OCTOBER, 2020
www.diamondheadms.org
VOL. 33, NO. 10
The president’s report: Let’s talk about DH amenities and property values By Ernie Knobloch DHPOA President
T
he focus of this article is the relationship between our amenities and property values. The amenities include the airstrip, the marina, ship store and restaurant building, two walking trails, four swimming pools, tennis courts, two golf courses, the club and restaurant, the Community Center, Twin Lakes area, various parks, ball fields, maintenance storage areas, the RV park etc. The Hancock County Assessor has explicitly stated that the amenities are worth approximately $20 million to our community. The POA has the fiduciary responsibility to maintain the amenities at the level in which the amenities were turned over to the POA from the Purcell Corp. The Assessor has also stated that, if amenities start to close, then property values will decrease. The amount of decrease will be
determined by market forces. What needs to be considered is what has happened in other communities where amenities have closed. Research shows that there is much information about what happens when a golf course closes. Because Diamondhead is unique with all the amenities that it offers, there is not data readily available about what happens to market values when all amenities such as we have close. The research shows that property values decrease between 15-35% when a golf course closes. In fact, The Wall Street Journal reported that when a golf course closes, the value of homes in an associated subdivision typically drop 25%but may decline 40-50 percent if a legal battle ensues. Based on that, one might assume that if our other amenities, in addition to the golf courses, would close that the property value decrease could be even more.
SEE REPORT, PAGE 4
The Country Club terrace now offers outdoor dining with the addition of the new patio furniture.
DEADLINE FOR THE NOVEMBER ISSUE OF DHNEWS IS OCTOBER 10