 |
|
|
| Tennis Bubble will be ready for play in October 2005
Background
Four years ago, the Club initiated a project to put a bubble over 3 tennis courts during the winter months. Since that time, much has been accomplished:
- A Bubble Fund was established
- The Club researched products and vendors
- We retained legal counsel
- We worked with the Great Falls Citizen's Association and the Thunderhill Homeowner's Association on our plans
In November, 2003, our membership voted to move forward with the tennis bubble project.
Planning progressed throughout 2004. Engineering and environmental studies were completed. A Special Permit process was completed. We drafted operating policies and procedures and refined our cost estimates. We received detailed bids for construction costs, operating costs, and finalized revenue projections.
While planning progressed during 2004, construction was not started. The bubble was delayed due to a number of factors. The main factors were:
- Our permit process required considerably more time than anticipated. Due to the permit delays, the tennis committe was concerned that if construction started, we might not be ready for the 2004 season.
- Construction costs had increased from the original budget and were above what was originally approved by the Membership in November of 2003.
We decided to delay the project until we had a plan and were confident that we could move forward.
Proposal to Move Forward in 2005 was approved at the Annual Meeting in November 2004
Based on the work done throughout 2004, we have refined and revised all the revenue and cost projections associated with the Bubble project. The bubble project will now require an additional $180,000 in capital costs over what was originally approved by the Membership.
The Membership approved a proposal to finance the remaining capital over a 7 year period and repay the loan from revenue derived from Bubble operations. Because the loan will be repaid from the Bubble revenue, there is no impact to the Club's operating revenue. The details of the assumptions and projections related to the proposed recommendation are presented below. |
 |
| Startup Costs and Sources |
Startup Costs
| Bubble Equipment and Installation |
$243,000 |
| Concrete, electric, fence, irrigation |
$163,000 |
| Electrical and Gas Prep and Hookup |
$12,000 |
| Engineering and Project Mgmt. |
$20,000 |
| Permits and Legal |
$10,000 |
| 10% Contingency |
$45,000 |
| Total Initial Investment |
$493,000 |
Startup Source of Funds
| Original Bubble Fund |
$313,000 |
| Loan Requirement |
$180,000 |
| Member Assessment |
$0 |
| Total Cash Requirement |
$493,000 |
Note: Cost estimates are based on actual bids that the Club has in-hand.
|
| Proposed Bubble Timeline for 2005 |
| |
Nov |
Dec |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
|
Apr |
| Budget Approval |
xxx |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Building Permits |
xxx |
xxx |
xxx |
|
|
|
|
|
|
|
|
|
|
|
| Lottery/Court time contracts |
|
|
xxx |
xxx |
|
|
|
|
|
|
|
|
|
|
| Concrete Site Work |
|
|
|
|
xxx |
|
|
|
|
|
|
|
|
|
| Outdoor Tennis (Apr - Oct) |
|
|
|
|
|
xxx |
xxx |
xxx |
xxx |
xxx |
xxx |
xx |
|
|
| Bubble Fabrication |
|
|
|
|
|
|
|
|
xxx |
xxx |
xxx |
|
|
|
| Bubble Delivery and Install |
|
|
|
|
|
|
|
|
|
|
|
xxx |
|
|
| Bubble Open (10/17/05) |
|
|
|
|
|
|
|
|
|
|
|
xxx |
|
|
| Bubble Take Down (4/15/06) |
|
|
|
|
|
|
|
|
|
|
|
|
|
xxx |
|
|
| Operating Revenue and Expense |
Annual Operating Expense Projections
|
Setup/Takedown and Storage |
$16,700 |
| Insurance |
$10,000 |
| Utilities (propane/electric) |
$20,000 |
| Additional Management |
$12,800 |
| Front Desk |
$9,100 |
| Maintenance |
$6,000 |
| Replacement Fund |
$10,000 |
| Loan Repayment |
$33,600 |
| Misc. (social/supplies) |
$6,000 |
|
Total: |
$124,260 |
Loan repayment is based on 7 year term at 8% interest. Current rates are significantly lower than this but the loan would not be required until the summer of 2005.
|
|
 | Motion approved by the Membership at the Annual meeting
- Proceed with the tennis bubble project so that the tennis bubble is ready for play in October, 2005.
- Secure financing for the tennis bubble in the amount of $180,000 to be repaid over a 7 year period with revenue from tennis bubble operations
|
|
|
|
