South Park Country Club: 1. Capital Improvements

South Park Country Club
South Park Country Club is alive and kicking but we do have some financial
challenges ahead. I am sure all of you have heard many different rumors, but our
plan is to stay a private country club. And we are going to do everything we can to
do just that.
Here is where we currently stand:
1. Capital Improvements
The funds collected in 2016 $33,150
Total Capital Fund Expenditures $81,800.
Clubhouse . $25,800 includes Cart Barn lighting, Pool house electrical, Pool
furniture, Kitchen,
Computer, new phone system
Golf Course Equipment . $56,000 includes Toro Truckster, Sand Pro Rake, (2)
Toro Greens
Mowers and (2) Toro Rotary mowers
2. Debt
Line of Credit - $ 75,551
Mortgage $564,492
Certificates $ 61,656
SBA Loan $210,932
Total -
$912,631
3. Assets
South Park consists of over 275 acres, a great golf course, pro shop, restaurant
and banquet hall. In 2009, South Park was appraised for $2.25 million. And just
so everyone knows, the Corporate members are the sole owners of the club.
South Parks net worth is assets less debt. Do the math and you will see that
$1000 is a great bargain for a Corporate Certificate.
4. Cash Flow
As long as we pay our bills, we can stay in business forever. But we have a
constant struggle with cash flow and it has gotten worse each of the last several
years. Our most significant revenue comes from member dues, golf and the
restaurant. Member counts are way down so dues received and member
spending has decreased. The weather is a huge influence over golf and
restaurant income. If its rainy, too hot or too cold people dont come to the
club. If something does not change quickly, we will not be able to pay our bills
next year. However, there is one thing that every member can do to help. And
that is to pay your bill on time and in full.
5. Member Counts
a. Corporate - 87
b. Associate 74
c. Senior - 59
d. Junior - 6
e. Social - 23
f. Life - 8
g. Special Guest - 15
h. Junior Special Guest - 46
i. Business memberships 2
We currently
We currently
We currently
60.
We currently
old.
have (0) Associate members under the age of 40.

have (9) Associate members between the age of 40 and 50.
have (13) Associate members between the ages of 50 and
have approximately (50) Associate members over 60 years
Current Plan
We are at a financial crossroads and we have some serious work to do. We have
historically low numbers of Corporate and Associate members. In order to remain a
private club, we need more members and we need to keep all of our existing
members. Pure and simple.
We have tried many different membership drives with varied success over the last
several years. Maybe the economy is to blame for our low numbers or just the fact
that golf is not as popular as it once was. Country clubs all over are experiencing
similar significant declines. We need new members of all ages and we plan to
establish an aggressive marketing plan and hire a membership director dedicated to
pursuing new members. As such, the Board of directors are looking to create
incentives for all age groups requiring additional membership classifications and
changes to our by-laws.
Proposals:
1. Corporate Membership revert back to age 60 to be eligible to transfer from
Corporate to Senior.
2. Create a new membership class (or classes) for families in the 35 to 50 age
bracket.
3. Create a new membership class for our older Associate members.
4. Allow the Board of Directors to determine the value of the Corporate

Certificate and to set the dues for all classes of membership.
Long Term Plan

First impressions matter. New potential members will take notice of the grounds and
facilities.
We are in the process of reworking the front property to make it a country club style
entrance. The tennis courts are being transformed into a parking lot, areas
previously neglected will be maintained, the residuals of the dam repair will be
removed and the gravel parking lot will be remade. Better drainage and
landscaping are part of the project. These initiatives are being worked primarily by
volunteers and will cost only a small amount of capital.
However, other areas need attention and will require significant expenditures.
The parking lot and cart paths need major work.
The dining room needs a makeover.
It wouldnt hurt to spruce up the Pro shop, the Hut, and the fishing lakes.
The question is this: How do you raise capital for improvements when cash is short?
No one likes to hear this, but a membership assessment fee is an option.
Having assessments is not on the agenda tonight. And the By Laws state Any
assessment fee shall be determined by the voting members. Everyone on the
Board of Directors is a dues paying members and no one on the board wants be
assessed and we know none of you want to be assessed either.
Another suggestion ask current members of South Park to invest in the club and
have the investment backed by the security in South Park property. In other words,
the participating members would be in a Partnership that holds the South Park
mortgage. Suggested terms are a 5 year investment with a 5% per annum return.
The total debt including the mortgage, Certificates and Line of Credit but excluding
the SBA Loan is $702K. These debts (excluding the SBA loan) will be consolidated
into a note secured by the mortgage. The note will be held for 5 years at a 5% per
annum interest rate. South Park will be required to pay the note in full in 2021. Any
additional capital invested will be added to the note. If anyone is interested or
would like to comment, please contact a board member.
Whether these much needed improvements are made quickly or gradually will of
course depend entirely on available funds. But they must be done and the Board of
Directors is adamant to keep South Park open and fun for ALL of our members, long
time members, new members and returning members to enjoy for many years to
come.

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South Park Country Club

have (0) Associate members under the age of 40.

4. Allow the Board of Directors to determine the value of the Corporate

Long Term Plan

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