The Chairman's Page
An interview with Bobby Ginn, Chairman & CEO of Ginn Resorts.
By Edward F. Pazdur, Chairman
It was refreshing to talk with Bobby Ginn. Faced with a slumping housing market, he's upbeat, busy, and not panicking. He sees it as an opportunity, not a setback.
"Not only are we moving forward," said Ginn, "but we've taken advantage of this downturn to get better labor, better prices, and more material. It gives us the time we need to catch up on some of the projects we already have in development."
| |
Bobby Ginn, Chairman
& CEO of Ginn Resorts |
Palm Coast, Florida: With the worst housing slump in over 16 years, it was invigorating to talk with Bobby Ginn, Chairman & CEO of Ginn Resorts, the world's largest residential golf community developer, headquartered in Palm Coast, Florida. With the real estate industry collapsing all over the country, Ginn is optimistic and views the current slump as an opportunity. He's upbeat and as busy as ever. No panic.
"Sure," says Ginn, "times have changed dramatically in recent months. The economy and competitive landscape have made the luxury real estate market more challenging than ever. As a result, we have been analyzing all aspects of our sales and marketing efforts to ensure that we remain healthy and viable.
"I don't sit around the office all day and worry about how bad the housing business is," stated Ginn. "I pay very little attention to it. Hell, I don't even read the newspapers as much anymore. Our sales," he said, "have been bad, but,"....I interrupted and jokingly asked: "Why am I not surprised to hear you say that?"
"Well, Ed, its not like we're not selling anything," replied Ginn. "We're selling a lot of real estate. But, as a company we're taking advantage of this time to just catch up on some of the projects we already have in development.
"Not only are we moving forward, we've taken advantage of being able to get better labor, better prices and more materials," said Ginn. "This is a good time to get our entitlements out of the way for projects in Colorado, the Bahamas and North Carolina.
Bobby enjoying the inaugural LPGA Ginn Open in 2006. |
|
"We are opening more facilities every day. For example," said Ginn, "we gutted and rebuilt five of our clubhouses, ranging from 80,000 to 100,000 square feet, at Bella Collina, Tesoro, Quail West, Cobblestone and Hammock Beach. We're now in the process of putting finishing touches on all of them. They are beautiful.
"We're taking advantage of this slowdown to get caught up and take care of our members. And, you know, we're continuing to sell what little bit of real estate we have left in those projects," said Ginn.
Don't React To Newspapers. Hold The Line
"What do you recommend a potential buyer or a current homesite owner do at this time? Right now, a buyer is thinking if he waits a few months, he'll save 20,000 bucks. What do you say to somebody like that?"
"For those homesite owners and potential buyers in the high-end market, I would advise they hold the line! My best advice is the same advice that our company is operating under," suggested Ginn. "Don't react to newspaper stories and trends. The same number of baby boomers exists today as a year ago. For the most part," said Ginn, "their careers are made, their money is made, interest rates have come down, inflation is not a factor, entitlements are not going to get easier to get, and scarcity is going to continue."
"Are you," I asked, "bullish on America?"
"Yes. I'm very bullish on America. It will grow about 100 million people by 2045. You'll have more young people coming into the real estate market. Our current baby boomer market will peak around 2017-20. So, we're not even close to the peak yet. We're still growing," explained Bobby.
"For years, developers have been going about the process wrong," said Ginn. "They would buy land then borrow against the value of the land to finance construction costs. But if the money ran out, they usually had nowhere to turn for additional financing," said Bobby, when he recently addressed an audience attending the H.E. Boyles Distinguished CEO Lecture Series at Appalachian State University in Boone, North Carolina.
"Early in the '90s," said Bobby, "I took two years off to write a business plan. I talked with friends, bankers, and contractors about land development. It was one of the most interesting things I have ever done." Since then, Bobby has changed the way his investors look at development projects. "We now start projects by asking where do we want to be, what do we want to be, what is our vision, and what is our product," said Bobby. "The last thing we worry about is where the piece of land is that we are going to build on."
| |
Bobby hard at work at his international headquarters in Palm Coast, Florida. |
The change in focus has resulted in the quality brand associated with The Ginn Company and their resort and private club communities in Colorado, North Carolina, South Carolina, Florida, Georgia, and the Caribbean.
