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UPDATED: January 21, 2010
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January 15, 2010
_Report #35
January 22, 2010
Dear Fellow Bonita Bay Club Members,
Report #34 contained an update on our continuing discussions with BB Group, an indication of a possible timetable for the completion of a transaction, a comment on the planned formation of committees of volunteers and a list of the tasks that your Committee will be performing prior to turnover.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
Discussions with Bonita Bay Group
As reported on December 7, 2009 in report #32, an agreement in principle was reached with BB Group on the principal terms of a turnover of the Club to the members.
Your Committee is in discussions with BB Group on the details of the definitive agreement. A draft, prepared by counsel for the TOC, was sent to BB Group on December 24, 2009. We received written comments on this draft from counsel to BB Group on January 16, 2010. While there is considerable work to be done prior to finalizing the definitive agreement, the committee remains positive about the outcome.
Work is also ongoing on the draft agreement providing for the use of one of the East courses, on an alternating daily basis, by New Leaf Management, Inc. In addition, discussions are continuing with respect to the pricing and supply of irrigation water by Resources Conservations Systems.
Timetable
The purchase of the Shadow Wood Club by its members was completed on January 15, 2010. Your Committee is optimistic that BB group will now focus its attention on completing the turnover of the BB Club. We hope to have a definitive purchase agreement signed by late January or early February. The TOC is also working on the proposed bylaws, conversion plan, membership plan and refund policy for the new Club. We are also preparing an information memorandum and application package which will be provided to all members following the signing of a definitive agreement.
The TOC plans to hold "town hall" meetings to discuss the information package and to answer questions from the members.
Alternatives to joining the new Club
As previously reported, all members who decide to join the new Club will be required to pay a conversion fee and to sign a waiver of refund liability in favor of BB Group and their lenders. In order for the New Club to have sufficient members to be financially viable and for BB Group to be willing to accept the remaining amount of refund liability for resigned and downgraded members, it will be necessary for at least 85% of the current members to join the new Club.
Current members and recently resigned or downgraded members will be encouraged to join the new Club. The TOC is aware that some members will decide not to join the new Club and may pursue other alternatives. BBG has indicated they plan to offer a settlement proposal to all those who decide not to join. A small group is trying to put together people to initiate new legal action against BB Group. We do not believe that this is in the best interest of the membership. We will be making the option of joining the new Club as attractive as possible, and believe that once members have had a chance to review the terms under which they may become members/owners of the New Bonita Bay Club, the overwhelming majority will decide to join the new Club. This legal action proposed could result in a divided community and lengthy litigation with a highly uncertain outcome.
Your Committee requests that the members defer making any final decisions with respect to joining the new Club, taking a settlement proposal or pursuing other avenues, until all of the details of the proposed turnover transaction are known, the conversion plan and new membership plan can be presented to the members and any questions can be answered.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
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UPDATED: January 15, 2010
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January 15, 2010
THE CLUB IS OURS!!!!
After months and months of negotiations, planning, and hoping, we can finally tell you the great news that we are now the new owners of SHADOW WOOD COUNTRY CLUB, INC.
It has been a long and arduous process for all of us with disappointments along the way. But, thanks to your tremendous support, trust, and patience, we've achieved the goal that we set for ourselves a long time ago. The future of the New Club is now in our hands.
Membership
The very latest membership statistics are very impressive.
# Joined Goal % of Goal
Golf Members 831 775 107%
Tennis Members 74 75 99%
Social Members 134 113 119%
TOTAL 1,039 963 108%
Equally impressive is the financial outlook for the Club because of our solid membership roster.
As you know, we agreed to fund Bonita Bay Group's resigned member liability obligation through a supplementary purchase price agreement (SPP). The amount of this obligation for Shadow Wood which will be funded through new member joining fees, will be approximately $1.9 million, far less than what we originally anticipated.
This means that because of our high membership numbers and the lower SPP funding amount, we have the opportunity to put the anxiety of the conversion process behind us and have confidence in the future financial viability of our New Club.
Let's Party!!!
The Club is planning a very special member owned party for all members on Wednesday, January 27th. Details will be announced shortly, so mark your calendars now for our celebration.
Club Billing and Payments
Please continue to pay your club bills to the same address as you have in the past. Those who pay their bills electronically do not need to make any changes to the way they have previously paid.
We wish to extend our deepest gratitude and appreciation to every one of you who stepped up in support of our effort to protect our lifestyle and property values through your membership in Shadow Wood Country Club, Inc. Congratulations to all fellow members of our New Club.
SWCC Member Board: Dave Courtney, Rollie Crawford, Dave English, Ray Kostelc, Nancy Nemec, Mike Paquette, Bill Pritts
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Bonita Bay Club Advisory Board
Meeting Minutes
January 11, 2010
Board Members present: Joe Davi, John Risk, John Pinti, Pete Saputo, Jack Eikenberg, Chuck Campbell and Roderick Price
Bonita Bay Club Employees present: Bob Staehle and Pat Schulz
1) The Turnover Committee provided the Advisory Board with an excellent briefing related to their overall progress and their continued efforts to finalize an agreement with Bonita Bay Group regarding turnover of the club to the members. Detailed discussions and finalization of contract terms for turnover continue to progress according to plan. Advisory Board members expressed thanks to the TOC for the countless hours they have committed to this effort and we commend them on working toward a successful outcome for the Club and our Community.
2) Bob Staehle and Pat Schulz provided an update on Club operations.
i) The Club has 1227 golf members, 204 Sports members and 472 Social members. Member golf rounds and guest rounds for 2009 finished the year 2009 almost exactly the same as member rounds for 2008. Reciprocal rounds in 2009 were dramatically lower than 2008, primarily because in 2009 BBC did not participate in the ACE Classic reciprocal program, which enabled individuals with “ACE passes” to play at a number of clubs on very attractive terms during the low season.
ii) Since early December, fourteen new golf members have signed up under the new golf preview program. Preview members must be residents of Bonita Bay.
iii) As of January 8, 2010, 67% of members have paid dues for January. Members are reminded that dues are payable on or before the first of the month.
iv) The Advisory Board and Turnover Committee jointly continue to take steps to ensure that dues paid to the BBC, remain in BBC. This is part of an agreement made between the parties back in October that extends in to 2010. January reviews are planned to confirm receipts and disbursements under this agreement.
v) With the arrival of 134 new golf carts on the East Courses there has been some debate regarding the value of GPS communication systems on the carts. Many members believe GPS on the carts is an unnecessary expense. Many ardent golfers now have their own GPS devices, but most top clubs have GPS on the carts to serve all golfers, and also to provide communication/location on the course in the event of a medical emergency. After deliberation, BBC management has approved the installation of GPS on the new carts on the East Courses at a cost of $38,000.
vi) On the West Courses the E-Z-Go cart battery problem is nearly resolved. The technical service representatives have been on site daily to install new batteries and get the fleet fully operational.
vii) The Fireside Room plans to re-open on January 15, and then continue to be open on THURSDAY and FRIDAY nights during the season. After consultation with the members, it was decided that Thursday and Friday are the best nights for the Fireside Room to be open.
3) The Christmas Fund collection for the BBC employees was very successful. Approximately $46,000 was given by the members to show their appreciation to the BBC employees. The Board expresses their thanks to all of the very gracious members who contributed to this effort.
4) During Spring 2009 the Advisory Board solicited member contributions to pay for legal fees and other professional fees related to our disagreement with BBC regarding refund policy and turnover. Most of the money we collected was spent on legal counsel from the firm of Cheffy & Passidomo, the principal law firm subsequently retained by the Turnover Committee. As of January 11, 2010, approximately $20,000 remains in the Advisory Board operating fund. The Advisory Board has decided to contribute the remaining balance of these funds to the Turnover Committee on or before February 1st.
Respectfully submitted,
Bonita Bay Club Advisory Board
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Dear Member,
I want to wish you all a happy and healthy New Year, and again thank the majority of the membership who continue to pay their monthly statements on a timely basis. As the busiest time of the year is now upon us, I also want to continue to communicate current operational information to our membership. We have just endured one of the coldest periods for the longest number of days in recorded history for the Bonita Springs area. Lauren Casey, meteorologist for WINK-TV, in an email to the Club yesterday, stated:
“Morning low of 37 in Ft. Myers this morning marks 9 morning lows in the 30's so far this month. January, 2009, we had 3 lows in the 30's. In an average year, we fall into the 30's only a few mornings during the entire winter season.”
The below-freezing temperatures, combined with the length of the cold spell, have had a damaging effect on the golf course turf conditions, annual flowers, and indigenous landscape material. Most noticeable is the Bermuda grass rough and fairways on the golf courses that are now brown in color, which indicates that not only has the turf “shut-down,” stopping the photosynthesis process, but it has also been burnt by the frost. As weather conditions become more conducive to grass growth, the turf will begin to reverse its current state of decline and will start to grow again. This process, depending on the soil temperature, sunlight, and humidity in the air, could take a period of time. Also, the greens will go “off-color” to a brown and sometimes purple color. Other than this, the greens are a little less affected by the low temperatures, due to their height of cut and density of turf. You can help during this sensitive time by keeping golf carts on the cart paths around tees and greens, particularly while the grass is struggling to recover. Also, trying to stay away from cart-wear patterns in the fairways and roughs would be helpful.
On another note, E.J. McDonnell, Head Golf Professional at the main Club location, continues to work with E-Z-Go to rectify the issue of the batteries in the golf carts losing their charge. Today there are many technicians from Safe Start here (battery distributor directed by E-Z-Go) to replace batteries. They will continue to do so until our problem has been rectified. Thank you for being patient while we finish this project.
As the New Year is upon us, I speak for the entire staff of Bonita Bay Club in our commitment to serving the membership during these difficult times; we are,
At Your Service,
Robert G. Staehle
General Manager of Club Operations
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UPDATED: January 8, 2010
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Shadow Wood Country Club and the Commons Club
January 8, 2010
WE'RE ALMOST THERE
Club Conversion Date
We are on a path to close on the conversion of Shadow Wood Country Club and The Commons Club to member owned clubs on January 15, 2010. As you can imagine this has been a considerably complex effort by everyone involved and we thank everyone for their patience and support.
As soon as the closing is finished we will notify all members via email.
Latest Joining Results
# Joined Goal % of Goal
Golf Members 829 775 107%
Tennis Members 74 75 99%
Social Members 130 113 115%
Total 1033 963 107%
Thanks to all that have supported our membership drive. We should be well on our way to becoming a sustainable and financially successful club.
In our next report after closing we will give you a more extensive financial report on our conversion and this will include final numbers on outstanding liability owed to resigned
members.
Recent Mailing To Members Regarding CCNC Election
Within the next day or so members will receive a mailing regarding the election of neighborhood CCNC representatives. The return envelope for your ballot was inadvertently left out of the mailing. This means that you need to mail your ballot in your own envelope to the following address or drop it off at the SWCC office.
Dave Courtney
Shadow Wood Country Club
22801 Oakwilde Blvd.
Bonita Springs, Fl. 34135
Pay Your Dues!!!
In our last communication we explained the importance of paying for dues and club expenses on a timely basis. These monies are used to run the everyday operation of the club. When these are not paid on time by some members, the operation of the club suffers. This is continuing to be a problem and is affecting some club operations.
As we have explained before, BBG has committed that all payments by members will be used to run the club. Payment of current expenses and the following month's dues are payable 30 days after invoices are sent. Dues paid for January will be prorated from the date of closing. Delaying payment of these charges will result in our New Club having to pay BBG monies that were owed to them under their ownership.
SWCC Member Board: Dave Courtney, Rollie Crawford, Dave English, Ray Kostelc, Nancy Nemec, Mike Paquette, Bill Pritts
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January 8, 2010
11th Communication from Bonita Bay Marina Club Turnover Committee
Dear Bonita Bay Marina Club Boating and Social Members,
In our last communication (# 10, dated Dec. 21, 2009), we communicated that the Turnover Committee had submitted a second offer to purchase the Marina Club and that this offer had been unanswered by the Bonita Bay Group. After subsequent follow up phone calls and e-mails, the offer was finally rejected by Bonita Bay Group.
On Tuesday, Jan. 5, 2010, the Marina Club Turnover Committee received notice from Joey Garon that Bonita Bay Group is no longer interested in selling the Marina Club. Joey stated that this could change in the future and if it does, he will contact the Turnover committee. He then thanked the Turnover Committee for its interest and efforts.
Offer History
Original Asking Price:
$5,000,000
Assumption of $5,000,000 Member Deposits
First Offer from Marina Club Turnover Committee:
$2,000,000 Cash
Assumption of $4,500,000 Active Member Deposits:
Response: Rejected with no counter offer
Second Offer from Marina Club Turnover Committee:
$1,500,000 Cash
Assumption of $4,500,000 Active Member Deposits
Bonita Bay Group to retain ability to sell $2,000,000 in unsold memberships
2 year management contract for New Leaf Management
Response: Rejected with no counter offer
In conversation with Joey Garon, subsequent to the rejection of the second offer, Joey acknowledged that the Key Bank appraisal of the Marina Club had come in higher than expected which may have contributed to the desire to retain the Marina Club.
Ramifications
This means that, unless something changes, the Bonita Bay Group will continue to own and operate the Marina Club until the original documented turnover to members scheduled for 2012.
The Marina Club Turnover Committee is very disappointed in this turn of events. However, the decision to sell or not to sell the Marina Club rests with Bonita Bay Group and Key Bank.
The Marina Club Turnover Committee will remain an entity (and the LLC will remain active) until the Marina Club is either ultimately turned over to members or sold to a third party. It remains to be seen, in upcoming conversations with Bonita Bay Group, if this tactic of Bonita Bay’s is a negotiating strategy, or a true change of direction.
Next Steps
The Marina Club Turnover Committee was formed in May 2009, at the request of the Bonita Bay Group. Contributions were solicited from membership to fund the due diligence process.
Acting in good faith, the Marina Club Turnover Committee and its volunteers have invested thousands of hours and thousands of dollars performing the due diligence analysis to facilitate a turnover of the Marina Club from Bonita Bay Group to its members.
The Marina Club Turnover Committee has drafted a letter to Bonita Bay Group. Because the Bonita Bay Group has reversed its course of action, the letter states that Marina Club Members deserve to be 100% reimbursed for the contributions they made to fund the turnover process. Over $88,000 was collected from members and over $72,000 was invested in due diligence expenses for legal fees, appraisal, engineering study, accounting analysis, bank fees, town hall meeting expenses and insurance. With just over $16,000 remaining in the bank account, the letter requests that Bonita Bay Group “do the right thing” and reimburse members for all money spent.
You will be advised about the status of Bonita Bay’s reimbursement for due diligence expenses and of any further developments.
The Marina Club Turnover Committee’s e-mail remains active and supported:
bbmcto@aol.com
Your Bonita Bay Marina Club Turnover Committee
Rick Fioretti (Chairman), Gregg Bedell, Jim Chisholm, Steve Jess, John Maliszewski, Jim Patterson
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UPDATED: January 6, 2010
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Bonita Bay Club
Turnover Committee
Report #34
January 5, 2010
Dear Fellow Bonita Bay Club Members,
Report #33 contained a comment on the excellent response to our request for volunteers, a request that members continue to pay their dues on a monthly basis, a comment on the expected timetable for the conversion of the Club, a comment on the requirements to join the new Club and a clarification on the proposed treatment of resigned , terminated and downgraded members who join the new Club.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
Discussions with Bonita Bay Group
As reported on December 7, 2009 in report #32, an agreement in principle was reached with BB Group on the principal terms of a turnover of the Club to the members.
Your Committee is in continuous discussion with Bonita Bay Group on the details of the terms and conditions of the proposed turnover of the Club. A draft of a definitive purchase agreement, prepared by counsel for the TOC, was sent to BB Group on December 24, 2009. We are awaiting comments on this draft from BB Group. About December 28, 2009, we received a draft of an agreement providing for the use of one East course by New Leaf Management, Inc., prepared by its counsel. We have responded to BB Group with our comments on this draft. Discussions are continuing with respect to the pricing and supply of irrigation water by Resources Conservations Systems. We hope to have an agreement on this important issue in the near future.
Timetable
Due to the holiday season and the demands on BB Group's attention from other BB Group Clubs, particularly Shadow Wood, the process of getting to a signed agreement has not progressed as fast as we had originally expected. We now hope to have a definitive purchase agreement signed by late January. The TOC is also working on the proposed by-laws, membership plan and refund policy for the new Club. Shortly after signing, we expect to distribute an information memorandum to all members summarizing the transaction, the conversion plan, and the membership plan. This memorandum will also explain the steps required for members to join the new Club and contain the necessary forms to be completed.
The TOC also plans to meet with the TOC Neighborhood Representatives to discuss the information memorandum. We will then conduct "town hall" meetings to discuss the information package and to answer questions from the membership. These town hall meetings are tentatively scheduled for February 16 and 17, 2010.
In the absence of any unforeseen problems, the turnover could be completed in March.
Volunteers
As previously reported, your Committee is very pleased with the highly qualified members that have volunteered to work with the TOC on the various committees we will be forming to assist in the turnover process. We will be contacting these volunteers as the committees in which they have expressed interest are being formed. Attached is a list of tasks that the TOC will be performing prior to turnover.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
Task List
Purchase Offer:
Term Sheet
Purchase Agreement
Survey/title
Retain Title Company
Engage Phase 1 environmental
RCS Negotiation
BBG process for redemptions
Revise Articles of Incorporation
Membership Application Package:
Summary of Purchase terms
Commitment by Members
Conversion Membership Plan
History
Membership Application
Waiver
Bylaws
New Membership Plan
Operating and Capital budgets
Printing and distribution
Mailing follow-up
Operations:
HR transition
Employee Handbook
Turnover issues-licenses
Employee loyalty bonus
IT conversion
Search firm
Financial:
Secure bank loan
Accounting services
Secure $1M liability insurance
Secure P&C insurance for New Club
Banking services
Communications:
Written publicity
Q&A
Town hall meetings
Neighborhood meetings
Open forums
Telephone support
Resigned member issues:
Waiver
Rules and Regulations:
Elections:
Board
New membership programs:
New Member Application
Interface on BBCA turnover
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UPDATED: December 29, 2009
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From: Art Herman
Subj: Old Corkscrew
Many of you might remember a few years back, when BBG was high into
their delusional state and thought they were 10 foot tall and
bulletproof, they proposed opening a separate club to be called The
Retreat.
It was a Jack Nicklaus designed golf club only out on Corkscrew Road.
The project with BBG was eventually abandoned but the course went
ahead under different ownership and management.
Well, during the recent "hiatus" several of us BB members who are
resigned, suspended, terminated or downgraded from BB tried many
different courses. I would say, by far, Old Corkscrew was the best and
most accommodating. The course and driving range are top notch and the
people are simply outstanding.
As we continue to try and finalize happenings at Bonita Bay, or If you
are looking for an alternative golf club to join or play, I would
strongly suggest you check out Old Corkscrew.
If this sounds like a plug for Old Corkscrew it is because that's it
exactly what it is.
The key is .... they deserve it.
Art Herman
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UPDATED: December 21, 2009
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December 21, 2009
10th Communication from Bonita Bay Marina Club Turnover Committee
Dear Bonita Bay Marina Club Boating and Social Members,
The Marina Club Turnover Committee sends all Marina Club members warm wishes for a wonderful holiday season.
Status of Offer to Purchase
The last communication (# 9) described the offer to purchase the Marina Club that was submitted by the Bonita Bay Marina Club Turnover Committee. In October, the Committee offered to purchase the Marina Club for $6.5 Million ($2 Million Cash and $4.5 Million in deposit liability). This offer was rejected with no counter offer provided.
On November 12, the Marina Club Turnover Committee submitted a second offer to purchase the Marina Club. As of this date, this offer has not been answered. This lack of response is frustrating to the Turnover Committee who desires to keep the process moving to a successful conclusion. Underlying motivations for BBGs delay in negotiating with the Marina Club Turnover Committee are unclear. A working assumption may be that BBG desired to reach a successful conclusion with the Bonita Bay Club prior to continuing negotiations with the Marina Club, a considerably smaller property. Your Marina Club Turnover Committee is working to obtain a response to the latest offer and will then meet with BBG. We are hopeful that soon there will be news to communicate on this topic of interest to all.
Congratulations to the Bonita Bay Turnover Committee
The Marina Club Turnover Committee would like to congratulate the Bonita Bay Club Turnover Committee on reaching a tentative agreement to purchase the Bonita Bay Club. We wish you a very successful turnover.
Town Hall Meetings
On November 11 and 14, the Marina Club Turnover Committee participated in the Bonita Bay Town Hall meetings. Following a short update by Rick Fioretti, chairman of the Marina Club Turnover Committee, the floor was opened to questions and comments from attendees. Many excellent questions were asked and creative ideas were offered. It was a pleasure to talk to members and answer questions in person.
Due Diligence Status
We are pleased to report that the due diligence phase of our turnover process is nearly complete. Since the last communication, progress has advanced on two important projects.
The Engineering Study conducted by W. J. Johnson and Associates is finished. The study does a superior job of evaluating the condition of the physical assets of the Marina Club (restaurant, office, ship’s store, dry stack storage buildings, wet slips, dock structure, mechanical equipment and parking lot). It clearly defines the existing level of deferred maintenance and forecasts short term and longer term maintenance projects required to bring the Marina Club up to standard. It estimates the useful life of the equipment and forecasts the short and long term capital expenditures to be budgeted. This study will be an excellent management tool for future Marina Club operations.
The Accounting Firm Study of the Marina Club financials, conducted by Wiebel, Hennells and Carufe, P.A. is nearly complete. The firm developed a financial model that can be used to test historic and future financial assumptions.
Marina Club Turnover Committee Expense Summary
Member Contributions
$86,879
Expenses
Legal Fees
$28,651
Engineering Study
$17,920
Accounting Firm (Est.)
$15,000
Appraisal
$3,500
Bank Fees
$92
Town Hall Meeting Chair Rental
$708
D & O Insurance
$6,084
Funds Remaining
$14,924
As evidenced by the table above, nearly all (83%) of the contributions received from members have already been committed. Legal fees continue to be the largest expense item and will continue to grow through subsequent offer negotiations.
Assuming a successful negotiation, legal fees to conduct the actual turnover and to charter the new club will be substantial. It is our current plan to incorporate these legal fees in the overall cost of the new club.
At this point in time, we are not requesting additional contributions from members who have already made a contribution. We are asking members who are non contributors to step up and financially support the success of the Marina Club.
Upcoming Survey of Members and the Community
In September, the Marina Club Turnover Committee conducted a survey of boating members to determine their level of interest in the Marina Club and to test their willingness to make a financial investment in the club’s turnover. As reported in Communication # 7, this survey confirmed a high level of interest in boating at the marina and confirmed a willingness to make an investment. However, with only 260 active boating members, there is a possibility that additional financial resources will be required to purchase the Marina Club.
A survey of Marina Club social members and the Bonita Bay community is being designed to gather opinions about the Marina Club (Backwater Jacks and the marina). The survey will also assess the degree of willingness to make a modest financial investment to ensure that this wonderful community amenity remains viable and does not end up in 3rd Party hands.
Marina Club Member Contributions
A shortfall will likely occur unless those Boating and Backwater Jacks members that have not shared the financial burden up to now, forward their contribution as described below.
Please Contribute to the future of your Marina Club!
If you have not made a contribution to the Marina Club Turnover Committee, please do so. A successful turnover can only occur with the financial support of members. The Turnover Committee commits that the money will be spent carefully and excess funds will be credited back to donors.
Suggested contributions are as follows:
$350 for Boating Members and
$50 for Social (Backwater Jacks) Members
Please make checks out to the Marina Club TO LLC and mail to:
Vito Soranno, 3972 Woodlake Drive, Bonita Springs, FL 34134.
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December 19, 2009
Bonita Bay Club
Turnover Committee
Report #33
December 19, 2009
Dear Fellow Bonita Bay Club Members,
Your Committee would like to wish all of the members and the employees of the Club a very Happy Holiday season and a prosperous New Year!
