Member Consultation January 2017 UYC Club House Project Member Consultation January 2017 Presentation will start soon

Consultation & EGM IS; Update on Feasibility Study Consult on location, scale, design & fund raising. Obtain Members Support at EGM on 21st Jan to move to next stage of planning application, obtaining competitive tenders, arranging funds to complete the build. Layout next steps in process. NOT; Commitment to build. To refinance the club. These decisions would be considered at a further EGM.

Quick Review Desmond December 9th higher level than 2009 Flood Recovery Committee formed Changing rooms reinstated for Day 1 of season. Insurer withdraws flood cover. Reach cash settlement with Insurer Member Volunteers reinstate club room & kitchen (+move bar) Initiate feasibility of new club house as discussed at two members meetings, March & May.

What to do? New Build Feasibility team; Appointed. Building, PL, JI, JW, PB, CH, PL Funding, RB, JL, DL, CC, SS. Communication, SG, MM,PL Appointed. Architect; Crosby Granger- Kendal, experience; LDNP, Sports facilities, and flood plain projects Structural Engineer; Tweddle & Slater - Penrith Quantity Surveyor; Donleys - Carlisle Reviewed possible financial model This is conclusion of feasibility phase.

Build or not build? Pros Cons Not Build Unknown likelihood of future flooding Two unlikely floods in 7 years, impossible to predict next flood, risk of Clubhouse damage beyond repair. Keep insurance cash Undefined impact of new bridge at Pooley Refurb if flooded Undermines ability to finance new build. Unlikely to get same volunteer contribution Negative impact on recruitment and retention. Risk of damage to superstructure resulting in total loss. Build Flood insurance cover – reduced risk Longer term and higher financial burden Improved facilities and opportunities Short term disruption to site & programme More attractive to new members, retain more existing members

New Build Stakeholders Members needs Regulatory Finance Insurability Environment agency Planning Policy Local Opinion

Planners Feedback Very Supportive; Position as when last reviewed in 2009/10 High Quality Design is the key aspect (NOT a copy of the existing) Design consistent with its purpose Impact on its setting major consideration Materials not the key issue Existing club house must be demolished, but race box and storage sheds could be retained. Could consider use of Birkett Field during construction phase but not for development. Examples of good design; Given by Planners

Members Survey Ranking. 96 Responses Top 4 features / enhancements Larger changing rooms Covered Veranda Soft Dry Seating Area More Showers

Options Reviewed Location; 4 sites considered. Size 7 Options (5 costed) Construction methods/systems. Funding sources

Location? 3 4 2 1 Pros Cons 1 Existing Close to lake Vulnerable to storm Costly and unattractive temporary accommodation 2 Mound Above new flood line Good ground Distance from lake 3 Shore Need for piled foundations. Expensive ground floor redundant/ storage space OR flood resilient ground floor = More expense. 4 Half way Above new flood level Retain Race Box Half area raised floor. Location? 3 4 2 1

Size & Shape Options Size Currently 301m2 excluding race office and storage. Aspirational 487m2 Current + 380m2 15% larger + Sailing School Store Shape two storey More prominent, impact on landscape. Less space efficient, Flood resilient(?) if close to shore single storey Uses more land, redundant/ expensive space if close to shore.

Preferred Solution; Single Storey, half way to shore. 2015 flood level Preferred Solution; Single Storey, half way to shore. Features: Bigger changing rooms (m +22%, f+58%) More showers. Covered veranda Steps from lawn. Open view Outside covered seating/training. Members kitchen + Office. Accessibility Dividable main room (meeting/training) Includes store to replace container Reuse kitchen equipment (other fittings?)

Optimal Scheme Features: Changing rooms (m +22%, f+58%) More showers. Covered veranda Steps from lawn. Open view Outside covered seating/training. Members kitchen + Office. Accessibility Dividable main room (meeting/training) Includes store to replace container Reuse kitchen equipment (other fittings?)

