THE FUTURE OF FGCC
click here for online survey results

There is a real sense amongst some of the members of the FGCC that it may finally be time to make some difficult choices with respect to the Curling part of our business.  With the pending proposal for additional funding of $114,000 being recently tabled to upkeep and maintain the curling part of the club and the upcoming general meeting  slated for early April it would appear that the hand of our membership may have finally been forced into making a tough final decision.

In an attempt to start a dialogue among our membership and offer an avenue for people to leave their thoughts and questions with respect to the upcoming decisions I have supplied this online forum.  It's purpose is to allow you to leave your feedback, ideas and resolutions or to simply educate yourself on the nuts and bolts of the issue as it unfolds.  All of the information provided here is accurate to the best of my knowledge.  If you see anything that you know to be inaccurate please let me know by email at beaglecaptain@yahoo.com and I will certainly make the appropriate changes.


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As a life long member of the Fredericton Golf and Curling Club I have always had a sincere interest in the 'goings on' of our club.  From the time my parents were coming home late from the infamous Golf Club dances of the mid to late 70's through my junior days starting at the age of 9 (unbeknownst to Archie) and until today at the age of 38 the Club has played a significant part in my life as it has in the lives of many of our members.  

Unfortunately like any 'business' we are often times faced with decisions that need to be made in order to survive and prosper, which brings us to the topic of discussion.  Curling at the FGCC and what the future holds for it.

Curling has always been a game played by gentlemen. It is for this reason that I feel this issue should be handled with the utmost sincerity and professionalism.  The hundreds of people who over the years have called the FGCC their curling home have earned this right.  As a membership it is important that we consider all options, opinions and analysis and come to a decision as a group and support the outcome regardless of what it may be.

Curling is steeped in NB and Canadian history and deserves its rightful due.  My grandfather was a lifelong and successful curler as was his son, unfortunately the popularity of the sport did not transcend on down into my generation and as a result the interest, at least at our club level, has continued to decrease despite some very hard work by some very talented people to drum up new members and new ways of generating curling revenue.  .

Discussions have popped up for the last few years or so amongst the golfing fraternity about the curlers inability to 'pull their own weight'.  Rightly or wrongly the overwhelming impression is that the sport of curling is being heavily subsidized by the golfer and his yearly golf dues as well as by the other revenue generated by the golfing end of the business.

Many questions arise during our after golf 'debates', one being the lease agreement between Golf Lands limited and the FGCC, and the mystery clause (schedule c-2) that is purported to say in order for the lease to be honored Curling must be a part of the mix.  I've recently seen the lease agreement (finally) and their is a clause that mentions the golf course, the curling club and the club house as independent parties and it would seem to indicate in the spirit of the agreement that there is some truth to this often talked about mystery clause. It does after all specifically mention maintaining a golf course, club house and curling rink.  However this clause was also put in at a time when curlers and curling in general were a viable part of the business.  It is also evident in talking with Golf Lands that the intent of the original lease between the Golfers and Golf Lands (many years prior to curling coming into the mix) was set up to insure that first and foremost the community of Fredericton would have a golf course. After all if not for the generosity of these members and their families we would not even be playing golf where we are today.

The history of how things have unfolded in the last few decades goes something like this.  In the late 70's following a fire at their curling club members of the FCC were left with no home but they did have a pocket full of insurance money (roughly $450,000 of the 1.2 million needed to build the new facility).  Incidentally the members of the FGC were in a similar situation facing costly repairs to a dilapidated clubhouse. At the time it seemed a match made in heaven, an excellent fit, for the two clubs to join forces and decrease overheads with the shared use of one building instead of the increased cost to each of operating two separate ones.

At this time the original lease between Golf Lands and the FGC was amended to reflect the new partnership and to include the mystery clause that purposely mentions, curling club, golf course and club house.  A short time later after the bankruptcy of the newly formed FGCC (1984) the lease was once again rolled over, but still would include this clause.  In 1998 with the construction of the new holes and the sale of the Cameron Property the lease was again re written.  Which brings us to today.

It should also be noted that Golf Lands limited, owners of the property that the golf course, club house and curling rink occupy, have always existed primarily for the purpose of providing golf to the citizens of Fredericton, this has been their mandate from day one.  Any inclusion of curling or the clubhouse in the lease or other legal documents was most likely brought in at the urging of members of the FGCC board of the day to protect the interests of each facet of the business.  

First off, let me say that I am all for having a curling club associated with my golf course, provided that at the end of the day the curling portion of my club can stand on its own two feet and not rely on me as a golfer to operate.  When the partnership was entered in to in the beginning the curlers came to the table with a substantial amount of money that went toward the construction of the new clubhouse and curling rink.  At this time they also had a fairly healthy and vibrant membership to add to the mix (although it was even at this time starting to experience a decline with several members opting to not renew at the new facility and others heading to the more competitive CWC for their curling).  However, in the past several years, do primarily to a continued dwindling curling membership, revenues from the curling has not been sufficient enough for them to cover off their portion of operating expenses and as a result a lot of the general expenses are being paid for by the golfers instead of shared accordingly between the two separate parts of the business.  

