Final Booklet V1

CLUBHOUSE PROJECT NOTES

CLUBHOUSE PROJECT NOTES

PRE-OPENING EXPENSES EXPECTED TO BE OFFSET BY COST SAVINGS DURING CONSTRUCTION: During the construction period (for either project) there will be cost savings associated with not operating the clubhouse. After reviewing all clubhouse specific costs, management has estimated that these savings should be at least $500,000/year or about $41,667/month. With the average expected construction period for the Renovation being 18 months and the average for the New Clubhouse being 22 months, this could result in savings of between $750,000 and $917,000, which will be placed in a reserve to be used for required pre-opening expenses. Management has done a top to bottom analysis of what will be needed once the clubhouse is reopened (for both projects) and feels that this reserve, when combined with storing and reusing some back of the house items, will be sufficient to assure Members that the Clubhouse will feel elegant and new when we are able to be back in our beautiful New or Renovated Clubhouse. EFFECTS ON OPERATING EXPENSES THAT ARE EXPECTED TO BE THE SAME FOR BOTH PROJECTS: In the first two years after we are back in the Clubhouse, management expects that there will be higher operating expenses for both projects associated with a) retraining staff and b) more Member usage due to excitement around the completed project. Offsetting some of these early higher expenses should be lower energy bills, due to more efficient systems and lighting, and lower maintenance expenses as our building will either be entirely new or substantially renovated. FACTORS THAT SHOULD RESULT IN LOWER OPERATING EXPENSES FOR THE NEW CLUBHOUSE: TThe Oversight Committee has had detailed conversations with Management about their views on four areas where potential incremental operating savings could be achieved in a New Clubhouse. The largest of the four buckets, and the one where Management is most comfortable, is from kitchen and dining labor savings due to the stacked locations and shared kitchens of the two

casual dining restaurants in the New Clubhouse. The Oversight Committee believes that there could also be potential savings from three additional buckets, though Management is less comfortable putting a dollar number on these and the dollars saved may be small. The three additional areas are 1) reduced electricity due to the New Clubhouse having 18% less air-conditioned space, 2) lower housekeeping expenses, again due to the differences in the two projects’ square footage and 3) lower maintenance expenses over the long run, given the Substantial Renovation plan does not include renovating the POA or parts of the Back of the House. A portion of these savings may be offset by the relocation of the workshop to the maintenance area. While it is difficult to supply a specific number, our conclusion was that, through a combination of operations, utilities and maintenance cost reductions, there are real potential savings with a New Clubhouse that could be used to reduce future Club operating expenses. SITE PLAN The site plan for both projects realigns the parking areas and resolves a number of drainage issues around the building. The plan calls for adding 87 golf cart and vehicular parking spaces for the New project and 127 golf cart and vehicular spaces for the Renovation. This will take cars off of Tournament Drive. We are adding 2 pickle ball courts to our racquet complex bringing the total to 8 from 6. There will be an initial reduction of tennis courts in both plans from 14 to 10 to accommodate the new parking requirements. Depending on what happens with a proposed expansion of our Spa and Fitness Center, three of them could be rebuilt or permantly lost. We would recommend a study be done of where new tennis courts could be developed if and when the Spa and Fitness expansion is advanced. Additional drainage issues that will be addressed are resloping the grade away from the building, eliminating landscape yard drains, installing new drainage system on the East side of the building next to the tennis courts, improving the drainage in the loading dock (Renovation plan), redoing the putting green adjacent to the 19th hole as a parking area and lowering the grade below the building (Renovation plan).

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