The document discusses strategies for Moss Creek community in light of declining golf participation and a weak housing market. It recommends (1) benchmarking golf fees and costs to price annual plans fairly, (2) growing new revenue through marketing and targeting compatible priority markets, and (3) realistic budgeting by adjusting for market forecasts and tying new investments to revenue growth. This would help maintain quality amenities and support interests of the whole community fairly during financial challenges.
23. Note: The average annual increase in fees in single fee communities is 7%, not including annual special assessments .
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25. Transfer Fee: Compounding Our Problem Moss Creek has the most expensive real estate transfer fee in our market 1.0% $15,000 Long Cove 1.2% $20,000 Wexford 0.6% $ 7,000 Berkeley Hall 1.9% $16,400 Belfair 1.4% $15,000 Colleton River 4.6% $23,000 Moss Creek % of Av. Sale Price (2007) Transfer Fee Community
26. The Real Cost of Living in Moss Creek With the $23K transfer fee, your real annual cost if you kept your home for 15 years…. $3800 $1500 $5300 $4900 $1500 $6400 Current Fee Proposed Fee
31. Distribution of Age at Moss Creek Tri-Annual Moss Creek Membership Survey Year Under 40 40-49 50-59 60-69 70-79 >80 2000 N/A 4.7% 25.3% 38.1% 27.7% 2.5% 2003 N/A 3.3% 20.2% 41.2% 28.4% 5.5% 2006 3.4% 3.8% 18.1% 38.9% 28.6% 6.9%
32. Tri-Annual Moss Creek Membership Survey Top Reasons residents left Moss Creek 2003 2006 Move to Assisted Living 3.0% 8.0% Move Closer to grandchildren 13.9% 20.0% Higher Fees 7.6% 8.9% Economic Reasons 15.2% 22.0% Other 48.2% 34.0% No Answer 11.4% 8.0%
42. Kent Harrington President Harrington Group, LLC 843.837.9022 803.753.9850 (fax) 703.407.4508 (mobile) [email_address] $306,262 (est.) $318,408 $526,702 Annual Cart Revenue (’06) 0 0 $ 4.79 Annual Golf Subsidy (’06) $4.80 $0.09 ($20.56) Profit/Loss @ Member Round $47.50 $53.28 $52.22 O&M Cost per Round $1,900,000 (est.) $1,758,263 $2,507,000 O&M Annual Cost (’06) $52.30 $50.72/$56.03 $26.87 Av. Price/Round (FT/PT w/cart) 68 57/19 95 Av. Rounds/Annual Member (FT/PT) $1,106,000 $1,152,076 $635,120 Annual Plan Revenue (‘06) 1050 455 Annual Plan Players (‘06) 395 350/350 306 Annual Plan Members (FT/PT) 27,000 30,030 43,597 Annual Plan Rounds 13,000 (est.) 2970 4403 Non-Annual Plan Rounds 40,000 33,000 24,000 Annual Rounds per Course 48,000 Annual Rounds Played 1 1 2 Number of Courses CC Hilton Head Sea Pines CC Moss Creek
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44. A Community Strategy for Moss Creek A Single Fee: How Will Current Annual Family Plan Golfers Benefit? * Based on average number of rounds played by annual family plan unlimited golf members at Moss Creek, Sea Pines, and CC of Hilton Head in 2006 $1091.00 $1022.00 Annual Plan Subsidy $33.67 $3199.00 $6398.00 $2754.00 $2622.00 Moss Creek Today CC of Hilton Head Sea Pines CC Moss Creek Single Fee $52.30 $53.37 $25.91 Price Per Round With Cart* $3126.00 $3278.00 $2462.00 Per Person Annual Price $6252.00 $6556.00 $4924.00 Total $2592.00 $3464.00 $3277.00 Cart Fees $3660.00 $3092.00 $556.00 Greens Fees
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48. A Community Strategy for Moss Creek A Marketing Strategy X Golf Marketing Strategic Plan X Golf Marketing Director X Golf Marketing Budget X Outside Market Analysis X Outside Revenue Goals Target Markets in: X Incentive Program X Media and Web Outreach X Private Club Web Sites X Corporate Visitors X Community Organizations X Local Business No Yes Does Moss Creek Have….?
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52. A Community Strategy for Moss Creek Outside Golf: The Facts About Security Security Deposit Phone Number Credit Card Number Driver’s License Number Vehicle License Number Name Yes Yes Yes Yes Yes Yes Outside Golfer No No No No Yes Yes Annual Vendor Pass No No No No No Yes Daily Vendor Pass