some complained that the downstairs was not opulent enough, so the building committee decided to add the marble, fine woods and other features that mark the upstairs public areas. “They gutted a finished product,” Sarafa said, calling it “absolutely the wrong decision.” Rough Start Despite the gorgeous finished product, the club fell $3 million short of Left: Despite budget woes, the ballroom continues to be a popular spot for community weddings. Below: Will selling the golf course be in Shenandoah’s future? projected earnings in its first year of operation. Some believe it opened to the public before it was ready, with the result of inconsistent food and service and inefficient valet parking. clouded by debt Will Shenandoah weather the storm? By Joyce Wiswell Shenandoah board members say rumors of the country club’s death are greatly exaggerated – but there’s no doubt the West Bloomfield facility is facing serious difficulties. Shenandoah has defaulted on its two loans and membership has dropped to 660 (with about 550 who actually pay dues) – a dramatic dip from the total of 1,018 when Shenandoah opened in February 2005. Michael George, president of the Chaldean Federation of America, insists there is hope. “We will turn Shenandoah around,” he said. “We are not going to lose it under any circumstance. We’re going through a crisis like everyone else, but the members are very proud of the facility and will continue to participate.” Negotiations are currently ongoing with Charter One and Comerica banks, which hold two-thirds and one-third of the $20.5 million loan, respectively. Former board member Mike Sarafa said it looks favorable that the banks will allow Shenandoah to pay what it can afford over the next few years, rather than seize the property. Shenandoah, which is owned by the Chaldean Iraqi American Association of Michigan (CIAAM), has had problems from its construction days. “The plan kept getting bigger and bigger,” Sarafa said. “They tried to please everybody and the budget kept increasing.” The original construction contract was $17.5 million, said Jacob Bacall, past president and treasurer and a self-described “die-hard member by all means.” The final tally for construction was $21 or $22 million, he said. Meanwhile, the club incurred a few more million in debt by borrowing $600,000 from the Bank of Michigan and $500,000 from the Chaldean Church, and $30,000 each from 42 members in what essentially became a scheme of borrowing from Peter to pay Paul. The original loan agreement also required the personal guarantees of 23 members limited to $125,000 each. Today, Shenandoah owes close to $24 million in total debt, Bacall said. Cost overruns are to blame, as well as what many considered to be an unnecessary last-minute overhaul of the members-only areas that added $1.5- $1.8 million to the final tally. When members first viewed their facility, That led to poor word of mouth for a facility counting on lots of public bookings for weddings and other special events. Things started to turn around in 2006, when a new board fired the original general manager and replaced him with Kamel Kassem, who is credited with bringing much-needed experience and professionalism to the club. Meanwhile, Shenandoah kept raising its dues each year, a trend that not only angered members but drove many to quit the club altogether. Another increase was planned for this year, but the board has instead dropped dues about 20 percent. They are now $2,400 per year for those older than 35 and $1,800 per year for people under 35 or 70 and older. (Rates were lower if the entire fee was paid up front rath- shenandoah continued on page 26 A Brief History of CIAAM 1961 A group of Chaldeans decide to form a club 1965 Constitution and by-laws formally approved 1979 Ground broken for the Southfield Manor 1981 Southfield Manor opens 2002 Ground broken for Shenandoah 2004 Southfield Manor sold February 2005 Shenandoah opens 24 CHALDEAN NEWS <strong>FEBRUARY</strong> <strong>2009</strong>
<strong>FEBRUARY</strong> <strong>2009</strong> CHALDEAN NEWS 25