"Today, our capital comes from Wall Street," said Bobby. "Our investors are the college endowments at Harvard, Yale, William and Mary, and the blue chip companies that would never ever have been in the land development business 10 years ago," he continued. "Our company is building icons."
He has developed a loyal following of customers by focusing on quality construction and customer service. "Many of our customers follow us from community to community.
"If you want a real marketing plan, get customers who buy from you and want to buy from you again. They will tell you what you're doing wrong and what you're doing right," advised Ginn.
Bobby is one of the most successful and creative developers in the world with over 30,000 acres currently either in planning stages or under construction.
The Jack Welch Creed
Jack Welch, former General Electric tycoon, once said, to be a strong business leader, no matter the industry, you had to create your vision, effectively articulate your vision, passionately own it, and relentlessly drive it to completion!
Easy for you to say, Mr. Welch.
But, Welch's logical inference can be applied to Bobby Ginn. Let's start with Welch's first credo: Create your vision.
I believe Bobby's vision of Ginn Resorts exploded within him out of frustration when, as a young man in his 20s, he exuberantly took his family to Disney World in Florida. "We did what most Americans did at that point in time," recalled Bobby. "We packed our kids into the station wagon and drove from South Carolina to Disney World in Orlando. We were excited and looked forward to a grand vacation."
 |
 |
“Bobby Ginn’s company is the first one, in my experience, that has delivered more than it promised.”
— John O’Brien, Retired CEO, The New York Times
|
|
|
Anger And Futility
Unfortunately-and perhaps fortunately-instead of a grand vacation, it turned into a grand frustration!
"Once we got there," said Bobby, "the best accommodation we could get was to pack five of us into a small room. There were no services other than room service. No supervised playgrounds for children. No places for parents to be entertained without their children. There had to be a better way," bristled Bobby, "to have a vacation without turning it into a ten-hour day with your 5-year-old."
That futility led to a vision of creating a company that would build full service, high-end private clubs with world-class resort amenities-for families. His rationale for launching such an enterprise next to Disney World was neither coincidental nor surprising.
“I don’t sit around the office all day and worry about how bad the housing business is. I don’t even read the newspapers as much anymore. I urge every homesite and home buyer to hold the line.” — Bobby Ginn
|
"I started thinking," said Bobby, "that Orlando, with over 50 million tourists annually, has got to be one of the greatest places in the world to launch a high-end private club-particularly with world-class resort amenities."
He was right. And he did. But it took time. Like Welch's next three credos, Bobby effectively articulated his vision, passionately owned it, and relentlessly drove it to completion.
On March 26, 2004, Bobby launched his Ginn Reunion Resort, a 2,300-acre, gated residential resort community located just 15 minutes from Disney World. Also nearby was a huge complex of mega entertainment sites.
Ginn Reunion is paradise for golfing parents.
It features three Signature Courses (Palmer, Nicklaus and Watson), Annika Sorenstam's Academy, luxurious multi-room villas and homes, concierge service, a rooftop restaurant and bar overlooking the golf courses, picnic areas, a spa, a fitness center, and a huge multi-level water park with a collection of pools, slides, splash areas and water features.
|
 |
“I had a vision of ANNIKA’s Academy at Reunion Resort and Bobby developed it perfectly.... It’s a dream come true and a chance to give back to the game I love.”
— Annika Sorenstam
|
|
|
|
 |
“Bobby recognizes the value a quality golf facility brings to a community. Anytime a developer is interested in the game, the end result is usually better.”
— Jack Nicklaus
|
|
|
|
 |
“Working with Bobby Ginn is always a truly enjoyable experience. He gives us the best land locations and the latitude to shape a great course.”
— Arnold Palmer
|
|
|
|
 |
“It has been a great pleasure working with Bobby Ginn and his development team. Bobby is able to make his vision
a reality in a really first-class way.”
