Letter from the Club President

Transcription

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2 Letter from the Club President Dear Friends and Members, Over the past two plus years, many of your fellow members have served on various Committees to review options for consideration regarding our Clubhouse. For the past 14 months, extensive work has been completed by the current members of the Clubhouse Planning Committee, the Club Finance Committee and management team on this project. More than 530 of you had an opportunity to hear from Bill Langley about the work of our Committees, as well as input from our partner Architects, Engineers, Contractors, Consultants, and Reserve Study Specialists who have provided details to back up the data presented. Our goal was to give you a full and complete understanding of the logic and rationale behind the work, but more importantly, to get your input and answer any questions that you might have. Your input, feedback and suggestions, along with those who have watched the presentation online or on channel 63 and completed the survey, have assisted your Board and Committees in deciding the next step in this process. The response to the meetings and the information packages that were mailed and available online has been so resoundingly positive that the Country Club Board has agreed to move forward with a vote of the Members on the issue of building a new Clubhouse as quickly as possible. In order to accomplish this, the Board approved the proxy/ ballot included in this mailing at our meeting on Friday April 10 th. We have called a Special Meeting of the Members in accordance with our By laws for Monday April 27 th at 9:00am to announce the results of the vote. The materials enclosed contain the suggested changes (where possible) that many of you asked us to consider. If the plan is approved, we will continue to work with our members and professional partners during the next year to refine the plan, seek permitting as necessary, develop a temporary facilities program and build the team of members and partners to execute the plan. We encourage you to carefully review the document and exercise your right to vote on this very important initiative. We would be remiss if we did not recognize the fact that we completely understand that not all of our members may be in favor of undertaking such a large project either based on the financial parameters or the disruption to their personal enjoyment of the facilities. Should we be fortunate enough to achieve a yes vote on this initiative, we are committed to doing everything within our abilities to control the project from inception to completion in a very transparent and fiscally responsible manner. We are also driven to make this an enjoyable transition from our current facilities to a new Clubhouse that will serve our needs, as well as those of the next generation of Quail Ridge Members. We sincerely hope that you find the information in this booklet helpful and informative. I join the Country Club Board of Governors in strongly encouraging you to vote in support of this plan. Thank you for your continued support of Quail Ridge, and I look forward to announcing the results on April 27 th. Best wishes for a safe, healthy and happy summer. With warm regards, Catherine McLoud, President Quail Ridge Country Club Board of Governors Page 1

3 Clubhouse Front Elevation For Illustration purposes only Subject to change or modification Page 2

4 Project Summary As noted in our earlier packages, over the last several years, the Club has engaged several architects, engineers, designers, builders, sub contractors and reserve study specialists to fully identify all of the potential options for our Clubhouse and related facilities. Every member has had the opportunity to attend the recent Clubhouse Information meetings, watch it online or on channel 63 and respond to a very short survey on this subject. The results of the survey indicate the following: 85% of respondents indicated they were in favor of a new Clubhouse 7% of respondents indicated they would prefer to do nothing at this time 6% of respondents indicated they would prefer a renovation of the existing Clubhouse 2% No response to this question Based on these most recent survey results it is very clear that there is a desire to move forward with the construction of a new Clubhouse. If this vote is successful the project will include the following elements: A new Clubhouse: The new Clubhouse as outlined in this booklet will continue to evolve from the current design during the planning process. The Building Committee will receive regular progress drawings from the Architect and the intention will be to communicate this information as much as practical to the membership in a variety of ways. The plan is envisioned to be a very flexible wing design building that will make the best use of our building site. The new building will be completed primarily on the site of the existing building. This plan will be developed with close attention to many of the features that our members are looking for such as a larger Quail s Nest bar, significant outdoor dining and multiple use rooms that will allow for the current and future planned activities. The new plan will also provide for a closer walk from the parking lot to the Clubhouse, shorter distances from the locker rooms and pro shop to the cart staging and a much better arrival experience. The Champions hall from the lobby to the locker rooms, pro shop and west entrance will allow us to permanently display the rich history of our club in a high visibility area. The pro shop location between the Ladies and Men s locker room will be very convenient from any part of the club. Finally, the location of the kitchen and back of the house areas is positioned in the front right of the clubhouse allowing for easy deliveries and minimum crossover traffic to our main ala carte dining areas. Page 3

