LAKE NAOMI CLUB HORIZON PLAN PHASE TWO PROPOSAL LOGAN STEELE COMMUNITY CENTER
April 4, 2016
Dear Lake Naomi Club Members, In 2013, the Club celebrated 50 years of uncompromising Member services, top-tier amenities and the creation of extraordinary lifelong family memories. The Lake Naomi Club continues to be at the forefront of recreational communities in the mountains of Northeastern Pennsylvania and throughout the United States. In order to maintain this platinum level of Member satisfaction it is imperative that the Club look ahead and prepare the facilities for the future. The Horizon Plan (HP) and the Strategic Financial Plan (SFP) are critical steps to ensure this outcome. This second booklet in the series provides an overview of Phase Two and an updated proposed Strategic Financial Plan to help Members make an informed decision in the upcoming vote. Taking direction from the Member Survey and suggestions, the Horizon Plan is a tiered approach to repair and update the Clubs’ amenities to meet the needs of our expanding Membership. The Plan is broken down into four manageable phases: Phase One (completed in 2015), Timber Trails Golf Center, Timber Trails Clubhouse and Timber Trails Pool; Phase Two, Logan Steele Community Center; Phase Three, Beaches and Lake Naomi Tennis Center; Phase Four, Lake Naomi Clubhouse. Each phase requires approval through a membership vote. Before asking for this approval, all Members will be informed as to the scope and cost of each Phase and the cost to the Members. The membership vote for Phase Two is scheduled for April 2016. In order to avoid a large Member assessment that when combined with the existing fee structure could become a deterrent to new Members, the Finance Committee has proposed the Strategic Financial Plan to pay for the first three phases. The SFP leverages the favorable terms of our existing loan to secure the funding for these projects with the plan of paying it back with existing revenue source and the annual Capital Projects (CP) Fee. The CP Fee will be adjusted as the Membership approves each phase of the Horizon Plan as detailed in the SFP Projections enclosed in this booklet. All phases of the Horizon Plan are important to ensure that the Club continues to be a thriving and active Community. We ask you to become informed about all aspects of the HP and the SFP so you can cast an informed vote on each phase as they are presented for Membership approval. Contact us if you have questions about any aspects of the plans. Very truly yours, Long Range Planning Committee, Finance Committee, Board of Governors and Board of Trustees
Members Involved The following members have dedicated their time and energy to develop this plan.
BOARD OF TRUSTEES Connell McGill, President Robert S. Mills, Jr, Vice President Cary S. Levinson, Secretary George E. Bernardin, Treasurer Michael Christian Kathryn J. Hyatt Brian J. Snyder
FINANCE COMMITTEE Steve Bram Timothy Chase Constance Delnero Robert Deluca Kathleen Manzella Bob Ray, Chair Edward Sohayda Allan Spielman Frederick Tim
BOARD OF GOVERNORS Carolyn Kopchains, Chair Howard Cooper, Vice Chair Denise Alexander, Secretary Steven Amend Carol Ann Parisi Dave Carbone Mary Kay Posselli Randy Compton Bob Ray Anthony DeFranco Andy Romo Frank Delnero Carl Rosenfeld Victoria Flick Carole Rubley Robert Forrester G.H. Salazar Thomas Gilmore Jay Stevenson Steve Harker Daniel Tabor Mark Ierardi Rob Wolf Jerry Merola Jim Zagelmeyer Bill Neifert LONG RANGE PLANNING COMMITTEE Daniel Tabor, Chair Denise Kellerk Robert Baechtold Kathleen Long Steve Bram Richard Metzger Sean Conry Dominic Parisi Howard Cooper Barry Trachtenberg David Guba
Mission Statement Our mission is to provide our Members with a premier year-round family-friendly community offering recreational activities in an environment that fosters an appreciation of nature’s beauty and encourages the formation of lifelong friendships.
