FCC White Paper Report

ii. The 2018 change to the joining fee model is having a positive impact as members with prior joining fee refund agreements sell their homes. F. The Cost of Doing Nothing: Choosing not to act is not a cost-free option. The implications include: 1) Increasing Maintenance Costs: Our aging facilities need more frequent and costly repairs, leading to disruptions, delays, and decreased member satisfaction. Postponing improvements results in more maintenance investments while repairs and capital costs rise. 2) Insurability Risks: Non-compliance with current building codes results in higher insurance premiums or an inability to secure insurance, exposing us to significant financial risk. 3) Escalating Construction Costs : Construction expenses and inflation have significantly raised project costs. Eventually, the club will have to do a significant renovation, which will be more costly than it is today. The initial renovation estimates of $18 million in early 2020 have surged, making prompt action crucial to avoid further financial strain and ensure the safety and satisfaction of members. Industry observers see this rate of increase continuing to accelerate, not decline. 4) Reputational Damage: Though hard to quantify financially, failure to keep our facilities in fresh condition will result in squandering a legacy of excellence that has been meticulously built since 1982. A. All clubs have personalities and reputations; those attributes are valuable and vulnerable. A change in a club’s perceived value can readily lead to a spiraling crisis in which the view of Fiddlesticks as a

premier, desirable club could become negative and make membership recruitment and home sales more difficult. If this continues, the inability to generate new joining fees and capital income will further strain maintenance budgets and reduce future investment in our facilities, exacerbating the “Fiddlesticks is getting old and worn out” perception.

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