Golf Club Atlas
GolfClubAtlas.com => Golf Course Architecture => Topic started by: Michael Herrmann on November 25, 2014, 02:08:12 PM
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Last night I attended my first meeting of a 3 year commitment to be on our club's Board of Directors. Over the last couple of months talk has begun on whether it would be a good idea to generate more specifics and potentially bring a vote to the membership next year on a potential new clubhouse or an extensive remodel and addition to our existing structure, which is approximately 30 years old. Let me give some background on the current state of the club:
Club opened in 1960 in the suburb of a Midwestern city, Bill Diddel designed course, founded on the principal of being a golf club only for those who simply enjoy the game and camaraderie of a private club. I would take an educated guess that the demographic of the club is younger now than maybe at any other time in our existence, and we continue to maintain a no frills approach to private golf. There are not any "golf club only" options within a 15 mile radius of our club, the only 2 privates within that area are full scale country clubs, neither of which are currently at full membership. Our club has never not been full (350) since my dad joined in 1983, and currently we have approximately 25 on our waiting list. Our dues are very reasonable for a private club and approximately 1/2 of the two closest clubs I mentioned. We enjoy good not great golf and the pleasure of hanging with our fellow members.
As there are currently no real major issues with other aspects of the club, talk has started to turn towards looking at what is our "weakest link" and there is some initial show of support for doing something with the clubhouse. At our annual meeting in October, a straw poll was taken of the 75 members in attendance (admittedly a small size sample in my opinion.) The results were 47% in favor of potential new clubhouse, 35% in favor of major renovation and expansion, 18% do nothing. Mind you, no specific costs were associated with either of those plans. Over the next 1-2 months we are expecting a couple of the Board members to have rough estimates of costs and plans of what could be done in either scenario. There is room to build new about 70-80 yards left of the existing clubhouse but it may not be the ideal spot. And obviously a major renovation and expansion of the existing building would render it useless for the duration of that option.
Our clubhouse certainly has some shortcomings, the kitchen is far from what would be described as pleasant to work in and our pro shop needs some extra space. The outdoor deck could use an expansion and the building itself will be due for a new roof and HVAC upgrades very soon.
I don’t have enough information yet to have a strong opinion on any of the options, but I’m sure others on this site have experienced similar situations. Often times there have been discussions of how going into debt on non course related items has been detrimental to a club’s long term financial health. My question is does anyone have success stories in this arena to share or lessons learned from something they have experienced? One of my big concerns obviously is that even if it comes to light that a solid majority of the members support a major project, surely we will have some members drop out. What if our wait list went from 25 to 5 in a year and those that were left wouldn’t be interested in any major spending on the course for the next 10+ years?
Appreciate any and all thoughts on the subject.
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I think it difficult to tell someone how to spend their money. Collectively you know how important it is that something needs to be done and without seeing figures hard to know the best route renovate or new. New can be cheaper, could the new building be the clubhouse and the old be converted to something else, perhaps later? Hotel, apartments? Not knowing planning law to that area makes those suggestions possibly stupid of course, but too many unknowns really to cast a proper opinion.
I agree 75 is a small sample, 18% nayeers means 14 want to do nothing and 61 do something, but 275 were not sampled or did not cast a vote? if they did not cast, it would seem to me that the stronger opinions to do something came out in the first sample. Consulting the 350 may produce different percentages. Was it a random 75 or cherry picked? Lots of questions and answers needed!!
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What kind of person even goes to board meetings and why would you believe anything they say? I've never known happy people or people not looking for change to show up. If you need to take a vote it most likely doesn't need to be done.
Members are like children. Never ask a question unless you already know the answer.
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Sounds like it's the only financially healthy golf club in the area and they're dying to fix that. But seriously...there is presumably some connection between being "golf only" and being the only fully subscribed club in town. Borrowing a bunch of money to spend on a totally non-golf-only white elephant of a clubhouse sounds to me like pure folly.
Absolute best case? The existing members have a bigger, nicer, newer clubhouse for their "no frills golf" club. And maybe it is easier to attract future members (to your fully subscribed club) who are impressed by a bigger, nicer, newer clubhouse. So eventually you pay for the thing and you remain healthy enough for the additional upkeep and staffing.
