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Golf dead? Kootenay developer switches to bikes

Golf rounds in Canada declined 10 per cent in the past five years while mountain biking is said to be gaining in popularity Is golf dead as a development anchor? That’s the question that faced Parastone Developments as they took over a failed golf co

 
 
 
Golf rounds in Canada declined 10 per cent in the past five years while mountain biking is said to be gaining in popularity 

Is golf dead as a development anchor? That’s the question that faced Parastone Developments as they took over a failed golf course proposal in the Kootenays two years ago.
They may have found the answer: switching from golf to focus on mountain bike trails and skiing. 
The change has paid off, according to Simon Howse, general manager of Parastone, which has seen a rapid sell out of the first phase of its 20 home sites at Montane in Fernie. 
The previous owners had designed the site as a golf resort, which never came to fruition and the Montane lands remained undeveloped for 10 years as development leapfrogged over the parcel.
“Canadians are playing less golf than they used to and there are several world class golf courses in the area, already,” Howse explained.
According to Statistics Canada, there are 1.5 million golfers in Canada and an estimated 2,400 golf courses. This corresponds to one course for every 625 players or 14,500 Canadians, which is among the highest number per capita in the world. But the National Allied Golf Associations (NAG) reported last year that the number of rounds played on the average Canadian course has dropped 10 per cent over the past five years. The declining interest is attributed to the time commitment required and the increase in cost of equipment and course prices, according to the NAG. 
As a comparison, sales of bicycles in B.C. increased 6.4 per from May 2013 to May 2014, reports Statistics Canada, though it is hard to get a breakdown of mountain bike sales. 
Jim Lee, spokesman for British Columbia Golf, an industry association, said reports of golf’s demise are grossly exaggerated.
“Golf is still the most popular sport in participation in B.C., with 410,000 people over the age of 12 having played golf at least once in the past 12 months.” Lee said, citing a Print Measurement Bureau study done in 2013. “There are 152,000 golfers playing more than 10 times in the past 12 months [in B.C.].
“In the US, golf courses are closing, particularly in residential developments, due to an over supply,” Lee said. “That does not appear to be the case in Canada, and particularly in B.C., although there have been courses in financial difficulty.”
Bike-friendly Parastone could also be simply riding an upturn in local residential sales. Home sales recorded through the Kootenay Real Estate Board hit 127 units in December 2014, up 16.5 per cent compared to December 2013. Parastone is now planning the release of the second stage of home sites and will be announcing more details this spring.

 
Golf courses sold and for sale

Some investors appear confident that golf can successfully anchor real estate developments. 
Shadow Mountain Golf Ltd. in the Kootenays was sold a year ago after the original owners slipped into receivership. The course was sold by Colliers International to an Edmonton investor group. Shadow Mountain is an 18-hole course designed by Cooke Carleton International and is surrounded by potential residential development on its 500-acre site. The residential is now branded as River Crossing and offers building lots for sale. 
The Rise in Vernon, which was also in receivership, was sold to a Calgary group for a reported $1.75 million. The sale of the 144-acre golf course did not include the golf business or the clubhouse and it is believed the new owners will launch a residential development. NAI Commercial of Vancouver sold the property through a court-ordered sale.
A golf course that is a going concern, the award-winning Sagebrush Golf & Sporting Club, near Merritt, B.C. was bought by Newmark Group, a real estate development and construction company with offices in Vancouver and Edmonton.
There are a number of profitable golf courses for sale in B.C. These include the Quesnel Golf Course; the nine-hole executive 100-Mile Golf Course, listed at $1.15 million; and the venerable 108 Resort Golf Course, priced north of $3 million. All of these are in the Cariboo region, with the latter two listed by LandQuest Realty.