Durban - The Beachwood Country Club and golf course looks set to go on sale following the expected veto of a property development plan aimed at rescuing the debt-plagued Durban Country Club (which owns Beachwood).
Durban Country Club chairman Richard Pemberton said on Sunday that the stated intention to appeal by some of his members against the approved rezoning to build upmarket homes on the Beachwood site had forced the decision to put the seaside course on the market. The deadline for the appeal is this Thursday.
In 2012, the Beachwood course was put forward as collateral for a R45 million rescue package raised by 10 Durban Country Club members who then became the DCC Trust.
However, Durban Country Club members and Durban North residents Hugh Crichton and Barry Reardon - who are against the 2.4ha development - said they were being "unfairly" blamed for the potential sale, which they said was down to "irresponsible management" of the Durban Country Club.
At a recent meeting, Pemberton said Crichton had advised the board "unequivocally" that he would appeal against the rezoning approval.
"We understand the appeal process could take up to a year," said Pemberton.
Both Reardon and Crichton said it was "premature" to disclose their reasons for opposing the development and were not categorical about their intention to appeal.
"It's on my mind. I will decide this week what I am going to do," said Crichton, while Reardon said the appeal "might" go ahead.
Pemberton said a financial solution to recapitalise the club was necessary if it was to keep its doors open beyond December.
"Given our contractual relationship with the DCC Trust, our poor financial position and the unsustainability of two golf courses, we do not have the time to see out the appeal, which we confidently believe we could win. Most importantly, the board will in all probability not be able to sign off its accounts as a going concern at the end of the current financial year (on December 31)."
The club owes the trust about R37 million, with interest on the loan and settlement of capital due by March 2017.
Pemberton said the employment of a new manager at the Durban Country Club and a strategy to turn the operation around had been successful.
"Our membership has grown. The club is able to wash its own face now, but we have to settle the debt. If the development at Beachwood went ahead we would have an income from the property leases - that would mean a sustainable future for the club."
He said at least two hotel groups had expressed interest in building a boutique hotel at Beachwood.
"The beauty of that is we would still be able to use the course and the existing clubhouse facility. However, we would have to get further rezoning approval for such a plan."
Pemberton said the development would also "dovetail beautifully" with plans by the eThekwini Municipality to develop the Virginia Airport site.
A decision was approved in 2014 to move the small aircraft facility to Scottburgh by next year.
Crichton said he had offered alternative solutions to the planned development.
"They should rather commercialise DCC, then we could save the Beachwood course and keep its ethos alive."
Pemberton said this option was found to be impractical, unlikely to meet acceptance from members and was not possible in the time allowed.
A Durban Country Club members' meeting is scheduled for 6pm on August 18.