Tee-Off Times_2013_MarApr

General Overview of Property Taxation

Award Winners of 2012

“To Do’s” about Obamacare

In this issue:

“Spring Into Leagues”Surefire way to improve your bottom line

Kevin and Betty Miller,Gull Lake ViewWednesday Night Couples League.

TEE-OFF TIMES MARCH/APRIL 2013 2

Club CarREBATE: $15.00 REBATE FOR EACH CLUB CAR GOLF CAR PURCHASED BY AN NGCOA MEMBER THAT IS NOT

A REPLACEMENT OF A CLUB CAR VEHICLE

CONFERENCE: COMPLIMENTARY ADMISSION TO THE NGCOA ANNUAL CONFERENCE AND GOLF OUTING

FOR MEMBERS RENEWING OR CONVERTING THEIR FLEET

VISAGE: ADDITIONAL FEATURES TO BE PROVIDED IN YEAR ONE AT NO COST TO THE CUSTOMER.Visit www.clubcar.com or contact Rutledge Baker at (800) 933-4262, ext. 270 or [email protected].

NGCOA Insurance Program: Property and CasualtyInsurance • Arthur J. Gallagher & Co. and Allied InsuranceSAVINGS: $150 SAVINGS ON BUILDING APPRAISALS AND 80% DISCOUNT ON BACKGROUND CHECKS;

WEDDING CANCELLATION AND TRAVEL INSURANCEVisit www.ngcoa.org/insuranceprogram or contact Mike McCoy at (515) 440-8403 or [email protected].

NGCOA Insurance Program: Group Life, Short-TermDisability, Long-Term Disability • Gallagher BenefitService, Inc. and Lincoln Financial GroupSAVINGS: 15% SAVINGS AND TWO-YEAR PREMIUM RATE GUARANTEE ON GROUP LIFE, SHORT-TERM

DISABILITY AND LONG-TERM DISABILITY INSURANCE Visit www.ngcoa.org/insuranceprogram or contact Kent McLaughlin at (515) 681-9999 or [email protected].

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Or for Avis and Budget contact Debbie Arett at (404) 577-5450 or [email protected].

To better serve members, the NGCOA has forged relationships with the industry's leading suppliers of products and services for golf operations. These organizations have extended members-only pricing, rebates and value-added packages exclusively to NGCOA members.

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ACTIVATE THESE COST-SAVING BENEFITS TODAY!Visit www.ngcoa.org/purchasingnetworkNot a member? Join the NGCOA today and you too can take advantage of these member exclusive benefits. Learn more at www.ngcoa.org/circle or call Joe Rice at (800) 933-4262, ext. 222.

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WWW.MGCOA.ORG MARCH/APRIL 20133

Board of Directors

PresidentJeff HoagScott Lake Country Club

Vice PresidentSusan VanderburgIndian Lake Hills

TreasurerBill FountainMajestic at Lake Walden

Past PresidentBob KoutnikFox Run Country Club

by Jeff Hoag, MGCOA President

Getting from here to thereLife is hard in the golf business

these days. If you read the “Club and Resort Business Daily News” (HarborCommunications.com) you can read some sad stories about golf courses closing (yeah!), golf courses going bankrupt (sad!), golf courses being bought out of bank-ruptcy by new owners (My gosh, what are they thinking?), and ev-ery now and then a story about a golf course brought back from the brink of falling over the cliff. When I read about those success stories, it makes me want to know more. How did they get from the low to the high, from here to there?

The golf business is ever evolv-ing. We have had a ten or eleven year period to make adjustments to our business plans and our op-erations. The business is different today. When I read about those courses that have made those ad-justments, it makes me want to know more; how did they get from here to there?

When asking those operators about how they got from here to there, there are some common an-swers among them. Here are some answers:

1.) The operators are networking all of the time. They are network-

ing with fellow golf operators. They are networking with fellow busi-ness owners. They are networking with their Chamber of Commerce.

They are networking with their customers. THEY ARE NETWORK-ING CONTINUOUSLY!

2.) They try new things. They are not afraid to test or adopt new ideas. Where do they get those ideas? From their networks!

3.) They have a vision for where they are going. Now we are not talking Hollywood vision here, but a working vision of what their business should look like and feel like. Something they can commu-nicate easily to their staff and to their customers.

Three steps to success. But these steps have to be taken daily. This reminds me of a quote I re-ally like from Zig Ziglar: “People often say that motivation doesn’t last. Well, neither does bathing

News from the President

Kathy AznavorianFox Hills Golf & Banquet Center

Larry BowdenThe Natural

Ed ClarkSandy Ridge Golf Course

Jim DewlingTotal Golf Inc.

Frank GuastellaFranklin Golf

Toni JoersConcord Hills

Fred MawsonCorporate Tax Resources

Larry MooreU.S. Golf Cars

Carolyn OlsonElmbrook Golf Course

Steve RameyChisholm Hills

Dan RooneyGrand Haven Golf Club

Tom SchwarkSycamore Hills

Jon ScottGull Lake View

Curtis WrightCopper Hills Golf Course

3 WWW.MGCOA.ORG MAY/JUNE 2012

“People often say thatmotivation doesn’t last.Well, neither does bathing –that’s why we recommendit daily.”

