Cherry Creek Seeks Rent Deferral in Exchange for $1.6M in Club Renovations
Proposed renovations include additional outdoor dining options, expansion of the white tees and construction of a new building that will make the existing clubhouse "banquets only."
In exchange for an adjustment to its existing lease and rent, the operators of Cherry Creek Golf Course say they will commit to making some $1.6 million in capital improvements to the property over the next eight years.
The Shelby Township board is due to consider Cherry Creek’s proposal during its regular meeting at 7 p.m. today in the township municipal building on Van Dyke.
Under the proposed terms, Shelby Township would amend its existing lease agreement with Cherry Creek to abate or defer the company’s rent for eight years as well as eliminate the guaranteed monthly rent payments in favor of a quarterly pay schedule.
Cherry Creek's side of the bargain would include committing to an eight-year, $1.6 million capital expenditure campaign to enhance the property and an extension of its lease term to a full 50 years, guaranteeing rental payments to the township through 2062.
And though the township would miss out on eight years of rental revenue under this proposal, calculations submitted by Cherry Creek suggest the township would actually net an additional $1.47 million during the current lease period and $17 million more during the new term.
Cherry Creek attributes part of this increase to the added value that the proposed capital improvements would give to the property and, by association, the township.
Chief among these improvements are renovations and additions to the club’s banquet rooms, outdoor dining and course offerings.
The proposed renovations and schedule are as follows:
By the end of 2013
- Design and drawings for expansion and renovation
- Tree clearing and underbrush removal on the golf course
- Entrance beautification on 24 Mile Road
- Sales showroom project, creation of new office space
By the end of 2014
- Interior renovation of the Lakeview and Ryder Cup banquet rooms
By the end of 2015
- Addition of a 130-by-16 foot patio space directly off the Lakeview room and Ryder Cup Grill to be used as a pre-function space for banquets.
By the end of 2016
- Expand the a la carte dining area by 800 square feet, adding the potential for an outdoor bar and fire pit area.
- Expansion of white tees, which would double the size of existing white tees.
By the end of 2017
- Parking lot repair and repaving.
By the end of 2018
- Construction of a new building to house the pro shop, restrooms, snack shop and a small kitchen as well as a bar and grill area with outdoor dining. This would make clubhouse “banquets only.”
By the end of 2019
- Renovation of the old pro shop and restaurant into additional function space.
By the end of 2020
- Replace carpeting in clubhouse.
- Purchase an emergency generator.