Feature: Clontarf GC members will meet this week to choose between lucrative offers from two property traders. John O'Sullivanreports.
Croke Park could witness another historical moment next week, once again far removed from the GAA codes. Having opened its doors to rugby and soccer this year, the venue may be the backdrop for a seminal golfing event.
Clontarf Golf Club are the envy of not alone many of their Dublin metropolitan counterparts but clubs throughout the country. A historic settlement beckons, that could transform the landscape for future negotiations between golf clubs and property developers.
The current economic downturn hardly represents the most lucrative backdrop to a massive financial windfall but that's exactly what the members of Clontarf could enjoy in the near future.
The relocation of Dun Laoghaire and Douglas Golf Clubs will be judged as unqualified successes from a practical playing perspective, while Foxrock and Killiney golf clubs have attracted interest from property developers who covet that prime real estate.
Clontarf, though, could achieve a remarkable first by securing a lucrative payment for their membership. The club is being pursued by rival suitors, Capel Developments and Manor Park Homebuilders, in a prospective cash plus land swap deal that would require relocation from their Donnycarney home.
A special general meeting (SGM) called by the board of management at the club will take place at Croke Park on Tuesday, although the agenda has been changed dramatically by events during the week. About 680 full members with voting rights were to have considered and voted on whether to accept or reject an offer from Capel Developments, the essence of which would see them relocate to Portmarnock Links course, receive a €20 million payment to the club coffers, a cash stipend for the membership and a 28,000 square feet clubhouse.
However, last Wednesday night, Manor Park Homebuilders submitted an alterative proposal that offered to construct a new parkland course at Abbeville, the former seat of Charlie Haughey, which is owned by the company, an identical €20 million lump sum for the club, a 25,000 square foot clubhouse and a marginally improved financial package for the membership.
Clontarf's board of management met on Thursday night and secretary/manager Arthur Cahill confirmed that Tuesday night's SGM will now serve as an information meeting for the membership at which both proposals will be discussed and the attendant ramifications.
He added that the full members would then convene next Friday at another SGM to vote on whether to accept or reject the Capel offer - a yes vote requires a two thirds majority - a deal worth in excess of €125 million to Clontarf: the 150 acre, Bernhard Langer designed course at Portmarnock Links (€30 million), payment to membership (€75 million) and payment to club (€20 million).
The reason for the short turnaround in SGMs is the Capel Developments' offer expires on Friday, November 30th. The Crumlin-based company is owned by property figures Edward Keegan, Liam Kelly and John O'Connor and had been in negotiation with Clontarf for quite some time before submitting their final offer.
They bought Portmarnock Hotel and Golf Links from Tony O'Reilly, Michael Holland and Brendan Gilmore with a view to offering a land swap agreement with a golf club. The hotel is not part of the deal. If the Clontarf members vote to accept the Capel Development's proposal, the club would immediately receive a non-refundable payment of €1 million.
Under the conditions of the agreement Clontarf would relocate to the 12-year-old renowned north Dublin links where a state of the art, two tier, 28,000 square feet clubhouse would be constructed to the right of the fifth tee. Access would be from Golf Links Road. It would mean a slight re-routing of the course to accommodate the new clubhouse, practice facilities and driving range.
Full members of Clontarf would receive a payment of €100,000, Lady Associates (€22,000), five-day members (€17,500), intermediate members (€16,500), bowling and country members (€5,000) and pavilion members (€1,000).
All the payments would be subject to 20 per cent Capital Gains Tax.
Manor Park Homebuilders' - Joe Moran is the principal shareholder - late arrival into the race for Clontarf's favours, suggests they examined Capel's bid in detail and decided on a couple of tweaks. They are willing to offer the full members €105,000 each - after tax, the rival property companies are offering sums of €80,000 (Capel) as against €84,000 (Manor Park) - with the provision of an €8 million fund for the remaining membership categories.
They will build a Ron Kirby-designed 7,000-yard, parkland course on the 234-acre Abbeville site at Kinsealy, which the company owns, a 25,000 square feet clubhouse, give a €20 million lump sum to the club and a €4 million non-refundable payment (in the event of Manor Park not being able to proceed with the deal) if the Clontarf membership vote in favour of their proposal. The latter sum would be deducted from the €20 million figure due to the club.
While both proposals appear financially lucrative for the Clontarf members, there are a number of caveats - quite apart from a membership consensus to relocate. While both property development companies are keen to secure the 77-acre site at Donnycarney, their ambition to have the land rezoned - it is currently denoted under the regulations as Z9 "Open Space" - it is far from straight forward.
Clontarf Golf club own about 12 acres of the site, 63 belongs to Dublin City Council, with a further two owned by CIE. Under a lease dated February 12th, 1998, the council leased the 63 acres adjoining the Malahide Road to the trustees of the golf club for a period of 99 years, backdated to March 25th, 1991. The annual rent was set at €19,046.07, with rent reviews every five years and in agreeing to move Clontarf would give up their claims on the lease entitlements.
One of the covenants in the lease is that the premises should be maintained as a golf course. If one of the two companies is successful then they will have to negotiate with Dublin City council to have the land re-zoned to residential or mixed residential and commercial and the likelihood is that a certain amount of social housing would be a prerequisite.
The Clontarf lands are bordered by Mount Temple School, who could be amenable to discussing options with any developers, and CIE - in addition to the two acres they already have, they are keen to secure land to run a third line out of Connolly station. At present, the Dublin-Belfast Enterprise train has to run on DART lines as far as Malahide and there is wish to construct a high speed line.
A commitment to facilitate would be welcomed at Dublin City Council level.
