People moving to Florida at the time of retirement, in anticipation of retirement or just to enjoy the fabulous weather in Naples, are interested in selecting a country club lifestyle that will satisfy their particular needs. Clearly, this is an important decision, not only because of financial factors but also because of the potential to develop new relationships, participate in recreational activities and enjoy all of the services a private country club has to offer. For many, the country club becomes the focus of their social life for years to come. In season, our members enjoy dining at Quail Creek Country Club six nights a week.

There is a great deal of variety in the quality, size and scope of private country clubs in the Naples area. Selecting a club is a complex matter that deserves a great deal of careful consideration about club control, present and future costs and other legal considerations. With that in mind, we have provided you with the most frequently asked questions. If you have further questions, please do not hesitate to call Joan Bilson, Quail Creek Country Club Membership Director at (239) 597 - 2831.

GENERAL FACTORS
Q. What type of club is Quail Creek Country Club?
Q. When my family visits, how are privileges at the club handled?
Q. Does full service mean more members and crowded conditions?
Q. What are the typical ages of Quail Creek Country Club Members?
Q. How can I learn about Quail Creek Members and their activities?
Q. What is the best location for a country club in Naples?

CLUBS OWNED BY DEVELOPERS
Q. How long do country club developers typically retain control?
Q. What happens upon ownership transfer from the developer?
Q. Is it more desirable to join a mature club like Quail Creek?

FINANCIAL STRENGTH
Q. Tell me more about equity memberships at country clubs.
Q. Why the variance in membership fees & equity plans at clubs?
Q. What should I know about reserves for capital replacements?
Q. How soon is the pay out when resigning from a country club?
Q. Is membership turnover an asset?

MEMBERSHIP ARRANGEMENTS
Q. What are the types of memberships offered in the Naples area?

MEMBERSHIP SATISFACTION
Q. The satisfaction level of a country club's membership is an excellent gauge of separating advertising hype from reality. How do I find out what the current membership really thinks about a club?



Q.What type of club is Quail Creek Country Club?
A. Quail Creek is a full-service private country club with outstanding golf, tennis, fitness, spa and dining facilities plus active and diversified social programs. We are a welcoming club, with the reputation of being an extremely friendly club. A warm smile and a pleasant hello are hallmarks of our members and staff. Hospitality and friendship are never in short supply at Quail Creek! Our members are very active in their club and eagerly participate in a wide variety of activities and events.


Q. When my family visits, how are privileges at the club handled?
A. Being a family-oriented club, Quail Creek offers special rates for directly related guests (fathers, mothers, sisters, brothers, children and grandchildren). If you cannot be here during your family's visit, you can call and have a guest pass issued to your family members. They would have use of the Club as if it were their own; however, in season we ask that you please accompany your guests when playing golf. Otherwise, they have full and open use of the Club's other amenities.


Q. Does full service mean more members and crowded conditions?
A. When selecting a country club, the key ratio to consider is the number of members per hole of golf. If a 36-hole club has 580 golf members (16 per hole) and an 18-hole club has 340 (19 per hole), the smaller club will have the greater density. A larger membership also provides a better base for bearing the cost of top quality facilities and services, as well as providing highly qualified management. It is important to note that in a club controlled by the members, such as Quail Creek, the number of members may only be changed with the approval of the membership.


Q. What are the typical ages of Quail Creek Country Club Members?
A. Quail Creek has a diverse mix of ages ranging from the 30's to the 80's.


Q. How can I learn about Quail Creek Members and their activities?
A. You can certainly request information on where members have come from (e.g. by state), but one of the best inside looks at any club lies in its newsletters. You should ask for several issues of the Club's newsletter (The Quail Trails) to scan at your leisure. Obviously, if you have friends who are members, talk to them in depth – especially about the Club's overall reputation in the community.


Q. What is the best location for a country club in Naples?
A. Only you can answer this one. If you prefer to live within a country club development, you certainly can do so. If you prefer to choose a home or condominium near the Gulf or elsewhere, you must select a club where on-site residency is not a requirement (such as Quail Creek) and you will probably want to be no more than a thirty-minute drive away. In either case, you have a wide range of opportunity, as there are more golf courses per capita in Collier County than almost any other place in the country. Another point when considering country club location in Naples would be to establish how close it is to the Ft. Myers airport, to I-75 and other major thoroughfares. Noise from these sources can be an annoying distraction – especially in the busy season.


CLUBS OWNED BY DEVELOPERS

Q. How long do country club developers typically retain control?
A. Sometimes only a few years . . . sometimes much longer - particularly if lot sales lag behind anticipated timetables. Generally the developer sets a target number of memberships that must be sold before the turnover of ownership to members. Until that time, it is important to remember that the club is in bottom-line control by the developer, including the terms of the transfer of ownership. In today's uncertain economic environment, some developers have faced difficult times, putting the members investment at risk.


