Issuu

Project Background and Rationale

The existing maintenance facility was designed and built in phases over several decades and is no longer adequate to meet the needs of the staff and the equipment required to maintain the various properties and facilities under our care.

As the organization has grown, so too has the need for improved facilities that can support an expanded workforce, provide better working conditions, and increase efficiency. The facility upgrades will ensure a safe, productive, and sustainable environment for all staff members.

Current issues with existing Buildings

The original main complex, built in 1972, was designed for a staff of 10 employees (20 employees as of today) and has not been updated since.

There is inadequate office space, no designated employee parking, and no space for meetings or safety briefings. Equipment and materials are stored in open, unprotected areas that expose them to salt air, inclement weather, and debris. (Exposed equipment totals 2.2 million dollars)

There are no fire sprinkler systems in any of the existing buildings, and safety is a concern, particularly in high-risk areas like the mechanic's shop.

Employee amenities like restrooms, break rooms, and lockers have not been updated to accommodate the current number of employees.

Existing Structure vs. Future

Aerial photo of exisiting structure

Aerial photo of future structure

Square Footage Comparison

Civil Work

Civil work at Golf Course Maintenance will include Civil Engineer fees, removal of existing septic, removal of Berm soil, removal of asphalt, removal of existing storm drainage and several projects dealing with water and power.

Budget and Cost Estimates

Demolition/Site Prep

Phase 1 building

Phase 2 building

Phase 3- Dumpster

Hard Cost- Construction

Fertilizer & Material Storage/Soil Bins

Phase 3- Site Work/Utilities/Asphalt

$145,000 $3,497,000 $1,475,000 $640,000 $1,088,000 $ 75,000 $6,920,000

$305,000 $100,000 $180,000 $77,000 $37,000 $15,000 $40,000 $53,000 $807,000 Total Cost Total Contingency Overall Total $ 7,727,000 $882,700 $8,609,700 Totals

Recent Capital Investments

Financing

How do we plan to pay for the GMF?

We have a commitment from Northern Trust for two different loan facilities.

The first is a $2.75 million three-year line of credit (LOC). Similar to the existing facility, we are able to borrow and repay as needed/able.This type of facility has provided CCF great short-term liquidity flexibility. The rate on this LOC will be roughly 6.5%.

The second will be a $7 million Construction loan. During the first 24 months this load will act just like the LOC. We can borrow and repay as needed/able. However, any amount outstanding on the Construction Loan at the end of the 24 month period will be termed out for three years, with monthly required payments. The rate on the construction loan is slightly higher related to the longer term, roughly 6.8%.

Based upon projections we shared with Northern Trust and are summarized in this booklet, we do not anticipate having any outstanding 3rd party debt at the end of fiscal year during the GMF project.

We have assumed 10-12 new members per year across the next three years with the Entrance Fee increasing from $200K to $225K to $250K. This will generate roughly $8.0 million in entrance fee revenue. This assumption seems reasonable based up prior years and current membership pipeline. This is the critical assumption that allows us to complete this project with NO member assessment. However, if this assumption falls short, we will need to revisit the assessment option.

Cash Flow Projections

Frequently Asked Questions

Was this project put out for bid?

A group from CCF interviewed three different contractors and found two who were believed capable of doing the work. Contractors do not provide quantified dollar bids for this kind of project until the project mandate has been awarded, as costs are not determined until subcontractors have bid for the components of the job. Based on our prior excellent experience (Lifestyle Center, Golf Learning Center, Clubhouse Lower Level, etc.) the group opted to go with Mouw Associates.

What is the cost on a per square foot basis?

Using the actual estimated construction costs (not including the cost of significant site work, furnishings, etc.), the cost is roughly [$259] per square foot.

What are the inflation assumptions included in the estimated cost? [Need to ask Rick about this]

Has this project been “value engineered”?

Jeff Klontz and his team have spent over [18] months with the architect, contractors, Village of Golf and others reviewing the various requirements of the new facilities, including visits to facilities at other clubs. We believe we have maximized the utility of our new facility while closely monitoring costs and amenities.

What is the expected life of the new facilities?

This facility should support CCF in meeting our golf course, landscaping, maintenance and other needs for a minimum of [40] years.

Are we at risk of discovering environmental or other issues that might elevate costs when demolition and excavation begin?

We have worked with civil engineers and the Village of Golf to assess all necessary site work to accommodate drainage, utility and other site work requirements, including the removal of a septic tank. [I need assistance in saying something about potential (or not) environmental contamination or related issues.]HIGH DEGREE OF CONFIDENCE THAT WE HAVE A WIDE SCOPE/BASE OF KNOWLEDGE.

Does the Village of Golf need to approve this project before we begin?

We have worked closely with the VOG in developing this project and… [Need help here]WE SHOULD GET CONFIRMATION THAT WE CAN DO THIS PROJECT UNINTERUPTED FOR THE NEXT THREE YEARS

Frequently Asked Questions

What are we doing for the benefit of our employees?

In addition to substantially improving and modernizing work areas, equipment, tools, and overall working conditions (including A/C), our team will for the first time have dedicated locker rooms and showers (male and female), break areas and a lunchroom/meeting/training room big enough to accommodate our 20+ dedicated employees, providing amenities comparable with those provided in the recently completed lower level of the Clubhouse.

What is the incremental ongoing cost to the Club of operating the new facilities?

Estimated incremental utility, insurance and maintenance costs are [$ ] per year. PERHAPS WE MENTION HERE ABOUT INTEREST EXPENSE

Was a Member Capital Assessment considered to assist in paying for the new facilities? While a Member Capital Assessment was discussed, the Finance Committee and Board of Governors believe that we can comfortably complete this project without a Member assessment and without incurring a significant amount of (or possibly no) term debt. This can be accomplished using attractively structured and priced financing from our bank, Northern Trust, augmented by strong new Member flow and planned modest increases in our Entrance Fee, Annual Dues and Capital Dues. Nonetheless, if our underlying assumptions, particularly as it relates to new Member flow, change, a Member assessment can be revisited.

Historically , how have we financed projects such as the GMF?

Annual dues and member utilization of the Club's F&B and other facilities covers the annual operating cost of CCF. Capital dues offset roughly 1.0 million of annual capital project to maintain the Club's facilities, landscaping, etc. New projects such as the Lifestyle Center, Golf Learning Center, Golf Course redo and the GMF have been paid through new member Entrance Fees and intra year borrowings on CCF's LOC with NT.

Is the Golf Maintenance Facility the last big project for CCF?

Never say never, however, the board has discussed that upon the completion of the GMF, there is not another significant capital project on the near term horizon. This will allow CCF to begin to build balance sheet reserves for the future. CCF is in a strong position because we have made important investments back into the Club. That said, it will prudent to build capital reserves for the future.

In Conclusion

This proposal outlines the critical need for an upgraded maintenance facility to support our growing workforce and ensure the safety and efficiency of our operations. By investing in this new facility, we will be able to provide a safe, organized, and modern work environment for our employees, while maintaining the high standards expected for our equipment and operations. We request approval to move forward with this project, which will be completed in phases, with a projected total cost of $8,609,840.