WCC Master Plan Presentation

Worcester Country Club Master Plan Presentation

Worcester Country Club 10 Year Finance Plan

Key Assumptions:  

 



Cash flow from operations grows 3% annually Initiation fees assumed at equal to 22/23 budget with exclusion of rebate assumption in years beyond 22/23 (i.e. next year budget = $170k - $18.5k, beyond that assuming $150k). At current initiation fees this implies approx. 10 new full FTE members each year to replace departing members. The total number of members remains consistent at approximately 470 total members.

Capital assessment – fixed at 22/23 budget level of $105 per month Hanse master plan:  Construction begins and is completed in the fall of 2024  $3.0m including allowance for contingency of approx. $0.3m  Materials – $1.2m  Labor and Consulting – $1.5m (includes impact of in house completed work)  Contingency - $0.3m  $2.0 m of new debt – 15-year repayment term at 5% interest with no prepayment penalties or other restrictive covenants Other capital expenditure continues:  Minimum = 90% of current year capital assessment  2022/23 - $650k, 2023/24 - $700k, thereafter increase by $25k per year  $500,000 “rainy-day” fund continues to be maintained

Projections – $2.0m New Debt for Hanse 21/22

Cash flow - Cash flow from operations - Net initiation - Capital assesment fee - Debt Service - New debt - PPP / ERC Funds Cash flow before capital

$

22/23

23/24

$

166.0 $ 230.0 $ 139.5 151.5 535.0 549.4 (670.7) 500.0 911.0 669.8 $ 1,841.9 $

Capital budget - 90% of capital assessment - Hanse plan - Capital reserve release Total Capital Allowance

$

(481.5) (150.0) (631.5) $

Cash flow after capital

$

Capital Expenditures - Hanse Master Plan - All capital items $ Capital Reserve fund Starting balance - Cash flow Ending balance (Min $500k)

$

New 15 Year Balance

$

(494.4) (155.6) (650.0) $

38.3 $ 1,191.9 $

(631.5) (631.5) $

(650.0) (650.0) $

24/25

25/26

26/27

27/28

28/29

29/30

30/31

31/32

236.8 $ 243.7 $ 150.0 150.0 549.4 549.4 (189.8) 2,000.0 936.2 $ 2,753.3 $

250.9 $ 150.0 549.4 (189.8) 760.5 $

258.2 $ 150.0 549.4 (189.8) 767.8 $

265.8 $ 150.0 549.4 (189.8) 775.4 $

273.7 $ 150.0 549.4 (189.8) 783.3 $

281.7 $ 150.0 549.4 (189.8) 791.3 $

290.0 $ 150.0 549.4 (189.8) 799.6 $

298.6 150.0 549.4 (189.8) 808.2

(494.4) (494.4) (3,000.0) (205.6) (230.6) (700.0) $ (3,725.0) $

(494.4) (255.6) (750.0) $

(494.4) (280.6) (775.0) $

(494.4) (305.6) (800.0) $

(494.4) (330.6) (825.0) $

(494.4) (355.6) (850.0) $

(494.4) (380.6) (875.0) $

(494.4) (405.6) (900.0)

(971.7) $

10.5 $

(7.2) $

(24.6) $

(41.7) $

(58.7) $

(75.4) $

(91.8)

(3,000.0) (700.0) (725.0) (700.0) $ (3,725.0) $

(750.0) (750.0) $

(775.0) (775.0) $

(800.0) (800.0) $

(825.0) (825.0) $

(850.0) (850.0) $

(875.0) (875.0) $

(900.0) (900.0)

236.2 $

800.0 838.2 2,030.1 2,266.2 1,294.5 1,304.9 1,297.7 1,273.1 1,231.4 1,172.7 1,097.3 38.3 1,191.9 236.2 (971.7) 10.5 (7.2) (24.6) (41.7) (58.7) (75.4) (91.8) 838.3 $ 2,030.1 $ 2,266.3 $ 1,294.5 $ 1,305.0 $ 1,297.7 $ 1,273.1 $ 1,231.4 $ 1,172.7 $ 1,097.3 $ 1,005.5 -

$

-

$

-

$ 1,908.1 $ 1,811.5 $ 1,710.0 $ 1,603.3 $ 1,491.1 $ 1,373.2 $ 1,249.3 $ 1,119.0

WCC Full Time Equivalent Members FY 1989 thru FY 2022 400

385 370 355 340 325 310 295 280 265

250 1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

Note: Full Time Equivalent Members are determined by dividing annual dues revenue by the Family Active 40+ member rate in effect for each year

1. What is the urgency of voting now, and if we wait until the Annual Meeting in the spring, what are we risking?

It is important to make a financial commitment as soon as possible to the implementation of the “Architects Master Plan” prepared by Hanse Golf Design, Inc. dated March 23, 2018. The reason this is important is because the Hanse Golf Course Design team are considered one of the best in the world, are in very high demand, and currently booking out projects years in advance. This is common amongst the very top tier architects. Currently their team has availability in the fall of 2024, but that could change if we wait.

