Lockwood Folly Community Center South Elevation (View from Water) - - PowerPoint PPT Presentation

Lockwood Folly Community Center

South Elevation (View from Water)

New Community Center

Presentation to Lockwood Folly POA Members

Purpose of Presentation

• Present the Facts About a New

Community Center

• Provide Membership with Information to

Make an Informed Decision

• Answer Questions

Presentation Preview

 Project Overview  Construction Options & Why LFCC Amenities

are Included

 Site & Building Details  Project Cost, Member Cost, & Timing  LFCC & POA Benefits for a Shared Facility  Why Your Board Strongly Supports this Project  Voting details

 Q & A

Project Overview

Review: Reasons for New Community Center

 We need additional event seating capacity  We need smaller private rooms to handle

simultaneous meetings, social functions

 We need more space to support

Lockwood’s residents’ active lifestyle

Review: Reasons for New Community Center

 We need to prepare for future community

population growth (we’re only about half built out)

 We need to bring Lockwood’s amenities in

line with other competing communities so

• ur property values are protected

Planning Steps

 A clubhouse committee has researched options

for a new building for about 3 years

 They identified several important capacity and

functional requirements that a new building should

• ffer Lockwood residents

 Last fall, Taylor construction was contracted to

draw up preliminary designs for the structure

 Taylor has completed concept drawings and

provided cost estimates

 We will review those plans today

Construction Options

Construction Option 1 : Build vs. Expand

 Expansion of the existing clubhouse was rejected

• Current clubhouse floor plan is not adaptable to

defined needs of the new facility

• Any additions to the existing clubhouse requires

us to meet updated building codes, including the American Disabilities Act, which involves massive modification costs

• Not much cost difference between adding on vs.

tearing down the existing structure and starting

• ver
• Contractors unanimously discouraged expanding
• ur clubhouse

Construction Option 2: Build on Adjacent POA Land

 Building on the POA property next to the

condos was rejected

• Concern about noise & proximity to

townhomes

• Awkward access to parking
• We lose much of our great water view

Construction Option 3: Purchase Existing Anne Arnold Building

 Purchasing the Anne Arnold building was

rejected

• Not enough parking space
• Poor location for after-golf events
• Building is over 20 years old and needs

updating

• Building floor plan is not suitable and would

require too much modification

Construction Option 4: Build on Adjacent LFCC Property

 Locate the new community center on the

property between the pool and the putting green

• LFCCI transfers ownership of the land to POA
• Relocate the septic tanks that support the

clubhouse, pro shop, café & cart barn to the

• ther side of the existing clubhouse
• Tear down the existing pro shop and café
• Incorporate a new pro shop & restaurant in

the new building

Construction Options: Conclusion

 The POA & LFCC boards concluded that

Option #4 provides more advantages to the total Lockwood community

• No other POA owned property offers a

suitable location for the new building

• Since our existing clubhouse is structurally

sound, a new building on another site allows us to retain it for alternate uses

 Suggestions include moving workout equipment

upstairs and creating a craft center on 1st floor

Site & Building Details

Lockwood Folly Community Center

South Elevation (View from Water)

Lockwood Folly Community Center

Parking Lot View

Lockwood Folly Community Center

Poolside View

Lockwood Folly Community Center

Putting Green View

Lockwood Folly Community Center

Waterfront View

New Community Center-1st Floor

 Designed for the Lockwood community

• verlooking Inter-coastal waterway

 16,100 total square feet (11,800 1st

Floor)

 2 Kitchens: Commercial and Catering  Elevator to 2nd Floor

New Community Center-1st Floor

 Large Meeting Room:

• Dinner Seating for 225 people vs. 100
• Theatre Seating for 485 people vs. 108
• Can be subdivided for smaller functions
• Meets Fire Marshall capacity code

 Pro Shop and Restaurant next to putting

green

• Approximately 4000 square feet
• Inside restaurant seating for 68 vs. 34
• Outside restaurant seating for 24 vs. 12

New Community Center-2nd Floor

 4300 square feet  Office Space  Library/Card Room and Separate

Meeting Rooms

 Conference Room

Site Plan

Proposal Summary

 Community Center will be financed & owned by

POA

 Proposed building site is on the property

between existing clubhouse and Pro shop/cafe

 LFCCI transfers the land for the building to POA  Existing pro shop & café will be torn down and

relocated in the new community center

 The project includes replacement of septic tanks

and a new septic field under driving range, per code requirements

 The project includes replacement of the existing

parking lot with 17 parking spaces added

Project & Member Costs, Timing

Costs

 All building costs, including outfitting both kitchens,

septic system replacement and parking lot replacement, but less furnishings (tables, chairs, sound system, security system, etc.) -- $2.5M

