smgcc.org

Dear Members,
Here is an update to Phase 2 of the Master Renovation Plan (MRP). The original timeframe for the start date of the main dining room has been extended to mid-March due to completion of final bids and negotiation with four banks on the line of credit. The board has received final cost estimates and the total expense will be approximately $230,000. The construction should be complete by early May. The line of credit will be for 90 days. At maturity, the balance on the line of credit will be combined with the remaining balance on the pool note with a 5 year amortization. The combined balances will be paid back over 5 years with any pre-paid assessments applied to reduce the principal balance. It is expected that we can pay off the note in less than 5 years.

As was presented to the membership at the annual meeting in October, the MRP phase 1 (pool) assessment was approved to extend from August 2010 to January 2014. Full members will continue paying $31 and Social Members will continue paying $14. Thus, there is no increase in current member assessments, only an extension in time. Members who pre-paid the MRP phase 1 (pool) assessment began paying $15 from January 2009 through January of 2012, which is basically an extension of 3 years. All members have the opportunity to pre-pay the extended assessment with a 5% discount. The pre-paid assessment money is being accounted for separately and deposited in the club’s money market account. The pre-paid money will be used to reduce the principal balance on the loan, which will reduce the amortization period.

If any members have additional questions, please contact club management or one of the board members.

Sincerely,
Tom Mastin
Treasurer