Granite Pointe Development Plans FAQ: August 9, 2024
Granite Pointe Golf and Recreation Society “GPGRS”
Crestone Properties, Farhad, and related applicable private corporations are the “developer”
Where are we at with the redevelopment of the golf course lands?
The development lands have been subdivided, legally registered with land titles and sold to the
developer. You can see the land parcel boundaries on the BC Assessment website by searching
1123 Richards St W or follow this link:
https://www.bcassessment.ca/Property/Info/SjAwMDAwNkpEMw==
The signed purchase and sale agreement saw Granite Pointe Golf & Recreation Society (GPGRS)
receive $2 million in proceeds upon completion. GPGRS remains a mortgage holder on the lands
with an agreement to collect the balance of sale proceeds payable in six years, or sooner.
Will the golf course be shutting down and when?
The golf course will not be shutting down. There is a new agreement in place (Lease Agreement)
between the GPGRS and the developer where the developer has the option to lease the entire
golf course from the society. The developer would need to provide notice to the GPGRS no later
than December 31 of each year that they intend to exercise the option to lease the golf course.
The developer cannot exercise the lease unless they have met several conditions showing they
have the money and signed contracts to rebuild the entire golf course. The rebuild would require
the course to close temporarily. The rebuild timeline is 18 – 24 months but could take longer as
projects of this complexity do.
If GPGRS receives notice of lease before December 31, 2024, then Granite Pointe will not open
for play in 2025. If we don’t receive notice, then the golf course will be 100 per cent open in 2025.
Each year going forward would be subject to this notice until June 30, 2026, at which time the
option to lease expires.
The annual December 31st deadline is a date, but these things are known well in advance. If we
don’t have notice to exercise the lease by end of October 2024 or some sense of the momentum
of the developer’s intent, we can safely assume we won’t receive notice by December 31, 2024.
What is the role of Troon Golf in this agreement?
Troon Golf is a golf course management firm: https://www.troon.com/. They have ties to the
developer. If the developer exercises their option to lease the golf course and re-builds the golf
course; then the developer has conditionally agreed to engage Troon to manage the operations
of the golf course. Nelson would be the first Troon golf course in Canada.
Who will be re-design the golf course?
Doug Carrick is the golf course architect. Capilano Club, Predator Ridge, Grey Wolf, Fox Harbour
are just a few of his creations. He has been here already twice. His initial plan is already on the
wall in the clubhouse. His link is attached. Just a wonderful person with great stories and
experience. He is looking forward to this project and working with TROON and Farhad’s team.
https://www.carrickdesign.com/
Will people get to retain memberships when the golf course reopens?
YES. The lease has provisions to offer current GPGRS members a membership plan similar to what
is offered at other West Kootenay courses. Based on today, 2024 rates, the planned membership
would be estimated at $3,000 per year including a cart for current GPGRS members. The above
is the estimate based on 2024 rates which will change in the future.
Will there be an initiation fee?
NO. The locals of the community will receive a locals-only rate, at least a 40% discount off the
rack rate, current Granite Pointe members will be offered membership, and the golf course
operations management team would be extremely incentivized to maximize the local community
support and engagement. The model is similar to Whitewater Ski Resort where locals get a great
deal and tourists/travelers pay a premium to support the amenity.
What will annual memberships cost under Troon management?
The estimate for 2024 is $3,000 per year including cart. This estimate is based on 2024 rates –
but Troon is not managing the course today – if Troon starts management in 2028 then the rate
will be applicable to 2028 rates which we cannot predict with any certainty at this time.
Will the Granite Pointe board have any say in how the golf course is run?
NO. The GPGRS is the owner of the golf course lands and will be a landlord. GPGRS will have the
authority of a landlord under the terms of the lease. The operations and management of the golf
course will be the developer (tenant) of the lease.
Is this deal to lease the golf course already signed?
YES. The lease is signed; however, the lease is not effective until we receive notice per the answer
above regarding course shutdown, and the developer (tenant) has secured money and contracts
to rebuild the course.
What were the alternatives to signing this deal?
NONE. Unfortunately for the golf course, selling lands is the only option. We do not have a
sufficient membership base or high enough membership fees to pay the growing cost of
operating the golf course.
In 2020 we were on the verge of bankruptcy with zero options or alternatives for money. Many
late-night meetings over the winter of 2019/2020 with very little hope. We asked for support in
every way even trying to couch the golf course as an interface to the forest and needed wildfire
management money to clean up the course. Everyone said no. In 2020 we were not going to
open, the credit union offered us just enough money to pay our bills January, February, March
and April 2020 so we could open the doors – COVID happened, and golf was the only thing
available – we got all the hand outs and we successfully ended 2020 in the black. We have limped
along since then to have 2021, 22, 23 all in the black – but barely. During that time, we had our
massive debt receive interest relief, payment deferral, etc. If we did not sell the land, we would
have a ~1.4+M loan with interest only payments of ~$10,000+ per month. If we were carrying
that loan today, we would be heavily in the RED if not insolvent (bankrupt) and in receivership.
The equipment is all at the end of life. The carts are mostly at the end of life. We would need to
triple our membership to get to a place where we could run the operations, pay a full compliment
of greens people, and have some money building to replace equipment. All that would still not
help with an irrigation system that needs a full re-build.
Without going too far into history and detail, if we did not receive the funds from this land sale
in 2023 the golf course would be closed. We have had many dark days as a volunteer board and
this land sale and cash influx has been nothing short of a miracle.
When will the membership be provided with the next update?
Updates will happen quarterly or sooner if new information crystalizes. Right now, the next
milestone is December 31, 2024, but we would update the probability of that notice much
sooner. We will send an update again at the end of the season in October or sooner if critical
facts need to be communicated.
Keep updated on our Facebook page: https://www.facebook.com/granitepointegolf/
