It is one thing for private golf communities to tout their family orientation, but it is quite another for them to put their membership plans where their marketing is.  With a unique, recently announced expansion of its golf plan, The Reserve at Lake Keowee in South Carolina has done just that.

        In a trailblazing move, The Reserve has expanded its golf membership

Everyone in the member's "vertical" family line -- from grandparents to grandchildren -- now have full member privileges at The Reserve.

plan to include the grandparents, parents, children and grandchildren of members -– even adult children –- on a member couple’s plan.  These family members enjoy all the privileges of membership without any additional fees or dues.  The refundable deposit for full-family membership at The Reserve is $60,000 with dues of $455 per month, which includes all golf, access to the lakeside marinas (docking of boats and the use of canoes and kayaks), pools, tennis, fitness center and croquet.

        “This plan was an extension of our philosophy of families gathering at the lake to create memories and legacies that go beyond one's own lifetime,” founding member Buddy Thompson told me.  “And it was an attempt to provide even more value to our Non-Resident members in advance of their building a home here as we build-out our community.”

        As the golf industry bemoans the falloff in interest by the younger generations, The Reserve has developed a plan that is likely to be copied by others.  It seems shortsighted that private golf clubs begin charging fees and dues to a member’s child when he/she reaches age 23.  Few are the 20-somethings who start their post-graduate careers with a stream of income that makes private club fees affordable.  Why not let them remain on their parents plan at least until age 30 -– a program that The Reserve itself initiated a few years ago -- and reap the benefits of the money they will spend on golf carts, food in the clubhouse and guest fees on the golf course?

        The 3,900-acre Reserve at Lake Keowee, which celebrated its 10th anniversary last year, features a well-reviewed Jack Nicklaus Signature golf course, a marina and Village Center by the lake’s shore, a large pool complex, a guesthouse and miles of nature trails.  It is located in Sunset, SC, in the foothills of the Blue Ridge Mountains, about an hour from Greenville/Spartanburg International Airport and a half hour from Clemson University.

        If you would like more information about The Reserve at Lake Keowee or to arrange an exploratory visit, please contact me.

     The members of the Dominion Club outside Richmond are feeling betrayed and abused this week, and what has happened to them is a clear signal to all of us that equity “deposits” for golf club initiation fees are, at best, a risky investment.

        During a tough few years for most clubs, Dominion owners HHHunt

If Hunt's company clears the bankruptcy hurdle, it will reportedly try to lease back the club to its members, many of whom will lose their deposits through the bankruptcy.

gave no signal to its members of any financial difficulties.  Indeed, with nearly 800 members who were actively engaged in club activities, including plenty of golf cart fees on the Curtis Strange designed course, cash flow was not a problem.  So it was with amazement that club members learned that Hunt had placed Dominion in bankruptcy proceedings.

        Since the Hunt group intends to retain and, it hopes, lease the club back to its members, club members and local journalists believe the developer is trying to get out of its obligation to repay member initiation deposits of as much as $29,000.  Hunt lists $13 million in debts, the bulk of which are reported to be those deposits.

        Hunt built Wyndham, the community that surrounds the golf course.  The company has retained ownership of the adjacent lake, clubhouse and tennis courts through another group it owns, Loch Loven.  The club has “incredible cash flow and [is] very profitable,” according to a local realtor who has listed and sold many properties in Wyndham.

        In an arrangement that rivals credit-default swaps for its evil genius, Hunt charges the Dominion Club –- in other words, himself -– as much as $1 million in rent for the land, taking it from one pocket and applying it to other properties in the Hunt portfolio, according to the local realtor.  Even after the leasing payments, the club generates a reported mid-six figures of income annually which, of course, goes to Hunt.  Yet, over decades, Hunt has made no significant capital investments in the putting surfaces and deteriorating irrigation system on the golf course, according to club members.

        Reportedly, Hunt is not interested in selling the golf club.  Instead, according to reports, the company hopes to lease the club back to its members after the bankruptcy is resolved.  In other words, Hunt will be looking for a continuing stream of income from the very same folks whose deposits the firm is seeking to vaporize.

        What’s the old saying?  “Fool me once, shame on you; fool me twice, shame on me.”  A Richmond bankruptcy judge is going to have his hands full with this one.