PN25 FAQ p3

PROJECT NEXT 25

Frequently Asked Questions

UPDATED FEBRUARY 2024 *PAGE 22

DO WE REALLY HAVE TO DO THIS? The easy answer is no. The golf course will not cease to exist in the near future if the members choose to delay or forgo renovating the greens and bunkers. It is essential to know that although there is a choice, there are ramifications to both. Fact: our greens have exceeded their useful lifespan. The percentage of poa annua on our putting surfaces creates an imminent threat of significant turf loss in the event of a bad winter or hotter than normal summer. The decision to not resurface the greens comes with the acceptance that we will, at some point soon, experience unplayable greens for the better part of a golf season. There is no quick, easy or cheap way to avoid this. Should we choose disruption in the form of a proactive renovation , the club will be controlling the disruption rather than hoping it doesn’t happen and reacting when it does.

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WHAT’S WRONG WITH POA? WHY DON’T WE JUST LEAVE WELL ENOUGH ALONE AND ACCEPT THAT WE HAVE POA GREENS? This is an option however it is important that the membership at Granite Golf Club is fully aware of the risks involved in choosing this path. Poa Annua, or annual bluegrass, has the ability to perform very well as a putting surface. The real issue is how this turf responds to periods of stress and environmental pressures. Poa is the dominant putting green turf on the west coast with temperate climates. Pebble Beach being a perfect example.

Northern California and the high-end properties on the west coast of Canada do not experience harsh winters nor do they experience long stretches of extreme heat like we do in Southern Ontario.

The key point here is simple, Poa dies under ice and poa fails during periods of extreme heat.

Bentgrass is engineered to perform and thrive during periods of environmental stress.

Bentgrass requires less water, fewer chemicals and less fertility to thrive. Bentgrass is a far more environmentally friendly turf and a far superior playing surface.

This is a choice to accept the risk inherent with poa greens or to choose to elevate and mitigate risk with the install of a superior product.

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WE ARE GOING TO LOSE TWO SEASONS OF GOLF! Incorrect. The only time the golf course will be fully closed is the month of October in 2026, and the month of May in 2027.

Let’s break down this project by month.

2026 opening day: FULLY OPEN May: FULLY OPEN June: FULLY OPEN July: FULLY OPEN beginning of August: FULLY OPEN mid August: ONLY front 9 closed September: ONLY front 9 closed October: FULLY CLOSED

2027 May: FULLY CLOSED June: ONLY back 9 closed July: FULLY OPEN, project complete PAGE FIVE

TIMELINE Mid-Aug 2026

Early Oct 2026

Spring 2027

Early Summer 2027 PAGE SIX

ACCESS TO BACK 9 AND PRACTICE FACILITIES ONLY Front 9 work begins: stripping and resurfacing green plus excavation and rebuild of bunkers

WORK ON BACK 9 BEGINS, WHILE WORKS CONTINUE ON FRONT 9 Course closed approximately 4 weeks early. Access to practice facilities and clubhouse maintained.

FRONT 9 READY FOR EARLY JUNE OPENING Focus on completing back 9 and preparing new front 9 greens for opening

PROJECT COMPLETE All 18 holes open for member play

2026 OPENING DAY

MAY

JUNE

AUGUST 1 - 15

JULY

FULLY OPEN FULLY OPEN FULLY OPEN FULLY OPEN FULLY OPEN

AUGUST 16 - 31

SEPTEMBER OCTOBER

BACK 9 OPEN

BACK 9 OPEN

FRONT 9 CLOSED

FRONT 9 CLOSED

CLOSED

2027 MAY

CLOSED

JUNE FRONT 9 OPEN BACK 9 CLOSED

JULY

AUGUST

SEPTEMBER

OCTOBER

FULLY OPEN

FULLY OPEN

FULLY OPEN

FULLY OPEN

PROJECT COMPLETE

OUR GOLF COURSE IS ONLY 25 YEARS OLD, IT'S IN GREAT SHAPE, WHY DO WE NEED TO DO ANY RENOVATION? At first glance it is easy to look at the club as young. There are many clubs in the GTA that have been around for far longer. What is important here is not the age of the club but the age of the assets. We are a golf club, and the greens are what any great golf course is judged on. Many of the private clubs in the area have reinvested in their on-course assets in the last 15 years, we have not. This means that although they may have been around longer than GGC their key assets are younger, more modern, and less prone to age related risks.

