Frequently Asked Questions for the New Membership Programs

Transcription

1 Memberships Registered to a Home 1. Why are you registering a membership to a home? What value does it have to the Club and membership? Registering a membership to a home is a key element to the success of all of our programs, current and recently presented. It benefits us the following ways: Retention helps retain members by allowing them the ability for buyers of their home to become members. Sales helps home buyers considering IRCC to be those who may seriously consider membership. Golf Members since we no longer sell Social memberships (after March 1, 2014) and offer only Golf memberships to buyers of homes without a membership, IRCC will more commonly be known by real estate agents as a community where Golf Members are a focus. Incentives this will provide a benefit to existing homeowners to join the Club and have their future homebuyer have the ability to become a member too. 2. What does a membership registered to a home mean? Beginning November 15, 2013, Indian Ridge Country Club will register current IRCC memberships to the Indian Ridge address of members. Until October 1, 2015, any current or new homeowner without an IRCC membership can apply to join the Club through the process currently in place. Note: after October 1, 2015, only buyers of member s homes have the option to become members. Exception: if a homeowner, who is not a member, has a buyer that wishes to become a Golf Member, and there are golf memberships available (current limit is 575 golf members), the Board can approve that homeowner for golf membership with submission of proper application and approval process. 3. Does the Club have a legal opinion stating that the Club has the right to take the actions it is taking with these new programs? The Board has discussed these programs thoroughly with our Club attorney and he advises us that we are clearly within our rights to take the actions we are taking. 4. Are my rights as a Charter Equity member changed by these new programs? No. You still have the ability to resign your membership at any time, stop paying dues and put your name on the Sell List and await your redemption for your membership following its sale. You still have the right to transfer your membership with the sale of your home, however you 1

2 do still need to be a member in good standing to do so. You still have the right to reinstate your membership by paying all back dues, fees and assessments to the date of your resignation. 5. Why does it benefit me to have a membership if I am choosing to sell my home? We encourage all homeowners to have a membership so when you choose to sell your home your buyer will have the option to be a member of Indian Ridge Country Club. 6. Are my rights as a Subsequent Equity member who has signed the 5 year, 50% equity redemption agreement changed? No. If you have signed the 5 year, 50% equity redemption agreement, you still have the ability to resign your membership at any time, stop paying dues and put your name on the Sell List and await your redemption for your membership following its sale. You still have the right to transfer your membership with the sale of your home; however you do need to be a member in good standing to do so. 7. If I cannot reinstate, can I upgrade back to Golf membership after October 1, 2015 if I have downgraded earlier? No, not to sell your membership, that would be considered a reinstatement. The Board may entertain special circumstances if the upgrading member was doing so to remain a member. 8. If I do not have a membership, can the person who buys my home become a member? Yes, until September 30, After October 1, 2015, if you do not have a membership, the person who buys your home cannot become a member. Exception as stated above, unless they choose to be a full Golf Member and there are memberships available. 9. Will non-member homeowners be notified of the new programs? Yes, the IRCC Board has requested of the PUD and HOA Boards to forward an and letter by regular mail to the non-member homeowners in the Indian Ridge community. 10. Will there be Town Hall Meetings for non-member homeowners to be educated on the new programs? Yes. There are two (2) scheduled on the following date and times: Tuesday, Jan. 14 th 2:00pm Saturday, Jan. 18 th 1:00pm 2

3 11. Will realtors be required to disclose these new membership guidelines to homeowners wishing to sell or lease their Indian Ridge homes and prospective home buyers wishing to purchase or lease an Indian Ridge home? Yes, that Realtor Disclosure has already been sent to all the realtors in our database; which include over 200 realtors who have interacted with IRCC in the recent past. 12. If I have concerns, how can I obtain more information? There are several ways available to members. If you have questions of the Board on the programs, you can attend a Fireside Chat scheduled below: Saturday Nov. 23 rd 9:00am & 10:30am Saturday Dec. 7 th 2:00pm Saturday Dec. 14 th 10:00am Saturday Dec. 21 st 10:00am Saturday Jan. 4 th 1:00pm Saturday Jan. 25 th 10:00am If you have questions about your specific membership, Pat Macdonell is available to answer those questions. Gary Gray and Hall Wade are also both available to answer questions on the programs. 13. What if I own two (2) homes in Indian Ridge? The program is flexible in this regard. The membership is essentially registered to both homes. They can live in one home and sell their other home with the membership or allow that new homeowner buy a membership from the Club. They can sell both homes and allow both the new homeowner to buy a membership at IRCC. 14. What if I sell my home and buy another home in Indian Ridge, does my membership move with me? If so, can the person who buys my home buy a membership at IRCC? Yes, on both counts. With the membership purchase, that does need to follow the normal approval process for any membership. 15. Is there a cost to registering my membership to my home or a document to sign? No, the Club will automatically record that you are a member and which home address is yours. 3