 Estimated furnishing & misc. costs -- $300K  Estimated total project cost -- $2.8M  Financing through BB&T bank

• Note: BB&T does not require the normal 15%-20% down

payment because they consider the land as collateral

Financing Options

Loan Period Interest Rate One Time Assessment Annual Member Cost Total Member Payment 20 years 6% None $370 $7,400 15 years 6% None $440 $6,600 Either $4,500 $4,500

Financing Options

 The 3rd option listed will be open to all

members, regardless of which financing plan (15 or 20 year) is chosen

• A one time $4500 payment
• The paid up status remains with the property

and would transfer if the property is sold

• Due at the beginning of the assessment

period

Costs

 The costs apply per lot and are the same for

residents and lot owners

 Ballots will include the 2 financing options so

residents may vote on the one they prefer

 The pay up front option will not be on the ballot

since it is available to independent of which mortgage term is chosen

Timing

 Septic Permit is long lead time item: 12 -

15 months

 Other permits 2 - 3 months  Construction won’t begin for at least 14

months

 If POA approves project in July 2009,

ground breaking would be sometime between Sept. 2010 and Jan. 2011

Timing

 Your annual POA payments for the

community center would commence sometime around January 2011

 Construction takes 12 – 15 months  The new community center, if approved in

July, would open sometime in 4th quarter 2011

Why Build Now in a Depressed Economy?

 Under $150/sq. ft. construction costs,

including kitchens, septic & parking

• Construction material prices are depressed
• Labor bids are more competitive

 While we take advantage of lower costs

now, our payments won’t start until 2011

LFCC & POA Both Benefit by Sharing The New Community Center

Why Would LFCCI Consider Transferring Ownership of Property to POA? Recall that ---

 LFCC owns the proposed construction site

and the buildings on it (pro shop & cafe)

 LFCCI also owns the parking lot  LFCCI owns the septic system that supports

the clubhouse, pro shop & cafe, located under the driving range

Why Would LFCCI Consider Transferring Ownership of Property to POA?

 The pro shop & café are rapidly deteriorating  The septic field is close to the end of its 25 yr. life  The parking lot needs major repairs or replacement  These problems represent major near term costs

that LFCCI membership will have to bear

 A community center that incorporates a pro shop &

restaurant solves the POA capacity problem and the LFCCI cost problem

Why Would LFCCI Consider Transferring Ownership of Property to POA?

 The LFCCI and POA boards of directors propose

that LFCCI transfers title of the site to the POA at no cost based on the following conditions:

• POA agrees to incorporate pro shop & restaurant in the

new building

• POA provides rent free occupancy as long as LFCC is an

equity owned golf course

• POA & LFCC will work out an equitable method of sharing

building expenses (utilities, cleaning, etc.)

• Ownership of the land reverts to LFCCI if the community

center is not constructed

What are the Advantages of Including Pro Shop & Restaurant?

 Offers savings to both the POA and LFCC

compared to “going it alone”, i.e., building separate facilities

 A single building maximizes floor space

and minimizes cost

 The larger restaurant offers many

enhanced features that will appeal to non- golfers

LFCC & POA Member Benefits

 LFCC members will vote on transferring land for

the proposed building site at no cost to the POA

• A yes vote is required or the project is dead
• Ballots must be postmarked by July 1

 The land has been appraised at $710,000  In consideration for the land value, the POA

incorporates a pro shop & restaurant in the new community center

 LFCCI gets rent free use of the pro shop &

restaurant as long as it’s an equity owned golf course

LFCC & POA Member Benefits

 LFCCI faces up to $1.1M in costs for

replacement of buildings, septic system and parking lot

 Using the 15 year financing option @ 6%,

that translates to $533 per year for each of the 200 or so LFCCI members

 If community center is built, they pay $440

(as POA members), a difference of $93

 So, are LFCC members getting a better deal

than POA members?

LFCC & POA Benefits Reconciled

 If POA purchases the land in question at

its appraised value, the mortgage increases by $710,000, from $2.8M to $3.5M

 At 6% &15 years, the additional mortgage

payment would be $70,000 per year

• Member costs increase from $440 to $554 per

year, a $114 increase

 LFCC transfers land

to POA at no cost

 POA builds pro shop

& restaurant

 LFCC avoids $1.1M

amenity replacement costs

 LFCC transfers land

to POA at no cost

 POA builds pro shop

& restaurant

 POA avoids $710,000

cost for land LFCC Members POA Members Members Save $93/yr Members Save $114/yr

LFCC & POA Benefits Reconciled

 Both the POA membership and the LFCCI

membership share almost equally in the savings created by incorporating the LFCC amenities in the community center