Pledge • • • • • •
Preserve the lakes, streams and woodlands in an environmentally responsible manner Strive to provide Member services and facilities that exceed expectations Promote a spirit of mutual respect among Members and Staff Operate openly, transparently and fiscally responsibly Anticipate the needs and desires of our ever evolving community Provide the framework that supports Member participation in the governance of the community
Table of Contents
Phase Two - Logan Steele Community Center (Renovation)
Page 1-7
Proposal for Locker Room Expansion
Page 2
Proposal for Aerobic Studio Space and Fitness Center Expansion
Page 2
Proposal to Address Need for Shallow Water Area
Page 3
Proposal for New Pavilion
Page 4
Proposal for Addressing Additional Issues
Page 5
Phase Two Proposed Construction Schedule
Page 5-6
Strategic Financial Plan
Page 8
Strategic Financial Plan Projection
Page 9-10
Phase Two Q & A
Page 11-13
Phase One - Celebration
Page 14
Phase Three - Lake Naomi Tennis Center, Staff Housing, and Beaches
Page 15-16
Phase Four - Lake Naomi Clubhouse
Page 17
Land Acquisitions
Page 18
LAKE NAOMI CLUB HORIZON PLAN PHASE TWO - LOGAN STEELE COMMUNITY CENTER ALL PROJECTS ARE SUBJECT TO APPROVAL BY THE MEMBERS OF LAKE NAOMI CLUB
Phase Two: Logan Steele Community Center The Membership’s overwhelming satisfaction and support of the Community Center is undeniable. Members using the facility have identified areas that need some additional attention to meet the needs of our growing community. The expansion of aerobic and fitness facilities, addressing the need for shallow water areas in the pool and increased space in the locker rooms are a few items of concern. In order to expand these areas, there will be a need to displace some of current activity rooms. This space can be replaced and enhanced with the addition of a large pavilion including offices, restrooms and a stage. The pavilion would be located on the north end of the property and would enhance the Club’s camp, teen, pre-teen and family programs.
- Page 1 -
Proposal for Locker Room Expansion Combine the current Women’s and Family Locker Rooms to create an expanded Men’s Locker Room. Use the current Men’s Locker Room and two Activity Rooms to create a new Women’s Locker Room and three individual Family Locker rooms. Women’s Locker Room Men’s Locker Room Family Locker Room (3 individual spaces)
Existing Space 617 ft² 484 ft² 230 ft²
Proposed Space 1167 ft² 868 ft² 513 ft²
Proposal for Aerobic Studio Space and Fitness Center Expansion Close in the open air pavilion to create a new Aerobic/Group Exercise Studio, move the spin bikes downstairs to the existing Aerobic Studio and add on an addition to expand the Fitness Center.
Aerobic Studio Fitness Center Spinning Room
Existing Space 790 ft² 2662 ft² 489 ft² Upstairs
Proposed Space 1314 ft² plus 150 ft² storage 3912 ft² 790 ft² next to Fitness
- Page 2 -
Proposal to Address Need for Shallow Water Area Build an addition to the existing Aquatic Facility to house an enlarged pool. The new pool area will add 1133 ft² of pool space with a zero entry and a few water features that can be available year round.
This will provide a much needed and requested kids play area away from access ramp.
•
The intended purpose of the ramp is to provide a gentle, zero-entry access for all Members without the obstacle of playing children.
Margaret Naughton
•
- Page 3 -
Proposal for New Pavilion Add a new pavilion in the green space in the center of the north dirt parking lot. Pavilion will include indoor storage and office space to house the summer Recreation Program.
JAN. CL. P-005
RESTRM P-002
This new pavilion will add: • •
4264 ft2 of covered recreational space.
RESTRM P-003
STORAGE P-007
RESTRM P-004
KITCHEN P-006
PAVILION P-012
PAVILION P-001
OFFICE P-009
1008 ft2 of office, storage, and utility space.
OFFICE P-010
ARTS & CRAFTS P-008
OFFICE P-011
Continued Growth of Day Camp Program
- Page 4 -
Proposal for Addressing Additional Issues Use some of the remaining space in the open air pavilion, proposed to be closed in, to accommodate additional needs.