5 Project Summary Renovation and new addition to the Golf Cart and Bag Storage facilities: As part of this project we will be removing approximately 50% of the current cart barn and bag storage areas to make room for the new Clubhouse. Our intention is to add new construction to the existing cart facility that is positioned east to west, update all of the electrical, add a roofline that matches the new clubhouse and create a properly sized bag storage room and cart return area. We anticipate that this work will be staged to create the new facility while the current facilities are still in place. We will also work with our golf cart vendor to reduce our fleet inventory during the construction transition when the golf carts are not needed. Temporary Facilities/ Reciprocal Privileges: The Board and management team will work diligently to develop a season by season temporary plan to address our members needs. Off season dining plans, in season dining plans, meeting rooms, card rooms, locker rooms, pro shop, kitchen service and much more will be considered as part of the overall strategy. We will review and implement best practices from area clubs on this subject and work with our local event planners to develop several options for consideration. The Board and management team will also visit with other area Clubs to ask for their assistance in providing reciprocal privileges during certain periods of the year. In addition, we will plan many fun and unique events during this period both on property and off to engage our members. Demolition of existing Facilities and disposition of Assets: Your management team will actively investigate any and all opportunities to re-use any new or nearly new furniture, fixtures and equipment during the temporary facilities phase as well as what may be repurposed in a new facility. Items not being considered for re-use will be disposed of by silent auction, wholesale salvage or donation before the final demolition of the facility. All of our historical assets will be photographed, cataloged and inventoried before being placed into climate controlled storage facilities to protect them. Demolition will be planned once final building permits and plans are approved for construction and a farewell to the clubhouse, end of the season celebration will help close the clubhouse in style. Page 4

6 Clubhouse Concept Renderings Conceptual view of the porte cochere arrival area. Note the Transom windows added for effect. There is a recessed front porch for valet as well as for arriving and departing members and guests. Final design and exterior colors subject to change Conceptual view of Octagon room H on page 7. This is designed as a flex room for private or specialty dining, meetings, small groups and overflow use for the grill or main dining rooms. Final design and interior colors subject to change Page 5

7 Clubhouse Site Plan The Clubhouse site plan to the left is designed to protect the current short game practice area and putting green. We will use part of the putting green during the construction but it will be repaired at the completion of the project. It also allows for parking to be closer to the west entry and realigns our main entry to the center of the building. The new receiving area would be located to the far right of the building away from the main entry and pro shop areas. The cart barn facilities will be located just off of the bag drop and adjacent to the pro shop and locker rooms for ease of access. The parking lot area will also be studied to see what improvements can be made to this area during the construction process. The area near the halfway house and the current cart staging area will be used as part of the temporary facilities and will be addressed the summer following the completion of the Clubhouse and Cart facilities. Note> no legend enclosed for Clubhouse Site Plan. Page 6

8 Clubhouse Floor Plan Preliminary design subject to changes and modifications Page 7

9 Clubhouse Floor Plan Legend The legend below identifies the rooms in the floor plan above on a space by space basis. It is labeled as the intended use and the approximate square footage. The plan is subject to change and modification as we complete the planning process. Page 8

