Bella Vista POA board OKs $5.5 million in renovations

BELLA VISTA — Major renovation to the Kingsdale Clubhouse and the Tanyard Creek Practice Facility are slated to begin this fall after the Bella Vista Property Owners Association Board approved the capital projects at a cost of more than $5.5 million.

Work on the Kingsdale Clubhouse is set to begin in December, with hopes of finishing it in time for Fourth of July celebrations next summer.

Work will commence in November at the Tanyard Creek Practice Facility, with an anticipated opening next September. The driving range will close immediately and remain closed throughout the project.

The Kingsdale renovation includes flooring, ceilings and paint; complete renovation and moving the clubhouse restrooms; the addition of glass to the restaurant entrance; complete renovation of the kitchen and rebranding of the restaurant as BV65, focusing on barbecue cuisine; reducing the size of the pro shop and adding more space to the restaurant.

“BV65” stands for Bella Vista, 1965 — the year the community was founded. According to POA Chief Operating Officer Tom Judson, BV65 would have a similar price point to BV Bar and Grill and bring in estimated annual revenue of $1.7 million. Judson noted POA restaurants are set to exceed $4 million in revenue for the first time this year.

The Kingsdale renovation will cost $1.4 million, with $60,000 in contingencies for electrical and construction costs. Judson said crews may have to redo the electrical components within the clubhouse, as there have been issues.

The larger Tanyard Creek project includes construction of two wider, all-weather teaching bays plus eight covered stalls and 27 uncovered stalls; the addition of a dedicated putting green that’s 30% larger than the current green used for both putting and chipping; the addition of a dedicated chipping and sand area, including two sand bunkers; establishing clearly

defined targets on the driving range; enlarging the Tanyard pro shop to facilitate one-stop shopping; and parking area work.

Annual merchandise/ equipment/grip sales, which are currently at $190,000, are anticipated to increase to $305,000, according to Judson. Anticipated first-year revenue at Tanyard Creek is $150,000. Bucket sales are expected to increase from 56,000 to 70,000 annually.

The Tanyard Creek improvements will cost $4.1 million, including the addition of irrigation and topsoil for the landing area.

FUNDING

The combined projects will cost over $5.5 million. The POA is paying $500,000 of that and taking out a loan from its Water Department of $1.4 million, the estimated cost of the Kingsdale Clubhouse improvements. The POA will take out a bank loan of $3.6 million, at a 7.46% fixed rate, with a 10-year call and 20-year amortization.

Monthly payments of $29,200 will be required to pay for the loan over the 20-year period. There are no pre-pay penalties, Judson said, and the goal is to pay it off in 10 years if possible.

Judson said ERC funds are expected over the next year, and that money could be put toward the cost of the projects. ERC stands for Employment Retention Credit — a covid-19 refundable tax credit program offered by the federal government. The POA hired outside counsel to submit the claim, and Judson said he’s conservatively optimistic the POA will receive about $2 million from this as it qualifies as a business that had employees affected by covid.

OPEN FORUM

During an open public forum prior to the vote, board members heard from nine POA members. Five expressed support for the projects and four voiced concerns and opposition, primarily over the amount of money being borrowed. In addition, two emails were read from members who were unable to attend the meeting; one was in favor and one was against the projects.

Ken Nelson, who has lived in Bella Vista for 19 years, said he asked over a dozen of his neighbors how they felt about borrowing money for “wants instead of needs,” and every one of them said they didn’t want the improvements unless paid in cash.

“There’s just too many issues involved with borrowing money,” he said. “That’s why our country is a mess, and there’s bipartisanship. It’s just not the right time at 7.46 [percent interest] money. It’s just not a good spend.”

Jim Angstead, who has lived in Bella Vista for 22 years, stated he has “seen bad times and good times.” As an active golfer, he commended the POA saying everything laid out during the meeting made sense to him and he’s in favor of it.

Prior to the vote, board members heard from nine POA members. Five expressed support for the projects and four voiced concerns and opposition.