Our golf course is in great shape thanks to the efforts of our maintenance team and years of proactive maintenance such as tree removal, aeration and cultural practices. We would be in a much different position had we accepted the status quo. PN25 is another example of a proactive move to protect and advance our product rather than react to an impactful failure. Planning and proactive action will serve to not only reduce disruption, and it will also control costs.

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WHAT IS THE PROJECT SIZE AND SCOPE? PN25 addresses two large assets on the property. The greens and bunkers. The idea is to hit this project head on and get what needs to get done as quickly as possible. The greens and their surrounds will be stripped of all the existing turf, fumigated to remove any undesirable poa annua seed in the soil, and seeded to a modern variety of pure bentgrass. We will do 9 holes at a time starting with the closure of the front-9 in late August 2026. We will then follow the same process on the back-9 in late September 2026. The bunkers will be excavated, reshaped, and lined with a modern porous concrete liner product to reduce contamination and improve drainage.

From there new proangle bunker sand will be installed.

The time-consuming part of this project is establishing the new turf on the greens to a level where they can withstand and perform to expectations without damage to the product. The construction phase of this project will be completed long before the greens are ready for member play.

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WHY DO ALL THE GREENS HAVE TO BE DONE? JUST FIX WHAT NEEDS TO BE FIXED. This is an all or nothing project. The disruption caused by only doing a few greens at a time or just rebuilding #7&8 is not worth the effort.

Putting surfaces are designed to be consistent. To only address a few greens creates inconsistencies throughout the golf course. A green that is 25 years old will perform far differently and will require different inputs than a green that is brand new. There is nothing to support that a phased in or partial approach to this investment is an appropriate course of action.

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NUMBER 7 GREEN HAS SUNK OVER TIME, ARE YOU GOING TO FIX THAT ONE? Yes. #7 green has settled over the years and requires a complete rebuild. This, along with minor adjustments to #8 green are the only material changes to the putting surfaces within the scope of the project.

WILL THE BUNKERS BE CONSISTENT FROM A PLAYABILITY PERSPECTIVE? Bunkers have a finite life. The USGA report supported our position that bunker quality had deteriorated, and it is time for replacement. Bunker sand at high-end facilities should be slated for replacement every 10-12 years, we are past that threshold. A renovation of the bunkers using the Billie bunker technology coupled with new pro-angle sand, will elevate playability and improve consistency.

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HOW DOES PN25 AFFECT THE FOUNDING MEMBER AND CHIP LIABILITY? The Board is recommending this project to invest and protect the longterm sustainability of our number one asset - the golf course. There are two liabilities on the Club's balance sheet 1) the Founders liability; and, 2) the Club House Investment Program (CHIP).

The Founders liability only qualifies to be payable when the following three triggers are satisfied.

1) the Club is at 575 senior paying members; 2) it is determined to be in the best interest of the club; 3) Founders liability is to be paid from new member entrance fees.

The Club House Investment Program (CHIP) ranks subordinate to the Founders liability - meaning it can only be repaid AFTER the Founder liability is satisfied.

At present the Club has 475 Senior paying members. The short and long term forecast for new member growth concludes that the Club will not come anywhere close to the 575 member target in the future, rendering the Founders liability as highly unlikely it will ever get repaid. The CHIP liability ranks behind the Founders liability and it is even more unlikely to be repaid.

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WHY USE UP ALL THE CLUB'S CASH RESERVES TO EMBARK ON A PROJECT OF THIS SIZE? The Board and Management are keenly aware of the size and scope of a project this size.

Using conservative forecasts for the project as well as responsible forecasts for membership growth, it is expected the Club will have over a million on the balance sheet following the project. This is aligned with the Club's financial philosophy target of maintaining a conservative financial position.

