Members of a leading golf club in Cork have voted to accept an offer from a property developer which will see the club exchange its existing course for two new courses in a deal which will cost the developer €171 million.
About 450 members of Douglas Golf Club held an extraordinary general meeting last night to vote on the offer from Mallow-based Castlelands Construction to acquire the 116- acre course in a cash-plus-land- swap deal.
Under club rules, over two-thirds of the voting membership had to support the move. Following two hours of debate, club members backed the proposal by a majority of approximately eight to one. Last night's meeting began with a presentation by Castlelands Construction. The company's managing director, John Barry, assured members that the firm would deliver on its side of the deal.
The club has been in existence since 1909. It has been based at its existing course at Maryborough Hill since the 1960s.
Under the terms of the offer, Castlelands Construction will pay Douglas Golf Club €68 million to acquire the existing 18-hole course and will also pay the club €50 million in cash.
The deal will involve Castlelands providing Douglas with a replacement golfing facility on a 421-acre site just over a mile away at Carr's Hill on the Carrigaline Road at a cost of €46 million.
The replacement facility will incorporate an 18-hole parkland course, an 18-hole heathland course, and a nine-hole par three course. There will also be a clubhouse and putting and chipping greens.
The offer involves Castlelands paying a non-refundable option of €5 million to Douglas Golf Club which would give the company three years to get the necessary mixed use residential zoning for the existing golf club and sports zoning for the new lands.
Castlelands also has the option to pay a further €2 million to Douglas Golf Club in return for an additional two years to get the necessary zoning.
Under the terms of the deal, Castlelands would pay the €50 million cash consideration to Douglas Golf Club on the handover of the new facilities at Carr's Hill which the company would expect to have completed by the spring of 2012.
However, the €50 million cash consideration will not be paid out to members of the club as it would mean the club losing its amateur sporting club status and becoming liable for a major tax bill.
The proposal is dependent on Castlelands succeeding in having the existing course rezoned for mixed use residential development in the 2009 Cork County Development Plan.