Preparing for Another 100 Years!

Preparing for Another 100 Years! Capital Fund & Renovation

Introduction

Investing for The Future: Funding

Our recommendation for funding will allow the Club to accomplish all the goals and plans around the Club. This includes all obligatory and aspirational projects. To achieve these goals, Creative Golf Marketing is recommending a funding plan that would cover a large portion of the proposed list of projects by charging a fee of $32 months, for five (5) years.

$750,000 / 400 Members / 60 Months = $31.25 per Month per Member

Our primary goal is to keep the monthly cost as low as possible to achieve collective buy in, from your members. We are suggesting this fee across the board for all members, Golf and Social. The plan referenced above reflects $750,000, with the assumption that additional funds will be sourced from new members (initiation fees AND monthly improvement fees) and voluntary donations. This would allow the Club to fully fund the obligatory projects and have a very strong start to addressing the aspirational projects as well. Additionally, we have based the model above on 400 members, with the assumption there will be some attrition (based on current membership levels of over 450). It will be critical that the club continue to focus on continued membership growth moving forward. The recommendation above will allow us to keep the monthly fee as low as possible for current and new members.

Transparency

All funds will be appropriated to a capital reserve fund that will only be used for designated projects. Similar to how the club has funded and communicated to club members regarding various projects that have been completed or are currently in progress, through the Debenture Bond Program.

Messaging

CGM will focus on messaging that will tell the story about why these projects must be addressed sooner, rather than later. - Cape Girardeau has experienced phenomenal membership growth in recent years, and we need to capitalize on this positive momentum. - If not now, when? The risk is much greater if we do nothing. - Coming off the club’s Centennial, this is the perfect time to take advantage of t he pride your members share. Our ability to forge a successful path for the next 100 years, will largely depend on the actions we choose now. - Regardless of how members utilize the club, all members will benefit from this plan. The plan includes projects from virtually every corner of the club campus and will elevate the entire private club experience for ALL members. - We believe that investing in these improvements today will provide updated and modern amenities for ALL members to enjoy and will foster continued membership growth that will guide Cape Girardeau Country Club as we begin the journey on our next 100 years!

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Implementation

We are recommending the following schedule of events, based on the number of communications and the window of time until March 10 th .

Introductory Packet sent to Members (both print and electronic). Cover Letter explaining what and why this plan is important. No mention of pricing or funding details. We will include a full list of all projects and an FAQ that will answer some key questions. We will also ask members to mark their calendars (save the date) for a Town Hall meeting on March 10, 2022

February 12 th

Cover letter with plan and project Information with funding details and general project prioritizing timeline will be sent to all Members (electronic and print).

February 25 th

March 1 st

Save the Date Communication – Town Hall Meeting (electronic)

March 9 th

Email Reminder – Tomorrow is Town Hall Meeting

March 10 th

Email Reminder – 1 Hour Prior to Town Hall Meeting

Town Hall Meeting – CGM will be present to present the details of the plan. (straw vote held)

March 10 th

March 11 th

Follow up Communication sent to all members re: Town Hall results

TBD

Groundbreaking Ceremony

* Each communication (including Save the Dates) will include information regarding the Plan.

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Preparing for Another 100 Years! Itemized List of Projects

Administration And Office

Golf Course Continued

POS System

Re-Rate Golf Course

Club Website

Irrigation System Control Box

Parking Lot Maintenance

Upgrades Irrigation Central System

Reseal Parking Lot

Replace Irrigation System - Pipes/Heads

New Flooring in Club Office

Sand Containment Pits/Road Repair

New Office Furniture in Club Office

Cart Path Across Culvert On #7

Main Bridge On 10/18

Small Bridge On 18

Clubhouse

Tree Removal

Can Lights in Foyer

Tee Boxes - Level, Repair, New

Cooler Floor Replacement

Cart Path 10 Hill

Refurbish Fireplace Renovate RR Lounge and Bar

Retention Wall - Pond

Replace Damaged Kitchen Door

Dam

Fresh Flowers on Piano Year-Round

Drainage/Erosion Control

Add Fire Pit Next to Practice Green

Collar Restoration

Reclaim Green Size

Golf Course

Replace Of Fairway Bermuda Grass to Zoysia

Walk Mower

Driving Range

Zero Turn Mower

Short Course Targets

Maintenance Building

Range Picker

Mini Excavator or Backhoe

Utility Carts - Pro Gator

Build Out Board Room, Private Room and Poker on Men’s Locker Room

Golf Course Continued

Add Simulator Above Top of Concession Stand

New Lockers in Men’s Locker Room

New Bathroom Stall in Women’s Locker Room

New Tee Markers

Pumps - 6 Pond to Irrigation Pond

Ballroom

Purchase Spray Hawk

HGT Seed

New Chairs

Remove Old Cart Barns

New Speakers and Sound System

Pump For Water Between Ponds

Build Additional Storage for Chairs and Tables

Improve Cart Paths (1 Green, 17 Green)

Remove Divider at End of Room

New Silverware

Swimming Pool

New Pool Furniture

Dining Venues

New Lounge Chairs at Pool Entrance

New Tables and Chairs in The River Room

New Clock for Swimming Area

Carpet Replacement in River Room

Add 2 Chlorinators to Pool

Carpet Replacement In BR

Add Weir Gates to Skimmers

Add Upper Balcony Above River Room for Dining and Special Events

Replaster Pool (Slinkard)

New Pool Vacuum

Replace 19th Hole Windows

Remodel Both Pool Bathrooms

New Chairs in the 19th Hole

New Entertainment Deck Above Pool Bathrooms

New Barstools in the 19th Hole

New Silverware in the 19th Hole

19th Hole Beer Cooler

Bathrooms & Locker Rooms

Resurface And Stain Veranda Deck Floor

New Bathroom Flooring

New Furniture for the Veranda

New Hallway Flooring

New Gas Fire Pits and Better Fans for the Veranda Additional Seating and Sectionals to the Veranda.