10 Rear Clubhouse Elevation Preliminary design, subject to change and modification Page 9

11 Rear Clubhouse Elevation The view from the rear of the clubhouse will primarily overlook the putting green, driving range, waterfall, tower clock and short game area. The goal is to maximize the view corridors from all rooms. There will be two large outdoor dining patios for members to enjoy the beautiful south Florida weather in season. The porches are situated with a northern view eliminating the morning and late afternoon direct sun. One patio will be adjacent to the main dining room and will serve as perfect location for pre function cocktail space, wine dinners, private parties and more. There is a operable wall from the main dining room that allows that space to be used in conjunction with major events. The larger patio will be directly adjacent to the Quail s Nest bar and grill and will have its own outdoor bar area right off of the putting green. This casual outdoor dining space and bar will become the preferred post golf destination to celebrate your day. There will also be a comfortable fire-pit located near this patio for those occasional chilly nights. The Quail s Nest bar and grill will also have a operable wall that will allow this entire area to flow from inside to outside as a combined dining and entertainment destination. Page 10

12 Financial Plan Overview: This booklet outlines our approach to provide funding for a New Clubhouse and Renovated Cart Barn (together the Project ) in a fiscally responsible way. Project Costs: The schedule on Table 1 highlights the broad cost categories associated with the Project. Soft Costs includes the following: 1. Professional Fees Architect, Engineering (Structural, Mechanical, Electrical, Fire Protection, Plumbing, Coordination of Owner-Hire Consultants) 2. Other Soft Costs - Survey Update, Civil Engineer, Land Planner, Hardscape Design, Landscape and Irrigation, Acoustical Engineer, Attorney Fees, Food Service/Bar Equipment Consultant, Roofing Consultant, Hazardous Waste Report, Owner's Representation, Soil/Borings Report, Loan Closing Costs and Miscellaneous Financing Plan: The Plan assumes a mix of funding will be used during construction as summarized on Table 2 on page 12. Specifically, those are as follows: 1. Contributions from the Capital Project Fund (CPF) primarily consisting of: a. The $60 per month ($720 per year, per member) Capital Improvement Charge; b. Other available cash flow from the CPF 2. Clubhouse Construction Assessment (see Table 3), calculated at 50% of the construction cost divided by participating members. Table 1: Project Costs Quail Ridge Country Club Project Costs - New Clubhouse (in Thousands $000) Square Feet Clubhouse Cart Barn Total Construction Related Costs: Clubhouse - New Construction (HVAC 35,305 SqF; Covered Awning 14,020 SqF) 49,325 $ 11,495.2 $ - $ 11,495.2 Cart Barn and Bag Storage - New / Renovated Space 13,114-1, , ,439 $ 11,495.2 $ 1,640.6 $ 13,135.8 Furniture Fixtures and Equipment: Furniture, Fixtures and Accessories 1, ,516.4 Kitchen and Bar Equipment 1, ,381.3 Soft Costs: Professional Fees Other Sub-total of costs subject to Contingency $ 15,728.5 $ 1,968.7 $ 17,697.3 Other Costs: Demolition Temporary Facilities Site work / Landscaping Exposures allowance (FPL Transformers, Temporary Construction Road, Zoning, etc.) Generator allowance (partial building) Total Project Costs before Contingencies $ 18,054.4 $ 1,968.7 $ 20,023.1 Contingencies: Clubhouse $ 1,149.5 $ - $ 1,149.5 Cart Barn and Bag Storage FFE/Soft Costs Total Contingencies $ 1,572.9 $ $ 1,769.7 Total Project Costs before Capitalized Interest $ 19,627.3 $ 2,165.6 $ 21,792.9 Capitalized Interest - construction loan Total Project Costs $ 19,800.1 $ 2,184.7 $ 21,984.8 Page 11

