WELLMAN LAKE CABIN UPDATE Mar 2019
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- Clement Austin
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1 WELLMAN LAKE CABIN UPDATE Mar 2019
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3 How We Got Here. Cabin was built by MFFA in the 1970 s Over time some remedial work was done through volunteer effort. In the early 2000 s additional work was identified but consensus about how to pay for it wasn t achieved. Today, the Cabin needs ~$12,000 (minimum) worth of work just to preserve the value (the work is both structural as well as cosmetic; the Executive have decided that, for safety reasons, the work will be done by professionals).
4 How We Got Here.(cont d) Sale of the Cabin may trigger Capital Gains.something that is being investigated. Asset sales require 60% approval by the Membership The Cabin has seen a reduction in users in the past 5 years. There was no interest in the previous Exclusive use lottery in the last several years. The current Executive have been discussing this since September we now need to move forward!
5 Member Input Sell the cabin and use the funds for auction items such as fly in trips.. Sell the cabin and use the money to subsidize an Executive sanctioned Club outing.. Too many memberships are being sold, nothing left for nightly rentals... Add a proper bathroom.. Repairs will add no value to the cabin, we are spending just to maintain the value. If we end up selling, the money is wasted.. Sell the cabin, buy a lake and stock it..
6 Member Input (con d) Use the cabin as is until it becomes unusable.. The Cabin used to be the go to place for Trout fishing, but not anymore.. See if other groups want a piece and we can share the expenses... The Cabin is where I learned to Fly Fish.. Sell the cabin and put the money in a Trust Fund..
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24 MFFA Income 2019 (Estimated) Memberships Fees $5000-$5500 Banquet $2000 $7000 MFFA Expenses 2019 (Estimated) Riverview Hall plus Storage $1800 Insurance (liability only) $1300 Others (outings, fly tying, newsletter, etc.) $2400 $5500
25 Annual Cabin Costs (2018) Insurance $ Park Fees $ Utilities $ Total $
26 Est. Annual Cabin Costs (2019) Insurance $ Park Fees $ (may increase in 2019) Loan (?) $ (assume $100/month) Reserve Fund $ (for future Cabin expenses) Utilities $ Total $ (55% of our Revenues)
27 Summary Income $7,000 Expenses ($5,500) Cabin ($3,900) Deficit ($2,400)
28 Summary Income $7,000 Expenses ($5,500) Cabin ($3,900) Deficit ($2,400)
29 Summary Income $7,000 Expenses ($5,500) Cabin ($3,900) Deficit ($2,400)
30 Summary Income $7,000 Expenses ($5,500) Cabin ($3,900) Deficit ($2,400)
31 Cabin Costs Year. Insurance Park Fees. Utilities. Gen Expenses. Income & Repair foundation repair Total cost of $25, expenses for 12 years
32 Cabin Costs Year. Insurance Park Fees. Utilities. Gen Expenses. Income & Repair foundation repair Total cost of $22, expenses for 12 years
33 Wellman Cabin Usage Total 634 avg/year 63.4 avg/year (last 5) 45.6
34 Cost per User Night (past 10 years) ~$ ~$ ** ~$87 ** based on the $3900/year annual projected Cabin cost and the past 5 year usage average
35 Cost per User Night (past 5 years) ~$ ~$ ** ~$87 ** based on the $3900/year annual projected Cabin cost and the past 5 year usage average
36 Cost per User Night (2019) ~$ ~$ ** ~$87 ** based on the $3900/year annual projected Cabin cost and the past 5 year usage average
37 Cost per User Night ~$ ~$ ** ~$87 ** based on the $3900/year annual projected Cabin cost and the past 5 year usage average
38 Proposed Wellman Lake Cabin Plan The Plan is an attempt to fund the bulk of the Cabin costs as well as set aside ongoing funding for the future so our current problem isn t a recurring one. Importantly, the Plan will gauge the level of interest that MFFA Members have for continuing to own and fund the cabin. Without an additional source of income the MFFA will be out of funds in a few years!
39 On the back of your 2018 Membership card, we list the Wellman Cabin available from May 1 to the middle of October; roughly 170 days.again, roughly 85 Prime time days and 85 non prime time days
40 The proposal is to sell a maximum of 10 annual Cabin Memberships at a cost of $300 per Membership. A Membership will be offered in the April Banquet auction (this membership will allow the first pick in the lottery). Each Cabin Membership will be granted 7 Prime time and 8 non prime time days for a total of 15 days ($20 per day for exclusive cabin use!). The dates of the cabin use will be drawn (weeks, individual days, multiple days; agreed upon by the Cabin Members), annually. Prime time will be defined as mid May to mid June, and all of Sept to mid Oct; roughly 70 days). Non prime fishing dates will be all other days.