Report #32 consisted of an announcement that the TOC had reached an agreement in principle with BB Group on the principal terms of a turnover of the Club, an indication of some of the matters that still need to be negotiated and decided, a request for volunteers for committees to help the TOC complete the transaction and a statement that a list of contributors to the TOC had been posted to our website.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
Volunteers
Your Committee has been very pleased by the large number of qualified members who have volunteered to assist us in completing the turnover transaction and obtaining approvals from continuing members. We will be responding to each of these volunteers in January. Our objective is to get a purchase agreement signed with BB Group as soon as possible and then form the committees to assist the TOC. The TOC could benefit now from one or two volunteers who have specific expertise in information technology since we need to decide soon how to transition the information systems and software at BB Group to the new Club.
Payment of Dues
BB Group has also agreed that, as long as we are moving forward towards the completion of a transaction, all dues and other revenues of the Club will stay in the Club until closing and be used only for Club purposes. Accordingly, your Committee is requesting that all members pay their dues promptly on a monthly basis since these funds will be used to improve the level of service and to maintain the quality of the facilities.
Timetable
The TOC is working diligently to get the turnover completed as soon as possible. We hope to have a definitive purchase agreement signed by early to mid January. We are currently preparing the proposed by-laws, membership plan and refund policy for the new Club. Shortly after signing, we expect to distribute an information package to all members summarizing the transaction, the by-laws, the membership plan, and the refund policy. This package will also explain the steps required for members to join the new Club and contain the necessary forms to be completed. We will then conduct "town hall" meetings to discuss the information package and to answer questions from the membership.
If all goes according to plan, we could close the transaction in February.
Joining the new Club
All members who decide to join the new Club will be required to pay a conversion fee and to sign a waiver of refund liability in favor of BB Group and their lenders.
In our previous reports, the TOC has not been entirely clear with respect to the required payment of back dues by members who are joining the new Club. Your Committee would obviously like as many as possible of the members who have resigned, been terminated or downgraded their membership categories to join the new Club. Most of these members who are also candidates to join the new Club resigned, downgraded or were terminated in order to put pressure on BB Group to negotiate a turnover.
Accordingly, members joining the new Club who have resigned or downgraded their membership category will not be required to pay the dues that they did not pay as a result of having resigned or downgraded. Members who have resigned and not received a refund of their initiation fee may rejoin the Club by paying the same conversion fee as any continuing member. Members who have downgraded may rescind their downgrade decision and rejoin the Club in their original category of membership by paying the same conversion fee as a continuing member. Members who have been terminated and any other members whose accounts at the Club are not current, will be required to bring their accounts current prior to joining the new Club in addition to paying the same conversion fee as other continuing members.
Contributions from Members
The list of contributors and their contributions to the TOC to November 30, 2009 was posted to our website at www.bbtoc.wordpress.com on December 5, 2009. A revised list, including a number of corrections and additional contributions made to December 18, 2009 has now been posted on this website. We request that each member check the list again to ensure that your total contribution is shown correctly in our records.
Please be sure that you are looking at the appropriate list on the website, labeled "BBTOC List of Contributors through 12/18/09, rather than the list of contributors to the HTC. The list of contributions to the TOC does not include any contributions made to the Advisory Board, to the Homeowners Transition Committee, or to the Marina Club TOC.
The purpose of publishing this list is to verify that the information in the TOC records is correct. If these records are incorrect, we apologize, and request that you send a copy of your cancelled check either by email to newclub@embarqmail.com or by fax to 239-992-0520. If you have any other questions, please call John Klocko at 239-992-9757.
Your Committee requested a total of $700 from each golf membership, $350 from each sports membership, $175 from each social membership and $125 from each residence of Bonita Bay that does not currently hold a membership in the Club.
The TOC anticipates that its additional expenses prior to closing will be substantial and that additional funds may be required.
If you have not already made the total requested contribution, please make your check payable to: "BB Turnover Committee, Inc." and mail it to: Mr. John Klocko, 3390 Riviera Lakes Court, Bonita Springs, Florida 34134.
As stated in report #25, all contributions to the TOC will be credited to your account in our new member-owned Club. All non-members of the Club who make a contribution will receive a voucher for dining at the new member-owned Club equal to the amount of their contribution. If a turnover is not completed, any unused funds will be returned to those who made contributions, on a pro rata basis.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
________________________________________________________________________________________________
Bonita Bay Club Advisory Board Meeting Minutes
December 9, 2009
Board Members Present: John Pinti, Chuck Campbell, Joe Davi, John
Risk, Jack Eikenberg and Roderick Price
Bonita Bay Representatives Present: Bob Staehle, Pat Schulz
1. The Advisory Board discussed the agreement in principle announced
by Bonita Bay Group and the Bonita Bay Club Turnover Committee
regarding club turnover. The Advisory Board highly commends the
Turnover Committee for their success in reaching an agreement on
this very difficult matter. We greatly appreciate the hundreds of
hours of work that the Turnover Committee members have invested in
this challenging effort and we know that significant work remains to
make this a successful transition.
2. Bob Staehle reviewed the December General Managers Report:
-As of December 7th, 89% of members have paid December
dues.
-There are 1255 golf members, 198 sports members and 472
social members. In the past few days since an agreement was
reached, five members have reinstated their golf membership
in light of a potential turnover.
-The Advisory Board was informed that a number of programs
of Bonita Bay Club (BBC) are being discontinued. Normally
the Board might act to intercede or work with BBC when BBC
is planning to change programs at the Club. However, given
the pending turnover of the club and the current operating
environment, the Advisory Board does not plan to intervene on
these matters. These changes at the Club include:
-Bonita Bay Group (BBG) has discontinued the Monarch
Program (for spouses of deceased members).
-The Senior Member benefits program has been discontinued
by BBG. The senior program, which began last year, enabled
members over age 80 to pay half of their dues by drawing
down the balance in their initiation deposit account.
-The member leave of absence option, for existing members,
has also been discontinued by BBG.
-The in-season reciprocal program with Shadowwood,
Verandah and Twin Eagles has been discontinued by BBG.
-The Welcome Back member party will not be held this year.
-Discretionary expenditures of any kind remain subject to prior
review and approval by BBG. The Advisory Board believes that
from now until club turnover the club should be operated at service
levels comparable to prior years. Dues payments are at high levels.
A pledge was made by BBG that all BBC dues collected would be
used for BBC purposes. The Advisory Board outlined a proposed
approach to coordinate with the Turnover Committee to address these
matters.
-The eight new treadmills for the Fitness Center, requested by the
Advisory Board, have been delivered and are operational. The
lounges by the Fitness Center pool are now being repaired.
-Ongoing efforts are being made to resolve E-Z-Go cart battery
problems on the West courses and to deploy the Yamaha carts
on the East courses. Although there have been complications to
overcome, steady progress is being realized.
3. The Advisory Board reviewed results to date of the BBC employee holiday
fund drive. The Advisory Board agreed to sponsor this effort when BBG
indicated they would not conduct a fund drive this year. The members
have donated more than $35,000 and another reminder will go out
December 12. The Advisory Board will coordinate the distribution to the
employees by December 18.
4. The Board discussed the credit card policies currently in effect at the Club.
Some members have indicated that they are unsure of credit card policies
or that there are inconsistencies in such policies. The policies for golf are
different than the policies for food and beverage.
For golf/tennis: Guests of members can pay by credit card for
golf and merchandise with the approval of the member.
For food and beverage: Credit card payments by guests of members can
only be made if such payments are pre-approved by the manager at the
time the reservation is made. The entire check must be placed on one
credit card, no mixed checks/partial payments.
BBC has found this policy for food and beverage charges to be necessary
to ensure that members’ privileges are not routinely extended to nonmembers.
This is most challenging at Backwater Jacks. There are more
than one thousand households in Bonita Bay that have no social, sport or
golf membership with Bonita Bay Club or Backwater Jacks.
5. The Advisory Board discussed an approach to offer a preview program to
Bonita Bay residents. There are approximately ninety home sales year to
date in Bonita Bay and approximately forty residents are expressing an
active interest in joining Bonita Bay Club now. In an effort to reach out to
these potential members the Advisory Board has worked with BBC to
develop a preview program that would enable these interested parties to
join the club on a preview basis until turnover is accomplished, at which
time they could join the new club. The Advisory Board agreed to
review this approach with the Turnover Committee and determine an
appropriate path forward.
6. The next Advisory Board meeting is scheduled for January 11, 2010.
Respectfully submitted,
Bonita Bay Club Advisory Board
John Pinti
Chuck Campbell
Joe Davi
Jack Eikenberg
John Risk
Pete Saputo
Paul McGrath
Roderick Price
Please direct all suggestions or concerns to the following:
johnpinti@me.com
________________________________________________________________________________________________
UPDATED: December 14, 2009
________________________________________________________________________________________________
Propaganda is a form of communication aimed at influencing the attitude of a community toward some cause or position. As opposed to impartially providing information, propaganda in its most basic sense, presents information primarily to influence an audience. Propaganda often presents facts selectively (thus lying by omission) to encourage a particular synthesis, or uses loaded messages to produce an emotional rather than rational response to the information presented. The desired result is a change of the attitude toward the subject in the target audience to further a political or economic agenda.
Why is it that every communication that comes from BBG seems like PROPAGANDA and everything that comes from the TOC seems real and truthful? Am I so skewed in my thinking that I already anticipate lies, deceit and misinformation from BBG or is it in fact just that... misinformation?
Your thoughts please...
Harvey Siegel
Egrets Landing
________________________________________________________________________________________________
UPDATED: December 12, 2009
________________________________________________________________________________________________
Shadow Wood County Club, The Commons Club at The Brooks and Bonita Bay Group are pleased to announce that more than 90 percent of current members have committed to join the new member-owned clubs and have raised enough funds to allow the club sale to proceed.
The attached press release was distributed to the local media yesterday.
Sincerely,
Joey Garon
President of New Leaf Management
and
Gary Dumas
Vice President of Bonita Bay Group
FOR IMMEDIATE RELEASE
Shadow Wood County Club and The Commons Club turnover clears hurdle
ESTERO, Fla. (Dec. 10, 2009) - Members of Shadow Wood County Club and The Commons Club at The Brooks have overwhelmingly supported the purchase of the club from Bonita Bay Group. More than 90 percent of current members have committed to join the new member-owned clubs and have raised enough funds to allow the club sale to proceed.
The purchase price is $8.25 million, plus the assumption of liability for deposit refunds for resigned members. The sale includes the 30,000-square-foot Shadow Wood clubhouse, two Bob Cupp-designed golf courses and a nine-court tennis complex; the Shadow Wood Preserve clubhouse and course designed by Arthur Hills; the Shadow Wood Sales Center; and The Brooks Commons Club amenities, including fitness and enrichment centers, Rosie Spoonbill's restaurant and a private beach club on the Gulf of Mexico.
"We are confident the purchase agreement is the best possible deal for our members and the new club," said Dave English, president of the Shadow Wood Country Club member board. "Member control not only allows us to direct the operation of the club, but also preserves the community's lifestyle, protects property values and removes the uncertainty of future changes in club ownership."
Terry Furhovden, a Brooks resident who worked with representatives of all The Brooks communities in the purchase of The Commons Club said, "The amenities of The Commons Club always have been a very important part of what makes living in The Brooks a special experience. Knowing that these amenities will be secure under member ownership and control is a huge relief to all residents and members."
"We are grateful for the hard work of the club board and the transition committee," said Brian Lucas, vice chairman of Bonita Bay Group. "They shared an enormous amount of complex information with club members in a very short time and have developed a solid plan for an economically sustainable club with a vibrant future.
"We continue to negotiate in good faith with the other club transition teams. The turnover of The Club at Mediterra and the success of the effort at Shadow Wood and The Commons Club help reposition Bonita Bay Group for the next phase of its business," said Lucas.
Shadow Wood Country Club has nearly 1,050 members, and the member count for The Commons Club is roughly 2,400. To join the new clubs, members submitted applications, documents waiving Bonita Bay Group's responsibility for membership deposits, and checks for joining fees that ranged from $200 to $5,000 per family, based on their membership level.
A date for the closing has not been set, but the sale may be finalized by the end of the year.
The Brooks, located at the intersection of U.S. 41 and Coconut Road, opened for home sales in January 1998 and sold out in seven years, becoming one of the best-selling communities in Southwest Florida. The 2,532-acre community earned a 2002 Aurora Award for residential development from the 12-state Southeast Building Conference, was named the 14th best-selling master-planned community in the United States by Robert Charles Lesser & Co. for three consecutive years and received the Lee Building Industry Association's Pinnacle Award for Community of the Year for an unprecedented four consecutive years, from 1999 to 2002. More than half of The Brooks is open space with 416 acres of undeveloped forest and freshwater wetlands and 878 acres set aside for recreation, open areas, buffers and lakes.
________________________________________________________________________________________________
UPDATED: December 9, 2009
________________________________________________________________________________________________
As anyone who knows me knows, I have been perhaps the most anti-BBG
antagonist out there. My level of disrespect for the whole BBG, from
the Lucas' down through upper management is about as low as possible.
But I think it is important to express that those of us who have been
anti-BBG are not anti-club. In fact, quite the opposite. Our
frustration has come from wrongly losing what we had and wanting it
back.
So, I want to join the chorus of those who are applauding the work of
the TOC. They have shown patience and resolve not only in dealing with
Bonita Bay Group but with others in Bonita Bay who have been way less than supportive.
I hope that BBG does not throw one of their famous about face curve
balls and derail this plan in the details. With BBG's history it will
take the ink being dry before we won't have to worry about that.
But, in the meantime, I and many others remain cautiously optimistic
and once again applaud the great efforts of the Turnover Committee.
Art Herman
________________________________________________________________________________________________
UPDATED: December 8, 2009
________________________________________________________________________________________________
Sent: 12/8/2009
Subj: Tentative Agreement
Congratulations to the TOC for a job well done. I know much more needs to be accomplished, but I want you to know many of the current members appreciate all the time and effort you have devoted to this project.
Thanks, Jerry Mohan
________________________________________________________________________________________________
Sent: 12/7/2009
Subj: Club Turnover
To All,
This is great news.
We purchase the club for $11.5MM.
Golf members will pay around $10,000.00 sports less,social less,special rate for seniors.
We own the east courses .BBG leases them from us for three years-$500M year one,$250M years two and three.We KEEP a % of carts estimated income of $300-400M per year,ALL food beverage and merchandise sales!!
Guys, this is going to be a great club! The TOC did a super job. Please pass the word for all resigned members to rejoin.REMEMBER the more members the less it costs each one of us.
Regards,
Jim Weaver
________________________________________________________________________________________________
UPDATED: December 7, 2009
________________________________________________________________________________________________
Sent: 12/7/2009
Subj: Shadow Wood appears to have a deal also
December 7, 2009
On Our Way to Member Owned!!!
We are well on our way to realizing our goal of purchasing Shadow Wood Country Club. As of December 6th the joining numbers look like this:
# Joined Goal % of Goal
Golf Members 807 775 104 %
Tennis Members 72 75 96 %
Social Members 107 113 95 %
TOTAL 986 963 102 %
In addition, The Commons Club has enrolled 2,091 members, including 131 upgraded and new memberships.
Our estimate of the combined SWCC and Commons Club resigned member deposit liability is that it will be under $5 million.
We are confident that we can now move forward to becoming a financially successful member owned club!
A very big thanks to everyone who has played a role in helping achieve these outstanding results. From CCNC representatives and member volunteers making phone calls as well as friends and neighbors encouraging people to join the New Club, you all helped tremendously in our achievement.
Membership Recruiting Ending Date
We will continue to accept membership applications until December 31, 2009. We believe that there are several people who have either sent in their applications and checks or will send them in over the next three weeks. In addition we will keep trying to contact a few people who we have been unable to reach.
If we have not received applications and checks from current members by December 31st, we will assume that those members have decided not to join the New Club.
Cashing Member Conversion Checks
Member conversion checks will be deposited into an escrow account this week. We are carefully checking that all membership documents have been completed correctly and we are making copies of all documents, including checks, before they are sent to our attorneys.
Conversion Date
We are still targeting a conversion date of December 31, 2009. We are making good progress in finalizing the sale and purchase agreement however there are still many details which need final resolution before we can close on the transaction. Therefore, there is a chance that the closing might be delayed beyond the target date. We will keep you informed about this.
Payment of January, 2010 Dues
We have been getting questions regarding the payment of next month's dues.
Please pay your dues for January, 2010. If, for some reason, the closing date of the club purchase is delayed past December 31st, January dues will be prorated between the New Club and BBG as of the closing date.
We are well on our way to making Shadow Wood the club we all want it to be, complete with the amenities so important to all of us, and with the opportunity to restore our lifestyle and our property values. Thank you to all of you for your energy and support in bringing us so close to a successful conversion!
SWCC Member Board: Dave Courtney, Rollie Crawford, Dave English, Ray Kostelc, Nancy Nemec, Mike Paquette, Bill Pritts
________________________________________________________________________________________________
BONITA BAY GROUP & BONITA BAY CLUB TURNOVER COMMITTEE REACH AGREEMENT FOR MEMBERS TO PURCHASE CLUB ASSETS
Sales agreement must be ratified by membership and Bonita Bay Group’s lenders
BONITA SPRINGS, Fla. (Dec. 7, 2009) – The Bonita Bay Club Turnover Committee and Bonita Bay Group today reached an agreement in principle for the members of the club to purchase the club assets for a total of $12 million, including contributions of $11.5 million from the members of the new Club. The agreement is subject to lender approval, signing of a definitive agreement and approval by the membership of the club.
“The Turnover Committee is very pleased to have reached an agreement that is fair and in our members’ best interests,” said Cynthia White of the Bonita Bay Club Turnover Committee. “We look forward to reaching out to all Bonita Bay Club members in the coming weeks to build on the momentum of the agreement and to seek the approval of the members.”
The sales agreement includes 90 holes of championship golf, including three Arthur Hills-designed courses within the community and two nearby golf-only Tom Fazio courses, two clubhouses, three practice facilities, 18-court tennis and swim center and fitness center.
Bonita Bay is Bonita Bay Group’s flagship and the third community to reach a resolution on club conversion.
“Since the dramatic market decline of a year ago, our members have gone through some very challenging times with us and to reach this significant milestone in our restructuring plan is very gratifying”, said Brian Lucas, vice chairman of Bonita Bay Group.
The 2,400-acre Bonita Bay community is a recipient of the nationally recognized Urban Land Institute Award for Excellence and was included among Travel + Leisure Golf’s top 100 golf communities in America each year since 2006, Links Magazine’s 2006-07, 2007-08 and 2008-09 lists of America’s Premier Properties and Golf Connoisseur’s 2007 list of the top 40 golf communities in America.
________________________________________________________________________________________________
Bonita Bay Club Turnover Committee News
December 7, 2009
Dear Fellow Bonita Bay Club Members,
This is the thirty-second communication from your Turnover Committee (the "TOC" or the "Committee").
Our thirty-first communication consisted of an update on the status of our negotiations and a report on the results of the survey of members conducted between November 4 and 14, 2009.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
Status of Negotiations
Your Committee is pleased to announce that we have reached an agreement in principle with BB Group on the principal terms of a turnover of the Club to the members. There are a number of items that remain to be negotiated and agreed to, including the necessary protection for the Club on the volumes and prices of irrigation water to be supplied by Resource Conservation Systems. We expect to resolve this issue in the next few weeks. No agreement has yet been signed. The definitive agreement will be subject to approval by BB Group's bankers and to approval by the requisite number of members of the new Club.
The principal terms of the transaction are as follows:
Net purchase price is $11.5 million, being $12 million less the $0.5 million payment from BB Group to the new Club referred to below.
BB Group will have the exclusive right to market tee times to third parties on one East course (alternating daily between the two East courses) for three years starting May 1, 2010, for lease payments of zero in year one, $250,000 in year two, and $500,000 in year three. This agreement is subject to early cancellation rights by the new Club on January 1, 2013, with a reduction in the third year lease payment, under certain circumstances related to the number of golf members in the new Club. BB Group will pay new Club $500,000 up front for this exclusive right.
BB Group will retain the liability for refunds for resigned and downgraded members. BB Group will create a fund of $7 million to retire resigned and downgraded members' promissory notes. If this fund is insufficient to retire all such notes on a "cash settlement value" basis, BB Group will have the right to terminate the transaction.
New Club will have the right to terminate the transaction if less than 85% of the current golf members join the new Club.
The Bonita Bay Community Association will be turned over to the residents as soon as possible, subject to completion of due diligence and agreement with the Homeowners Transition Committee and subject to access rights satisfactory to BB Group for Marina Club members and to satisfy agreements in place with builders.
The TOC will put the class action suit against BB Group in abeyance.
Next Steps
Your Committee understands that the last year has been a difficult time for all members of the Club and that there have been many differing views on the best way to resolve our issues with BB Group. The TOC would like to sincerely thank all members for their support and encouragement to date.
There are still a number of matters that remain to be negotiated with BB Group. In addition, there are several important but difficult decisions that will have to be taken by the TOC shortly with respect to the funding of the purchase price, the by-laws of the new Club, the formation of a new Board of Directors, and the initial membership plan and refund policy. Your Committee also understands that many of these matters could be controversial and result in some members being less than fully satisfied with the TOC's decisions. We hope that all members will continue to appreciate we can have honest differences of opinion on these matters and still be willing to make compromises in the interests of having a successful member-owned Club.
The TOC and BBG will be working towards a target closing date for the transaction in February, 2010.
Volunteers for Committees
Your Committee will be forming several committees to assist it in the execution process of completing the purchase transaction and obtaining approvals from continuing members. These committees will include a Communications committee, a Finance and Tax committee, a Membership Approval committee and an Operations committee. Any member who is interested in participating in any of these committees is invited to contact the TOC at newclub@embarqmail.com.
Contributions from Members
The list of contributors and their contributions to the TOC to November 30, 2009 has been posted to our website at www.bbtoc.wordpress.com. Some members have requested that their names and contributions not appear on this list and accordingly, the published list is incomplete. Total contributions to November 30 were approximately $700,000 and came from over 1610 members and 46 residents who are not members of the Club. Your Committee wishes to sincerely thank all contributors for their financial support.
This list does not include any contributions made to the Advisory Board, to the Homeowners Transition Committee or the Marina Club TOC.
The purpose of publishing this list is to verify that the information in the TOC records is correct. If these records are incorrect, we apologize, and request that you send a copy of your cancelled check either by email to newclub@embarqmail.com or by fax to 239-992-0520. If you have any other questions, please call John Klocko at 239-992-9757.
As stated in report #25, all contributions to the TOC will be credited to your account in our new member-owned Club. All non-members of the Club who make a contribution will receive a voucher for dining at the new member-owned Club equal to the amount of their contribution. If a turnover is not completed, any unused funds will be returned to those who made contributions, on a pro rata basis.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
________________________________________________________________________________________________
UPDATED: December 5, 2009
________________________________________________________________________________________________
Subject: David Lucas Deposition from Bonita Bay Lawsuit
Date: 12/5/2009
the full text of the Evans lawsuit deposition of David Lucas can be found
________________________________________________________________________________________________
Dear Bonita Bay Group Residents and Members,
The Mediterra Members' Advisory Board and Bonita Bay Group are pleased to announce that The Club at Mediterra is now officially owned by and under the control of its members. The sale of the club assets to the members of the club was completed today. We will begin distributing the attached press release to the local media this morning.
The purchase of the club by its members received unprecedented support from residents and members of Mediterra with 633 residents joining the New Club as golf, sports or social members. The purchase includes the community's two Tom Fazio-designed championship golf courses, the golf learning center, 25,000-square-foot clubhouse, Sports Club and private Beach Club.
Bonita Bay Group appreciates the effective leadership of the Mediterra Members' Advisory Board and the unified support of the community's residents throughout this process. We are working towards similar positive outcomes as we continue turnover negotiations with other club turnover committees.
Sincerely,
Joey Garon
President of New Leaf Management
and
Gary Dumas
Vice President of Bonita Bay Group
FOR IMMEDIATE RELEASE
Contact:
Jennifer Laderer, Director of Marketing, Bonita Bay Group, jenniferl@bonitabaygroup.com,
239-390-1199
It's official - Members complete purchase of Club at Mediterra
Bonita Bay Group and Mediterra Members' Advisory Board announce transaction closing
NAPLES, Fla. (Dec. 4, 2009) - The Club at Mediterra is now officially owned by and under the control of its members. Bonita Bay Group and the Mediterra Members' Advisory Board today completed the sale of the club assets to the members of the club for $6.8 million in cash and the assumption by the new club entity of approximately $15 million in Community Development District (CDD) debt. The purchase of the club by its members received unprecedented support from the residents and members of Mediterra with 633 residents joining the New Club as golf, sports or social members.
