Offshore Living

More CSC Considerations

Several CSC Concerns

Although there appears to be considerable support to date for the “Coronado Social Club” idea, there have been at least two concerns raised through feedback.

The following two concerns are somewhat related:

• That any CSC should be well coordinated with the present Coronado Expat "end of month" dinner event organized by Honey Dodge at the El Rincon restaurant.

• That the Coronado Country Club should remain fully informed of any CSC plans and activities/facilities.

In each case the concern expressed was that the CSC should not be seen to be competing, in any manner, with either of these two operations.

I completely agree. The activities discussed for a CSC would not and should not “replace or compete” with the monthly expat meetings or virtually any of the business facilities presently offered by the Coronado Country Club.

In the initial postings on this subject, a special effort was made to mention and applaud these two social opportunities in Coronado. They both offer a unique social opportunity to local residents, including expats, depending on the individual’s interests and budget.

In general, more is better than less when it comes to choice. Everyone has a unique social profile and aptitudes as well as a budget within which to live. Some people love to play golf, tennis or ride horses all day several times a week. Others don’t.

Some just like to sit and chat over a glass of wine. Some like to get actively involved in community activities. Others might enjoy browsing a well-stocked library or attending a special salsa night. The members would determine the social agenda and the type and nature of the facilities.

In contrast, the proposed CSC would never compete with activities such as an 18 hole golf course, night tennis, air-conditioned equestrian facilities, horse shows, an Olympic sized swimming pool, an ocean side infinity pool, a European Spa, several high end restaurants open 7 days a week, first class hotel suites, or golf chalets on the fairway. There might be a small pool at the CSC but not even remotely on the scale offered at the Coronado Golf Club.

My observation has been that if you just happen to miss an “expat night” because of bad planning, you are a bit tired or there is a rain storm, it might be two months before you see these acquaintances again. With a CSC, this particular aspect of the socializing problem might be resolved the following Friday.

With care, good planning, and some modest revenue generating activities to ensure a top facility, the annual cost of membership for a non-profit CSC could be very low and thus highly affordable to many.

Feedback is solicited.

Coronado Social Club Analysis

Coronado Social Club (CSC) Analysis

Preliminary CSC telephone and email feedback has been positive. It is probable, however, that a variety of objections and issues will be raised which is of course the desired outcome.

Here is a short list of some key questions that I feel require detailed comments and active input:   

1. What would be the most useful services offered by a CSC?
2. What is the critical mass of people required to initiate a CSC?
3. What would be the CSC membership conditions or restrictions if any?
4. What would be an acceptable annual fee structure if the clubhouse were rented?
5. What are the probable and/or acceptable costs and financing options available to purchase/build a clubhouse?
6. What would be the ideal location for such a facility in the Coronado area?

Here are some of my early views on these items:

1. What would be the most useful services offered by a CSC?

• A comfortable and relaxing “drop-in center” or “local” where one can easily make new friends and renew acquaintances.
• A central spot for members to enjoy social activities such as special events and dinners, BBQs, dances, “live” entertainment, private parties, “happy hour”, or whatever etc.
• A swimming pool, well equipped exercise room, and related fitness activities
• A library with eventually thousands of books, DVD videos, current magazines etc.
• A wide screen TV area with surround sound and a full range of cable stations
• A billiard and/or card room .
• A space suitable for seminars, workshops, Spanish lessons, association meetings, club activities and the like. .
• An internet café with high speed DSL computers and Skype connectivity with top quality espresso coffee available from around the world.

2. What is the critical mass of people required to initiate a CSC?

I think that even 15-20 interested people could get this idea rolling into a more serious planning phase. Perhaps at the outset it would involve rotating weekly or bi-weekly meetings at local restaurants such as El Rincon or at the homes of interested parties. These meetings could explore options and develop the CSC plans to expand the size of the group.

3. What would be the CSC membership conditions or restrictions if any?

In my view, there should be very few restrictions on membership. In particular, the CSC should not be perceived of as an “expat only” club. In fact, I would suggest that we strongly encourage the participation of Panamanians to provide this balance. On the other hand, existing members could probably lose their access privileges if they do not pay their assessed dues and/or if they consistently misuse the facilities at the expense of others etc. There would probably have to be a membership committee that deals with such issues.

It might make a great deal of sense to offer various types of membership ranging from a “guest membership” for one day to a monthly “membership”. This permits more exposure for the club and raises additional revenue.

Some people may wish to purchase a “trial membership” to see if the CSC is really worth it or if they actually use the facilities. Value for dollar should be the basis for long term membership.

4. What would be an acceptable annual fee structure if the clubhouse were rented?

• There are probably satisfactory CSC properties in and around the Coronado area that could be leased for as little as $1000 per month. A larger substantial property    might be available for $1500 per month on a one year basis.  A very substantial “clubhouse” might be available for lease for $2500 per month. This larger grander approach might be the best strategy depending on the size and nature of the membership.