If this was a true partnership and the curlers were operating independent of the golfers they would be responsible for their portion of insurance, property tax, administrative fees, building upkeep and maintenance, advertising, phone etc. Today this is not the case and as a result the spirit of the agreement as a partnership has fallen by the wayside.

Of course the argument has become over the past few years that the FGCC would still have to pay the majority of these expenses regardless of whether curling existed or not. Although this is true to an extent, does that preclude the curlers from paying their fair share?  I could say the reverse, that if the golfers did not exist the curlers would have to pay these expenses in order to keep the curling club operating?  Does that make sense? 

Perhaps there would be a better tenant to occupy the space in the winter or perhaps having no tenant at all would be more advantageous than having one that does not pay his way, what if we were to just close the doors in the fall and return in the spring?  These are all questions that have to be answered in order for the FGCC to move forward in a positive direction that is FAIR to all of its members.

The truth of the matter from my point of view is that my dues are somewhere around $1600.00 so that you can curl all winter for about $375 ( I believe my trail fees are almost that much).  Golf generates 93% of the total revenue of the FGCC to curlings 7%, however expenditures, if looked at literally would most probably fall in the 50-50 range.  Unfortunately since the curling end is unable to pay their 50% of expenditures while only generating 7% of revenues the golfers are forced to make up the difference.

What I would like to see is an independent review done to determine the proper proportion of expenditures that are related to curling and the proportion related to golfing and then assess them accordingly.  If the curlers occupy the building for six months a year and the golfers for the other six months I feel each should be responsible for the property taxes, phone, office, administration, utilities etc. during the time that they occupy the building.  I realize that there are definitive expenses incurred by the golfing side (maintenance staff wages, fertilizer, mowers etc.) as their are definitive expenses incurred by the curling side (ice plant, ice making, snow removal) these are easy to determine.  It's the shared expenses that are being manipulated to make the curling picture look much rosier than it truthfully is. (property tax, insurance, administration etc.)

My motion would not be to get rid of the curling, this would be unfair, my motion would be to have the curlers operate and maintain their club through the winter as if it were their own, without relying on revenue generated by the golfers to survive, to pay for their portion of expenditures and to stand as a separate successful part of the business as was the intention when the partnership was entered into in the beginning.

In summary, to me, what once started out as a union between two separate entities (FGC and FCC) to take advantage of sharing the costs of one building has become a union between two entities where one entity is incurring almost the entire burden of the costs for maintaining the health and existence of both.

In any event I think its important for the membership, the board and the rest of the interested parties to become educated on the issue and make any decisions accordingly.  There is nothing to be gained by rushing to a conclusion without properly researching all avenues of resolution.  In my mind we are on the verge of making one of the most crucial decisions in the club's history.  I think it's important that each member that intends to vote becomes aware of and educates themselves on all points of view and every facet of the issue and their possible outcomes.

Feel free to leave your thoughts below on the online survey, these results will be made public so that everyone can share in your ideas and thoughts.

Online Survey

click here for online survey results

MYSTERY CLAUSE SCHEDULE C CLICK HERE


Schedule A
Costs including interest of borrowing money to fix up the curling rink.

Principal borrowed: $100000.00
Annual Payments: 12 Total Payments: 108
Annual interest rate: 8.00% Periodic interest rate: 0.6667%
Regular Payment amount: $1301.87 Final Balloon Payment: $0.00

The following results are estimates which do not account for values being rounded to the nearest cent.
Total Repaid: $140601.96
Total Interest Paid: $40601.96
Interest as percentage of Principal: 40.602%

 

 

