Base Lodge Expansion (BLE) Letter

Dear Members,

I am pleased to share further insight into the Base Lodge Expansion (BLE)—a project that has been carefully shaped through detailed planning, strategic cost control, and a commitment to financial responsibility. Our goal has been to ensure that this project delivers meaningful improvements to the Club while maintaining fiscal discipline.

A Focus on Risk Mitigation & Cost Certainty
The $10 million budget for the BLE has been firmly in place for some time, and over the past two years, we have refined the design, procurement strategy, and delivery approach to ensure we meet this target. The project has been scaled down to focus on core priorities, and we have leveraged our strong relationships with local contractors to secure competitive pricing and reliable scheduling.

Rather than engaging a General Contractor, the Club will contract directly with individual trades, maintaining greater control over both costs and timelines. This strategy reduces overhead and ensures Craigleith’s best interests are at the forefront of every decision.

At this stage, firm quotes and unit pricing have been secured for approximately $7 million (77%) of project costs (excluding contingency), with signed agreements in place for key trades, conditional on the outcome of the February 23 member vote. This level of cost certainty significantly reduces financial risk.

All labour is being sourced locally, and the few imported materials—such as windows and HVAC equipment—are not expected to be impacted by tariffs. Contractors have confirmed their ability to meet the construction schedule, with work set to begin in April 2025.

A Phased Approach for Cost & Schedule Management

The BLE will be executed in two structured phases to minimize disruption and maintain financial oversight.

The first phase (April – November 2025) will include demolition of the South Lodge, site preparation, foundation work, and the construction of the new structure, including steel, timber framing, exterior walls, roofing, and mechanical and electrical systems. Interior finishes such as flooring, lockers, and millwork will be completed with local trades, mitigating cost risk.

The second phase (Summer 2026) will focus on the kitchen expansion and renovation, a project element with some cost risk as detailed designs and final pricing have not yet been secured. We have worked closely with FS Strategies over the past year to develop a conceptual design and budget, and once the February 23 vote is complete, detailed drawings will be finalized and tendered to confirm pricing before work begins.

A $900,000 contingency fund (10%) has been allocated to cover unforeseen construction costs, though every effort will be made to preserve these funds wherever possible.

Financial Responsibility & Long-Term Planning

The BLE has been structured to be fully funded without a member assessment, with costs covered through new member initiation fees, the capital levy, and a modest amount of debt. This ensures the project aligns with the Club’s long-term capital plan, which includes future investments in lifts, snowmaking, and other infrastructure improvements.

Looking Ahead

The Base Lodge Expansion is a strategic investment in Craigleith’s future, designed to meet the evolving needs of our members while ensuring long-term financial stability. Through careful cost management, direct contracting, and a phased approach, we are confident in delivering this project within the established budget.

As we approach the February 23 vote, we encourage all members to participate in shaping the Club’s future. Thank you for your engagement and support throughout this process—I look forward to keeping you updated as we move forward together.

Kind regards,

Paul Smith