The 46-year-old club in Westminster, Colo. will have all existing debt eliminated through the arrangement and new improvements estimated at between $1 million and $2 million will be completed within two years, with member assessments permanently eliminated.
The members of The Ranch Country Club in Westminster, Colo. have voted 304-9 to recapitalize with Concert Golf Partners.
The Ranch CC is a family-oriented club on the north side of Denver, 11 miles from downtown. The club, which opened in 1974, has a Richard Phelps-designed 18-hole golf course on 155 acres with rolling terrain and endless vistas of the Rocky Mountains, which plays 6,566 yards from the back tees with a 134 slope.
The club also offers four outdoor and four indoor (bubble) tennis courts, a 25-yard swimming pool with a zero-entry family pool, and a state-of-the-art fitness center.
Membership at The Ranch had declined somewhat in the years after the Great Recession, as successive Boards postponed capital projects and members began discussing a possible renovation program, and the assessments to pay for it. A first vote in 2015 for a $5.5 million club-wide renovation received a 60% “yes” vote, below the required 2/3rds in the by-laws. A second vote was 90% in favor, but the club lost dozens of members as a result of the initiative.
The $5.5 million renovation touched most parts of the club. The kitchen and bar received major upgrades, including a new pizza oven that was a hit with members. Improvements for a new pool, kids club and fitness facilties were also made, all focused on appealing to families. The newly upgraded clubhouse and facilities helped the club add nearly 100 new members in the two years after the renovations were completed.
As 2020 began, the club members and leadership were interested in “finishing the job” and completing projects that were left off the final renovation program five years earlier. The golf course irrigation system still needed work, and several greens with severe slopes needed rebuilding. Bridges on the golf course needed to be repaired or replaced, and the pool has become popular enough that cabanas and a bar expansion were desired. All told, probably another $1 to $2 million of capital was needed for additional projects. But as the COVID-19 pandemic arose and the club’s Board also saw challenges with working capital and The Ranch’s outstanding bank loan, a decision was made to look for potential capital partners.
After a month of studying a recapitalization with Concert Golf, calling references, and visiting clubs, The Ranch’s Board voted 9-0 to take that step. Through the arrangement, the club will get its existing loan paid off and all remaining projects will be paid for by Concert Golf and completed within two years, at no cost to members. Member dues will also remain the same for the next year and a half, and future member assessments would be permanently eliminated.
“The private club industry is changing,” said Board president Kristi Thoutt. “Private club usage is shifting, which has led to a decline in initiation fees nationwide, the key funding mechanism for ongoing capital.”
At The Ranch, Thoutt added, “changing demographics have made people less interested in the internal workings of the club. Members prefer to enjoy the club and not worry about Boards, committees and day-to-day operations.
“The assessment vote for our renovation program [in 2015] was difficult, and we wanted to eliminate assessments for good,” Thoutt said. “Now our members have reduced dues and no threat of future assessments, so we can just enjoy our newly renovated club. Plus, Concert Golf is going to complete the remaining projects we left out of our renovation program.”
Concert Golf Partners, based in Newport Beach, Calif. and formed by Peter Nanula, the founder and CEO of Arnold Palmer Golf Management in the 1990s, now adds The Ranch CC to its portfolio of over 20 clubs nationally that it has built through its focus on investing in and upgrading private clubs in major metropolitan areas, which preserving the identity and traditions of longtime member-owned clubs. Other clubs recently acquired by Concert Golf include the Country Club at Roswell (Ga.) and The Muttontown Club on Long Island.
The Ranch CC members will now also enjoy free reciprocal privileges at all Concert Golf properties, as well as discounted access to more than 500 TPC clubs, Executive Golfer Collection clubs and Pacific Links International clubs worldwide.
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