One Way of Looking at the Purchase of the Golf Course Property
(Paraphrased with permission from the author, Peter Silberman)
Something to consider about the purchase of the golf course is this is all about risk management. Companies do it all the time. They overpay for patents, for start-up companies, to recruit key staff, to settle lawsuits, etc. Risk always has a price tag.
On the one hand, if we want to have a positive amenity within our village (golf course, park, open space, nice view for CVE abutters, etc.) then we must control the property. Otherwise, none of us know for certain what will become of the golf course land. Some of the options are attractive: 1) purchased by a golf course entrepreneur and remain as a viable golf course; 2) closed down but maintained as a manicured and attractive open space; 3) goes into mortgage default or bankruptcy and is acquired by CVE at a fraction of the current asking price; etc. If we were certain one of these options would occur, we might oppose any move to buy the property quickly and pay a premium for it.
However, on the other hand, there are other options that may not be attractive:
1) the golf course closes, is no longer maintained, and falls into disrepair; 2) the property is purchased by a developer and a commercial and/or residential development is built; 3) the property is foreclosed or goes into bankruptcy and CVE is outbid by a developer; etc.
The only way we can control the risk of what happens to the property is for the Village to acquire it now, probably at a premium. Controlling this risk comes at a price, so let’s look at the cost to determine if it is worth it.
Based on Master Management’s latest communication, the cost to each unit would be a maximum of $10 per month (less than one ice cream cone per week) for a maximum of 10 years (not forever as some people are claiming), or a total of $1,200, at the most. The monthly cost and payment period may be less, but let’s go with those numbers for the sake of discussion. This seems to be a price worth paying to control the risk.