MCA/MCC STRATEGIC PARTNERSHIP FORMED
What follows is an e-mail/letter from Meadows Country Club president Gene Mercer to the CC membership:
We are pleased to announce that under the terms of a letter of intent signed by The Meadows Country Club (the “Club”) and The Meadows Community Association (“MCA”), an agreement has been reached whereby the MCA will purchase all of the real property owned by the Club together with all of the building improvements located on the property.
In return, the Club will lease the property back from the MCA and will continue to operate the Club including the three golf courses, the tennis center, the fitness center, the pool and restaurants. The Club will lease the property from the MCA for an initial term of three years at a fee of $10 per annum.
The intent of this partnership is to allow the Club the opportunity to continue to operate while it acquires financial stability and develops programs to attract new members and to protect and preserve the community’s green space under the control of the MCA. Please be assured, the Club will continue to function as a private club under its existing by-laws and will continue to be managed by Billy Casper Golf.
The MCA will pay $6 million to purchase the Club’s property, which will be payable over a three-year period. The Club will use $2.9 million of the $6 million to pay off its debt to the MCA. The payment plan has been carefully structured to provide the Club the funds needed to repay the Club loans and to operate and make required operating improvements over the next three years. At the same time, it allows the MCA to complete the purchase without taking a mortgage.
It has been a long and sometimes difficult road since the Club began its application for rezoning. Since that time, construction trends and costs have changed and it is apparent that any future development on the Club’s land would be at a greatly reduced sale price and on a much smaller scale. We want to assure you that we have looked at this situation from many angles and this strategic partnership is the best solution to ensure that the goals of both the Club and the Community are met.
Over the next month, the MCA and the Club intend to finalize a formal agreement for the sale of the property and a lease agreement. In accordance with the Club’s By-laws, the active equity members will be required to vote their approval of the sale of the property. Notification of this meeting will be forwarded to all active equity members within the next few days.
We know that this is a lot to digest and that you probably have many questions. We plan to send out additional messages with details on various parts of our plan over the coming days. We especially hope we will have the continued support of our membership as we move forward to finalize the necessary documentation to complete this partnership.
On behalf of the Board of Governors,