Land dispute stands in the way of Tepetonka; the first course constructed in Minnesota in 17 years

The fate of Tepetonka, a $21 million country club project northwest of Willmar MN, is to be decided by end of March as Thorson family feuds over trust language.

Tepetonka Club would mark the first truly new 18 hole championship golf club constructed in Minnesota in over 17 years. Gravel Pit, a par three course located outside of Brainerd MN opened in 2022 and marked one of the first truly new builds in some time. Cragun’s Legacy course in Brainerd and Royal Club in Lake Elmo marked major redesigns in recent years but did not constitute brand new construction.

The Thorson family trust sits as an obstacle to the project, as it stipulates that farmland must be sold intrafamily. The current argument is the land being sold, predominately on highly sandy soil, in a dune scape and within a marsh, has not been farmed in many years making it available for sale to an outside party.

The fate of the club is important, but it more importantly marks a shift in the golf industry. Most of the new builds have happened in two climates: private clubs and large resorts. The ability to easily recoup funds with initiation fees and membership dues or stay and play costs with higher greens fees due to lack of surrounding competition makes both models more advantageous for investors.

Tepetonka Club boasts an initiation fee of $100,000 and a $25,000 annual membership cost. This is in contrast to clubs that vary rates for in area and national memberships, have food and beverage minimums and may have pass through costs. Initially, Tepetonka Club planned to divide membership 65-35 national v in-state but has changed those estimates to 80-20. To accommodate a mostly traveling membership, the club plans to build accommodations consisting of 40 “apartments”.

OCM – Ogilvy Cocking Mead – have been hired to design the course that has up to 280+ acres of land at its disposal. This land will encompass three distinct areas including, dunes and sand, swaths of trees and a marshland. Breakdown of the costs of the club go as follows:

·       $7.5 million for golf course construction

·       $7 million for construction and related expenses for roughly 40 lodging rooms

·       $1.6 million for the clubhouse and surrounding area

·       $1.2 million to acquire the roughly 190 acres

·       $900,000 in design fees.

The course is slotted for at 2024 opening but with lands’ rights under question, the project has the possibility to become a reality or fall into obscurity.