Members of exclusive Coral Beach Club have been presented with an extraordinary plan to sell them the club facilities for some $28 million.As part of the “equity conversion” plan members would have to make an investment of $35,000 (resident) or $20,000 (non-resident) and take on at least $5.5 million in debt owed by the club's US operator, Brickman Associates, which holds a 200-year lease on the prime 26-acre beachfront property.Brickman in return would set aside in escrow $11 million for a capital improvement programme to make badly needed upgrades to the club facilities - and also $3 million to redo its guest rooms, which Brickman would retain.Brickman came up with the idea to sell the club facilities to the membership after scrapping a plan to redevelop the property as a five-star Four Seasons 150-room resort and residences. Brickman, which had gotten as far as winning in-principle approval on appeal for the project - which it had worked on since 2007, blamed the global economic slowdown for backing off it.Brickman representatives flew in on Monday from New York to hold the first of a series of town hall meetings here and overseas to pitch their plan.The meeting began with cocktails at the club on Monday night. But sources close to the membership told us the well-attended meeting became heated at times and there were numerous questions with many members raising major concerns about the deal and ultimately the amount of money they were being asked to come up with.It has emerged that Brickman wants each of the some 1,500 Bermuda and overseas members to write a cheque for an “ownership contribution” of between $20,000 and $35,000.Details about what Brickman is proposing were contained in a letter to the US Securities and Exchange Commission, obtained by The Royal Gazette, and which argues the memberships do not constitute securities.A confidential brochure detailing the “equity conversion” plan and providing architectural drawings of the proposed upgrades was also handed out at the meeting.The brochure stated that the total expected “ownership contributions” would give Brickman a $28 million “minimum required to close” for what is only a portion of the Coral Beach Club’s land, which Brickman holds a 200-year lease on. Brickman would retain the rest of the property, including the rooms.Brickman's existing mortgage on the club amounts to $5.5 million, which it wants members to assume as part of the deal.Furthermore, members will not have any expectation of profiting from their equity investments of $20,000 to $40,000.New clubhouse windows, bathrooms, furnishings and chairs, improving the beach hut and rooms, adding air conditioning and a pool, a new television and replacing the squash court floors, has been estimated to cost $11 million.The renovation of the rooms is expected to cost a further $3 million.Brickman details the proposed equity conversion as follows:$11 million: to Brickman$11 million: for club renovation$3 million: for rooms renovation$3 million: for costs of sale(Total and minimum required to close: $28 million)In addition, Brickman said there would be:$6 million: future to Brickman from membership sales$5.5 million: Club debt at closingTotal: $39.5 millionBrickman official Rob Coakley said yesterday the offering, meetings and communications with members were meant to be private and confidential, so he did not want to comment too much on what was said.However, Mr Coakley acknowledged: “There were certainly lots of questions. I would say the reaction was some were positive and some were negative. We will continue the process of explaining the plan to members.”(See full story in Business)