THE CLEVELAND YACHTING CLUB
A New Mindset is Required
Clubs that are stuck share a common resistance to investing in the latest service and amenity offerings...Contributing factors include operational versus strategic governance, and members thinking like customers rather than stewards and owners who are willing to invest in the club’s future. Unless that mindset is reversed, such clubs will ultimately fail"
Ray Cronin, Club Benchmarking Founder & Chief Innovator
THE CLEVELAND YACHTING CLUB EST. 1878
Opening Comments
• Start Teams recording
• Agenda Review/Introductions
Strategic Planning
• Master Plan/ Progress Update
Project Updates
• Bridge Replacement and Entry Drive Enhancements
• Gas Dock Remediation / Replacement
• Clubhouse Renovation
• Budget Updates
Funding Strategy Discussion
Q/A
Christian Tracey, Commodore
P/C James Busch, Chairman
Jim Wallis, Perspectus Architecture
Philip Slaght, Vice Commodore
Christian Tracey, Commodore
THE CLEVELAND YACHTING CLUB EST.
BOARD OF TRUSTEES
• Dan O’Donnell
• Barrie Spang
• Ryan Kovesdy
• Marti Saltis
• Mark Bacon
• Bill Bolas
• Kevin Heck
• Craig Cook
• Maureen Storen
• William Lazzaro
• Lee Stacey
• Christian Tracey, Commodore
• Philip Slaght, Vice Commodore
• Christiaan van Raalten, Rear Commodore
• Laura Goldberg, Fleet Captain
THE CLEVELAND YACHTING CLUB
STRATEGIC PLANNING COMMITTEE
• P/C Jim Busch, Chair
• P/C Greg Zenko, Co-Chair
• Commodore Christian Tracey
• Vice Commodore Philip Slaght
• Rear Commodore Christiaan van Raalten
• Laura Goldberg, Fleet Captain
• Kevin Heck, At large member
• Lee Stacey, At large member
• Whitney Slaght, Treasurer
• Jason Smith, Fleet Engineer
• Marc Dallas, General Manager
• Steve Kmetz, Mgmt Comm Rep.
• Mark Callahan, Mgmt Comm Liaison
• Richard Slaght, Mgmt Comm Liaison
• Joe Starck, Mgmt Comm Liaison
STAFF SUPPORT
• Marc Hooley, Harbor Master
• Matt Gambatese, Executive Chef
ARCHITECTURE & INTERIORS
• Perspectus Architecture
Jim Wallis AIA
COST CONSULTANTS
• Independence Construction
• Higley Construction
THE CLEVELAND YACHTING CLUB
EST. 1878
41 29.262o N / 081 50.085o W
Capital Projects: Past and Future
• Clubhouse – 1964 built, 1983 porch/kitchen, and 2003 addition
• Island Bulkheading – 1998 (6-year project)
• Center Isle Renovation – 2012
• Gas Tank Remediation and Replacement 2017
• Clubhouse Remodel – 2017
• Master Plan Created - 2017
• Dock Replacements – Completed in 2023
• Bridge Replacement and Front Entrance Update – 2024 / 2025
• Gas Dock Building Soil Remediation and Replacement 2025
• Clubhouse Renovation 2026/ 2027
James A. Wallis AIA
Bridge Replacement Project THE CLEVELAND YACHTING CLUB
THE CLEVELAND YACHTING CLUB EST. 1878
41 29.262o N / 081 50.085o W
Bridge Replacement Project
• Bridge Life Expectancy
• Bridge Inspection and Report 2023
• Bridge reduced to One Lane 2024
• Design and Bidding 2024
• Construction Winter 2025
• Member Access Target Date April 29th
• New Bridge Includes Pedestrian Walkway on South Side
THE CLEVELAND YACHTING CLUB
Entry Drive and Guardhouse – Master Plan Item
• Improve Entrance Gate Access and Experience for Members and Visitors
• Improve Island Entrance Security and Access Control
• Define the Design Aesthetic and Image for the Next Phase of Clubhouse Improvements
• Bridge Contractor Expected to Provide Demolition, Paving and Concrete in Conjunction with Bridge Replacement
• Reduced Operating Expense
MEMBER GATE VISITOR GATE EXIT GATE NEW GUARD HOUSE
NEW GUARD HOUSE
MEMBER GATE VISITOR GATE EXIT GATE
Gas Dock Remediation, Rebuild and Revitalization
Project
THE CLEVELAND YACHTING CLUB EST. 1878
Gas Dock Building and Site
Master Plan Item
Soil Contamination and Remediation
• 2016/2017: Removal of Old Gas Tanks and Remediation of Soils Below Tanks and Pumps
• BUSTR Continues to Monitor Surrounding Area and Soils at Gas Dock
• 2020-2024: Vacuum Extraction Remediation Performed but Ultimately Deemed Ineffective
• 2024: Soils below the Gas Dock Building Requires Excavation and Removal
Approach: Demolition, Remediation, Rebuild, and Revitalization of Existing Site
• Remove Contaminated Soil
• Create Wastewater Retention System for Boat Cleaning as required by Ohio EPA
• Additional Greenspace and Island Experience in Alignment with the Master Plan improving island safety
• New Gas Dock Building Include Improvements to Member, Guest, and Employee Experience
• Retail, Merchandise, and Apparel Sales
• Maximize the Utilization of the Gas Dock Area Footprint
WASTEWATER RETENTION
GAS TANK RELOCATION
NEW GAS DOCK BUILDING
NEW GREEN SPACE
ALTERNATE COST FOR PAVERS
NEW GREEN SPACE
THE CLEVELAND YACHTING CLUB
THE CLEVELAND YACHTING CLUB EST.
