NON-RESIDENT MEMBER IMPACT
Bargain priced memberships are damaging home values.
Bargain priced memberships are a disincentive to Delaire success.
ALL memberships should be priced the same.
May 19, 2018 - Voting, committee & Board privileges for Non-resident Equity members officially challenged. Read the letter. Fix it or "see you in court".
May 10, 2018 - Note the falling value of a Delaire Non-Resident Equity Membership. This huge disparity is a sad, failed, desperate effort to shore up the club, which actually has the opposite effect.
Right out of the gate, let me say that I am not opposed to Non-Resident (NR) members. What I am opposed to is the subsidy they receive from the Mandatory Members. I know several of the NRs and they are fine people. I have friends who regularly golf and socialize with NR members and they say that they are people of the highest quality and make Delaire a better place. And who could possibly blame people for jumping on a great bargain when they see one? A Mandatory Resident Member pays almost twice the annual amount a NRNE member pays in addition to a $79,000 non-refundable initiation and $1,000 bond. I and many other Mandatory Members believe that everyone should pay the same price. Click to see what a Mandatory member at the Fountains has to say.
Non-Residents are supplied with a golf cart for free when they play golf. A very few NRs have their own carts, which are stored for free by the Club. There are some couples who play golf 4-6 times a week for the man and 2-3 times a week for the woman. Let’s assume 300 rounds annually. Most clubs charge between $23-30 for 18 holes. If you assume $25, that’s $7500 worth of cart use the NR is receiving. Obviously, not everyone plays that much, but if you said twice a week per NR couple, that works out to 200 rounds annually.
Mandatory residents are required to own a golf cart or be charged at the prevailing rate each time a club cart is used. The cost of a cart is approximately $10,000. If you figure in maintenance & depreciation, it’s likely to cost a Mandatory Member $2500 annually. Mandatory Members are forbidden from storing their carts at the club. I know several Mandatory Members who would gladly pay a fee to store their cart at the club and have more space in their garage.
Why does a NR Equity member get the same one vote that I get when they only pay a $3000 Fully Refundable initiation fee? Mandatory Members paid a NON-REFUNDABLE $79,000 for that same vote. Why do they have such outsized influence?
Many of the NRs have made the club their home away from home and are here for the Bagel Room in the AM, lunch/brunch and a couple of times a week for the evening repast. It’s great that they like it here so much. Unfortunately, Chef Glen has stated that we lose 60 cents for every dollar’s worth of food we sell. If a member couple is here every week for 7 lunches @ $25 and 4 evening meals @ $40 that totals $335. Multiply that $335 x .60 and that equals $201.00. Multiply that by 52 and that’s $10,452.00. That same dining benefit is available to any member, but quite obviously dining is one heavily subsidized amenity at Delaire. The Bagel Room costs each member about $900 per year if you use it or not. So if do a little math, we see that an active NR couple could easily use up $7500 + $10452 + $900 = $18,852.
The annual total for the NRNE costs is $18,418. At best, it’s costing the club money to have that person here. The Board would have you believe that all the money we collect from NRs just goes straight to the bottom line. They even concocted a study that shows that every Resident member's dues are reduced by $3400 because of NR members. They won't show the study to anyone. That's odd isn't it?
To accommodate all the NRs, we need more servers, kitchen staff, bag staff, cart storage space, leased carts, etc. It is simply a fallacy that this is all extra cash which flows into our coffers. There is a certain cost for each NR member that we have. The more actively they use the club and its amenities, the more it costs us. This sounds like one of those cases where someone is losing money on every widget they sell, but they are now lowering the price and will make it up on volume.
Maybe it’s time the whole dues structure is revisited.
Maybe it’s time to lower the base dues and then let each person pay for the services they use.
Maybe it’s time to charge for bagels and coffee.
Maybe it’s time we priced meals in order to at least break even, as opposed to losing 60 cents additional for every dollar’s worth we serve.
Maybe we should start charging $85 for the 4 course steak dinner at La Brasserie instead of the $50 we charge now.
Maybe it’s time to charge a cart fee every time a NR member plays a round of golf.
Maybe it’s time we weaned people off of thinking everything is “free”.
For some NRs who make extensive use of the amenities and dining at Delaire, it is in effect “free”…… for them. The Mandatory Members are picking up that tab.
At the very least, this needs to become a level playing field and have every member pay the SAME prevailing initiation, bond, annual dues and assessments. This multi-tiered structure that now exists in patently lopsided against residents. We are the backbone of the club. If anything, shouldn’t it be lopsided in our favor? I’m willing to settle for equality.
What does it say about a club that can't sell a full price
membership to anyone other than those that are mandated to buy one?