- Added additional storage for large equipment with Double Doors in the Multi-Purpose Room - Added two office spaces for CafĂŠ and Summer staff - Added Staff Break area to free copier room space.
Phase Two Proposed Construction Schedule From the day the doors opened at the Logan Steele Community Center, it has become a vital part of the Lake Naomi Club Community. Working with contractors we hope to make the proposed renovations as least disruptive as possible to our Members. Most of the construction will be completed in isolated areas then tied into the existing facilities during the normally scheduled November shutdown. This will allow us to continue to operate the building throughout the construction. The following is our anticipated building timeline (subject to change). Management will keep the Members up to date with building closures and changes via email blast, Reflections or as always feel free to contact the Administrative Office or the Community Center.
- Page 5 -
2
44
1E 1E
MEN'S LOCKER RM.
FITNESS
1A NATATORIUM
3B 3B 3A SPINNING
1C 1C AEROBICS
1B WOMEN'S LOCKER RM.
Sequence Summary 1A – Partially drain pool, construct pool addition and modify pool shell. Possible foundation begins in June. 1B – Construct Women’s and Family Locker Rooms in existing activity rooms, closing Men’s locker room and maintain existing Women’s and Family Locker Rooms. 1C – In-fill existing pavilion for the construction of the aerobics studio and admin spaces. 1D – Construct new stand-alone pavilion including new utilities from the building. Possible foundation begins in June. 1E – Construct fitness addition while Fitness Center stays in operation. 2 – Demo Women’s and Family Locker Room, construct Men’s locker room. 3A – Route ductwork in Fitness Center to Spinning Room, paint and carpet. 3B – Connect fitness addition to existing Fitness Center. 4 – Complete Men’s Locker Room Renovations.
Action Item 1A 1B 1C 1D 1E 2 3A 3B 4
July
Aug
Sept
- Page 6 -
Oct
1D 1D PAVILION
Nov
Dec
Phase Two Summary • Membership Vote in April 2016. • If approved by Membership, minimal construction to begin in June 2016 with full construction commencing in September 2016. • Anticipated completion by January of 2017.
Total cost estimated not to exceed $3,195,632 with $208,000 funded from the Capital Replacement Reserve Fund. Total cost to Capital Projects Fund: $2,987,632 - Page 7 -
Strategic Financial Plan The Strategic Financial Plan (SFP) provides the structure to finance the improvements defined in the Horizon Plan. The Finance Committee, Board of Governors and the Board of Trustees have approved the SFP. In 2013, the Club requested and received approval of an $8 million loan commitment from Peoples Security Bank & Trust. This is the same bank that financed the Community Center, Lodge, Park, and the parking lot at the Lake Naomi Clubhouse. The loan commitment, after overwhelming Membership approval, was used to purchase the former Ice House Property (we called “Gateway”) and completed Phase One of the Horizon Plan. It is anticpated to be able to fund Phase Two and Phase Three. Phase Four, with an expected vote date in 2019, will require a separate funding method to be determined once the project and its cost are finalized. Each Member should realize that the loan funds will not be borrowed unless and until each Phase is approved by the Members. The Club is under no obligation to borrow the funds. Any funds we borrow under this commitment will be added to the existing loan, under the following favorably renegotiated terms: Interest rate: 5% to 7% until October 2023 6% to 8% from October 2023 until October 2028 A rate to be negotiated from October 2028 until February 2, 2033. Maturity Date: February 2, 2033. Repayment of Principal: Monthly payments adjusted annually based on fully repaying the loan by the maturity date. Repayment of the bank loan will be made from the following sources: • The assessment currently being paid by existing and new Members. These are the funds originally assessed for the Community Center, that we now call the Capital Assessment. • Operating Revenue from the Mountaintop Lodge. • Annual CP Fee.
