The following analysis was posted on Facebook and we thought is a worthwhile read to get a better understanding of the situation.
The analysis was completed and shared with the Board a few days ago. That was prior to the MCA Treasurer’s announcement at yesterday’s Board meeting that an estimated $110,000 of the original $790,000 “reserve” was going to be utilized to pay ICON payroll for May.
Summary
Summer is a money losing season for golf and tennis. If the MCA opens and operates the facilities it runs out of cash in less than 2 months. This is a waste of money and, as the Treasurer has noted, puts the MCA in a position of having to get a deal done immediately. And it leaves no funds left to maintain the facilities if the facilities need to be shut down after briefly being re-opened.
If we keep the facilities closed, but maintain the golf courses it only costs the MCA one third of the monthly cost. That gives us a much longer runway to negotiate with a lessee and doesn’t put us in as desperate a negotiating position.
It is appropriate to be concerned about the impact on memberships. This is complicated and not easily summarized from the analysis (please give it a read). But former TMCC members (there are currently no dues paying members) are ultimately going to make their individual choices based on what the new operator/lessee membership offers are. Opening the facilities for a month or two with “Newco” memberships will have no impact on that. Arguably it could delay them from moving to another private course. But changing clubs is a big decision for an individual and requires paying an entrance fee now rather than playing other courses cheaply at summer rates and see what the situation is for their own course in a couple of months. Waiting is a pretty rational strategy in these circumstances (a no-brainer for snowbirds).
UPDATE: After the analysis was posted on Facebook, a resident posted this excellent summary:
Situation
MCA has $721K available to manage three golf courses after TMCC’s exit. They must choose how to proceed until a new operator takes over.
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The 3 Options
Option 1: Operate Now
• Costs $420K/month
• Burns all funds in ~1.5 months
• Requires immediate member return and partner takeover
• High financial risk and no fallback
Option 2: Stay Ready
• Costs ~$300K/month
• Burns all funds in ~2.5 months
• Keeps staff and leases active, but no services or revenue
• Still high risk, no fallback
Option 3: Minimal Maintenance Only (Recommended)
• Costs ~$138K/month
• Lasts ~6 months
• Stops services but keeps the course alive
• Buys time to find the best partner with less risk
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Key Insights
• No current members exist — all will need to rejoin voluntarily
• Operating now to retain members is a financially flawed assumption
• Rushing into contracts may cause long-term damage
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Conclusion
Option 3 is the smartest path — it preserves cash, avoids pressure, and gives MCA time to find a strong long-term partner.
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