4 16. If a home is not registered with a membership and the new homeowner wants to buy a golf membership, will the Club sell them one? Yes, that is the program. However, there is a limit to the number of golf members, currently 575, and we do have sufficient availability at this time. Of course, until October 1, 2015 the new homeowner can purchase any membership by going through the normal approval process by the Board. 4

5 Reinstatements of Memberships 17. Does the current reinstatement program still exist? Yes, until October 1, After that date, reduction in back dues or forgiveness in fees will not be at option. After October 1, 2015: Only Charter Equity Members will be able to reinstate their membership by paying full dues and fees. Subsequent Members will not be eligible to reinstate their membership. 18. There is a discounted reinstatement program for Golf Members, is there one for Club or Social? Yes. Due to the lower Club or Social initiation fees paying back dues would exceed buying a new membership fairly quickly. So, one valuable option for a returning member is to buy a new membership and receive the discounted dues in 2014 & 2015, which actually equals the value of a new Social Membership or the redemption value of the Club Membership. Calendar Year 2014 dues: $275 $120/month savings = 1,440 (Club dues $395/mo) Calendar Year 2015 dues: $325 $70/month savings = $840 5

6 Initiation Fees 19. Why have we dropped the initiation fee to $39,000, doesn t that reduce the value of the Club? We have reduced the initiation fee (and eliminated the redemption value) to reduce the obstacles for homeowners to decide to become Equity Golf Members. Our goal is: to obtain more golf members. Additionally, our competitors in the Valley are moving toward a 0% redemption value membership with reduced initiation fees and we were overpriced in our initiation fees to compete with them. 20. What do I receive if I sell my membership? There are three (4) options for buyers of memberships. If your Golf membership sells: At the promotional price of $70K, 50% redemption option, the selling member would receive the percentage of the $70K stated in their membership agreement, which could be 50% or 75%. At the promotional price $39K, 0% redemption option, the selling members would receive the percentage of the $39K stated in their membership agreement, which could be 50% or 75%. With your home at the promotional price of $39K, 0% redemption option, the selling members would receive 100% of the $39K. At the retail price of $110K, the selling members would receive the percentage of the $110K stated in their membership agreement, which could be 50% or 75%, or the amount of their original initiation fee, whichever is greater. 21. Why do Golf Members selling their golf membership receive 100% of the fee and we on the Sell List only receive 50% or 75%? It is the Club s promotion to give an incentive to a resigning golf member when selling their home to immediately replace themselves with a new Golf Member. 22. Can I refuse to sell with the current promotion? Yes, and you will retain your current place on the Sell List. 23. Will the $39,000 initiation fee go up, to what level and when? 6

7 Of course, prices go up as programs are successful. Future fees will be determined by the demand and our competition. At this time we are offering just 15 Full Equity Golf memberships at that level. 24. Do new Golf Members buying the $39,000, 0% redemption offer receive promotional dues for a period of time? No, they pay full dues when they begin their privileges. 25. Are these 0% redemption value members still responsible for assessments? Yes, at the same level of other members in their category Golf, Club or Social. 7

8 Upgrades 26. Is there an incentive for Social Members to upgrade to Club Membership in this new program? Yes, Social Members receive the same incentive as new buyers of a Club membership, promotional dues for calendar years 2014 & 2015: Calendar Year 2014: $275 per month Calendar Year 2015: $325 per month Jan. 1, 2016: Full dues (currently $395 per month) 27. Can Social Members use the golf practice facilities and play golf in the summer? No. However, if they upgrade to a Club Membership they become eligible for that benefit. 8