Costs £ Build cost 809,000 £1954 m-2 (BCIS avg. £1850) Additional costs; upgrade sewage treatment, demolition of existing club, refurb racebox, 65,000 Fees 105,000 Assume 12%. Non recoverable VAT 127,000 Ratio VAT/Non VAT income Contingency 94,000 TOTAL 1,200,000 Concept design with input from Structural Engineer which was then costed by Quantity Surveyor

Funding Sources Grants Sponsorship Fund Raising Sports England Capital Grants currently depend on satisfying criteria for Multisport facilities Strong Community bias Three year process with no guarantee Impact on Club Ethos IFF Grant, £58K currently available if building completed by November 2017, investigating impact of delay in build Other sources – to be pursued Sponsorship To be pursued when scheme available Fund Raising New request for Members Loans free or interest earning; target to raise £100k towards total cost. Survey Buy a brick’ Auction of promises etc. – ideas from members needed asap Needs commitment of an enthusiastic and pro-active team to plan & co-ordinate events & realise target of £50K +

funding Available resources Insurance settlement £188 000 New Members loans/bonds £100,000 (minimum target based on survey) Cash reserves. £55,000 (leaves £63000 buffer) Shortfall £807,000 New 25yr refinancing loan £1,431,800 Bank loan, agreed in principle. Need more detailed design and cash flow. Covers ongoing repayment of existing member 2006 site purchase loans 25 yrs Maximum time, fixed rate of interest

Membership Fee Increase Will be reduced by successful fund raising Typical member 2018 2019 Single member + 1 Dinghy £22.54 £24.12 Family Member + 1 Dinghy £32.76 £35.05 Family Member + 1 Cruiser £44.52 £47.64 Excludes impact of any necessary inflationary increase. Includes storage fees. Excludes mooring fees, which will be inflation adjusted in 2018 (estimate 10%) to cover contractual rise in Dalemain Estate rent to Club Can be reduced by fund raising another £50,000 £14 for cruiser family £10 for dinghy family £7 for single dinghy.

Project Development & Management Responsibility for implementation rests with UYC Directors accountable to UYC members BUT need to Strengthen & Retain; Building, Funding & Communication teams for duration of project, reporting to above.

Financial plan 2014 2015 2016 2017 2018 2019 2020 2021 Sales & fees 314721 322295 323000 331000 337620 344372 351260 358285   (exc Gift) increased membership fees for new build 11942 23883 Cost of sales 179910 163047 171752 175187 178691 182265 185910 Gross Profit 134811 159248 174374 189565 192878 196258 Overheads 57207 57206 58350 59517 60707 61922 Mortgage interest 34067 32843 48720 Depreciation 13130 12138 34382 Operating profit (excluding gift) 30407 57061 32922 46945 49069 51235 Interest receivable 643 Profit on ordinary activities 57704 free cash flow 77604 102685 116024 130047 132171 134337 mortgage & loan repayments 58200 75210 92221 member loan repayment 10000 available for investment 9404 34485 17475 13804 27827 29950 32116 investment 38788 6698 cash at bank 96992 125825 312917 69917 Base assumption that underlying performance of 2015 can be built upon. 2016 too much impact from flood costs to make easy comparisons. Key for 2016 is cash in the bank £313k. Increase in income anticipated from 2016 growth in members. Conservative assumption that these offset by cost increases. No assumed benefit! Assume ongoing payback of existing members loans. New Build Fee increases staggered over two years. 18/19. Assume 2% inflation to costs recovered through further fee increase. Shows a continuing cash surplus for other investment.

Risks downside upside Status Quo Flood risk Time to raise funds Impact of further flood event on cash reserves and membership Money spent on clubhouse until new club built is sunk cost New Club House High level of debt financing Out of flood risk Change in loan rates prior to signing Attractive to new members Inflation impact on build costs Fund raising to reduce fee impact

Timescale Develop Design Detail Jan to mid April Planning application Mid April Planning permission obtained End June Produce detailed specification drawings End September Produce bill of quantities and tender End October Review final Tenders & Financing end 2017 EGM to approve Construction 6 months 2018.

EGM 21st January 2017 Proposal Seek member agreement for move to next phase required for new build Prepare and make planning application Obtain Competitive quotations from potential contractors and for professional fees Update refinancing requirements and confirm available bank loan offer Secure members’ new loan commitments Confirm targets and strategy for other fund raising Expenditure £56000 Further consultation stage with final design; Compromise but focussed on key facilities and priorities. Further EGM to approve: Financial Plan including construction cost, fees & subscription rises and new loan commitment Construction timetable with implications for site use and programme Proxies Very important that maximum membership involved and contribute. Need your input to the EGM proposal. Send proxy forms to treasurer@ullswateryachtclub.org Needs high level of member support >60%