1878
41 29.262o N / 081 50.085o W
Improved Member Experience
Improved Food Quality and Member Service - New Downstairs Kitchen provides for better food quality, improved ticket times, and greater menu flexibility = better consistency and quality
First Floor Plan Service Improvements - Improved Porch and Dining views of River, new outdoor seating, larger bar service area
Second Floor Plan Service Improvements – Year-round Pilot House bar, wrap around balcony, ability to flex staffing during peak times, and better access during events
Attract, Recruit, and Retain Quality Employees - Employee break room, employee locker rooms, receiving area, improved larger Office space
THE CLEVELAND YACHTING
Clubhouse Project Update – Master Plan Item
Starting Fall 2026
• Member Survey – “This is What You Told Us”
• Member Satisfaction
• Staff Improvements
• Kitchen and Staff Efficiency
• Member and Guest Accessibility
• Clubhouse and Island Infrastructure
• Maximize Views and Natural Beauty
• Deferred Maintenance
THE CLEVELAND YACHTING CLUB
2
EXISTING CLUBHOUSE
1
3
THE CLEVELAND YACHTING CLUB
THE CLEVELAND YACHTING CLUB
THE CLEVELAND YACHTING CLUB
THE CLEVELAND YACHTING CLUB EST.
41 29.262o N / 081 50.085o W
Cost Estimate Bridge Replacement and Entry Gate / Guardhouse
Bridge Construction Cost $1,879,708*
Engineering Support, Landscaping, Contingency $500,000
Funding Strategy
Additional Cost of Guardhouse $175,000
Subtotal $2,550,000
Furniture, Furnishings, Equipment, Contractor, and
A/E Fees, Permits, and Approvals for Front Gate $100,000
Total estimated project costs $2,600,000 to $2,700,000 *Board approved contract value
THE CLEVELAND YACHTING CLUB EST.
1878
41 29.262o N / 081 50.085o W
Cost Estimate Gas Dock Remediation, Rebuild and Revitalization
Building Construction Cost $500,000
Contingency $85,000
Funding Strategy
Soils Remediation, Gas Tanks, Wastewater Retention $240,000
Subtotal $825,000
Furniture, Furnishings, Equipment, Contractor and A/E Fees, Permits & Approvals $200,000
Total estimated project costs $1,000,000 to $1,100,000
YACHTING
Estimate
Funding Strategy
Subtotal $5,000,000
Furniture, Furnishings, Equipment, Contractor and A/E Fees, Permits & Approvals $1,400,000
Total estimated project costs $6,200,000 to $6,500,000
Funding Strategy- Why and How
THE CLEVELAND YACHTING CLUB EST. 1878
Funding Strategy – Why?
• Wait and save approach
• Requires long-term projections, calibrating “saving rate” (member monthly capital assessments) to align with timing and extent of capital projects
• However, unplanned capital needs create a funding gap
• The wait and save approach has not been effective because the Club’s capital needs have well outpaced the capital saving
• Existing monthly capital assessments have been earmarked for the clubhouse renovation since 2020
• Approximately $4 million in fund currently, $1 million on average funded annually until 2027
• Approximately $7 million projected availability for club house project in 2027
THE CLEVELAND YACHTING CLUB EST. 1878
Funding Strategy – Why?
• One-time assessment is necessary to fund unplanned and immediately necessary projects
• Bridge renovation - $2.5 million
• Gas Dock remediation and rebuild project - $1.0 million
• Contingency of $500k
• Total one-time assessment need of $4 million
• Increase in monthly assessment necessary to properly save for long-range capital needs
• 10+ year perspective
THE CLEVELAND YACHTING CLUB EST.
