The Presque Isle Harbor Association (PIHA) located in Presque, MI, is a single-family, residential community that strives to collectively provide essential services to its home and landowners; it is a membership-based organization. The development of PIHA was begun in 1968 by the American Central Corporation, a subsidiary of International Paper, who purchased the property from the Fletcher family of Alpena. In 1972, American Central established PIHA as a nonprofit corporation under the Michigan Nonprofit Corporation Act (NCA) [1982 PA 162, MCL 450.2304] with the final transfer of all assets to PIHA in 1976.
The Board of Directors operates the Presque Isle Harbor Association in accordance with Michigan laws, the Corporation’s articles of incorporation, restrictive covenants, its bylaws and organizational rules, employee policies, and generally accepted business practices that will accomplish the Presque Isle Harbor Association’s mission and goals. The Board of Directors, its committees, and subcommittees are made up of Association members and, in cooperation with the executive director, are responsible for enforcing the above-referenced laws, articles, policies, covenants, PIHA rulebook, and business practices. The executive director hires personnel to staff the clubhouse during scheduled hours of operation, to maintain Association property, and to provide legal and financial consultation to the Board and its members. The Board of Directors is also responsible for maintaining open and effective communication between itself and the Association membership.
Membership in the Association is determined by meeting specific requirements for ownership of property within its boundaries. The Association is bounded to the East by Lake Huron, to the West by Grand Lake, to the North by Thompson Harbor State Park and to the South by the community of Presque Isle. When including Lake Esau that is partially located within the Association’s boundaries, there is approximately a total of 4 miles of shoreline. The Association’s property consists of approximately 3000 acres, of which 2000 acres are divided into 12 plated subdivisions. These subdivisions are further divided into 3100 lots that are approved for residential housing. The remaining property is designated as “common property” on which the Association’s physical assets are located. Annual operation of the Association is financially supported through the payment of an assessment by the owner of each lot which also entitles the member access to a variety of amenities (see Section V, B below). Currently, 2290 members own 3100 lots; 428 of these lots are occupied by a residential dwelling. Members who purchase property are not required to construct a dwelling on their property.
II. Mission Statement
The mission of the Presque Isle Harbor Association is to resourcefully and responsibly manage its assets in order to promote and maintain an exceptional lifestyle that may be shared and enjoyed by all its members.
III. Marketing Analysis and Strategy
The Presque Isle Harbor Association is a true four–seasons, self–managed, residential community nestled along the rugged and pristine shoreline of northwestern Lake Huron. The Association offers an excellent, unspoiled environment of woods, water, and many other natural resources. With easy, daily access to activities and events in Alpena, Rogers City, Cheboygan, and Petoskey, it is ideally suited for persons whose employment or retirement situation would allow them to settle in a community that takes them away from the “hustle and bustle” of most urban areas. Presque Isle is truly a “diamond–in–the–rough” that can be found on the shores of Northeast Lower Michigan.
A comprehensive marketing plan to let others know about our unique community will target active and inactive Association members, retirees and residents new to the Presque Isle area, and seasonal tourists and vacationers.
Advertising: the Association’s website will be upgraded to provide accurate and timely information about the organization, its leadership and governance, activities and events of interest, and links to important resources and community partners that may enhance the lives of the membership. The use of printed and other electronic media will also be used when practical and cost–effective. Additionally, our membership is considered a significant resource for marketing the Association by sharing their personal experiences and stories with those who are not familiar with the PIHA.
Partnerships: Building partnerships (or working relationships) with community organizations and agencies (both private and public; e.g., Marine Sanctuary, Discover Presque Isle Cooperative, etc.) will allow for expansion of the kinds and number of resources and amenities that are available throughout the year to Association members, their families and friends, and visitors. Some of these partnerships are already in the planning stage for the coming year.
IV. Financial Management
Budgeting Process: The fiscal year of the Association begins on April 1st and ends on March 31st of the following year. The Executive Director is required to prepare and summit an annual budget to the Budget and Finance Committee and the Board of Directors for their approval before the end of each fiscal year. The budget reflects the cost of administering the programs and services as well as projected revenues of the Presque Isle Harbor Association for the next fiscal year.
Once the Board of Directors approves the budget, the Executive Director is authorized by the Board to implement this financial plan to manage the Presque Isle Harbor Association for the next fiscal year. The financial plan allocates funds for: (1) operating Association facilities, (2) employing personnel to operate and maintain the facilities, (3) reducing debt, (4) managing newly–approved capital or operating expenses, and (5) maintaining funds for a two–month operating reserve.
The Board of Directors has been given the authority to annually review and increase, if needed, the yearly assessment for members of the Association based on the overall budgetary needs of PIHA and the Consumer Price Index (US All Items, 1982–84=100 – CWUR0000SA0 as a baseline).
Budgeting Pro forma: A pro forma is a financial statement that projects gross income, operating expenses, and net operating income for a future period on the basis of a set of specific assumptions. These assumptions are determined in part by the Association&apos:s business goals and objectives written in the final section of this business plan. The Executive Director takes this into account when drafting his or her budget proposal for each fiscal year.
Staffing: The Executive Director is responsible for the day–to–day operations of the Association under the authority of the Michigan Non–Profit Corporation Laws, the Corporation’s articles of incorporation, restrictive covenants, its bylaws and organizational rules, employee policies, and generally accepted business practices to accomplish the Presque Isle Harbor Association’s mission and goals as set forth by the Associations Board of Directors.
The role of the Executive Director is to: 1) present an annual budget for approval by the Board, 2) hire appropriate staff to perform operational tasks according to their position descriptions, 3) maintain and secure the Association’s assets and recommend new capital purchases or projects when needed, 4) purchase and maintain equipment to meet operational needs, 5) obtain necessary insurances to protect the Association and its staff against liability and losses, and 6) provide legal and financial consultation to the Board through the use of independent contractors.
Facilities and Services: A variety of services are available to the membership at four primary locations:
Clubhouse: Association office, indoor pool and spa, TV lounge and card room, exercise and locker rooms; game/meeting room; large activities hall (basketball, volleyball, rentals), small second floor meeting room; outdoor deck with grills and tables; tennis court. Open daily, 8 AM to 10 PM except Christmas, Thanksgiving and Easter Sunday.
Grand Lake Beach House: sandy beach and swim area, grass picnic area, boat launch and dock, pavilion with picnic tables, restrooms and changing rooms, volleyball court, (available for family parties; contact the office for availability). Open daily, 10:00 AM to 8:00 PM, Memorial Day through Labor Day with an attendant onsite.
Campgrounds: 60 sites with water and electric–– 15 of these sites have sewer hook–ups; large wooded sites, pavilion (with fireplace, games and tables); playground; central building with showers and restrooms; horseshoe pits and volleyball court; hiking trails and trailer storage (placement and removal of recreational vehicles by Association staff can be arranged). Is officially open from mid–April through November 30th; an onsite manager is available 24/7 from May 1st through September 20th
North Bay Beach House: sandy swimming beaches on North Bay (pavilion with lounge and restrooms) and Presque Isle Harbor; rental of pavilion may be arranged through the Association office at the Clubhouse. There is no onsite attendant.
Common Property/Green Space: hiking and snowmobile trails; cross–country skiing; designated hunting areas.
VI. Concluding Statement
Statement of Intent
The Presque Isle Harbor Association is committed to providing its members with an organization and program that 1) strive to deliver services that meet high standards of quality, 2) compete with or exceed the operational standards of similar associations, and 3) offer a product that maintains or increases the value of personal property and common assets of the Association through responsible investment and financial management.