13 Financial Plan 3. Senior Reward Program (SRP) (see Table 3) is available for any member who is 85 or older. They will enjoy a 50% discount on the assessment under the spread funding concept with the following additional terms: a. If a member elects the spread funding and did not qualify for the SRP at the time of the election but subsequently turns 85, the remaining installments will be at the reduced SRP rate. b. Any member who qualifies for the SRP and subsequently sells their membership to a new member who does not qualify for the SRP, the new member will be required to pay the regular spread funding payment at the regular assessment rate for the remaining installments due. 4. Construction Line of Credit converting into a fixed rate 15 year term loan, interest will be based on a variable rate during construction and is assumed to be 2% in the financial model. Upon Conversion, any unpaid balance will move into a fixed rate (estimated at 4.5%) 15 year loan. Long-Term Debt Payback Plan: The $16.33 million loan noted in Table 2 will be paid back with: 1) proceeds from spread funding payments of the Clubhouse Capital Assessment; 2) CPF Capital Improvement Charges; 3) Capital dues; and, 4) Available Cash Flow from the CPF. The loan will permit accelerated principal payments without being subject to pre-payment penalties. For more information on the New Clubhouse Project Financial Model Assumptions and Cash Flow Projections, please visit our Members Only section on Quail Ridge s website or request a hard copy of the detailed plan, which is available at the Business Center. Table 2: Construction Financing (in Thousands $000) Construction Costs Financed By: Bank Financing $ 16, % The monthly and prepaid Clubhouse assessments 3, % Capital Improvement Charge transfered from CPF 1, % Other transfers from CPF and/or designated capital fund (balance of the cost) % Total Construction $ 21, % Construction Period Interest Total Project Costs, excluding financing costs on fixed rate loan $ 21,984.8 Table 3: Assessment Options Gross Cost of Project (before all interest costs and in Thousands - $000) $ 21,792.9 Less 50% to be funded by CPF (10,896.4) Project to be funded by Assessment $ 10,896.4 Divided by members 970 Required Assessment per Member (rounded to nearest hundred) $ 11,200 Option 1: 10% Discount offered in exchange for Lump Sum Payment Required Total Assessment $ 11,200 10% Lump Sum Discount (1,120) Lump Sum Payment $ 10,080 Option 2: 5% Discount offered in exchange for three (3) annual installments Required Total Assessment $ 11,200 5% Three Installments Discount (rounded) (550) Total Assessment to be Paid $ 10,650 Three Annual Installments of $ 3,550 Option 3: Spread Funding, interest free, assumable (i.e. sale during term of loan) Required Total Assessment $ 11,200 Number of monthly payments (13 years 4 months) 160 Monthly Spread Funding Payments of $ 70 Annual Amount $ 840 Option 4: Senior Reward Program (SRP) 50% Discount on Spread Funding, interest free, assumable subject to qualifications Required Total Assessment $ 11,200 Number of monthly payments 160 Regular Spread Funding Monthly Payment of $ 70 Less 50% SRP Discount (35) Monthly SRP Spread Funding of $ 35 Annual SRP Amount $ 420 Regarding Options 3 and 4: Date of last payment (assuming a July, 2015 start date) October 2029 Length of payments expressed in years 13 yrs 4 mos Page 12

14 Clubhouse Room and Use Size Comparison The chart below outlines the square foot per area comparison between the existing facilities and the proposed Clubhouse plans. The Building Committee will be soliciting and receiving continued feedback as plan adjustments are made to further refine the design to accommodate the needs of our current and future members. SQUARE FOOTAGE COMPARISONS Total (Subject to Change) New Existing Change % Change Conditioned Space: Dining 8,495 8, % Kitchen/Storage 7,988 9,022 (1,034) (11.5%) Locker Rooms 6,327 7,941 (1,614) (20.3%) Card Rooms 2,230 1, % Pro Shop / Offices 3,603 2, % Club Management 942 1,054 (112) (10.6%) Misc. (hallways, mechanical, unusable space etc.) 5,720 10,410 (4,690) (45.1%) Total Conditioned 35,305 41,093 (5,788) (14.1%) Ventilated: Cart and Bag Storage, Cart Repair and other storage 13,114 12, % Covered: Outdoor Dining (including current umbrella area) 7,118 9,050 (1,932) (21.3%) Porte Cocheres 1,938 1, % Porches and Walkways (east, south and west) 4, , % Cart and Bag Storage, Cart Repair and other storage - 2,514 (2,514) (100.0%) Outdoor Receiving/Storage n/a Total Covered 14,020 13, % Total Square Feet 62,439 67,508 (5,069) (7.5%) Page 13

