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

Lockwood Folly Community Center

South Elevation (View from Water)

What a New Community Center Means to the LFCC Membership May 2009

Purpose of Presentation

• Present the Facts About a New Community

Center

• Have an Open Forum for Questions
• Provide Membership with Information to

Make an Informed Decision

Presentation Overview

• Current LFCC Facilities
• New Community Center
• Land Exchange Required
• Questions and Answers
• Closing Comments

Current LFCC Facilities

Pro Shop/Café

• Built in 1987- 4100 total square feet
• Outside Inspection Done October, 2006
• Structure: Deteriorating with rot/water damage

in Windows, Doors, and Some Walls

• HVAC: System not correctly sized for building

including cold air returns

Pro Shop/Café

• Café Eating Space:
• 34 Seats Inside and 12 Seats Outside
• Limited Appeal to Non-Golfing Diners
• Recent Renovations: Last 4-5 years
• Kitchen Upgrades to meet County Health Code
• New Windows and Door to Pro Shop
• New Counter and Shelving in Pro Shop
• New Toilet in Ladies Restroom

Cart Barn

• Built in 1987/1988- 4900 square feet
• Outside Inspection Done October, 2006
• Overall in Good Condition
• Water Damage on louvered walls on front and rear
• Recent Renovations:
• Replaced rear doors and repaired other damaged

areas

• Will need electrical upgrade for carts in future

Maintenance Building

• Built in 1987/1988- 7600 square feet
• Overall structure is adequate for our needs
• Don’t anticipate any major repair needs.

Half-Way House/Restrooms

• Built 1987/1988
• Half-Way House: 350 square feet
• Used for restroom facilities only
• No food service due to upgrade cost to meet

County Health Codes

• Restrooms 13th Green/14th tee:
• Good condition, painted in 2008

Septic System

• Completed in 1987/1988
• Owned by LFCC and used to support Pro

Shop/Cafe, Cart Barn and POA Clubhouse

• Tank Pumping and maintenance expense shared

with POA

• Normal Life Expectancy: About 25 years
• If failure occurs, must be brought to current

codes including repair field

Parking Lot

• Completed in 1987/1988
• Owned by LFCC and supports both LFCC

and POA activities

• Current drainage issues, deteriorating

pavement and sink holes will have to be addressed in near future

Parking Lot

• Parking Lot is Grand-Fathered in current

condition, but does not meet current water drainage code (drop inlets)

• Storm Water Management project over the

next few years will require excavation in parking lot

• Any major work in the parking lot, including

renovation or storm water drainage would force us to comply with new codes

Estimated Costs: 2009 Dollars

Pro Shop & Cafe Septic System Parking Lot

• Est. Costs

$900, 000 $100, 000 $100,000 Finance Option 15 years @ 6% 15 years @ 6% 15 years @ 6%

• Est. Annual

Cost per Membership $437 $48 $48

New Community Center

Lockwood Folly Community Center

South Elevation (View from Water)

Elevation Views and Floor Plan of New Community Center

Parking Lot Entry View

Pool Side View

Waterfront View

Putting Green 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
• Theatre Seating for 485 people
• Can be subdivided for smaller functions
• Meets Fire Marshall capacity code
• Pro Shop and Café next to putting green
• Approximately 4000 square feet
• Inside seating for 68
• Outside Seating for 24

New Community Center-2nd Floor

• 4300 square feet
• Office Space
• Library/Card Room and separate meeting

rooms

• Conference Room

Cost of New Community Center

• Building cost
• Locking in pricing today provides a reasonable

per square foot cost

• Costs include furniture, appliances, etc
• POA dues impact:
• $2.8M project cost
• 15 year loan @ 6%
• $440 Year per POA member
• No Upfront Assessment

Project Overview

• POA finances New Community Center project
• Building Site is on the property between the

existing clubhouse and putting green

• Pro Shop & Café would be torn down and

relocated in the New Community Center

• Replacement facilities will be on-site for Pro

Shop and Café to continue operations during construction.

Project Overview

• Updated and expanded parking lot to support larger

facility

• Remove septic tanks now located on the building site

and install new tanks in front of current Clubhouse

• New septic field under driving range will be brought

up to code and updated to accommodate increased volume

• Cart Path that runs behind swimming pool would be

relocated to East Side of current Clubhouse with the exit into parking lot

Construction Timetable

• Septic Permit takes 12-15 months for approval

process

• Other Permits will take 2-3 months after septic

approval

• Actual demolition and construction would not

start until late 2010 or early 2011

• Project would take 12-15 months to complete

Location of New Community Center

• Community Center Committee Options:
• Expand and Renovate Current Clubhouse
• Build the New Community Center towards

Townhouses

• Purchase the real estate office at the entrance and

renovate to fit Community needs

• Build New Community Center on property between

existing Clubhouse and putting green

Committee’s Recommendation

• Build New Community Center on the

property between existing Clubhouse and Putting Green

• Other options were deemed to have too

many shortcomings

• This option will require POA to own the

land for the New Community Center

Land Transfer Options

• Sell land needed for New Community

Center to POA:

• LFCC would lease and pay rent for Pro Shop/Café

and Kitchen Space

• LFCC would have to furnish Café and build out the

Commercial Kitchen

• Total rental, furnishing and build out costs could

exceed value of land transferred in about 7-8 years

Land Transfer Options

• Exchange Land for rent free use of space

for Pro Shop/Café and Kitchen

• LFCC will provide furnishings for Pro Shop

(existing counter, shelves, and racks)

• POA will provide all furnishings for Café
• POA will build out and equip the Commercial

