BATON ROUGE — The Municipal Police Employees’ Retirement System survived a tough year, despite bad investments in two northwest Louisiana golf courses and a golf-related housing development that are a drain on the system, an audit of the system shows.
Both courses “have the unfortunate history of never making money,” MPERS Attorney Randy Roche said. “I wouldn’t say golf was a great investment at this time.”
In June 2000, the MPERS board of directors agreed to purchase for almost $6.8 million the almost-completed Olde Oaks Golf Club in Haughton and made an additional $4.2 million in improvements, an audit of the retirement system shows. Investments by June 30, 2012, totaled $10.95 million.
A June 30 appraisal set the value at $1.85 million, the audit by Duplantier, Hrapmann, Hogan & Maher, of New Orleans says.
Three years later, MPERS purchased the Golf Club at StoneBridge in Bossier City, at a sheriff’s sale because the previous owners let the property go into bankruptcy, Roche said.
MPERS paid $2.9 million for StoneBridge and then made $1.83 million in improvements. The audit shows the total investment was $4.735 million.
A June 30 appraisal set its worth at $1.35 million but shows its market value is $1.18 million.
The audit showed Ole Oaks’ net loss for fiscal year 2011-’12 operating losses totaled $377,694. Stonebridge has a net operating loss of $481,383.
Also in 2003, MPERS purchased for $5.932 million almost 300 acres of land around Olde Oaks Golf Club, split between a section of undivided land and 75 lots for housing. The property was marketed under the name Olde Oaks Development, LLC.
Records show that one lot sold last year for $23,040 but with depreciation, maintenance costs, taxes, management fees and numerous other assessments on the property, the net loss was 1.23 million.
See here the 6/30/2012 audit.