Capital Improvement Book

HPCC Celebrates
100 Years

with Capital Improvements

1923 - 2023

Building a Better Tomorrow!

Table of Contents

Introduction, Timing & Priorities…………………………………....................…......….Pg. 3
Industry Article……………………………………………….....................………………......…….Pg. 4-5
How Top-Tier Clubs Get Ahead of Competitors and Stay There
(Published in the National Club Association’s Club Director Magazine &
Club Trends Magazine)
Industry Averages vs. HPCC……………….……………....................……………….........Pg. 6
(Source: Club Trends Magazine)
Club Trends…………………………………………………………………………...........................…Pg. 7-8
(Source: Club Trends Magazine)
History of Capital Improvements........................................................................Pg. 9
Recent Before and After Photos.........................................................................Pg. 10
HPCC Capital Plan Outline…………………………………….................……………....…...Pg. 11
Emerywood Fitness Center Expansion………………………….................…...…….Pg. 12-13
Emerywood Terrace Addition…………………………………….................….…....……..Pg. 14-15
Renderings of Emerywood Golf & Tennis Shop……………………....….....…….Pg. 16-17
Emerywood Golf Short Game Practice Area………..................………..…...…..Pg. 18-19
Expand WC’s Dining Room & Add New Bar………................…………………….Pg. 20-21
Willow Creek Fitness Addition…………………………………..……................…....……Pg. 22
Beyond the Scope of this Plan…………………………….................………….……...….Pg. 23

Introduction

High Point Country Club is embarking on a significant collection of capital improvements,
designed to enhance member enjoyment of the Club, remain relevant with current
country club trends and provide the necessary amenities to attract new members.

The Club’s Board of Directors has approved approximately $3M in capital improvements
to be completed over the next 18 months. The Board is taking advantage of the Club’s
excellent financial health and near historic low interest rates to fund these projects with a
combination of cash on hand and additional financing.

The Club is bundling its existing debt of approximately $2.7M with a construction loan of
approximately $2.7M. The Club will continue to pay interest and principal on existing debt
and make interest-only payments on an 18-month construction loan. The entire balance
will be combined at the end of the 18-month period into a single loan of approximately
$5.4M. Terms of the new loan are excellent and will be paid on a 10-year term, a 20-year
amortization with a 3.5% fixed interest rate. Member’s Monthly Debt Service Fees will
increase from $45 per month to $65 per month effective March 1, 2022 to meet the new
payment schedules.

Details about each improvement project may be found in this publication. You will also
find some interesting facts concerning how HPCC compares to industry averages and
what industry experts identify as important industry trends.

Timing of specific projects will not be projected in this publication. The bidding out of
each project must take place and a contractor chosen before timelines can be developed.
Of course, we anticipate that some supply chain challenges will also dictate delivery
of completed projects. We will keep the membership informed through email and
newsletter articles as these details become clear.

Preliminary cost estimates lead us to believe that these projects can be accomplished
within this budget. Additional improvements will be added if funds remain after
completing the specified projects. If overruns cause a shortage, we will simply delay the
completion of some portion of the work until we have the necessary cash on hand.

We are confident that the Club is in an excellent financial position to accomplish these
projects. Our Club must continue to invest in itself to remain relevant to existing members
and attractive to a new generation of members. We are committed to both protecting
and enhancing our facilities as we approach our 100th Birthday next year.

These projects touch on nearly every aspect of our Club. We hope that you are as excited
as we are to see these improvements! Thank you for your continued support of High Point
Country Club!

Lyle Frye, Chairman of the Board Cliff Mann, President & CEO

How Top-Tier Clubs Get Ahead of
Competitors and Stay There

Posted by Joe Abely & Dave Duval on 1/14/22 2:14 PM
Originally published in the Winter 2022 issue of National Club Association's Club Director magazine

If you are a leader of a top-tier private club (or a club that aspires to be
top tier), you understand that relevance is not just a buzz word—it is
the key to long-term success. In addition to relevance, the industry’s
healthiest clubs share a common characteristic that we call “big picture
thinking.” Their boards are far too busy planning for the future and
executing on those plans to be distracted by operational issues. Their
members recognize themselves as owners, and as such they willingly
and continuously invest in the club’s physical plant throughout their
tenure as members.