Kitchen

Board of Directors Recommendation

• LFCC exchanges land currently used as Pro Shop/Cafe,

Septic, and Parking Lot for rent free use of New Community Center facilities. This rent free use would continue as long as LFCC is a Member-Owned Equity Course

• LFCC would continue access and use of remainder of

New Community Center like every other POA member

Why Your Board of Directors Supports the Land Transfer

• New and Larger Facilities
• Pro Shop/Café and Kitchen
• Office and Meeting Space
• Attractive to potential new members
• Facilities could accommodate larger groups and

simultaneous events

• STOP dumping money into a deteriorating

structure and infrastructure that will need costly replacement shortly

Why Your Board of Directors Supports the Land Transfer

• Invest our dollars in the golf course to

maintain its quality plus we will have access to first class facilities for members and guests

• Continue to Provide LFCC Membership

with the Best Value for their Investment in the Club

Value of the land: Appraisal 5/2009

• Appraised Value of 1.2 acres required for new

community Center is $570,000.

• Assumes land could be sold for building lots
• Septic tanks removed and Pro Shop/Café razed
• Appraised Value of 1.2+ acre parking lot is

$140,000 and takes into account current condition

Bottom Line Conclusion

• If the Community Center is not built and

LFCC members have to fund Future Replacement Costs for pro shop/café, parking, and septic, the cost is $533 per year for 15 years.

• $533 per LFCCI membership per year

compared to $440 per year as a POA member for 15 years for a new Community Center

LFCC and POA Agreement: Land Transfer

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
• f land for new Community Center
• Design, function, cost and funding methods

approved by both boards and POA community

LFCC/POA Agreement: Land Transfer

• LFCCI has same access and privileges in new

Community Center as today and 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

What is the value of LFCCI?

• An Appraisal in April, 2008 placed the value at

$3.6 Million. This appraisal was required by BB&T when we obtained the $500,000 Line of Credit and was based on our 3 year financial records for 2005- 2007

• Appraiser Comments:
• “The golf course business is a highly competitive cash

business”

• “The value estimate by the Income Approach is

considered a reliable indication of value”

Will the land transfer reduce the value of LFCCI?

• The value of the golf course is based on income with

buildings, etc to support this income

• The land transfer appraisal is based on the highest and

best use for the land without buildings or septic system

• If income increases due to new facilities, the value of

LFCCI could increase

• Likewise, an aging infrastructure and outdated

deteriorating buildings could reduce our income

If land transfer is approved what are the next steps?

• POA members have to vote on building and

financing a new Community Center

• If approved by POA members, a land transfer

document will be completed

• Transfer document filed with Brunswick County
• POA will move forward with permitting and

financing

Will having temporary facilities impact golf course revenue?

• Any major construction activity causes some

disruption to everyone. However, this construction should not impact course play that would impact

• utside play revenue.
• We could see some downturn in merchandise sales

and F&B sales due to smaller temporary facilities

• On the flip side, going to a new larger facility

could off-set any short term losses

How will expenses for the New Community Center be allocated?

• LFCCI will continue to pay utility costs for our portion of

the building. This will require separate metering.

• Other costs and services including security, cleaning, etc.

will be worked out by a committee of both Boards. We can not explicitly detail all of these services at this point.

• Since the building would be owned by the POA, they will

be responsible for insurance and taxes

Does LFCCI pay POA dues?

• Master Declaration of Covenants, Conditions and

Restrictions for Lockwood govern our POA dues

• Our dues are based on the individual residence owner

rate times 50 (the number of Class B votes)

• In 2004 the POA members approved reducing our

Class B votes from 100 to 50. This lowered our POA dues from $60,000 to $30,000 beginning July1, 2004

• Our POA dues for the POA calendar year 2008-2009

are $39,750 or ($795 x 50). We budget this in our expenses each year.

Would LFCCI be assessed for a New Community Center?

• Like every other POA member, we would be

assessed

• Our assessment formula is:
• Assessment amount x 50, then 50% of that amount
• If the annual assessment is $440 per POA member, we

would pay $11,000 annually

• Reducing our Pro Shop/Café, Septic, and Parking

Lot maintenance costs should off-set this assessment

Annual Cost Comparison Per Membership: 15yrs @ 6%

• Build Pro Shop/Café: $437
• Replace Septic System: $48
• Repair Parking Lot: $48
• Total: $533 per year
• Community Center: $440
• Total: $440 per year

Questions & Answers

• Questions and Answers from the 4 meetings

will be in the packet sent to all the members for their vote on the land transfer

Membership Q&A

What Members Can Expect After the Meetings?

• Mailing to all members on 5-30 to include:
• Cover letter from the Board of Directors
• Copy of meeting presentation slides
• Copy of artist rendering of Community Center
• Copy of floor plan of the Community Center
• Q&A from all meetings
• Ballot to cast your vote- Return no later July 1
• Presentation slides and drawings will be on LFCC

website on 5-22

Thank You!! Thank You!!

• Thanks to our friends and neighbors who spent

countless hours on the New Community Center Committee: Arlene Evans, LeRoy Knopfle, Delores Malory, 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.

Closing Comments

• The National Board of Realtors:
• Above average amenities in communities

can increase property values by 3% to 9%

• Substandard amenities can reduce

property values by up to 20%

Annual Cost Comparison Per Membership: 15yrs @ 6%

• Build Pro Shop/Café: $437
• Replace Septic System: $48
• Repair Parking Lot: $48
• Total: $533 per year
• Community Center: $440
• Total: $440 per year

Closing Comments

• We are at a major junction as a

community and a country club. Our buildings and infrastructure are 20+ years old, not regarded as the best construction, and require action now and not later. We all have invested in the Lockwood community and its beauty and we should want this dream to continue.

Lockwood Folly Community Center

South Elevation (View from Water)