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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.
Quote from: J_ Crisham on November 25, 2014, 05:31:35 PMDo 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.
Quote from: Bill_McBride on November 25, 2014, 08:08:30 PMQuote from: J_ Crisham on November 25, 2014, 05:31:35 PMDo 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,
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!
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 project2. I disapprove of the project and hereby resign.Holy cow...
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.
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).
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?
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.