Local members of the Lyford Cay Club are outraged over a recent announcement that their annual fees to the Club will be more than doubled, while the fees being paid by non-resident members will remain unchanged.
The local members voiced their objections to the plan to raise their fees to $13,100 from $6,000 at a meeting at the Club on Monday night.
In a detailed letter to members dated May 26, 2005, William T. Hunter Jr., chairman of the executive committee and board of governors of the Lyford Cay Club, announced that while the fees for the resident members will be hiked, non-resident members will pay $5,800.
More than 150 resident members at the meeting on Monday night formed a select committee to put their case before Mr. Hunter, outlining their total disgust and objection to the decision.
The members, a high net worth group, stressed that this is not a matter of money, but a matter of principle.
In explaining the decision, Mr. Hunter in his letter said, “We feel that our non-resident members provide the diversity integral to making The Lyford Cay Members’ Club such a special place”
It was a statement some resident members said was completely offensive.
Mr. Hunter also said, “We are engaged in a systematic analysis of operating options designed to relieve the Club from some portion of the fixed overhead associated with our clubhouse rooms and cottages.
“This fiscal year we expect to experience an operating deficit of over $800,000, and I’m sure you will all agree that this is something we simply cannot permit to reoccur.
“There are a number of factors that contributed to this year’s results, including the cost of hurricane damage exceeding our hurricane assessment collections by several hundreds of thousands of dollars.ﾠﾠ
“However, the intractable continuing feature of our operating problems result from the steady decline in membership utilization of our clubhouse rooms and cottages. We feel that our experience in that regard can be associated with two trends.”
Mr. Hunter indicated that one of those trends is that over the past 10 years, a significant percentage of the club’s members who once utilized transient club facilities, have elected to purchase property locally and are consequently no longer renting rooms or cottages from the club.
He said the second trend is that airport security requirements imposed since 9/11 have made short trips from the East Coast of the United States and from Eastern Canada much less appealing, and short-term room and cottage rentals have consequently declined.
“Unfortunately, despite our plans for facilities improvement, we expect both of these trends to continue to work against us,” Mr. Hunter said.
He also announced that the board has approved a five-year major capital expenditure plan that includes funding of the following: complete renovation of the Yacht Club this summer; the renovation of the Club’s golf course and associated irrigation system commencing next spring; a major upgrading of the electronics along with dock expansion in the Club’s yacht harbour this year; a major renovation of the pool area and pool terrace subject to future plan; main lobby renovation next year; and the construction of a new water sports shack.
Mr. Hunter indicated that there is a $5 million cash shortfall necessary to finance the five-year major capital expenditure plan.
“Your board was unanimously opposed to suggestions that we create any membership distinction based on facilities utilization,” he wrote.
“There was uniform expression that Lyford Cay has always been ‘one club’, not a combination of a number of clubs. We are not ‘tennis members’ or ‘golf members’ or ‘social members;’ we are simply ‘members’. Your board feels that to violate that principle would violate one of the features essential to the nature of the club we all joined and wish to retain.”
Mr. Hunter also said that there was broad-based recognition that the ratio of annual membership cost (dues and assessments) between resident and non-resident members is too heavily weighted toward non-residents.
“Prior to the changes described here, our club had less than a 2-to-1 ratio of resident to non-resident annual dues and fees. Your board has recognized that a proper ratio, based on what prevails at other good clubs throughout the United States and Canada, is at least 3-to-1.
“In recognition of that fact, two years ago our board voted to hold non-resident dues and fees static, while increasing resident dues and fees as necessary to balance our budget. For these reasons, your board voted unanimously to apply 100 percent of the assessment necessary to fund its five-year capital program to the resident senior members.”
“Your board is aware that there will be members who feel that our allocations of the special assessment burden, and perhaps other aspects of the direction-changing measures we have taken, are ill-considered or unfair. I cannot suggest that reasonable arguments cannot be made to support such views,” Mr. Hunter said.
“I can however assure you that each of these decisions was taken with deliberation, and with full consideration of all associated ramifications, and in every case your board voted unanimously to follow the course these decisions reflect. Your board and your chairman are extremely optimistic regarding the continued success of our fine club. I hope our membership will understand and support our efforts in that regard.”
By: Candia Dames, The Bahama Journal
