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.