Vernon Hills golf course looks to improve in 2012

A cold, wet spring and a sluggish economy put total revenues for Vernon Hills’ 9-hole golf course in the rough, but operators hope for a slight rebound in 2012.

At $211,649, projected greens fees for the municipal course on Evergreen Drive near Route 45 were down about 7 percent from what had been budgeted, and slightly below what was received in 2010.

And at about $449,000, projected overall revenue for 2011, which includes food and drinks, cart fees and merchandise, was about 10 percent below what had been budgeted. That gap is expected to narrow with year-end events, officials said.

Bad weather in spring and late summer was an aggravating factor as interest in golf continued to flag throughout the Midwest and the country, according to a report from KemperSports, which manages the course for the village.

The company expects 2012 to be challenging but is calling for a 3 percent increase in total revenue based, in part, on anticipation of better weather, a customer-focused marketing initiative and partnerships with local entities.

“It seems to be realistic,” said Larry Nakrin, the village’s finance director. “It isn’t based on the assumption that the demand for golf will turn around anytime soon.”

However, wary consumers who continue to spend any extra dollars cautiously, and a possible continued decline in the amount core golfers play due to time constraints and other responsibilities, are potential threats, according to the report.

Kemper has budgeted 18,440 rounds for 2012, compared to the 17,856 forecast for this year and 19,213 recorded in 2010.

“That’s a substantial drop compared to how they were doing historically,” Nakrin said.

The course came under village control in 1978. It had been part of the private 18-hole Tally Ho golf course but the western nine holes were bulldozed for a subdivision.

Course operators hope to build on what they perceive as their strong position in terms of facilities and playing conditions compared to five competing local 9-hole courses.

Drastically reduced prices at 18-hole courses in the market is another competitive factor, according to KemperSports, and prices at Vernon Hills won’t increase in 2012. The company estimates there are more than 138,000 golfers within a 30-minute drive of the Vernon Hills course.

No major improvements for the course are planned, although new patio furniture, a hitting cage and minor clubhouse upgrades are envisioned for 2012.

“There are, I would say, realistic expectations of what can be done — modest enhancements and improvements,” Village Manager Mike Allison said.

Net operating income of about $40,000 is expected for 2011 but does not include depreciation of equipment or capital expenses.

According to the report, the course is expected to remain self-sufficient for the next three years. Nakrin said the course has been a break-even venture over the long run.