Something major might finally be happening for Oahu’s municipal golf courses.
After almost two years of speculation, anticipation and — surprise — bureaucracy, the city is officially looking for a private-sector development partner who can expand the Ala Wai Golf Course. One company actively in pursuit of the contract envisions adding a sports entertainment venue that could include multilevel driving ranges, where golfers and nongolfers alike can hit microchipped balls at targets, watch big-screen TVs, enjoy live entertainment, or use private event spaces and meeting rooms.
The city is not looking for another five-year concession contract. It wants a much longer commitment and a land lease, after years of declining revenue at its six courses.
“We want to enhance the revenue generated by the golf division in order to ensure the perpetuity of (municipal) golf in Hawaii,” said Guy Kaulukukui, director of the Department of Enterprise Services. “Golf in general as a sport is threatened. We’ve seen that over time and it’s been validated in the public and private sector.
“I think municipal golf is where most, if not all, average people enter the game. They are typically the easiest courses to get on. We are at a vanguard trying to staunch the receding tide of rounds played in Hawaii and start to grow the sport again.”
On Wednesday, the city put out a request for proposals in search of a company to “design, build, finance, operate and maintain the Ala Wai Golf Course driving range and other golf-related activities.”
Objectives include “enhancing the golf experience” along with “preserving the rights and pricing of current patrons,” upgrading and expanding the area, and — underlined — “increasing revenue to the city.”
When a request for information was put out 14 months ago, the only response came from Topgolf, which will have 40 venues open worldwide by the end of the year. It has had 13 million “guest visits” in 2017, more than half between the ages of 18 and 34.
The Dallas-based company started in 2000 in England and moved to the U.S. five years later. It just announced an opening in Dubai, after confirming expansion to Canada, Australia and Mexico. It employs about 500 at each location.
Proposals will be accepted through the end of next month for Ala Wai and the city wants to have its “enhanced” facility open in two years.
Kaulukukui calls it “the first true public-private type of proposal.” He says five or six potential Topgolf competitors have been identified.
The city’s desire to secure something new and extremely different is expressed in phrases like “significantly enhance” and “more golf-related venues” such as food and beverage, and entertainment.
Topgolf’s sports-entertainment concept includes multilevel ranges with dozens of hitting bays. Participants — the majority of Topgolf customers are actually nongolfers — compete by hitting balls containing microchips at targets, with instant scoring and analysis and clubs provided.
Wait staff serves “chef-driven” food and a wide variety of drinks to the bays and at full-service restaurants and bars. There are big-screen TVs and live entertainment, private event spaces and meeting rooms. The Las Vegas site has a pool. Events for children, families, social leagues, groups, charities and teams are encouraged, along with actual golf lessons.
“Topgolf is very excited to be pursuing a location at Ala Wai,” Topgolf Chief Operating Officer Craig Kessler said Thursday from Dallas. “We deeply respect the heritage of Ala Wai and would ensure the preservation of the existing golf course. We believe it’s a tremendous opportunity to enhance the golf experience by adding a Topgolf venue next to the course.”
The Guinness Book of World Records once called Ala Wai the world’s busiest golf course, when some 220,000 rounds were played there a year. That is down to 120,000, even after the City Council set free green fees for ages 17 and under earlier this year.
Kaulukukui wants Ala Wai’s new range area to be a “threshold to the game” and help the city improve all its courses. With revenue down and expenses up, the city has had to cut back on maintenance and employees. Now the goal is better courses “tee to green” and a much better “ambience.”
Maui’s Mark Rolfing, a golf analyst for NBC and Golf Channel, said he is sure about what should happen next.
“I truly believe Topgolf can be a catalyst for the entire rejuvenation of golf in Hawaii,” said Rolfing, who is affiliated with Topgolf and will work with it during the proposal process and if it ultimately partners with the city.
“The reason I believe that is because they will introduce so many new people to the game that otherwise are not introduced to it out here. It just could not be done with another initiative. We are not seeing a lot of new golfers and that is the core of Topgolf’s business.”
Rolfing has been working with the city to redevelop Ala Wai and the Kahuku course, which is on land recently purchased by the city. He said Topgolf or a group like it can provide enough revenue to upgrade all six municipal courses and impact golf all over the state.
Golf’s popularity has dipped for three reasons — it takes too long, costs too much and is too difficult, he said, and Topgolf could help address those issues.
“The center of golf in Hawaii should be on Oahu and Ala Wai should be the core,” Rolfing said. “It should become the home of the rejuvenation of Hawaii golf. It’s an iconic place and I think this can do it.”
“I always worried something else was going to happen to Ala Wai — fewer holes or something else would be built there. The beauty of this is that the golf course will actually be enhanced. Improvements can be made because of Topgolf without eliminating any holes.”
Of course Topgolf also stands to benefit,” he said.
Topgolf “looks at this as a huge opportunity on its own merit. Hawaii is a great opportunity for them.”
