Why buy the Riverwood Beach Club?

A Comparison of Concepts
 Centex/ Pulte is selling it:
 Centex Pulte was smart enough to recognize it was an important
amenity that would attract buyers to Riverwood.
 Centex Pulte is almost “built out” in Riverwood and they are not in
the beach club business any more than they are in the golf club
 We
need to maintain, not lose Riverwood
amenities to keep our status among the gated
communities in this area.
 The Beach Club is an important amenity to a
high % of Florida home buyers (see 1a above).
 Who should care about home buyers? Every
home owner in Riverwood (see 1a above).
Because Centex/Pulte is looking for a buyer NOW!!
The price to which Centex has agreed is very good.
We cannot afford to lose this important amenity
Researching property value
Researching ownership, liens, zoning and other
restrictions on ownership and use of the property
Meetings with officials of the County Clerk’s
office, the planning office, the zoning office
RCDD attorney conversations with County
Committee teleconferences with our RCDD
Financial and operational data from Centex/Pulte
Telephone conversations with the Centex/Pulte
Title search by the RCDD attorney
Centex/Pulte has a willingness to work with us.
Centex/Pulte is the only owner with clear title.
There is a lease between Centex/Pulte and the
Riverwood Beach Club. Centex/Pulte can cancel that
lease upon sale of the Beach Club.
There are no liens on the Beach Club property.
There are no restrictions on the property which
would interfere with the RCDD ownership and
operation of the facility today and for the future.
The Long Range Planning Committee strongly
believes such purchase at this time is in the best
interests of the homeowners in Riverwood.
Sign an agreement with Centex/Pulte to commence a
period of “due diligence”
RCCD Board Appoint a “Due Diligence” Team
Presentation of the final findings to the RCDD Board
Final vote by the RCDD Supervisors
 Ask
the RCDD to fund the purchase money
up front via a bank loan.
 Business plan says to repay RCDD purchase
money and cover the expense of running
and maintaining the Beach Club from the
members’ dues and new membership fees.
Long Range Planning Committee believes
this is a solid plan.
 Current
members (189 @ 300)
 + 20 new members immediately =
 Note
Pmt 3.5%, 240 months, $350,000 principal
($2,029.86)Monthly payment
$24,358.42 Annual payment
 The
most important revenue figures are the
Member's annual dues
Employee Expenses
Ice Machine Rental
Waste Removal
Bank Expenses
Note Payment
Total Annual Expenses
Scenario 1
209 Members
20 new
Dues = $300
Scenario 2
350 Members
No Initiation
Dues = $300
Scenario 3 Scenario 4
400 Members
No Initiation
Dues = $300
300 Members
111 new
members @ $625
Dues = $300
Members' Annual Dues
Initiation Fees
Total Revenues
Net Income (Loss)
 Maintain
current Centex/Pulte Concept
 Current members are “grandfathered”
 Retain current membership
 Start a campaign to attract new members
The Long Range Planning Committee Chairman has a
list of twenty or more potential new members waiting
to join when the future ownership of the Club is clear
Any legal requirement to allow non-Riverwood owner
membership would be handled as access to tennis,
fitness and swimming pool/spa amenities are handled
 There
are just under 200 member families
 The facility is NEVER crowded
As membership grows and IF crowding looks like it
could be a problem we could “cap” the number of
memberships allowed at a workable number (just as
the Riverwood Golf Club has done)
 Why
not just buy the property and open it
to all Riverwood residents, the same as the
fitness, pool, and tennis facilities?
Membership application/initiation fees and dues
create a revenue stream which can be used to
maintain the facility and pay back the CDD without
further burdening all Riverwood residents
Current membership has paid for that access
A number of residents are opposed to paying for an
amenity they don’t use
 The
basic objective is to purchase the beach
club with the entire costs to be covered by
the beach club membership. Regardless of
which scenario is selected, if the financial
situation does not result in the annual
revenues from dues covering the annual
expenses for the club, a special assessment
of the current membership will be assessed
to cover the shortfall.
Sign an agreement with
Centex/Pulte to commence a
period of “due diligence”
Appoint a “Due Diligence” Team

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