Proposed Dues Increases for Non-Property Owners
A Ferry Talk member received this email and asked that it be published here. This is Gary's email in its entirety. Dues increases are being used to cover year-over-year operational shortfalls. If you are for/against this, please speak up.
PRESIDENT’S LETTER TO NON-PROPERTY, NON-EQUITY MEMBERS As most of you are probably aware, the Haig Point Board and Board Committees have spent all of 2021 and the beginning of 2022 developing a comprehensive Long Range Capital Plan. One of the objectives in support of that Capital Plan was to break even on our club operations, and not rely on our Real Estate and Development portion of the business to offset the Club’s operating losses. With that in mind, we focused on our dues as the only realistic path to getting to that goal this year. During that review the subject of the amount of dues that Non-Property, Non-Equity (NPNE) members paid versus the amount paid by Haig Point Equity and property owners came up. There were several points resulting from that review and discussions.
NPNE members could not vote on the Capital Plan improvements, and because of that could not be assessed for their costs (~$40,000+ over the next 3 years). The Board was okay with this because of the NPNE members not having the right to vote on it, even though they would be direct beneficiaries of the improvements.
NPNE members were paying $18,500 per year versus a Signature Full Golf member who paid $25,852, or almost 40% more. Both memberships had essentially the same privileges and access to the same amenities, common property and services.
This difference in membership costs has become an incentive for people to sell their Haig Point house/property and move outside our gate and get a NPNE membership. By doing this they still enjoyed all of the same benefits, with lower annual dues and no liability on capital assessments like those outlined in our Long Range Capital Plan.
The same is true for potential Haig Point new members and real estate clients. The NPNE membership has become a disincentive to buying property in Haig Point.
While we understand the fact that many of the NPNE members pay anywhere from $1,000 - $2,000 in annual POA at their current locations outside of Haig Point, this is also true for many Haig Point members who live in the Plantations Homes ($4,560), Savannah Walk ($5,400) and the Osprey Island area ($1,335) and still have to pay the higher dues.
With those points in mind, the Haig Point Board of Directors has decided to increase the NPNE annual dues as of July 1, 2022 to mirror the Signature Full Golf and Signature Club memberships dues. We are also creating two NPNE membership categories that we will ask you to choose from, which are similar to current Signature Full Golf and Signature Club memberships. The basic difference being whether a NPNE member wants to have a full golf membership, or limited golf under a club membership.
The Annual Dues for each of these memberships starting on July 1, 2022 (June 1 billing date), will be:
Non-Property, Non-Equity Full Golf - $27,150
Non-Property, Non-Equity Club - $23,430
This assumes the proposed increases this year are approved by a vote of the Equity members in May. As part of this change, we will be reviewing things such as guest privileges, etc. to assure these too mirror the Signature members services and benefits. We would also like to offer you an open session with myself and our CEO Doug Egly to discuss this further, or get a better understanding of everything that is going on with our Long Range Capital Planning. To do so, please Email Doug or I and let us know if you are interest in an open session for the NPNE members. Doug and I are also personally available to you if you have questions, concerns, etc. On behalf of the Haig Point Board of Directors and myself I want to let you know that we truly value you as members and that we did not make this decision lightly. Given the facts as I outlined them earlier in the letter, I think you will agree, there was very little choice in how to move forward in this matter. Respectfully, Gary Baum President, Haig Point Board of Directors
Oh wow, a $5000 to $8000 increase a year after they were told they would not have their dues increased is not a good optic. On top of last years $2000 increase. Not saying it’s right or wrong but that is a big check to write out Of no where.