After a long weekend of college football viewing, I can no longer deny the transition of seasons from summer to fall. Surely others are wondering how time moved so quickly over the past three months? Fortunately in Central Oregon, Fall can be a wonderful time to enjoy golf. I look forward to cooler nights and moderate sunny and clear days. Hopefully the only challenge is scheduling time for golf around numerous football viewing opportunities.
In August, after working with counsel and our accountants, we filed for an extension and made an estimated tax payment of $65,000. We are continuing to work the issue and expect to file the actual return by November 1. At this point we believe the ultimate tax will be less than $100,000. We can share more details and a technically accurate summary after the filing. The short version is we had an income gain from the sale of the land and can offset that gain with loss carry forwards from prior years and reinvestments during a period one year prior and three years after the property transactions.
With this path forward we will make the tax payments from the property account with no impact on operating cash as well as the long-term and short-term capital accounts. The reinvestment obligations are within the boundaries of the work already completed and planned to restore the golf course and rebuild the cart barn, along with normal capex spending anticipated during the period. There are still a number of moving parts, but this is a far better outcome than what we initially faced.
We have a number of construction projects in progress and you will see activity over the next few months. The cart barn permits were finally issued and the contractor Mission Building and Renovation has begun pouring footings. Framing and structural work will commence soon and be followed by the electrical work. An occupancy permit is contingent upon completion of sidewalk/driveway work to meet ADA compliance. While the sidewalk panels met the standard, the two driveways into the parking lot will require some work.
We are also working with Mission to build a utility building in the golf maintenance area. As mentioned at the annual meeting, we have several hundred thousand dollars of equipment that need a permanent storage space. We don’t have a specific time line, but are actively working the project. We will continue to have use of the old cart barns until completion of the new cart barn and utility shed.
Fall is also the time to elect new Board members. Meet the candidates night is Wednesday, September 11, at 6:00. Electronic voting will be September 11-25. Please take the time to read the candidate bios and cast your vote.
Enjoy the Fall,
President, BGC Board of Directors