Financial Woes Beset Town Club
Financial Woes Beset Town Club
TUESDAY MAR 2 1 1978
The Ann Arbor Town Club, a city fixture since 1941, is experiencing a severe financial crisis. It may close unless half of its 1,500 members each come up with a special $300 assessment.
According to a letter sent to its members, the club is substantially behind in payments to its landlord for rent and real estate taxes. The letter states the landlord has served notice that the back payments be paid immediately, or the club premises will be repossessed. The club also owes substantial sums to banks and trade creditors.
AT ITS ANNUAL meeting held over the weekend, a majority of members present approved a resolution outlining a last-ditch effort to save the club. Members will be asked to pay a $300 special assessment, spread out over the next 12 months.
Annual club dues will be increased to $250 effective for renewable memberships on or after July 1. Members would be further required to use a minimum of $25 a month in the club’s food and beverage services.
A letter is being sent to club members asking that they support, the resolution and pay the assessment.
Robert Parker, a member of the board of directors, said at least 750 members must agree to the assessment by March 31 or the club will close.
The assessment would be paid in a lump sum of $100 initially, and 10 $20 installments over the next 10 months.
Club manager Harold Coolman said the primary reason the club is in a financial bind is the traditionally low dues it has charged its members.
“FOR YEARS the dues were only $50 and for the last five years they have been only $75,” Coolman said. “Last fall we raised them to $100, but they should have been at least $200 for the past several years. That’s where we got in trouble.”
“The club will operate until the end of the month regardless of what decision the membership comes to,” said Coolman. “I can’t say absolutely it will be closed. But if we don’t get 750 members to pay the assessment, it will close.”
Club President L. Mack Woodruff said it was apparent at the annual meeting that there is substantial continuing interest in the operation of the Town Club. Approximately 60 club members were present at the meeting.