- Page 8 -
Phase Cost Estimates
Strategic Financial Plan Projection
Acquisition of Gateway property Phase 1 (Golf, TTCH,TTP) Phase 2 (Comm. Ctr) Phase 3 (Tennis, Beaches, Staff housing) Total anticipated loan
Cost $584,276 1,570,000 2,988,000 1,150,000 $6,292,276
Date Added 9/1/2013- completed 2014/15-completed 09/16- if approved 09/17- pending approval
Cumulative $584,276 $2,154,276 $5,142,276 $6,292,276
Summary Annual per member CP fee required to service loan Cumulative cushion For comparison: estimated CP Fee for Phase One booklet Projection of Debt Service and Loan Balances Beginning loan balance Ending loan balance
Assumptions
Sources to Repay Loan Capital Assessment from existing members (net of refunds) New Members paying the full Capital Assessment Total Capital Assessment Operating Surplus from the Lodge CP fee Total payment sources Less debt service from amortization schedule Less Phase 1 and 2 costs paid from cash on hand Excess of sources over debt service (Cushion) Cumulative cushion
2014 $175
2015 $200
2016 $225
2017 $275
2018 $325
2019 $375
1,026,244
1,006,089
657,835
503,828
336,474
259,104
$175
$225
$275
$325
$350
$400
$4,132,484
$4,812,524
$5,401,878
$7,800,901
$8,674,291
$8,340,864
$4,812,524
$5,401,878
$7,800,901
$8,674,291
$8,340,864
$7,982,988
$214,002
$141,184
$115,537
$86,856
$86,856
$86,856
63,735
72,596
81,691
91,111
100,814
110,798
277,737
213,780
197,228
177,967
187,670
197,654
48,631
63,183
63,183
63,183
63,183
63,183
280,875
320,000
360,000
440,000
520,000
600,000
607,243
596,964
620,411
681,150
770,853
860,837
-291,321
-434,016
-568,665
-835,157
-938,207
-938,207
0.00
-132,842
-400,000
0.00
0.00
0.00
$315,922
$30,106
-$348,254
-$154,007
-$167,355
-$77,370
$1,026,244
$1,006,089
$657,835
$503,828
$336,474
$259,104
Number of members throughout projections period 1,600 Number of new members each year 60 Number of new members paying up-front and 5-pmt plan 51 Number of new members paying annually 9 Self-funding of refunds Maximum loan interest rates are applied present - 1/31/2028 8% rate was used for the period 2/1/2028 to 1/31/2033
- Page 9 -
(1613 - average from 2013-2015) (71 - average from 2013-2015) (Based on a 3-year average) (Based on a 3-year average)
Loan Terms
Strategic Financial Plan Projection
Interest rate: present until 1/31/2023 Interest rate: 2/01/2023-1/31/2028 Interest rate: 2/01/2028-1/31/2033 Loan due date: 2/01/2033
Minimum 5% 6% TBD
Maximum 7% 8% TBD
2020 $400
2021 $400
2022 $400
2023 $400
2024 $400
2025 $400
2026 $400
2027 $400
2028 $400
2029 $425
2030 $425
2031 $425
2032 $425
231,921
215,356
209,775
179,278
156,755
146,266
103,936
71,334
48,314
73,221
106,531
144,074
187,692
$400
$400
$400
$400
$425
$425
$425
$425
$425
$425
$425
$425
$425
$7,982,988
$7,600,354
$7,187,989
$6,745,388
$6,292,363
$5,804,918
$5,274,907
$4,700,271
$4,077,255
$3,402,550
$2,670,042
$1,875,860
$1,014,813
$7,600,354
$7,187,989
$6,745,388
$6,292,363
$5,804,918
$5,274,907
$4,700,271
$4,077,255
$3,402,550
$2,670,042
$1,875,860
$1,014,813
$81,286
$86,856
$86,856
$86,856
$86,856
$86,856
$86,856
$7,755
$6,721
$6,721
$6,721
$6,721
$1,551
$0
121,138
131,786
142,770
154,112
165,826
177,896
225,156
235,919
245,684
253,647
262,051
271,453
279,280
207,994
218,642
229,626
240,968
252,682
264,752
232,911
242,640
252,405
260,368
268,772
273,004
279,280
63,183
63,183
63,183
66,023
66,023
66,023
66,023
66,023
66,023
66,023
66,023
66,023
66,023
640,000
640,000
640,000
640,000
640,000
640,000
640,000
640,000
640,000
680,000
680,000
680,000
680,000
911,177
921,825
932,810
946,991
958,706
970,775
938,934
948,663
958,428
1,006,391
1,014,795
1,019,027
1,025,303
-938,360
-938,390
-938,390
-977,489
-981,228
-981,265
-981,264
-981,264
-981,448
-981,485
-981,485
-981,485
-981,685
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-$27,183
-$16,565
-$5,580
-$30,497
-$22,523
-$10,489
-$42,330
-$32,601
-$23,020
$24,906
$33,310
$37,543
$43,618
$231,921
$215,356
$209,775
$179,278
$156,755
$146,266
$103,936
$71,334
$48,314
$73,221
$106,531
$144,074
$187,692
Final payment 1/31/2033
- Page 10 -
$81,286
