Solutions for Mandatory Membership Clubs

[howlinowl]

Originally Posted by City Guy997S

Actually Frenchman's Creek is still alive and well. They did sell their marina to a developer about 10 years back. I think they sold it for 6mm and he ran it for a few years then sold the land around the marina to a condo developer for like 14mm and kept the actual marina. That influx of cash (6mm) surely helped the HOA fund the costs of the club but I think they sold too big of an asset for such a short term fix.

Trump acquired the Ritz Carlton property across the street from Frenchmans.

The big mistake as I see it is the "keeping up with the other clubs agenda." Clubs need to be renovated but in their quest for new members the clubs tend to try to outdo each other to have the latest, nicest remodel. This drastically increases the cost of the remodel and the cost of maintaining the new club. Mirasol just spent 40mm to remodel their 10 yr old clubhouse. The kicker, THEY FINANCED 30MM OF IT! So if the clubhouse was outdated in 10 years the first time, now they have to pay for it over the next few years there won't be much of a budget to remodel it again in 10+/- years. It also increased their overhead costs by 1.3mm a year. So more debt, more upkeep costs.
https://www.mypalmbeachpost.com/news...qUUXniaZrwUQP/

Golf memberships will increase by $175 a month for 12 and a half years. That's $2100 a year, $26250 over the 12 and a half years. That's just the increase, add that to whatever their paying now. Wow, just to play golf..... So, if I had one of these memberships and I want out....what are my options? Can I just quit and they gotta find another sucker? Do I have to try to unload my membership (put it on ebay for a dollar and hope someone bites?)? If it's as easy as just quitting (maybe losing whatever I've paid to join, but what the heck?) and others do the same, the club could find themselves in a bigger mess.

[City Guy997S]

Originally Posted by howlinowl

True, but if the club goes bankrupt, who owns the property? Unless the homeowners want to pony up to purchase and maintain it, I don't really see what say they have in it (unless there's something I'm not aware of). Everybody wants "not in my backyard", but it's not really "their" backyard. Unless you own it, I don't really see where you'd have a say in it. Same thing with folks who build on a piece of property for the view and get bent when the property between them and "their view" gets developed. You want to maintain "your" view, buy the property between you and it....Otherwise, butt out. At least that's "My View" anyway.



Frenchman's Creek. I called it Fisherman's Creek also. I knew it was near there.


howlinowl

you are correct, if you don't own the land you can't dictate the use

The developers let the land grow wild, then the homeowners realize that overgrown vacant land will never be a golf course again. 5-10 years looking at that eyesore and suddenly new condos is a nice alternative

[City Guy997S]

Originally Posted by howlinowl

Golf memberships will increase by $175 a month for 12 and a half years. That's $2100 a year, $26250 over the 12 and a half years. That's just the increase, add that to whatever their paying now. Wow, just to play golf..... So, if I had one of these memberships and I want out....what are my options? Can I just quit and they gotta find another sucker? Do I have to try to unload my membership (put it on ebay for a dollar and hope someone bites?)? If it's as easy as just quitting (maybe losing whatever I've paid to join, but what the heck?) and others do the same, the club could find themselves in a bigger mess.

Not sure.......no answer that fits all.

In many clubs the membership was "optional" in the beginning so if you never joined then it isn't your problem. Then as the place builds out the developer makes you at least a "social member" with limited access/expenses. In many places you have to own a home in the country club, the membership attaches to the property so unless you move you can't unload the membership.

Also consider you still have to pay to play each time. Cart fees/trail fees if you have your own cart. My buddy joined a local club, 100K to start, 18K a year in annual dues. His first "club bill" was $2400 which was the $14 grill cheese sandwiches, the kids tennis lessons, the bar bill, etc. So even 2K a month is 24K a year, plus the 18K in dues = 42K annually!

Of course the best golf courses don't have forced membership, they don't make you buy a house there either. These places usually have long waiting lists (Augusta for example).