15 Planning, Permitting and Construction Timeline Planning, Permitting and Pricing June May 2016: Based upon a successful vote at the end of April 2015, the Board will move quickly to appoint a Building Committee comprised of members that have experience in commercial construction, engineering, financial and legal in large scale projects such as this. They will work with our management team, Board and Finance Committee to build a team of professionals such as Architects, Engineers, Interior Design firms, Contractors and Owners Representative s that will oversee the project from inception through completion. There will be considerable work required to complete the necessary initial site plan for submittal to Palm Beach County for zoning, platting and permitting. Concurrent with that we will be focused on refining the plans to insure that we have incorporated all member feedback where possible. The latter phases of this period will include solicitation of bids from Contractors on a GMP (Guaranteed Maximum Price) contract. This period will conclude with the award of a contract to build our new facility. Groundbreaking and Construction May October 2017: Once our plan and pricing have been approved (including our temporary facility plan) by the County, as well as your Board and Finance Committee, we will host an end of the season clubhouse farewell celebration and member information meeting to fully explain the construction process and the temporary plan by season. Construction will begin as soon as practical at the end of the season and we are committed to publishing regular construction updates so that our members can follow the process. The construction period is estimated at months, depending upon weather and or construction related delays such as material delivery. Punch list and Certificate of Occupancy Nov-December 2017: We anticipate that once the clubhouse and related facilities are substantially complete that we will seek a temporary certificate of occupancy from the county for the purpose of completing the installation of the furniture, fixtures and equipment. This period will also allow us the time to complete employee training in the new facility while we are finishing the final punch list items. We should be able to forecast a completion date along with a grand opening welcome back celebration for the fall of 2017 with proper notice for all members to attend. Our goal will be to complete this facility on time and within budget with no surprises for our members. Page 14

16 Frequently Asked Questions Q. Have you considered our other financial capital needs in the model? A. Yes, the model assumes our normal capital expenditures of $1.2m per year (which includes all known items such as golf course re-grassing, cart path paving). Further, the model assumes a fitness center addition that will be funded from the Capital Project Fund (CPF). Q. How much does this model rely on new member funding (joining fees) to fund the debt service? A. The minimum debt service is fully funded from the CPF fund, Capital dues and the project assessment. There is no balloon payment. Q. If I am interested in all of the financial model details where would I find that information? A. The complete financial information is located in the members only section of our website and is also available by hard copy at the Business Center. Q. Why is the new clubhouse smaller in design than our current clubhouse? A. Our current facility has been added on to numerous times over the years and the result of that has been inefficient use of space. The new plans are more efficient without sacrificing any needed space or amenities. The current facility suffers from renovation and addition sprawl. Q. What is the required quorum to pass the vote on a new clubhouse? A. Our By Laws require a minimum of 300 persons in person or by proxy to establish a quorum. A simple majority of 50% +1 will pass the initiative. Our lending institutions would like for us to acquire at least a 60% favorable vote on this issue. The larger the number of members voting in favor of the project, the more likely it is for us to gain preferred lending rates on financing. Q. What is the plan for temporary facilities? A. The management team will publish a season by season plan for our temporary club facilities and projected services. We will also publish any additional reciprocal arrangements we create with other local clubs. The goal will be to provide unique, fun venues and to make sure that we are addressing the needs of all of our members Q. What happens to my individual monthly assessment payment should the loan be paid off ahead of my last installment? A. You or your successor would be obligated to continue making the monthly installment payments for the defined period. Q. What is the best way for me to vote to insure that my proxy is returned on time? A. Since we are in transition at the end of a season, we have mailed proxies and info to both of your addresses of record. Please only complete one proxy and return it in the self addressed envelope ASAP. You can also print an electronic version, complete the proxy, scan it and return it to the club. In addition, extra proxies will be available at the reception desk in the business center and you are welcome to use the computer room to complete your proxy on site. Page 15

