$2.75 Million – What to do with It?

Somersett UnitedThe following communication between the Somersett Country Club president and and its members is provided for SU reader information:

“Somersett Golf and Country Club Members,

            I would like to address questions regarding the direction of the Club. We are anticipating the completion of the purchase/lease which will deliver to SGCC $2.75 million. While the actual date of completion of this deal is not completely certain, the Board of Directors is taking action right now to evaluate the best use of this money to ensure the long-term operation and success of our club. Let me begin by saying there is not a predetermined direction or plan. Rather, it is our intention to examine all possibilities. Our decision spectrum spans from holding onto the money while continuing to operate the club within our current budget to utilizing the funds to expand our existing operations by building a clubhouse and developing additional services to improve our business model.

            This past Saturday, January 10th, the Board of Directors met for over four hours, hearing from Stuart, Robert, Tammy, Dan, and Anna. Each presented the board precise lists of immediate needs as well as ideas for club developments and improvement. Their grasp of management needs and vision is a testimony to why we find ourselves in the fortunate circumstances we are in. It was agreed by the Board that we need to act quickly, to begin generating a focus and plan in anticipation of and in advance of the closing of the deal.

            To this end a committee consisting of both management and members has been established. This committee is charged with coming up with options that will be brought to public workshops that you, both equity and preview members, will participate in. Out of these workshops a consensus will be developed.

            There is some key information which we think would be useful for you to have at this time. First, our club has been operating profitably for the past few years. For most of the last year the SOA contributions have NOT been included in our budget. Therefore, this Club operated in the black based on a sound budgeting and independent of SOA funds. Second, we currently have healthy cash reserves.  Finally, our budget projections for 2015 are cash neutral and the trends in membership development remain promising.

            Because the building of a clubhouse is a significant option to be considered, we believe it is important to examine clubhouse design, construction, and costs at this time. Our plan is to consider at least three options for membership consideration, including the “do nothing” option. The goal is to generate a “consensus facility”. The consensus facility will be drawn up, cost estimated, and included in the membership discussions and vote. We have all the necessary engineering expertise and design skills in our membership so we will not have to subcontract any of this process out, i.e., we are not spending any funds to get us to this point. Repeat we are not spending funds to get us a consensus set of ideas or drawings. Once membership has voted then and only then will we reach out to get a stamped and permit worthy set of drawings.

            Some assumptions we are including are; this facility must be cash neutral on our existing operations. This facility will not be considered a large revenue generator per se, i.e., we are not planning on future weddings and banquets to fund this. The facility needs to be large enough for us to accommodate our membership events on our own property. The existing building currently housing the Sunsett Grille will be used for some office and storage thus reducing the overall footprint of any new facility. We must continue to operate as we have in the past six months without our largest former customer, the SOA.

            We hope you are as excited about our future prospects as Staff and Board members are. We look forward to seeing you at our Board meetings as well as the discussion meetings which will be coming soon.

Glen Armstrong, Somersett BOD, President

Options Committee:

  • Jason Lewis – Chair
  • Wayne Griffin
  • Kent Graham
  • Bonnie Hughes
  • Kim Nunley
  • Matt Rasmussen “

One thought on “$2.75 Million – What to do with It?

  1. This and all future internal communications from the board or any other SGCC members are considered confidential and as such should not be posted on this site. All future correspondences will be labeled as such and if distributed on SU, legal action will be pursued against the site and the people that are releasing them.

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