THE FUTURE OF PICACHO HILLS IS IN OUR HANDS
THE FOLLOWING IS NOT AN OFFER OR SOLICITATION TO PURCHASE SECURITIES
- We are only at the discussion phase to gauge your interest in purchasing the club and facilities through a membership organization.
- If enough interest is indicated, we will begin the legal steps to effect a purchase.
- At every presentation to date, there has been a very large positive response.
- We are not here today to discuss whether the restaurant should serve meatloaf every Wednesday, those are operational issues. We are here to discuss acquisition issues.
Acquisition of Picacho Hills Country Club by the Community
The Community Club of Picacho Hills
- Early this year, the Biads made it clear they are getting out of the golf club business.
- They basically had three options:
- Plan A. List the club with a broker specializing in marketing country clubs.
- Plan B. Explore the possibility of the members/community buying the club by putting together an advisory committee of six members.
- Plan C. Sell off the assets of the club individually!
- They did list it with a broker specializing in marketing country clubs and resorts.
- 24 requests for information packets, which included financials, came in, and one non-serious offer came back.
- While the club breaks even, it does not have a rate of return that interests serious investors.
- It has been on the market long enough to generate any buyer/investor interest that is out there. There isn't any.
- We are the only buyers.
- From early this year, the Committee of 6 (C6) has been exploring the possibilities of member/community ownership of the club.
- They have looked at the pro's and con's of various scenarios, including:
- Purchase by a small group of local investors.
- Going public.
- Ownership by a for-profit vs not-for-profit entity.
- Stratified buy-in levels. (Larger for golfers, less for non.)
- After much work, they think they have a solution.
- Before we get to the details, let's look at Plan C.
- Sell the component assets.
- Water rights - 600 AF of 1960 irrigation rights. Value - in today's market $2.1 - 2.5 million dollars.
- Land - 160 acres zoned D3 high density residential. Apartments, condos, up to 45 feet tall. Value - ???
- Clubhouse complex - pool, restaurant, tennis, driving range. Value - ???
- A good argument can be made that the $2.8 million asking price may be substantially less than liquidation value!
Plan B and who is the Committee of Six?
- The Committee of Six is made up of
- Two attorneys
- Two CPA's
- Two business people
- One banker
- OK, one of the attorneys is also a CPA.
Proposal by C6 (Plan B)
- Create a new non-profit entity – The Community Club of Picacho Hills.
- Will require widespread buy-in from property owners, the Picacho Hills community, and current members.
- $2.8 million to purchase all the club assets.
- $500,000 for working capital/emergencies.
- $1.3 - $1.7 million for the Community Clubhouse improvements. No improvements needed on the course.
- $4.6 - $5 million total in this example.
POTENTIAL POOL OF PURCHASERS
- Homes that we think we know of …........................approx. 950
- 11 neighborhoods that aren't included yet ….....approx. 50
- Lots not built on....................................................................approx. 470
- Members not living in PH area...................................approx. 150
- Potential pool of purchasers..............................approx. 1620
PICACHO HILLS PURCHASE PRICE EXAMPLES
- 1000 memberships
- $5000 per membership
- $5,000,000 raised
- 700 memberships
- $6000 per membership
- $4,200,000 raised
PURCHASERS WILL GET
- A transferable membership, with restrictions, in a non-profit corporation that will hold title to the assets of the current club.
- Membership voting rights equal to every other member.
- Club House Membership - privileges with no monthly dues (nominal monthly minimum $50?).
- Sports Membership – dining plus tennis, pickle ball, and pool will require monthly dues. Similar dues structure to Social Membership today ($105/mo).
- Golf Membership – All of the above plus golf. Similar dues structure to today ($375).
PROTECT YOUR COMMUNITY
- A loss of the Club will not make your property values go UP.
- Santa Teresa Country Club is a real life example of what can happen to a community when a club is shut down.
- Owning the country club in your backyard insures YOU control the future of our neighborhood.
- The entire Picacho Hills community would be affected, but this can be avoided.
- Several banks have stepped forward to offer loans for the purchase price of the membership for those who, for whatever reason, might prefer that method.
- Website is up - phcommunityclub.org
- Facebook page ("Picacho Hills") is linked to website.
- Contact button with email is operational.
- Mailing address - P.O. Box 315 Fairacres, NM 88033
- Many meetings/presentations have occurred.
- More will be scheduled. Check website calendar.
- Volunteers are working hard to access Picacho Hills residents and community.
- Four committees have been set up to
- Build contact database members and residents.
- Arrange meetings and presentations.
- Develop marketing and contact programs.
- Handle back-office functions.
- Raising $50,000 to retain expert attorney.
- Develop Membership Purchase Documents.
- The Community Club of Picacho Hills Inc. has been formed.
- Funds raised to date.
- Contributions will be applied toward any membership purchase.
- This is the next step before selling memberships.
- Raise acquisition funds through membership sales.
- $4.5 - $5 million goal.
- Hold all funds until purchase negotiated.
- If no purchase, all funds returned.
WHAT TO DO NOW
- Fill out the card on your seat – indicate your interest in purchasing the club.
- Volunteer to energize your HOA, street or neighborhood - indicate that on card.
- Promote the purchase of the club to friends and neighbors.
- Please put your email and phone on the card so that we can improve our contact list.