"This is a great day for Mediterra members and residents who worked together as a cohesive team focused on a mutual goal to make this happen," said Richard Schmidt, chairman of the Mediterra Members' Advisory Board. "Our club is now on firm financial footing and since the announcement of our planned purchase in late October there has been a major surge in buyer interest for homes in our community." Schmidt explained that the purchase of the club eliminates any uncertainty about the community's future and restores Mediterra's position as Naples' premier private club community.
The purchase includes The Club at Mediterra and its two Tom Fazio-designed championship golf courses, an 1,800-square-foot golf learning center with short-game practice area, a 25,000-square-foot clubhouse, named best clubhouse twice by the Collier Building Industry Association, and a Sports Club with five Har-Tru tennis courts, an outdoor pool, three spa rooms and a recently expanded fitness center. It also includes the private Mediterra Beach Club on the Gulf of Mexico with an elevated swimming pool, expansive sundeck and indoor and al fresco dining overlooking 200 feet of shoreline.
"Today's closing is really a testament to the effective leadership of the Mediterra Members' Advisory Board and the unified support of the community's residents who remained focused on the mutual goal of converting the club and controlling their own destiny," said Brian Lucas, vice chairman of Bonita Bay Group. "We continue to negotiate in good faith with all of the club turnover committees and are currently working towards a successful transition at Bonita Bay Club, Shadow Wood Country Club and the Commons Club." Lucas said the agreement is another positive step toward repositioning the company for the future.
Mediterra is a 1,697-acre community that has been named Community of the Year by the Collier Building Industry Association five times, received the Award of Excellence for Open Spaces from the Florida Chapter of the American Society of Landscape Architects and has been honored with the Environmental Leaders in Golf Award from the Golf Course Superintendents Association of America and Golf Digest magazine in the private course category. It has been named by Golf Magazine as one of The 50 Best Golf Communities in America and by Travel & Leisure Golf as one of the top 100 golf communities in America for four consecutive years. It was the first-ever 36-hole course to earn Audubon International's Silver Signature Sanctuary status.
________________________________________________________________________________________________
UPDATED: December 4, 2009
________________________________________________________________________________________________
Subject: Predictions
Date: 12/3/2009
It's all quiet on the western front lately, so, to keep the brain in gear, here are some opinions and predictions.
* The TOC and BBG will come to an agreement which will be presented to the membership.
This has to happen because those who are in favor of settling at any cost demand something specific to consider and we need to get past this point. We need something to say yes or no to regardless of its merits.
* The Agreement will be soundly rejected.
This will be due to one overriding fault in the negotiating process. While BBG is coming from a position of demanding what they need to avoid bankruptcy and even remain a viable company that number is not close to the reality of the value.
BBG is not negotiating in good faith, they are negotiating under financial duress and feel we should be their partner in suffering.
Fear and desperation are fighting reality and resolve. Any offer now will be higher than what the TOC has previously rejected but some kind of offer needs to be put out there to satisfy the " just tell me how much of a check to write" minority.
* The TOC will NOT collectively advocate the agreement but offer it as the best they could negotiate.
When the new plan is presented, there will be more advice to "consider the plan" than outright unanimous endorsement.
* BBG will do every legal maneuver possible to stall court proceedings and may even pay off some early suits to avoid total calamity.
Why? Because they are wrong, they know it, common sense dictates it and they are not looking good in the first suits to reach a court decision.
Besides, if BBG were allowed to prevail we might as well throw all the contract law books in the trash.
* Current suits will continue and multiple new suits will be filed shortly.
Eventually it will all catch up with BBG and bankruptcy will happen, as it should.
Either that or "the sisters" give back what they shouldn't have taken as profit to begin with.
On the other hand, assuming a higher cost number than the $11.5 Million the TOC previously proposed and was rejected is the final price outcome and it is miraculously accepted, it will be done with far fewer members, greatly reduced facilities, increased cost cutting measures as budgets must now scale down to the lower revenues and increased dues and/or assessments. Acceptance of a financially non-viable deal simply to get the matter over with is a sure fire formula for financial disaster, not only for the club but for the real estate values of the entire Bonita Bay Development.
The problem is not just paying more than we should for the club, that's a one time thing. The problem is the greater financial headache that would bring on the remaining club members.
Think of overpaying for the club is like slamming your hand with a hammer to make your headache go away. It works but it is not the answer.
The answer is the total elimination of BBG and purchasing the club at fair market value. It appears going as we have been through the courts may be the only way to do that. It will take time and there well might be inconvenience but any other result would be wrong in the long term.
Art Herman
________________________________________________________________________________________________
UPDATED: December 1, 2009
________________________________________________________________________________________________
This was the hearing where the Judge ordered BBG to pay refunds as it had contractually promised
________________________________________________________________________________________________
UPDATED: November 30, 2009
________________________________________________________________________________________________
From: Michael Lissack
Sent: 11/30/2009
Subj: Fwd: TRO Motion
The attached motion was filed today with the US District Court in Fort Myers. The following link will give you the actual filing. http://mediterracommunity.com/tromotion.pdf
There is no way to assure whether the Court will hear it or whether it will be granted. Support from other unpaid depositors (and those that will have deposits come due upon the sale) at Mediterra, Shadow Wood and the Commons Club may help in that regard.
This will NOT interfere with any proposed sales of assets to club members. The merits of each transaction are up to members to decide on their own. The motion is intended ONLY to assure that proceeds will not be distributed so as to deny payment to unpaid depositors that are supposed to receive the money.
________________________________________________________________________________________________
UPDATED: November 26, 2009
________________________________________________________________________________________________
BAY POINTE AND FRIENDS GROUP DELIVERS !
1,096 Turkeys given for Thanksgiving
A week before Thanksgiving a group of about 30 caring volunteers picked up 13,754 pounds of turkey from the Shadow Wood SWEETBAY SUPERMARKET loading dock and delivered them to charities serving people-in-need. 842 turkeys were loaded into the Salvation Army’s truck, by the pallet full, by Sweetbay’s staff for dinners at Salvation Army’s Fort Myers facility. ( Enough turkey for 16,000 meals lasting from Thanksgiving through Christmas.)
The rest of the turkeys were loaded into several SUV’s and delivered to their other destinations by the volunteers. Guadalupe Center in Immokalee received 172 birds, Café of Life received 50 and Lee County Group Home got 32. Smiles, hugs and tears of thanks and appreciation were apparent at each location.
How did this happen? On Thanksgiving 2001, Jim Patterson , a Bay Pointe resident and his friend, Frank McKean, took four turkeys to the Salvation Army kitchen. Ever since then Jim has led a group that has grown from the original 2 to 125 donors and he plans and executes the whole program each year with 100% of the donation money going to the turkey purchase. This year Sweetbay Supermarket was helpful and cooperative in providing the turkeys at a reduced cost. We, the Bay Pointe neighbors together with Jim Patterson’s friends from other parts of Bonita Bay and beyond that form this group, appreciate Sweetbay’s important contribution to this effort.
We all will be thinking kindly of those charities that prepare and serve the meals to the many people needing help this Thanksgiving and throughout the years ahead.
We wish all of those receiving those meals--- hope for their future wellbeing.
- Ed Parks
for Bay Pointe & Friends Group
November 25, 2009
________________________________________________________________________________________________
UPDATED: November 24, 2009
________________________________________________________________________________________________
Subject: East Facility
Date: 11/24/2009
I played Cypress today and was disappointed.
The lack of maintenance over the summer is evident. The grass in the fairwasys is too long, and there are many previosly maintained areas that have not been touched at all. The biggest disappointment was the presence of fire ants everywhere. There were few tees that were not covered with them and you could find them in many spots in the fairways and the rough. After the round I went into the pro shop to ask what they planned to do about them. I was told they are trying to get some money to pay for ant bait!
We continue to pay premium dues for very sub-premium service.
I can't see why anyone would want to give these guys our money with no commitment that it will stay in the club.
Dan Corbin
Estancia
________________________________________________________________________________________________
UPDATED: November 21, 2009
________________________________________________________________________________________________
From: Michael Lissack
Sent: 11/21/2009
Subj: Legal Update
The documents are now all on the public record at the Federal Court so feel free to post
This all is MUST reading.
________________________________________________________________________________________________
UPDATED: November 19, 2009
_____________________________________________________________________________________________________
Subj: TOC Support
Date: 11/19/09
From: Ron Den Besten
Augusta Creek
Just a few passing thoughts for BB residents considering whether to support the TOC expense
and legal defense kitty and those considering the Max Lummis and Steve Friesen Initiative
in the TOC Report #31:
1. November 17, 2009 was a Bad Day for BBG when The Court issued a Summary Judgement
in favor of the PLAINTIFF against BBG DEFENDANT. We look forward to further legal opinions
on the significance of the precedent. It would be interesting to hear if Fox News contributor
Judge Napolitano thinks Contract Law, in general, is at risk if One Party (David Lucas),
who signed, dated and sealed our Promissory Notes, can subsequently unilaterally amend the
provisions, without the consent of the Other Party, the BBC Members.
2. Reliable sources, who have made careers in the real estate and development business, have
shared that the Real Estate value in BB is approximately $4 billion; and the "premium" for
G & G (Gated Community with Golf) is approximately 25%. Ergo IF there is (a) disregard for
Gate Security (suggested by the "Preview Program") and (b) a closed Golf Club (and other
amenities repeatedly threatened by David Lucas and Tim Boates), then the value of our Homes
is reduced by $1 billion. That's a Billion with a B !!!
3. Furthermore, we're talking about our Community, not just the Amenities. Homes and Relationships
trump amenities and are far more valuable.
4. Thank you Max Lummis and Steve Friesen for "volunteering" to lead the Initiative to sign-on to
Downgrade to Sports or Social IF there is not (a) a Reasonable Turnover Deal with BBG pending,
consummated or closed by _____ (date certain ?), AND / OR (b) an effective Court Ordered
Constructive Trust established to control and manage BBC revenues and expenses, as
requested in the Class Action Complaint: Klocko & White, and all persons similarly situated,
PLAINTIFFS vs. David Lucas and Bonita Bay Properties, Inc. DEFENDANTS.
Individual martyrdom has minimal impact. But a 1000 + signatures just might get some attention
and potentially be useful to our TOC Representatives. We were repeatedly informed at the
Town Hall Meeting: "It's all about the Money!"
There has been a yearning for a UNIFIED effort to KILL the BBG "cash cow".
Good Luck and Thank you Max and Steve.
5. Wasn't it "special" when we were informed of the significance of the 1/31/10 date; when the BBG
David Lucus and Tim Boates "commitment" to use our dues exclusively for BBC expires?
You can't make up this stuff. The TOC quote at the Town Hall meeting: "BBG has other needs
for our cash after 1/31/10 !!!" Terrific! BBG plans to resume stealing from us commencing 2/1/10.
Audits? Fuggetaboutit!
6. If you find any of the above credible, and you have not yet supported the TOC's, please reconsider.
A few hundred $, and possibly a temporary interruption in amenities with a downgrade commitment,
are small prices to potentially save our Community and forevermore cease control and governance
by BBG. We need Turnover of ALL the assets: BBCA, BBC and BBMC; the-sooner-the-better!
Ron Den Besten
Augusta Creek
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November 18, 2009
MORE IMPORTANT INFORMATION FOR Shadow Woood Country Club MEMBERS
The Member Board thanks everyone who attended our Town Hall meetings and those who listened to the sessions on our telephone call in system. We know that the meetings were long and we thank you for your patience and attention. There was a lot of important information that we needed to share with you.
Very soon we will be posting a recording of one of the sessions on our secure website. For those of you who did not attend one of the sessions, we urge you to listen to this recording.
Recent Ruling on Mediterra Lawsuit
Late yesterday we learned that a judge in Collier County Circuit Court granted summary judgment against Long Bay Partners (LBP) in favor of a non resident member of Mediterra who filed suit to recover his membership deposit.
With respect to the judgment entered against LBP concerning the membership deposit refund, we understand the Judge made an oral ruling. We are awaiting entry of a written decision before commenting on this matter. We also understand that LBP continues to refuse to settle any of the membership deposit claims and is appealing the ruling. However, our preliminary thinking is that the judgment changes nothing with respect to the plan for Shadow Wood Country Club, Inc. (SWCC) to buy the club.
Assuming the ruling is appealed, there will be no final disposition on the lawsuit for a considerable period of time. Furthermore, if the ruling forces LBP into bankruptcy, we continue to believe that the deposit refund claims will have little value (perhaps 10 to 20 cents on the dollar). Importantly, in bankruptcy, each deposit claimant may be allowed a priority claim in the approximate amount of $2,500 payable after payment of professional fees incurred in the bankruptcy by LBP and official creditor committees., operating costs in the bankruptcy, and of course, the satisfaction of Key Bank’s liens. The remainder of the membership deposit claims will be deemed unsecured claims with no priority. The bankruptcy process will take at least a year and possibly many years before any distribution is made. The club will be put to auction forcing SWCC to compete against developers and other third parties with no intention of continuing to operate the club for the benefit of its members.
In Contrast, under SWCC’s plan for the new club, members have the potential of receiving up to 70% of their membership deposits previously paid to LBP upon resignation. The club will be operated for the benefit of its members with a board elected by the membership. And, perhaps more importantly, our lifestyles will be preserved and our real estate values will be salvaged.
In addition, BBG recently released the following information in a press release on this matter:
“Although the circumstances in the Bolles case are different from those in other cases concerning the refund of membership deposits, we believe the court misperceived the law and we will vigorously appeal the ruling. Unfortunately, the appeals process will necessarily prolong the dispute well into 2010.
This case is different from other pending matters because the membership contract included specific and unique language that appeared only in a very limited number of membership contracts.”
Only 13 Days Left To Return Membership Applications, Waivers, And Checks
We are very encouraged by the number of members who have already turned in their membership documents and checks. We are confident that we will achieve our goal of at least 90 % of our members joining the New Club.
Member Board Representatives Available November 19-30
Member Board Representatives will be available in the office at SWCC to answer any questions or provide any necessary assistance to members or non-members who are joining or who are thinking of joining the New Club.
Hours for Member Board assistance are: Monday-Friday (except Thanksgiving Day)
from 11:00 AM -3:00 PM
_____________________________________________________________________________________________________
Dated 11/19/2009
While I agree with Sally Newi that those who paid BWJ's dues for the year were severely shortchanged and giving them 4 1/2 months dues free would only be right, taking matters one step further, what about all those residents who were sold on BWJ's being an included, free, amenity when we bought in here?
There seems to be no shortage of RIGHT THINGS TO DO that BBG has not done right. Peeling away a free amenity and then selling it back to us is just one more.
Art Herman
________________________________________________________________________________________________
UPDATED: November 18, 2009
_____________________________________________________________________________________________________
Subject: Re: Backwater Jacks 2010 Social Dues (See letter below)
Date: 11/18/2009 3:42:46 P.M. Eastern Standard Time
Dear Bob,
After reading your "Good News" email regarding the Marina Club I must make a few comments. It is very nice that Backwater's is now charging monthly dues, rather than yearly. Last December 7th I paid $344.00 for my 2009 dues. I was able to use "the club" for four months before it was closed on May 4th, 2009 for 4 1/2 months. I feel that the members who paid for a membership that was unavailable to them should not have to pay monthly dues for 4 1/2 months of the 2010 season. That comes out to a little over $115. At a time when BBG desperately needs all the positive PR it can get, this would be THE RIGHT THING TO DO!
Sally Newi
________________________________________________________________________________________________
Sent: 11/18/2009 12:39:40 P.M. Eastern Standard Time
Subj: Backwater Jacks 2010 Social Dues
Good news from the Bonita Bay Marina Club! Backwater Jacks will ring in the New Year with an exciting new program for current Social Members of the Marina Club!
As members, you will notice on your November statement there are no more yearly dues…just monthly dues of $27 will be reflected on your monthly statements and only for the months that the now-seasonal restaurant is open. This month’s statement will reflect the January dues, which are due by December 31, 2009.
We will also introduce a “Preview Program” for current resident non-members of the Marina Club in an effort to support the financial sustainability of Backwater Jacks. This program will allow residents to preview Backwater Jacks for the same monthly dues that members pay; and their Initiation Fee will be waived until the program ends on 1/1/2011.
Continue to enjoy complimentary coffee, each morning, from 7:30 - 10:00 a.m., and lunch and dinner served daily. Our lively bar has weekly live entertainment, seven televisions, and a ½ Price Happy Hour from 4:00 – 6:00 p.m. daily.
Why fight the traffic and crowds outside our gates when you can dine in a casual, comfortable, and affordable restaurant on the water overlooking the boats at our own marina? And when family and friends visit, bring them along as your guests. You’ll love bringing your children and grandchildren to enjoy the “Little Pirates Menu.” Neighborhood holiday parties, family reunions, and Thanksgiving dinners are already being reserved.
Lisa, our Manager, and her friendly service staff look forward to seeing you often and introducing you to our new, casual menu, as well as having you enjoy Chef Darin’s nightly specials like Walleye Pike, Whole Main Lobster, and our special Tuesday night “to-go” affordable family specials. Enjoy!
Sincerely,
Bob Staehle
General Manager
________________________________________________________________________________________________
UPDATED: November 17, 2009
_____________________________________________________________________________________________________
Subject: BBG LOSES MEDITERRA COURT CASE -- ORDERED TO PAY REFUND IN FULL
Date: 11/17/2009
From: Michael Lissack
Judge Hugh Hayes (Collier County Circuit Court) granted summary judgment
against Long Bay Partners and in favor of Glenn Bolles, a resigned
non-resident Mediterra member, on his breach of contract count for the
recovery of his $180,000 membership deposit. The judge did not buy BBG’s
position one bit that it is allowed to amend the terms of the membership
agreement unilaterally and he had no trouble distinguishing the “club
cases.” The language of the “instant refundability” provision of the
non-resident membership agreement is not identical to the language of
the resident membership agreement, but the legal principal is the same.
A transcript of the hearing should be available in the next few days.
________________________________________________________________________________________________
UPDATED: November 16, 2009
_____________________________________________________________________________________________________
Sent: 11/16/2009
3rd OPEN LETTER TO PRESENT@ FUTURE RESIGNED/
DOWNGRADED BBC MEMBERS
Ladies @ Gentlemen:
This is in response to a recent request for a Status Report.
The authoring of the two previously "Open Letters" Posted
on the Bay Watch News was for the purpose of stimulating
an awareness among BBC Resigned/Downgraded Members to
their tenuous situation and to provide a process to exchange
information and strategy. The process has proven productive.
It appears clear that the Resigned/Downgraded BBC Members
are not being represented in the pending negotiations and
litigation. This is of considerable concern to many. The Evans
lawsuit perhaps will reach Trial in early 2010. The TOC is
taking an active role in the handling of the litigation. Some
intend to "wait and see" how the Evans litigation concludes
before proceeding with their own lawsuit. Some intend to do nothing for the time being to see if settlement negotiations are successful and whether the Resigned/Downgraded Members somehow will be included in the settlement, AND some would prefer to file their lawsuit now, which of course they are free to do. Maybe a consensus is
emerging to closely monitor the pending litigation and negotiations and to schedule a Meeting in BB in February to review the entire
situation. In the interim, anyone is free to file their lawsuit if such is their desire. Some discussions have occurred with Counsel and their names are available upon request.
Again, I must repeat that I have not been functioning as an Attorney
in these matters. I am representing no one, just exchanging thoughts and ideas with Members similarly situated.
Also I must advise that my personal situation is changing. Family
Health issues leave me less time and energy for this endeavor
mandating my withdrawal from further active involvement. An
increasing number of motivated persons are becoming active
and I am hopeful that someone will step forward in a leadership
role. This shall be my last Report on these matters.
Best of luck and God Bless.
BOB VAN VOOREN
________________________________________________________________________________________________
Bonita Bay Club Turnover Committee
November 16, 2009
Dear Fellow Bonita Bay Club Members,
This is the thirty-first communication from your Turnover Committee (the "TOC" or the "Committee").
Our thirtieth communication consisted of an update on the status of our negotiations, a report on an initiative undertaken by several members to get downgrade letters signed by willing members, an announcement of a survey of members that the TOC had decided to conduct, further details on the town hall meetings, an update on the verification process with respect to BB Group's commitment to devote the cash flow of the Club exclusively to Club purposes until January 31, 2010 and an update on contributions from members to the TOC.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
Status of Negotiations
Your Committee met again with BB Group on November 9, 2009. This meeting, like previous meetings, was constructive and we again explored possible alternative deal structures. We are also pleased to report that David Lucas and Brian Lucas also participated in the last several meetings along with Tim Boates and other members of the BB Group/RAS team.
Another meeting is scheduled with BB Group for this week.
Town Hall Meetings
On November 11 and 14, 2009, "town hall" meetings were held by your Committee. These meetings were open to all residents of Bonita Bay and were very well attended. Following a brief presentation from the members of the TOC, the attendees asked many excellent questions and made quite a few helpful comments.
We apologize to the members who tried to participate in the November 11 meetings by telephone. We understand that technical problems made this difficult or impossible. A different service provider was used on November 14 and this arrangement seemed to work better.
Survey Results
From November 4 until November 14, 2009 the TOC conducted a survey to determine the willingness of the members of the Club to have BB Group continue to own and operate the Club and to determine the level of support among members to sign a letter which would state that, if a transaction had not been agreed to by a deadline date, the members would thereby automatically downgrade their membership, effective as of the deadline date.
The results of the survey are as follows:
986 members responded to the survey.
In response to the question "Do you want BB Group to continue to own and operate the Bonita Bay Club for the indefinite future?", 52 members (5.3%) answered "Yes" and 928 members (94.7%) answered "No".
Responses were received from 739 golf members (61% of the 1208 golf members), 95 sports members (51% of the 188 sports members), 110 social members and 42 members who have recently downgraded to social memberships pending a successful turnover (together, 33% of the 457 social members).
In response to the question "Would you be willing to sign a letter addressed to BB Group, which would state that if a transaction to turn over the Club to the members has not been agreed to by a deadline date, you would thereby automatically downgrade to a social membership (or resign if a downgrade was not permitted by BB Group) effective as of the deadline date?", 226 members (28.0%) selected December 31, 2009, 367 members (45.5%) selected March 31, 2010 and 214 members (26.5%) answered "No".
Finally, 636 members authorized the TOC to make their names and responses available to the members who plan to prepare letters for members' signatures and 188 members answered "No" to this authorization.
As explained in report #30, the process of organizing the signing of such letters is being planned by several individual members of the Club rather than by the TOC. Two of the members involved in this initiative are Max Lummis (maxlummis@aol.com) and Steve Friesen (s.j.friesen@comcast.net).
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
________________________________________________________________________________________________
UPDATED: November 14 2009
_____________________________________________________________________________________________________
Sent: 11/13/2009
Subj: November 11 article by Linda Heckel
Bonita Bay Group will simply scoop all the new membership fees and after
January 31, 2010 use the money for their own use.
We, the members will be left with these new members paying no initiation for
a year and a half.
The Bonita Bay Group took $ 4,600,000 of Bonita Bay Club members fees last
year for their own use, not our club. The services are declining and the
Club's assets are becoming run down.
The Bonita Bay Group does not have the interests of the Bonita Bay
Club at Heart. They have their own self interest and their banks interests
at heart.
Mark Curry
________________________________________________________________________________________________
UPDATED: November 11, 2009
_____________________________________________________________________________________________________
Sent November 11, 2009
Subject: Preview Program
It is my understanding that the Preview Program has been suspended by BBG at this time. In case BBG would ever want to reinstate this program again I think our members should think of the potential positives that could result to the current members of BBC that have been overlooked.
I have spoken to many members who did not realize that last years preview program that the BBC had was ALSO open to outside non residents. Less than 5 took advantage of the program even with newspaper advertising saying this was the first time in the history of the club that the membership was open to non residents so don't expect people to be flooding the gates. Also consider the revenue the members will receive from the 102 that joined last year it will be 1 million dollars possibly more (102 x approximately 10,000.00 estimated amount per member toward the sale price of the new member owned club. You will also get another 1 million the first year in dues from the preview program of last year. These members who were in the preview program did not pay an id up front either only dues. It is understandable that BBC would have them pay only monthly dues in the new program instead of 1 year up front because if the lawsuits do ultimately force a bankruptcy the club could close down. What potential new members would want to pay 10,000 up front and lose all of their dues.
