STEWARDSHIP AND VISION: A MESSAGE FROM TREASURER DAVID WILKINSON
Dear Fellow Members,
I hope this message finds you well and enjoying the many amenities that make Wilmington Country Club a special place for all of us. Our Club has been considering how to best address overdue improvements to our campus-wide irrigation system and many facets of the North Course. As with past projects, the current one was developed in the scope of our Club’s mission principle: “to continue being one of the finest private country clubs in the United States, with a primary focus on meeting the desires of our members, their families, and personal guests”. The scale of this project is significant given the size of our campus and the many needs of the North Course. Historically, our Club has funded projects internally, but nothing to this magnitude in many decades. The sheer size of the project requires funding from a combination of existing cash flow, bank debt, and Member investment. A planning committee for the project was initiated by the Board of Directors in 2018 and, after many iterations, a basic construct for the project was developed in 2024. Subsequently, a Funding Committee for the project was established in 2024. Objectives considered by this committee included: Determine an appropriate amount of funds to borrow: Our Club is strong financially. Many factors were considered in determining how much should be borrowed. Sensitivity models were used to analyze how changes in key variables (membership, revenue, debt, etc) would affect the Club’s cash flow and its ability to service term debt. Data from clubs which have recently completed similar projects was also incorporated into our modeling. It was determined that a term loan of $7-$10MM could be supported by the Club without having to peel away funds allocated to obligatory capital needs, nor require direct increases in dues, over an extended period. Member’s investments will fund remaining needs of the project and are necessary given the scale of the project. Identify the most competitive financing solution in our market: Our existing bank and others in the market were asked to propose terms for financing this project. We were pleased with how competitive the banks were in their responses and are confident that we have negotiated a very solid solution with our incumbent bank. Determine flexible payment options for the member investment while considering factors such as age and membership classification: Best practices in this regard were provided by other clubs in our area and, with input from WCC members, were used to develop the options outlined within this presentation. The Funding Committee, Executive Committee, and many others were very thoughtful in their efforts to develop a financing solution for this project. From these efforts, a sound plan that incorporates both external and member funding sources and offers a variety of payment options for members was developed.
Thank you,
David Wilkinson
26
Made with FlippingBook Digital Publishing Software