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Palo Alto officials report Baylands Golf Links is operating in the black despite billing and mitigation work
Summary
City staff and contractor OB Sports told the Parks & Recreation Commission the Baylands Golf Links has returned positive annual contributions to the general fund since reopening, while staff described wetland mitigation work, youth programming with First Tee Silicon Valley and a study on a double‑deck driving range.
The Parks and Recreation Commission heard a detailed update Tuesday on Baylands Golf Links, where city staff and the course operator reported positive operating contributions to the city’s general fund in recent years and described ongoing environmental and youth‑program efforts.
The presentation, led by Lam Do of Open Space, Parks & Golf and Matt Malloy, senior vice president of OB Sports (the course operator), noted that the course reopened as Baylands Golf Links in February 2018 after a two‑year redesign. Since then, staff said the course has produced an annual contribution of “over a million” to the city’s general fund in most years, but that fiscal 2024 showed a smaller contribution (about $500,000) tied to a potable‑water billing error that staff and utility personnel are working to correct.
The commission was given financial context, operations data and ongoing initiatives. Staff described the course’s design as a links‑style layout built with Paspalum (a salt‑tolerant turf) to accommodate irrigation with recycled/reclaimed water; the greens use a separate grass requiring potable water but account for only about two acres versus roughly 87 acres of other turf. OB Sports described dynamic pricing, a local loyalty “Links Card” with about 1,400 participants that accounts for roughly 40% of rounds, and a steady recovery in dollars per paid round following pandemic years.
On environmental compliance, staff described coordination with the State Water Board on wetland mitigation. The city submitted a current‑conditions report in August 2024 and notified the State Water Board in December 2024 of its intent to carry out a jurisdictional wetland delineation; staff said that delineation began in February and is scheduled to finish in July 2025 and will inform whether hydrological changes are needed. Staff also said the city and operator have added split‑rail fencing, improved signage and educational materials and adopted a local rule allowing stroke relief when a ball lands in sensitive wetland habitat to discourage entry.
Staff and the operator described partnerships and programs the commission flagged as priorities. The city has a short‑term agreement with First Tee Silicon Valley that provides seasonal access to practice and teaching areas; staff and First Tee representatives said they are negotiating a term sheet to develop a long‑term partnership and a youth area between Embarcadero Road and the driving range that could expand Saturday programming. First Tee and city staff said demand currently outstrips capacity in some classes and that Saturday programming would increase capacity significantly.
OB Sports also described operations and marketing: maintenance investments, a secret‑shopper program, online reputation monitoring, junior programming (OB Sports reported roughly 4,000 junior rounds in 2024), youth‑on‑course participation (about 1,800 rounds) and relationships with high‑school teams. The operator said the course is pursuing Audubon certification (environmental planning stage completed) and is conducting a National Golf Foundation study on the feasibility of a two‑deck driving range.
Public commenters pressed staff on two topics during the Baylands item. Lynn Chiappila asked about the course’s net revenue (how revenue and all expenses balance, and who pays consultant fees); staff replied that the golf course’s operating budget and capital improvement program are funded through the city’s general fund (golf revenues return to that fund) and that mitigation‑related capital expenses are tracked through the CIP. Karen Porter, a resident, called attention to lead emissions from piston‑engine aircraft operating at Palo Alto Airport and urged the city to post warnings and distribute the California Department of Public Health guidance to users of the course; staff acknowledged the comment and said they would follow up.
Commission discussion focused on the First Tee long‑term agreement (staff and First Tee said a draft term sheet is under review and the short‑term agreement runs through February 2026), clarification of the fiscal 2024 water billing issue (staff said a correction and refund are expected, which will improve the reported bottom line), continued wetland monitoring and mitigation, and opportunities to expand youth programming. Commissioners asked staff to provide a clearer consolidated view showing operating results alongside capital expenditures for the course so the commission can see net fiscal impacts across operating and capital lines.
Staff said the operator leases and runs food‑and‑beverage under a license agreement and pays rent and utilities; the city does not operate the restaurant as a city enterprise. Coverly Field restrooms and related projects were noted elsewhere in the meeting; staff reiterated that several park restroom and facility projects remain in the city’s CIP and that project timing depends on FY26 budget adoption and subsequent community outreach.
