PICACHO HILLS COUNTRY CLUB (“PHCC”) Pre-Membership Agreement
This is an agreement by and between Southwest Golf Management, LLC (“SWGM”) and “Pre-Member,” undersigned, made this ________ day of ___________________________________ , 2019. This pre- membership agreement includes the terms contained in the recital:
INTRODUCTION: The PHCC property needs a lot of improvements and the current SWGM business plan only allows for limited improvements in 2019. SWGM would like to make more PHCC improvements in 2019.
To fund more PHC improvements SWGM would be willing to PLEDGE that all initiation fees received from PHCC new membership sales or conversions in 2019 will be used exclusively for PHCC capital projects. Initiation fees received in 2019 will be deposited in a PHCC capital projects escrow account that only releases funds for PHCC capital projects. There will be a 10% discount for those who agreeand select a membership before April 1, 2019.
Once PHCC purchase is final the escrow funds will be released by draws for improvements.
PROCESS: 1) Select membership level you prefer as described below. 2)Deposit the appropriate initiation fee into escrow account, directions below. 3)Sign agreement. *This is a pre-membership agreement. Complete membership agreements will be available at a future date prior to escrow closing.
USE OF ESCROWED INITIATION FEES WILL BE USED AS FOLLOWS:
1) $360,000 +/- for the purchase of a new full-service liquor license. The actual amount spent will include the purchase price for the license plus any necessary third-party expenses like legal, application fees, liquor license brokers and other related work in acquiring the new liquor license.
2) $440,000 +/- for CLUBHOUSE REQUIRED WORK SWGM contracted with Steve Newby, Architect and building inspector for a complete analysis of the clubhouse exterior and interior issues. The following general clubhouse issues along with their related causes need to be addressed as soon as possible. In no order the basic required work is as follows;
Door Locks and general building security Complete roof renovation to remove problems with “ponding” and repair roof drains Replace as necessary roof tiles, metal flashings and pipe support Replace HVAC Repair retaining walls and stucco Interior dry wall repairs Mold remediation in locker rooms, kitchen, near water heaters and cart barn Air washer leaking and electrical disconnect rusting Condensate lines repaired Main water line needs back flow preventor Main electrical distribution panel is full and not completely servicing the building Cart charger system is inoperable and requires on a single charger system which is dangerous and costly Phone and data boards are outdated Bathrooms need to be expanded and possible ADA requirements may need to be considered Kitchen equipment and fire suppressors need to be replaced
3. $500,000 +/- GOLF MAINTEANCE BUILDING Work
Renovate, expand or replace building Upgrade fuel center Exterior security lighting Chemical storage unit not safe and up to code Completely pave area Security fencing Exterior and interior door replacement New interior lighting New building security Upgrade irrigation computer Replace and add needed maintenance equipment
Initial and Primary Work Estimate Total = $1,300,000
All expenses related to accomplishing the anticipated clubhouse and maintenance building work to include, permits, architectural work, third party contractors, engineers and all related soft costs.
Any PHCC Initiation Fees received in 2019 in excess of the first $1.3 M in initiation fees received will be applied equally for additional PHCC clubhouse and golf course improvements.
**The final improvement costs, specific improvements, and timing of the renovation work are at the sole discretion of SWGM.
New PHCC Transferable Membership Options (choose and initial one)
______ New Transferrable Full Family Golf and Club (“FGT”) Membership Initiation Fee $4,500 less 10% discount if paid into escrow before April 1, 2019 Monthly Dues: $370 Quarterly F&B minimum: $210
______ New Transferrable Corporate Golf and Club (“GCT”) Membership Concept Initiation Fee $7,000 less 10% discount if paid into escrow before April 1, 2019 Monthly Dues Family: $370 Quarterly F&B minimum: $210
______ New Transferable Junior Family Golf and Club (“JFT”) Membership Initiation Fee $2,500 less 10% discount if paid into escrow before April 1, 2019 Monthly Dues: $320 Quarterly F&B minimum: $210
______ New Transferable Individual Junior Golf and Club (“IJT”) Membership Initiation Fee $2,000 less 10% discount if paid into escrow before April 1, 2019 Monthly Dues: $280 Quarterly F&B minimum: $150 ______ New Transferable Individual Golf and Club (“IGT”) Membership Initiation Fee $2,500 less 10% discount if paid into escrow before April 1, 2019 Monthly Dues: $320 Quarterly F&B minimum: $150
______ New Transferable Social/Tennis Family (“STT”) Membership Initiation Fee $2,000 less 10% discount if paid into escrow before April 1, 2019 Monthly Dues: $100 Quarterly F&B minimum: $120
______ New Transferable Social Family (“SFT”) Membership Initiation Fee $1,000 less 10% discount if paid into escrow before April 1, 2019 Monthly Dues: $50 Quarterly F&B minimum: $0
Each of these Transferable membership categories have different monthly or quarterly club fee requirements. One of the benefits of the Transferable membership is that the monthly and quarterly club fee requirements are fixed at the rates listed below for the first 3 years of the membership. The monthly dues are paid the first of the month and will be prorated for the first month of the membership enlistment.
The Membership Initiation Fee Deposit paid by the Membership Applicant (“Applicant”) shall be held in escrow by Southwestern Abstract & Title Company (“ESCROW AGENT”). In the event this Agreement is not terminated by the Applicant after reviewing the final membership agreement on or before the end of the Evaluation Period between Southwest Golf Management, LLC (Club Buyer) and Organ View Properties, LLC (Club Seller) in accordance with the provisions herein, the Membership Initiation Fee Deposit is subject to the terms and provisions of this Agreement and in the event this Agreement is terminated by Club Buyer prior to the expiration of the Evaluation Period, the Earnest Money Deposit shall be refunded to Applicant.
Southwest Golf Management, LLC PO Box 4070 Scottsdale AZ, 85261 Phone 480-668-3086