Worst case? You borrow a bunch of money, lose the essential character of your club, a few members who weren't in favor or it (whether they said so up front or not!) leave and it turns out not as attractive to newcomers as you hoped. So you become another of the clubs struggling to keep up appearances with less stable financial footing than you are currently enjoying.
Gotta say, I can't see as a sensible thing to even be talking about unless there's some unmet need you have not told us about. And money burning a hole in the board's collective pocket is not a "need". It's an urge.
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You ever notice how every time a school board pushes through a new school the current administration soon leaves right after completion. You might as well start looking for a new club to join now.
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John have you ever played Spider Solitaire?
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John have you ever played Spider Solitaire?
No, does it help with anger issues?
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Everybody is in favor of "improvements" until presented with hard numbers and their individual share of the cost.
If you really want to see who's in favor,insist that all,or at least 50%,be paid in cash. Members will approve anything done with debt--they figure the next generation will pay for it.
IMO,it's critical a super-majority of your membership approves anything extensive. You don't want to run the risk of 60% approving something (based on your current membership) and have a lot of the 40% walk out the door. If you can't fund the project solely based on the "yes" votes,you might never catch up.
"Build it,they will come" only worked in the movie.
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Adrian, the 75 that voted in the "straw poll" were those that attended the members annual meeting last month. As there was very little of consequence (small dues increase, minor constitutional changes, etc.) to vote on at the meeting, the turnout was low. So that was not a cherry picked vote but just those that attended.
My sense is, after last night's meeting, more of the Board members are skeptical about a need for a major project than those who are initially positive about it. I believe it to be a vocal minority that are trying to push the idea but I'm open to hearing more on costs and the options before casting my opinion. The number I heard last night was $1MM for a new clubhouse, but that doesn't include demo and what to do with the space occupied by the old clubhouse. I have found that, even as we've operated quite soundly as a golf club over the last few decades, there's always a faction of the membership that wishes for more of the country club feel (at only a slight increase in price of course!) Brent, I think you are correct in that the upside is nice to think about but the worst case scenario is ugly.
I was simply curious if anyone knew of any successful projects of this nature that have been undertaken in the last few years.
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I get the impression that your club is private/member owned. Would that be correct? If so may I suggest that firstly you check yourself, not have someone else check, they may have a vested interest, the rules/constitution of the club. There is a pretty good chance that a certain %, probably a large %, of formal support is required to agree to any such change. Also, and I'm not kidding here, make sure no builders of the potential new clubhouse are on the Board or have close relatives/business associates on the Board, amazingly these kinda things happen and vested interests tend to come out of the woodwork when money is involved, so it's best to be aware well in advance. Apologies if I seem cynical, but a couple of clubs club I know well built new clubhouses, sorry wrong description, a new gin palaces, instead of upgrading their courses. Things haven't been the same since. My gut feel is that there will be a small clique trying to drive through the new clubhouse, find out the real reason they want it, it may not be what it at first seems.
atb
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No doubt on it being easy for those to be in favor on paper. We have a history of being interested in projects until the dollar figures show up.
For a project such as this, our by-laws call for a 2/3rds approval. I'd personally rather see it be more like 85-90% before I would be more comfortable.
Everybody is in favor of "improvements" until presented with hard numbers and their individual share of the cost.
If you really want to see who's in favor,insist that all,or at least 50%,be paid in cash. Members will approve anything done with debt--they figure the next generation will pay for it.
IMO,it's critical a super-majority of your membership approves anything extensive. You don't want to run the risk of 60% approving something (based on your current membership) and have a lot of the 40% walk out the door. If you can't fund the project solely based on the "yes" votes,you might never catch up.
"Build it,they will come" only worked in the movie.
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My club (before I was a member) decided on a course renovation by one of those 60/40 deals. Sure enough almost all of the 40% left the club rather than ponying up their share. There were also a few of the 60% who apparently had their arm twisted into supporting the renovation. Because quite a few of them ended up leaving, too.
That was more than a decade ago and to this day we still have membership numbers roughly equal to 60% of the pre-schism total. And we're still stuck with the long-term financial fallout of spending a million dollars that had to be borrowed.
