Mohican Master Plan
[From Chris Savage email on May 1, 2013]
To Members of the Mohican Swimming Pool Association:
With this email, voting on the proposed plan for financing the pool renovation project is now open. We expect to keep this vote open until approximately May 20, 2013, in order to give everyone in the community a chance to let their views be known. We will provide email updates to remind folks that the voting is open and when it will close so that nobody misses their chance to vote.
[NOTE: The presentation from the meeting on Apr-28-2013 is available here Mohican Membership Meeting Presentation Apr-28-2013]
As described in prior emails and in the notice of the April 28 meeting, the proposed funding plan is set out below. Note that the amounts are stated in round figures.
1/Project Budget: The budget for the project, including contingencies, is $3,400,000.
2/Sources of Funding:
a/Cash on Hand: $650,000
b/Loan available from bank: up to $2,400,000, 4.99% interest, 25-year amortization with an initial 10-year term.
c/Amount left to be covered: $400,000
3/Sources for the remaining $400,000:
There are four additional sources of funds to cover the $400,000.
a/Prepayments/Capitalized Memberships: Members who wish to pre-pay an amount of $6,875 will be given the opportunity to do so. The $6,875 represents each member’s share of the cost of the project above the $650,000 we now have on hand. No one will be required to make a pre-payment, but the more members who choose to do so, the less money we will need to get from other sources. If about 60 members choose to prepay, that will cover the entire $400,000 that we need. Future dues for members who prepay will be set at a level that does not include the cost of servicing the loan, which we estimate to be a savings of about $425, using 2013 dues as a baseline. Future dues for members who do not prepay will be set at a level that includes the cost of servicing the loan, which we estimate to be an increase of about $70, again using 2013 dues as a baseline. Members who prepay will also get a refund of a pro-rated portion of their prepayment if they later sell their membership. The ongoing survey on this question, as of now, already has about 20 members indicating an interest in pre-paying.
b/Fundraising: Our goal is to raise $100,000 in donations from the community through different fundraising events and ideas. We already have about $20,000 from this source.
c/Sale of New Memberships: We have the option of selling additional pool memberships starting with the 2014 season. The maximum number of new memberships we can sell is 50. At the current membership price of $3000, this would raise $150,000. We recognize that some people don’t think it’s a good idea to add new permanent members, so we would carefully consider whether to take that step.
d/Additional Capital Assessment: If the funds from the sources above are not enough to cover the $400,000, then a capital assessment would be made to close the gap. The amount of any such assessment would depend on how much is raised from the other sources, but is likely to be relatively modest.
4/Approval Requested: The Board requests that the membership approve the financing plan described in (1) through (3) above.
As noted in prior emails, if you have any questions or concerns about any aspect of this proposed funding plan, please feel free to contact me at christopher.w.savage@gmail.com, or by phone on 202-256-5445, or to contact any other member of the Board.
Thanks,
Chris Savage
President, Mohican Swimming Pool Association
Background Information
Over the spring of 2011 the Mohican Pool Association has developed a master plan for the facility. This plan was developed through an extensive process of gathering member input and please click on the following link to download the results of the membership survey that was carried out in April 2011.
The options were put to a vote of the membership between May 16th and May 23rd. The result of this vote was the selection of a concept and budget for the pool and bath house.
The winning selections in each area are below.
Pool: Replace the pool with an 8 lane pool and make other necessary modifications to bring the pool up to code. (This would include expanding the diving well, separating the middle pool, adding a zero entry to the baby pool, fixing the drainage and replacing the deck and filter room.)
Bath House: Replace the bath house with a new summer bath house. This option would replace the bath house with a structure which is approximately 25% larger. The larger structure would meet all code requirements for the current and replaced pool. It would be moved out towards the parking lot on the slope and would include space for a new filter room under the main facility.