The human and golfing aspects present an interesting conundrum for a Clontarf membership whose average age would be late 50s with a high family membership ratio. For the younger generation of keen golfers, the decision to relocate to say Portmarnock Links would be a "no brainer", to use the vernacular.
They will enjoy the challenge of one of Ireland's better courses with state of the art facilities and a financial dividend that would facilitate a better lifestyle at a point when for most such a financial injection would be most welcome.
The older generation, a grouping in their seventies plus, would be required to be a little more selfless and place the good of the club ahead of what possibly could ultimately be disenfranchising themselves from the game. There is a massive difference between walking around the gentle parkland slopes of a short, par 69 layout and wrestling with a championship course.
In the case of the links it would be wrong try and emasculate a great course: in mitigation they have built new tees on most holes and that could be extended in the light of an agreement to relocate.
The financial benefit would be less personal to the older generation and more likely to become a cash legacy to extended family.
It's unlikely the majority of the membership will take umbrage with the profit the developers would make on the transaction. Depending on the re-zoning, the land could be worth about €500 million but the priority for the membership would be the quality of the new amenity rather than haggling over a few extra euro.
The accepted wisdom prior to Manor Park's late intervention was the Capel Developments offer would squeeze past the two thirds majority required but it was by no means a foregone conclusion.
Golf clubs everywhere will take a keen interest in the developments at Croke Park this week.
Decision time for members
The financial implications of any proposed move by Clontarf Golf Club to the proposed venues of their rival suitors, Capel Developments and Manor Park Homebuilders, remain a lucrative carrot for the membership.
There is also the attraction from a golfing perspective of moving from a tight, par 69 layout, to either Portmarnock Links or the proposed new construction at Abbeville, courses that that would be appreciably better than the existing layout in the Donneycarney neighbourhood of north Dublin.
But there is also the human face of the re-location. Paddy O'Connor has been a member of Clontarf for 27 years, an attachment that leaves him in a perfect position to consider recent developments. Having recently retired from Independent Newspapers he's now in an even better position to pursue his love of the sport, playing three times a week.
"I joined in my early 30s, a decision that was based on the proximity of the course to my home. I felt that you should play in a club that was closest to you, relative to being able to join, obviously. I'm delighted at the prospect of what this will mean for the club.
"It's a golden opportunity to consolidate the future of Clontarf Golf Club. When you consider the catchment area, moving out to Portmarnock would not be a massive upheaval. It's a superb, mature golf course."
For the older members there is obviously a decision to be taken about leaving a relatively benign parkland layout for a more challenging links sibling. "I can't speak for them but I could understand why they would have certain regrets attached to leaving the current location. However, it's really down to individuals to vote on what they believe to be best for the club and themselves."
Nearly 100 years going
Clontarf Golf Club was founded in 1912 on the lands of Mount Temple, thanks mainly to Dr John Love Morrow. Born in Antrim (1860), this Presbyterian minister moved to the Clontarf area in 1890 and became a golfer of consummate ability. In 1906 he was appointed Hon Secretary of the Golfing Union of Ireland. His dream to set up Clontarf Golf Club became a reality in 1912 when he successfully negotiated with the owner, Pickton Bradshaw.
At a special meeting to form the club it was agreed the entrance fee for Clontarf residents would be two guineas and three guineas for those living outside the area. The original entrance to the course and clubhouse was on the Howth Road, just 200 yards from the now defunct Clontarf railway station.
The course was officially opened by The Earl of Aberdeen, Lord Lieutenant of Ireland, on May 25th, 1912.
Due to problems over the leasing of the land, the club had to move and in August 1921, after much negotiation, secured the lease from Dublin Corporation on the land attached to Donnycarney House.
Renowned golf course architect Harry Colt was commissioned to lay out a 12-hole course. The club's new home was officially opened in June 6th, 1923 by the then Governor General, Tim Healy. The course was extended to 18 holes and the new holes opened for play on June 4th, 1927.
The extended course was achieved through the acquisition of land which gives the club their famous quarry holes plus the 15th to the 17th holes. Apart from the addition or removal of hazards and re-location of the 12th, 13th and 15th greens the course remains very much the same as the original 18-hole layout, completed in 1927.
The money
Capel Developments
Sliding scale of payments.
Full members with voting rights: €100,000.
Lady Associates: €22,000.
5-day members: €17,500.
Intermediate members: €16,500.
Bowling and Country members: €5,000.
Pavilion members: €1,000.
All sums less 20 per cent Capital Gains Tax.
€20 million for club funds.
€1 million non-refundable sum on signing of the agreement.
Manor Park Homebuilders
Sliding scale of payments from €105,000 (full members with voting rights) to a fund of €8 million for the remaining membership categories less 20 per cent CGT.
€20 million for club funds.
*€4 million non-refundable sum on signing of the agreement.
*This money will be deducted from the €20 million club funds if the project goes ahead.
Relocation venues
Capel Developments
Would see Clontarf Golf club move to the 12-year-old, Bernhard Langer-designed Portmarnock Links course. A 28,000 square feet clubhouse will be constructed to the right of the fifth fairway with access from the road leading up to Portmarnock Golf Club. It would mean re-jigging the layout of the course to accommodate the the new clubhouse. Provision has also been made for state of the art practice facilities and a driving range.
Manor Park Homebuilders
Would see Clontarf Golf Club move to a 7,000-yard Ron Kirby-designed course at Abbeville, Charlie Haughey's former estate.
The developers have planning permission for the course and will guarantee both it and the clubhouse for three years after Clontarf move to the site. They would build a 25,000 square feet clubhouse as well as ancillary practice facilities. Project management of the course and clubhouse construction would be undertaken by the Carr Golf Group.