That notion of willingness to invest is important. The financial reality of keeping your
club relevant and competitive in a dynamic market is this: During the next decade, the
club’s members will likely need to invest a minimum of $10 million in modernization and
transformative capital improvements. Here’s why:

• With depreciation running more than $1 million per year at many top-tier clubs,
you’ll likely need to invest $10 million over the course of the next decade just
to prevent erosion of your capital base (i.e., deferred maintenance). Protecting
and maintaining the club’s physical assets is a primary responsibility of a club’s
volunteer board members.

• It’s a safe bet that your competition is actively working to up their game. Like you,
they understand that breadth and quality of club amenities, services and facilities
matter now more than ever. The longer you delay getting started, the further ahead
other clubs will be.

• Capital investment must be recognized as a continuous, never-ending process. In 10
years, the “new” clubhouse, pool, fitness center, spa or any aspirational project you
are building right now will be showing its age.

• Annual member attrition of 4–7% is normal, which means over the next decade
you will need to replace more than 50% of your membership. Given that the
average age of new members joining a club is 42 (approximately 60 in residential
community clubs in retirement areas), the profiles of those new members will be
very different than the profiles of those departing. Consumer tastes and interests
are constantly evolving.

The Top-Tier Mindset
Among successful top-tier clubs, amenity trends include upscale spas, fitness centers and
locker rooms, more child-friendly spaces, more options for casual dining and socialization,
more racquet sport options, yoga and Pilates studios, golf training centers, outdoor lawn
games and golf simulators set up for leagues and socialization (not just for training), and
many other evolving innovative amenities.

To fund these improvements, top-tier clubs rely on members thinking and acting as
owners and willingly contributing capital ideally through recurring capital dues to
fund obligatory needs (repair and replacing what is owned) and initiation fees and the
judicious use of debt to fund aspirational investments (evolutionary investments to
remain relevant). Capital funding must be comprehensively, precisely planned, separately
from operational funds. It requires consistent, long-term thinking and careful proactive
planning. It’s also critical to think in terms of funding a cohesive long-term plan versus
a project-by-project approach. And remember that successful implementation of large-
scale capital improvements will almost always increase operating costs. Long-term
operating budgets must be planned separately and simultaneously.
The club’s long-term strategic vision should be distinct and well-documented with an
unwavering commitment to funding the vision. As new members join the board, a key
piece of their orientation to club finance should be the understanding that funds for
obligatory and aspirational capital investments or debt service will not and should not
come from operating surpluses. Far too many clubs have seen long-term plans derailed
by a failure to grasp that basic tenet of club finance.
Top tier clubs think big picture and long term. They keep their eyes on the horizon and
think strategically about what it will take to make themselves the club of choice for the
next generation of members.

Impacts

Source: Spring 2021 Club Trends Magazine

Industry Averages vs. HPCC

Average Club: Capital Dues*

64% of Clubs Charge a Monthly Capital Dues Surcharge.
Average Monthly Capital Dues Surcharge: $113

High Point CC: Capital Dues (including Debt Svc.)

Capital Dues: $120 per Quarter ($40 per month).
New Debt Service Fee: $65 per month (Additional Funding for Capital)
Total Combined Capital Charges per month: $105
___________________________________________________________________

Average Club & Capital Improvements*

56% of Clubs have Completed a Capital Project in the Last 5 Years.
88% of Clubs will Complete a Capital Project from 2020-2025.
Median Cost of Project: $4,500,000

High Point CC & Capital Improvements

Completed Ross Grill & Patio 5 Years Ago (2017) Cost: $500,000
HPCC’s Collection of Capital Projects Estimated Cost: $3,000,000
___________________________________________________________________

Initiation Fees

Average Club* = $15,000 HPCC Initiation Fee: $10,000

Operational Dues

Average Club Median Dues*: $570 per month

HPCC Current Operational Dues $329 per month
$285 per month
HPCC Full $514 per month Ross Full
HPCC Sr.: $400 per month Ross Sr.

