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Mailing Address:  P. O. Box 2265, Granby, CO 80446-2265
Office:  97 Forrest Drive, Granby, Colorado
Tel: 970-887-3759 ∙ Cell:  307-760-2922 ∙ Cell: 307-760-6890
e-mail:  pedersenplanning@gmail.com

Project Experience

Project: HAPUNA GOLF COURSE FINANCIAL ANALYSES AND HAPUNA BEACH STATE RECREATION AREA EXPANSION ECONOMIC ANALYSIS
Location: Hapuna, South Kohala, Island of Hawaii, Hawaii
Client: Harrison Associates/Hawaii Department of Land & Natural Resources
3660 Waialae Avenue, Suite 312, Honolulu, Hawaii  96816
Contact: Warren Harrison, P.E.
Year Completed: 1992
Project Scope:

The State of Hawaii, Department of Land and Natural Resources, was considering the development of an 18-hole municipal golf course as part of its proposed 875-acre expansion of the Hapuna Beach State Recreation Area.  The Department of Land and Natural Resources required an economic analysis for the overall park expansion project to determine the value of the project to the West Hawaii economy.  The Department also wanted to investigate the feasibility of a private concessionaire assuming responsibility for the operation and maintenance of the golf course.  A related question to the feasibility of a private concessionaire operation was to identify the operational assumptions that must be made to make the cost for a round of golf marketable to resident players.

A market analysis was made of various coastal recreational opportunities in West Hawaii.  Potential market share was calculated for several outdoor recreation activities, including golf, and segregated for both weekend and weekday participation by both residents and visitors.

A five-year pro forma projection was made for private operation of the golf course.  The pro forma identified detailed revenue and cost assumptions for green fees, cart rentals, a driving range, pro shop supplies, as well as food and beverage.  In addition, specific requirements and costs for golf course management and golf course maintenance were also determined.

A net-present value analyses was used for the economic analysis of the overall park expansion.  Project development and operation and maintenance costs were developed for overall park maintenance.  Assumptions were made to determine user expenditures within the West Hawaii economy.