SCHEDULE C


Online Survey Results
NAME RECOMMENDATION ADDITIONAL THOUGHTS
Mike Gorman CURLING SHOULD BE ALLOWED TO STAY BUT BE EXPECTED TO STAND ON ITS OWN AND CONTRIBUTE TO OPERATIONS ACCORDINGLY As in any business each portion should pay its way. If it does not pay or is economically not viable then that portion of the business is closed down. I view the term of the lease as permissive and not obligatory.
Richard York CURLING SHOULD BE ALLOWED TO STAY BUT BE EXPECTED TO STAND ON ITS OWN AND CONTRIBUTE TO OPERATIONS ACCORDINGLY I see no reason why revenues generated from members who only golf should be used to subsidise the cost of maintaining a curling club. If curling is to be maintained than there should be a more equitable sharing of cost between "golfers" and "curlers". If this cannot be achieved than I would support seeking the elimination of curling at our club.
Tony Mackinnon CURLING SHOULD BE ALLOWED TO STAY BUT BE EXPECTED TO STAND ON ITS OWN AND CONTRIBUTE TO OPERATIONS ACCORDINGLY when it becomes apparent that the Curling Club cannot stand on it's own financially then we need to decide whether the funding model changes or we find a new use for the space.
Peter Embleton CURLING SHOULD BE ALLOWED TO STAY BUT BE EXPECTED TO STAND ON ITS OWN AND CONTRIBUTE TO OPERATIONS ACCORDINGLY It is quite clear that curling has not been able to stand on its own. We need to investigate how we can work around this clause that indicates that curling is an inegral part of the club. Perhaps the club can exist on paper but will receive no funding until they can afford to install the iceplant. Until that time curling will exist as a seasonal sport that is accessible when the weather is cold enough
 Terry Embleton  CURLING SHOULD BE ALLOWED TO STAY BUT BE EXPECTED TO STAND ON ITS OWN AND CONTRIBUTE TO OPERATIONS ACCORDINGLY  To further the statements found in the preamble could we please a complete and factual statement of the revenues generated by the curling group. Also can they afford the the equipment needed to upgrade the building
 Jeff Appleby  CURLING SHOULD BE ELIMINATED AS THE COSTS ARE TO HIGH FOR IT TO REMAIN AS A VIABLE PART OF THE BUSINESS  I sat on the FGCC board and took many hours to visit, then vote on this issue. During tough financial times immediately (after the construction of the new holes and the driving range) the board voted to end curling because of poor numbers and a lack of initiative to rebuild. After missing a meeting I found the issue had been revisited and that curling would remain. This lead to an appraisal of my obligation to the FGCC board.

(indoor golf school, gym, air conditioned banquet hall - dare to dream!)

 Ernie MacKinnon  THE CLUB SHOULD ELIMINATE CURLING AND CLOSE THE BUILDING DURING THE WINTER MONTHS  Change is an integral part of life.It is not a question of 'if' curling will end at FGCC but when. We need to bite the bullet at some point and the replacement of the plant is the catalytic event. Since I do not believe the city can support more than one curling club in the future I support making the decision to close now.
Mel Murray CURLING SHOULD BE ALLOWED TO STAY BUT BE EXPECTED TO STAND ON ITS OWN AND CONTRIBUTE TO OPERATIONS ACCORDINGLY Turn the ice shed into new locker rooms and offices for the club.

It's time the membership made a decision and move forward

Chris Hallett CURLING SHOULD BE ALLOWED TO STAY BUT BE EXPECTED TO STAND ON ITS OWN AND CONTRIBUTE TO OPERATIONS ACCORDINGLY Five years as a member and that part of the club has only been used to keep my ball in play coming up two. My serious inquiry is how many golf members choose to curl elsewhere already?
Dennis Hogan CURLING SHOULD BE ALLOWED TO STAY BUT BE EXPECTED TO STAND ON ITS OWN AND CONTRIBUTE TO OPERATIONS ACCORDINGLY As with any part of a business each element needs to be able to stand on its own. The curling portion needs to meet its financial short falls or face the music
Ed Haggerty CURLING SHOULD STAY IT IS AN INTEGRAL PART OF THE CLUB CURLING SHOULD BE ALLOWED TO STAY BUT BE EXPECTED TO STAND ON ITS OWN AND CONTRIBUTE TO OPERATIONS ACCORDINGLY Who ever is the author of the prelude to this Survey should be the Chairman/President of the Board of the FGCC. I have read the prelude on more than one ocassion and thought a great deal about what the person has said and how that person has laid out the thoughts expressed.Many of the issues that are laid out in this prelude are included in the plan the current Curling executive has submitted to the existing Board of the Club. The plan submitted to the board by the curling executive to operate as a distinct business unit responsible for its revenues and expenses was rejected. In a meeting with the Board the curling executive asked for the terms of referrence around which to create a plan for the operation of the curling facillity. The Board was not forthcoming with anything but, "Show us that you have $125,000, and how you can generate an additional $40,000 a year than you generate now".

The curling executive would be unaminous in supporting an independent Audit of the fair allocation of costs to operate curling and golf at the club.Curling does not need the services of two administrative people to operate the curling club; however the board has now decided that half of the cost of the two administrative persons have to be paid by the curling club. The board told the curling executive that the dining and bar concession was not available for the curling club to operate in the curling season. A two year contract was awarded to a restaurant operator. The curling executive found out May 31 that the restaurant and bar concession would be shut down in December 07 and opened in the spring Curlers operating the bar earned a $10,000 profit for the club according to figures from the administration; however it does not show up anywhere in the audited financial statement. As the administration often says "you can make the figures show what ever you want". In a normalized co-operative relationship one would expect no hidden surprises. That is not the case here. Financial grants and loans are available for curling; however the administration of the club has not agreed to release financial accountion for curling which is a prerequisite for such applications for financial support.Perhaps had the perceived huge debt of the curling club been laid out five years ago; a period when the board says it started "Subsidizing" curling it would have been a problem solved not a problem grown in the dark like a mushroom, and unleashed at a time when it seemed to be the most advantageous to those who perceive curling to be the scourge of the club.


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