Voting form at the bottom of the page. Vote today!
Age and weather have taken a toll on the tennis hardcourts leading to buckling and cracks that both negatively affect the quality of member play for tennis and pickleball and create the potential for serious injury during higher level tennis play. Over the past year the board has been working to identify the proper solution.
The board recommends the refinancing proposal below, with construction to occur in the fall of 2022. The courts will be lined with 4 pickleball courts, doubling our current capacity! Temporary nets will be made available to play, since the courts are lined on either side of the net.
This option will give us one of the best playing surfaces in the area for the longest amount of time.
We have a closing deadline at the end of the month to lock in the current terms. The Board is considering this opportunity for several reasons:
- Pay for our upcoming hard-court renovation. As discussed earlier in the year, our hard courts need some love. We have weighed many different financing options for the hard courts but almost all of them would mean a significant hit to our cash on hand. This refinance option would allow us to take advantage of the equity that the club has built and pull out $115K to cover the project costs. It is important we maintain a sufficient reserve of cash in the event of an emergency repair. If we do not obtain the financing, we may not be able to pay for the hard-court renovations in the near term.
- Take advantage of lowering our overall interest rate Even with rates elevated, the rate we currently have locked at 4.9% is lower than our current rate of 5.69%. This rate will only be available until the end of the month, closing soon is imperative.
- Avoiding a lump sum balloon payment that is due in five years. Commercial loans like ours have longer amortization schedules than the actual term of the loan. Meaning at maturity a lump sum balloon payment is due. This will be a significant outflow we are not prepared to make. Under our new loan, the maturity would be 10 years from now, giving us time to prepare for the balloon payment.
Additional loan details are at the bottom of this email for your review. We will also be having a 30 minute Q&A session Friday evening at 7:00 on the tennis deck for anyone with further inquiries.
Per our operating agreement we require a 60% quorum of all vote holders in order to move forward with any expense over $75,000 or a refinancing action. That means we need 300 votes to move forward. We have 350 active members alone, so we know we can do it easily with your help.
We are on a tight timetable and need to close on this new loan by the end of the month. You can visit the link here to cast your vote today!
And because we aren’t above enticing you, we are also offering some additional incentives to get your vote in early! We will be raffling off club koozies, stickers and pool guest passes. So, the sooner you get your vote in the better the chance of winning some prizes. We need to get all votes in by Tuesday, 7/26 so we have about 5 days, but I bet we can get them in sooner!
Please let us know if you have any questions if you can’t make the in-person Q&A and we look forward to your support as we continue to put the club in a better financial position and improve our facilities for the future.
Refinance summary:
Current Mortgage with Truist
Principal $269K
Maturity Date: September 2027
Originally a 15 year amortization payment schedule with 7 year bullet (balloon) payment
Current payment: ~$2,200
Interest Rate: 5.69%
50K Revolver line of credit available for emergencies
Refinance Option with Pinnacle Bank:
Principal: $385K
Includes $115K cash out refinance to pay for hard courts
20 year amortization schedule with 10 year bullet (balloon) payments
Payment: ~$2,600 (only $400 more per month)
Rate: 4.9%
No prepayment penalty (we can pay the mortgage off early)
50K revolver line of credit available for emergencies