– that’s why we recommend it daily.” In the golf business it is easy to do this daily. How? Get on the NGCOA Listserv by going to

NGCOA.org, go to the networking tab at the top and join listserv. If you’ve got questions, just ask. You are going to get answers. Got an-swers to someone else’s question? Go ahead and share. Next, make a phone call. Call Kate at

the MGCOA office, she is a great resource for answers and refer-ences. Next, come to the MGCOA workshops and annual meetings. They are full of information and wonderful networking opportuni-ties. Attend the NGCOA Annual conference, network there and bring home baskets of ideas.

Look. The best thing about being a golf course operator is the fact that you have a choice. You can either stay doing what you are cur-rently doing or you can change. It’s up to you. If you want to go from here, where you are today, to there, that place where your vision takes you, it’s going to be because YOU DID SOMETHING by networking or trying new ideas.


If you are a member of the MGCOA and would like to donate rounds to the Golden Passbook for 2014, contact Kate Moore at [email protected]

Michigan Award of Merit forGolden Passbook to GolfThe Michigan Golf Course Own-ers Association does not give an Award of Merit every year. In fact, the Association has only given two

other in our history. This makes it a pretty big deal. In the year 2002, the board of directors of the MG-COA gave the staff an unfunded mandate to start a government

affairs initiative and truly become the “voice of Michigan golf busi-ness.” To fund this, our former colleague and great friend John

Dodge along with Kate Moore, executive director, created the Golden Passbook to Michigan Golf. Well, they might have cooked up the idea, but if it weren’t for the

dedicated members that stepped up and gave valuable inventory to the project, it never would have become a reality. In 2012, the MG-COA printed the 10th edition of the Golden Passbook. Of the origi-nal 33 golf courses to step up and join the ini-tiative, 32 remained in the book for 10 years. With the book retail-ing now for $550, these Founding Contributors to the Golden Pass-book have insured the financial stability of the government affairs pro-gram. The MGCOA and the golf business indus-try is in their debt. This year, there are 88 golf courses in the Michi-gan Golden Passbook to Golf.

FOUNDING CONTRIBUTORS

A-Ga-Ming, KewadinApple Mountain Resort, FreelandBoyne U S A Resorts, Boyne FallsBucks Run Golf Club, Mt. PleasantChisholm Hills Golf Club, LansingClearbrook Golf Club, SaugatuckConcord Hills Golf Course, ConcordCopper Hills Golf & Country Club, OxfordEldorado Golf Course, MasonElk Ridge Golf Course, AtlantaElmbrook Golf Course, Traverse CityFox Hills Golf & Banquet Center, PlymouthGarland Resort, LewistonGull Lake View Golf Club, AugustaHawk Hollow Golf Course, BathIndian Lake Hills Golf Course, Eau ClaireMcGuires Evergreen Golf, CadillacOld Channel Trail Golf, MontagueRavines Golf Club, HollandRed Hawk Golf Club, East TawasRiverwood Golf Course, Mt. PleasantScott Lake Country Club, Comstock ParkShanty Creek Resort, BellaireSt. Ives Golf Club, StanwoodSycamore Hills Golf Club, MacombThe Emerald Golf Course, St. JohnsThe Fortress, FrankenmuthThe Majestic at Lake Walden, HartlandThe Natural, GaylordTimber Ridge Golf Club, East LansingTimber Trace Golf Club, PinkneyWhitefish Lake Golf, Pierson

Many of the founding contributors of the Golden Passbook to Michigan Golf


From the Executive Director

by Kate Moore, MGCOA Executive Director

Meeting Billy CasperBilly Casper grew up putting

for nickels and dimes and hitting balls off ant hills before becoming one of golf’s leading money winners and most respected champions. What a thrill it was for me to be on hand when he received the NGCOA’s Award of Merit at their annual conference this past February.

There wasn’t a Sunday during golf season that my dad didn’t have the television tuned into the tournament of the week. I met every golfing celebrity through his eyes and commentary. Palmer, Player, Floyd, Trevino, the list goes on. But for some reason Billy Casper has always been a stand out for me. Yes, he has worn the

green jacket and walked away with US Open trophy. Johnny Miller once said that Casper had the

“greatest pair of hands God ever gave a human being.” But Casper’s heart, his compassion for children

and his faith distinguished him far beyond golf.

A true humanitarian, in 2010, Casper was honored with the PGA of America’s Distinguished Service Award, recognizing his considerable charitable work during his playing days and in the years since he retired from competitive golf. Over the years, Casper has worked extensively with Big Brothers / Big Sisters, Junior Achievement, The First Tee and his own Billy’s Kids Foundation.

Wouldn’t it be great if this were the type of sports icon our children were exposed to

today? Hard working, honorable, f a i t h f u l . T h a n k s , D a d , f o r introducing me to Billy Casper.


NGCOA Bookstore – MEMBER BENEFITWelcome to the place where it

only takes seconds to spot the value of membership!

Get e-manuals anytime, anyplace as free electronic downloads. That’s “e” for easy!

Browse tit les, back issues of Golf Business magazine or Annual Conference sess ion recordings; all available at nominal fees and many free to members of the MGCOA. And don’t miss the Compensation & Benefits Report. It’s your best resource to compare your facilities compensation and benefits with that of your peers to see how yours stacks up. Here are a few of the free resources.

All you need is your email address and your member password. Get started connecting today.