The BIG plus to the current members to have the preview members pay at the end of 2010 is that ALL of the id will go to the new club NOT BBG! The last program resulted in 4.5 million from the program! Even if only 50 go with the program that could result in a potential 2 million to the new club plus another half million in dues to the new club. Yes they will be paying dues and benefiting BBG in the meantime potentially for only a few months before there is a turnover but a bigger plus to the new club is to get the initiation fees. Also think of the re-sales in BB community currently on the market. You have people who may want to move here now to play golf but no way are they going to purchase a membership and pay 45,000 to join non refundable and possibly have a bankruptcy and unsure of the future of the club so they buy in another community. With this scenario they would move here, preview until the end of the year and then purchase the membership when the future of the club will be known and the new club will immediately get new members which will be greatly needed from day one. Another HUGE plus is that the new club can set the price of the deposit amount at the end of 2010. The seller could even agree to pay their dues until the end of 2010. The last preview program had very little affect on our current members in getting tee times so that should not be a concern for any of our members. Even if the current members chose to downgrade at the end of Dec. to force a bankruptcy these few potential new members is not going to be enough to keep BBG afloat.
s so that should not be a worry to you. This membership plan was created by Creative Golf Marketing which is a nationally recognized membership marketing company working with ONLY high end golf communities. (I suggest you go to their website and look at the other clubs that have done this program with just google them www.creativegolfmarketing.com) This membership plan will not in any way cheapen our beautiful prestigious club. (most of our damage has already been done) .
Linda Heckel
________________________________________________________________________________________________
UPDATED: November 10, 2009
_____________________________________________________________________________________________________
Subject: Survey
Date: 11/10/2009
I've heard some rumors about how the survey results are coming out. I would be willing to be a lot of people would like to change their votes after the article in today's paper. This latest move is the ultimate insult. I hope we all have courage enough to take the right steps now, but I am afraid some would like to keep their heads in the sand and get through another season. Someone suggested today that the only way Bonita Bay can possibly make any money is to charge us to get into the meetings tomorrow!
Dan Corbin
Estancia
_________________________________________________________________________________________________
Sent: 11/10/2009 2:39:11 P.M. Eastern Standard Time
Subj: Consultants opinion for Shadow Woods
Attached is a paper expressing the views of John Johnson on the subject of the implications of a third party purchasing the Shadow Woods clubs. John is a consultant with Club Specialists Intl, the club consulting firm that the SW Member Board engaged to advise on the club conversion.
You have requested that we comment on the relative advantages and disadvantages to the members of (i) a member buy-out versus (ii) a third party sale of SWCC and TCC.
This white paper outlines the principal issues associated with third party ownership of the clubs.
Starting Point
Let me begin with the fact that, in our view, there are only two ways such a third party purchase could realistically take place:
A bankruptcy, which will likely extinguish the Member Redemption Liabilities and Deposit Liabilities entirely, thereby allowing a third party to pay full value for the club assets…
OR…
A tri-party deal involving BBG, The Members, and the Third Party Buyer. Unless the members walk away from their current position, we believe the members would have to agree to allow a third party to acquire, by some negotiated transaction. By the “members” we mean materially ALL members, because even a 90% acceptance factor would still leave 10% of the members in a conflict with BBG to the tune of $5 million or so, which is precisely what BBG could not accept. Further, such a negotiated arrangement must be seen as difficult to negotiate before the members acquire the assets, and would likely undermine whatever position members may have before the transaction closes.
As you know, we believe the bankruptcy option has likely lingered as an option for BBG in the background during the entire negotiating process you have just completed. The prospect of eliminating all member claims in one fell swoop through bankruptcy must be recognized as a formidable temptation that your Board has successfully avoided, and should not be overlooked.
In any event, the financial alternatives seem to boil down as follows:
Either pay $5000 or so and buy the club, to control destiny or…
Save $5,000 or so and let a third party control destiny.
Possible Impacts of Third Party Transactions
Presuming that a difficult tri-party party sale could be engineered, the impact on members would include the following prospects:
Delayed Redemptions - Any third party buyer would have to work out some sort of solution for redemptions to resigning members without a large cash payment, otherwise the seller is right back where they started price wise. For this reason, BBG recently attempted to modify documents and implement the “one in four” rule, which if accepted, would allow the third party buyer to retain 75% of new membership proceeds, and apply 25% to member redemptions. In our view, (i) this was done to make the clubs more marketable to third parties, and (ii) the members would very likely be worse off relative to your proposed acquisition program, and (iii) would likely be waiting for an extended period of time before any refunds might be received. Your internal pro-formas have confirmed the likelihood of this outcome.
Under Member Ownership, members will have a better long term refund policy relative to any third party buyer.
(Note from JJ: This is one of your current issues… making sure it does not pay well for a member to resign and seek superior refunds with New Club as a financial backer for BBG under the deal.)
No Control by Members: Under third party ownership, members would likely loose control over what happens at the club, including both day-to-day operations as well as strategic direction over the long run. Certainly “Advisory Boards” could be formed, but such advisory boards cannot compel a third party owner to do anything they don’t want to do, any more you’re your advisory boards could with BBG in the past. In tough times, the members can expect all major decisions to favor the third party’s interests in NOI and asset value, at the expense of member interests.
All Board members and many members can testify feeling “not in control” the recent past, and there is no reason to believe it will change with a different owner besides BBG.
Higher Dues Likely: Third party owners will profess that under their ownership, the club can be operated more efficiently, and dues could be contained. This can only be true if it actually costs more with members in of operations and capital, which we believe is not correct. With some professional help as needed, there is no reason why the club can’t be just as successful under member control.
Regardless of who owns the assets, dues must be high enough to cover operations and capital needs over the long haul. Under third party ownership, dues must ALSO cover a profit element taken out of the business to provide return to the owner. In round numbers, we would benchmark the additional dues component under 3rd party ownership to be at least $1.0 million annually, effectively incorporated into dues requirements going forward.
If the members do the math, they will quickly realize that this translates into a baseline 10% return or so against their individual purchase contributions (For example, taken against any price above $8.25 Million).
In order to protect the members under any third party ownership, the Board would have to negotiate some kind of cap on dues increases, or the members will be more vulnerable down the road.
Negotiated Dues Caps are hard to get from third party owners without built in increases that protect THEM.
What’s the point of agreeing in advance to certain dues increases, when the club is already cash flowing?
One could argue that the 10% benchmark is a minimum benefit for each family who participates in the Member Buyout, not counting higher property values or the value of peace of mind.
Lost Marketing Value of Member Ownership: Being a “member owned club” has become the prevailing differentiator for communities like the Brooks to compete for residential buyers in today’s resale marketplace. Clubs like Palmira (among others) are capitalizing on their ability to claim that their troubles are forever behind them because they now own and control their club. SWCC and TCC stand to gain this advantage in resales if they proceed with the purchase.
By contrast, under third party ownership, SWCC and the other communities will only be able to claim they have a “new owner”, and the marketing value of this option is simply not as attractive to new buyers in today’s market place, no matter how great the new owner might initially appear. Each property owner should be carefully considering not only their own position, but also those of their next home buyer, whenever that may occur.
The respective Board members realize that new memberships come from resale buyers, and the better the resale market at The Brooks, the better the club will succeed going forward. Being a member owned club will be important to preserve property values.
Which sounds better to your next buyer? That the members own and control the club, or that some third party owns and controls the club?
With all the uncertainty of developers and investors today, the Board is convinced that “member ownership and control” sounds a lot better to most new buyers, and has a ring of “successful resolution” that other options simply don’t have.
Risk of Future Third Party Sale or Equity Conversion: It must be recognized that any third party owner only has two possible exit strategies for their investment. One is to resell the club assets to another owner based on capitalized NOI, (or borrow money to pay themselves based on NOI). The other option is to sell the club to the members in the future.
Allowing a third party owner to buy now only “kicks the can down the road”, and does not provide a permanent solution.
The members have already seen the kind of NOI enhancement techniques used by BBG to prepare the assets for sale, including (i) deferred maintenance, (ii) reduced capital expenditure, (ii) and reduced service levels.
These techniques will also be necessary for any third party owner as they come to the end of their holding period in (say) five to seven years, because they have the effect of making the asset more attractive for the next owner buying for income. Indeed, it is the profit component of member dues that creates asset value.
These same NOI enhancement techniques will also likely be used to make equity conversion more attractive to members in the future. Few strategies are more effective at making members want to own their club than deferring maintenance and cutting services. You can expect that five to seven years down the road your communities will be faced with materially identical conditions as you are facing today, with two exceptions:
The cost to individual members in a stronger market will likely be higher than the price today.
The members will not enjoy the leverage they enjoy today, because the refund obligations and advantageous circumstances that exit today will likely be lost in the near future.
Lost Opportunity to Reduce the Golf Cap: As you know, SWCC has a cap of 1050 golf members today, which would be reduced under the member acquisition, making for a better golfing experience all around. If a third party owner were to acquire the club, you can expect the cap to remain as is, for two reasons:
BBG will need to sell the assets with the cap in place to maximize value, and the buyer will be forced to retain the cap in order to maximize revenues and returns. By contrast, we believe that the cap reduction contemplated by your proposed purchase has not been emphasized enough, and will have the effect of enhancing SWCC’s appeal to buyers in the future.
In the future, any cap reductions will likely involve some form of compensation to the third party owner for giving up the sales proceeds and NOI benefits of the extra golf memberships. You have already seen BBG claim the value of these memberships in their deliberations with you. Nothing can prevent the next owner from making the same value claims in the future, and they likely will.
This is your chance to get the cap down to where it should be, and not risk having to pay extra to buy the golf memberships out later.
Lost Opportunity to Deal with Third Parties Directly: You have heard CSI suggest that even if the members might prefer third party ownership with deep pockets, the members would still be better off dealing with third parties themselves rather than standing on the sidelines and watching BBG make similar deals. For example:
Club Corp would entertain a proposition whereby the members could remain owners of the club, with Club Corp advancing capital under a structured arrangement where they receive management fees plus a return on their capital. This could be as simple as member-owners leasing the facilities to Club Corp for (say) $1 per year, and Club Corp receiving a return on the capital they advance out of profits. Club Corp has a specific program designed for member owned clubs where (i) the risk of deficits is taken off the member shoulders, (ii) Club Corp capital is deployed for acquisition, capital & refurbishment, (iii) members have zero risk of assessments, and (iv) the club is eventually restored to member control after they have recaptured their capital and prescribed returns. While dues might be affected by this option, at least the members would have greater influence over dues going forward, and would still own the assets. To do this, the members must own the club assets.
Century Golf, Reynolds Plantation and Other Buyers are also out there in the market place looking for opportunities to acquire private club assets. Assuming that member liabilities could be resolved, we see no reason why such opportunities could not be employed after completion of the acquisition now on the table, for the greater benefit of the members instead of BBG. That is:
With the members owning the assets, nothing prevents the members from selling the assets, or possibly a financial interest in the club assets, to such a third party. If it were true that the value of the club assets is higher with member liabilities resolved, then the members would benefit from such price arbitrage instead of BBG. The members must own the club to do this.
TCC presents a special circumstance whereby the Beach Club could also be the subject of an attractive proposition benefitting the members. Certainly there are other clubs in the market that do not have a beach club presence, and TCC members could explore any number of joint options with these other clubs without loosing their assets or loosing their beach access. To do this the members must own the assets.
Members Should Drive the Deal and Benefit Now: To the extent there is any asset value arbitrage or capital recapture to be gained through a structured transaction with any third party, the members should get the benefit. Further, it is far better for the members to be driving these deal options, instead of relinquishing control to third parties, and releasing their unique position today without some benefit gained at the same time.
If there is a benefit from any deal with third parties, the members should get that benefit.
We can look at third party options later, from a position of strength as owners.
(Note from JJ: Item C above is a hugely powerful argument that (i) makes gut sense, (ii) completely negates opposition and (iii) appeals to those who still feel betrayed. It tells the person who wants a third party deal that they can help you explore the option after acquisition… and that’s a great reason why they should sign up with you.)
Lost Opportunity to Acquire Under the Best Possible Terms: Economic conditions at large are creating extraordinary asset buying opportunities in practically every asset class, including club assets. CSI believes that the negotiated terms now agreed under the term sheet are likely the best terms the members will ever get going forward, with a relatively nominal cost paid by individual members to acquire the assets so critical to their lifestyles, property values, and future peace of mind going forward.
Lifestyles - Is there any member who truly believes a third party will operate and deliver service better than the members themselves? For so many members, the club is the center of their social lives and fulfillment of recreation and entertainment that they worked so hard for so many years to achieve. By considering a third party sale, that lifestyle will essentially be in the hands of that third party.
Now is the opportunity to take that lifestyle into our own hands, and make sure this never happens again.
Property Values – Multiply 1400 Member residences by any average home value you choose, and you get a huge investment collectively represented by the members. How much are our home values increased by actually owning the surrounding amenities that create a lot of that property value in the first place? Most investment managers would likely agree that (say $5000) is a modest investment taken in the context of your potential recoverable home values down the road.
Now is the time to preserve your home values at a nominal incremental cost, and make sure you AND ALSO your next buyer don’t have to pay more in the future.
Peace of Mind – As the Board looks back on all the ups and downs… on agains off agains… and surprise turns in the road, all Board members shudder to think of what could happen if good men and women stand by and do not acquire the club now. The Board has spent months, days and hours analyzing options, taking feedback from members, and witnessing first hand the anxiety and concern of all property owners, as well as all their varied views on the subject. You have negotiated a favorable deal that is now at hand. The price of this uncertainty has hit us not only financially, but also in our hearts, and our happiness.
Now is the time to buy our peace of mind inexpensively, knowing that (i) professional management is easily obtained if desired, (ii) third party deals can be considered later, and (iii) the alternatives to not doing this deal seem to bring no peace of mind at all.
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Sent: 11/10/2009
Subj: Preview Members - Notice
All new "Preview Members" will have to enter BB through the Service Entrance. After all... they are "temporary maintenance" folks hired to fix BBG's cash problem until the BBG bankruptcy is completed.
Harvey Siegel
Egrets Landing
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UPDATED: November 9, 2009
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To: 
Bay Watch News
Bay Watch NewsFrom: Geoffrey Mason
Geoffrey Mason Mahogany Ridge
Date: 11/9/09
Subject: Further devaluation of our beloved community
I have a suggestion . . .
Lay off the (terrific) personnel who presently operate the Main Gate,
and the North Gate.
That way, these new (sorely-needed) Preview Members will have no
trouble AT ALL accessing their fabulous new "privileges!"
This entire affair is beginning to read like a Fellini movie . . .
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SUMMARY OF MEETING
The annual meeting of the Bonita Bay Community Association was held on Thursday November 5.
Some of the agenda items discussed:
1.Of the three seats on the Board of Directors, one seat will now be held by a resident.
Of the three seats on the Board of Directors, one seat will now be held by a resident.2.There are approximately 283 units left to be built and sold in Bonita Bay. This includes the 15 Baywoods Phase II lots and two high rises – Esperia North and another to be named - BBG owns the land and Lutgert has the option to build.
There are approximately 283 units left to be built and sold in Bonita Bay. This includes the 15 Baywoods Phase II lots and two high rises – Esperia North and another to be named - BBG owns the land and Lutgert has the option to build.3.There were over 1.6 million cars that came through the gate last year.
There were over 1.6 million cars that came through the gate last year.4.The Sheriff’s hours inside the community have been reduced to four hours per week. But there will be more community patrols and an additional speed monitoring device.
The Sheriff’s hours inside the community have been reduced to four hours per week. But there will be more community patrols and an additional speed monitoring device.5.The price for tickets to the Old Fashioned Social will be $12 per resident. The reason for this charge is that last year over 3,500 tickets were distributed but there were over 750 “no shows”. It is necessary to give the food service vendors a more accurate estimate of attendees.
The price for tickets to the Old Fashioned Social will be $12 per resident. The reason for this charge is that last year over 3,500 tickets were distributed but there were over 750 “no shows”. It is necessary to give the food service vendors a more accurate estimate of attendees.6.The operating assessment for a single family house will be raised from $2,439 to $2,488 and condos, villas, coach homes and high rises from $2,017 to $2,058.
The operating assessment for a single family house will be raised from $2,439 to $2,488 and condos, villas, coach homes and high rises from $2,017 to $2,058. 7.New decking, lighting and stairs were installed at the Beach Club over the summer.
New decking, lighting and stairs were installed at the Beach Club over the summer.8.Currently under construction is a new web site www.BonitaBayResidents.com.
Currently under construction is a new web site www.BonitaBayResidents.com.9.The auditor’s report is available at the Community Association for any resident who would like to review it.
The auditor’s report is available at the Community Association for any resident who would like to review it.Q & A Comments and Questions:
One member noted that the proposed raise in the assessment of $40 - $50 per unit is not much but a good public relations opportunity was missed by raising it at all. Another member stated that this was his first time attending but he was struck as to how the board didn’t answer questions. In response to a question about the water supply, Joey Garon stated that there are no competitive bids sought for the water supply. RCS has a perpetual 30 year contract that is renewable annually.As Reported by Don Gorman
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UPDATED: November 8, 2009
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Sent: Sat, November 7, 2009
Last month BBG changed the rules to allow for 1 member to be reimbursed for every 3 new members that pay initiation fees coming in.
Then yesterday BBG MAKES THE ENTIRE CLUB OPEN TO THE PUBLIC BY NOT REQUIRING ANY INITIATION DEPOSIT AT ALL !!!
How many leaving does it take for someone to get a refund now that there is NO initiation fee to join?
Bonita Bay is now open to the general public with no requirements or minimums at all.
And there is a survey floating around asking the members if they want BBG to continue running things.
Amazing. Absolutely amazing.
Leo Congeni
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From: Linda Heckel
To: Bay Watch News
Sent: 11/7/2009
Subj: Creative Golf Marketing
The preview program that BBG currently relaunched was created by Steve Graves of Creative Golf Marketing (attached site) a company that specializes nationally in only the top country clubs in the country and came up with this plan which was initiated over a year ago and endorsed by the Advisory Board and lead to some new non refundable memberships. The only difference with this new plan is the initiation fee is not due until the end of 2010. When and if there is a turnover the new club I assume will also aggressively look to get new members. The fact that we are currently low in membership dues this is a plus for all the current members.
http://www.creativegolfmarketing.com/staff/
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From: Art Herman
If your going to do something, might as well do it right. Here is a suggested ad to generate more Bonita Bay Members.
NEWS FLASH - BONITA BAY CLUB NOW OPEN TO THE GENERAL PUBLIC !!!! - NEWS FLASH
That's right folks. Bonita Bay Group, using Bonita Bay Club again in its eternal quest for cash at any expense, has now sold off any value adding development exclusivity and credibility by opening the doors to the general public.
Now YOU can be a member of what used to be an exclusive Country Club with No down payment or deposits required at all and dues payable on a month to month basis. No residency requirements, long term commitments, background checks or committee acceptance, no security deposits, minimum memberships times or any other obligations.
You have a credit card? .... that's all we care about.You go right to the same line with the folks who paid $100,000 or more to get there.
That's all it takes. And don't worry about your credit card limit because you are only billed a month at a time.
Where else can one play through the season and drop out 3 months later when you go back north? Just think, 5 Golf Courses, Two Clubhouses, A fitness center, Tennis Program and all the amenities of a top rate Country Club can be yours for the unbelievable price of $783 a month plus tax. That means a four month season (December 1st through March 31st) is $3,132. Plus Tax. That's it. No upfront anything. No deposits. Nothing. Nada. Folks, there is NO OTHER CLUB at any quality level selling yearly memberships anywhere near that cheap.
Perhaps the best part of this whole deal is that you get to play alongside other Bonita Bay Members members who paid tens of thousands of dollars for the same amenities you have for free and be entertained as they discuss the merits of being associated with Bonita Bay Group.
It's all part of the Bonita Bay Group philosophy of Do The Right Thing.... for Bonita Bay Group.
Meanwhile, talk about a devaluating real estate move? This action is another short sighted, selfish, desperation move to raise cash flow at current members and all residents expense.
Just one question, since the rules changed last month to 3 in for 1 out, how many will it now take with no deposit requirement?
They can give it any name they want, calling it a Preview Membership or some other such nonsense but putting lipstick on a pig doesn't change it from being a pig.
If this latest action of opening the club to the general public, devaluating your membership deposits completely and further dropping real estate values is not enough for your final straw I cannot imagine what would be.
When is enough enough?
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UPDATED: November 7, 2009
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From: Gene Veto
To: Bay Watch News
Sent: 11/7/2009
Subj: Shadow Wood deal
If you think everyone in Shadow Wood is happy over the BBG deal this is thoughtful and well reasoned contrary opinion by a member. I am posting it on this site since we have no outlet to disseminate this information.
Greetings,
I thought by now that the Advisory Board's plan to purchase Shadow Wood Country Club (“SWCC”) would have fallen by its own weight. Instead, we have the latest iteration (see Term Sheet 11/2/09 and Membership Application Packet), a tangle of words and open-ended commitments which will have long-term consequences contrary to the Board's own stated criteria and objectives. The terms of this latest deal are worse than the deal the Advisory Board already rejected on September 9! (See their September 9 letter to Boates.) We are no longer “assuming” liabilities--we are simply “paying” for them! I can only conclude that the word games and structural contortions are intended to deceive. I urge you not to be stampeded into signing the new membership documents before thoroughly understanding this proposal and receiving satisfactory answers to all your questions from its promoters.
Till recently, I thought I was among very few SWCC members who had strong reservations about this evolving deal and the process by which it was obtained. I have found that not to be the case, as others increasingly have expressed their dismay at the process, the lack of communication, the apparent bidding against ourselves, the price, and the new membership agreement, among many other things.
So, in the interest of offering a viewpoint that will never see the light of day in the “official” BBG/Member Board communications apparatus and before their marketing tsunami rolls over us, I want to raise some issues for your consideration as well as some related questions. Perhaps this will also mark the beginning of thoughtful, informed discussion. My remarks which follow refer solely to the acquisition of SWCC and not to The Commons Club (“TCC”).
The Process
For the past twelve months, the acquisition of SWCC has been a solution in search of a problem. The proximate event was the announcement by Bonita Bay Group (“BBG”) in November, 2008 that they would no longer refund membership deposits to resigning members. This, along with BBG's expressed interest in getting out of the club business and the Advisory Board's predisposition, quickly morphed into an “opportunity” to buy the club. I certainly have no quarrel with the Advisory Board's pursuit of a deal with BBG. I believe that was generally their charge at one point and was supported by a majority of members, including me. But I am reluctant to support a deal at any cost, a deal with onerous terms and conditions, a deal which feels good short-term, but is not financially sound and does not provide a foundation for the long-term viability of the new club.
So, how did we get to this point? Because of a series of false choices offered by the Advisory Board. False choices like: “Either we buy the club now or you won't get any part of your membership deposit back.” “Either we buy the club now or BBG will sell it to someone else.” "Either we buy the club now or real estate values will suffer.” “Either we buy the club now or BBG will shut it down.” “Either we buy the club now or [insert calamity here.]”
But, here we are. We have a deal before us which has its defects, but is improvable.
The Member Board/Advisory Board
Whatever the name, these same seven people comprise the Board of Directors of the not-for-profit corporation making this purchase offer, a corporation of which none of us, to my knowledge, is a member or voted for its Board. They are asking you, by means of your signature to various membership documents, to grant them authority that goes well beyond the members' desires expressed in past surveys and town hall meetings. Well beyond what, I think, any of us ever contemplated. Among other things, they are now asking you to authorize them to pay a final price that is unknown till closing and has no maximum. They are also asking you to authorize borrowing an unspecified amount of money at unspecified terms.
However you feel about granting that kind of authority for this deal, I'll say what others have said privately: if this deal, in its present form, is not closed, it is time for the Member Board/Advisory Board to separate itself from the deal-making function. We need some fresh faces to be involved. We certainly should not give them carte blanche authority to engage in any further negotiations on behalf of the members, whether to “top” another bidder or to negotiate a purchase out of bankruptcy. Similarly, funds held in escrow should not be retained as a blind pool for these other purposes, but should be returned to subscribers.
