial analysis

Palm Coast City Council heard a detailed presentation on Palm Harbor Golf Course operations, history and finances and directed staff to pursue several analyses, including a cost-recovery and rate study. The council also reached consensus to eliminate cash purchases at the course as an internal control measure.

James Hurst, Director of Parks and Recreation, described the courseoperations and community uses. He said the course was designed by Arnold Palmer; that Nancy Lopez served as the touring pro in 1978; and that the property was donated to the city and the city took management control in 2017. Hurst said youth programs, Special Olympics practice, high-school teams, the Florida State Golf Association juniors and a long-standing free youth clinic run in partnership with the NCCAA use the facility.

Hurst gave usage and budget data: about 88% of rounds in 2023 and 91% in 2024 were by residents; the facility hosted 26 tournaments in 2024 (60to about 100 players each) and had 10 tournaments scheduled through mid-year in 2025. He summarized a five-year cost-recovery history: fiscal year 201979% (COVID closures), FY2020FY2021 99%, FY2021FY2022 101%, FY2022FY2023 78% (fleet allocation catch-up), and FY2023FY2024 91% after fee increases. Hurst noted priority maintenance needs, including an irrigation pump-station repair estimated at about $150,000 and green renovations, and identified a roughly $491,000 contractual-services line in the golf budget that pays for outsourced maintenance.

Legal and policy constraints: City legal counsel told council there is a planned unit development (PUD) and a deed covenant tied to the property requiring that if the city or a subsequent owner seeks an "active recreational use other than a golf course," the developer Centex must approve that change; the covenant does not make sale impossible but constrains non-golf uses without developer approval.

Public comments were lengthy and mostly opposed to selling the course. Residents stressed the course is an amenity that supports property values, senior activity and youth programs. A number of longtime golfers and nearby homeowners recommended an oversight or advisory committee, operational fixes, pricing adjustments, improved inventory controls and promotion to attract out-of-area players. Golf course operators and nearby private-course owners offered to share profit-and-loss data and operational suggestions.

Council direction and next steps: Council members asked staff to bring a follow-up presentation in spring (Q2/April) with more detailed financial analysis and specific proposals. Staff listed explicit next steps to include: a rate analysis using the recent fee changes to project revenue (staff projected roughly $1.9 million in revenue for the current year if assumptions hold), a staffing and procurement/controls review, an evaluation of bringing maintenance in-house versus continuing outsourced maintenance, consideration of a management RFP for front-of-house operations, and targeted marketing and tournament solicitation strategies (including engagement with the TDC). Council also gave staff consensus direction to (1) stop accepting cash at the facility for purchases so sales are traceable; and (2) form a less-formal focus group or advisory engagement of frequent golfers and stakeholders while management completes the analysis.

Several council members said they oppose sale of the course; others noted the city has lost money since acquisition and asked staff to put all departmental P&Ls on the public dashboard so council and the public can see comparative losses and guide budget choices. Staff agreed to post P&L data, perform the requested analyses and return with a report in April. No formal ordinance or sale decision was made; the council debated options including continued city operation, sale, lease, or returning to a management company.