Not a member? To learn more about MGCOA member benefits or join now, call Kate or Jada at 800-860-8575

51 Ways to a MoreProfitable OperationPart of the NGCOA’s “51” Series, this manual features 51 tips for giving your bottom line a boost through operational efficiencies, creative initiatives and more.Member Price $0 Non-Member $45 51 Ways to IncreaseCustomer RetentionThe second in the NGCOA’s “51” Series, this publication includes topics such as effective customer identification, tracking behavior, hard vs. soft benefits, chang-ing behaviors, customer rewards. Topics include customer identification and more.Member Price $0 Non-Member $45 51 Ways to Legally Protect Your Golf CoursePart of the NGCOA’s “51 Ways” Series, this publication includes info on property rights and potential dispute areas, operational issues like errant golf balls, alcohol liability, and golf car accidents, regulatory require-ments, contracts, and human resources.Member Price $0 Non-Member $45

Sample Publications


“Allowing employers to choose their own Standard Measure-ment Period is good news for seasonal employers.”

The cornerstone of the Afford-able Care Act (ACA), or Obamacare, is to ensure that all Americans are covered by a health insurance plan – with the majority of the burden fall-ing on employers. Employers can either pay the penalties or provide proper coverage – many are refer-ring to this as Pay or Play.

On January 1, 2014, dramatic changes will occur in the group health care marketplace. Large em-ployers that don’t offer employees affordable, minimum essential cov-erage will face significant penalties, so it’s critical to use 2013 to prepare.

A business is considered a large employer if they have at least 50 full-time employees. Large employers that don�t provide their employees with affordable health coverage will be assessed a penalty. The annual penalty is $2,000 per full-time em-ployee in excess of 30 workers. For example, if employer has 53 full-time employees and they do not offer affordable, minimum essential cov-erage, the penalty would be $46,000 (23 × $2,000) per year.

The IRS has announced a “safe harbor” for employers to deter-mine who is a full-time employee. The “safe harbor” rules include establishing a Standard Measure-ment Period of not less than three months but not more than twelve months, in which an employer cal-culates who is a full-time employee. The IRS has defined “full-time” for ACA purposes, as an individual who works 130 hours or more per month. The Standard Measurement Period was developed because the IRS believes that a month-to-month determination is burdensome on employers and could be disruptive to employees. Following the Standa rd Measurement Period, employers

The one thing course managers mustdo NOW about Obamacare

will establish a Stability Period in which those employees who met the requirement of 130 hours per

month are “locked in” and those that did not are “locked out” of health care coverage. The Stability Period will run the same length of time that Standard Measurement Period. For example, if an employ-er chooses a 12 month Standard Measurement Period the Stability Period would also be 12 months.

Allowing employers to choose their own Standard Measure-ment Period is good news for

seasonal employ-e r s . M o s t w i l l want to choose a longer period of twelve months to determine i f an employee has worked 130 hours

or more during all of the twelve months. That would essentially re-quire coverage only for year-round employees but lock out coverage for seasonal full-time employees. It’s important to note that em-ployers may already be in their Standard Measurement Period.

Guest Columnist

by Diane Pelak

Continued on page 8


The NGCOA Listserv is an email community of mem-bers from around the world with one goal in mind: sharing ideas and solving the prob-lems that golf course opera-tors face every day. And the number of members enlisted grows every week.

HOW IT WORKS:The NGCOA’s listserv tech-

nology is strictly email-based, meaning you don’t need to log on to a Web site to engage in the dialogue. It’s more user-friendly than a standard chat room; the dialogue comes to you, rather than you seeking out other live

The one thing that course man-agers must do now to prepare for Obamacare is to ensure they have a method that accurately tracks all employees’ time so they can determine who is and who is not a full-time employee for ACA pur-poses. The method chosen should store timekeeping data for an ex-tended period of time and allow course managers to simply run monthly reports of actual time worked. The ability to download the data will be critical to ensure compliance with The Affordable Care Act and avoid potentially costly penalties.

With the Affordable Care Act upon us, we are certain to see some dramatic changes occur in the group health care marketplace. Accurate timekeeping is a critical component in determining your requirement to provide affordable health care for your employees.

Continued from page 7Obamacare NGCOA Listserv– MEMBER BENEFIT

participants.Once you subscribe to the list-

serv, you will have the ability to send and receive emails within the community and all members can review and respond. The re-sponder may choose to email you privately, but the value of the listserv lies within the pub-lic, open dialogue.

All you need is your email ad-dress and your member pass-word. Get started connecting today.

Not a member? To learn more about MGCOA member benefits or join now, call Kate or Jada at 800-860-8575

BENEFIT FROM THE EXPERIENCE OF THOUSANDS OF INDUSTRY PROFESSIONALS – FROM THE COMFORT OF YOUR HOME OR OFFICE


Doak, Brady, Balmer elected to the MI HOFThe hottest golf course architect

in the business, one of the most dominant players in the state who is passing on his knowledge to the wannabes and an executive who rescued the Golf Association of Michigan and patched it back to-gether have been elected to the Michigan Golf Hall of Fame.

Tom Doak, Steve Brady and Fritz Balmer will be inducted May 19 at the Henry Center at Michigan State University’s Forest Akers West Golf Course.