— Tom Watson
|
|
|
|
 |
“Bobby Ginn is, indeed, an inspirational figure and has quickly established himself as one of the finest residential/ resort developers in North America.”
—Nick Faldo
|
|
|
790 Homesites Sold In One Day
In 1969, at 20, Bobby sold his first house for $7,500. In 2004, he sold a record 790 homesites at Reunion in just one day! Ginn Resorts has grown into a conglomeration of twelve preeminent communities with sales of over $1 billion in 2005.
Saturday, April 23, 2005 was another monumental day. It was the second of two Priority Reservation Selection events for Bella Collina, a private, very pricey residential golf community in Montverde, Florida, just minutes north of Orlando.
The achievement at Bella Collina was a Florida real estate record of 403 homesite sales for $320 million in less than six hours.
“Don’t react to newspaper stories. The same number of baby boomers exists today as a year ago. For the most part their careers and money is made, interest rates are down, inflation is not a factor, and scarcity is going to continue. I’m bullish on America.” — Bobby Ginn
|
The Reunion Resort also hosts an annual LPGA Ginn Open with a $2.5 million purse televised by CBS-TV and the Golf Channel. It delivers a worldwide audience and provides a major economic boost to Orlando and Osceola County.
This sudden marketing flush enlivens Paul Owen, a current member of the Osceola County Board of Commissioners and former Chairman of the Board.
“Late one Saturday night, I had a few minutes to myself and I looked up at the Reunion Grande [pictured above], lit against the black sky. I’m not ashamed to say a tear came to my eye,” said Bobby. “I thought my dream really came true.”
|
|
"Bobby's project has given a tremendous boost to our County's tax base," said Owen. "It's a pleasure to work with him because he's never asked the Board for anything that was not in the best interest of the County. He's created an atmosphere that encouraged other developers to come in with high-end, upscale developments. He raised the bar and increased property values; we're very grateful to him. Osceola now receives annual taxes in the upper millions of dollars," glowed Owen.
A Special and Tearful Moment
It was a late, balmy and warm Saturday night with twinkling stars in a dark sky hovering over Reunion Resort, the site of Bobby's second LPGA Ginn Open and Grand Opening day of Annika's Academy, on April 14, 2007.
The soothing silence in the middle of the resort's darkened fairways was a sharp contrast to the day's earlier noisy scramble of cars, carts, SUVs and harried crowds.
"Late that night," said Bobby, "I had a few minutes to myself and looked up at the Reunion Grande lit against the black sky." He paused. "It was stunning," he said with growing emotion. "I'm not ashamed to say that a tear came to my eye."
Then referring to his vision decades ago, he sighed, almost in disbelief: "Boy, it really did happen!"
Bobby's Most Ambitious Project: Ginn sur Mer
The biggest project on the Grand Bahama Island, just 55 miles due east of Palm Beach, Florida, is Ginn sur Mer resort estimated at a cost of $5 billion. Development began in December of 2005. When finished, it will be modeled after the Palace of Versailles, will be 10 miles long, occupy 2,000 acres, and encompass 4,400 condos and hotel units centered around a 20-story tower.
Additionally, there will be 1,800 single family residential homesites, waterfront bungalows, private boat slips, two golf courses, two clubhouses, a private airport with Customs facilities, a Monte Carlo-style-casino, swim pavilions and a beach club.
Ginn sur Mer at Tesoro, a $4.5 million classic, was Bobby's inaugural PGA Tour event last October, televised by the Golf Channel all four days.
When asked about his dynamic career in developments, he said: "Looking back over 37 years, I have never awaken in the morning and dreaded going to work."
| Ginn sur Mer Renderings |
View Marina Hotel |
Bar Pool |
Bahamas Houses Canal |
Prices, plans, artist's renderings, photos, land uses, dimensions, specifications, improvements, materials, amenities and availability are subject to change without notice.
For additional information write Ginn Resorts, Hammock Beach Discovery Center, 1 Hammock Beach Parkway, Palm Coast, Florida 32137; phone 866-Ginn-Club; or visit ginnresorts.com. To contact Edward Pazdur, email him at: edward@executivegolfermagazine.com.
|
