Notice is hereby given that an Extraordinary General Meeting of The Barwon Heads Golf Club Inc. (A0028733P) (the Club) requested in writing by at least 50 Voting Members (received by the Club on 16 December 2023) pursuant to Rule 45 of the Club Rules (the Rules) will be held at the Clubhouse, Golf Links Road, Barwon Heads, on Saturday 20 January 2024 at 5.30pm (EGM No. 2).
EGM No. 2 follows an initial Extraordinary General Meeting instigated by the Committee, EGM No. 1, held at 4.30pm, notice of which is given separately on the date hereof.
BUSINESS OF EGM No. 2
- To receive and accept apologies.
- President's Address.
- Appointment of Scrutineers.
- Notice of Motion.
MOTION- "Having regard to the fact that
1. the Clubhouse Masterplan Precinct 1 project approved by the members in general meeting on the 20th November, 2021 was put to the members on the basis that the building works as shown on the plans before the meeting could be funded from funds then held by the Club, the estimated cost was $11.3M.
2. the Precinct 1 plans, the funding of which is now to be the subject of an EGM proposed to be held on 20 January 2024, are materially different to those approved on 20 November 2021. The EGM will seek member approval to borrow $7.0M.
3. this reduced scope project is now forecast to cost $23.8M, more than double the original estimate, and is proposed to be constructed in two stages with Stage 1 comprising about 75% of the now current plans.
4. Stage 1 costs are not presently known to the members, but are proposed to be met by way of $7M of bank debt, the sale of Club land in Stephens Parade, which land has been previously considered by the Club to be an integral part of the golf course, because of its proximity to the 9th Red/Blue tee, and the balance from retained Club funds.
5. the Committee proposes to sign a contract to build Stage 1 works forthwith if member approval to borrow is granted at the EGM.
6. a current low-range construction loan facility interest rate of 8% on $7M of borrowing translates to $560K a year in interest payments alone. The Club's retained profit as stated on the Club's website for 22/23 is $345K. This provokes misgivings about the Club's capacity to service the loan, and to repay the principal in a 7-8 year timeframe as indicated in the recent update to members.
7. the projected financial impost of the Stage 1 works will impact funding of other necessary capital works during the repayment period, noting that the course irrigation system needs to be replaced at a current projected cost of $2.5M.
8. the Committee has advised that Stage 2 will proceed subject to adequate funding being in place, after the completion of Stage 1 and repayment of debt incurred by those works. The relevant statutory permits would require all the Precinct 1 works to be completed within times prescribed by the permits, and should be amended to authorise Stage 1 works only.
Accordingly the Members, by this motion, instruct the Committee to:
a. pause the Precinct 1 project to enable a reduction of the extent of the building works so reducing the level of debt to be incurred by the Club, and
b. ensure the relevant statutory permits for the stage 1 works do not require the Club to complete the Stage 2 works"
At the request of at least 50 members pursuant to Rule 45 of the Rules.
A N Masters
General Manager
2 January 2024