41 The proposal is to sell a maximum of 10 annual Cabin Memberships at a cost of $300 per Membership. A Membership will likely be offered in the April Banquet auction (this membership will allow the first pick in the lottery). Each Cabin Membership will be granted 7 Prime time and 8 non prime time days for a total of 15 days ($20 per day for exclusive cabin use!). The dates of the cabin use will be drawn (weeks, individual days, multiple days; agreed upon by the Cabin Members), annually. Prime time will be defined as mid May to mid June, and all of Sept to mid Oct; roughly 70 days). Non prime fishing dates will be all other days.
42 The proposal is to sell a maximum of 10 annual Cabin Memberships at a cost of $300 per Membership. A Membership will likely be offered in the April Banquet auction (this membership will allow the first pick in the lottery). Each Cabin Membership will be granted 7 Prime time and 8 non prime time days for a total of 15 days ($20 per day for exclusive cabin use!). The dates of the cabin use will be drafted (weeks, individual days, multiple days; agreed upon by the Cabin Members), annually. Prime time will be defined as mid May to mid June, and all of Sept to mid Oct; roughly 70 days). Non prime fishing dates will be all other days.
43 The proposal is to sell a maximum of 10 annual Cabin Memberships at a cost of $300 per Membership. A Membership will likely be offered in the April Banquet auction (this membership will allow the first pick in the lottery). Each Cabin Membership will be granted 7 Prime time and 8 non prime time days for a total of 15 days ($20 per day for exclusive cabin use!). The dates of the cabin use will be drawn (weeks, individual days, multiple days; agreed upon by the Cabin Members), annually. Prime time will be defined as mid May to mid June, and all of Sept to mid Oct; roughly 70 days). Non prime fishing dates will be all other days.
44 The proposal is to sell a maximum of 10 annual Cabin Memberships at a cost of $300 per Membership. A Membership will likely be offered in the April Banquet auction (this membership will allow the first pick in the lottery). Each Cabin Membership will be granted 7 Prime time and 8 non prime time days for a total of 15 days ($20 per day for exclusive cabin use!). The dates of the cabin use will be drawn (weeks, individual days, multiple days; agreed upon by the Cabin Members), annually. Prime time will be defined as mid May to mid June, and all of Sept to mid Oct; roughly 70 days). Non prime fishing dates will be all other days.
45 If after the Cabin Membership days are selected, any full weeks which remain available will be sold at $200 per week for exclusive cabin use. Remaining days will be available at $30 per night (prime time) and $20 per night (non prime time), per bed. Note: The repairs to the Cabin will be scheduled during non prime time fishing days. (If a Cabin Membership holder has these days, they will be compensated).
46 If after the Cabin Membership days are selected, any full weeks which remain available will be sold as $200 per week for exclusive cabin use. Remaining days will be available at $30 per night (prime time) and $20 per night (non prime time), per bed. Note: The repairs to the Cabin will be scheduled during non prime time fishing days. (If a Cabin Membership holder has these days, they will be compensated).
47 If after the Cabin Membership days are selected, any full weeks which remain available will be sold as $200 per week for exclusive cabin use. Remaining days will be available at $30 per night (prime time) and $20 per night (non prime time), per bed. Note: The repairs to the Cabin will be scheduled during non prime time fishing days. (If a Cabin Membership holder has these days, they will be compensated).
48 THE LOTTERY
49 Round # 1 The auction winner will select 3 prime time days; days must be contiguous such that the booking calendar doesn't become fragmented. Lottery winners #2 through #X will then pick 3 contiguous days until all have selected.
50 Round # 2 The auction winner would select an additional 3 prime time contiguous days followed by all the other lottery winners in the same order as in Round #1.
51 Round # 3 The auction winner would select their final prime time day, followed by all the other lottery winners in the same order as in Round #1. At this point all will have their allotted 7 prime time days. Leftover days will go into the MFFA online booking system at $30 per bed per night.
52 Round # 4 The auction winner would select a non prime time block of "X" days, followed by all the other lottery winners in the same order as in Round #1.
53 Round # 5 to Round X Depends on the way the non prime time days are set aside in Round #4. At this point any leftover days will go into the MFFA booking system at $20 per bed per night
54 Next Steps 1) Secure the funding. 2) We have 4 Members who have indicated they will participate in the Cabin Membership idea, we require up to 6 more before the end of April. 3) A volunteer to run the draft and manage the Plan.
55 This will be an annual event until the loan has been retired
56 but the reality is if there is ongoing lack of interest in the Wellman Cabin, it will have to be sold.
57 Questions?
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59 Tax Opinions
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