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". . . we continue to maintain a no frills approach to private golf. There are not any "golf club only" options within a 15 mile radius of our club, the only 2 privates within that area are full scale country clubs, neither of which are currently at full membership. Our club has never not been full (350) since my dad joined in 1983, and currently we have approximately 25 on our waiting list. Our dues are very reasonable for a private club and approximately 1/2 of the two closest clubs I mentioned. We enjoy good not great golf and the pleasure of hanging with our fellow members. . . ."
So why do anything at all? Are your systems -- HVAC, electrical, plumbing working o.k.? Does your roof leak? Sounds like you should spend some money there, from what you say. I'd focus on those things first, and then spend your money on the golf course -- not sure what "good not great" means, but given the nature of your club, why not go for "great" on the golf course. Beyond that, maybe some paint, carpet and new light fixtures would be enough to "update" the clubhouse, and go ahead and expand the deck if you think that will make the club more attractive. I'm not sure why a pro shop would ever need expansion -- how much time do the members spend in there? Sounds like you've got a great thing going -- don't screw it up.
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Michael - I think its not easy to understand the club mindset and membership wants for us outsiders. Your judgement is going to be better, if I got it right it would more be luck!
I do think that the 75 that attended is a a bit of a cherry picked opinion though because by definition; that they attended the meeting they have the strongest views. It might be a case out of 350 that the real call is 100 YES and 250 NO. The 275 non attendees would seem not to care substantially that the club did anything.
John - Yes but play it on a medium level dosage for just three hours a day for the first year before you up the strength.
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8) Can't believe you need to need to spend big bucks on new Clubhouse when as you say:
"Our clubhouse certainly has some shortcomings, the kitchen is far from what would be described as pleasant to work in and our pro shop needs some extra space. The outdoor deck could use an expansion and the building itself will be due for a new roof and HVAC upgrades very soon."
To renovate to give the cook some more space, fix the roof, and expand the deck should all be relatively non-obtrusive activities.. sounds like worst that will happen is you'll have to order in some catering or set up a gas grill outside or in a tent or trailer and such in off-peak season periods
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If you can't write the one check from cash reserves don't do it. Improvements that can be made with reasonable capital injections are one thing but spending 10-12 million blowing down a clubhouse and then rebuilding a Taj Mahal is insanity. In fact one only needs to drive thru Florida to see the dire straits most clubs are in that have big new clubhouses that are vastly underutilized. Your model is working exceptionally well- don't fix what isn't broken.
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The number I heard last night was $1MM for a new clubhouse, but that doesn't include demo and what to do with the space occupied by the old clubhouse.
This estimate of $1,000,000 is not even close- commercial construction is expensive and clubhouses are much bigger than they look, even modest ones are 15,000 SF. Rebuilding the deck alone will probably cost you $100,000.
If the $1M estimate is driving this discussion, a new clubhouse isn't even remotely possible. You probably fix all of your problems for $1M, though.
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You ever notice how every time a school board pushes through a new school the current administration soon leaves right after completion. You might as well start looking for a new club to join now.
John- +1000. The new school gets built , taxes go thru the roof because of the inevitable referendum that gets jammed thru because it's for the kids.Then the supt leaves in a couple of years and you are stuck with a school that was built to handle a Xmas or Easter Mass turnout.
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Hi John,
Our clubs sound very similar. We have done two major things to our clubhouse. We built a big covered 2300 sq foot patio for $220k and we renovated the dining room / ballroom / offices for $220k. We only did those after we raised enough entry fee capital to pay for everything else on the golf course and prepay some principal on our loan. Building a clubhouse or a full scale renovation is never discussed. We are a golf club and everything golf related comes first. You can fix logistical problems relatively cheaply....
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Do the math- if you build a 12- 15000 square foot clubhouse(not huge) at $500-600 a square foot you are in for 6-9 million and you haven't torn or hauled away anything. Throw in some inevitable overruns and you can get to 10 million quickly. Especially if the unions are involved.
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Adrian, the 75 that voted in the "straw poll" were those that attended the members annual meeting last month. As there was very little of consequence (small dues increase, minor constitutional changes, etc.) to vote on at the meeting, the turnout was low. So that was not a cherry picked vote but just those that attended.
