From Deseret News archives:
Green space, black holes: Subsidized golf courses costing cities, taxpayers
Never mind that the number of golfers in the United States was about to level off and then drop. Or that because of construction debt it can take 20 years for a course to make money. The state's Wasatch course, built in the late 1960s, didn't turn a profit until 1992.
Despite these facts, readily available to any politician looking for them, local governments continued to see golf as a source of revenue throughout the 1990s. Some even bailed out private developers losing their shirts on multimillion-dollar courses, confident they could do it better.
Today, there are 60 publicly funded golf courses in Utah, which accounts for more than half of the courses in the state. While some are making money, others are losing cash by the fistful.
Some privately owned courses are also barely scraping by.
"They've built so many courses it's tough," says Ernie Schnieter, the owner of two Ogden-area courses. "They don't have to pay taxes, like we do, so they can offer green fees at a discount. We have to match that. Then they offer two-for-ones, and we can't compete with that."
Once viewed as a moneymaker, golf in Utah, in some cases, has become a black hole.
Some blame the economy. Others say the number of golfers nationally is on the decline. But most agree the the supply now outweighs the demand and that local governments are to blame.
Salt Lake County lost $1.8 million on golf last year. Provo's Reserve at East Bay lost $736,000. The state-run Soldier Hollow course lost some $800,000. The numbers are similar across the Wasatch Front.
When a private course loses money, that's bad news for its owners. But when a municipal course loses money, that's bad news for everyone who pays taxes.
Consider ways in which local governments subsidize golf in Utah:
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