WILL THERE BE A MEMBER ASSESSMENT TO FUND THIS PROJECT? Project next 25 is a self funding project using the cash reserves on the balance sheet only. There will be no member assessment and no bank debt incurred to fund the project.

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WILL THERE BE A DISCOUNT TO MY ANNUAL DUES IN 2026 AND 2027 TO OFFSET THE REDUCED ACCESS TO THE CLUB? No. As detailed, the Project next 25 timeline expects full closure of the golf course in October of 2026, one month earlier than normal. The following year, weather dependent, we anticipate opening the front 9 one month later than normal. Annual dues cover the annual operating costs for the club. The Clubhouse, proshop, practice facility will remain open during those months. Our Course superintendent and his staff will require full complement to ready the golf course for full operations as swiftly and smoothly as possible. Every effort will be made by management to maintain service levels and control costs during this period.

DOES THIS MEAN WE HAVE TO LET IN MORE MEMBERS TO FUND THIS PROJECT? No. The funding model for this capital project is sound and based on capital reserves collected over the years from new member entrance fees and, to a lesser extent, annual capital dues. Our membership philosophy remains unchanged where we look to replace attrition annually while responsibly building upon our senior membership count. The recent increase to initiation fees shows that the club is in a strong financial position and the product demands a higher price tag.

We understand at Granite Golf Club our two most important assets are our course and our amazing access to the tee. PN25 will further enhance our course without impacting our industry best tee access for our members.

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WILL THE CLUB ARRANGE FOR RECIPROCAL ARRANGEMENTS WITH OTHER CLUB'S IN THE GTA TO PROVIDE ACCESS TO HIGH QUALITY GOLF DURING THE PERIOD OF DISRUPTION? Due to the renewed rise in popularity of golf, access to the tee remains a challenge at all private clubs in the GTA. Given the size of our membership, it is not feasible nor practical to find adequate space at local GTA club's to accommodate our membership requirements. The golf professionals intend to organize Club sponsored travel events in the fall of 2026 and Spring of 2027 to enrich member experience abroad.

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WHAT ARE THE RISKS OF A PROJECT THIS SIZE? The risks of a project this size are numerous but manageable.

Financial risk - we have conservative estimates in place.

Operational - we have scoped the project using experts in the field to assist with expectations.

We intend to secure the contractor with the highest reputation, expertise, and track record in the province to conduct the project. We have an engaged and expert senior management team that has been through this process.

Weather - this we can't control.

IS THERE A MEMBERSHIP VOTE ON THIS MATTER? Yes, members will be asked to approve this capital initiative at the next AMM in March of 2024.

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Questions from the Town Hall

WHY ARE WE DOING THE GREENS AND BUNKERS BEFORE THE IRRIGATION SYSTEM? Asset upgrades and replacements are prioritized based on two criteria.

One, the importance and impact to the business and two, their performance and expected life span. At a single sport private golf club we are acutely aware of the high level our products are expected to perform at. When prioritizing capital spending, management, and the board looks to not only protect our existing assets but also, when possible, enhance said assets and the members’ experience. At any golf course the playing surfaces and the bunkers are high value assets and protecting and enhancing through responsible injections of capital ensure we maintain and elevate for current and future members. The irrigation system, although dated, is not at the end of its useful life, the greens and bunkers are. We do have a plan to replace the irrigation system in 2032-33 and the plan is to be able to replace this asset without the need for member assessment or bank loan.

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WON’T THE POA JUST COME BACK? The quick answer is yes, poa is relentless. The intent of PN25 is to resurface the existing putting surfaces that have served us so well over the last 24+ years. With new technology, improved agronomic infrastructure and modern tools at our disposal it is the assumption that with responsible management we will be able to enhance and prolong the performance of the greens at Granite Golf Club well beyond their 25 year lifespan.

DOES THIS INCLUDE THE PRACTICE GREENS AND BUNKERS? Yes. The preliminary pricing of the project suggests that we will be able to resurface and renovate all of the putting surfaces and bunkers on the property within the allocated budget of 4-million dollars. Should we find ourselves in a position where time and funding is an issue, priority one is to complete the greens and bunkers on the main 18-holes. At this point we do not anticipate a situation where we will be unable to include the practice facilities in the scope of PN25.