Recover Black Couch in Women’s Bathroom

Replace Paper Towels with Hand Rolled Towels

Preparing for Another 100 Years! Frequently Asked Questions

Why do we need to make these improvements now? Sometimes the answer is answered with another question…“If not now, when?” The momentum at Cape Girardeau Country Club is off the charts positive. Recent membership growth has been a very positive step for our Club, but years of stagnant and declining membership along with charging little to no initiation fees has led to significant deferred maintenance and improvements. Our membership position is at an all-time high which has put us in a position of strength and if we don’t address these issues now, we will severely put our club at risk by doing nothing. Our ability to continue to attract new members will depend on our ability to keep our club relevant and attractive to those in and around our community. Prioritizing continuous improvements/maintenance to our golf course, clubhouse and various amenities is critical to the long-term success of our club. How did the Board determine the projects included in this plan? The Board and various committees have devoted countless hours to evaluating both the near term and long-term needs of the club. The improvements/repairs and replacements selected were prioritized based on several criteria: • Immediate Term (Obligatory/Critical Priority) Projects that if left untouched, would drastically impact club operations with negative financial outcomes and overall member satisfaction levels. • Near Term (Aspirational) Projects will prepare our Club to grow and prosper in order to provide a private club experience that will continue to meet and exceed the expectations of current members, and future members who are demanding more from there private club experience. What is the risk if we do not move forward with this plan at this time? Th ere is enormous risk to the club if we do not fund the “obligatory” capital projects we have identified. We feel that doing nothing now, will only compound the issues and result in ever increasing costs to improve/repair and replace those projects in the future. Just as with deferred maintenance with your home, we would prefer to address these issues now, before they turn into something bigger down the line.

The risk of not doing the “aspirational” projects will have a significant impact on both our ability to retain current members AND attract/recruit new members moving forward. Providing a high-level private club experience for our members and guests is paramount to solidifying the future of our Club. Will the funding from this plan be enough to accomplish both the “ obligatory ” projects and those that are more “aspirational” in nature? The income that is taken in from the membership will fund the obligatory projects first and then move on to the aspirational projects in a prioritized form. We are confident that we can properly fund 100% of the obligatory projects and a large portion of the aspirational projects. The remaining portion of the aspirational projects will be funded through the acquisition of new members moving forward (initiation fee income and the applicable improvement/replacement fees) and voluntary donations. The priority would be both by price and benefits of completion. The benefits of completion would be based on both membership retention and membership recruitment. Some aspirational projects are more dynamic than others and would be prioritized based on price and need. How will I benefit from this plan? All members, regardless of how you utilize the club will enjoy the benefits of this plan. While our golf course is the centerpiece of our club, what makes our club special is the appeal of our dining, social and recreational amenities. We occupy a unique space in our community as a private club retreat that means so many things to so many different people. It isn’t just about golf, or just about dining, it is about our entire club and the many different ways we all enjoy various aspects of the club. Will new members be required/responsible to pay the improvement fees? Absolutely. They will be paying a higher initiation fee than our current members have paid, and they will also be paying the monthly capital fee like all of the current members. Again, their initiation fees and monthly capital fees will be segregated funds and used only for capital improvement projects. How does the club anticipate charging each of the members for this capital improvements? We are going to give the members the option of an upfront payment which will offer a slight discount or monthly payments over a five-year period.

How will we know the funds collected will be used for proposed improvements/repairs, versus going into operations?

This is a commitment that will have oversight by the Trustees of the club. The Trustees will ensure that all initiation fees and capital fees are placed in a segregated account that can only be utilized to pay for capital expenditures. Do we anticipate losing members if this is approved? We certainly hope not but do anticipate that we could lose between 5-10% of our membership with this type of financial decision. Our goal is to educate our membership so well that all members understand “why” this is being done so that they will see a very positive long -term vision for the club. One that they desire to be a part of moving forward. We are also committed to making the financial obligation as minimal as possible to accomplish our goals. Can I give more than what is being proposed as a donation to the club, and if yes, can I designate a specific improvement? Yes, and we encourage such enormous generosity. If we have members who desire to make capital contributions for a specific capital project, as identified by the club leadership, we will be happy to use those funds, specifically, on that project. How will this impact dues moving forward? We feel these efforts and financial decisions should help us to keep our dues obligations down. We say that because we believe in the philosophy of “more members paying less” and that the more we improve the facilities of Cape Girardeau Country Club the more new members will want to join and the more current members will want to remain with the Club.