1878
Funding Strategies Comparison
No one-time assessment or changes to monthly capital assessment
• Requires additional $1.25 million of inflationary/escalation costs on clubhouse project [$250k annually]
• Does not allow for flexibility to emergency needs, nor does this consider other long-range projects that will require funding
THE CLEVELAND YACHTING CLUB EST. 1878
Funding Strategy Must Have a Long-Range Planning View
• Monthly capital assessment must be calibrated based on most significant long-range capital need:
• Bulkhead replaced in mid 1990’s has an estimated 40–50-year life, at a cost of $3.1 million
• Current cost estimate, based on 90’s project cost adjusted for inflation, is $8.3 million
• Based on the lifespan timeframe, the Club projects to begin the bulkhead project in 2035
• Strategic Planning then considered other capital projects that will require attention between now and 2035
• All island generator – currently slated for 2028
• Pool rebuild and revitalization – currently slated for 2030
• Topside and Center Isle revitalization – currently slated for 2031
THE CLEVELAND YACHTING CLUB EST.
Funding Strategies Comparison
One-time assessment (immediate needs) and monthly assessment (long-term needs)
THE CLEVELAND YACHTING CLUB
Two-Pronged Board Approved Funding Strategies
• Based on current IMMEDIATE funding needs
• Senior members - $7,500 assessment
• Intermediate Juniors B - $3,000 assessment
• Intermediate Juniors A - $1,000 assessment
• Assumes 15% attrition
• Option to pay the assessment in full, or
• Pay over 24 months at 5.5% interest
• Seniors $330.72 monthly
• IJB $132.29 monthly
• IJA $44.10 monthly
• Why charge interest?
• To encourage members to pay in full – This is necessary to keep the timing of the club house project on track
THE CLEVELAND YACHTING CLUB EST. 1878
Two-Pronged Board Approved Funding Strategies
• Based on current assumptions regarding LONG-RANGE funding needs and capital projects commencement timing :
• $50 Increase to monthly capital assessment
• Assumption of 5% annual increase
• Expectation is the Strategic Planning Committee will calibrate the monthly capital assessment based on projections, and recommend to the Board for approval
YACHTING
Escalation of Member One-time Assessment
Frequently Asked Questions
Frequently Asked Questions
Q: Why Now?
A: To avoid future cost of deferred maintenance, escalation costs, and impact of regulatory enforcement.
Frequently Asked Questions
Q: Is a membership vote required?
A: No
Frequently Asked Questions
Q: Why are only some membership classes being assessed?
A: Only Shareholders, or soon to be Shareholders, are being assessed.
Frequently Asked Questions
Q: Are you concerned about losing members?
A: The funding model accounts for 15% attrition, but we expect a significantly lower amount.
Frequently Asked Questions
Q: Will new members have to pay the assessment?
A: Yes, it will be built into our ongoing initiation fees.
THE CLEVELAND YACHTING CLUB
Frequently Asked Questions
Q: Are you worried the cost of initiation will scare away new members or
hurt recruitment?
A: No, in fact the new facilities are expected to attract new members.
THE CLEVELAND YACHTING
Frequently Asked Questions
Q: If I quit and return in the future, can I avoid the assessment?
A: We don’t expect that a member would try to game the system like that.
Frequently Asked Questions
Q: Will we deplete our capital at any point during these projects?
A: No, the funding model never depletes the capital fund
Frequently Asked Questions
Q: What happens next?
A: The meeting materials will be distributed. You can reach out to any member of the Strategic Planning Committee or Board with additional questions.
THE CLEVELAND YACHTING CLUB
Frequently Asked Questions
Q: Why aren’t we taking a loan to cover the $7,500?
A: CYC governance prohibits encumbering our property to secure a loan.
& Answers Added After Briefing
THE CLEVELAND YACHTING CLUB
EST. 1878
Q: Since the last membership survey in 2020 how many new members are there?
A: 242 (154 Senior/Interim Seniors, 88 IJA/IJB/Juniors) of 823 total current members are new since Aug 2020.
THE CLEVELAND YACHTING CLUB
EST. 1878
Q: After the updates to the Pool/Center Isle and the Clubhouse, what was the impact on member utilization?
A: Pool/Center Isle +6.7% and Clubhouse +17.5% food and beverage spend compared to prior year
THE CLEVELAND YACHTING CLUB EST.
Q: How does the senior citizen F&B spend (utilization) compare to other member classes?
A: Senior Citizen class members spend, on average, 50% less on food and beverage than senior and interim senior members
CLEVELAND YACHTING CLUB
THE CLEVELAND YACHTING CLUB
November 11, 2024 Gas Dock Soil Testing Results
THE CLEVELAND YACHTING CLUB
THE CLEVELAND YACHTING CLUB
2024 Club Trends Pulse Survey Results
"We have not encountered clubs that failed because they were too expensive – but we do know of clubs that failed because they capitulated to overwhelming deferred investment and lack of resources needed to deliver a compelling and relevant experience." -
Ray Cronin, Club Benchmarking Founder & Chief Innovator