Doak worked for Pete and Alice Dye, settled in northern Michigan where he could play the classic Crystal Downs course by Alister MacKenzie and did his first solo work. Doak has designed courses in Tasmania, Australia, Mexico, Scotland and 15 states. And he has work in China. Doak’s Michi-gan courses are High Pointe at Acme, unfortunately closed,

Black Forest at Wilderness Val-ley in Gaylord, and Lost Dunes at Bridgman.

Steve Brady, 54, has been a dominant player in state play since graduating from Saginaw Valley State University where he made All-American in 1980. He was named to the SVSU Hall of Fame in 2010. Brady became one of the state’s top players at a time when the competition included now current PGA Tour million-aire Tom Gillis, Jeff Roth and Jack Seltzer, both now in the Michigan Golf Hall of Fame and sure-to-be member Scott Hebert. He won three Michigan Opens, two PGA Championships, two Michi-gan Bell Showdowns at Grand Traverse Resort, one Assistant Professional championship and one Shanty Creek title, six Pro-Pro, two Senior-Junior one Pro-Am and one Pro-Assistant, all events

sponsored by the Michigan PGA Section. Brady now is Director of Instruction at Oakland Hills Coun-try Club, his home for 16 years.

Fritz Balmer, 73, began his service to golf in 1975 when, as a member of Spring Meadows Country Club, he became Club Representative to the Golf Association of Michigan, a position he held for nine years. Balmer was appointed a Governor of the GAM in 1986 and chaired the Junior Committee from 1987-1991. Balmer’s primary contribution was in putting the GAM back on solid ground in 2000. He served as GAM president until 2002 and in 2007 was given the GAM’s Distinguished Service Award.

For more information on this year ’s induct ion ceremony, contact Loretta Larkin at [email protected], (248) 719-0650 or www.michigan-golf-foundation.com.


The Front Nine of Environmental Risk Management at the Golf Facility

Golf courses and countr y clubs across the country are fac-ing what seems to be the “new normal” of reduced budgets, strained resources, and the need to operate leaner and smarter. It’s no wonder that the concept of sustainability has held fast within the golf industry. Yet, there are a few key, and often under-em-phasized, elements of managing golf operations more sustain-ably that, if not addressed, can crumble the very foundation of any environmental improvement program and add unnecessary costs to your budget.

An Environmental Management System (EMS) is the framework used to build and maintain a strong foundation. By adopting an EMS approach to environmental man-agement, golf course owners and operators are challenged to answer some basic, but tough, questions.

1. Has the Entire Property Gone Through a Full Environmental As-sessment?: The very first step to reducing overall environmental risk and liability is to conduct a thorough self-assessment of the environmental profile of the entire golf facility and its operations.

2. Do We have Full Employ-ee Buy-In that includes Top Management?: The best environ-mental management approaches are completed on the ground, but supported from the top. Are your club Board, President, and Senior Management aware of the environmental stewardship responsibilities of the golf or country club operations and the rewards that result from sustain-able practices?

3. Have We Established a Facil-ity-Wide Environmental Policy?: The simple act of writing and

by Debra S. Swartz, Great Lakes Regional Representative, e-par USA, Inc. Kevin A. Fletcher, Ph.D., President & CEO, e-par USA, Inc.

making public the organization’s commitment to protecting the en-vironment is an important early step to take. It fosters collabora-tion among all employees and the ability to present your environ-mental principles to the public.

4. Have We Ever Conducted a Risk Assessment?: Have you con-ducted an environmental risk assessment to identify the most vulnerable spots and activities that could potentially cause an accident?

5. Have We Developed Written Environmental Action Plans?: These plans can both address what you need to do, as identified in the risk assessment, as well as the environmental improvement and enhancements you want to make at the facility within a spe-cific period of time.

6. Do We Have A Person As-signed to Each Action?: For each action item or improvement proj-ect, be sure to assign an individual as the “responsible party” for com-pletion of the task and give them a budget to work within.

7. Do We Understand the Value of Written Standard Operating Procedures?: A simple set of SOPs is a terrific way to ensure consistent actions by employees that reduce risk and help to doc-ument that your club has its act together. Have you established a prioritized, written set of environ-mental improvements to address the highest risks?

8. Do We Provide Initial and Ongoing Environmental Train-ing?: You want to have your policy in place, clear procedures, and practices identified that need to be addressed. That’s good. Yet, it’s the people that make things go right—or wrong. Do

you have an environmental train-ing schedule in place?

9. Finally… Do We Foster a Staff “Culture” of Ongoing En-vironmental Stewardship?: In the end, each of the eight ele-ments above are only useful if reviewed and modified on a pe-riodic basis. That “continuous improvement” process helps to build a culture of ongoing envi-ronmental stewardship.

By asking these questions and adopting an Environmental Man-agement Systems approach to your operations you’ll be able to reduce liability, save costs, and im-prove your overall environmental performance.

“Environmental Management Systems build a culture of risk avoidance and sustainability and ongoing environmental training is an important element needed to build and cultivate that organi-zational culture,” Debbie Swartz, e-par USA, Jay Eccleton & Troy Looney, The Emerald Golf Course.

Bios:Debra S. Swartz (swartzdebbie@

gmail.com), an environmental spe-cialist in the turfgrass industry, is owner of D.S. Swartz, LLC and serves as the Great Lakes Regional Representative for e-par USA, Inc.

Kevin A. Fletcher, Ph.D., ([email protected]) is President & CEO of e-par USA, Inc., an environmen-tal business strategy advisory firm specializing in environmental man-agement systems for golf facilities & clubs, sports facilities, and park and recreation facilities.