Let me be clear: if this deal is not closed, it's time to hit the re-set button.
Price
The price is now a “base price” of $4.0 million plus cash payments to buy out resigned members before closing plus a “Supplemental Purchase Price” (an unlimited amount subject only to the exercise of options by either the Buyer or Seller.) I say the Supplemental Purchase Price is unlimited, because Long Bay Partners (“LBP”) would have no reason to exercise its option to terminate the agreement. The greater the amount of membership deposit liabilities we pay for, the happier they are. On our side, I'm uncomfortable having the the Member Board decide how much is too much to pay, before they exercise their option to terminate the deal. Assuming SWCC's share of the Supplemental Purchase Price at $4 million, I'm estimating that this deal will cost $10-$12 million all-in. And don't forget, all this is on top of membership deposits we've already paid of approximately $50 million.
I know, your eyes are glazing over. You may feel: “I don't care whether I end up paying $5,000, $10,000, or even $50,000. And I don't care how much we borrow. I just want to play golf!” Believe me, I've got one foot in that corner.
But price is important, because it is the determinant of bank borrowings, future assessments, future dues, and the number of future memberships sold. How attractive will a new membership be, honestly? Here's what a prospective member will look at in 2010. Pay $40,000 (non-refundable) plus tax to join, pay annual dues of $8,600 plus tax, pay annual capital assessments of $1,000 for the next several years, and there may be dining minimums in the future. Oh yes, we also have $2-$5 million of short-term debt on the books, we won't receive any cash from the next 100 memberships we sell, we've granted security interests in all our real estate, new membership fees also are secured, and, potentially, we're on the hook for refunds to our members of over $30,000,000!
Deposit Liabilities and Waivers
Ridding themselves of membership deposit liabilities has always been the crown jewel for BBG in any deal. And we are, through the waiver (the “Mutual and Conditional Limited Release”) and the Supplemental Purchase Price, doing BBG's dirty work for them. First, for active members, we are effectively transferring BBG's debt to us to the new club's books, giving it a haircut through the new club's refund scheme, and then refunding it to ourselves from future revenues (membership fees) of the new club. As for members who have resigned, we are paying off BBG's debt to them out of the new club's future revenues also. BBG and the Member Board are just parsing words. We're told we are not “assuming” BBG's liabilities, the new club is simply “paying” for them. This is the same old deal-breaker, just dressed up in different clothing and made worse.
Also, bear in mind the tax cost to you of the waiver. Presently, if you withdraw from the club and BBG doesn't comply with the terms of its agreement with you, you have a legal cause of action. Maybe you'll get a judgment, maybe you won't. Maybe you'll collect, but probably not. But there will probably be a tax benefit available: a capital loss, a deduction, or, under the new Madoff rules, maybe a theft loss. This deal requires us to give up, to waive, to extinguish our membership deposit and thus our tax basis in that deposit. It's one thing to lose our deposit;it's another to forego the tax benefits of losing that money.
Last, I don't believe requiring a release, either by LBP as a condition of closing, or the new club as a condition of joining, can withstand legal scrutiny and so will be the source of further litigation--this time with the new club as defendant. Having been on the periphery of a similar situation, I believe that LBP will likely be sued for interference and breach of contract for requiring the waiver. Likewise, the new club is exposed to similar tort liability. I'm not an attorney, so ask someone who is knowledgeable about this, and then tell me if I'm wrong.
New Club Membership Agreement/Getting Your Money Back
To begin with, the new club's subscription agreement is designed to attract disaffected members, rather than to establish a firm financial foundation for a sustainable club. But, in doing so, we're just creating another, smaller version of the alleged BBG Ponzi scheme. It will work as long as you can keep adding members. As the waiting list to withdraw grows over time (and I believe it will, given the economy and the demographics of our membership and our geographic market), redemptions will be payable without the limitation of a vesting schedule. Liabilities will mount and what then? Borrow more money? One way or another, it seems reasonable to think that long before the new club's technical insolvency, the members, out of financial self-preservation, will voluntarily amend the membership agreement and repudiate the redemption promises that are being made now. If this feature (getting back part of what's due you, albeit from your fellow members rather than BBG) is important to you, but is, in fact, illusory, what have you gained?
Irrigation Water
Any deal that does not include ownership or the ironclad, long-term control of the sole source of irrigation water is insanity. The Term Sheet says that “Resource Conservation Systems, Inc. (RCS) shall continue to negotiate in good faith with New Clubs as to mutually acceptable terms of service with New Clubs.” This is a joke, right? RCS is a monopoly: a private, unregulated utility, and an affiliate of BBG/the Lucas family. Why, after all our experience with BBG, would we rely on their “good faith”? And what happens if RCS enters bankruptcy, voluntary or otherwise?
Other Issues, Questions
If this deal is closed, what happens to any cash paid to Long Bay Partners if there is a subsequent bankruptcy and then a successful claim of fraudulent conveyance? Is the money returned to us, or do we become unsecured creditors in a bankruptcy (a dire consequence we have been assured would be avoided by buying the club now)? Can a transaction perfected prior to a bankruptcy be nullified even if there's no fraudulent conveyance? What happens to our money?
One of the early individual Bonita Bay Country Club cases, which is supported by their Turnover Committee, is scheduled for trial February 2, 2010 with a hearing scheduled on December 21 for a motion for summary judgment. Their Turnover Committee believes the chances of winning at trial are “very good”. Other single plaintiff complaints are also proceeding, one having a hearing date in January. It is my understanding, that once there are three creditors with undisputed claims for money owed, a petition for involuntary bankruptcy may be (and I suppose will be) filed.
The tie-in with The Commons Club deal is problematic. The closings of the two deals are mutually contingent, so that just reduces the probability of success for the SWCC deal alone. And joining the two can't possibly have been for the purpose of obtaining a lower price. The price for SWCC has increased!
Depositing proceeds of new membership fees into an escrow account jointly controlled by Long Bay Partners and granting a security interest in that account rubs me the wrong way, given their past treatment of us. And I understand why LBP wants it, but any restriction on the price of new club memberships (particularly a minimum price) really hurts the new club. It also hurts LBP, but apparently they don't understand that.
Thanks for hearing me out. I'm speaking for myself--no one else. These are my opinions and judgments, based on the information available to me at this time. If I am mistaken factually, I will appreciate your correction. And if you think there is merit in anything I've said, please let me know.
Feel free to forward this email to other members. And that includes the Member Board. I haven't included them on this distribution list because I have emailed all of them in the past with questions and suggestions. I've never received an answer or even an acknowledgment that I contacted them.
Gene Veto
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UPDATED: November 6, 2009
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Sent: 11/6/2009
Subj: Preview membership
The preview membership sure doesn't sound to me like the BBG is in a sellng mode. What do we have to do to get them to commit to negotiate in good faith. How about a date certain threat.
Hunter Caffee
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Sent: 11/6/2009 2:55:36 P.M. Eastern Standard Time
Subj: Mr Paul Thompson's letter.
Dear Mr. Thompson,
The obvious answer to your question" what do I get for this" is that
you hope to retain the value of your property by supporting a member
take over. If BBG continues to run our club the way they have in the
past 2 years you will be able to watch, from "outside ownership" the
value of those properties decrease. Tell me why you would even buy in
BB with the present problems? Because it's cheap? If that is the
reason merely wait another year under their management and it will be
even cheaper. What I do not understand is that people who live in this
community don't realize what is happening. BBG has destroyed its own
reputation and with it the value of yours and my property. If 150.00
is that hard to spend on trying to hold your value then you ought to
think twice about another property.
JIm Papandrea
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Sent: 11/6/2009
Subj: Preview Memberships
To Whom it May Concern,
The idea of anyone being able to have equal priority on a tee time sheet without making the same long term commitment (equity) is outrageous. These people are also allowed to bring guests! This so-called 'preview membership' is supposed to be good until January of 2011. Who's to say that date would not be extended?
Golf 4 days a week at any of 5 golf courses…average 20 rounds a month for a rough cost of $800/mo or $40+ and cart fees per round…seems like a great deal to me. Why would I make an equity investment?
Regards,
Bob Cooling
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Subject: Questions
Date: 11/5/2009
Sirs:
I am a owner in Wild Pines and soon to buy a second property in Burning Tree. I have owned there for six years. I am not a member of the Bonita Bay Club or any other club or facility in Bonita Bay. I have received my second letter about this survey and address information. I responded to the first letter with all information.
My question is, Since I am not a member of the Bonita Bay club, nor can I afford such membership, what does this transfer of ownership do for me? Will I suddenly be able to dine, golf, swim or what ever else there is to do over there or does this still only apply to the current members?
Is this transistion just for the members of the club or all residents? I would support allowing residents, owners and quests the right to use these facilities with some kind of reasonable fees.
Since I live in New Mexico and normally only come down once a year, I am very unfamiliar with this transistion or what it will do for everyone.
Simply why should I give you $150 for something I will never be able to use?
I am sure this information may have been put out before, to everyone by email or maybe by mail. Simply I have not received any correspondence to this effect. If I see any real benefit to giving any money to this effort, I need to see what it will do for me and my family.
Mr. Paul Thompson MBA/TM
Wild Pines and soon to be a Burning Tree owner
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From: Frank Tuttle
Sent: Thu, Nov 5, 2009 9:46 pm
Subject: Bonita Bay Club
To the folks in The Hamptons who are not members of the Bonita Bay Club,
I just thought I'd take this opportunity to express a personal opinion. Tonight I read the report of the Bonita Bay Club Turnover Committee and noticed that only 35 non-members within all of Bonita Bay have responded to the Club's request for financial support ($125) of their efforts to acquire the Club from the Bonita Bay Group. Nancy and I are not members of the Bonita Bay Club, but we believe that, at a minimum, 20% of the market value of our home is a consequence of the Club. Thus, it is with no small concern that I've learned so many non-members seem unaware of the role that the Club plays in making Bonita Bay a choice place to live. I believe those Club members who are working to resolve the future of the Club are due the support of all non-members because all of us in Bonita Bay will be the beneficiaries of a successful turnover.
Frank Tuttle
PS: The $125 contribution is redeemable in the Club dinning room...in case you didn't know!
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____________________________________________________________________________________________________
UPDATED: November 5, 2009
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Preview Monthly Membership Program
2009/2010
Preview Golf Membership provides full access to all of the Club’s facilities and amenities to include golf, tennis, swim, fitness, dining, clubhouse and all social related events and activities.
Preview Sports Membership provides access to all the Club’s facilities and amenities to include tennis, swim, fitness, dining, clubhouse and all social related events and activities. Sports Members may also play golf April 16-December 31 at the prevailing guest rate.
A valid approved credit card (MC/Visa) on file is required of all Preview Members. Any fees and charges billed to the Preview Member’s Club account which are 30 days past due will be charged to the credit card on file.
All Preview Members are strongly encouraged to arrange their memberships in advance as to avoid a delay setup and poor staff communication about the new member or guest.
A Preview Membership account is arranged in advance, a temporary member number is issued and charges are conveniently made to the account (specified series of numbers). An itemized statement of all current charges is presented to the Preview Member prior to departure for payment. If weekend charges occur, a follow-up statement will be mailed or billed to the credit card on file.
Preview Members may bring guests to the Club. The guests must be accompanied by the Preview Member at all times on the golf course, tennis courts, fitness center and in the clubhouse. Preview Member guests are responsible for the applicable guest fee.
Termination of Preview Membership will be on January 1, 2011, unless prior to said date a non-refundable membership is purchased at the published fee. Preview Membership is available only one time.
Former resigned Bonita Bay Club Members may not return to the Club and join as a Preview Member.
We are not involved in the details of the rental arrangements (between the member/property owner and the renter). We do become involved after arrangements are in place whereby we setup the Preview Monthly Membership.
2009/2010 Fee Structure
18 hole cart fee$ 22.00+ taxGolf Preview Member$783.33 + tax/monthly 9 hole cart fee$ 11.00+ taxSports Preview Member$200.00 + tax/monthly Guest Fees- prevailing rate according to Club
Preview Monthly Membership
You are invited to be part of a truly exceptional private country club via
“The Bonita Bay Club Preview Member Program.”
This invitation is open to residents of Bonita Bay Community and non-residents from surrounding communities. The Club is also extending this offer to prospective Members who may be renting during their visit to Southwest Florida.
The monthly fee for the Preview Membership is $783.33 + tax. The monthly fee for the Preview Sports Membership is $200.00 + tax. This “private-club access” program is limited and recallable.
A Preview Membership account is set up, a member number issued, and charges are conveniently made to the temporary account. An itemized statement of all current charges will be mailed monthly.
During the preview membership term, the
Preview Member is entitled to the same use of the
Club facilities and involvement in all Club
activities (excluding Club Championships as
determined by the Club) and usage privileges as
established by the Club. Preview the Club
through December 31, 2010, without having to
pay any initiation fee, only the monthly golf dues.
Preview Members may bring guests to the Club. The guests must be accompanied by the Preview Member at all times on the golf course and in the clubhouse.
Preview Member guests are responsible for the applicable guest fee.
Preview Members are encouraged to participate in social, tennis, fitness, and golf events.
2009/2010 Fee Structure
Golf:$783.33/month + tax
$783.33/month + taxSports:$200.00/month + tax.
$200.00/month + tax.Cart Fees$ 22.00 + tax
$ 22.00 + taxGuest FeesPrevailing rate at time of play
Prevailing rate at time of plays a subject to change
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November 5, 2009
Dear Member,
Thank you for your patience while we transition into seasonal mode in our operational departments. This correspondence is to provide communication on our progress, address outstanding issues and concerns, as well as update you with our seasonal plans. EJ McDonnel is the head golf professional at the home-site courses, while Ric Nalyd is the head golf professional at the Fazio off-site facility. The hiring process for seasonal golf staff is nearing completion and will be finished by the end of this week. We are currently seeing some of the new staff arrive from the north and expect for the membership to notice improved service and near normal staffing levels within the next seven to ten days. The Creekside range opened yesterday morning with brand new Callaway range balls and will remain open for the remainder of the season in accordance with our normal maintenance schedule. On Wednesday, November 11, the outside staff will clear all Titleist range balls from the perimeters of the Marsh range and reopen Thursday morning with all new Callaway product. Regarding golf shop merchandise, new merchandise is arriving daily and is currently being processed into inventory. The golf shop will open on Tuesday morning with a fresh new look and newly stocked merchandise on the shelves.
As many of you have experienced, we have been having problems with golf carts losing their charge during member rounds. The problem has been with the E-Z-Go golf cart chargers. We are continuing to work with E-Z-Go to replace all of the malfunctioning chargers and are receiving the newest model of charger as replacements for the current chargers that are not performing properly. Our cart mechanic is working diligently with our outside staff to identify and replace non-working chargers, as we become aware of their dysfunction. The outside staff has experienced a decrease in golf cars that stop operating on the golf course within the past several days. We will continue to work alongside E-Z-Go to fix the current problems, in order to provide the membership the experience you deserve.
In mid October we performed an air quality analysis from a professional environmental testing company, in response to a concern over the air quality in the main clubhouse registered by a membership group. The men’s and ladies’ locker room areas, the pro shop, and the men’s grill were all tested. The results from the accredited laboratory indicate that no elevated mold conditions exist in any of the tested areas. The details of these reports are available in my office for review by members of your elected Advisory Board.
The East Club operation is being prepared for opening on Friday, November 20. Ric Nalyd and many of his returning staff are anxious to welcome you to the reopening of the Cypress course on that day. The Sabal will then reopen approximately two weeks later. The plan is for those two courses to then alternate daily in hosting member play until the beginning of January, when both will be open. We are anxiously awaiting the arrival of a new fleet of Yamaha carts within the next week, as we quickly gear up for the reopening.
In golf maintenance, we have acquired a significant amount of golf course equipment from TwinEagles by assuming their remaining lease, after which, Bonita Bay will own it. This equipment is in excellent condition and is a welcome addition to our turf maintenance program. Additionally, we are working diligently on gaining competitive bids on upcoming capital projects that include the resurfacing of six tennis courts, the first phase of cart path resurfacing, as well as the resurfacing of the main clubhouse parking lot.
Thank you for continuing to enjoy your membership as well as the wonderful facilities at Bonita Bay Club as your Advisory Board and Turnover Committees work hard to represent your member interests.
Sincerely,
Robert G. Staehle
General Manager of Club Operations
____________________________________________________________________________________________________
UPDATED: November 4, 2009
_____________________________________________________________________________________________________
Bonita Bay Club Turnover Committee
Bonita Bay Club
Turnover Committee
Report #30
November 4, 2009
Dear Fellow Bonita Bay Club Members,
This is the thirtieth communication from your Turnover Committee (the "TOC" or the "Committee").
Our twenty-ninth communication consisted of an update on the status of our negotiations, the announcement of the "Town Hall" meetings planned for November 11 and 14, a report on our efforts to arrange for the verification of BB Group's commitment to devote the cash flow of the Club exclusively for Club purposes until January 31, 2010 and an update on the status of our litigation.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
Status of Negotiations
Your Committee met again with BB Group on November 3, 2009. This meeting was constructive and both sides explained their respective positions on each of the issues involved. We also explored several possible deal structures and discussed some of the details in the proposed transactions between BB Group and Shadow Wood Country Club/Commons Club and between BB Group and Mediterra.
Your Committee emphasized some of the differences between our Club and the clubs at Shadow Wood and Mediterra. These differences include the greater average age of our membership, the larger variation in economic circumstances among our members, the fact that our Club's facilities are older and more in need of refurbishment and repair, and the reality that our members hold actual promissory notes evidencing their initiation deposits.
Another meeting is scheduled with BB Group for next week.
As we previously stated, our objective is to acquire the Club for the members on terms which are fair to the members and that will provide us with a Club that is financially healthy, competitive in the market with competing golf courses in SW Florida, an asset to the Bonita Bay Community, and a reason for prospective home purchasers to want to buy and live in Bonita Bay. We are not willing, and we believe that the majority of the members are not willing, to allow BB Group to continue to own and operate the Club. To establish the validity of this belief, we are conducting a survey of members as described below under "Survey of Members".
Initiative of Some Members
Over the course of the last few months, you Committee has been approached on several occasions by a number of different members of the Club with the suggestion that all members of the Club be invited to sign a letter addressed to BB Group which would state that if a transaction to turn over the Club to the members has not been agreed to by some deadline date, that each signatory would thereby automatically downgrade or resign their membership in the Club.
The TOC has considered the merits of this approach on several occasions and has sought advice from legal counsel. We decided initially to lay out the options for each member to decide for themselves whether to continue to pay their dues, take a leave of absence, downgrade or resign. However, the prospect of BB Group continuing to apply the funds paid to the Club by our members to meet other BB Group needs after January 31, 2010 has caused your Committee to reconsider the alternative, as proposed by several members, of having these members invite other members to sign a letter addressed to BB Group. We have decided that, rather than the TOC directly organizing such a letter signing, we will conduct a survey of the members to see whether or not they would support signing such a letter.
Survey of Members
In our meetings with BB Group, their representatives have expressed some skepticism to our assertion that the members of the Club are unwilling to have BB Group continue to own and operate the Club. In order to convince BB Group that the members do not want BB Group to continue to own and operate the Club and that the members are prepared to take whatever actions are necessary to encourage BB Group to turn over the Club to the members as soon as possible, the TOC has decided to conduct a survey of all members. The full text of the survey is attached as Schedule A.
In addition to asking all members whether or not they want BB Group to continue to own and operate the Club, the survey asks the golf and sports members whether or not they would be willing to sign a letter, to be prepared by some of our members, agreeing to downgrade their memberships on December 31, 2009 or on March 31, 2010 if a transaction to turn over the Club has not been agreed to be those dates.
The survey will be open until November 14, 2009 unless extended. The results of the survey will be reported to the members following the completion of the survey.
In order to ensure that each response comes from a member of the Club and that each membership only responds once to the survey, it is necessary for us to request that each respondent to the survey provide their name and membership number. All responses will be treated confidentially by the TOC unless the respondent specifically authorizes us to release his/her name to the members who are planning to prepare the letter for member's signatures to be delivered to BB Group.
To take the survey online, please click on the link below.
http://www.surveymonkey.com/s.aspx?sm=qdU5Uwrs5Dk8rxgGOWF1RA_3d_3d
Alternatively, you may complete the attached paper copy of the survey and mail it to Peter Jones, 26021 Osprey Nest Court, Bonita Springs, FL 34134.
Town Hall Meetings
As previously announced, the TOC is planning to hold "town hall" meetings on November 11 and 14, 2009 at the Bonita Bay Clubhouse, for members to receive a brief presentation from your Committee and then to invite questions and comments from the members. Due to space limitations, we are inviting members and residents whose last name begins with A-M to attend at 8:30 a.m. and those with names beginning with N-Z to attend at 1:45 p.m. We are also planning an additional session on Saturday, November 14 at 1:00 p.m. for any members or residents who are unable to attend on November 11.
The Homeowners Transition Committee and the Marina Club Turnover Committee will each conduct similar meetings sequentially following each of our meetings at approximately 10:15 a.m. and noon respectively for those with last names beginning with A-M and at 3:30 p.m. and 5:15 p.m. respectively for those with last names beginning with N-Z. This will permit members and residents to also get an update on all matters relating to the proposed turnover of the Bonita Bay Community Association and the Marina Club. All Bonita Bay homeowners are invited to attend one of the above sessions whether or not they are members of the BB Club. Since space is limited, we would suggest that only one person attend in person from each household. All others are welcome to listen to the meetings by phoning 712-432-8814 and entering the access code of 614954#.
If you plan to attend in person, please RSVP to 495-0200 and indicate the session you plan to attend.
If you would like to submit a question in advance, please email the question by November 8 to newclub@embarqmail.com.
Since parking space is also limited, everyone is encouraged to carpool or ride a bicycle. In order to minimize the cost of these meetings, no refreshments will be served.
Verification of BB Group's Commitment
As previously announced in report #27 on October 6, 2009, BB Group has agreed that all cash flow generated by the Club through January 2010 will be used strictly to fund the cost of Club operations. On the basis of this commitment, the TOC recommended to all members that they continue to pay their dues to the Club during the transition period while negotiations continue.
On October 14 and 21, 2009, members of the TOC and of the Advisory Board met with representatives of BB Group to discuss the matter further. BB Group has agreed to provide the TOC and the Advisory Board with financial statements of the Club each month, starting with those of September 30, 2009 as well as bank statements showing all receipts and disbursements. Invoices will be made available for our inspection and cross checking with the bank statements.
We expect to receive the monthly financial information on about the 10th day of each month and would then meet with BB Group to discuss the figures on about the 17th day of each month. The review of this data each month by the TOC and Advisory Board members will be assisted by a member of the Club who has a background in forensic accounting.
BB Group has provided us with a cash flow forecast for the period October 1, 2009 to January 31, 2010. Based on this forecast, there does not appear to be a significant cash flow surplus or deficiency during the period.
Additional Contributions
In report #25, dated September 29, 2009, your Committee requested an additional $500 from each golf membership, $250 from each sports membership, $125 from each social membership and, for the first time, we requested $125 from each residence of Bonita Bay that does not currently hold a membership in the Club.
As of November 2, 2009, we have received additional contributions from 697 Golf members, 92 Sports members, 168 Social members and 36 residents who are not members of the club, totaling about $400,000.
If you have not already made this additional contribution, please make your check payable to: "BB Turnover Committee, Inc." and mail it to: Mr. John Klocko, 3390 Riviera Lakes Court, Bonita Springs, Florida 34134.
All contributions will be credited to members' accounts in our new member-owned Club. All non-members of the Club who make a contribution will receive a voucher for dining at the new member-owned Club equal to the amount of their contribution. If a turnover is not completed, any unused funds will be returned to those who made contributions, on a pro rata basis.
We plan to publish a list of members and residents who have contributed and the total amounts contributed, so that members can ensure that their future accounts in the new member-owned Club are credited with the correct amounts. Any members or residents who would prefer that their names and contributions not appear on this list should so notify John Klocko by email at klockoj@embarqmail.com.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
Schedule A
BB Turnover Committee
Survey of Members
November 4, 2009
1. Your responses are confidential. To ensure that only members of the Club respond to this survey and that each membership only responds once, please provide you name and membership number below:
a. Last name _____________________________
b. First name _____________________________
c. Membership number _____________________________
2. Do you want BB Group to continue to own and operate the Bonita Bay Club for the indefinite future?
a. Yes
b. No
3. Please indicate the type of membership you hold:
a. Golf membership
b. Sports membership
c. Social membership
d. Recently downgraded to Social membership pending a successful turnover
The last two questions will only be asked of members who are Golf or Sports members.