9 Club Memberships 28. Doesn t the Club Members receiving some golf access negatively impact Golf Members? No, this will be virtually unnoticeable by Golf Members. Practice facility privileges are only after 1pm during season and golf play only after 8:30am in the summer with Golf Members having first access to tee times in summer. 29. Doesn t this give Club Members so many privileges that they will not want to upgrade to golf? No, we feel this will encourage Club Members to upgrade once they have limited exposure to our golf experience, they will want more access, which comes from upgrading to Golf membership. 30. With benefits to Social Members to upgrade to Club and Club Members having additional benefits, what are you doing to benefit the Golf Members? Actually, everything in these programs has been developed to benefit the Golf Members. All of our programs in one way or another will ultimately benefit Golf Members by adding more members, increasing our dues base, keeping dues as low as possible, and allowing us to provide more services in the future. 31. Can the Club control the use of golf privileges by non-golf members? Yes, the same way they do now by enforcing the Guest Pass guidelines, guest check-in policies, staff familiarity with the members, communication from Membership Office regarding upgrades and downgrades, and an alert staff. 32. I am confused with dividing the Club and Golf membership dues on my billing statement, is there a purpose for that? Yes, we believe that everyone is a Club Member and has access to all sorts of wonderful amenities at the Club and pays $395 per month for those privileges. Those members with golf privileges pay an additional $930 per month for those privileges. The division of fees puts the expense of golf in its proper perspective. 33. What happens if the proposed bylaw change to amend the privileges of the Sports membership and change the name of that category to Club membership does not pass? This is an important change and has very little impact to Golf Members, e.g. Driving Range use after prime time and golf only in the summer after 8:30am. 9

10 34. How can you offer the additional privileges to Club Members before the Bylaw change? The additional privileges are offer as a trial which the Board is able to do at its discretion for several seasons. 10

11 Social Memberships 35. If I am currently a Social Member can I remain a Social Member as long as I choose? Yes, the new programs do not affect your membership as long as your remain a member in good standing. 36. Can I transfer my Social Membership to the buyer of my home with the sale of my home? Yes. However, the buyer of your home will only have the option to buy a Club or Golf Membership after March 1, Your membership will transfer and you will receive the percentage redemption of your Social membership at its last publish price, which is $2, How do I sell my Social Membership after March 1, 2014? There will be one (1) Sell List for Club and Social memberships. When your membership sells you will receive the percentage you are due based on your membership (50% or 75%) of the last published price of the Social membership which is $2, Won t it take longer to sell my membership that way? No, we generally have a very short list on the Social or Club (Sports) Sell List. The combined list should impact you very little especially if you plan ahead in your decision to sell your membership. 39. In the Club Bylaws it says I can transfer my membership with the sale of my home. If I am a Social member and you no longer sell Social memberships doesn t that negatively impact me? No, you can still transfer your membership with the sale of your home, there will just be 2 categories of membership to purchase Club or Golf. If there becomes a negative impact to the timing of selling a Social membership, the Board will have options to consider at that time. 11

12 LEG, E-LEG, SSI Programs 40. Do LEG and E-LEG Club Members receive the promotional dues that new Club Members receive? No, their promotion is the LEG and E-LEG program, which is a significant value. 41. Are SSI & SSU programs still offered? Yes, for Club and Golf memberships. 42. Can SSI passholders from season decide now to join the Club and use their non-refundable deposit toward a membership even though it expired on September 30, 2013? Yes, due to the new programs we will allow SSI passholder to apply those deposits to the initiaton fee of a new membership until May 31, When an SSI option is over how long does the member have to make a decision to join the Club? Currently, it is until the end of the fiscal year. After October 1, 2015, it will be 60 days from the date of expiration of the SSI option for SSI-Club members and any time for SSI-Golf Members. 44. What if I am an SSU-Golf or Club Member, is there an incentive to upgrade? Yes, the same incentives apply for upgrading to Club or Golf memberships. 12