17 Frequently Asked Questions Q. Are we addressing the South Gate or the Fitness Center as part of this project? A. No. Last year, the feedback was to address these items separately. The Board has planned a partial renovation of the Fitness Center this summer and the Fitness Committee and Long Range Planning Committee are studying further expansion options. The Long Range Planning Committee is also looking at options for the South Gate. Q. What impact will a new clubhouse and cart facility have on our annual dues? A. Our management team has completed some preliminary work in this area. We understand that we will have a higher property tax costs based on values. Our insurance costs should be close to neutral because of the construction standards of the new facility. We should enjoy savings on energy efficiency and other operating costs. At this point our forecast is less than a $100 per member per year impact on the dues. Q. Will this assist us in selling more real estate? A. We certainly believe it will be a very useful tool along with better marketing, the excitement of a new facility and members bringing friends to see their new club. Every mandatory club that we have spoken to that has made a large investment in protecting, enhancing and growing their brand and reputation has benefitted from an increased pace of sales and uplift in pricing. Q. How long will it take from start to finish? A. Assuming a positive vote in April, we would start all the pre-construction phase work immediately (i.e. going from renderings to working drawings, blueprints, applying for permits, land planning, engineering studies, etc.). That should take 12 to 14 months to complete. Construction would likely start in May of 2016 and continue through September Punch list items and the final Certificate of Occupancy should be completed by December Q. What happens if membership sales are lower than expected? A. Fortunately, as mentioned earlier, the Club will be able to meet its minimum debt service obligation to the bank independent of membership sales. The regular $1.2 million of Capital Expenditures is currently funded by allocated cart fees ($7 per round - $400k per year) and net joining fees (27 net new members per year or $800k in aggregate). The Club averages 43 to 44 new members per year. Should new members sales in any given year fall below 27, the Club could modify capital expenditures until the sales pace returns to normal. Q. What happens to the Clubhouse Staff during construction? A. If we are fortunate enough to move forward with the project, the work will just be beginning for the staff. It will take a truly dedicated team to maintain a high level of membership satisfaction in temporary facilities. Undertaking a large project like a new clubhouse, will require many of our loyal employees to assist us in ways that they may have never dreamed, but it will be ultra important for you to see employees that you know each time you visit the club. Page 16

18 Committee Members Clubhouse Planning Committee Gerry Leider, Chairman Martin Bartow Christina Berry Kent Blair Jack Bohlen Pierre Cloutier Ralph Cook Alain Cousineau Tom Elsner Henry Follen Kevin Hammer Angela Kerfoot Don McCullough Brian McGarry Catherine McLoud William Sandholm Milton Small Country Club Finance Committee Don McCullough, Chairman David Chick Frank Clements Ray Doin Fil Spizzirro Management Team Bill Langley, GM/COO Andy Transleau, CFO Please return your proxy today! Voting Instructions Included in this mailing is a single page legal size proxy. Please follow the instructions on the proxy and return in the self addressed envelope. You may also print a copy of the proxy from the electronic mailing that was sent, complete the proxy (remember to sign) and scan or Fax ( ) the document to us. If ing please send to KMcCloskey@quialridgecc.com Members also have the option of visiting the Business Center during normal business hours to pick up a proxy in person. The computer room is available for your private completion of the proxy. Your proxy must be returned no later than 9:00am on Monday April 27 th in order to be counted. Page 17

19 Project Consultants Notes: PEACOCK + LEWIS AIA Architects and Planners, LLC. Golden Bear Plaza - East Tower US Highway One; Suite 402 North Palm Beach, Florida Phone: Fax: brian@peacockandlewis.com Celebrating over Fifty Years of Design Excellence! Page 18

20 Letter from the Club President Dear Friends and Fellow Members,