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That is indeed the definition of a cherry pick vote.
Those who want to "do nothing" didn't bother to attend a meeting that was billed as "very little of consequence"
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Make sure you have a solid waiting list. People who are looking for a reason to be mad or leave will have one.That is fine if the club knows it may happen.And it can be healthy.It depends upon your club.While knew buildings can be great there are also a number of empty churches that once had a new building. Rice Stadium was built for 70,000 fans.Sometimes people overbuild.
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Any other capital projects on the horizon? Irrigation for example?
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Sometimes people overbuild.
I would suggest people *always* overbuild when they're using Other People's Money.
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Michael - Just don't do it!
I've seen two clubs that I've been members at ruin their culture and financial health by doing this.
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I didn't see any info on the financial health of the club. Will you pay for the new clubhouse from a reserve fund? From member assessments? Or by taking on debt?
Given the economic challenges facing clubs today, taking on debt is very dangerous and can prove to be the kiss of death.
First, build an RFP and get solid cost figures. Multiple contractor estimates. – being careful on what could happen with cost overruns.
Then, test how how serious the supporters are by determining how much of an assessment or dues increase that they are willing to agree to. Take the going-in position of NO DEBT”.
Then poll the non-supporters as to what they would do, should the plan go through. These are the members who could leave and start the club's financial death spiral.
Build some financial models. Include worst-case scenarios. Cost overruns. Loss of membership numbers. Consider other capital needs and course improvements.
It's too easy to simply ask members “Hey, how'd you like a fancy new clubhouse?”, without asking them to pony up some serious money up-front.
Finally, realize that you are abandoning your stated mission of being a “golf only club” and moving into the same market as your competition (people who want more than “golf only”). Ready to compete in that space?
BTW – How can the club be below full membership, yet have a waiting list?
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Do the math- if you build a 12- 15000 square foot clubhouse(not huge) at $500-600 a square foot you are in for 6-9 million and you haven't torn or hauled away anything. Throw in some inevitable overruns and you can get to 10 million quickly. Especially if the unions are involved.
Jack, $500-600 a square foot? Tell me where I can get some of those jobs! As a commercial general contractor, I can build a clubhouse for $200-250 all day. Maybe $300 if the millwork is OTT.
I still think the best option for Michael's club is paint, carpet, add on to the deck. Build a couple of fire pits.
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Do the math- if you build a 12- 15000 square foot clubhouse(not huge) at $500-600 a square foot you are in for 6-9 million and you haven't torn or hauled away anything. Throw in some inevitable overruns and you can get to 10 million quickly. Especially if the unions are involved.
Jack, $500-600 a square foot? Tell me where I can get some of those jobs! As a commercial general contractor, I can build a clubhouse for $200-250 all day. Maybe $300 if the millwork is OTT.
I still think the best option for Michael's club is paint, carpet, add on to the deck. Build a couple of fire pits.
Bill, I guess you should have submitted a bid for the recent renovation at Bonita Bay it came in at 11.5 Million $ to renovate a 30 yr old clubhouse. I just spent over $450 a square foot to renovate my daughters bathroom:( Quality construction doesn't come cheap,
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Do the math- if you build a 12- 15000 square foot clubhouse(not huge) at $500-600 a square foot you are in for 6-9 million and you haven't torn or hauled away anything. Throw in some inevitable overruns and you can get to 10 million quickly. Especially if the unions are involved.
Jack, $500-600 a square foot? Tell me where I can get some of those jobs! As a commercial general contractor, I can build a clubhouse for $200-250 all day. Maybe $300 if the millwork is OTT.
I still think the best option for Michael's club is paint, carpet, add on to the deck. Build a couple of fire pits.
Bill, I guess you should have submitted a bid for the recent renovation at Bonita Bay it came in at 11.5 Million $ to renovate a 30 yr old clubhouse. I just spent over $450 a square foot to renovate my daughters bathroom:( Quality construction doesn't come cheap,
Just a bathroom or just a kitchen is high dollar. I hope your daughter likes it!
