FAQ

The Member surveys conducted in 2015 and following the Plan 2020 vote indicated that the elements in Renew ‘22 are the most critical improvements needed. At the heart of Renew ‘22 is the reimagining of our food & beverage offering, which is the element of the Club that touches all Members.

Since those surveys were taken, Membership demand has grown, which means capacity in our food & beverage operations has become continually more challenged. We aren’t meeting Member needs in our current situation. Our recent 2021 Member Satisfaction survey showed 58% of Members are unhappy with our current F&B operations, a statistic the Board and Management find unacceptable.

20% of Hollyburn Members are under the age of 16. The Club needs the right facilities to serve and engage this demographic. Relocating the administration offices upstairs (to the current Creekside Room location) gives us the perfect opportunity to give back 25% of prime-Club real estate to Members for improved youth space.

Hollyburn is in a great financial position, making this a good time to invest in the Club’s future. As of April 1, 2022, the Club is debt-free having paid off Plan 2007 in only 12 years, three years ahead of schedule. In addition, by the time construction is scheduled to begin, we will have an estimated $5 million in cash.

Construction costs and inflation are rising fast. Due to this, our independent cost estimator, BTY (a Quantity Surveyor) has estimated that project escalation will be around 7% per annum. The sooner the construction begins, the more value the project will bring to the Club.

This work is already overdue and would have begun sooner, if not for COVID-19.

Some of the Club’s critical facility infrastructure in the food & beverage areas are either end-of-life or require significant maintenance. Whether it’s our roof, our mechanical systems, or our plumbing and drainage, these are not projects that can be put off and they will need to be addressed regardless. Repairing all of these will cost over $4 million and will not improve any Member areas. Doing this work as part of the Renew ’22 project enables us to conduct the work more efficiently and limit disruption by dovetailing it with the other renovation work.

We know that there are many opportunities for potential upgrades around the Club. Once Renew ‘22 is approved, we can begin conceptualizing the next future capital project. The Club’s Long Range Planning Committee has already commenced the Club’s next long range planning cycle which includes the upcoming 5-15 years. This will ensure we are staying on top of future needs.

By accomplishing the needs that Renew ‘22 sets out to accomplish, the Club is that much closer to addressing other facility needs, such as, and not limited to, increasing parking, and adding additional pickleball and tennis facilities.

The project management team includes:

The Project Manager will be responsible for the day-to-day management of the project. In February of 2022, the Club issued a Request for Proposal for project management services for the Renew ’22 project. Four proposals from qualified firms were received and the two shortlisted proponents were interviewed by the Renew ’22 Special Board Committee and Management. The Renew ’22 SBC recommended Make Projects be awarded the contract for Project Manager for the Renew ’22 project. Currently the Club is only under contract up-until June with the option to extend should the project be approved by Member vote.

The Special Board Committee will advise the Board and Management. The Committee will include both Board Members and Members-at-Large who have knowledge and experience that are beneficial to this project.

Club Management will have responsibility for day-to-day oversight of the project team, while also ensuring that Members’ experience and Club operations, programs, and services are disrupted to the least extent possible.

The estimated cost of Renew ‘22 is $23.3M. The $23.3M budget is the maximum amount Members will be authorizing for the project. We are committed to completing this project within the budget voted on by the Members.

This budget includes design and construction contingencies to allow for budget changes as construction proceeds and as costs become more certain. An additional allowance of 7% per annum has been included for escalation leading up to construction tender. This allowance was recommended by BTY, the third-party quantity surveyor and is based on current and anticipated market conditions.

To ensure the accuracy of the budget, an independent cost estimate has been completed by a third-party quantity surveyor, BTY, and cross-referenced with an initial construction budget provided by our project Manager, Make Projects. BTY and Make Projects used different methods of cost estimation for this process and still achieved very similar estimates (within 1%). This gives us a high degree of confidence that the provided budget is reasonable.

At any point in the process, even after the Club has received approval from the Membership, the Club can value-engineer the project to ensure the project does not exceed the approved budget.

Project Budget: $23.3M

Hollyburn is in a great financial position, making this a good time to invest in the Club’s future. As of April 1, 2022, the Club is debt-free having paid off Plan 2007 in only 12 years, three years ahead of schedule.

This budget includes design and construction contingencies to allow for budget changes as construction proceeds and as costs become more certain. An additional allowance of 7% per annum has been included for escalation leading up to the construction tender.

To ensure the accuracy of the budget, an independent cost estimate has been completed by a third-party quantity surveyor, BTY, and cross-referenced with an initial construction budget provided by our Project Manager, Make Projects. BTY and Make Projects used different methods of cost estimation for this process and still achieved very similar estimates (within 1%). This gives us a high degree of confidence that the provided budget is reasonable.

The project will be financed through cash-on-hand (approx. $5M at the start of construction) and traditional bank financing (not to exceed $20M).

No capital improvement fee will be assessed to Members.

