Castle Pines, CO (August 20, 2014) The Sioux Falls Regional Airport Authority and the City of Sioux Falls retained Golf Convergence to create a formula measuring the economic loss to the Elmwood Golf Course from the airport expansion.

It is forecast that the renovation of the Elmwood Golf Course will near $5.8 million to ensure the correct application of 49 U.S.C. Section 303(c), commonly known as Section 4F of the Department of Transportation Act. This Act provides for mitigation of properties to a condition that is equal or better than current to ensure the harm to the land resulting from such use, i.e., expansion of the airport, is minimized.

Creating a formula to measure revenue loss on a golf course that will operate 18 of the 27 holes during renovation is complex. There are many factors that influence the profitability of the golf course: the economy, weather, local demographics, demand vs. supply, the course layout, the clubhouse, customer service, programs (clinics, tournaments, leagues, etc.), and competitive factors are a few. To add to this cauldron, the extensiveness of a renovation and the incremental grow-in costs vs. standard course maintenance expenses render the magical brew of permutations complex.

Thus, to isolate and precisely quantify the impact of one factor (a temporary reduction of capacity) among so many factors is a formidable task, especially considering the extended time period from August 2013, when the East 9 was closed, until the renovation is complete in 2016.

J. J. Keegan, Managing Principal, commented, “We are excited that these two governmental bodies selected our firm to solve this complex riddle through research and financial modeling to provide a benchmark on which both parties can rely as an integral component to the their “Memorandum of Understanding.”

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Marissa Witmer, Vice President, Social Media

Golf Convergence

303.283.8880

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