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% of club improvement programs went more than 40 percent over budget 59% of club executives were satisfied with their club’s improvements |
The rebuilding boom has brought new ideas for putting more fun-not always a lot more funds-into properties.
Scaffolding, backhoes and temporary trailers are now as much a part of the club and resort landscape as leather chairs and patio canopies. Even properties that aren’t all that “old” or “established” are in the thick of the scramble to improve and expand facilities—not only to make up for time lost during the post-9/11 slump, but also to stay competitive and provide the greater variety of services and amenities that members and guests now expect.
The scope and price tags of some of these projects are jaw-dropping. But as the renovation rage has gained traction, the industry has also demonstrated remarkable resourcefulness. In some cases, as with the Daniel Island Club, facilities have successfully adopted a fund-as-you-go approach to create what’s needed without breaking either budgets or members’ spirits.
Here are some other noteworthy developments from 2006—and things to watch going forward—in what promises to stay a dynamic club design scene for some time to come:
Life Begins (Again) at $40 Million
An October report in the Arizona Daily Star on a planned renovation for the Omni Tucson National Golf Resort & Spa captured just how far many properties have had to evolve to stay competitive. Founded in 1962 as a golf course and country club, the property was bought by the Omni Hotel Chain in 1990 and has since seen several remodeling projects—most recently a $9 million expenditure to create two championship golf courses that opened last year.
$2m
of clubs that incurred debt during improvements, 21 percent said they took on between $1.1 and $2 million |
But all of that is pocket change compared to what’s now to come: a $40 million renovation and expansion, set to begin next summer and not be completed until late 2008. When all the dust settles (and the property will be kept open during all 14 months of construction), the resort will have a new main lobby and lounge, 239 “luxury boutique” rooms and suites (72 more than current capacity), a renovated 15,000-sq.-ft. spa, a new 7,500-sq.-ft. ballroom, a new formal steak house, and a juice bar and café.
Still, David Morgan, the resort’s General Manager, doesn’t see this as in any way over-the-top. “In basic terms,” he told the paper, “we want to bring the resort up to current standards.”
Permission Granted—For Now
A trend worth watching for all properties that may have run into stumbling blocks when trying to get their expansion or renovation plans in motion: Many municipalities are now thinking about setting time limits on projects by putting expiration dates on building permits.
In Nashville, Tenn., for example, city officials grew alarmed this year when developers of 60 long-delayed projects, some approved as far back as the late 1970s, finally announced they were ready to start construction—much to the dismay of citizens who had since bought homes in the affected areas, unaware of the already-approved potential for nearby developments.
A Nashville city councilman proposed a shelf-life for the permits of six years, to “put the responsibility on the developer” to move forward in a more timely fashion.
Been There—Don’t Do That
Selected comments from surveyed club managers who were asked for “general advice you would give other clubs and their managers for their next clubhouse improvement program”:
• Don’t use members or “connections” to have work done. And always add 15 percent to the total estimate—it will somehow end up in the final figures.
• Plan on the actual project taking up to 10-15 percent longer than anticipated.
• Make sure you check the design with a magnifying glass; having an expert in the field provide design work doesn’t always ensure that your particular issues are being addressed.
• Keep refining until you get what you want.
• Have a large enough contingency to adjust for unforeseen expenses and additions. The membership will not enjoy this, but consider it a must for their new facility.
• Don’t go with a major renovation. Tear down and build new. Trying to marry old mechanical equipment to new equipment is a nightmare. Keep the clubhouse small and create a grill room that will work nicely as a main dining facility during the off-season. Large dining rooms are a waste of money and very difficult to keep occupied. Provide a large enough “common” lounge for couples and families to enjoy.
• Make sure member surveys and focus groups represent the demographics of the club proportionately, so expectations (two to three years out) are in sync with “changing times”—i.e., families vs. formal dining.
• Listen to your staff—seek their input and give them a voice at least equal to the members.
• Make everyone aware of the borrowing process and the reason that process was selected.
• Don’t lose your chef in the middle of a kitchen remodel.
Source: Private Club Facility Improvement Survey, McMahon Group, Inc., January 2006
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