MGCOA welcomes e-par USA as a new Corporate Member.


will join us for a Town Hall style event at the Amway Grand Plaza Hotel the first week of December for the 2013 Michigan golf Busi-ness Conference.

Many golf course owners and operators were on hand to receive the special Award of Merit for their 10 year participation in the Golden

Passbook to Michigan Golf. Joining us in their hometown were Erich Kuhlman, director of golf and John Shelton, owner of the Fortress Golf Course in Frankenmuth.

Club Car andTurf Equipment Dealer

and Distributor

www.midwestgt.com800-555-8189

MGCOA Announces 2012 Award WinnersGreg Johnson, award-winning

sports journalist and golf writer received the “Bruce Matthews Lifetime Achievement Award” in recognition of his outstanding service to the Michigan golf com-munity. Johnson’s distinguished career includes 28 years with the Grand Rapids Press. Since he gradu-ated from Michigan State University, Johnson has been writing about sports in Michigan, first as sports

editor of two papers in Hastings and then full-time at the Grand Rapids Press. Greg has been a fixture for all things golf in Michigan: professional and amateur, public and club golf. He is highly respected by his peers for his knowledge of the game and the people who play it.

Fourteen years ago the Michigan Golf Course Owners Association hired its first employee. Kate Moore, MGCOA’s executive director, was that employee, and the MGCOA honored her commitment and con-tribution to the Association and to the golf industry in Michigan. Being at the helm for the formation of the Michigan Golf Alliance, develop-ment of the Michigan Golf League Championship, creation of the Golden Passbook to Michigan Golf and enhancement the Michigan Golf Business Conference, combined with her continued commitment to the MGCOA, made Moore the year’s recipient of the Lyle Leeke Distin-guish Service Award.

Grand Traverse Resort and The Bear in Traverse City was select-

ed Michigan Golf Course Owners Association’s Golf Course of the Year for 2012. With a long list of accomplishments, along with

community contributions and exceptional management, Grand Traverse Resort and The Bear was an easy selection. The combined 70 years of experience in key golf management of Director of Golf Tom McGee, Head Golf Profes-sional Scott Hebert, and Director of Golf & Grounds Paul Galligan proved to be a winning formula. The Bear has been the host course for the Michigan Open for 24 years.

The crowd went wild for “attitude guy” Sam Glenn at the MGCOA Golf

Business Conference and Vendor Fair this winter. Glenn grabs your attention with his creative use of art styling and 6’2” oompaloompa size while all the time getting you to think about how your attitude rules your life and outcomes.

A frequent visitor to the MG-COA conference Chief Capitol Correspondent Tim Skubick took questions from the audience on the topic of politics. Skubick

Erich Kuhlman, John Shelton

Sam Glenn

Greg Johnson was introduced by fellow journalist Jack Berry

Tom McGee and Paul Galligan


by Eric Rule, MGCOA Government Affairs Coordinator

Blue Cross mutalization bills once again on way to Governor

Legislative Bulletin

Blue Cross Blue Shield is used to getting most of what the want when it comes to the legislative process. Transitioning from a straight non-profit insurer of last resort to a corporate non-profit mutual insur-ance company took much longer than anticipated however. After hav-ing Governor Snyder unexpectedly veto the legislation last session, the Blues were right back first thing this session. This time, the language that derailed the bill last year was not included. That language centered around the inclusion of last minute language that dealt with requiring a rider for those seeking an abortion to be covered by their insurance company.

Blue Cross executives have indi-cated that as soon as the bills are signed that the real work begins to transition the company into a mu-tual non-profit insurance company, regulated under the insurance code. Blue Cross previously was governed under its own act. It is likely to take the rest of 2013 to complete the process, and will be accomplished through cooperation with the board, management and

stakeholders to draft new bylaws and regulations.

One of the main provisions in the very lengthy and in-depth legisla-tion is the requirement that BCBS help fund the Michigan Health En-dowment Fund by making total payments of up to $1.56 billion through their annual social mis-sion over an 18 -year period. It is expected that Governor Snyder will sign the bills this time around.

ROAD FUNDING BALLOT PLAN FIZZLESThe complex plan to fund Michi-

gan’s infrastructure repairs did not get off the ground this week and because of that it is likely dead. Senate Majority Leader Richard-ville floated the plan to remove the 6-cent sales tax on gas, re-portedly worth $948 million, then voters would be asked to increase the sales tax from 6 percent to 7 percent to offset this reduction. To raise most of the $1.2 billion needed for roads, the gasoline tax would increase, either by raising the existing 19 cents per gallon or through a new tax structured as a percentage of the wholesale price.

Well, the legislature needed to act on that proposal by March 7th to get it on the ballot in May. That didn’t happen. It appears that it’s back to the drawing board for leg-islators on this issue.

LEVIN RETIRING FROM U.S. SEN-ATE IN 2014

After 36 years in the United States Senate, Carl Levin has de-cided to retire and not run for reelection again 2014. Mr. Levin is the longest serving U.S. Senator in the state’s history and his retire-ment opens the door to a long list of replacements on both sides of the aisle.

Mr. Levin began his career by ousting incumbent Senator Robert Griffin. He went on to win six con-secutive elections, many without much challenge. Before his run for Senate, Mr. Levin spent eight years on the Detroit City Council.