Phase Two Q & A Q1. How often does the Community Center really become crowded enough to warrant the additional space? The overcrowding of the Community Center is a daily issue in the summer months. There is a growing demand of our active Members for additional space for popular fitness equipment and aerobics classes. At the same time attendance at Kids Klub day camps continues to increase. Additional storage and administrative areas are needed to support these programs. Holidays and Special Events occur monthly (sometimes more) in the non-summer season leading to overcrowding conditions. Although that may not sound like all that often to some, we realize that these are the times most Members wish to utilize the facility and would benefit from the additional space. Because many Members ONLY come up in the summer and once per month during these special and peak times we often hear from Members that they experience overcrowding every time they are here. Experiencing an overcrowded amenity each time the family attempts to use their home is a disappointment, and some even say a deterrent to membership. Q2. Why do we need to use our indoor classroom space to add more bathrooms, don’t we have enough bathroom/locker room space already? When the Community Center opened, we immediately started to receive complaints of the locker rooms being too small. Men often stated that when there are more than two men changing at the same time it is uncomfortably too close. In addition, the size of the lockers are too small to accommodate the average size gym bags. Due to the location and proximity to the pool the two activities rooms are the ideal location for this expansion. The activity room space can be made up with the additional space being added with the outdoor pavilion. Q3. Is there really a need for additional family locker rooms? Currently with just one family locker room we often find a mix of simultaneous users. For example an elderly handicapped woman showering and changing after pool use is overlapped by a father and young son who are looking for a family friendly restroom at the same time. For this reason we need multiple rooms where showering, changing and toileting can be done privately in each locker room. Q4. What impact does losing the existing space, especially the outdoor patio, have on the Community Center? All the space changes have either been made up in other areas or will have minimal impact on the Community Center operations. The two activities rooms that will be used for the new locker rooms are rarely needed in the non-summer season and the new seasonal pavilion will provide the space for the classrooms. The space behind the fitness center and where the new pavilion will go are unused spaces. The aquatic patio space is underutilized with only a small number of people using it during the warm months. Expanding the indoor pool area into this space will provide room for the highly demanded shallow water area which will be used year round. Outdoor lounging experience is available at other amenities during the summer months as well. The ice rink will be expanded and moved to a location closer to the new pavilion. Q5. What is the main objective for expanding the pool? Adding shallow water for our young Members serves many purposes and provides the highest percentage of pool users what they need. Providing a kids play area will allow the ramp to serve its intended purpose; a gentle, zero-entry access for all Members without the obstacle of playing children. Special interest groups will also be able to spread out rather than share overcrowded space. Swim lessons, water aerobics, lap swimming and more active “playing” pool users would each have designated areas that would minimize any overlap and therefore increasing the experience for all. Members have overwhelmingly expressed the need to address aquatics over-crowding. A family friendly pool will give Members another option in the summer. This expansion would be available year-round, require minimal changes in the lifeguard staffing, and reduce the overall costs by leveraging the current building area, heating system, along with the water filter and pumping facilities. Q6. Outside the summer Kids Klub use of the pavilion, what other uses does the Club see for this pavilion? The pavilion is a multi-purpose outdoor facility intended to address the safety and growing demands of our recreational programs. The standalone structure provides a centralized location from which our staff can better manage multiple summer programs, diverting noise and traffic from the Community Center, reducing children’s risk at times of high activity, and minimizing impact on adult fitness activities. The pavilion will offer additional covered area for multi-season functions (such as the Annual Membership Meeting, FestiFall, and Winterfest), a small stage for open-air performances, and a shorter walk to restrooms facilities from our sports fields. - Page 11 -
