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FEBRUARY 2009

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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

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