Member Engagement Session Update
Dear Members,
It has been a few weeks since the launch of Renew ‘22, and on behalf of the Board of Directors and Management, we thank you for your shared excitement and positive feedback.
Our goal is to provide Members with all of the information needed to make an informed decision when it comes time to vote on the proposed plan. We would like to take a moment to thank everyone who has participated in our first two Member Engagement Sessions. The dialogue sparked by Members’ questions has been constructive and educational.
We would also like to thank Members who have taken the time to read our detailed FAQ. Our goal was to proactively answer any questions that we anticipated Members having regarding the plan. Now that we are halfway through our Member Engagement Sessions, we want to take the opportunity to highlight the following questions that have been asked at the sessions which are not addressed in the detailed FAQ:
What is the cost breakdown of the $23.3 million?
The cost estimate broken down by major category is shown in the following table:
The Renew ‘22 financing model is contingent on new Member entrance fees, how will this impact the Member experience?
New Member entrance fees are critical to the success of private clubs and our ability to upgrade facilities and meet Members’ needs now and into the future. This is no different for Hollyburn; however, we would like to reassure Members that the financing model for Renew ‘22 is very conservative in nature.
The model was built with conservative new Membership sales. In fact, the numbers match the Club’s annual attrition rate of approximately 55 Memberships annually. Over the past 10 years, Membership numbers, and demographic statistics have remained very stable due to this balance.
Management and the Board of Directors are very cognizant of the potential impacts to your Member experience if there was a significant influx of new Members welcomed to the Club. We are actively discussing this topic at the Board level and working on both short- and long-term strategies to ensure we find the balance of being fiscally responsible and maintaining an enjoyable Club experience. Limiting the number of new Members into the Club each year is one strategy being considered.
Can you add an online Member Engagement Session in the evening?
Yes, we have adjusted the June 13 Member Engagement Session to a hybrid session. Members will be able to attend online or in-person.
How much of the Club is being renovated and expanded?
Renew’ 22 is primarily a renovation of existing space. The project enables us to refresh a large portion of the Clubhouse, ensuring that the Club’s assets are maintained and updated for years to come.
In total, roughly 25,000 sq. feet of the Club is being renovated. An additional 3300 sq. feet of space is being added.
A detailed breakdown of the estimated square footage of existing and proposed spaces can be found in the chart below:
What will happen if the vote does not pass?
As some of you know, there are necessary facilities and systems upgrades that are required to be completed regardless of the outcome of the Renew ’22 vote. Unfortunately, with direct costs of more than $5.6 million, plus indirect costs and contingency, these upgrades are over the Board of Directors capital spending threshold and cannot proceed without Member approval. As such, should the Renew ’22 project not be approved by the Membership, the Renew ’22 Committee would need to evaluate and consider a revised project for necessary upgrades only and have members vote again on this overdue re-investment.
Therefore, it is important to reiterate the critical need for Renew ‘22 and the opportunity costs at stake. A project of smaller scale will NOT meet Hollyburn’s needs and will still require significant capital spending. Just upgrading the kitchens, not including an expansion, would not help address the food and beverage capacity restraints we face daily, would not improve speed of service or consistency, and would not improve your overall Member experience.
If you haven’t already, please join us for one of the final Member Engagement Sessions:
If you have questions please contact us at Renew22@hollyburn.org. Please remember to cast your vote when the voting window opens on June 13.
Thank you for your ongoing support.
– Renew ‘22 Team