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There is of course, another way that a new clubhouse can sometimes come about.
http://www.bbc.co.uk/news/uk-england-manchester-29680068
Such a tragedy to befall a club, particularly after their well-publicised financial difficulties over the last year or so...
...happily I hear that they are very well insured.
Ringway Golf Club in leafy Hale Barns was similarly struck by misfortune in 1987 when their ramshackle old Victorian clubhouse very sadly burned to the ground.
The new one which was completed a year later is magnificent.
(http://i247.photobucket.com/albums/gg157/dantovey/ringway1_zps72787c5d.jpg) (http://s247.photobucket.com/user/dantovey/media/ringway1_zps72787c5d.jpg.html)
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Tell the folks at McMahon group hello from me when you meet them. ;D
Honestly, if you discuss matters from your first board meeting on a public forum, you are in for an interesting three years. Don't you think the board room conversations deserve more privacy? I will not post hardly anything about my club on here the place is private and likes to be that way, and we are a bigtime success story at this time.
When you question what your boss wants to do you post about it on Facebook?
And if your dues are north of $5k, I bet you will be meeting these people http://www.mcmahongroup.com/Club/Scripts/Home/home.asp
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I recently sold my membership at a club that currently pushed a new clubhouse through. The scenario is that of a club with out of control spending, that is only going to spiral downward from here. The dues we already climbing exponentially, despite a full membership at 460 members. A vocal minority of members had tried to ram a new clubhouse through in 2010 but failed, only to resurrect the project again. It passed in Spring 2014 but I would say deceitfully. The board pushed a dues increase for 2014 of $42 announced in Dec. 2013 and gave the rationale that due to the new clubhouse not passing they would need to start accruing funds for future HVAC, Roof, etc. Quickly then in 2014 a vote for new clubhouse was proposed again, this time noting the dues would only increase by $83/mo. This passed, no landslide, but passed for a $10 million budget - for only $83/mo. more. Of course, to help with this was the $42 increase already in measure, $32/mo. which was for prior course renovation that retired in April 2014. So really this was $157 more than the prior year (as there would have been a $32/mo drop as debt retired) but as as well know dues never go down. Dues went from under $400, now to $622/mo in just 4 years. Add F&B at $68/mo and you have $700/mo. before you put a peg in the ground. FYI: Golf in this location is Northern, ie) 7 months.
I have since left, but some friends still at the club noted the budget has risen now to accommodate the plans chosen to $11.5 million, and the time table is close to 2 years for completion. As noted above, with change people will leave. The club is owned equity with a clause of needing a buyer to get out of your membership. They can't sue everyone. If 10 people leave, dues just went up $13/mo. and if 50 leave dues just went up $76/mo. Thus the downward spiral. I can just see the email to the remaining membership when they need to raise more funds to finish the bathrooms at the end of construction. Rumors are that some of the added benefits in your dues (range, locker, club storage, shoe shine) will now be a la cart with the new clubhouse - more shady shift of dues.
Stick to what you know....Good Golf. I agree with the notion mentioned above, upgrade where needed. Add a great porch, and some fire pits.
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Michael,
Remember the building 'rule'...
...double the time, double the cost.
Suggest contacting clubs that have done a reno in the last 10 years and get their feedback.
Hindsight is 20/20.
The key is to have that hindsight beforehand.
Good luck
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;D 8) ;)
Build the deck and throw a cheap 😙 but nice firepit in . . Forget the clubhouse , if it ain't broke you know .
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I would not advance on any of this until every department head of your club provides a 20 year asset reserve schedule for the timely replacement of all the assets under their management.
You may find that some big expenses are coming up in the next ten years.
You should also have a golf course architect develop a plan for refurbishing/updating the golf features: bunkers, tees, asphalt paths, bridges.
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Michael,
As others have already suggested, fully building out a new structure, especially if you are a golf club is a waste of money. All good golf clubs are quaint. If your club decides on a renovation, I would only do so after raising half the money up front. Putting it all on a dues increase or waiting until you can pay off in full in one lump sum are both impractical.
John K is right about board people, their motivation is grinding the axe.
