Legal Eye: The business of golf

At last count, the number of golf courses and driving ranges in Poland exceeded 30, with at least eight more slated to open in the next few years. In comparison, 15 years ago the number of golf courses was less than five. The majority of these are "mini" courses, with just nine holes, while 12 are full-length, 18-hole courses. Most are private, but almost all permit non-members to play in exchange for payment of a "green" fee, the amount of which can exceed zł.300 per game.

Despite the relatively short season for golf, the business is becoming more profitable as more Poles take up the game. Annual membership fees can exceed zł.6,000, or zł.11,000 per family. Add in green fees, club house sales and tournament events, not to mention in some cases hotel revenues, and the return on an investment can add up.

By far the largest cost in developing a course is the price of the land itself, while construction costs are relatively low. Let's take a look at exactly what is required, from a legal point of view, to develop a golf course in Poland.

Zoning

Most local master zoning plans, if in fact they exist, almost never designate an area for golf course development. The thought simply hasn't crossed the minds of most local officials. Although this is beginning to change, an investor wishing to develop a golf course will almost always have to submit a proposal to the local authorities to adopt a local master plan or issue an outline-planning decision to permit the development of a golf course.

The majority of undeveloped land in Poland is, by default, zoned for agricultural or forestry use. In addition to adopting a local master plan (or an outline-planning decision), the land intended for development will therefore need to be reclassified by the agricultural authorities in order to permit the development of a golf course.

Depending on the quality of the land, the developer will need to pay an annual fee to the agricultural authorities for 10 years in order to take the land out of agricultural use. In most cases, an environmental impact study will also need to be conducted for the planned development. If and only if the impact study is positive will an investor be able to apply for an actual building permit.

Building permit

Construction of a golf course is not subject to the issuance of a building permit, per se, due to the formal interpretation that a golf course is nothing more than a field. Contouring and grading the land does not in and of itself require any permission.

The installation of an irrigation system to water the grass, however, does require issuance of a building permit, as does construction of a club house or any other infrastructure. The installation of artificial lakes, the alteration of the route of any natural water flow or the creation of water run-off will, in addition to issuance of a building permit, require issuance of a separate water permit as well.

Men only?

Private, member-only clubs are permitted in Poland. In practice, however, all golf courses in Poland permit non-members to play their courses in exchange for payment of a green fee. As far as I am aware, all member-only courses in Poland permit both men and women to join.

In addition to monetary reasons not to discriminate, the Polish Constitution specifically provides that "men and women shall have equal rights in family, political, social and economic life…" EU law additionally prevents discrimination based upon race.

My wish list…

My in-laws live in a small village outside of Konin. It sure would make my monthly pilgrimage to this village less excruciating if someone would develop a golf course in the area. The nearest one is more than an hour away, in Poznań.

In other words, would someone please build a golf course in Konin? I will happily pay a premium, if for no other reason than to have an excuse to disappear for a few hours during our seemingly interminable visits.

Paul Fogo is a senior attorney with Miller Canfield