Building Contract Signed - Construction is Underway

Strother Scott on Thursday August 16, 2001 10:55AM

At long last we are pleased to announce that we have raised adequate money to proceed with construction and that we now have signed an acceptable contract to construct our new building. Construction should now proceed at a more rapid pace. Under Read More, you can see the "From the Quarterdeck" article that appeared in the August LogBuilding Contract - You may recall last August's letter from Mike Karn which indicated that we planned our building to cost the same as the $85 - $100 per square foot we paid for Fannie's House. We have now negotiated and executed a contract with Northwind, Inc. to build our new clubhouse and have been successful in bringing the contract in for a price within our price range.

We selected Northwind because of the excellent references from our members and because of the work they have done in the area, including work for FBYC over the years. It is hard for a builder to work for a committee, and during labor shortage periods, it may be even harder to get a project built. Nevertheless, our Building Committee has a good working relationship with Arthur Wilton, the owner of Northwind, and we look forward to working with him and his people and are confident we will receive an excellent end product.

Several changes have been made to keep the building within the price range. First, we have eliminated the cupola, even though many liked the look. The framing was complex and the Building Committee felt it wasn't worth the $25,000 extra cost. Second, we decided on the stamped concrete flooring downstairs and we believe we saved money and have a very suitable floor. Time will tell, but most people have liked the stamped concrete.

Schedule - No one is more disappointed than your leadership that this project has taken so long to get started, and that it wasn't completed "in time for Junior Week 2001". We'll take the blame for a lot of the delay and for not pushing as hard as possible. But there are a lot of factors, money-raising, engineering and alternative pricing, and volunteer's time, to mention a few. In our contract with Northwind we have agreed our mutual goal is occupancy by April 1, 2002, but there are no guarantees or penalties. The best things we can do to complete the project on time are manage the project well, and for our membership, about 350 interested parties, to stay clear of the work in progress, leaving the contractor and his subs and material alone to work without interference.

Project Management - To date the Project Management has fallen to the Building Committee (Judy Buis and Connie Garrett, assisted by Mike Karn and John Koedel) - and that will continue. Mike Karn has worked on the construction details, the pricing choices, and the contract. Now that we are under construction, John Koedel, who lives in Deltaville and has worked with Northwind on several projects, will be our on-site representative. He plans a weekly report to the Committee and he will keep us informed on progress to date, the work schedule, open issues, and change orders needed. John understands his authority and his responsibility, and if he needs help or has questions, he knows whom to ask to get the answers. Your Flag Officers also plan to stay on top of the project. This is a team project, and reflecting that spirit, change orders require 3 signatures - the Contractor, a Building Committee representative, and a Flag Officer - to be effective.

Fundraising - we currently have indications and/or pledges for $333,421 from 169 members and friends. New donations continue to arrive, and we hope that ultimately the 150+ members who have not yet contributed will do so. While we have enough money to build the building, additional donations will enable us to exit the project with a smaller mortgage loan, which is very desirable.

Chesapeake Level 5 gifts $120,000
Piankatank Level 5 $45,000
Fishing Bay Level 8 $41,000
Jackson Creek Level 83 $103,551
Clubhouse Level 68 $23,870
Total donors 169 $333,421

Project Costs - In October 2000, when we approved the Financing Plan for the project, most costs, and the fundraising, were only estimates. Today, because we now have a contract for the construction, we can better estimate the total project cost. Our current estimate for the total project cost is about $770,000. These costs include planning, demolition, and building construction, which are now fixed. It also includes estimates for change orders, kitchen appliances, furnishings, and landscaping. This total is slightly higher than our original estimate, but fortunately our Financing Plan is flexible and can adjust to these changes.

Financing Plan - The keys to our Financing Plan are the total project cost, the fund-raising program and the restriction that we have bound ourselves to end up with a loan not to exceed $200,000. The Financing Plan works today because the fund-raising has exceeded estimates and the delay in the project allows us to make our final payments for the building during early 2002 using normal cash flow. Our treasurer reports that, using worst case assumptions, we are financially ready for this large capital expenditure.

The Financing Plan also allowed a Building Dues Surcharge, or an assessment, as a source of additional equity, if needed. Today, there are still many unknowns, but if things go well, it is apparent that we may be able to pull off this large project without any member assessment.

Conclusion - your Flag Officers and Board believe that the new clubhouse will be well-built, appropriate for our Club and the membership, that it will be well-received by the vast majority of our members, and that it will serve the Club well for years to come. Finally, it is soundly financed, and the club will remain affordable. However, as we have explained, we still need and are accepting contributions. Please send your check payable to FBYC Building Fund to Bev Crump, P. O. Box 1463, Richmond, VA 23218.

R. Strother Scott, Commodore
Of 804-780-3271 H 804-556-4066 Cell 804-405-5999
Fishing Bay Yacht Club
Office Mail: Fishing Bay Yacht Club, 2711 Buford Road #309, Bon Air, 23235,
Clubhouse Address: 1525 Fishing Bay Road, Deltaville, VA 23043 (no mail delivery)

Phone Numbers: Club House 804-776-9636

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