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It has been my experience that the best way to approach these issues is focusing entirely on the money as a precursor to doing anything. Debt is the enemy of any golf club/country club. If members want to take these actions, then the directors need to find ways for the club to either raise more money or save money in a systematic manner before spending the money. Once the money is there, each project can be completed. Further, be very aware of all expenses that are coming down the pike. Boards often spend money on a project, later to tell the membership that some sewer, irrigation or other expenditure was a surprise.
Many directors want to spend money in their clubs whether they have it or not. These same people would never do the same in their personal accounts. However, spending the club's money allows them to be a spendthrift at a point in their life (which everyone quietly wants to do). This is what you have to fight against within your club.
How do you raise or save the money?
Some clubs do it by charging a $25/$50 per month "Capital Fund" where the money is immediately separated and dedicated for exactly these issues. This is far preferable to an assessment, where you lose a ton of members and often only create larger problems.
Other clubs simply become more financially frugile and save the money over time (it is amazing how quickly you can save money by cutting certain "luxuries" within the club). Determine what defines your club (ie. the golf course, the grille room, etc...) and don't cut those items. Then determine what are just "extras" and see what you can do without.
Lastly, and possibly most important, by raising or saving the money first, the club will be required to prioritize the projects and determine those that are most important. For instance, in your example, the roof and HVAC need to come first, followed by the kitchen and outdoor deck, followed by the pro shop (I don't know why any club would put money in their pro shop?).
Good luck.
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is your present facility pretty 'clutzy' looking?
is there a need/desire/want to expand the overarching program (more social events or a big new locker room)?
do you just want a new paint job or a new roof? or just a new 'look'? or just some new furniture? or some new carpet?
as I have observed on this web site over time, the food service program, is a big money pit.
developing a questionaire for the membership (or even agreeing to the appropriate questions) is a formidable task.
to straw pole a 'major renovation' vs 'new building' does not get at the primordial urge to consider the undertaking. dig deeper.
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Your "weakest link" as you put it, is very likely your competitive advantage.
Your ability to charge only 50% of what your main competitors charge is huge.
Less is more. You're positioned perfectly for continued success.
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One more thing... make sure you put EVERYTHING into your new facility analysis to include the additional manpower necessary to run the new clubhouse once it reopens. Do not make the mistake of assuming folks will start spending their faces off because of a new building. You will still be the same club, with the same culture. And don't fall victim to "we will bring in tons of banquet business!" Assuming 40% costs and 30% labor, a $60,000 F&B manager requires about $200,000 in banquet sales to break even (banquet sales BEFORE tax and gratuity).
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Furthermore, I love capital funds and F&B surcharges. A capital fund implies someday it will go away (which it never does). An F&B surcharge (not a minimum) implies that it goes to the servers (which it doesn't). Call them what they actually are... DUES!
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Furthermore, I love capital funds and F&B surcharges. A capital fund implies someday it will go away (which it never does). An F&B surcharge (not a minimum) implies that it goes to the servers (which it doesn't). Call them what they actually are... DUES!
My buddy spends four months every summer at Lake Tahoe. Every month when he's gone, doesn't step foot on the property, his bill is $650. The dues are $325 with tax. That's a lot of not well hidden "dues."
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Make sure to build your new clubhouse right around the time this historically overvalued equity market shits the bed.
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Has anybody here ever heard of this one. I just heard this story, and was dumbfounded:
Major project. Huge pricetag. Vote goes the members. The options are:
1. I approve the project
2. I disapprove of the project and hereby resign.
Holy cow...
At my home club, 5 years or so ago we had a second special general meeting to vote on a new clubhouse, and it was voted down, just as it was in the first special general meeting. The entire Committee resigned. That was a good result.....
