Golf: Carmel Highland Golf Course in Rancho Penasquitos to close

Story updated July 11, 9 a.m. to reflect there is no possibility of the golf-course land becoming a shopping center, according to the Laurus Corporation.

By Michael Bower

The Carmel Highland Golf Course adjacent to the DoubleTree Resort and Spa will be closing within the next six to 12 months and the some 113 acres of land it occupies will be put to use in another way, according to its owners.

The 6,428-yard, 18-hole course in Rancho Penasquitos has been around for over 50 years, but the Laurus Corporation, which purchased the property in 2011 and also is invested in the DoubleTree Resort and Spa, says the course is losing in excess of $500,000 a year and it would take nearly $5 million to bring the irrigation system and other things up to date.

“The capital improvements that are required are so significant that a decision had to be made,” said Maureen Cohen, vice president of development for the Laurus Corporation, whose primary business is purchasing and renovating hotels.

Over the past five years, rounds of golf and revenues at the course have dropped between 40 and 50 percent, according to a press release from the Laurus Corporation. As a result of the decrease in demand for golf, it would be hard for the company to make a profit even if the improvements were made.

“It is something where there has been a decline in the golfing community and not just in the immediate area, but in general,” Cohen said. “...We realize it is not financially stable.”

The rising cost of water and the drought is another big reason for the closure. The Escondido Country Club succumbed to the issue last April and San Luis Rey Downs golf course is slated to close in August.

Howard Fujimoto, general manager of the Carmel Highland Golf Course, said the closure of the course has been rumored for quite some time so it did not come as a surprise.

“You are looking at a million or millions of dollars to put in a new standardized irrigation system,” Fujimoto said. “The irrigation system here needs to be updated and there are quite a few other things the golf course has not had.”

Those other things include replenishing golf carts with a new cart fleet, tee box renovations, replacing cart paths, renovating the bunkers and pro shop renovations.

What to do with the land once the golf course closes is a big issue to the surrounding homeowners and the community. The Laurus Corporation has partnered with Lewis Operation Corporation — whose main business is to develop planned communities, apartment complexes and retail developments — to look into how to best repurpose or develop the land.

Cohen said they have no definitive plans at the moment, but there is a possibility of new homes or apartments. She stressed that the Laurus Corporation wants to bring value to the golf-course land because it is invested in the DoubleTree Resort and Spa that surrounds it.

“I see myself on the same side as the homeowners,” Cohen said. “Anything that happens on that piece of land will directly impact the value of the hotel that I am responsible for.”

“The property and homeowners around it are important to us,” she added. “Whatever it transitions into it will be something of value. We are looking at all the options and we want something that would be compatible in the community.”

The Laurus Corporation listed the following goals for what it hopes the eventual land use achieves:

• Complements the hotel and restaurant operations.

• Maximizes the use of the on-site recreational and spa facilities.

• Embraces and takes advantage of the property’s topography and freeway-close location.

• Complements the character of the Rancho Penasquitos community, provides the community with key benefits, and draws the community back to the hotel.

• Responds to the changing demographics of the Carmel Valley/4S Ranch/Del Sur communities and adds a new resort hotel consumer base.

• Achieves a strong return on investment.

A community group, which will include Rancho Penasquitos Planning Board members and members of the community, will be formed to help discuss the options for use of the land with the Laurus Corporation and Lewis Operation Corporation.

“We will be working over the next 12 months with the community group,” Cohen said. “Once we get through that process, then there will be a solution that will be a good investment for all of us.”

In the meantime, Cohen said they are putting together a close-down plan for the golf course. She said they will be planning a special event at the course to welcome those that have played on it for a number of years.

Cohen said the Laurus Corporation will be spending $10-12 million for upgrades to the DoubleTree Resort and Spa beginning in September. Upgrades will be done to the pool deck, guest rooms, food, landscaping and other things. The fitness center and tennis courts are not in those specific upgrade plans. But there are plans in the works to eventually upgrade the fitness center.