 Neither group benefits more than the

• ther, and that is why this proposal is a

win – win for the community

Signed LFCC/POA Agreement: Land Transfer

• Transfer of property does not require

prepayment of current loan or any portion by BB&T

• LFCCI equity membership approves transfer of

land for new Community Center

• Design, function, cost and funding methods

approved by both boards and POA community

LFCC/POA Agreement: Land Transfer

• LFCCI granted same access and

privileges in new Community Center as today, as stated in current POA policies

• If after approval by POA community,

construction fails to materialize in a reasonable time, property will revert back to ownership of LFCCI

LFCC/POA Agreement: Land Transfer

• As part of construction, current pro shop

and café will have to be razed

• Prior to razing, a suitable substitute

would be in place for pro shop desk and food service that meet local and state health codes and board approval

LFCC/POA Agreement: Land Transfer

• After approval by LFCCI and POA

communities, best option for consideration is transfer of the designated land from the LFCCI to the POA for which the LFCCI will receive rent free use of facilities as long as LFCC is a member owned course

Why Your POA Board Supports This Project

Why Your POA Board Supports This Project

 We want to promote Lockwood’s active lifestyle

with recreational space for a variety of diverse activities

• Expanded capacity means people will not be turned

away from popular events

• We can conduct simultaneous meetings & social

activities with limited scheduling conflicts

• We can enhance our workout facility with a wonderful

view of the ICWW upstairs in the old clubhouse

• We have room to add new activity options, such as

billiards

• We can promote resident arts & crafts with a first floor

craft center in the old clubhouse

Why Your Board Supports This Project

 Whether you play golf or not, our course represents

an incredibly valuable community asset

 By providing an economical approach for LFCC to

replace its deteriorating facilities, we can help secure its financial future

• The golf course cannot be developed for housing due to

state impervious surface restrictions-it has no other viable use

• If it fails as an equity course and is sold, there is no way to

predict what impact new ownership will have on the community

• If no buyer is forthcoming and the course becomes

insolvent, it will go to seed, your property values will be devastated

• We could also face substantial annual mowing costs

Why Your Board Supports This Project

 Be it Lockwood’s old clubhouse or the golf

facilities, these amenities do not enhance the community

 The National Board of Realtors reports

that premium amenities can raise property values by 3% - 9%

• That’s up to $36,000 on a $400,000 property

 Sub-par amenities can reduce property

values by 20%

• That’s up to $80,000 on a $400,000 property

Why Your Board Supports This Project

 We have received realtor comments that

although Lockwood is a beautiful community, their clients were discouraged from buying here due to sub-par recreational facilities

 Lockwood is falling behind other newer

communities in attracting new residents

Why Your Board Supports This Project

 This new community center offers new revenue

possibilities for your POA

• Non-member weddings/receptions
• Non-member catered parties
• Local conventions
• Possibilities are endless

 It is possible that with an aggressive marketing

campaign to attract outside functions, some of the building costs could be offset

• Our clubhouse director routinely turns down

clubhouse rental opportunities due to building size constraints, schedule conflicts, etc.

Why Your Board Supports This Project

 For $2.8M, the community gets:

• A 16,000 sq. ft. community center with double

the current event seating capacity

• A larger, fully equipped restaurant with twice the

seating capacity as our existing cafe, attractive to non-golfers

• A fully equipped catering kitchen
• Needed office space for POA & LFCCI
• Elevator to 2nd floor
• New septic tanks & 25 year septic field
• New parking lot with 17 additional slots

Why Your Board Supports This Project

 Factoring out the septic & parking lot

costs, we get this property & building for about $145 per square foot, an incredible bargain

 By the time we do this again expect to pay

twice the price

Voting Details

 Ballots will be sent out in July, subsequent to

LFCC approval of land transfer

 Ballots will be submitted no later than August 15  Only votes submitted by voting deadline will be

counted

 2/3 majority of votes required for approval  Un-voted ballots will be cast in proportion to

voted ballots

 If approved, the financing method will be

determined by the option with most votes on “yes” ballots

If Approved

 POA will establish committees to monitor

construction & outfitting the new building

 After construction, POA will evaluate re-facing the

• ld clubhouse to make it match the new structure
• Funding would not require another special assessment
• “Sweat equity” teams will be formed to modify the old

clubhouse interior for alternative uses

 The POA & LFCC treasurers will develop a method

to allocate shared building costs (cleaning, etc.), approval required by both boards

Q & A

Thank You!! Thank You!!

• Thanks to our friends and neighbors who

spent countless hours on the New Community Center Committee: Arlene Evans, Ben D’Addario, Leroy Knopfle, Delores Mallory, Russ Mavis, and Jack McGinnis.

• A special thanks to Tom Hoffman and Joe

Parnell who have co-chaired the Community Center Committee all this time.