Cost-benefit analysis methodology and model for publicly-owned Auckland golf courses. Final report

Author:
Jason Leung-Wai, Tim Borren, MartinJenkins
Source:
Auckland Council | MartinJenkins
Publication date:
2018

For use in the development of Auckland Council's Golf Facilities Investment Plan.

Extract from the Executive summary:

MartinJenkins has been engaged to develop an economic cost-benefit analysis (CBA) methodology and model, which can be applied to individual golf courses to assess the net benefit (or the net cost) of current land-use (status quo) as well as possible future scenarios where the land is used for other purposes, which may also include golf (enhanced-use). Undertaking a comprehensive social CBA of a residential development option, or similar, is outside the scope of this work.

This report presents the context, the methodology and the model, which has also been provided in an excel workbook. It also presents the application of the CBA model to one of the Council’s golf courses – Clarks Beach. We have also applied the model to 11 of the other publicly-owned golf courses in Auckland. These are presented in a separate report.

The intention of the work presented in this report, the accompanying Excel model and the application of the model to Clarks Beach golf course, is to support the development of the Council’s Golf Facilities Investment Plan.

Auckland Council has a significant interest in golf courses. It owns the land on which 10 golf courses operate. Of these, Auckland Council leases land to nine golf clubs and manages and operates the tenth. It also administers leases, on behalf of the Crown, to a further three golf clubs operating courses on Crown-owned land.

Auckland Council is cognisant there are potential alternative uses of the land, such as open-space or housing, that need to be considered.

To date, Auckland Council’s development of its Golf Facilities Investment Plan has been framed around maximising the positive outcomes from Council’s investment in golf through land it leases. However, preliminary work highlighted the value of taking a broader approach to its investment, which could include improving leases to provide for mixed-use of open space or consideration of alternative forms of support for golf other than leases.

The broader investment framework will enable decision-makers to balance priority outcomes and choose the investment tools most suited to achieving those outcomes. The framework will also enable Auckland Council to respond more flexibly to changes in the wider golf market and effectively access key information at a golf course-level when investment options might be considered. ...

Considered at a councillors' workshop and briefing 12 September 2018.

Last updated: 2018-09-12