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WHY VOTE NOW IF THE PROJECT DOESN’T START FOR ANOTHER 3 YEARS? The reality in the golf business today is there are very few contractors in Ontario who are able to complete a project of this size, to the level expected, within the very tight timeframe proposed. Due to this reality the Club requires approval from the membership before beginning the process of procuring, scheduling and confirming an August 2026 start date.

WHY START IN AUGUST? WOULDN’T IT BE BETTER TO SEED THE GREENS IN THE SPRING? Seeding in August is actually the ideal time to maximize germination.

Planting bentgrass in the spring is problematic since the delicate seedlings would be exposed to summer heat stunting progress and risking injury. By the beginning of August daily temperatures are starting to decrease maximizing progress and minimizing risks to the turf.

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WHAT IF THE PROJECT GETS VOTED DOWN? WHAT ARE THE OTHER OPTIONS FOR THE 4 MILLION DOLLARS? Should the proposed capital project not procure the required support at the AMM in March the plan will be to retain and grow the capital reserve for a future greens and bunker renovation project. As pointed out in the Town Hall, our greens are at an elevated risk of failure in the event of a severe winter. This is not a matter of if the greens will suffer an impactful failure, it is simply a matter of when. When this does happen the Club will require funds to react and repair and this will most likely cost more than the proactive and preplanned 4-million allocated for PN25 in 2026.

WILL WE BE REMOVING AND REDESIGNING BUNKERS AS PART OF THIS PROJECT? We currently have over 120,000 square feet of bunkers. To put this number into perspective, the average private golf club in the GTA has, on average, around 70,000 square feet of bunkers. Why does this matter? Well bunkers are by far the most labour intensive and expensive part of the golf course. The Maintenance Department allocates more resources to the bunkers each year than any other area of the golf course. PN25 will give us an opportunity to evaluate the size, location and strategic relevance of every bunker on the property. The intent will be not to necessarily remove bunkers however there may be opportunities to relocate, resize, and possibly eliminate should a few bunkers be identified as unnecessary. This will become more clear as we move into the planning, design and execution phase of the project.

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UPDATED FEBRUARY 2024

WHAT CONTROLS ARE IN PLACE TO PROTECT AGAINST COST OVERRUNS? Conservative preliminary estimates confidently price the project, in its entirety, at ~4million dollars. Inflationary increases have been built into the budget along with a contingency plan to manage variables that will inevitably arise. The Board has committed to the membership that the project will be completed without utilizing bank debt or member assessment.

Responsible oversight and cost management along with finite financial resources will protect against potential cost overruns during the completion of the project.

WHY DON’T WE JUST COVER OUR GREENS LIKE OTHER CLUBS DO? Covering or ‘tarping’ greens does not guarantee success against winter injury. Winter covers are expensive, labour intensive, and highly vulnerable to failure. This is an option for clubs who are financially constrained or do not have the proper environments to grow high performing bentgrass greens. At Granite we have both the growing environments and expertise to manage bentgrass greens and the financial ability to fund such a project with cash on hand. Winter covers are not a solution, they are a last resort.

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HAVE WE CONSIDERED COMPLETING THE PROJECT OVER MULTIPLE YEARS IN THE OFF SEASON? A project of this size cannot be completed during the offseason. Seed needs to grow, sod needs to be laid, and the ground cannot be properly shaped when frozen. We will of course take advantage of favorable weather in the shoulder seasons to expedite completion however it would be irresponsible to assume mother nature will cooperate.

Spreading a project like this over a number of years will inevitably result in construction fatigue, cost overruns, a poor finished product, and most importantly, years of disruption for our members. The recommended course of action is to complete this project, in its entirety, as quickly and efficiently as possible as outlined in the supplied preliminary construction schedule.

WILL THE RANGE, SGA, AND CLUBHOUSE BE OPEN DURING PN25?

Yes. All of the practice facilities and the clubhouse will remain open for member use during the project.

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