The list of names to replace Mr. Levin is quite long, but as of this af-ternoon, Former Secretary of State and current Congresswoman, Can-dice Miller, Former Attorney General Mike Cox, current Attorney General Bill Schuette, Clark Durant and Lieu-tenant Governor Brian Calley have all said no to the job. On the Demo-cratic side, University of Michigan Regent Mark Bernstein, Debbie Dingell a former General Motors ex-ecutive, member of the Wayne State University Board of Governors and wife of U.S. Rep. John Dingell (D-Dearborn) and U.S. Rep. Gary Peters (D-Bloomfield Township) are all said to be interested.

It’s a long way until the 2014 elec-tion, but be prepared to hear a lot about this race. It only comes up once every 36 years.

National Legislative Resource CenterAs the individ-

ual with the most at s take in the success of your business, you are attuned to how the actions and interference of gov-

ernment and regulatory groups can affect your operation, both positively and negatively.

On the NGCOA website, you can click on these headers and learn

more about the following legisla-tive issues.• Seasonal Workers / H2B Visa • HIRE Act • Disaster Relief / American Recovery & Reinvestment Act • Americans With Disabilities Act / Single Rider Golf Cars • Eminent Domain • Employee Free Choice Act / Card Check

Make your voice heard, visit www.mgcoa.org.


Legislative Bulletin

by Tom Schwark, Owner of Sycamore Hills Golf Course in Macomb and chair of the MGCOA Government Affairs Committee

Brighter days ahead for Detroit

Thank you Corporate Partners

March 11 and March 14, 2013 will be remembered as key days for the future of Detroit. Kwame Kilpatrick was indicted on 23 counts of felo-nies on March 11, and Governor Snyder appointed Kevyn Orr as emergency financial manager of Detroit on March 14. These two events will begin the long process of Detroit’s turnaround.

Many people thought that Kwame was going to be acquitted of all charges. But, thankfully, the jury in his trial thoughtfully and deliber-ately found him guilty of 23 of the 28 counts he was charged with. The fact that he was acquitted of 5 charges, but guilty of the other 23 charges showed that the jury gave thought-ful consideration to each and every charge. The fact that he was guilty of 23 charges will make it virtually im-possible for his attorney’s to appeal successfully. These convictions will begin to put an end to nearly 50 years of corruption in Detroit city govern-ment. It is one of the best things that could happen to Detroit. I would be surprised if Wayne County isn’t next in line for charges from the federal prosecutors. Robert Ficano and his gang don’t seem to be much better than the Kilpatrick administration.

Kevyn Orr seems to be a strong choice as the EFM for Detroit. He is an African American Washington D.C. attorney who presided over Chrysler’s bankruptcy in 2009, and is a Michigan law school graduate. He has strong credentials, and De-troiter’s can’t play the race card with him. He will have 18 months to turn around Detroit’s finances, and he will no doubt make a tremendous amount of progress in that time. So, this four day period has begun the end of the culture of corruption, and the beginning of financial stability for the City of Detroit. We all know

Detroit won’t turnaround overnight, but I think we will see tremendous improvement in the next decade as opposed to another decade of decay. Baltimore, Pittsburgh, and Cleveland have turned around suc-cessfully, and Detroit will too.

The improvement of Detroit bodes well for southeast Michigan. A

healthy, vibrant Detroit makes south-east Michigan a stronger region as opposed to the drain on resources that Detroit had been. Western Michigan and northern Michigan haven’t been as adversely affected by Detroit as southeast Michigan, but the improved health of Detroit will benefit the entire state.

If your company is interested in the benefits of being a Corporate Partner, contact Jada Paisley at [email protected]

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Since its first full year of operation, the MI GLC (Michigan Golf League C h a m p i o n s h i p ) h a s g ro w n exponentially. 2013 will see the 9th Annual Golf League Championship, the “Championship for Everyone,” open to league golfers in the state of Michigan who par t ic ipate in the MGCOA’s league management system. I know how hard it can be to run a golf league. You want to spend more time on the course and less time in front of a computer. Let the Michigan Golf League Championship and Golf League Network manage your golf leagues. From automatic league scheduling to player stats and standings, the MI GLC supports a large number of league formats, handicaps and scoring.

Leagues impact is measured in cash registerSpring in to Leagues

The MI GLC is for any golf league, male, female or mixed, student or senior.

As an owner or operator, you have the chance to get one or all of your

leagues involved. The price is de-signed to meet the needs of your golf course operation and to encourage the development of new leagues. You can pass the league fee on to the golfer in their league fees; this allows you to make a profit while providing an amazing loyalty product. Please take a few minutes to reacquaint yourself with migolfleague.com.

Call the MGCOA league partner Handicomp at 616-588-4356 and fol-low the road to more rounds and revenue.

Take it from these golf course owners who had enjoyed a significant return on their investment:

From Bill Fountain, The Ma-jestic Golf Course, Hartland

“Got Leagues? If you do, you fully understand how important these individuals

are to your bottom line. They play every week, eat your food, drink your drinks, buy your hats, use the range and take lessons. When you talk about loyalty, league mem-bers are at the top. Enhance your position with your most valuable players, start new leagues, com-municate via e-mail, and reward their loyalty. Join the www.migolf-gleague.com today.”

