Response to Dr Nabors, Julie and T-Bird Letters
Dr. Nabors, 05/03/2025
Thank you for taking time to raise important issues for Julie and Committee.
I too appreciate and respect, and am grateful for all the work of the Thunderbird Committee. We need choices. Nothing is simple. Thunderbird (T-B) is still a very important work in progress, seeking Member input. No acceptable outside offer is a certainty at this time. Details are still pending.
To succeed, I think, Thunderbird (T-B) greatly needs more capital up front. Perhaps we should attempt to revive the concept discussed several years ago of having a special group of supportive Member investors to form a revenue sharing LLC in some type of Club partnership for golf cottages, seeding a Wellness Cntr., and perhaps spec’ing a couple high end new homes for inventory —All projects to establish a shared cash flow over time. This community has enough accumulated wealth to do this if the majority is on board. Sharing revenue from Golf Club cottages and Spec’d homes plus a pledged return of Capital within future assessments could back up member pledges and contributions. Having (clustered?) new home inventory at predetermined price points could help accelerate our controlled growth at a higher level. If an LLC of this type can free up some Club financial obligations, or if an adequate minimums is achieved and can be leveraged, architectural plans and effectuation of an improved more urgent "Wellness and Community Center” (with spa and dog grooming capabilities?) could be accomplished years sooner. A modern Wellness Center is a major and necessary draw for both potential new and to maintain existing Members. Its urgency may eclipse or equal golf course repairs for marketing. Its schedule within T-B seems to currently be later rather than earlier. For Social member amenities seem reduced disproportionate to FSG expenditures, versus a wellness center and another amenities necessary to maintain Social members and recruit new FSG. T-B needs both.
Financially, the assumptions of anticipated assessed accounts receivable for golf course reconstruction costs may be overly optimistic. There is a possibility that some current FSG Members will not be able to comfortably afford needed assessments, or, if no longer golfing, or for whatever reasons, they may request shifting to social status to lower future assessment costs. This would pop some quick Club cash, but would shift the bulk of the proposed $ 14 mill (2022) costs of golf assessments onto a smaller number of FSG members. Do we have enough Members to both fund both a State of-the-Art Wellness center and a Signature course soon and at the same time? Currently +/- 25% of our Members are Club status. Members can support reasonable repairs, but the self-serving full Jones extravagant proposal could be a non starter for T-B. Has any committee published what are critically needed repairs, costs (updated), and what costs within the proposal are “desired “ repairs? Knowing this data will be important in a vote and decision making process. With reasonable repairs, we may not be able to advertise that we are a new “Signature Course” but HP will always be known an excellent rejuvenated Reis Jones designed course for marketing purposes. What is the cost difference? What is the updated cost of the Reis proposal? To emphasize our exclusivity we need to market our upgrades. What is critical to attract High End future members? I can understand that a named deep pocket company would want a Signature course associated with their name, and they should bear that cost aspart of our acquisition. There will be plenty of meat on the bone later if upgrades to the Club realize our potential.
MARKETING: In many Member opinions, Our past marketing failed to recruit FSG’s in part because we clung to the failed I.P. one-off sales model for too many years, and then did not emphasize our differences but rather emphasized our similarities to other clubs. I believe that our marketing seriously needs to change its target and raise on the bar. I had repeatedly appealed to Adam to change his targeting of “everyone” and to market our unique differences (privacy, personal safety and security, quietness, nature and unspoiled beaches among others, rather than market our similarities to other “ordinary” clubs . Change our website image now. Upgrade facilities and new membership costs, Thunderbird at some point, needs to seriously drill down on a plan for future marketing and maybe investigate hiring an outside experienced marketing firm especially If not ending up partnering with a Hotel.