To use last year as an example, if we had approved financing before September we would have been able to fill the time slot that was available in the fall of 2023. In September of 2021 Yale’s athletic department announced plans to hire Gil Hanse for the restoration of its historic golf course, concluding in the fall of 2023.

2. Why is it important to renovate in the next few years?

The golf course was most recently renovated starting in 2002 in accordance with the Master Plan produced by Ron Pritchard. The first stage included a complete irrigation system upgrade that took place starting in 2002. The large majority of golf course restoration including tees, bunkers, greens expansions, fairway expansions, cart paths, etc. took place from 2005 to 2007. The club then underwent a large scale tree removal project that took place starting in 2010 as a result of a significant ice storm, and the management of an invasive insect, the Asian Longhorned Beetle. The driving range tee was reconstructed in 2015.

Cont.

Since the most recent restoration, certain areas of the golf course are degrading and need to be updated in accordance with the “Architects Master Plan.” Bunkers are nearing the end of their life expectancy with the last renovation occurring between 2005 and 2007. Bunker faces and edges of greens have accumulated significant amounts of sand splash, altering the greens contours along the edges of greens from their original construction. The accumulation of fine sand from sand splash has made bunker faces unstable and difficult to grow championship level turf in some areas.

Bunker sand is beginning to become contaminated and needs to be upgraded.

Drainage systems in a number of bunkers and other areas need to be redone because they are not functioning properly. Some tees need to be leveled, tied in better to the landscape, and re-aligned to modern standards. Fairway widths need to be further expanded to a scale that reflects the original design.

Cont.

This “holistic” master plan, as explained by Gil Hanse, will help us correct these and other deficiencies, making the golf course an even more enjoyable experience for all levels of golfers. Everyone benefits, from beginner to the more accomplished golfer, if needed through the setup of the golf course. The introduction of a number of new forward tees as well as the addition of a few championship tees, wider fairways, bigger greens, improved bunkers and open vistas/playing corridors will make the golf course even more enjoyable for golfers of all abilities.

3. What is the proposed timeline? Will the golf course be closed during the project?

The restoration would be projected to begin just after Labor Day of 2024, and take about 3.5 months to complete every aspect of the “Architects Master Plan,” depending on weather. The golf course would not be closed at any point during the project. No more than 2 or 3 holes will be closed at one time. Holes will be closed as they are being worked on and then re-opened upon conclusion of the work on those holes, as the team moves through the golf course. The only area that would remain closed for a longer duration of time is the 11th green. That green would be started in September and re-open the next spring once established, but a temporary putting green will be established in the fairway.

4. What is the benefit to doing the project all at once?

There are a number of benefits to doing the project all at once including lower cost, increased efficiency, improved member experience and consistency in playing surfaces.

If the project is spread over multiple years this will simply cost us more. The vast majority of project costs come from materials, labor and equipment. The cost of materials and labor will generally increase each year, as will the expense to stage manpower and equipment multiple times. Also, it is less efficient to stop and restart a project over multiple years.

Going through renovation of any sort will disrupt the experience of members and guest to some degree, but the long term benefits will be significant. If we can minimize this disruption to just a single fall, the result in the long term is a better experience of our members and guests.

We expect to work closely with Gil to ensure we follow the By-Laws of the club and follow through on the entirety of Master Plan as approved in 2018.

5. What type of projects has Hanse Golf Course Design done recently?

The Hanse Golf Course Design team has recently restored both Winged Foot and The Country Club. Winged Foot has recently hosted the US Open and The Country Club hosting this year. Also, LA Country Club who is hosting the US Open next year and they will be working at Oakmont who is hosting in 2025. They constructed The Olympic Golf Course in Brazil and the PGA of America hired Gil to build the PGA Frisco East Course at their new PGA headquarter in Texas.

In Massachusetts restoration projects include The Country Club, The Kittansett Club, Myopia Hunt Club, and Taconic Golf Club as well as original designs of Boston Golf Club and The Vineyard Club. In New York: Fishers Island, Sleepy Hollow, Winged Foot, The Creek, Fenway Golf Club, Quaker Ridge Golf Club among a handful of others. In New Jersey: Baltusral Golf Club, Essex Country Club, Plainfield Country Club, Ridgewood Country Club. In Pennsylvania: Aronimink Golf Club, Merion Golf Club, Oakmont Country Club, Gulph Mills Golf Club, etc.

This is an incredible opportunity for the future of Worcester Country Club and to be mentioned along with some of the most iconic golf courses in the country.