Laserfiche WebLink
Industry` rules of thumb' that were disregarded. <br /> Greens fees need to be $10.00 for every $1,000,000 spent on course <br /> construction. (See attachment) <br /> Using this number, greens fees would have had to been $25.00 to $30.00 <br /> to make a profit on what was bonded. Fees set in 1995 were $7.00 <br /> weekday to $8.00 weekend. <br /> Net operating income is 20% of gross income. (See attachment) <br /> This 20% pays for mortgage, interest, taxes, and capitalization. Using this <br /> number on the projections made for 1999 by EGCS you would have only <br /> $100,000 to pay for the listed items. Our payments for these items are <br /> over $300,000 and escalating each year. <br /> Comments: <br /> Taking into account the actual from the misleading <br /> assumptions makes a difference of at least $250,000 per year. <br /> Using the original projections could have resulted in a debt of <br /> at least $1,000,000, plus lawsuit expenses. Those losses <br /> have been offset for the most part by unique operational <br /> techniques which have increased revenues in unforseen areas. <br />