All Categories of Membership in HPCC are well below the Median Dues of the Average Club

Source: National Club Association & McMahon Group,

Club Trends Magazine*

Club Trends

According to the McMahon Group, Country Club membership dropped 20% from 1990
to 2014. From the mid-to-late 1990s there were more than 5,000 full-service member
owned golf & country clubs in the US. By 2017 that number had declined to about 3,900
with numbers today continuing to decline slightly but leveling off.

For decades, golf had been the number one reason people used for joining a golf and
country club. Today, golf is usually the 5th or 6th reason. A key reason golf has moved
down the priority list is that the leading decision maker in choosing what Club to join
has changed from the husband to the wife. Wives often assume that any golf course is
“good enough” to meet her husband’s needs. She is generally more interested in finding
activities for their children (pool, tennis, pickleball, etc.) and having amenities where she
can socialize or play a sport with other ladies in her age group. Generally speaking, Clubs
that thrive have expanded their amenities beyond golf to include a variety of offerings to
attract a broader range of members.

The Most Popular Amenity Trends Include:
• Fitness & Wellness Amenities
o More Health Conscious Population.
o Ladies are looking for group fitness classes for socialization
and to keep them motivated. Massage Therapy, Spa
Services and Wellness Programs are growing.
o Sport specific training is growing.
• Expanded Tennis & Pickleball Amenities
o Tennis and Pickleball are kid friendly sports while also
providing excellent adult programing and socialization.
• Casual Dining Offerings
o There has been a significant move away from formal
dining and toward more outdoor and casual dining.
• Additional Social Activities
o Affinity Clubs (Clubs within Clubs): Dining, Wine, Cooking, Book, Cards, Sports:
Pickleball, Tennis, Golf, Swim, Bocce Ball, Ping Pong, Video Games, etc.
• Kid’s Activities
o Continue to build kid friendly spaces and provide fun programing.

HPCC continues to add amenities and activities that follow industry trends. Recent
examples:

• The Ross Grill and Patio (casual and outdoor dining trends).
• The Ross Game Room (ping pong, foosball & video games are kid friendly trends).
• Updated the pool and pool deck (sports trends, kid friendly).
• Updated 1923 Bistro (casual dining, watching sports, wine affinity).
• Added the Champions Room at Willow Creek (casual dining and meeting/card

room).
• Added two Tennis Courts and six Pickleball Courts (sports trends, kid friendly).

The Collection of Improvements described in this brochure will enhance existing spaces
and expand/improve our collection of amenities…all while staying on track with current
industry trends…We are excited to share these details with you!

Club Trends

SIMULATORS: Among clubs with golf courses, 37% report having simulators. The most
popular year for adding simulators was 2020.
STREAMING FITNESS: 38% of club with fitness facilities reported investing in some
type of “connected fitness” equipment (i.e., equipment with digital connectivity and
streaming fitness classes.) The most common purchase was Peleton.
FAMILY FUN IN THE SUN: 72% of clubs with outdoor swimming facilities also offer a child
pool/spray play area. 25% of the same clubs describe their facilities as having “resort-style
features.”

Source: Spring 2021 Club Trends Magazine

History of Capital Improvements

Current Baseline Improvements Completed

• New Emerywood Clubhouse 1994 (28 Years Ago)

• New Willow Creek Clubhouse 2000 (22 Years Ago)

• WC Golf Short Game Practice Area 2007 (15 Years Ago)

• WC Champion Greens Conversion 2012 (10 Years Ago)

Recent Additions (Within Industry Trends) Completed
• EW Ross Grill & Patio 2017 (5 Years Ago)
• Replastered Pool & replaced Pool Deck 2018
• EW 6 Pickleball Courts 2021
• EW 2 Tennis Courts 2021
• 1923 Bistro 2021

Upcoming Additions (Within Industry Trends) Estimated
• EW Fitness Center Expansion 2023
• EW Expanded Terrace 2023
• WC New Fitness Center 2022
• WC Renovated Dining Room / Bar 2023
• WC Update Clubhouse Main Level 2023
• EW New Golf & Tennis Building 2022
• EW New Covered Pavilion 2022
• EW New Golf Short Game Practice Area 2023
• WC Replace Golf Irrigation Pumphouse 2022

These improvements will update existing facilities, completely replace old facilities and add new
amenities. These capital projects will touch both campuses and every department (except the
Pool which was updated in 2017 & 2018).

