Dan, from your point of view, what do you feel were some of the mis-steps along the way. I know no one could foresee the depths of what has come to pass but Albany is a State Capital city with University(s). Those factors should skew the workforce to one that is more affluent and stable. Was it a spend now on Wants rather than needs? Was too much emphasis placed on marginal ammenties (pool, tennis,fine dining) and not on the main asset - the golf course? ETC.
BTW, what's up with the walk between 12 & 13? especially with both being Par 3's? Had anyone ever suggested changing this or was it a non-issue?
Thanks for being so candid. I think the more we can learn from these kind of situations, the less apt we are to repeat them.
The back to back par 3's is strange. There has been some thought about making one of them a drivable par 4, but it was not a priority expense. Also 13 the best location to do so has some topography issues that make such a move difficult. The reason for the back to back par 3's is the old clubhouse was originally off what is now 7 very close to 13. When it burned down years ago it was moved to its present location. Same reason that 9 and 10 end up back to back par 5's.
The place certainly wasn't going to be a architectural gem but it had a nice friendly non stuffy vibe and was a fun place.
The downfall in my opinion started years ago. When they added banquet space but didn't execute the business plan needed to pay off the investment. That debt was refinanced several times but no plan was implemented to eliminate it during the time the club was flourishing and had wait lists. After that it was a finance everything to keep the present costs down, typically clubs are run by older members who won't be around to have to pay the piper but can enjoy the benefits. That led to high interest costs and debt took over to much of the dues so building and such were not properly updated and refreshed and the golf course skimped on aerations, quality sand, while it received a new needed million dollar water system, had new tees and redesigned holes (which were nice but not necessary) and lots of drainage and a new maintenance facility. All debt financed.
People thought the club was doing fine when you had 300 plus with 70 paying the debt and 230 the operations but the problems were already lurking unnoticed. While the economic problems were hard to predict, when that hit membership fell to 230 total members the debt was too much to bare, Typically clubs with huge debt are in mint condition as it is typically the build it and they will come plan that fails. Normanside is more unique as more than 1/2 the debt was not recent improvements but old stuff and income short falls continually rolled over.
When I got in charge I found out the restaurant and banquet facilities had prime costs (food and labor) of above 80% when the appropriate amount is 60% ish. So 1.2 million plus in sales we had 240k of mismanagement, which if it had been addressed years ago would have made all the difference in the end.
The true mistake was running the club with a volunteer management that changed regularly, didn't have the expertise and had their own views of what need to be done. In my opinion a long range plan and a quality general manager would have provided a different result.
Sadly the club was making big strides in attracting the 40 something family crowd and had it been able to buy the debt itself when the bank provided the opportunity could have had a pretty bright future.
Happy to share my thoughts in case it helps some one else. It was a big learning experience for me as was more a GM than a President of the club.
Dan