From Jeff Hoag, Scott Lake Coun-try Club, Comstock Park

“When the option to provide the league management service at one price for all of my league players became available, we analyzed the cost. $950 for the full course of-fering, 850 weekly league players 14,000 starts. We could provide this benefit for eight cents per round. It seems like a no brainer!”

From Jim Scott, league player, Gull Lake View Golf Course, Augusta

“The Golf League Network and the Golf League Championship Network are the simplest, quickest, most accurate and affordable way to man-age golf leagues. I have played in and helped manage golf leagues for over thirty years and this systems works. The golf course owner and the golf league player get up-to-date informa-tion, statistics, schedule, standings, news, pairings, handicaps, and too much more to mention.”


General Overview of Property Taxation

Guest Columnist

by Fred MawsonWhile the general laws that im-

pose property taxes are state laws, it is usually local jurisdictions (e.g., counties, townships, special taxing districts) that are responsible for assessing and collecting the taxes.

WHAT PROPERTY IS TAXABLEReal property is taxed in every

state and is generally defined to in-clude land and the improvements erected on or affixed to the land, such as buildings, structures, and fixtures. Personal property is taxed in most states and is generally de-fined as all property other than real property. Some states only tax tangible personal property, such as portable machinery or office fur-niture, while other states also tax intangible property. A lesser number of states include business inventory

as a type of taxable personal prop-erty. In addition to real and personal property, some states tax posses-sory interests, which are private interests in publicly owned lands, such as boat slips at public marinas.

WHERE PROPERTY IS TAXEDIn general, real property and posses-

sory interests are taxable in the county where they are located. Tangible per-sonal property is generally taxable where it has established “permanent situs.” If the property is moveable, de-termining permanent situs is usually dependent on a number of factors in-cluding the type of property, where the property is typically used, and the property owner’s residence.

PROPERTY TAX EXEMPTIONSWhile all states have some form of Continued on page 16

property tax, most states have laws which provide for full or partial tax exemption for certain property. Some common types of property excluded fully or partially from taxation are personal effects (e.g., household furniture, clothing) and property owned or used by non-profit organizations. Some states also offer preferential exemptions for new construction, manufactur-ing machinery and equipment, etc. to encourage economic activity.

THE ASSESSMENT PROCESSIn general, assessments are

determined annually, as of a spe-cific date (the “lien date”), which is January 1 in most states. The assessor must go through a series of steps - the assessment process


General Overview of Property Taxation- in order to be able to prepare the assessment. This process involves the assessor identifying all taxable property in the jurisdiction and ob-taining an accurate description of the property, determining the prop-erty’s legal situs, classifying the property according to type, and collecting and analyzing economic data in order to value the proper-ty. Rules for reporting information to the assessor vary - a few states do not require disclosure of real property purchase informa-tion, and some states do not currently impose a penalty for failing to report personal property.

Using the data obtained in the initial steps of the assess-ment process, the assessor will apply generally accepted meth-ods of valuation to estimate the property’s taxable value. The valuation becomes the basis for the assessment. When the assessment is complete, the assessor provides no-tification of value to property owners in a manner prescribed by law (typi-cally via U.S. mail).

In addition to the assessment process, several jurisdictions per-form property audits periodically. The audit cycle is every four years in California, but the timing varies by jurisdiction. Many states in the Eastern and Southeastern United States use third party auditors, who are very aggressive in at-tempting to collect more property taxes. It is especially important in these situations to employ local tax professionals who are familiar and experienced with the rules and pro-cedures of the auditing jurisdiction.

VALUATION ISSUESProperty tax is an ad valorem

tax, meaning it is a tax imposed on the basis of value. There are three generally accepted methods of valuation, used to estimate a property’s fair market value: the

cost approach, the comparative sales approach, and the income ap-proach. Most jurisdictions require the assessor to analyze all the available data regarding a specific property and utilize the approach most appropriate for that property.

APPROACHES TO VALUEWith the cost approach, the

value of improved real property is estimated by adding the value of the land to the estimated cost

to construct a reproduction or re-placement of the existing structure and improvements less accrued depreciation. (Note, however, that differences between reproduction and replacement cost can be sig-nificant.) The cost approach can also be used to estimate the value of personal property, whose fair market value is generally based on the property’s original cost less an annual depreciation allowance. The cost approach is the most univer-sally applied approach to value for property tax purposes; it is the pre-ferred approach when reliable sales and income data are not available.

The comparative sales approach, also called the market approach, is based on the premise that a proper-ty’s fair market value is closely and directly related to the sales prices of comparable properties. Thus, under this approach, the property being valued is compared to similar properties that have sold recently.

With the income approach , capitalization techniques are used to convert an expected future in-come stream into a present value

estimate, which would indicate the property’s current fair market val-ue. This approach is used when the property being valued is the type of property typically purchased as an income-producing investment.

DEPRECIATION AND ADJUSTMENTS FOR CHANGES IN MARKET CONDITIONS

A property’s value may change due to market factors, many of which are beyond the taxpayer’s control. There are three forms of deprecia-

tion that cause a property to lose value: physical deteriora-tion, functional obsolescence, and external obsolescence. Sometimes the depreciation is considered curable (i.e., if the cost to cure the deficiency does not outweigh the resulting ben-efit), but often the deficiency gets overlooked by the as-

sessor, especially when it involves environmental contamination. Physi-cal deterioration may result from wear and tear either from use or due to the forces of nature.