Q. What happens upon ownership transfer from the developer?
A. Upon ownership transfer from the developer, the members accept financial and legal responsibility of the entire club according to the developer's terms (unless modified through negotiations before the transfer). Many clubs have a difficult time managing this transition successfully, because the strategies that served the developer's purposes are probably not appropriate for the long-term benefit of the club and its members. Significant changes in club financial management, bylaws, dues, rules, etc. are almost always necessary.


Q. Is it more desirable to join a mature club like Quail Creek?
A. Clearly, clubs whose members have already weathered the challenging transition process and established effective member control, offers a more stable and predictable situation. Even though change is as much a part of club operations as in life in general, those considering membership should be able to concentrate on enjoyment of the club facilities and programs and not on financial uncertainty.


FINANCIAL STRENGTH
Because we are usually at or near full membership, Quail Creek Country Club has the financial strength to operate a truly premier private country club in Naples. In addition, due to our fiscally responsible Board of Directors, we are proud to have zero debt at Quail Creek. The club has been member owned since 1984 and is run by the members for the members.



Q. Tell me more about equity memberships at country clubs.
A. Generally speaking, "equity" refers to that portion of the initiation fee at a country club, which is returnable to you when you resign. Here are several examples of variations of equity memberships currently offered at country clubs in Naples:

• 100% Equity - Member receives full refund of the exact amount paid in.
• 50% Prevailing* - Member receives 50% of the fee in effect when the membership is sold to a successor member. This can be more or less than the resigning member paid in.
• 50% Fixed - Member receives 50% of the amount paid in - fixed.
• $10,000 Fixed - Members receives amount of payout arbitrarily fixed, regardless of any changes in initiation fees since the resigned member(s) joined.

Currently, there are no member-controlled quality country clubs in the Naples area, which offer 100% equity. It is simply not viable in the long term.


Q. Why the variance in membership fees & equity plans at clubs?
A. Established, member-controlled clubs generally use conservative formulas that are accurate reflections of their actual ongoing needs. Developers tend to use various forms of membership fees and nominally high equity formulas to enhance cash flow while they strive to sell out their projects; however, high equity means very little if there is no assurance as to when it will be paid out. It is also a fact that such special arrangements are generally discontinued as soon as lot sales and full membership sales will allow.


Q. What should I know about reserves for capital replacements?
A. For member-owned clubs across the USA, the income from membership turnover is vital for funding reserves for long-term capital replacements (such as roofs, parking lots, air conditioning, etc.). Developers leave the scene when the club is turned over to the members, so they are often not concerned about creating and maintaining such reserves.


Q. How soon is the pay out when resigning from a country club?
A. For all country clubs, equity is paid back by the club, but only as the transfer agent, with the cash provided by a new member. In a mature, member-owned club with full membership, the transfer is simply a matter of processing the turnover; however, in a developer owned club, the general practice is to retire the sale of any unsold developer memberships before resales are processed. This could be months, years or never, if the development should fail.


Q. Is membership turnover an asset?
A. Particularly in retirement areas like Naples, age alone makes membership turnover a fact of life. A mature, member-controlled club learns how to cope with this situation and how to maintain a waiting list. Since most clubs require that resigning members pay dues for a period of time, expeditious handling of turnover has distinct financial advantages in this respect as well as in equity payout.


MEMBERSHIP ARRANGEMENTS

Q. What are the types of memberships offered in the Naples area?
A. There are many types, the most common are:

• Equity* - Members own a share of the club.
• Non-equity - Members do not own a share of the club.
• Interim - Members have use of the club under limited conditions - no ownership.
• Annual - Members have use of the club for one year at a time - no ownership.
• Daily fees - Non-members are allowed to use club on a onetime basis.

MEMBERSHIP SATISFACTION

Q. The satisfaction level of the membership is an excellent gauge of separating advertising hype from reality. How do I find out what the membership thinks about a club?
A. It's simple. Ask to see the results of recent club membership surveys.

SUMMARY

• Member-owned clubs operate with a Board of Directors elected by the members and dedicated to serving the long-term interests of the membership.
• Developer-controlled clubs generally have two objectives: (1) to sell out the development at a profit and (2) turn it over to members and move on to another project.
• Until turnover, the developer has unilateral control over all matters concerning initiation fees, dues, bylaws, etc.
• While most developers are ethical business people, their projects generally require years to sell out, with no absolute assurance of success guaranteed.
• Tempting promotional concepts offered by developers should be weighed against the stability of mature, member-owned and controlled clubs.
• Insist on being able to review the entire membership agreement, bylaws and other related documents at your leisure. Read them carefully before you making a decision on the best country club for you.