4. Would you be willing to sign a letter addressed to BB Group, which would state that if a transaction to turn over the Club to the members has not been agreed to by a deadline date, you would thereby automatically downgrade to a social membership (or resign if a downgrade was not permitted by BB Group) effective as of the deadline date?
a. Yes, if the deadline date was December 31, 2009
b. Yes, if the deadline date was March 31, 2010
c. No
5. Are you willing to have your name and responses made available by the TOC to the members who plan to prepare the letter described in the previous question? If not, your responses will be treated as confidential.
a. Yes
b. No
____________________________________________________________________________________________________
Sent: 11/4/2009
Subj: BBG Response to Marine Club TOC
I noted their reason too. Frankly, an asset is worth what the “market” is willing to pay, or the capitalized value of its cash flow…..nothing more. What the seller owes is irrelevant. Hopefully our TOC’s are proceeding on this basis.
Art Horwitz
____________________________________________________________________________________________________
Sent: Tuesday, November 03, 2009
Subject: BBG Response to Marine Club TOC
I found the following statement from Tim Boates especially revealing. It is from the BBG rejection email Tim Boates sent after the Marina Club TOC had not heard from them in two weeks with an answer to their $2 Million Cash Offer.
It apparently took a follow up call by Rick Fioretti to even get this response.
I have been asked to respond to the Letter of Intent on behalf of the Bonita Bay Group. Unfortunately, the cash component of the Offer ($2 million) is insufficient to secure the release of liens held by our secured lenders related to the Marina Club, and we are, accordingly, unable to accept the Offer.
Not a word about value, fairness, "doing The Right Thing", effort to settle this, or anything else. Insufficient to secure the release of liens held by our secured lenders related to the Marina? Like that is our fault! Like any shortfall they need is our responsibility so they can remain in business? The chutzpah on these people knows no bounds!
Just when you think the De / Re- structuring team Bonita Bay Group hired could do no more harm they reach a new low.
And just imagine, BBG is paying the De / Re-Structuring Team, presumably high dollars, to keep hurting us from the the dues we are feeding them. And they are doing it for one reason only....
Because we are letting them.
Isn't it time to choke these people off?
Art Herman
____________________________________________________________________________________________________
UPDATED: November 3, 2009
_____________________________________________________________________________________________________
Sent: 11/2/2009 3:50:24 P.M. Eastern Standard Time
Subj: Update from Marina Club TOC
November 3, 2009
9th Communication from Bonita Bay Marina Club Turnover Committee
Dear Bonita Bay Marina Club Boating and Social Members,
This communication provides an update on progress the Marina Club Turnover Committee has made since our last communication dated October 1, 2009.
Upcoming Town Hall Meetings
The Marina Club Turnover Committee will be participating with the Bonita Bay Club Turnover Committee and the Homeowners Transition Committee in Town Hall Meetings on November 11th and 14th.
Marina Club members are invited to attend on:
· Wednesday, November 11 at 8:30 for last names A through M
· Wednesday, November 11 at 1:45 for last names N through Z or
· Saturday, November 14 at 1:00 for all residents.
All meetings will be held at the Bonita Bay Club. The Town Hall meeting will begin with the Bonita Bay Club TOC and will be followed by the Homeowners Transition Committee and lastly, the Marina Club TOC. Each TOC is allocated 90 minutes for their segment.
RSVP to 495-0200. Space is limited to 600 people at each meeting.
Those unable to attend in person can listen to the proceedings by calling: 712-432-8814 and entering the access code: 614954#.
Everyone is encouraged to carpool or ride your bicycle as parking is limited and bring a bottle of water as no refreshments will be served.
If you have specific questions that you would like to have addressed by the Marina Club Turnover Committee, please send them in advance to bbmcto@aol.com. We hope to see you there.
Independent Appraisal Received
Earlier communications advised that the Marina Club Turnover Committee had commissioned an independent appraisal of the Marina Club property in order to guide an informed offer to purchase the Marina Club. The appraisal was received on October 7th. Because of the sensitive nature of the negotiations, the Marina Club Turnover Committee regrets that the details of the appraisal must remain confidential. Suffice it to say that the appraisal was done thoroughly and provides an important input in the knowledge base necessary to moved ahead successfully.
Review of the Term Sheet Received from Bonita Bay Group in July
BBG proposed that the Marina Club Members form a new entity which would purchase all assets of the Marina Club including: 90 wet slips, 300 dry slips, racks, buildings, Backwater Jacks, parking lot and the parcel of land upon which these facilities are located.
The proposed total purchase price is $10,000,000 which is comprised of two components:
a payment of $5,000,000
the assumption of all liabilities, including the deposit liability for all existing and all resigned members totaling an additional $5,000,000
:
The Marina Club Turnover Committee Made an Offer
On Wednesday, October 9th, the Turnover Committee met to analyze the results of the appraisal and to formulate the next steps. The Committee voted to submit an offer to the Bonita Bay Group, fully recognizing that for an offer to be binding, a vote of the membership of the Marina Club will be required.
On Monday, October 12, the legal firm of Quarles and Brady delivered an offer to David Lucas of Bonita Bay Group and Tim Boates of RAS.
Below is the offer letter submitted to BBG which can be summarized as:
Cash - $2,000,000
Deposit Obligation for non resigned members - $4,500,000
Total $6,500,000
Cover Letter of the Offer
Bonita Bay Group
Attn. Timothy D. Boates,
Chief Restructuring Officer
9990 Coconut Rd., Suite 200
Bonita Springs, FL 34135
Re: Letter of Intent for: Proposed Purchase of the Marina Club Located in Bonita Springs, FL
Dear Mr. Boates:
This letter of intent is presented on behalf of our clients the Marina Club TO, LLC, and sets forth certain non-binding terms under which the parties desire to proceed with the purchase of certain land assets and liabilities as described on Exhibit “A” attached hereto and incorporated herein known as the “Marina Club” located at 25798 Marina Pointe Drive Southwest, Bonita Springs, FL 34134-8716.
The proposal set forth in this letter of intent is not intended as, and does not constitute, a binding agreement by any party, not an agreement by any party to enter into a binding agreement, but is merely intended to specify some of the proposed terms and conditions of the transaction contemplated herein. Neither party may claim any legal rights against the other by reason of signing of this letter and by taking any action in reliance thereon. Each party hereby fully understands that no party shall have any legal obligations to the other, or with respect to the proposed transaction, unless and until all the terms and conditions of the proposed transaction have been negotiated, agreed to by all parties, and fully set forth in a fully executed purchase and sale agreement (the “Contract”). Either party may terminate negotiations or discussions concerning the matters herein referenced at any time for any reason, or no reason whatsoever, prior to the execution of the Contract. Any efforts on the part of either party to investigate the property or perform due diligence or carry out other acts in contemplation of a possible Contract shall not be construed as evidence of a binding agreement or of an intent to enter into a Contract and, accordingly, any reliance on such efforts would be unreasonable.
Components of the Offer
1) Property. The Property to be purchased consists of the Marina Assets described on Exhibit “A” attached hereto and incorporated herein.
2) Purchase Price. The Purchase Price for the Property shall be Six Million Five Hundred Thousand and No/100 Dollars ($6,500,000)
3) Allocation of Purchase Price. The Purchase Price shall be allocated as follows:
Cash: $2,000,000
Non-resigned deposits: $4,500,000 (As of the Effective Date of the Contract assumption of all non-resigned member deposits by Buyer at Closing)
4) Resigned Members. All liabilities associated with existing redemption requests from resigned members received to the Effective Date of Contract shall be the responsibility of the Seller.
5) Deposit. Upon execution of the contract, Buyer shall place in escrow with Quarles & Brady LLP, as escrow agent, a deposit of Ten Thousand and No/100 Dollars ($10,000.00). The deposit is refundable if Buyer elects to terminate the Contract within the Due Diligence Period.
6) Due Diligence Period. Buyer shall have a period of seventy-five (75) days from the date of the Contract to fully investigate the Property. Seller shall provide to Buyer for their review all books and records of the business and all information regarding the real property and the condition of the building and other improvements. Buyer shall have the right to terminate the Contract within the Due diligence Period and receive a full refund of the Deposit.
7) Closing. In the event the Contract is not terminated during the Due Diligence Period, closing shall occur December 31, 2009.
8) Closing Costs and Prorations. Seller shall pay for documentary stamps on the deed. Buyer shall pay for recording the deed and the owner’s title insurance policy. All membership dues for 2010 shall be prorated to the Date of Closing (Billing out in November with due date, December 31st, 2009).
9) Contracts. All accounts payable, notes payable or similar, accrual of advance dues paid by the Marina Club Members, all employee contracts and wage accruals, and all long and short-term executory agreements owed to parties unrelated to the Bonita Bay Group, shall be assigned to Buyer at closing and any expenses be prorated between Seller and Buyer on the Closing Date.
If the foregoing is the basis upon which you would agree to proceed then please sign this letter within fourteen (14) days from the date of this letter of intent and return it to me and we will proceed to prepare a Purchase and Sale Agreement which contains the above provisions and other standard terms and conditions.
Sincerely,
Quarles and Brady, LLP
John D. Humphreville
cc: Mr. David Lucas
Buyer: Richard Fioretti, Chairman Marina Club Turnover Committee, LLC
Exhibit “A”, Marina Club Assets
Assets:
All real property of Marina Club and all improvements located thereon including, but not limited to the following;
90 wet slips;
330 dry slips and dry racks;
Backwater Jacks, and
The parking lot
All furniture, fixtures, equipment, transferable permits, licenses and contracts necessary to the operation of the Marina Club;
All accounts receivable, notes receivable or similar as of the Effective Date of Contract;
All trademarks related to the Marina Club that are owned by Bonita Bay Properties, Inc; and
All supplies, inventory, prepaid expenses and all tangible and intangible property, logos, trademarks, websites, phone numbers, membership lists, data and personal property owned, used or useful at or in connection with the Marina Club Operation.
Liabilities:
All “non-resigned” membership deposit liabilities associated with the Marina Club as of the Effective Date of Contract.
Bonita Bay Response to Offer
Having heard nothing from Bonita Bay Group for 2 weeks, Rick Fioretti called Tim Boates on Monday, October 26. Over the phone, Tim told Rick that the cash component of the offer was too low for Key Bank to even consider. Rick asked for a response in writing and he received the following e-mail from Tim Boates.
From: "Tim Boates" <tboates@rasmanagement.com>
>To: <rickfioretti@comcast.net>
>Cc: <john.humphreville@quarles.com>,
>Date: October 26, 2009 11:44:27 AM EDT
>Subject: Proposed Purchase of the Marina Club at Bonita Bay
Mr. Fioretti:
Thank you for the proposed Letter of Intent dated October 12, 2009 (the "Letter of Intent" or the "Offer"), which we received from your legal counsel at Quarles & Brady (and which is attached hereto), and your phone call of earlier today related to the interest of the Marina Club Turnover Committee in pursuing the acquisition of the assets of the Marina Club located in Bonita Springs, FL (the "Marina Club").
I have been asked to respond to the Letter of Intent on behalf of the Bonita Bay Group. Unfortunately, the cash component of the Offer ($2 million) is insufficient to secure the release of liens held by our secured lenders related to the Marina Club, and we are, accordingly, unable to accept the Offer.
Should you wish to discuss this further, please do not hesitate to contact either myself or Joey Garon, as we would be happy to meet with you to discuss further.
Regards,
Tim Boates
RAS Management Advisors, LLC
(256) 656-4790 (mobile)
Next Steps
Within the next week, the Committee will receive two more important components of our due diligence analyses:
The Engineering Study conducted by W. J. Johnson and Associates will be available to the TOC on Friday, November 6th. This study will evaluate the condition of the physical assets of the Marina Club (restaurant, office, ship’s store, dry stack storage buildings, wet slips, dock structure, mechanical equipment and parking lot). It will: estimate the useful life of the equipment, develop near term expense budgets to bring the facility to operating standard, and will forecast longer term capital expenditures required.
The Accounting Firm Study of the Marina Club financials, conducted by Wiebel, Hennells and Carufe, P.A. should also be completed by the first week of November. They will also be meeting with the Committee upon completion of their analysis.
Scenario Planning: Your Committee has been developing numerous strategic and financial scenarios to make this purchase feasible. With the Engineering information and the CPA firm’s financial analyses in hand, your Committee’s goal is to refine these scenarios in order to affordably reach a successful conclusion with the Bonita Bay Group.
The Marina Club TOC made a solid offer. Bonita Bay Group said, “No”. Making another offer immediately would put us in the position of bidding against ourselves. We will continue to engage the Bonita Bay Group in dialog.
Marina Club Member Contributions
We send a sincere thank you to those who supported the Marina Club Turnover Committee with their contributions. As of October 30, we have received nearly $85,000 in contributions to support the third party expenses of the Marina Club Turnover Committee.
Expense commitments to date include:
Legal - $20,000
D & O Insurance - $ 6,085
Engineering Study – $15,000 - $20,000
Accounting - $15,000 - $20,000
Appraisal - $3,500
Banking Fees- $55
Title Search - $450
Total - $60,090 - $70,090
The expenses to date have largely funded the due diligence activities the Marina Club Turnover Committee has conducted. We anticipate that the major expenses associated with the actual turnover and chartering of a new Marina Club are yet to come. Legal expenses associated with a transition of ownership will be significant.
A shortfall will likely occur unless those Boating and Backwater Jacks members that have not shared the financial burden up to now, forward their contribution as described below.
Should a shortfall in funding occur, we will need to again approach the membership with a request for additional contributions. We sincerely appreciate your continuing support of the Marina Club.
Please Contribute to the future of your Marina Club!
If you have not made a contribution to the Marina Club Turnover Committee, please do so. A successful turnover can only occur with the financial support of members. The Turnover Committee commits that the money will be spent carefully and excess funds will be credited back to donors.
Suggested contributions are as follows:
$350 for Boating Members and
$50 for Social (Backwater Jacks) Members
Please make checks out to the Marina Club TO LLC and mail to:
Vito Soranno, 3972 Woodlake Drive, Bonita Springs, FL 34134.
Please respond to this e-mail address with comments, questions and suggestions: bbmcto@aol.com
We look forward to hearing from you and to seeing you at the Town Hall Meeting,
Your Bonita Bay Marina Club Turnover Committee
Rick Fioretti (Chairman), Vito Soranno (Vice Chairman), Gregg Bedell, Jim Chisholm, Steve Jess, John Maliszewski, Jim Patterson
____________________________________________________________________________________________________
UPDATED: November 2, 2009
_____________________________________________________________________________________________________
TO THE MEMBERS OF SHADOW WOOD COUNTRY CLUB
November 2, 2009
GREAT NEWS !!!!
We are very pleased to inform you that the Boards of Shadow Wood Country Club, Inc. and The Commons Club at the Brooks, Inc. have executed a Term Sheet outlining the major aspects of a purchase offer from Bonita Bay Group (BBG) to sell the Shadow Wood Country Club and the Commons Club assets to the members of those clubs.
The Commons Club will make a separate announcement on their purchase.
This has been a long and arduous process for all of us and we want to thank all of the members for their patience and support to the Member Board to reach this point. We still need to reach an agreement on the final purchase agreement but we believe we can achieve this goal. We are targeting a December 31, 2009 turnover. The major aspects of the agreement are summarized below.
The agreement
•Cash in the amount of $8.25 million will be paid for the assets of SWCC and The Commons Club. The SWCC portion of this is $4.0 million including the sales center. We expect the Shadow Wood Community Association to acquire ownership of the sales center.
Cash in the amount of $8.25 million will be paid for the assets of SWCC and The Commons Club. The SWCC portion of this is $4.0 million including the sales center. We expect the Shadow Wood Community Association to acquire ownership of the sales center.•BBG has agreed to retain the liability for resigned members as of the turnover date. We have agreed to fund these liabilities from future new membership sales. This funding will be reflected as a supplemental purchase price in the transaction and will be quantified after we know the number on the final resigned list.
BBG has agreed to retain the liability for resigned members as of the turnover date. We have agreed to fund these liabilities from future new membership sales. This funding will be reflected as a supplemental purchase price in the transaction and will be quantified after we know the number on the final resigned list.•“Transferability” is an important feature available only for members who join the new club, and remain members until they sell their home. If a member sells his home to a new member, the sales generated from replacement members buying an existing member’s home will first go to the resigning member before any payments to BBG.
“Transferability” is an important feature available only for members who join the new club, and remain members until they sell their home. If a member sells his home to a new member, the sales generated from replacement members buying an existing member’s home will first go to the resigning member before any payments to BBG. •All members who join the new club will be required to sign a waiver of any future claims related to any refundable deposits against BBG, BBG’s lending banks and the new club. All memberships on the resigned list as of October 31, 2009 will be offered a cash payment of 30% of their outstanding refundable deposit within 30 days after closing of the purchase. In order to receive this payment a similar waiver must be signed. Those who do not accept this offer will have their deposit liability retained by Long Bay Partners. If the remaining resigned member liability exceeds $5 million (combined SWCC and TCC), then either BBG or the new clubs will have the right to terminate the transaction. This means that at least 90% of members will need to join the new clubs.
All members who join the new club will be required to sign a waiver of any future claims related to any refundable deposits against BBG, BBG’s lending banks and the new club. All memberships on the resigned list as of October 31, 2009 will be offered a cash payment of 30% of their outstanding refundable deposit within 30 days after closing of the purchase. In order to receive this payment a similar waiver must be signed. Those who do not accept this offer will have their deposit liability retained by Long Bay Partners. If the remaining resigned member liability exceeds $5 million (combined SWCC and TCC), then either BBG or the new clubs will have the right to terminate the transaction. This means that at least 90% of members will need to join the new clubs.A copy of the signed term sheet will be posted on the shadowwood.net website.
The New Club will pay for the initial purchase of Shadow Wood Country Club assets using funds from member conversion fees for the New Club and bank financing. We have been working closely with several banks to secure the bank financing.
Conversion of membership to new club
We have made some changes to the previously published member conversion plan in order to accommodate the different purchase terms.
•The plan will now provide that if a member of the new club sells their home, resigns, and the new homeowner agrees to become a member of the club within 60 days of the closing of the home sale, then the new membership fee, subject to a maximum of the resigning members refundable deposit, will be paid to the resigning member to reduce the refundable deposit.
The plan will now provide that if a member of the new club sells their home, resigns, and the new homeowner agrees to become a member of the club within 60 days of the closing of the home sale, then the new membership fee, subject to a maximum of the resigning members refundable deposit, will be paid to the resigning member to reduce the refundable deposit.•Vesting requirements for refundable member deposits have been eliminated.
Vesting requirements for refundable member deposits have been eliminated.•Downgraded membership refunds will be refundable upon resignation from the club.
Downgraded membership refunds will be refundable upon resignation from the club.Other aspects such as the conversion fee ($5,000 for golf memberships) and the partial refundability of deposits (after deducting 30% up to a maximum of $15,000 for golf memberships) remain the same.
Next Steps
•Begin the process of negotiating a definitive purchase agreement.
Begin the process of negotiating a definitive purchase agreement.•Complete the Member Application Package and distribute to all current and resigned members in the next few days. This package will be posted on the shadowwood.net website in addition to being mailed to all members. Conversion fee payment and a notarized waiver will be required along with the new membership application.
Complete the Member Application Package and distribute to all current and resigned members in the next few days. This package will be posted on the shadowwood.net website in addition to being mailed to all members. Conversion fee payment and a notarized waiver will be required along with the new membership application.•Finalize arrangements for bank line of credit.
Finalize arrangements for bank line of credit.•Hold town hall meetings on November 16 and 17 and neighborhood meetings as necessary.
Hold town hall meetings on November 16 and 17 and neighborhood meetings as necessary.Although the financial aspects of the deal are not what we wanted, the positive aspect of the members buying the club is that it will allow the members to control the cash flow generated from dues, new membership fees and other receipts. BBG has taken over $2 million out of the club this year and that pattern would likely continue under BBG ownership.
We will need over 90% of the existing members to join the new clubs in order to have a successful conversion. It is also very important for SWCC members who are currently members of the Commons Club to not only support the SWCC effort, but also the efforts of the Commons Club, in order for this transaction to be successful. The SWCC and the Commons Club bring a unique value to our overall community.
The Member Board will further communicate with you as we progress down the road of purchasing the club assets.
SWCC Member Board: Dave Courtney, Rollie Crawford, Dave English,
Ray Kostelc, Nancy Nemec, Mike Paquette and Bill Pritts
_______________________________________________________________________________________________________
Subject: Update from Bonita Bay Group and Shadow Wood
Dear Bonita Bay Group Residents and Members,
The Shadow Wood Country Club Member Board, The Brooks Commons Club Transition Team and Bonita Bay Group today announced an agreement in principle for the members of both clubs to purchase the combined club assets for $8.25 million in cash. We will begin distributing the attached press release to the local media today.
The Member Board and Commons Club Transition Team worked diligently to reach an agreement that they feel is in the best interest of the membership. Members feel the agreement has provided them with an opportunity to control their future and benefit from being a member-owned club in today's real estate market.
Bonita Bay Group feels this is an important next step in reshaping the company. We appreciate the dedication of the Shadow Wood Country Club Member Board and The Brooks Commons Club Transition Team throughout this process.
Sincerely,
Joey Garon
President of New Leaf Management
and
Gary Dumas
Vice President Community Implementation
FOR IMMEDIATE RELEASE
Contact: Jennifer Laderer, Director of Marketing, jenniferl@bonitabaygroup.com,
239-390-1199
BONITA BAY GROUP & SHADOW WOOD COUNTRY CLUB/THE BROOKS COMMONS CLUB REACH AGREEMENT IN PRINCIPLE
TO PURCHASE CLUBS
Sales agreement must be ratified by membership of both clubs
BONITA SPRINGS, Fla. (Nov. 2, 2009) - The Shadow Wood Country Club Member Board, The Brooks Commons Club Transition Team and Bonita Bay Group today announced an agreement in principle for the members of both clubs to purchase the combined club assets for $8.25 million in cash. The agreement is subject to final documentation and a vote of approval by the combined membership of the clubs.
"Our Member Board and the Commons Club Transition Team have worked diligently to reach an agreement that we feel is in our members' best interests," said Dave English of the SWCC Member Board. "This agreement provides us with a time limited opportunity to control our own destiny and to benefit from the marketing advantage of being a member-owned club in today's real estate market. We are counting on the overwhelming support of our memberships to make this a reality."
The sales agreement includes Shadow Wood Country Club and its two 18-hole golf courses, the Shadow Wood Preserve club and golf course, and the amenities at The Brooks Commons Club including a fitness center, restaurant and beach club. This is the second Bonita Bay Group community to reach a resolution on club conversion - the members of The Club at Mediterra last week agreed to purchase the combined club assets for $6.8 million in cash and assumption of the $15 million Community Development District (CDD) debt. The positive momentum also includes The Club at TwinEagles where the membership and Bonita Bay Group recently reached an operating agreement. The TwinEagles Talon golf course, practice range and clubhouse will reopen on Saturday.
"These agreements are important next steps in our process of reshaping and repositioning the company for the future," said David Lucas, chairman of Bonita Bay Group. "In the future, we expect to be a smaller, more nimble development company with the ability to react more quickly to changing market conditions."
Shadow Wood Country Club offers two championship golf courses designed by award-winning architect Bob Cupp, a 30,000-square-foot clubhouse and a nine-court tennis complex at The Brooks. The Preserve, the third course for members of Shadow Wood Country Club, was designed by Arthur Hills and includes a clubhouse and pro shop located at Shadow Wood Preserve. Members of The Brooks Commons Club have access to a private beach club on Bonita Beach, a Fitness Center, Rosie Spoonbill's restaurant and an Enrichment Center at The Brooks Town Center.