Phase Two Q & A Q7. Does the Community Center really need more storage? The short answer is yes. Currently, the indoor archery equipment, event tables and chairs, the indoor lift (used for elevated maintenance repairs and event set-up), the floor covering rolls, soccer nets and many other large items have no area for storage. We must put these items behind the impact curtains in the multi-purpose room either temporarily or for long term storage depending on the time of year. Unfortunately this can lead to unsafe conditions. Q8. I see a break-room area listed on the floor-plan - what is this and why do we need it? The current administrative area that is designated as the “Copy Room”; housing the printers, copiers, laminators and office supply storage; also serves as the staff breakroom. With community center staff, aquatic staff, recreation staff and management all working in this building it not unusual to have many people trying to clock in and out, take breaks, plan their work day, or just relax between shifts in this one room. At the same time, management and front desk staff still needs to access the equipment housed in this room. This additional space will provide a break room for staff, returning the copy room to its intended purpose. Q9. When Phase Two is completed, will we have addressed essentially all of the important shortcomings identified with the Community Center? Working through this process with the architects and engineers, we feel we have developed a plan that addresses the Members’ concerns for this facility. This plan maximizes cost effective solutions without sacrificing the Members’ satisfaction. No additional renovation is anticipated in the foreseeable future. Q10. Will Phase Two result in increased staffing requirements and operating costs? The implementation of Phase Two will have minimal impact on the operating cost. Most of the renovation is to give us more room but does not really expand offerings in the building. There is some additional square footage that will need to be heated or cooled so there will be an increase in utilities cost. Much of the added square footage (the outside pavilion) is seasonal in nature and will not to be conditioned year round. The same goes for staffing. The design of the pool will allow one lifeguard to maintain safety on slower weekdays and additional guards needed during peak times. That being said, just as the initial addition of the Community Center had a great impact on the year round utilization of our community, we see that this renovation has the potential to greatly increase the facility’s usage which could increase operating cost and in turn increase the perceived value of Lake Naomi Club Membership. Q11. Why are there incremental annual increases in the CP Fee before the Club Membership has voted to approve each phase? The Club is planning as if Phases Two, and Three will be approved by the Membership. If this occurs, we want the increase in the CP fee to be in minimal annual increments so as not to unduly burden the Members in any one year. If the Members do not approve any Phase, the CP fee can be reduced accordingly. Please refer to the projection in this booklet. Q12. Why not just assess the amount needed to do the Phases as they are approved? The assessment can be refundable similar to the current Capital Assessment. This alternative is not feasible at this time because it could have a negative effect on our ability to attract new Members. The new assessment could add up to over $5,000. A new Member would be looking at a total assessment of about $10,500 ($5,472 for the current Capital Assessment plus $5000+ for the new assessment). Although both amounts could be paid over time, the mere mention of $10,500 could scare away many prospective Members. We should save this alternative for future phases. Q13. What are the chances that the CP fee will need to be increased more than projected because of changes in interest rates and the costs of the Phases? Interest rates should not cause any increase in the annual CP fee because we have used the maximum possible loan rate until 02/01/2028. In fact, it is reasonable to assume that this rate will not always be at the maximum, which will cause the annual CP fee to be less than projected. After 02/01/2028, the rate range will be determined by the bank. We have used 8% in our projections. If the rate exceeds this amount, we can utilize the projected cushion to fund the increased debt service before having to raise the annual CP fee. We expect that Management will obtain a not-to-exceed estimate from the contractor for each Phase before the Membership vote. - Page 12 -
