• ClubCorp’s business model has evolved to recognize that “pure” golf clubs are a declining market and that the future lies in family-oriented country clubs, providing golf, tennis, swim­ming, health/exercise and social facilities to their members
• ClubCorp has undertaken to complete the purchase of ACCC if agreement can be reached with the owner s of the Resident’s Center (the ArrowCreek homeowners) to allow access to outside members. In return ClubCorp will make major improvements to the Residents Center facilities and staffing – at no additional cost to the residents – as well as providing residents with access to ACCC
• ClubCorp has proposed to the HOA board that ClubCorp be awarded a lease to operate the Center rather than a management contract as the latter would provide less protection to their investment and tenure. The details are still under discussion and more information will be presented at planned “Town Hall” meetings to be held at the Club on Thursday/Friday, June 12/13^th
• The HOA board plans to put the matter before the residents to vote on. The following outline provides information to help all property owners of ArrowCreek to arrive at a decision

 ClubCorp’s Offer to the HOA: 

• $270,000 renovation and expansion of the fitness and aerobic area within the current footprint at no cost to residents, plus 8-10 new items of equipment. Plans produced by original architect
• Expanded snack bar area including the purchase of equipment needed for full snack bar operations
• Staff provided by ClubCorp to operate/maintain equipment and provide compliment­ary fitness, tennis, swimming training and classes. Optional fee-based programs will also be provided depending on demand
• Snack bar open daily in summer, plus limited operating hours at other times during the year for special group resident/member events
• In a reciprocal arrangement, ACCC will provide dining/social access to all ArrowCreek residents during the hours that the clubhouse is open to members Monday through 3 p.m. Friday
• ACCC to provide 20% off published guest fee rate to residents for play on the Legend during times public play is permitted
• ACCC will host HOA meetings at clubhouse on a space available basis at no room charge and assist HOA with facilities options and promotion for other HOA sponsored events
• ACCC options to sell up to 200 sports memberships (fitness, tennis, swim) to non-resident members who would be required to pay additional dues to upgrade to a Sports Membership. Non-resident member must be an ACCC social or golf member to be eligible for sports membership. (Note: It is anticipated that it would take some 4 – 5 years to recruit these 200 members. The first year is not expected to see more than 40 members

 Proposed Business Terms: 

• ClubCorp to fund initial renovation plan costs and equipment purchases; ClubCorp/HOA to mutually agree future facility expansion, capital repairs and replacements
• 20-year lease with two 10-ye ar renewal option terms for operation and maintenance of HOA swim, tennis and fitness center
• ClubCorp responsible for operating costs and facility maintenance/repair of the HOA center, swim and tennis areas
• HOA to reimburse ACCC $175,000 p.a. (actual 2007 amount allocated for Center operation and maintenance) plus annual CPI adjustment
• ACCC to provide Annual Capital Contribution equal to 5% of sports dues income for future capital repairs and replacements

  Benefits to ArrowCreek Residents: 

• Renovated, improved athletic and food service facilities at no additional costs to residents
• Contribution to HOA Center capital reserve fund. Reduces HOA funding
• Future facility operating/maintenance costs not to exceed 2007 HOA budget plus annual CPI adjustment. Operating risk assumed by ClubCorp, not HOA
• Professional management of the fitness and snack bar facility. Weekday complimentary fitness classes offered to residents
• Resident access to social/dining at ACCC without additional expense to residents
• Resident discounted golf guest fees
• Stable, viable resident club and community center with established working relationship with ACCC. Enhances value of living i n ArrowCreek – including property values

 Potential Consequences of Failure to Adopt ClubCorp Proposal: 

In discussion after the presentation, the following points were made by those in attend­ance.  

• Without the ability to offer a full Country Club benefit, (golf, swim, tennis, fitness fa cility) ClubCorp has stated they will not purchase ACCC
• With no future for ACCC new members will not join the club
• TerraBrook has stated its unwillingness to continue funding the Club’s operation and maintenance should the purchase by ClubCorp fail. As a result the Club could be forced into bankruptcy
• In this case, how will the two world-class courses be maintained; presumably they would revert to their natural (desert) state
• The impact on our property values is not likely to be beneficial. Golf aficionados (which make up ~ 40% of the current property owners) may not be so attracted to live in our community
• One possibility is that a low-end operator will buy the club out of bankruptcy and offer cut-rate golf to all – in a gated community!
• Whatever the outcome, the quality of our community will be changed – most likely not for the better

Every ArrowCreek property owner’s vote is not just about golf, or their individual reaction to sharing the Resident Center, but rather is about the quality o f life and protecting our investment in ArrowCreek