Dear Members,

In an effort to keep the Country Club of Detroit Membership better informed of relevant information and share Board thinking, we are adding four new messages to our annual communications schedule, called From the Boardroom. These messages will be delivered via email and archived on the Governance page of the Club’s website. →

SECURITY

► In response to five cars being stolen from the Club parking lots—two of which were recovered—General Manager Craig Cutler, at the Board’s request, hired Titan Group USA to assess CCD’s security and make recommendations for improvements and future investment.

► Key observations centered around the lack of control at our point of entry and a gatehouse was recommended.

► Some recommendations and initiatives will take longer to implement than others. Immediately, CCD will partner with the Grosse Pointe Security Foundation to install multiple cameras with license plate reader technology at the entrance to the Clubhouse, sharing this information with local law enforcement.

► Planning is ongoing regarding a Gate House at the Club entrance.

► As additional measures are adopted, they will be communicated to the Membership.

OPERATIONS

► The Club is reviewing documents from the City of Grosse Pointe Farms relating to our joint water initiative. This agreement exchanges easement privileges to the City, allowing storm water to be routed back to Lake St. Clair in exchange for improved infrastructure and long-term reduction and stability in pricing for our irrigation water.

► CCD has contracted Club Insights to administer both Member and Employee satisfaction surveys. Future initiatives will be referenced to receive your feedback.

FINANCE

► The Club finished 2024 in excellent shape. Our unaudited financial statements indicate a year-end profit of $75K on $17.2M in gross revenue.

► The year-end debt relating to Phase II projects is $1M, which will be paid off in April 2026, ending the monthly $100 Long-Range Planning fee.

► Our 2024 year-end bank cash balance is $1.7M.

► Our short-term investment account balance is $1.8M.

► Our long-term investment account balance is $1.7M. All of the Club’s investments are held in U.S. government-backed securities.

STRATEGIC PLANNING

► The Board met in January to review the Strategic Plan and take steps toward its execution. Three key initiatives were identified from the “Way Forward Project,” which has also been known as Phase III:

2025

Irrigation

2027

Practice Areas and Short Course

2029

Championship Course Greens

► The Board’s immediate concern is our aging irrigation system, which is at the end of its useful life and requires continuous investment to keep it operational. CCD has paid a deposit for work to commence in 2027. The Club will also construct a new pumphouse to increase the efficiency of the new irrigation system and take advantage of the increased flow of irrigation water resulting from our joint water project with the City of Grosse Pointe Farms.

► The irrigation project—the first of these three key initiatives—will be put to a vote of the Membership this coming October at the Annual Meeting.

► The costs associated with the Irrigation Project are considerable:

$750,000

Pump equipment and pumphouse

$4,700,000

Irrigation system and associated installation labor

► The plan to pay for these improvements involves using existing cash, earmarking future capital cash raised from the monthly capital fee, and Member assessment.

$1,750,000

From existing cash treasury

$1,500,000

From future capital earmarks

$2,200,000

Capital assessment

No future assessment will take place until after the current Long-Range Planning Fee is retired in April of 2026.

► The cost structure to the Membership is likely as follows:

Golf Members

$3,700 one-time payment or $165 monthly for 24 months

Social Members

$833 one-time payment or $75 monthly for 12 months

► The future projects listed above will be paid for in a similar manner and each will require a vote of the Membership.

CONCLUSION

We enter into the new year in a position of strength. Our membership is full, our cash reserves outweigh our debt, and we have strong alignment in the Board Room on the future direction of our Club. You can expect more communication in the coming weeks and months regarding the key initiatives listed above and our plans to move CCD forward together.