Phase Two Q & A Q14. What do you think will be the effect of the improvements on the values of our homes? This question is impossible to answer with any certainty. Home values should increase with better and more appealing facilities. We only need to remember the effect on our home values from the building of the Community Center to realize that the sum total of these projects will increase home values throughout the community. During the recent “great recession”, we have increased our Membership due to the Community Center, the Lodge and the Park at Club Beach. Q15. Why is the Club holding the Town Meetings and the vote at a time when many Members are out to the area? Unfortunately, no matter what time of the year we hold the meetings some of the 1603 Members would have a challenge with the dates selected. Phase Two of the Community Center has been in progress for more than two years and the Club has communicated updates to the Membership via Reflections and the 2015 Annual Membership Meeting. The information presented at the Town Meetings is the same as was presented last year to the Membership. The feedback from the Annual Membership Meeting was the desire to minimize the indoor pool shutdown time in the offseason since other aquatic facilities were available to Members in the summer. To begin this project this summer we need to award a contract ASAP so permits etc. can be arranged. In addition, the “not to exceed” bid the Club received from the contractors are only good through April. Waiting for the summer to hold the meetings would push the project back another full year and with the overwhelming positive feedback from many Members and Committee Members, Management did not see the need to do so. Q16. Interest rates are low right now, why do we not refinance the Capital Projects Loan? Our loan is a commercial loan, not a home mortgage. These types of loans carry a higher rate than home mortgages. While it does include mortgages on certain properties as collateral, the bank is depending on our ability to maintain a viable membership level and operating efficiencies, not on the value of the properties. Our lender has been very flexible with our loan, agreeing to an additional commitment and extension of the loan term. The Club has a great relationship with the bank that does not exist with a home mortgage lender. That being said, we are always open to renegotiating the loan terms and seeking out competitive bids; however, we do still need some flexibility with the loan throughout the various phases of the Horizon Plan. It might be a better time to renegotiate the terms once we have a better handle on the actual cost of the entire Horizon Plan. Q17. I noticed on the drawing that the Club is proposing adding several offices, is this space needed or should we be adding more program space. There are an additional five office spaces in this project. The proposed pavilion offices will serve as the Camp Director’s Office, the Camp Ranger/Health Center and a work space for the group leaders. These offices will permit more privacy for disciplinary conversations, parent discussions, and a special area for the sick or injured campers. Overall these work spaces will help to move the center of camp away from the Community Center and permit camp to be more of an outdoor based program. The offices at the Community Center will be for the Café Manager to have a year round space and an additional workstation for staff assisting the managers with scheduling, payroll, and budgeting. Q18. How will the Recreation Pavilion increase safety? There are several aspects of the pavilion that will increase the safety of our campers. During camp operations, the parking areas around the pavilion will be closed to non-camp traffic. This will permit parent and bus drop off and pick up without other Members’ cars driving by. It will also permit a clear separation and easier supervision of the kids participating in camp and the other Members using the Community Center facility. This will give more space to camp program and other Members as well. Q19. Why are all these project included in one vote instead of allowing us to choose which parts we support? The simple answer is that the Committees, Boards, and Management feel that all aspects of this project are important to the Membership. With the increasing size of the Membership there is no way to ever build a facility that will meet the needs of all Members at all times. One of the major goals of the Horizon Plan is to update all of the Club’s facilities so that Members have several viable options of where to recreate, eat and relax. For example, instead of trying to make the Lake Naomi Pool large enough for everyone, you have the option of going to Timber Trails Pool or the Community Center Pool or any of the beaches. To make this a true option for many of our Members, we need to have appropriate restrooms and facilities that reflect the Club’s Platinum Status. Q20. I am unable to attend any of the meetings, will more meeting be scheduled? If a group of Members would like an additional meeting, one can be arranged. Robert Jones and Tim Brooks are available to answer any questions Members might have. They can be reached at the Administrative Office by calling 570-646-9191 or via email at rjones@lakenaomiclub.com or tbrooks@lakenaomiclub.com, - Page 13 -