• This amount of course is not the only running cost but it is the basic minimum needed. The additional minimal expected costs for utilities, staff, insurance etc. would be in the $500 per month area. With 100 members, the worst case monthly cost might be in the range of $15 to $20 before any revenue generation or about $200 per member per annum.

• With several special revenue producing activities, it is highly probable that the annual cost per member could drop to $50 to $100 per annum. The larger the CSC membership, the lower the per member cost because of high fixed costs.

5. What are the probable and/or acceptable costs and financing options available to purchase/build a clubhouse?

• This is a difficult question but could well become the most interesting long-term option given the appropriate membership. An interesting and adequate clubhouse, in terms of size and location, could probably be purchased or constructed and expanded for as little as $200,000 although this is at the low price end in my opinion. The high end might be $400,000 unless ocean front property is the desired location.

• The clubhouse could be expanded in logical stages and phases as membership and revenues increase.

• Incidentally the CSC would most likely incorporate as a “non-profit” organization for tax purposes and full members would become “shareholders”. It may not be necessary to raise all of the money to purchase the buildings at the outset. A long term mortgage for as much as 50% of the final constructed value might be available from institutional or private lenders, particularly if the property is carefully designed for possible alternative use were the club to ever fail.

• If the club was to fail and the property and assets sold, the shareholders of record would simply divvy up the net proceeds.

6. What would be the ideal location for such a facility in the Coronado area?

• I think that a location outside the security gates and closer to the Reys grocery store might be much better than inside Coronado. Such a location could be easily accessed by non-Coronado based residents. If an ocean front location is desired than some other options would have to be examined. Ease of access would be a primary consideration to appeal to the maximum number of potential members from the neighboring communities such as El Valle, Altos Del Maria, Gorgona, San Carlos etc.   

Coronado Social Club

A Idea for Consideration

Here is an idea that I believe has some potential particularly in an area such as Coronado Panama but it applies equally well to many other smaller towns and resort areas in Panama and perhaps even in Panama City. 

For the sake of simplicity, I will refer to it as the "Coronado Social Club" idea and develop it in the context of Coronado because I know and understand that community best.

The Benefits of an Expat Life in Coronado

As an "expat" living in or around Coronado you can enjoy many advantages in terms of low monthly costs compared to "up north", easy access to first class medical services, wonderful weather year round, a beautiful Pacific Ocean beach (e.g. Playa Serena), fresh fruit and vegetables every day, and very friendly people. 

You can even join the Coronado Golf and Country Club featuring a lush PGA golf course, night tennis and impressive equestrian facilities not to mention four excellent restaurants, a spa and several swimming pools. Your annual cost for full membership can be as low as $1800 if you are a "pensionado". If you do not golf, play tennis or ride then this expense may be questionable. It is also possible that fees increase significantly and the membership list becomes "full".   

The Coronado Country Club offers some of this ambience but it is primarily a business with a hotel guest clientele. Most of the guests stay for a week and often just for the weekend and they move on.

The Missing Thing

The only thing "missing" becomes a place to "hang out" with friends. A place where you can make new friends on a regular basis. A place to relax and enjoy social events on a regular basis.

In one respect, some of these desired "social activities" obviously occur when you invite your friends over for a dinner or when you just "drop by" for a casual visit. But there are certain limitations to this approach. Not everyone wishes to have friends drop in unannounced on a frequent basis. The dynamics of preparing a dinner primarily for socializing purposes can become a bit too much effort (particularly for the chef) and one tends to procrastinate. If you just want to sit around, relax and chat over a glass of wine, then all the work to prepare a dinner or brunch seems somehow counterproductive.

Neither does this approach serve to expand your circle of friends ... if that happens to be of any interest.

An Old Concept

The concept of a "social club" is very old. I remember growing up in several towns in southern  Ontario with an "Italian Club", a "Cercle de Francais", a "Teutonia Club", a "Polish Club" etc etc.  Some of these clubhouses were very impressive and occupied prime real estate. They all seemed to do a booming business by filling a perceived need. They were all "non-profit" organizations and any one could join. If you did not happen to speak Italian, however, that would be your problem. The newsletter in Polish might also be problem but you could still join the club.

Coronado Social Club members would typically have a permanent home in Coronado itself or in a neighboring community.   

Expat Monthly Dinners in Coronado

In Coronado, a very successful idea was recently launched by Honey Dodge (living in Altos Del Maria). In early 2005, she organized the first monthly "Expat Nite" including a catered dinner at an excellent local Coronado restaurant "El Rincon" for easy socializing. As many as 140 people have shown up for some of these events in high season.

They provide a wonderful opportunity to make new friends and to maintain existing acquaintences. There is no restriction on who can attend. A similar monthly event is organized in Panama City with presumably larger numbers of attendees. In recent months, it appears that additional events are being scheduled for the Coronado group from a special fashion show to dining at a new restaurant in the San Carlos area. Such events are excellent for expanding your network of friends.