13 Prospective Member Access Program 45. Why are we letting renters have access to the Club? This is our Prospective Members Access Program and is very similar to our Single Season Introduction Program. It also is an incentive for homeowners that lease their homes to become Club Members and pay dues 12 months of the year. Benefits to Owner: Increase rental value of the home Competes well against other rentals without Club privileges option Benefits to Club: Source of new members Additional dues revenue Engages formerly disengaged rental owners with the Club 46. Can renters have access for multiple years? Yes, this is one of the benefits to provide an incentive for the lessor to join the Club and since they will be the member and paying dues all year long and for multiple years, this is part of the benefit. This will be a great source of prospective members for IRCC. 47. Can renters upgrade to golf privileges if the homeowner is a Club Member? Yes, it is similar to our SSU-Golf program (Single Season Upgrade) and the tenant can upgrade for a single season. Full golf dues will be paid to the Club - homeowner / Club Member pays the Club dues, upgraded tenant pays the difference to equal golf dues. 48. Why would a homeowner who leases their home want to buy a Club membership? They will have a better value to the potential tenant by being able to offer access to the Club and, if they choose, can charge more for the lease to offset the costs. 49. Are there restrictions to golf events and tee times for the Prospective Member Access Program? We treat these potential members just as we do our SSI pass holders, which is as much like members as possible. Prospective Member Access Program, like SSI s: Have no day / time restrictions for golf Have the same access to tee times Can participate in Men s & Women s Golf Associations Can participate in all Club events, except the Club Championships 13

14 50. Why aren t we charging more for access to golf privileges by the lessee? It is important to remember we are still receiving full dues for 12 months from the homeowner and if lessee wants golf privileges we are receiving full golf dues for those months. We did not want to price ourselves out of the market and fees can always be adjusted, especially based on supply and demand. 51. Who will pay the dues and fees for the Prospective Member Access Program? The member will: Continue to pay the dues Be responsible for any debt remaining unpaid by their tenant. The tenant will pay: o All golf and club fees upfront with application. o All other charges with a credit card at point of purchase, except for meals and social events which will be charge to their club account. o Their club account by auto-draft at the end of each month. 14

15 Expanded Emeritus & Surviving Spouse 52. What happens if I accept a position as an Expanded Emeritus member and the portion of dues deducted from my redemption value equals my redemption value at some time? Your option to deduct 50% of your dues from your redemption value will cease. 53. What happens if I accept a position as a Surviving Spouse Program and the portion of dues deducted from my redemption value equals my redemption value at some time? Your option to deduct 50% of your dues from your redemption value will cease. 54. What if I accept a position as a Surviving Spouse Program and then get married or choose to add a Significant Other to my membership? Your option to deduct 50% of your dues from your redemption value will cease. 55. How is my projected redemption value calculated and how many years would that afford me? It is the percentage of your redemption value in your membership agreement, 50% or 75%, multiplied by the lowest membership initiation fee offered in that category. So, if your agreement shows you have a 75% redemption value and the 0% Redemption Golf Membership is selling for $40,000, your redemption value would be $30,000 and at 50% of your dues per month at $1,325 your eligibility in the program would last for 3 years, 9 months. 56. What if the sales price goes up on the lowest membership initiation fee offered in my category? Your redemption value and eligibility in the program would go up accordingly. 57. The Expanded Emeritus Program does not help me because when I sell my membership the total of fees will ultimately be the same. Yes, but it does help those that prefer to reduce their current monthly expense of being a member. 58. How do you determine who has first access to the Emeritus and Surviving Spouse programs? Surviving Spouse: For the first offering, priority will be established by the date the primary member joined IRCC. 15

16 After current surviving spouses are in queue; priority will be based on the date the primary member passed on. Emeritus: For the first offering, priority will be established by the age of the primary member. After the 10 positions are filled, a wait list will be developed, again, based on age. 16

17 Other Issues 59. Do we still offer the Valley Club Program as an incentive to have golf members from other clubs in the Valley come to IRCC? Yes at this time we do. It remains $10K discount from the $70K / 50% redemption membership. It will not apply to the $39K / 0% redemption offer. This is an incentive for homeowners with golf memberships elsewhere in the Valley to move their membership to IRCC, which oftentimes has a cost involved in selling that membership. 60. Why are dues continuous after October 1, 2015 instead of the current promotion? A membership must stay active with the home to remain registered. As we approach October 1, 2015, there may be consideration for some level of promotional dues for some period of time as we do now. 61. Is there a Communications Plan and Marketing Plan in place to help these programs be successful? Yes. 17