Recent Before and After Pictures

Former Emerywood Abandoned Tennis Courts Six New Pickleball Courts & Two New Tennis Courts

Former Emerywood Grill Room New 1923 Bistro

Former Emerywood Pool Snack Bar Ross Grill & Patio

Capital Plan Outline

• Fitness Center Expansion at Emerywood.
o Triples Workout Size to Over 3,000 sq. ft..
o New State of the Art Exercise Equipment.
o Dedicated Multiuse Classroom (Exercise Classes, Spin Classes, Yoga, etc.)
o Dedicated Cardio Space with floor to ceiling windows.
o Massage & Wellness Room.
o Electronic Entry System to improve safety and security.

• New Fitness Space Added at Willow Creek.
o Construct a new 1,000 sq. ft. Fitness Space adjacent to the Indoor Tennis
Facility.
o Electronic Entry System to improve safety and security.

• Expanded Outdoor Terrace Dining.
o Above the new Fitness Center and joining Ballroom 3 will be over 1,000 sq.
ft. of new outdoor terrace space.
o The added terrace space will be accessible from new exterior doors off
Ballroom 3 and provide additional circulation and outdoor dining space.

• New Emerywood Golf & Tennis Shop.
o Check-in counter for golf, tennis and pickleball with offices for Pros.
o Retail space for golf, tennis and pickleball.
o Lounge area with TV for meeting playing partners before or after play.
o Indoor Restrooms with additional outdoor access for afterhours.
o Small Bar to provide a place to enjoy a drink and/or snack with your 4-some
after golf, tennis or pickleball.
o Cart Storage will be located below the new building. A new cart path will
allow access directly to the golf course and to the short game practice area.
o Golf holes will be renumbered to allow rounds to begin and end at the
new golf shop. Current #8 hole will become #1 Tee and current #7 hole will
become #9.

• New Golf Short Game Practice Area at Emerywood.
o Space will allow for bunker shots, pitch shots and a variety of chipping and
putting practice. The putting/chipping green will be Champion Bermuda.

• New Covered Pavilion.
o Located adjacent to Pickleball and Tennis Courts.
o Provides gathering place to watch Tennis and Pickleball.
o Provides gathering place to score tournaments for golf, tennis and
pickleball.

• Willow Creek’s Golf Irrigation Pumphouse.
o Replacement of key infrastructure item that has been a concern for years.

• Willow Creek Clubhouse.
o Refresh Main Level and Dining Room with new paint, carpet and
furnishings.
o Relocate New Bar against center windows retaining views of the golf
course.
o Enclose Covered Terrace to the right of dining room and against the
kitchen.
o Enclose Entryway to create an airlock entrance with coat storage.



Fitness Center Expansion at Emerywood. (Triples Workout Size to Over 3,000 sq.
ft.)

o New State of the Art Exercise Equipment.
o Dedicated Multiuse Classroom (Exercise Classes, Spin Classes, Yoga, etc.)
o Dedicated Cardio Space with floor to ceiling windows.
o Massage & Wellness Room.
o Electronic Entry System to improve safety and security.



Expanded Outdoor Terrace Dining.
o Above the new Fitness Center and joining Ballroom 3 will be over
1,000 sq. ft. of new outdoor terrace space.
o The added terrace space will be accessible from new exterior
doors off Ballroom 3 and provide additional circulation and out-
door dining space.

