Should Ocean Pines continue to be in the golfing business?

For decades, Ocean Pines property owners have subsidized operating losses at Ocean Pines Golf and Country Club and spent millions of dollars on golf-related capital projects. This includes rebuilding nine of the 18 holes with drainage improvements and all 18 greens. In the coming years, millions more will be spent on rebuilding the remaining nine holes to improve drainage and to either rebuild or renovate the Country Club and cart barn. Ocean Pines property owners never approved the multi-year, multi-million dollar golf course drainage project in referendum as required by OPA bylaws; this requirement has been circumvented on a clever legal technicality.

All of these expenditures primarily benefit a tiny percentage of properties in Ocean Pines -- less than 200 out of 8,470 properties -- those households whose owners purchase annual golf memberships. OPA officials sometimes report that these memberships represent 250 or so individuals, but that’s even a smaller percentage of the 12,000 year-round residents or the 20,000 who live in Ocean Pines during the summer months.

While there presumably are benefits to all property owners by the presence of a golf course in Ocean Pines, their impact on property values are impossible to quantify. Value and benefit to all property owners would remain if the golf course were converted to open space/parkland, with the paved golf cart path made into a bike, walking or jogging trail open to all.

Recently, former Ocean Pines Association Director Dan Stachurski called on the OPA Board of Directors to franchise the operation of the Golf and Country Club. He was encouraging the directors to relieve all Ocean Pines property owners of the financial need to subsidize persistent operational losses and future planned capital expenditures related to golf.

COPE, the Coalition for Ocean Pines Equity, agrees that the franchise/lease option should be considered. We believe the Board of Directors and General Manager should immediately begin to explore it. Perhaps an equitable arrangement with Billy Casper Golf could be negotiated before the current contract is simply extended for another year.

Perhaps a committed group of Ocean Pines golfers would be willing to band together to “save” this amenity for their use and enjoyment by leasing the golf course and Country Club from the OPA. Of course, this core group must be willing to assume the costs of operating and maintaining the golf course, during the term of the lease or franchise. With skin in the game, a franchisee would carefully consider what future golf course or clubhouse improvements are needed to operate the golf course effectively.

If a committed core of golfers or private management company does not step forward to assume responsibility for the course after a good faith effort by the Board of Directors to pursue this option, then it is the considered view of COPE that only two choices remain. One is that the golf course continues to be operated as it has for years, requiring annual subsidies from property owners to offset operating losses and significant capital expenditures.

COPE does not regard this is as a desirable option. We believe it is unfair and unequitable to expect the entire OPA membership base to continue to subsidize golf operating losses or to finance expensive golf capital expenditures in the future.

Our preferred alternative would be to convert the golf course into open space/parkland, for the benefit and enjoyment of all property owners. The paved cart path would become an amenity for joggers, walkers and bikers. The golf driving range could continue as an amenity paid for by bucket fees. The Country Club could be converted into meeting spaces, a police station, a fitness center, or game and card center. The OPA would be responsible for mowing the former fairways and rough of the golf course, so it remains an asset that can be enjoyed by OPA members whose homes adjoin the newly established open space/parkland, and other property owners and residents.

COPE is committed to the idea that property owners, voting in referendum, should have the opportunity to decide the future of the Ocean Pines golf course if the franchise/lease option fails to materialize, either because of disinterest or inaction by the Board of Directors, or failure to locate a core group of golfers or management company willing to lease or franchise the golf course.

The referendum question would need to be simple and narrowly tailored, and written in such a way that there is no ambiguity that the referendum results are binding on the OPA. Here’s one possible formulation:

Should the Ocean Pines Association permanently close the Ocean Pines golf course effective Jan. 1, 2015, converting it into open space/parkland with biking/walking/jogging trails?

Yes ___ No ____

COPE would like to work cooperatively with the OPA Board of Directors to devise a referendum question that gives all Ocean Pines property owners a say in determining the future of the Ocean Pines golf course property. We have retained a lawyer who will be available to work with OPA board and/or counsel in drafting a binding referendum question.

Should the Board decide not to work with us in this endeavor, we will feel compelled to petition the matter to referendum in accordance with the OPA bylaws. In the end, we believe this is a decision for the entire community to make. Don’t you?

COPE (Coalition for Ocean Pines Equity)

Marvin Steen, 627B Ocean Parkway, 410-641-7050

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