With Respect to Real Estate: Current realtor recommendations, including our own seem mesmerized that they must peg resale pricing at lowish prices, for a ‘ possible need of a mortgage’. Price point recommendations seem to have failed to emphasize our “Island Premium,” its value added and the increased costs of Island construction, safe private living and exclusivity. Consider the realistic costs of new construction. No doubt, some existing homes and some interiors are dated by this time. however prior prices and “comps” on the mainland should be irrelevant. We should aspire to create demand & new members who will want minimal financing or no financing, and target a high end crowd. Having a minimal amount of new inventory homes at predetermined prices points built by individuals or a group of Members could appeal to many potential new members and reduce tendency for re-sales. We need to raise the bar of exclusivity, create demand, and create an awareness of our unique value added.. Member supported golf cottages could be one important faster path, in my opinion, for T-B’s success. Interior farmland homesites are selling at a premium at Palmetto Bluff, where marketing has created demand, so a lack of waterfront lots at HP should not be blamed as our main marketing problem. We need to create demand by marketing a rejuvinated unique product.
We (Haig Point) are a totally different product and unique lifestyle island community. Our special island setting and experiences are not for everyone. We are not just a "famous golf course with homes", BUT RATHER we are and should market our "special close island community lifestyle with unmatched value added….(describ above) —A Community which also happens to have special outstanding golf courses. As a former avid golfer, I still appreciate and support the importance of maintaining our well known courses, but only at reasonable expense if members alone are to bear the cost. I think this will still preserve property values, and not drain Thunderbird. I agree that Social Club Members, present and future , as you pointed out so well, need more emphasis and amenities for their contributions and assessments. I am skeptical that the potential draw of having a Signature Course alone within T-B will define our property values. While desirable, It has not done so in the past. Our Courses, Haig and Calibogue, have the best layout in the region and they always be known as Jones designed. I do not see where Marketing cannot state this if only necessary repairs are performed.
I heard that there is some individual member interest in spec’ing a few homes. That is terrific!! Particularly if an LLC is formed, different and escalating layered price points should be considered perhaps in clustered areas??
Other pending work in progress for Thunderbird: Old Nemeses: How do we Improve….
*A lack of custom builders which have constrained our abilities to grow
*Logistical building material and barging issues.
*A Need and budget for crew and Member boats.
*The number of current Members constrains our budgets to rapidly achieve our full potential
*It has not been stated yet, who in T-B will actually recruit vendors, recruit experienced major Project manager(s), who will set up checks and balances, and who will oversee the entire T-B itself? Do any members have that much time, and experience, and are willing to give up their retirement for a possible decade? (We got a Bear this year.…Pa shot it).
*Outside Deep pockets would be able to deal with these fiscal needs and marketing, if they “see the dream” and see our product potential, but only if the Devil in the details are acceptable to Members. If Phoenix is accepted and they feel that the full Reis Jones proposed golf course expenditures are necessary, to be associated with the name of the outside entity, let them pay for it as part of their proposal. It is agreed that signature status is desirable but is it realistic for T-Bird, in its current format given the importance and attraction of updating our amenities specifically a spacious updated and luxurious Wellness center, Enhanced dining facilities and other amenities to raise our bar.?
* if properly upgraded our club demand should have a waiting list and there will be, I repeat, There should be plenty of meat on the bone for the next chapter if enough is invested in this chapter.
While Thunderbird remains a work in progress, I laud and I'm grateful to our Members who are working on this alternative possible plan. I shall volunteer to participate in some way with our future marketing planning, if T-B prevails, and if ever invited.
If we obtain adequate solid pledges of Member contributions fora pre-determined
Minimum sum (?)(?) ($5 -6 Mill?) to form an LLC on a pro-rata basis, monies can be held in escrow until a predetermined sum is met. If a minimum number of contingency contributions are pledged . I will support this within a revised overall plan. More and other Member input and comments may help the Committee offer Members an alternative to an as-of-yet unknown. outside proposal. I have discussed this with a few interested Members, and with enough interest a performa is needed..
Thank you, Mark. Ettinger class of 08/09