Here is a report given at the November CCC Board meeting about the ongoing Golf Club discussions. If you have any questions please feel free to reach out to one of your Board members and attend the upcoming Fireside chat this Friday, November 22, at 6:30 pm, at the Clubhouse.
Report on Discussions with Charbonneau Golf Club, Inc.
November CCC Regular Board Meeting November 5, 2019
Submitted by: Eugene Tish, Vice President, Board Member, Member CCC Golf Club Negotiations Team
For the past nearly 18 months, representatives of the Golf Club and Charbonneau Country Club have been meeting to discuss a possible format for the Community to gain ownership of the golf course.
Charbonneau was conceived and has successfully matured as a golf-centric community. As our 100+ acre course winds through our community, it provides beauty, gives pleasure, and serves as the foundation for the active social life we all enjoy here.
For nearly 30 years, the golf course has been owned, operated, maintained and supported by private shareholder residents. We all owe a debt of gratitude to these past and current residents. Both boards have agreed that we have a responsibility to our current and future residents to finally address this long-standing inequity for the long-term protection and perpetuation of our community. The question is how to accomplish that, and at what cost.
Much of the last 18 months has been spent researching potential roadblocks as well as Red Herring issues that have derailed discussions in the past. With extensive assistance from legal counsel on both sides evaluating the pro and cons of different formats, a potential road map was developed. That nearly 18 months was spent determining that it could be done, and gathering information that would be needed to get to the next level of discussions.
One big step in the process was for the Golf Club to conduct an in depth and professional valuation of its shares by a reputable outside party. While I do not know the outcome of that study, it is my understanding that a draft report was submitted to the Golf Club board yesterday. And they are scheduled to meet again with their attorney within the week to begin formulating a proposal. Based on that information, we now expect to receive a proposal from the Golf Club board before Thanksgiving.
At that point, the true negotiation and vetting process can begin. While I support the concept of the community gaining ownership of the golf course that forms the center of our community, I do not personally intend to support any proposal that will impact the CCC dues structure, at least within the first few years. The golf course needs to come with sufficient reserves to carry it into the future, and with a realistic opportunity to regain profitability. While that deal is possible, in the long run it may not be made available. We should learn that soon.
This board has not yet determined what vetting process will be followed, but I would expect that to be determined once a offer is received and evaluated.
Both sides to the discussion understand that no Charbonneau Country Club funds will be paid to the Golf Club to acquire the golf course. Significant reserve funds now held by the Golf Club will have to flow to the Country Club along with the golf course in order to make any potential transaction feasible.
We have made significant gains in our relationship with the Golf Club over the last 18 months. We expect this to have a long-term beneficial impact for the community, even if a combining of the entities is not achieved at this time.
Source: K. Hosford Email Update. 11.18.19