How would a "Coronado Social Club" (CSC) Operate?

Here are some initial ideas:

1. The CSC would have a permanent location that is ideally owned by its members but could initially be leased to determine whether there is sufficient interest and available revenues.

2. The club facility would be "open" as desired by the members ... probably with longer hours in the high season.

3. The cost to become a "CSC Member" could be very modest in comparison to say the annual $1800 charge at the Coronado Country Club available only with a "pensionado discount". Also, only Coronado residents are exempt from the normal $10,000 "initiation fee" at the Coronado Country Club which limits membership somewhat more to avid golfers and equestrian types. 

4. A CSC would provide a gathering spot for members (Expats and Panamanians) to chat, have a drink, meet new members, dance, use the swimming pool, work out, surf the web at the internet cafe, make a Skype call abroad, watch a wide screen sports event, attend special "movie nights", take in a specialized workshop or seminar, sign up for a watercolor club or yoga classes, play billiards, take Spanish or computer lessons, or simply attend the regular social events from BBQs to birthday parties.

5. Once the "need for" and potential "advantages of" such a CSC are clear ... if in fact this is the case ... then the next issue becomes the initial cost and on-going financing involved. Of course it depends on how many people are interested. The start-up and annual costs for 50 members are very different than for 250 members. There are also many possibilites for on-going revenue generation from members and their guests.

6. There are several ways to "get started" once there exists a critical mass of interested people ... as few as 15-25 would work in my opinion. The most conservative would be to rent an appropriate property that already has most of the facilities desired such as large shaded terraces, a swimming pool, a meeting area, outdoor kitchen facilities, gazebos etc.

7. Once the group expands to the 100+ range, it may be advantageous to consider purchasing and developing a customized property with clubhouse but it is not a necessity.

8. The bottom line is that such a club could potentially provide a very interesting dimension to living in Coronado (or wherever) at a very reasonable cost to each member ... compared to the alternative which in many respects is not available. On a rental basis, given some care and with modest revenue generating events, my estimate is that it might cost at most $30 per month for 50 members.  With 100 members, the operation might be "self-financing".

9. On a purchase basis, once there are sufficient members, it would probably be necessary to set up a corporation and sell "shares" for perhaps $1000 each.  These shares could always be resold to new members at a later date so they are essentially a "loan" to the CSC permitting the purchase of land and a clubhouse. There would probably still be a small annual membership fee ... possibly $50-$100 .... depending on the success of the "special events", the maintenance costs etc.      

10. This "concept" of course could be adapted wherever and there is nothing special about Coronado in this respect. However, I would enjoy feedback on this concept from people in the Coronado area or any others with a view and/or experience.

      

Building a House in Panama

After that big decision of best country for offshore retirement, the next issue of importance is "housing". The cost of housing often drives the decision of where precisely you choose to live.   

Of course, you can rent for a while or forever for that matter. Renting is often a prudent course of action for at least 6 months thereafter most retirees prefer to "put down roots" in a community and that means buying or building a house.

If you purchase a house, the original owner's lifestyle will be imposed on you to a certain degree unless you make significant architectural changes. If you purchase raw land and build then you have maximum freedom to express your own personality and lifestyle requirements. In a country such as Panama, it may often be advantageous to build from scratch.

The next decision is whether you should hire out the entire construction project or become actively involved in it. The advantages of project managing your own house construction can be substantial.

Using Panama as an example, a General Contractor will charge in the USD$55 to $65+ range per square foot. In contrast, I have been able to build at the $20-25 PSF range per enclosed square foot. On an average 1500 enclosed square foot home (with considerable additional outdoor terrace and patio areas) this might mean a savings of more than $50,000. This money could have been used to build a larger and higher quality home, a larger lot or a better location.

Keep in mind that even if you decide to engage a General Contractor on a fixed price basis, you will still have to supervise his progress and stay closely involved. You will have to be around to make progress payments and to constantly ensure yourself that the quality of the construction meets the agreed standards.

There are also the inevitable "change orders" that will be required.  Every "change order" serves to re-open the original fixed price contract. Depending on the General Contractor, this may or may not be a stressful experience. 

My suggestion is that you act as your own General Contractor if at all possible even if you are not proficient in the local language. This will be a great way to learn it.  Engage a small team of skilled construction workers (perhaps 6 or 8) with a diverse set of talents (which is more typical in a developing country than in a developed one). Pay these workers on a daily basis (about $20 per day for Panama) with a small bonus based on work accomplished.

Only engage specific subtrades for plumbing and electrical work as required. Contract with them on a fixed price basis subject to at least one or two competitive bids.

Negotiate a discount price with a major supplier of building materials, in advance, and make sure you never run out of materials.  Simple.  More later ....