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GUEST column<br />
The truth about Shenandoah<br />
By Neb Mekani and Mike Sarafa<br />
The truth is that, today,<br />
Shenandoah Country Club<br />
stands as a testament to<br />
the vision of our forefathers; it<br />
remains one of the main centers<br />
of activity in the community; and it<br />
thrives as one of the premier destination<br />
banquet halls and public<br />
golf courses in the metropolitan<br />
Detroit area. It is also true that it is<br />
overloaded with a debt structure<br />
that is not viable in the long term.<br />
neb mekani<br />
Special to the<br />
chaldean news<br />
Many clubs and community centers around the<br />
country suffered badly as the wheels came off the<br />
economic bus in 2008. The Detroit area has been<br />
hit especially hard as declining real estate values and<br />
high unemployment were exacerbated by a floundering<br />
auto industry. These events severely impacted<br />
consumer spending across the board<br />
which has taken a toll on the retail sector.<br />
A recent national study by the National<br />
Golf Foundation found that golf rounds<br />
are down by 22 percent and nearly 60<br />
percent of clubs operate at a loss. Amazingly,<br />
Shenandoah had its best year ever<br />
in terms of gross revenues in 2008. Also,<br />
most clubs have a waiting list to get out,<br />
meaning that their members cannot resign<br />
until someone is available to take<br />
their place; a provision that Shenandoah<br />
does not have but should.<br />
Even while picking up dozens of new<br />
members over the last couple years, overall<br />
membership numbers are on the decline.<br />
There were three main periods of attrition.<br />
The first occurred in late 2004 when<br />
Southfield Manor closed. Many members<br />
left due to the lack of proximity of Shenandoah<br />
to their homes or lack of interest in<br />
the new amenities being offered around<br />
the sports complex, swimming pool and<br />
proposed cultural center. The fact is that many simply<br />
wanted a coffee shop and weren’t willing to share the<br />
financial burden of a larger complex.<br />
The first year of operation of the new facility in<br />
2005 was a bust. Gross revenues missed projections<br />
by 40 percent. The club was top heavy with excessive<br />
management. An attempt was made to quickly<br />
and dramatically change the culture, habits and traditions<br />
of the club which, even though they were being<br />
implemented with the best of intentions, ended up<br />
backfiring. It was a difficult year. Members were approached<br />
for temporary loans that came due this past<br />
year but were not repaid. These events caused the<br />
board to have to raise dues causing another round of<br />
resignations.<br />
The third round came over the course of 2008<br />
as individual member’s businesses suffered, the<br />
stock market plummeted and commercial and real<br />
estate values declined. There can be no question<br />
Mike Sarafa<br />
Special to the<br />
chaldean news<br />
Times are tough — but Shenandoah is here to stay.<br />
that the economy has taken a toll<br />
on the community.<br />
We are not alone, however.<br />
The most prestigious clubs in the<br />
area are hurting as the “walk-away<br />
risk” of their membership becomes<br />
greater and greater. Golf courses<br />
are closing or being put up for sale<br />
all around us. (This actually helped<br />
Shenandoah as golf rounds in<br />
2008 slightly surpassed those in<br />
2007, reaching close to full capacity<br />
for Michigan golf courses.) Sources say two very<br />
prestigious Jewish clubs are talking about merging.<br />
Nonetheless, operations at Shenandoah are now<br />
stabilized under the leadership of Kamel Kassem.<br />
Since he joined us in 2006, the respective boards and<br />
he have been able to cut $1.5 million out of the operational<br />
costs. We know that service issues arise<br />
from time to time. We continue to try to improve in this<br />
area. It is an ongoing process made more difficult by<br />
the tough financial circumstances. On a positive note,<br />
the quality of food and consistency have never been<br />
better. Much of this is due to efforts of our head chef,<br />
Lee Sharkis. It remains true that there is not a better<br />
place to enjoy great Middle Eastern and continental<br />
cuisine in the area.<br />
Programs and activities are constantly in full swing<br />
whether it is children or adult basketball, soccer, indoor<br />
volleyball, pilates classes, kick-boxing classes, swimming<br />
lessons and more. On the social front, the New<br />
Year’s Eve Party was a huge success and Arabic Nights<br />
continue to be very popular. During the slow season,<br />
there is much to do from the Super Bowl Party, Valentine’s<br />
Dance, poker tournaments and other events.<br />
The point is that Shenandoah remains very vibrant.<br />
It is also true that it is not just a coffee house any more,<br />
and, if that is what one is looking for, Shenandoah is<br />
probably not for you. It is a true family club and community<br />
center. That was the vison, that is what was<br />
built and that is what exists.<br />
Of course, more could always be done in all these<br />
areas — membership, service, programs, etc. More<br />
could be done to drive revenues. And more is being<br />
done to cut costs such as the decision to move dining<br />
to the lower level for January and February. None of<br />
these things or even all of them together would help<br />
us dig out of this hole. We have just one problem:<br />
an unmanageable debt load for the existing operations<br />
and membership to support.<br />
We have hired a firm that specializes in turnaround<br />
and workout situations to advise us and negotiate with<br />
the banks. To date, all indications are that the banks<br />
want to work with us through this difficult period. What<br />
is still not clear is the final solution to the debt load. We<br />
know it has to be reduced and that there<br />
are only a couple of ways to get there. Everything<br />
remains on the table.<br />
There is no doubt that Shenandoah<br />
is struggling. As the membership goes,<br />
so goes it. If we could do it over again<br />
knowing what we know now, it would<br />
have been built smaller, less expensively<br />
and with greater care taken to avoid cost<br />
overruns and excessive change orders.<br />
The decision to redo and expand the<br />
lower level after it was already completed<br />
proved to be a huge financial detriment.<br />
This is water under the bridge. It has<br />
been four years. We need to move on and<br />
deal with the situation as it presents itself.<br />
We have lowered dues to make it more<br />
affordable for new members to join and<br />
current members to stay. We have an aggressive<br />
social membership program. We<br />
have gone to monthly payments to ease<br />
the burden on families that would like to be<br />
involved. You can now be a member for a<br />
mere $200 a month — absolutely one of the best deals<br />
in town and not much more than that family membership<br />
at Lifetime that you may or may not use.<br />
The current board and Finance Committee are<br />
working diligently towards a solution. It will take time.<br />
We’ve tapped some of the sharpest business people<br />
in our community for help and we are being guided by<br />
very knowledgeable consultants. While the truth is<br />
not pretty, it is not nearly as bad as some of the rumors<br />
out there. It is not very likely that those naysayers,<br />
who think the club will or want it to close, will get their<br />
way. It is more likely that future generations will be<br />
able to enjoy an even better place.<br />
But one way or another, Shenandoah will survive.<br />
Rest assured.<br />
That is the truth.<br />
Neb Mekani is president of Shenandoah and Mike<br />
Sarafa is a past president of the club.<br />
<strong>FEBRUARY</strong> <strong>2009</strong> CHALDEAN NEWS 11