Page 91 - VCC 2022 Capital Plan New Binded

QUESTIONS & ANSWERS
the club. We expect to have an operating budget which will stand on
its own and be funded by member operating dues and other
revenues. The other half of the equation will be a capital budget
which we will seek to lockbox away with a new Bylaws provision
whereby it is funded by monthly capital dues, initiation fees and
transfer fees. The capital budget will be used for maintenance, repair
and replacement of existing capital assets as well as any additional
capital projects the Club votes to undertake in the future. We believe
that this bifurcation and ongoing capital funding, will put the Club in a
much better position going forward and alleviate the need for
operational assessments on an annual basis.
Will any property be sold?
At the present time, we have not looked at this as a viable funding
source. We would like to move forward without selling any of the
Club’s property given the fact that once it is sold we will have less to
work with for future projects and needs. We are hopeful that there will
be no need to look at this alternative until well in the future, if ever.
Will our debt increase?
The answer to this question is dependent upon our success in raising
funds from the generosity of members to complete this project. To
the extent we are unable to raise the 4.2M planned, we will have to
seek additional financing to cover the gap.
How will a decrease from 27 to 18 holes affect member’s ability to
play golf?
Currently our Club has approximately 13,000 rounds of golf played on
an annual basis. An average 18 hole golf facility in the country has a
capacity of approximately 35,000 rounds per year. That means we are
at approximately 1/3 capacity for an 18 hole facility being currently a 27
hole facility. It is our belief that there should be little to no decrease in
a member’s ability to play golf at any time upon renovation to 18 holes
if that’s what the members decide to do. We have seen an example in
the Glen Arven Club in Thomasville where their rounds post renovation
increased by approximately 3,000 per year. Even if we double that
particular increase, we are still well under the capacity for an 18 hole
facility. All that said, we are not blind to the fact that members may
have to change their usage patterns and our golf staff may have to
become more involved in directing the flow of rounds on the golf
course at peak times.
What happens to the unused land post-renovation?
Our plan is to determine, in consultation with our course
superintendent, what the most effective way to maintain the land will
be. We anticipate it not being maintained to the full level of a playable
golf course, but maintained similar to a park or nature type facility.
However, we are keeping in the back of all of our minds, the possibility
that at some point in the future, should we choose to go to an 18 hole
facility, that the Club may want to renovate and reopen to a 27 hole
facility. Since that is the case, we will make sure to maintain at least
the routings of the holes over time to allow for that possibility.
Have the committees considered homeowner value as a part of the
equation?
We have kept that particular issue forefront in our minds since the
start of this process. However a stark choice is very clear to us and
should be to all of the homeowners on the golf course. Should we
continue on the same path and allow our golf course to continue to
deteriorate, then both the Club and the value of the houses around
the Club will also deteriorate. So, it seems beneficial to all parties to
undertake this process. We firmly believe that the quality of the
renovated golf course will be such that there should be little change in
the value to a home near the Club, and if anything an increase. We
have been told repeatedly by local appraisers that it is the proximity to
the Club and not necessarily the location on a golf hole which
generates value. We think it is reasonable to assume that a
significantly upgraded golf course and facility will add value to all the
surrounding homes.
Will we see operational changes and budget changes?
Yes, in addition to the budget changes described above, we are
plugging in certain expenditures under the operational side to shore
up some deficiencies in our operations. We have, for a number of
years, known that we needed additional staff leadership in the food
and beverage operation to significantly improve our service. We have
seen a significant improvement in our food quality and production,
but still lag behind in service quality. We believe that is directly related
to training and management of our service and wait staff. In addition,
we are looking at other operational changes which may or may not