LAKE NAOMI CLUB HORIZON PLAN PHASE ONE - CELEBRATION
75% of the Membership participated in the vote for Phase One 84% of the Votes – voted YES
Estimated cost not to exceed -$1,600,000 Estimated Actual Cost - $1,536,000* Under Budget $64,000 *Subject to audit
- Page 14 -
LAKE NAOMI CLUB HORIZON PLAN - NEXT STEPS ALL PROJECTS ARE SUBJECT TO APPROVAL BY THE MEMBERS OF LAKE NAOMI CLUB
Phase Three: Lake Naomi Tennis Center, Staff Housing, and Beaches Staff housing is a new addition to the Horizon Plan. The increase in the number of staff that require housing, the cost of renting and the scramble to find sufficient housing to meet our needs has become a growing challenge. The Club needs to identify a cost effective long range solution to this increasing problem. The Lake Naomi Tennis Center continues to be one of the Club’s most successful amenities. The proposal to reconstruct and enlarge the Tennis Center in order to provide better accessibility, a larger pro shop, improved restrooms, and expanded viewing area for tennis events and tournaments will help to ensure the future success of the Tennis program.
- Page 15 -
LAKE NAOMI CLUB HORIZON PLAN - NEXT STEPS ALL PROJECTS ARE SUBJECT TO APPROVAL BY THE MEMBERS OF LAKE NAOMI CLUB
According to the Member Survey, the lakes continue to be the Club’s number one resource and amenity. Recent improvements to Club Beach have demonstrated the Membership’s continued desire to have quality beach facilities for their families and guests to enjoy. Expansion of facilities at other beaches including restrooms and increased watercraft storage would help to relieve some additional stress on Club Beach and accommodate the Club’s expanding Membership. Phase Three - Summary: Member vote in Spring of 2017. If approved, construction to begin in Fall of 2017 with anticipated completion Spring of 2018. Estimated cost of Phase Three: $1.15M.
- Page 16 -
LAKE NAOMI CLUB HORIZON PLAN - NEXT STEPS ALL PROJECTS ARE SUBJECT TO APPROVAL BY THE MEMBERS OF LAKE NAOMI CLUB
Phase Four: Lake Naomi Clubhouse The Clubhouse is the center of the Club’s social life and has served that function well, but is no longer meeting the Club’s needs as a result of expansion of the Membership and continued aging of the building. During the peak summer weekends, it has been common to have to turn away as many as 100 Members for dinner due to lack of space to accommodate them. Private functions, which are a very good source of revenue, can only be accommodated during limited times because there is not enough room to hold them and still have the Clubhouse open for Members. The Club has commissioned an engineering study to determine which is more cost effective - expansion or replacement of the Clubhouse - as the LN Clubhouse no longer adequately meets the needs of the Members of the Club and definitely will not meet the needs of Club Members in the future. The study will help to identify the inefficiencies of the Clubhouse from energy costs, productivity in the kitchen, seating layouts to reservation changes, just to name a few. The other factors that will need to be considered are the limited parking options and expectations on valet parking, along with the growing need for qualified seasonal staffing that require housing. Phase Four – Summary: Member vote in Spring of 2019. If approved, construction to begin in Fall of 2019. Estimated cost, completion date and funding source of Phase Four will be determined once there is a better understanding of the scope of work.
Joe Muenichsdorfer
- Page 17 -
LAKE NAOMI CLUB HORIZON PLAN - NEXT STEPS ALL PROJECTS ARE SUBJECT TO APPROVAL BY THE MEMBERS OF LAKE NAOMI CLUB
Land Acquisitions It has been the policy of the Club to consider acquiring property located on its borders. This has resulted in the acquisition of the Mountaintop Lodge, the Park and the Gateway property. We will communicate with the Members the details of any proposed acquisition, its cost and why it should be acquired, once negotiations have succeeded. All potential sellers of property to the Club will be informed that the acquisition of their property is subject to Member approval.
- Page 18 -