____________________________________________________________________________________________________
UPDATED: October 28, 2009
_____________________________________________________________________________________________________
The Club at Mediterra
Advisory Board Update
The Advisory Board for the Members of the
Club at Mediterra
October 28, 2009
Resident and Member Update
It has been wonderful to see the smiling faces and to receive the messages of congratulations from many of you over the past several days. This has made the trials of the past few months worth it. Most of you recognize the job isn't done. The intent of this message is to give you an idea of what to expect over the next 4-6 weeks with regard to club operations.
Our contract anticipates closing the deal on November 17, 2009. We are presently working to complete our due diligence, secure the required permits, transfer all of the contracts and leases and the myriad of other details necessary to have a fully functioning club.
We have worked with Michael Seabrook and his staff to develop a transition plan. This will allow us to get a head start towards having a fully functioning club as soon as possible. Staff is being hired, long delayed maintenance projects are being implemented, and in general we are preparing to have the club fully functional by December 1, 2009. O course, this assumes that we close November 17. If not, we will have to adjust. Here are some of the specifics.
Golf Operations
One golf course (South) will be open Wednesday thru Sunday until November 24. We plan to open the North Course on November 24, and have it open six days a week (closed Mondays) until December 21. We anticipate being open seven days a week beginning December 28. 2009.
The driving range will be open Tuesday thru Sunday from November 3. Thereafter, it will mirror the hours of operation for the golf facilities.
Beach Club
It will take about a month to reopen the Beach Club. We anticipate opening the club during the Thanksgiving Week, opening Wednesday November 25 thru Sunday November 29. All facilities will be open with the exception of the kitchen. Sandwiches and beverages will be available at ground level. Bathrooms and the pool will be open.
Full service will be restored Wednesday, December 2 through Sunday for the remainder of the season. One big change this year is the club will no longer be providing beach towels. Historically, this has been a huge cost and management issue. Last year alone, it cost the Club $40,000 in lost towels. We have checked with other high end beach clubs (Bay Colony, etc) and they do not provide beach towel service for similar reasons. We plan to order Mediterra beach towels which will be available for purchase. Details to follow.
Sports and Tennis Facilities
The tennis courts will continue to be available for daily play. The Sports Club building and fitness facilities will be open from Wednesday thru Sunday from November 17 until December 28. It will be open seven days a week from December 28, 2009. Of course, you can continue to access the fitness facility with your key fob at the appropriate hours. If you need a fob, contact Naila Bronzini, at Club Reception.
Food and Beverage (Main Club)
The restaurant will be open Wednesday thru Sunday 11:30 AM to 2:30 PM from November 17 - 21. The bar will be open until 6:00 PM. We will continue to offer the very popular Friday night casual dinners. From November 24 thru December 21, in addition to the restaurant, bar food will be available thru 6 PM. Thereafter, we hope to resume a more normal schedule.
I'm sure you are all eager to actively use your new club. We will ramp up services as quickly as we can. We cannot replace the service cutbacks, we have sustained, overnight. Michael and his staff will be working hard to achieve the quality and level of service that you have come to expect from Mediterra.
New Members
For those of you who are new social, sports or golf members you can begin to use the club from deal closing day, anticipated to be November 17, 2009. We are thrilled to have so many new members and are planning several events to welcome you to the club. More details to follow. In the meantime, if you should have questions, please contact Max Passino, Club Membership Director.
In closing, we are reminded of the old adage, "so much to do, so little time to do it".
That pretty well describes our current situation. I'm sure that all of you will be patient as we strive to bring Mediterra back to the service levels you expect and deserve. Thanks for your continuing patience.
The Advisory Board for the Members of the Club at Mediterra
Jon Conahan
Barbara Jay
Dick Ludwig
Lance Primis
Rich Schmidt
Bruce Soderholm
Jay Taylor
Irwin Teich
_____________________________________________________________________________________________________
UPDATED: October 27, 2009
_____________________________________________________________________________________________________
Subject: Movin' On
Date: 10/27/2009
From: Art Herman
As self appointed Chief Antagonist of the Bonita Bay Group, I wear my label of being Terminated from the club personally by Tim Boates with pride. In fact, perhaps it should be referred to as being Hermanated since I seem to be the only one.
Nonetheless, I feel like Bernie Madoff sent a letter saying "Don't send any more money".
My feelings about the Bonita Bay Group are well documented and anything I say in that regard now will be redundant so this is not just another rag on BBG. They have become too easy and too pathetic a target. The only question I see is whether the members put up with more indignities to get through this season and then go back north hoping it will end over the summer or address the problem head on now during this season. There are a lot of rightfully angry people and there are also a lot of short term Tee Time addicts so it's a toss up I guess. Either way, though, it is just a matter of time before BBG is history here. They want out, We want them out. The Real Estate market demands they get out and the courts may throw them out. Time to mentally move on to the next step.
Being Hermanated has given me time to think and to imagine what we can be when this is all over and BBG is gone. If you are interested in one person's vision read on. If not, that's OK. you may have a tee time to catch before January when the jig is once again up.
Here goes. One Man's Vision ........
A Community where the Welcome Home sign at the entrance has new meaning.
A Community that has been renamed because the Bonita Bay name has been too severely damaged and outsiders just don't understand that Bonita Bay Group and Bonita Bay Club are two separate entities. Since Bonita Bay Group has received so much, justified, bad press over the past months a rebranding and disassociation from the Bonita Bay name would make sense. I also have no doubt that if by some miracle Bonita Bay Group survives rightful bankruptcy they will also change their name.
I suggest a contest to rename ourselves. My entry, a bit pompous I admit, would be The Club at Bonita Springs. Surely, there are many others. Let your mind wander. What's yours?
The Club House would serve as the social and activities center of the whole development rather than being viewed and treated as it is now, a money losing necessity. I once had management from the Club tell me that BBG lost .50 cents on every dollar spent there and BBG would be better off if no one came. Other than an obligatory Friday night P.O.E.T.S they seem to have accomplished their goal. That mindset needs to change as the The Club should be an asset not a liability.
It should be open every day and evening and run properly with the commitment to justify being open. The Club should be where you would go watch College Football games, Super Bowl or the Masters and be with neighbors, maybe get in a bet pool. It would not be just a big building that we all mostly drive by on our way outside the gate. It would be run by a management that, rather than being defensive, believes it can be a winner and is committed to make it happen.
All Non-Members Residents would be strongly encouraged, but not forced, to at least become Social Members.
Back Water Jacks would come under the functions of management of The Club and would be available to all Club Members at all levels.
The Marina Boat Operations would revert to a amenity for all residents who elected to pay for its services. With preferences to residents, certain services might be available to outsiders, such as boat slip rental based on availability.
The Governing Body of The Club would be a rotating, elected, Board of Directors comprised of a manageable representation from All Membership levels.
The BofD would hire a professional Club Management company to manage The Club and would report directly to the BofD.
Also reporting to the BofD would be various committees as needed, Greens, Social Events, Food & Bev. etc. There would be ample opportunity for those who wanted to get involved and enhance the overall club life to serve on various committees.
The Club would serve as a catalyst to improve the overall quality of life in the development. It would revert back to being a cherished asset rather than the negative encumbrance it has been viewed as in recent years. The Club and its positive approach to inclusion on whatever level a member chose to participate would enhance the living experience and value add the Real Estate Values of ALL residents.
I see The Club as a benefactor to the community outside the gates as well. Just think of the estimated $6 - $9 Million a year that has been going outside the gates and I shudder at the thought of what good that can do.
I hope this sparks some folks to think past the current troubles and imagine what it is we do want to be. This nonsense with BBG will disappear, whether by common sense on BBG's part, legal, action, or both.
Then we can get back to the fun part and remake ourselves as we want to be. That is exciting!
It is also a lot more productive than worrying whether the guy who stole your money is still stealing it. Or, asking ourselves whether we should let him keep stealing it because we want a tee time next week.
____________________________________________________________________________________________________
UPDATED: October 25, 2009
_____________________________________________________________________________________________________
Sent: 10/25/2009
Subj: John and Andrea
It is very bad news that we have lost John Oyler. Over the years John did much for club members, and formed a staff that is excellent in their dedication to our members. The mess that BBG has left in it's wake is getting worse.
Field Retterer
_____________________________________________________________________________________________________
From: Gary Jaarda
Sent: 10/24/2009
I think the loss of John Oyler is a huge loss for Bonita Bay. Is there anything we can do to get John to change his mind? John is the kind of guy we need to keep when the members own this club.
____________________________________________________________________________________________________
UPDATED: October 24, 2009
_____________________________________________________________________________________________________
Editor's Note: Bonita Bay Club Personnel Changes
Andrea Drake, Club West Head Golf Professional, has accepted a position at Quail West. E.J. McDonnell is succeeding Andrea.
John Oyler, Director of Golf, is leaving Bonita Bay Club. His is going to Hunter's Run in Boynton Beach, Florida. Hunter's Ridge is a member owned club with three 18 hole courses.
Congratulations to all three and certainly Andrea and John will be missed.
_____________________________________________________________________________________________________
Editor's note: The following information was received from a member of Mediterra
We had to put in $19,000, refundable on resignation, plus we also get up to $30,000 of our original $120,000 when we resign (plus whatever tax benefit from the balance of $90,000 bad debt).
Annual golf dues will be $13,000. All members also agree to have a restriction on their properties (supposedly "running with the land", but I am not sure that this legally enforceable) requiring payment of an APF (Amenities Preservation Fee--ie, to preserve the overall beauty of Mediterra, formerly paid mostly by Club members for the golf course, clubhouse, etc.) $3100/yr for single family residences; villas $2400/yr; $1900 for coach homes. This gives a stream of income to use for paying off debt and running the club.
We now have 610 members (compared to about 450 before all of this). In addition, the builders owning all of the unsold lots have agreed to pay the APF for the lots they still own.
_____________________________________________________________________________________________________
Sent: 10/24/2009
Subj: Mediterra Deal
I am a resident and golf member at BBC.
I have read and reread the announcements re: Mediterra's deal and would appreciate an analysis / commentary of their deal in light of what we are trying to do with BBG.
Dick Rossi
_____________________________________________________________________________________________________
From: Dennis Daigneault
Sent: 10/24/2009 9:21:25 A.M. Eastern Daylight Time
Subj: Mr Cotton's Letter (Editor's Note: See Ruffen Cotton's letter posted on October 19, 2009)
I am curious as to whether or not the committee organized to get control of the Community Association and protect BB property owners has considered organizing a letter campaign to our representatives in order to implement Mr. Cotton’s ideas. Can anyone help?
_____________________________________________________________________________________________________
To: All Bonita Bay Homeowners
From: The Homeowners Transition Committee
This letter is regarding the important matter of the Bonita Bay Community Association, the association that governs Bonita Bay. Currently this association is governed by a Board of Directors appointed solely by the property developer, Bonita Bay Properties, Inc. Currently these Board members are all employees of the developer. You as a homeowner in Bonita Bay have NO say or voice in the governance of your community. The HTC (Homeowner Transition Committee), a body of eleven volunteer Bonita Bay homeowners, have incorporated and engaged legal counsel, with the express purpose to affect a transfer of control of the Bonita Bay Community Association to the actual homeowners of Bonita Bay. Below you will see how you can help accomplish this objective of gaining control of the Bonita Bay Community Association.
Attached is a list of the residents who own property in your community association. The list indicates those of you who have completed the survey requested by the HTC (Homeowner Transition Committee) and those who have made a monetary contribution to help defray legal, investigative and administrative costs of the HTC. Thank you very much for your confidence in and financial support for the HTC.
The attached also indicates those of you who have NOT YET had the opportunity to complete the survey or to make a monetary contribution to the committee. We encourage your participation at this time. Pease contact any member of the HTC for survey information.
Please show your support by sending a check for $150 made payable to the “HTC” and forward it to:
Mr. Robert Murphy
4751 Bonita Bay Blvd. #603
Bonita Springs, FL 34134
You can follow the progress of the HTC, read past reports, and review “frequently asked questions” at www.bbtoc.wordpress.com under the “Homeowner Transition Committee” tab.
Your fellow community association neighbors and all Bonita Bay residents deserve a voice in the governance of OUR community. Please support this effort and participate today.
Thank you for your support,
HTC
Roger Brunswick Bob Murphy
Fred Chippendale Phil Oterio
Rich Dell Paul Ramsey
Ken Mack Larry Russell
Carol Markey Lance Johnson
Bruce Mohl
Homeowners Transition Committee
Frequently Asked Questions
1. How was the HTC formed and by what authority?
The TOC uncovered some issues relating to the Community Association, but because they were elected by the Club members, they felt there was a need to form a separate group to resolve those issues. Further, there are more than 900 homeowners who are not affiliated with any BB club and whose interests should be protected. The Club TOC asked for homeowner volunteers to focus on Community Association issues and nine homeowner volunteers responded to form the HTC in June 2009. Since there were only nine volunteers, it was impractical to initiate a broad scale vote to elect a single slate of nominees. In lieu of an election, an email and hard copy letter and survey were prepared and sent to all homeowners requesting their confirmation of this committee to represent them. The response was overwhelmingly positive, with 99% of respondents declaring their support for the committee as formed. Since that time, two additional volunteers have been recruited with special skills in forensic accounting and litigation, bringing the total number of members to 11.
2. Does HTC makeup represent the BB mix?
There are two committee members who are homeowners but are not affiliated with any Bonita Bay club.
3. Why did the HTC change its name?
The original committee was incorporated as the BB Community Association, Inc. At that time we did not realize it would be so confusing. To avoid any future confusion and to not infringe on the name of the current Community Association, the committee has changed its corporate name with the state of Florida to the Homeowners Transition Committee, unofficially referred to as the HTC.
4. Why do we need all three turnover committees, The Bonita Bay Club, The Marina Club and the Community Association?
Although complicated, three different committees are absolutely necessary because:
• The Bonita Bay Club and the Marina Club negotiations are critical as the resolution of their negotiations will affect the lifestyle of all Bonita Bay residents whether they are turned over to their members or put on the open market to be sold to a third party.
• Because the issues faced by each committee are different, there is no overlap in hiring of professional services.
• Combining the three committees would diffuse efforts and NOT gain leverage.
• The HTC was formed to represent all Bonita Bay homeowners including the more than 900 homeowners with no club affiliation.
• Though the BBCA is protected by Florida law and cannot be sold, it is important that homeowners control it. The current BBCA appears to be in good financial shape.
• The HTC has begun the process of an immediate turnover from the developer to Bonita Bay homeowner control.
• All three committees are actively coordinating their efforts. The Club TOC has advisors who attend HTC meetings.
• Whether or not there is a negotiated sale of the clubs to their members or BBG declares bankruptcy, the HTC must proceed.
5. Why is the HTC asking for a $150 contribution from all households, which if every household were to contribute would amount to approximately $450,000?
The HTC’s task is long term and will not end if the Club[s] are acquired or BBPI bankrupts. The issues relate to property ownership, governance, timely turnover, further property development, use of common property, and the extraordinary powers granted to BBPI in the Community Association governing documents. Since the duration of this effort is unclear, the cost of investigative and professional services are equally unclear. The HTC had to take into account the possibility that there would be less than 100% homeowner participation and would prefer not to resolicit for additional funds. The HTC has promised in writing that any unspent funds will be returned pro rata to the contributors and has committed to transparent financial accounting. Community Association issues relate to our home values and the ambiance of the community. An updated list of all contributors is available in the HTC section of the TOC website. If you would like to contact the HTC for additional information or to make comments, please use the response form at this website.
6. Will HTC publish a list of the contributors?
Yes, a regularly updated list appears under the Homeowners Transition Committee tab on the shared website www.bbtoc.wordpress.com.
7. What does the BBCA own?
BBCA owns all common property roads, gate houses, the beach club, three community parks, maintenance property, maintenance equipment [which may be leased], busses, patrol cars, etc. With the advice and assistance of legal counsel, the committee has launched a comprehensive property examination.
8. What happens if BBPI bankrupts?
The only certainty is the bankruptcy judge will be in charge.
9. Is our money safe with the BBCA? Should we continue to pay our yearly BBCA fee? What about the $7.78 million invested in the Bank of the Keys [NYSE symbol TIB]?
The BBCA is bound by Florida Statute 720 to keep all finances separate from the developer’s finances. For that reason, the HTC is comfortable in recommending that Community Association fees for the coming year be paid as usual.
All that is revealed in the audited financial report dated 12/31/2008 is that the $7.78 million was invested in CDs issues by Bank of the Keys under the federally sponsored CEDAR network program. This program allows banks to divide a large deposit into a number of deposits with amounts small enough to not exceed the maximum amount insurable by the FDIC.
10. Is there any evidence of reductions in BBCA assets or maintenance?
We have no evidence of a problem here, but we also have no confirmation as due diligence on this matter would only begin when the transition process begins.
11. Have the banks instructed BBG to divest or turn over common areas?
Not to our knowledge
12. Do we have sufficient professional counsel such as bankruptcy, HOA, real estate counsel?
We have retained counsel with expertise in real estate law and the Florida laws and regulations governing community associations and the transition of community associations from developers to homeowners. Additional professional counsel will be retained as required once we receive sufficient funding from contributions.
13. What are the homeowner rights regarding the BBCA and the assets they control?
The governing documents under which the developer (BBG) established the Bonita Bay community and Florida statutes chapter 720 define homeowner rights. Under these governing documents BBG has the exclusive right to appoint its employees to the three member Board of Directors of the BBCA. This board controls BBCA assets and makes all BBCA policies without input from homeowners. The HTC has retained legal counsel with expertise in the Florida laws and regulations governing community associations and their transition from developers to homeowners to resolve this rather complicated legal issue.
14. Why not seek an immediate turnover of the BBCA since either a board seat or turnover is potentially blocked by current covenants?
As the result of recent events and with the advice of counsel, the HTC has recently adopted as its primary goal the immediate turnover of the BBCA to homeowners.
15. Will BBG allow a homeowner on the board?
The covenants specify that BBPI has the power to appoint board members until turnover. We are trying to work in a cooperative way to secure immediate turnover of the BBCA. It is unclear whether a less cooperative effort will be required.
16. Can we avoid litigation in our efforts to achieve immediate turnover of the BBCA?
We hope so, but it is unclear.
17. Are the efforts of the HTC futile, given the existing covenants and total control by the developer?
The HTC continues to meet with legal counsel to develop viable causes of action to mandate the transfer of the Community Association from BBG to homeowners, especially in light of the apparent conflict that exists between the fiduciary duties owed by directors of a community association to homeowners under Florida law and the current Board members’ duty to their employer, BBG.
18. Are we paying a fair price for our irrigation water? What will happen in the future?
It is hard to determine competitive pricing since our irrigation supplier, Resource Conservation Services (RCS) is essentially a privately owned utility with substantial infrastructure in place such as pumps, lakes and pipes and no practical way for Bonita Bay to buy from another supplier. Currently the cost per thousand gallons is alleged to be the same for all RCS customers, including The Brooks, Veranda, and Bonita Bay Community Association and neighborhoods. The BB Club owns the irrigation pumps for the golf courses and pays for the power to run them. Accordingly, the golf club pays a lower price for the raw reclaimed water.
19. Are there any issues regarding the possibility of dangerous contaminants in the irrigation water?
The Bonita Springs Utility that sells the reclaimed water to RCS is quite scrupulous and unlikely to provide dangerously contaminated water to RCS. The committee is unaware of any issue at this time.
20. Does the HTC have a point of view on non-resident club members and related access issues?
The HTC is aware that nearly 1/3 of the Marina Club members are currently non-residents and that this club is financially dependent on their participation at the moment. There are also non-resident golf and sports members of the Bonita Bay Club who contribute to the financial stability of the current and future club. Since these are paying members of both clubs they have rightful permission to access. It is unclear what the future policies of the new clubs will be. A needed consensus on this issue will be developed at some time in the future since at the extreme we could no longer have a private club community.
21. Does the HTC advocate creating a “Bundled Community” wherein all residents are required to join a club?
This issue cannot be resolved before turnover of the Community Association and therefore, the HTC does not have a point of view on this difficult question.
22. Will the completion of the remaining two high-rise buildings plus the 15 Eagles lots end the development of BB?
The Committee, in consultation with legal counsel continues to investigate the deeding, zoning and development order details of more than 100 vacant and common area land parcels within the Bonita Bay complex.
23. Does the committee need volunteers to work on the committee?
While we need to keep the committee to a managable size, as events unfold, additional volunteers with special skills like engineering, finance and community association management, among others may be needed. _____________________________________________________________________________________________________
UPDATED: October 23, 2009
_____________________________________________________________________________________________________
Subject: The Club at Mediterra Advisory Board, October 23, 2009
Date: Fri, 23 Oct 2009
The Club at Mediterra
Advisory Board Update
* *
*The Advisory Board for the Members of the*
*Club at Mediterra*
*October 23, 2009*
*Resident and Member Update*
* *
*WE HAVE A DEAL !*
We have reached an agreement with Bonita Bay Group to purchase the Club
at Mediterra. All of the members of the New Club at Mediterra will be
the owners.
We have been planning, working, and hoping for many months for the
opportunity to write this joyful update to the members and residents in
Mediterra. It has been a long, arduous journey, but thanks to your
endless patience, unwavering support, and total trust in us to get the
job done, we are on the brink of success.
We have reached an agreement with Bonita Bay Group and the lawyers are
now working diligently to complete all the necessary due diligence and
transaction paperwork to make it all official. We hope that this process
can be completed in the next 4 to 6 weeks.
The essence of the agreement is as follows:
- We will purchase the Club at Mediterra for a price of $6.8 million.
- This includes the Golf Courses, Practice Areas, Maintenance Areas, the
Club House, the Tennis and Fitness Center and Pool, the Tennis Courts,
and the Beach Club.
- We will assume approximately $15 million in CDD debt.
- Bonita Bay Group will retain liability for deposit refunds for those
who did not sign the waivers.
- The Mediterra HOA will be turned over to the residents within 3 to 6
months of closing, if not sooner.
- We are optimistic that London Bay Homes will complete their purchase
of most of the remaining unsold BBG lots in Mediterra soon after our
transaction closes.
A joint press announcement will go out today.
Bonita Bay Group will be sending out an announcement in the near future
confirming this agreement and further describing their plans for dealing
with any potential obligations they may have to those members of the old
club who chose not to join the New Club.
As part of our agreement with BBG in this transaction, and in the
interest of going the last mile to promote harmony and amity in our
community, we are extending our offer of Charter Membership in the New
Club and /or Social Membership to those who have not yet joined, on the
same terms as have been offered previously to all members until the
closing date of our transaction. Those members who have so far chosen
not to join the New Club at Mediterra will have one last opportunity to
consider the attractiveness of full Charter Membership in our club.
We will follow up shortly with a description of our plans and timing for
bringing our club back up to full operating status as quickly as possible.
We should all continue to pay our November dues. As a part of our
agreement, BBG will turn over to the New Club that portion of your dues
that correspond to any period post closing when we own the club.
The financial outlook for the New Club at Mediterra, and consequently
the financial health, attractiveness, and liquidity of our real estate
market in Mediterra, is exceptionally strong, thanks to the
extraordinary outpouring of support from the members of the Mediterra
community. Our confidence and trust in each other and in the future of
Mediterra will not be lost on the potential home buyers in Southwest
Florida.
We sincerely hope that those who have hesitated to join the club to date
for whatever personal or financial reasons, will give serious
reconsideration to the option of returning to the warm and welcoming
company and camaraderie of so many friends and neighbors and the
enjoyment of the finest club amenities in the Naples area. Although
neither we nor any club will likely ever again guarantee instant
refundability of 100% of initiation fees, we invite you to review the
financial projections for the New Club in the years ahead and consider
the strength of our plans for substantial resignation refunds. Those
plans have become so much more viable precisely because we have had such
an overwhelmingly positive response to our plans for a member owned New
Club at Mediterra.
We finally have the opportunity to put the strife and anxiety of the
recent past behind us and to embrace a new future for Mediterra that
promises to be truly extraordinary. Who would have imagined six months
ago that this moment of such promise would rest in our hands. Our
challenge now is to take this opportunity and carry the Mediterra
experience to new heights that the outside world can only admire and
strive to emulate in their own communities, or join us.
The real measure of the character of our Mediterra community was the
willingness of an overwhelming number of residents and club members to
place the well being of their community of friends and neighbors ahead
of perceived personal advantage. This is truly extraordinary. We wish to
extend our deepest gratitude and appreciation to every one of you who
stepped up in support of our community, particularly the residents who
were not formerly members whom we now welcome warmly into the New Club
at Mediterra.
