Developer: No funding sources for golf course
O.B. officials review options for long-sought municipal golf club
BY JESSICA SMITH Staff Writer

OLD BRIDGE - The current economic climate will not allow for the privately funded municipal golf course that township officials have sought for the past few years.

That's according to the township's chosen developer of the golf club, which has been slated for 200 township-owned acres at Amboy and Lambertson roads. The project is up in the air until township officials decide a course of action.

"We know that you have been frustrated by the lack of progress and the lack of regular communication about this project," the managers of Far Hills Capital LLC told town officials in an April 26 letter. "Our affection for this location, this design, the Old Bridge officials with whom we have had the pleasure to work, and your community, is sincere. However, it would not be productive to pursue this effort any longer without a dramatic overhaul in the scope of the plan and the financial structure."

Steve Lapper, Peter Zurkow, David O' Connell and Kelly Blake Moran, the four managing partners of Far Hills, explained in the letter that private funding sources have ceased to be an option because of the significant losses suffered by major financial institutions.More specifically, lending for new golf course construction has dwindled drastically. With existing courses becoming available for sale through foreclosures, the prospect of obtaining loans for the project becomes even less plausible, the letter stated.

"As a result, and we know this comes as no surprise, we believe the private development of the Old Bridge Golf Club project is not feasible now, or in the near future. Nor can we project what overhaul, if any, in financing and project terms might make the project attractive for private investment," they wrote. "At a glance, only some form of public financing or guarantee would likely produce a meaningful restart of the project."

The township began working with Far Hills in 2005 to create a public/private agreement that would bring an 18-hole golf course to town without impacting taxpayers. Green Acres funding largely covered the town's cost of purchasing the land, which was once the Rose and Lambertson farms, and was designated for redevelopment.

In November 2006, the township received approval from the State House Commission to grant Far Hills a 50-year lease, which was sought in order to help the developer secure funding. Though the State House Commission approved the move, the DEP requested a financial plan from the developers before making a final decision, Township Attorney Jerome Convery said.

Far Hills was unable to deliver.

"That's a function of the financial marketplace, and has zero to do with anything we've done," a spokesperson for the golf course partners said. "We want Old Bridge to eventually get a golf course, and we're not standing in the way."

After Councilwoman Lucille Panos asked for an update on the project at the Township Council's April 28 meeting, officials discussed drafting a resolution to eliminate Far Hills from the project. At that time, officials said they had not yet received word from the developer.

A subsequent executive session meeting of township officials yielded a decision to allow Convery time to look into the legal aspects of such a move, as well as to allow township Director of Parks and Recreation Tom Badcock to explore options for the project, according to Mayor Jim Phillips.

Badcock lauded Far Hills in the past, saying the partnership is comprised of top experts in the golf world. While he indicated that he would have liked to see the project move forward under their auspices, Badcock now must explore whether it would be more prudent to hang onto Far Hills for the project and wait for better market conditions, or sever ties and move on.

While Badcock and Councilman Pat Gillespie both said they understand the developer's predicament, they expressed disappointment at not being informed about it sooner.

According to Council President Edward Testino, officials should reach a decision within a couple of weeks, though nothing is set in stone.

"It didn't appear that [Far Hills] was willing or able to move ahead at this point," Testino said. "We're waiting for the professionals to tell us what's up."

Though Far Hills made it clear that private financing was not going to be available for an unforeseen period of time, Lapper said public financing would allow them to move forward on the project.

Phillips said the township wants a golf course that would be constructed and managed by a private partner, with user fees paying for the facility. He likened the situation to the town's YMCA, which is under construction at Mannino Park. The township provided the land, and the facility will come at no cost to taxpayers, instead gleaning funding only from those who use the facility.

"If they're looking for some sort of financial guarantee from the township, it's not going to happen," Phillips said. "Old Bridge cannot be in the business of building and managing a golf course."