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I recently sold my membership at a club that currently pushed a new clubhouse through. The scenario is that of a club with out of control spending, that is only going to spiral downward from here. The dues we already climbing exponentially, despite a full membership at 460 members. A vocal minority of members had tried to ram a new clubhouse through in 2010 but failed, only to resurrect the project again. It passed in Spring 2014 but I would say deceitfully. The board pushed a dues increase for 2014 of $42 announced in Dec. 2013 and gave the rationale that due to the new clubhouse not passing they would need to start accruing funds for future HVAC, Roof, etc. Quickly then in 2014 a vote for new clubhouse was proposed again, this time noting the dues would only increase by $83/mo. This passed, no landslide, but passed for a $10 million budget - for only $83/mo. more. Of course, to help with this was the $42 increase already in measure, $32/mo. which was for prior course renovation that retired in April 2014. So really this was $157 more than the prior year (as there would have been a $32/mo drop as debt retired) but as as well know dues never go down. Dues went from under $400, now to $622/mo in just 4 years. Add F&B at $68/mo and you have $700/mo. before you put a peg in the ground. FYI: Golf in this location is Northern, ie) 7 months.
I have since left, but some friends still at the club noted the budget has risen now to accommodate the plans chosen to $11.5 million, and the time table is close to 2 years for completion. As noted above, with change people will leave. The club is owned equity with a clause of needing a buyer to get out of your membership. They can't sue everyone. If 10 people leave, dues just went up $13/mo. and if 50 leave dues just went up $76/mo. Thus the downward spiral. I can just see the email to the remaining membership when they need to raise more funds to finish the bathrooms at the end of construction. Rumors are that some of the added benefits in your dues (range, locker, club storage, shoe shine) will now be a la cart with the new clubhouse - more shady shift of dues.
Stick to what you know....Good Golf. I agree with the notion mentioned above, upgrade where needed. Add a great porch, and some fire pits.
Very interesting set of circumstances...
...how did it play out?
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One more thing... make sure you put EVERYTHING into your new facility analysis to include the additional manpower necessary to run the new clubhouse once it reopens. Do not make the mistake of assuming folks will start spending their faces off because of a new building. You will still be the same club, with the same culture. And don't fall victim to "we will bring in tons of banquet business!" Assuming 40% costs and 30% labor, a $60,000 F&B manager requires about $200,000 in banquet sales to break even (banquet sales BEFORE tax and gratuity).
🫵🫵🫵
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I didn't see any info on the financial health of the club. Will you pay for the new clubhouse from a reserve fund? From member assessments? Or by taking on debt?
Given the economic challenges facing clubs today, taking on debt is very dangerous and can prove to be the kiss of death.
First, build an RFP and get solid cost figures. Multiple contractor estimates. – being careful on what could happen with cost overruns.
Then, test how how serious the supporters are by determining how much of an assessment or dues increase that they are willing to agree to. Take the going-in position of NO DEBT”.
Then poll the non-supporters as to what they would do, should the plan go through. These are the members who could leave and start the club's financial death spiral.
Build some financial models. Include worst-case scenarios. Cost overruns. Loss of membership numbers. Consider other capital needs and course improvements.
It's too easy to simply ask members “Hey, how'd you like a fancy new clubhouse?”, without asking them to pony up some serious money up-front.
Finally, realize that you are abandoning your stated mission of being a “golf only club” and moving into the same market as your competition (people who want more than “golf only”). Ready to compete in that space?
BTW – How can the club be below full membership, yet have a waiting list?
Great advice never goes out of style🙌.
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Well, there is no right answer, particularly from armchair QB's like myself.
I am also in a position of governance at a club that has made a significant investment in total facility upgrades. It has been very well received. My only comment (advice really) is not to be led too much by anecdotes, which often originate from a small group of dissatisfied members.
And remember that surveys are attitudinal, event/club participation is behavioral. Clubs run on behavior, not attitudes.
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Try to discern whether the members see themselves as owners or customers. If customers is the answer look out. If owners is the answer they will invest.
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is your present facility pretty 'clutzy' looking?
is there a need/desire/want to expand the overarching program (more social events or a big new locker room)?
do you just want a new paint job or a new roof? or just a new 'look'? or just some new furniture? or some new carpet?
as I have observed on this web site over time, the food service program, is a big money pit.
developing a questionaire for the membership (or even agreeing to the appropriate questions) is a formidable task.
to straw pole a 'major renovation' vs 'new building' does not get at the primordial urge to consider the undertaking. dig deeper.
Can you get to a 98% concensus on what the new or re-worked building to do that it is not doing now?
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Is there any rule-of-thumb about how much debt is appropriate for a golf-centric private club?
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