Current Emerywood Clubhouse
Former Emerywood Golf & Tennis Shop

New Emerywood Golf & Tennis Shop.
o Check-in counter for golf, tennis and pickleball with offices for Pros.
o Retail space for golf, tennis and pickleball.
o Lounge area with TV for meeting playing partners before or after play.
o Indoor Restrooms with additional outdoor access for afterhours.
o Small Bar to provide a place to enjoy a drink and/or snack with your 4-some after golf,
tennis or pickleball.
o Cart Storage will be located below the new building. A new cart path will allow access
directly to the golf course and to the short game practice area.
o Golf holes will be renumbered to allow rounds to begin and end at the new golf shop.
Current #8 hole will become #1 Tee and current #7 hole will become #9.

New Covered Pavilion.
o Located adjacent to Pickleball and Tennis Courts.
o Provides gathering place to watch Tennis and Pickleball.
o Provides gathering place to score tournaments for golf, tennis and pickleball.

New Golf Short Game Practice Area at Emerywood
o The new area will be designed and constructed
onsite, so this diagram is conceptual only.
o Space will allow for bunker shots, pitch shots
and a variety of chipping and putting practice.
The putting/chipping green will be Champion
Bermuda.





Expanded Willow Creek Dining
Room & Relocated Bar.

o The Dining Room will be
expanded to enclose the covered
terrace to the right of the dining
room and adjacent to the
kitchen.

o The Bar will be relocated to
the center back wall against
the glass and will not have any
upper cabinetry. Views to the
golf course will be preserved.

o The covered entry to the
building will be enclosed to
provide an airlock entry and a
coat closet.

New Fitness Space Added at Willow Creek.
o Construct a new 1,000+ sq. ft. Fitness Space adjacent to the Indoor Tennis Facility.
o This facility will be built before the EW Fitness facility goes under construction and
utilize the Club’s existing fitness equipment.
o Electronic Entry System to improve safety and security.

Beyond the Scope of this Plan

Regular Capital Improvements: (Update, Repair or Replace Existing Capital
Items)

The Club’s Quarterly Capital Supplement Fee is in place to provide money
annually to repair/replace existing capital items. This is a never-ending
process with the Club continuing to address capital needs each year.

Examples:

• HVAC Units, Roofs, Parking Lots, Carpet, Furnishings, Paint, Interior
Décor, etc.

Aspirational Capital Improvements (Adding New Amenities or Significant
Changes to the Club’s Physical Plant)

The Club will continue to utilize extra cash to accelerate regular capital
improvements and to fund aspirational improvements when possible.
Aspirational improvements follow member interest and industry trends.
Twenty-five years ago, Clubs had no idea that fitness and spa services would
be a significant trend, yet here we are…It will be interesting to see where our
next 100 Years will take us, as we move into our second century as a Club.

Examples from the Long-Range Capital Wish List in no particular order:

• Golf Simulators, Indoor Golf Practice Building.

• Kid’s Playground, Kid’s Activity Center, Turf Field, Basketball Court.

• EW Golf Practice Range, Six Hole Practice Course.

• Bocce Ball Courts, Croquet Court.

• WC Outdoor Patio with Fire Pit on lower level.

• Expanded Pool Deck, Adult Pool, Kids Splash Pad.

• Additional Fitness Class Space, Added Wellness Area, Steam/Saunas.

• Covered Outdoor Dining Space at Ross Grill.

• Expanded Outdoor Dining off Guilford Room.

• Skeet Shooting Range near WC.

• Expanded WC Kitchen, Expanded Ross Grill Kitchen.

• Additional Indoor Tennis/Pickleball Space.

• Replacement of Golf Course Infrastructure (Irrigation, Greens, Bunkers).

Celebrating 100 Years

•
1923 - 2023

Emerywood Clubhouse Willow Creek Clubhouse

(336) 889-0818 (336) 869-2126

Golf Shops Ross Grill & Patio

Emerywood (336) 882-4312 (336) 889-3319
Willow Creek (336) 869-2416

Tennis Pro Shop Fitness Center

Willow Creek (336) 869-0333 Emerywood (336) 889-7384 / Shannon (336) 870-3000

Membership Director

Jay Carmichael (336) 889-0818
[email protected]

@highpointcountryclub High Point Country
Club Inc. Emerywood
www.hpcountryclub.com
High Point Country
Club Inc. Willow Creek

2/15/2022