Spring Creek Golf Club

First Annual Membership Meeting

Date: Thursday, December 4, 2008

Time: 6:00 – 7:30pm

Location: Spring Creek Sports Club

Facilitators: Chuck Kincannon, Developer and Owner of Spring Creek

Jack Snyder, Director of Golf; PGA Master Professional

Brian Vincel, GCSAA Certified Golf Course Superintendent

Chuck began the meeting by thanking all in attendance and everyone who is supporting the Spring Creek Golf Club. The patronage and praise of the facility by its membership has helped to show Chuck that the course is a great investment that will help to develop the surrounding community. He then gave the membership information concerning the golf facility as well as the land development. He stated his pride in the operation and those who are running it. Chuck is please with the performance of the golf operation, but with the current uncertain economic climate we are going to have to make some financial sacrifices.

Jack began his presentation by thanking all of the staff working at Spring Creek. Kevin, Alison, John, and Kathy in the pro shop and Paul, Ronnie, Jim, Steve, Travis, and others in the outside services are all vital assets that ensure that the golf operation runs smoothly. Brian, Trevor, J.D. and the entire maintenance crew have provided the finest course conditions for everyone to play and their professionalism is top-shelf. Brad, Kent, Linda, and Spencer run the food operation and give the membership a valuable food and beverage alternative and Donna and Christy keep all of the golfers refreshed while on the course with their beverage cart expertise.

Jack presented our current financial position relative to projected cash flow models. We have been operating according to plan and even with our anticipated loss this year we are on track to perform within our guidelines. However, when these plans were drawn up, the land value was projected to increase with time and further land development. Those involved with the projections had no way to predict that our current economic conditions would materialize and affect the housing market so drastically. As a result of our financial position we are going to have to make some changes to the 2009 budget. Staffing will be reduced and some of the luxuries provided will be examined in order to cut expenses. The objective is to keep customer service at our current level and offer some new opportunities to make membership more attractive, while at the same time reducing expenses when it is at all possible.

We will be offering a membership incentive program to you, the membership, in January. The final details are being considered by management and will be given to you in writing. We will be asking you to find perspective members and allow us to showcase to them what we have to offer here at Spring Creek. Again, please read the information when it arrives at your home and help us to grow the club. Membership is the lifeblood of any club and we are no exception. In order to continue to grow and improve as a club we need to increase our number of memberships to share in the operating expenses. This way we can become less reliant on public play dollars and be able to even better service our membership.

Members will be allowed to pay their monthly dues for 2009 up-front in January and realize a $200 savings. By doing this you will be paying this year’s dues without the $25 dues increase that will be coming in May 2009. In turn you will be helping us to capture needed income early in the year to fund operations.

We will be hosting the Tarheel Tour Championship again next year in the fall, an AJGA Junior Tour event in July, and the VSGA Mid-Amateur Championship in October. All public-sponsored outings will be evaluated and if they are not financially productive to the operation we will not book them. Our average daily revenue was a little over $7,500 during the regular season in 2008 and to close the course without a guarantee of achieving the same or better revenue is not a wise business decision.

We will utilize the members’ practice area on the grass tee as much as the turf will allow. That proved to be not only popular, but also an added member benefit. Brian and Jack are also looking at the current range set-up in order to find alternative patterns to capture more grass hitting area for the membership.

Next to present was Brian Vincel. Brian also thanked everyone in attendance and all those who support the club that could not be present. Brain recognizes that without the membership and their guests the Spring Creek Golf Course would not be possible. He takes great pride in the course and its condition relative to all of our competitors. While he and his crew will also be facing expense cuts next year his objective is to maintain excellent turf conditions. Sacrifice will be made in areas that are time consuming and less relevant to course conditions. Items like cart path trimming and bunker edging are a few examples of tasks that will be reduced due to budget constraints. Compared to the regular season, Brain will be operating with 10 fewer workers throughout the winter months. While course conditions do not warrant a full crew, projects such as clearing the tree-lined areas and other miscellaneous winter projects will be affected.

We are all reacting to the economic pressures being placed before us. Chuck has subsidized the golf operation with over $1 million in funding over the past two years. Our objective is to streamline expenses while optimizing revenues so that the club can financially support itself. Chuck is not looking for the golf course to repay the $11 million he has spent in creating this fabulous golf course. Lot sales in the community will pay off the golf course construction costs over time.

Chuck is waiting to realize growth in the development before he can act on building a golf clubhouse that will cost between 3.5 million and six million dollars. His hope is to be able to begin construction three or four years from now.

Again, the managerial staff would like to thank you for your patronage and support of Spring Creek Golf Club. We ask for your help in finding new members and a proposal will be forthcoming. If you have any suggestions as to how we might capture more business in the coming year please share those ideas with us. We wish you all a safe and happy holiday season and look forward to a prosperous 2009 season.