Functional obsolescence is the loss of value caused by the de-sign of the property itself. When a property’s capacity to perform its intended function declines, function-al obsolescence begins. Functional obsolescence may be attributable to such things as changes of taste in the marketplace, poor initial design, or advances in technology.

External obsolescence, also called economic obsolescence, oc-curs when adverse external factors cause a loss in value. Increased building vacancy due to economic downturns and underutilization of property caused by decreasing demand are examples of external obsolescence.

Because there are so many factors that can cause a property’s value to decrease, it is important that the as-sessor take such market factors into account in order to correctly estimate

Continued from page 15

Continued on page 17


Property TaxationContinued from page 16

the property’s fair market value. If the assessor fails to recognize losses in value due to depreciation or changes in market conditions, or if the ap-propriate approach to value is not applied, such an error provides an op-portunity for appeal. Thus, taxpayers should check the assessor’s records specifically for two things: (1) to make sure that all of the assessor’s data re-garding your property is accurate; and (2) to see how the assessor de-termined the value for your property (i.e., which approach to value was ap-plied). If you disagree with the values, you may appeal your assessment.

THE APPEALS PROCESSMost states have laws providing tax-

payers with a right to appeal should they disagree with their property tax assessments. However, the deadline for filing an appeal can vary greatly from jurisdiction to jurisdiction, and many jurisdictions have short dead-lines. Thus it is very important for you to make sure that the assessor’s records contain your correct mail-ing address. Likewise, because of the many differences between jurisdic-tions, it is important to enlist local tax professionals in order to protect your rights as a taxpayer and to help ensure that your property is being taxed correctly by that jurisdiction.

Finally, keep in mind that proper-ty taxes are the only taxes that are determined or directly affected by someone’s opinion. If that person uses faulty information or incor-rect procedures in formulating an opinion of value, that opinion will be faulty or incorrect as well.

In conclusion, Property taxes are paid on the value of the property regardless of whether a business is in a positive or negative posi-tion on its financials, and the rules regulating them can differ from one jurisdiction to the next. It is there-fore more important then ever to understand what property is tax-able and how it’s value is assessed.

“The Voice of Michigan Golf Business” Call us at 800-860-8575

Help the MGCOA with our existing initiatives in golf industry challenges in Michigan. These challenges cover a broad range of topics from water restrictions to taxation issues. These issues are real, and face us all now. If you are a member, thank you for renewing your membership for 2013. If you are not a member, we invite you to join Michigan’s golf business association.

The MGCOA was formed in order to take a strong executive position in the State of Michigan. The MGCOA not only contributes financially, but also in time, effort, administration, decision-making, and leadership.

In order to execute these goals effectively, it is important that very golf course has an ownership position. A commitment from everyone will make us all that much stronger. In return, we promise to work for the best inter-ests of golf in Michigan – taking an executive level approach to monitoring, communicating, evaluating, and fighting for issues that affect each of us.

In addition to the many benefits that membership provides to you, you will be supporting the initiatives that are so critical to the long term viability of golf in Michigan.

Very best regards,

Jeff KateJeff Hoag Kate MoorePresident - MGCOA Executive Director –[email protected] MGCOA [email protected] P.S. We believe that networking with other golf industry leaders is another great member benefit.


Volunteers –The Strength of Every Association

What coaxes an individual to join an association and then urg-es them on further to volunteer to be on a committee? Volunteerism is a vital thread of our American culture and activities and deliv-ers a range of benefits to the Association. It speaks to our very mission. With strong volunteer-ism, Associations’ improve not only the delivery of benefits and services but also the sense of af-filiation felt by our members and our volunteers.

The MGCOA has two standing committees and we recognize these individuals for their con-tribution and enthusiasm for the work or the Association.

Government Affairs CommitteeKathy Aznavorian, Fox HillsEd Clark, Sandy RidgeSalvatore Cottone, Twin LakesBill Fountain, The MajesticFrank Guastella, Franklin GolfBob Koutnik, Fox RunPatty McCarthy, Reddeman FarmsJoe Miesle, Hunters RidgeSteve Ramey, Chisholm HillsTom Schwark, Sycamore Hills (chair)Jon Scott, Gull Lake ViewJoe Tignanelli, WestwyndCurtis Wright, Copper Hills

Educational Support Foundation TrusteesFrank Agnello, WyndgateKathy Aznavorian, Fox HillsBill Fountain, The MajesticFrank Guastella, Franklin GolfToni Joers, Concord HillsKate Moore, MGCOACarolyn Olson, ElmbrookTom Schwark, Sycamore HillsCharlie Scott, Gull Lake View (chair)Brenda Velandra, Raisin Valley


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Tee-Off Times is published by the Michigan Golf Course Owners Association, editor – Kate Moore. MGCOA offices are located at 603 S. Washington, Suite 303, Lansing, MI 48933. Phone (517) 482-4312, Fax (517) 267-8984. Articles written by outside authors do not necessarily reflect the view or position of the MGCOA. MGCOA’s position on key issues will be clearly stated. Manuscripts are accepted at the approval of the editor who reserves the right to reject or edit. Appearance in the Tee-Off Times does not constitute endorsement of the advertiser, its products or services, not does Tee-Off Times make any claims or guarantees as to the accuracy or validity of the advertiser’s offer and reserves the right to reject any advertising deemed unsuitable. Advertising rates and other information available upon request.

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