Project Support

Renew ’22 is supported by the Board, Renew ’22 Special Board Committee, Finance Committee, and Food and Beverage Committee.

The Board of Directors will closely monitor the project. A Special Renew ‘22 Board Committee, made up of four Board members and two Members at large, has been formed to guide the project, monitor progress and advise the Board.

The Long Range Planning Committee agrees that this project is an essential part of the Club’s long-term goals.

Procurement Process

A competitive procurement process was held for the project manager and will be held for design consultants, and general contractors.

In February of 2022, the Club issued a Request for a Proposal for project management services for the Renew ’22 project. Four proposals from qualified firms were received and the two shortlisted proponents were interviewed by the Renew ’22 Special Board Committee and Management. The Renew ’22 SBC recommended Make Projects be awarded the contract for Project Manager for the Renew ’22 project. Currently, the Club is only under contract up until June, with the option to extend should the project be approved by Member vote.

Make Projects is a project management service provider specializing in owner-side project management. They provide a creative vision for project development and construction across the Commercial, Education, Health Care, Municipal, and Industrial sectors.

The project will be financed through a combination of cash-on-hand (approx. $5M at start of construction) and traditional bank financing (not to exceed $20M).

The bank financing will be serviced over the life of the loan by way of new membership revenue. The debt servicing model conservatively forecasts an average of 50 new regular memberships per year following construction.

No capital improvement fee will be assessed to Members.

A conservative financing plan was developed by the Club’s CFO with guidance from the Club’s Treasurer and Finance Committee.

The Finance Committee was given access to the debt servicing model to run stress tests to ensure its feasibility.

At their April meeting, the Finance Committee all agreed that the financing plan for Renew ’22 is achievable and recommended financial approval of Renew ’22 to the Board of Directors.

Due to the strong financial position of the Club, there is no need for a capital improvement fee.

Our food & beverage facilities aren’t meeting our Member needs. Our recent 2021 Member Satisfaction survey showed 58% of Members unhappy with our current F&B operations, a statistic the Board and Management find unacceptable. In addition, Management receives consistent feedback that we need increased seating capacity to meet demand during prime time.

Some of the Club’s critical facility infrastructure and systems in our food & beverage areas are either end-of-life or require significant maintenance. Whether it’s our roof, our mechanical systems, our plumbing and drainage, or seismic structural upgrades, these are not projects that can be put off and they will need to be addressed regardless. Doing this work as part of the Renew ’22 project enables us to conduct the work more efficiently and limit disruption by dovetailing it with the other renovation work.

20% of Hollyburn Members are under the age of 16. The Club needs the right facilities to serve and engage this demographic. Renew ’22 will refresh, relocate, and centralize our youth facilities improving convenience and accessibility for families. Relocating the administration offices upstairs (to the current Creekside Room location) gives us the perfect opportunity to give back 25% of prime-Club real estate to Members for improved youth space. Centralized youth space will also allow our Youth Team to better service youth areas, increase youth supervision, and eliminate children running from one youth area to another.

This project helps achieve Hollyburn’s mission of being a “Club for Life” and vision to become Canada’s premier private athletic Club.

The food & beverage facilities that are being upgraded as part of the plan will benefit all Club Members, regardless of age or interest, as they are the social heart of the Club.

Members have told us that Hollyburn’s food & beverage facilities are not meeting their needs. Members have expressed dissatisfaction with the availability of seating, the speed of service, and the outdated atmosphere. We know that Members are not proud of the facilities, and therefore are not choosing the dining room as a destination restaurant, but rather just for convenience. We believe we can meet both needs with the Renew ‘22 project.

It is important to preface this answer with the fact that these are estimated seating capacities and that the new seating capacities are hard to compare to our existing numbers. Restaurant consultants will be engaged to help design the floor plan of the new spaces; the new spaces will include an assortment of seating options from booths to high- and low-top tables. The current dining spaces predominantly only offer one type of seating option and our floorplans are not well thought out.

The current Bar and Grill will become and expanded family dining section with 40 more seats than our current space.

The current Dining Room will become the newly created adult dining area (19+, no exceptions) with over 50 more seats than our current space.

The expanded patio will have 30 more seats that make the most of the Club’s breathtaking views.

The expanded Bistro will have room for an additional 38 seats.

By centralizing youth facilities, we are increasing Member convenience, safety, and accessibility.

This location also allows for the construction of a brand-new outdoor playground, accessible to all Members, not just those in Hollyville.

Centralized youth facilities will allow for increased operational efficiencies for our youth staff giving them more time to spend with our mini-Members.

Expanding our youth facilities will allow our Youth Team to add new and additional programming to meet the needs of our youth population. This will help to alleviate waitlists in popular programming.

See Project Timeline

The Club is committed to having a social hub, serving food & beverage, open throughout construction. Take-out will also be available during this time.

The Club will deliver all regular programming, lessons, and activities throughout the construction project.

Though during the 24-month construction period things will be somewhat different, we can all look forward to a better future in which our social spaces are greatly improved and meet our Members’ needs.