RenovationPROJECT_FINAL

FINANCIAL IMPLICATIONS The Renovation Committee supports this alternative as a better investment with a lower cost ($16 million less), faster construction timetable, and a more versatile Member enjoyment design with 30,000 sq. ft. of additional space. The monthly assessment of $249 is $175 less than the $424 for a new clubhouse. Over the fifteen-year period the renovation will cost $44,820 per Member while a new clubhouse will cost $76,320. That $175 per month difference adds up to $1.25 million per year and $18.8 million over 15 years with interest, collectively for all Members. These Member dollars could be put to better use towards Frenchman’s $37 million Long Range Plan which includes: • $10 million for a new Spa and Wellness Center in fiscal ‘23/’24 • A Beach Club revitalization the following year • Renovation of two golf courses during the ten-year plan period • An assessment of $20,000 per Member is forecasted as soon as year 2023, assuming the Membership approves a new Spa and Wellness Center. Considering all of Frenchman’s future priorities, the renovation choice will give Members a better return on investment than the higher cost and higher debt service of the new clubhouse:

Key facts

Substantial Renovation 134,887 96,786 $40 million $249 $44,820 $16.8 million $37 million

New Clubhouse 104,841* 78,559 $56 million $424 $76,320 $16.8 million $37 million

Existing Clubhouse 114,889 93,077

Clubhouse square footage Sq. ft. under air Investment Monthly Payments Total cost to each homeowner Home sales revenue to banks Long Term Capital Plan

*Includes 3,000 sq. ft. for a separate cart barn.

“TEARING DOWN A CLUBHOUSE UNNECESSARILY IS A FRIVOLOUS EXPENDITURE OF AT LEAST $16,000,000”

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