Congratulations and thank you to each and every one of you.
*The Advisory Board for the Members of the Club at Mediterra*
Jon Conahan
Barbara Jay
Dick Ludwig
Lance Primis
Rich Schmidt
Bruce Soderholm
Jay Taylor
Irwin Teich
_____________________________________________________________________________________________________
October 23, 2009
To BBC Members:
I was disappointed to read the Advisory Board’s Minutes of the October 13, 2009 meeting.
LOSS OF CAPITAL FUNDS
Mr. Boates’s letter of October 2, 2009 specified that the total capital expenditure would be $2.3 million but in your meeting Joey Garon said they plan to spend only $1.4million. What happened to the remaining $ .9 million?
BBC collects over $1,000,000 dues per month (1200 golf members x $800 = $960,000 plus sports and social). This equals $7,000,000 of dues collected during the capital plan period October through April vs. the Advisory Board’s approval of $1,400,000 for capital improvements. What happens to the remaining $5,600,000? Also, $863,000 of these capital expenditures are backend loaded into Feb thru April, three months after BBC‘s net cash flow (including dues) stays in BBC (TOC Reports #27 &29). Our experience this summer was that no local club or subcontractor would commit to doing business with BBG without cash up front. We need these capital improvements now and there appears to be money to do it even if members are temporarily inconvenienced.
GENERAL MANAGER
If we are going to run this club our general manager is the one who will be the person in charge. If we currently are lacking an accounting system Bob Staehle should set it up and be able to report to the members as to how we stand financially. He should be able to present to the members his plan of action to get our club on the road to being the finest club in southwest Florida. Why was Bob not asked to present the plan, as Joey Garon at best, will be a subcontractor of the new BBC for accounting services?
PREVIOUS EXPERIENCE
I was a Greens chairman at my previous club with 27 holes by Jack Nicklaus and 18 holes by Pete Dye, half the size of BBC’s golf courses. We bought our club from a developer that left us with the following problems:
WEAK STAFF - not enough personnel and some were not at the right skill level.
BROKEN AND WORN OUT EQUIPMENT – Our equipment had to be replaced at a cost of $2.5 million.
GOLF COURSES IN DISREPAIR – The Dye course irrigation system had to be replaced at a cost of $1 million, greens and bunkers had to be rebuilt for another $2 million.
When we bought the club we were not totally aware of these problems and the necessary costs to fix them. (Try to get money from a member who just paid $10,000 to buy their club)! Fortunately we were able to convince the members to pay the capital assessment to do this work which took 4 ½ years to complete.
A WARNING ABOUT OUR GOLF COURSES
If any of my observations prove to be incorrect I will apologize for my inaccuracy. I have been coming to BBC for ten years prior to moving here permanently three years ago. During those visits I marveled at the condition of all BBC’s golf courses. This was the result of the green staff knowing what to do and having the correct level of resources to do the job. So our staff is first rate and can do the job!
Here are my observations of our course and maintenance staff:
EQUIPMENT
BBC’s equipment is old and aging and the replacement cost is probably about $6-7 million. Since this equipment gets used all year it depreciates rapidly at about $1.25 million per year. I doubt that there has been any replacement of this equipment in four years. So be prepared to spend $4-5 million to correct this problem.
STAFF
Maintaining golf courses is LABOR INTENSIVE! You can see that the details that used to be done on the golf course are not getting done. Edging around the greens to prevent the encroachment of the fairway Bermuda grass into the green cavity is not done as frequently as in the past. If this goes unchecked, fixing these greens will be costly and they could be out of service for 3-6 months. The greens are now mowed with a triplex mower vs. hand mowing. The tees are not mowed as frequently. (You could actually putt on our tees four years ago). The bunkers are not raked as frequently. The staff is maintaining the course while we are playing, whereas before they were invisible. There are many other details that are not being done or delayed. I question whether we have enough mechanics to maintain our equipment and considering the value of our equipment (estimated value of $6-7 million) not having the correct number of skilled mechanics is putting this valuable asset at risk.
CHEMICALS
It takes fertilizer and insecticides to feed and protect our grasses and plants. Those items have been reduced and our fairways are not as thick and tight as, for example, Gray Oaks Country Club (also Bermuda fairways). Chemicals to treat insects have been cut back and there are spots on our courses that reflect that problem.
IRRIGATION SYSTEMS
I have noticed increased work being done on the aging irrigation systems because of breaks. This is a sure sign that they have to be replaced. I estimate this cost at about $1.25 million per course. This should not be a problem for the East courses as they are newer. But that will still leave us with $3.75 million cost to fix the West courses.
If anyone doubts these observations I would suggest that a golf course consultant be hired to inspect our courses, equipment and staff. I believe that our Director of Golf Course Operations is perfectly capable of giving us an accurate assessment of our situation but he is an employee of BBG and may not be as free to speak his mind.
RECOMMENDATIONS
I would recommend Paul Latshaw whom it has been my pleasure to work with in the past as a consultant. Paul has been the superintendent at Wingfoot CC and Riviera CC. As a consultant he has been hired to prepare courses for the US Open, The Masters, PGA Championship, The Memorial (Jack Nicklaus’ event) and the US Senior Open. These events were held at Augusta, Congressional, Riviera and Southern Hills to mention a few.
I would also like to see the last five years of the golf course budgets so we can see where the budget was reduced and then we will know the operational and capital costs that we will likely incur in the future.
If we went to our clubhouse to dine, all of us would know that the carpet is worn, the service is slow because of staff cuts and the steak is tough. We would all complain about this. I raise these golf course issues as I have some limited experience with what it takes to deliver a first rate golf course and these issues can be hidden from the average player for awhile. The 4 ½ hours on the golf course multiplied by the number of times per week that you play far outweighs the time spent in the clubhouse. I feel it is important that my fellow members understand some of the issues facing our most used asset.
These underfunded problems no doubt exist also at our clubhouse, tennis and fitness facilities. But when I saw Golf Maintenance received only $90,000 for capital vs. an absolute minimum need of $1.25 million I was disappointed and alarmed as I project that we will need $8-10 million to correct this ongoing lack of funding by BBG. This will be in addition to whatever we pay BBG to own this facility.
Owen Berg
_____________________________________________________________________________________________________
Sent: 10/23/2009
Subj: Update from Bonita Bay Group and Mediterra
Dear Bonita Bay Group Residents and Members,
The Mediterra Members' Advisory Board and Bonita Bay Group are pleased to announce that an agreement has been reached for the members and residents of Mediterra to purchase the combined club assets and assume the $15 million CDD debt. We will begin distributing the attached press release to the local media today.
The agreement received strong support from residents and members of Mediterra with 95 percent of former members and an additional 150 residents, who were not previously members, joining the New Club. Mediterra homeowners feel the outcome has restored Mediterra's position as Naples' premier private club community and involvement in the negotiation process has created a unity among all residents and members that sets Mediterra apart as a very special place to live.
Bonita Bay Group appreciates the commitment of the Mediterra Members' Advisory Board throughout this process and hopes for similar outcomes as we continue turnover negotiations with other club Transition Boards.
Sincerely,
Joey Garon
President of New Leaf Management
and
Gary Dumas
Vice President Community Implementation
FOR IMMEDIATE RELEASE
Contact: Jennifer Laderer, Director of Marketing, 239.390.1199,
JenniferL@BonitaBayGroup.com
MEMBERS BUY CLUB AT MEDITERRA
95 Percent of Mediterra Members & Residents Support New Club
NAPLES, Fla. (Oct. 23, 2009) - The Mediterra Members' Advisory Board and Bonita Bay Group today announced an agreement for the members of the New Club at Mediterra to purchase the combined club assets for $6.8 million in cash and assume the $15 million Community Development District (CDD) debt. The agreement received strong support from the residents and members of Mediterra with 95 percent of former members and an additional 150 residents, who were not previously members, joining the New Club as golf, sports or social members.
"We are deeply appreciative of the overwhelming support of our Mediterra residents and club members who together seized this opportunity to control the destiny of our club and community," said Richard Schmidt, chairman of the Mediterra Members' Advisory Board. "This agreement puts our club on firm financial footing and restores Mediterra's position as Naples' premier private club community with recreational amenities that are second to none."
The sales agreement includes The Club at Mediterra and its two Tom Fazio-designed championship golf courses, an 1,800-square-foot golf learning center with short-game practice area, a 25,000-square-foot clubhouse, named best clubhouse twice by the Collier Building Industry Association, and a Sports Club with five Har-Tru tennis courts, an outdoor pool, three spa rooms and a recently expanded fitness center. It also includes the private Mediterra Beach Club on the Gulf of Mexico with an elevated swimming pool, expansive sundeck and indoor and al fresco dining overlooking 200 feet of shoreline.
"While this has been an incredibly difficult process for everyone involved, it has created a unity and bond among all the residents and members in Mediterra that sets our community apart as a very special place to live," said Schmidt.
"Today's agreement represents a significant step toward resolving the financial challenges facing our company due to the global economic crisis and the dramatic downturn in the Southwest Florida real estate market," said David Lucas, chairman of Bonita Bay Group. "We sincerely appreciate the dedicated and professional leadership of the Mediterra Members' Advisory Board throughout this process and hope to be successful working with the members of other clubs to achieve the best possible resolution to the mutual challenges we face."
Lucas said the agreement at Mediterra is consistent with the company's restructuring plan and amended credit facility with its senior lending group. The company remains committed to continuing negotiations with the advisory boards of its other membership clubs in Southwest Florida to achieve mutually beneficial agreements.
Mediterra is a 1,697-acre community that has been named Community of the Year by the Collier Building Industry Association five times, received the Award of Excellence for Open Spaces from the Florida Chapter of the American Society of Landscape Architects and has been honored with the Environmental Leaders in Golf Award from the Golf Course Superintendents Association of America and Golf Digest magazine in the private course category. It has been named by Golf Magazine as one of The 50 Best Golf Communities in America and by Travel & Leisure Golf as one of the top 100 golf communities in America for four consecutive years. It was the first-ever 36-hole course to earn Audubon International's Silver Signature Sanctuary status.
_____________________________________________________________________________________________________
From: Speakers Assembly
Sent: 10/23/2009
Subj: Press Release
FOR IMMEDIATE RELEASE: Contact: Tracy Connelly
239.985.3558
Wall Street Journal Board Member, Economics Writer
To Address Economic Issues
At Southwest Florida Speakers Assembly
November 6
Stephen Moore, senior economics writer and member of the editorial board for The Wall Street Journal, will be the first speaker of the season for the Speakers Assembly of Southwest Florida on Friday, November 6, at the Hyatt Regency Coconut Point in Estero. Moore's presentation will focus on current economic issues and tax, budget, and monetary policy. A networking reception begins at 11:00 a.m. followed by Moore’s presentation, lunch and a question and answer session with the program concluding by 1:30 p.m. The cost is $45 for members of the Speakers Assembly and guests, and reservations must be made through the Speakers Assembly office at 239-948-7909 or speakersassembly@aol.com.
Also attending the November 6 luncheon will be students from Florida Gulf Coast University who will have a private question-and-answer session with Moore before the general presentation. The students are being sponsored by Northern Trust, and are eligible to receive one of the Speakers Assembly’s inaugural scholarships funded by Moorings Park and Northern Trust.
Prior to joining WSJ, Stephen was president of a new organization, the Free Enterprise Fund which promotes economic growth, lower taxes, and limited government. He is also known as the founder and former president of the Club for Growth, which raises money for political candidates who favor free-market economic policies.
Over the years Stephen has served as a senior economist on the Congressional Joint Economic Committee, as a budget expert for the Heritage Foundation and as a senior economics fellow at the Cato Institute, a libertarian think tank where he published dozens of studies on federal and state tax and budget policy. He was a consultant to the National Economic Commission in 1987, and research director for President Reagan's Commission on Privatization.
Moore is a contributing editor for the National Review, and is a frequent economics commentator on CNBC’s Kudlow & Company, and appears on Fox News’ On The Record with Greta Van Susteren.
Stephen is the author of five books, most recently, "Bullish on Bush: How the Ownership Society Is Making America Richer." He holds a B.A. from the University of Illinois and M.A. in economics from George Mason University.
About The Speakers Assembly of Southwest Florida
Founded in 1996 The Speakers Assembly of Southwest Florida (SASF) is a 501 C 6, non-profit, non-partisan corporation. SASF has built and sustained a powerful reputation of being the area’s premier venue for hosting renowned speakers. SASF boasts an active membership of 500 Southwest Florida residents who are at varied life-stages from retired industry executives to full-time working professionals. To fulfill its mission of enhancing relationships with educational institutions in the region and to expose students to worldwide careers and opportunities, SASF invites students from local high schools, colleges, and universities to participate in a private question-and-answer forum with speakers prior to each event, and to compete for scholarships funded by contributing sponsors.
_____________________________________________________________________________________________________
UPDATED: October 19, 2009
_____________________________________________________________________________________________________
Sent: 10/19/2009 7:46:50 P.M. Eastern Daylight Time
Subj: Letter to State Legislators
Fellow Residents of Bonita Bay:
To date the Bonita Bay Group has refused to turn over the Community Association to us, the residents. There is a Florida Statute that exempts them from mandatory turnover because Bonita Bay began development prior to June 15, 1995. If you agree that this "loophole" ought to be closed, please read my letter to our two state legislators. If you continue to agree, please let your feelings be known by writing your letter to those legislators. You may choose to attach a copy of my letter to yours to simplify the writing or write your own letter to those legislators and ask them to close the "loophole".
One letter from me to our legislators might get a peek, but 500+ letters from Bonita Bay residents would be much more powerful, and could spur some favorable action.
Ruffen Cotton
Riverwalk
_____________________________________________________________________________________________________
Sent: 10/19/2009
Subject: Commons Club Members and Brooks Residents
Dear Commons Club Members and Brooks Residents,
We have reached an agreement on the transfer of The Commons Club to our
members!
Together with the Shadow Wood Country Club, we presented the following
proposal to BBG on Thursday which they have accepted:
• Cash Price at closing: $8.3 Million with the Commons Club share
remaining at $4.3 million.
• Members who transition to the “New Club” will sign a waiver
terminating any claim for the initial deposit against BBG. This waiver
will be unique for each of the two clubs. The new membership plan for
the Commons Club will define repayment of the original deposits to these
members.
• BBG will retain the liability of initial deposits for members who do
not transition with the club. Members presently on the resigned list can
either chose a reduced repayment of their initial deposit or participate
in the BBG 3:1 repayment policy which is funded by the joining fee from
new members joining our club. This future funding is being treated as a
supplement to our purchase price.
• There will, of course, be closing costs in addition to the above and
we are working with our lawyers to define these.
• The Transfer Fee for current members will remain at the level we
previously identified:
§ Gold $2,200
§ Silver $1,300
§ Bronze $ 200
These options will be spelled out in more detail in the mailing you will
receive during the week of October 26^th. This mailing will include a
summary of the membership plan, the waiver form, the 2010 budget and
dues structure, and an application with details for your quick response.
We will also begin to actively recruit new members.
BBG has agreed to increase the service level and the availability of all
the facilities within the Commons Club. This includes hiring additional
seasonal staff for each of the facilities. The increased staffing and
service hours are starting over the next three weeks. The detailed
information can be found on the Commons Club website at
www.thecommonsclub.com. The additional
manpower will greatly improve the availability of the facilities and
bring it to near normal operation. BBG has also agreed to keep all money
that we pay for dues within the club starting this quarter. In addition,
all dues for Gold, Silver, and Bronze members will be billed monthly
until the club is transitioned to the members. We encourage you to
continue paying your dues (on a monthly basis rather than a quarterly or
annual basis) while we finalize these negotiations.
This transition activity has certainly taken much longer than any of us
had imagined. We appreciate your encouragement and financial support
during this time. After months of negotiations, we believe that this is
the best agreement that can be achieved and we look forward to your
continued support.
The Commons Club Transition Team
Bob Bonner David Gray Jim Ward
Bob Boudreau George Hausman Murray Yager
Perry Camodeca Frank Lovejoy
Ike Eikelberner Elaine Nelson
Terry Furhovden, Chair Don Rowe
--
_____________________________________________________________________________________________________
UPDATED: October 16, 2009
_____________________________________________________________________________________________________
Bonita Bay Club Turnover Committee Report #29
October 16, 2009
Dear Fellow Bonita Bay Club Members,
This is the twenty-ninth communication from your Turnover Committee (the "TOC" or the "Committee").
Our twenty-eighth communication was a summary of the purported Amendments to the Rules and Regulations of the Club, which were posted by BB Group on the Club website on September 29, 2009, and a brief commentary from the TOC on these supposed amendments.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
On behalf of the members, your Committee would like to thank all of the dedicated employees of the Club who have worked hard through the summer months under difficult and uncertain circumstances. We also would like to welcome back many other employees for the winter season.
Status of Negotiations
Your Committee is continuing to try to engage BB Group in meaningful negotiations. As we previously stated, our objective is to acquire the Club for the members on terms which are fair to the members and that will provide us with a Club that is financially healthy, competitive in the market with competing golf courses in SW Florida, an asset to the Bonita Bay Community, and a reason for prospective home purchasers to want to buy and live in Bonita Bay. We are not willing, and we believe that the majority of the members are not willing, to allow BB Group to continue to own and operate the Club. The TOC has made this clear to BB Group on several occasions and will continue to emphasize this point.
Based on the commitment of BB Group that it would devote all cash flow generated by the Club to the cost of Club operations through January 2010, the TOC recommended that members should continue to pay their dues during the transition period while negotiations are ongoing. Our willingness to maintain this recommendation during the transition period is conditional upon our making progress in the negotiations toward a turnover.
Town Hall Meetings
The TOC is pleased to announce that we are planning to hold a "town hall" meeting on November 11, 2009 at the Bonita Bay Clubhouse, for members to receive a brief presentation from your Committee and then to invite questions and comments from the members. Due to space limitations, we are planning to invite members and residents whose last name begins with A-M to attend a morning session and those with names beginning with N-Z to an afternoon session. We are also planning an additional session on Saturday, November 14 for any members or residents who are unable to attend on November 11.
We have also invited the Homeowners Transition Committee and the Marina Club TOC to conduct similar meetings following our meetings so that members and residents can get a complete update on all matters relating to the proposed turnovers from BB Group. Further details on these meetings will be provided in future reports.
Verification of BB Group's Commitment
As previously announced in report #27 on October 6, 2009, BB Group has agreed that all cash flow generated by the Club through January 2010 will be used strictly to fund the cost of Club operations. On the basis of this commitment, the TOC recommended to all members that they continue to pay their dues to the Club during the transition period while negotiations continue.
Several emails have been exchanged with BB Group with respect to the process of verifying that BB Group honors its commitment and on October 14, 2009, two members of the TOC and a member of the Advisory Board met with three representatives of BB Group to discuss the matter further. BB Group has agreed to provide the TOC and the Advisory Board with signed financial statements of the Club each month, starting with those of September 30, 2009. In addition, bank statements showing all receipts and disbursements, and invoices will be made available for our inspection. Another meeting with BB Group is scheduled for October 21, 2009 to refine the verification process further.
Due to the comingling of cash at BB Group, which we understand is a requirement of BB Group's arrangements with Key Bank, it may not be possible to actually segregate the cash flows relating to our Club from other BB Group activities.
Litigation Update
As previously reported, the TOC is supporting a class action lawsuit and several individual plaintiff legal actions against BB Group. We recently posted complete copies of the class action complaint and two of the individual plaintiff complaints on our website at www.bbtoc.wordpress.com under the heading "Litigation Supported by TOC - Oct 7, 2009". These complaints were posted on the website by the TOC for those members interested in viewing them and with the consent of the plaintiffs involved. The TOC has entered into agreements with the plaintiffs that, in return for the TOC funding the cost of the litigation, provide the TOC with a fair degree of control over the litigation process and any settlement discussions that might occur.
One of the legal actions which the TOC has recently decided to support is an action initiated by a member in early 2009. Because this action was filed long before any of the other litigation supported by the TOC, it is further advanced in the legal process. The member is continuing to pay for his own legal counsel and the TOC is paying for one of our lawyers, Mr. Ed Cheffy, to be co-counsel and assist in the case. As part of prosecuting this case, on September 23, 2009, Mr. Cheffy deposed David Lucas under oath from 10:30 am until 7:35 pm, with an hour break for lunch. The transcript of this deposition contains several admissions by David Lucas which will be useful to us in this and our other lawsuits. Depositions of other relevant parties are planned for the near future.
This case is scheduled for trial on February 2, 2010 with a four week docket. There is also a hearing scheduled on December 21, 2009 for a motion for summary judgment on this case. These dates are subject to change based on the judge's case load and other factors. If the case proceeds to trial, Mr. Cheffy believes that the chances of winning this lawsuit are very good. The other lawsuits are also proceeding, with BB Group having recently filed their "Answers and Affirmative Defenses" to two of the single plaintiff complaints. In one of these cases, we now expect a hearing date in January on a motion for summary judgment.
In order to file a petition for involuntary bankruptcy of all or any part of BB Group, it is necessary to have three creditors who have undisputed claims for money owing. BB Group is taking the legal position that it can unilaterally change the refund policy of the Club, notwithstanding our promissory notes, and accordingly, that the refunds to resigned and downgraded members are not currently due. When we have a favorable court decision that the promissory notes of resigned and downgraded members are due and payable 30 days after such resignation or downgrade, then we will be in a position to support the filing of a petition for involuntary bankruptcy.
Deterioration of Quality
We are considering other options to require BB Group to maintain the quality of our Bonita Bay Club experience at the high level we were promised. Each member could be very helpful in this effort by recording in detail each observed failure of service quality, lack of performance, deterioration of assets and the like. This information may be forwarded via email to Lance Johnson directly at lbjatt1@gmail.com
Additional Contributions
In report #25, dated September 29, 2009, your Committee requested additional contributions from the members in order to sustain our efforts to acquire the Club from BB Group and to help convince BB Group and Key Bank that we are prepared to protect the rights of the members with respect to BB Group and the turnover process, however long that takes.
We requested an additional $500 from each golf membership, $250 from each sports membership, $125 from each social membership and, for the first time, we requested $125 from each residence of Bonita Bay that does not currently hold a membership in the Club. Since all residents of Bonita Bay, whether or not they are members of the Club, will benefit financially from a successful resolution of the current situation, the TOC believes it is appropriate to request funds from all residents.
Please make your check payable to: "BB Turnover Committee, Inc." and mail it to: Mr. John Klocko, 3390 Riviera Lakes Court, Bonita Springs, Florida 34134.
As was the case with the previous contributions to the TOC, all additional contributions will be credited to members' accounts in our new member-owned Club. All non-members of the Club who make a contribution will receive a voucher for dining at the new member-owned Club equal to the amount of their contribution. If a turnover is not completed, any unused funds will be returned to those who made contributions, on a pro rata basis.
In early November, we plan to publish a list of members and residents who have contributed and the total amounts contributed, so that members can ensure that their future accounts in the new member-owned Club are credited with the correct amounts. Any members or residents who would prefer that their names and contributions not appear on this list should so notify John Klocko by email at klockoj@embarqmail.com.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
_____________________________________________________________________________________________________
Bonita Bay Club Advisory Board
Minutes of the Meeting - October 13, 2009
In Attendance:
Bonita Bay Management: Joey Garon, President, New Leaf Management
Bob Staehle, General Manager BBC
John Oyler, Director of Golf, BBC
Advisory Board Members: Jack Eikenberg, Chairman
Chuck Campbell, Joe Davi, Paul McGrath,
John Pinti, John Risk, Pete Saputo
Opening Remarks: Jack Eikenberg opened the meeting by welcoming new Advisory Board members Joe Davi, Paul McGrath and Pete Saputo who begin their three-year terms. To clarify the role of the member- elected Advisory Board several club members have asked that the Board publish a description of the specific responsibilities of the Board. Those responsibilities are set forth in Attachment 1 of these minutes.
Presentation to the Advisory Board by Joey Garon: At the request of the Advisory Board, Joey Garon prepared and delivered to the Board a detailed presentation of the BBC operations plan for this current season.
Mr. Garon began the presentation by reiterating that all income generated by BBC will be retained in the club beginning October 1, 2009. He further stated, in order to encourage a club transition from BBG to the members, the agreement to retain all income in the club is scheduled to expire on January 31, 2010. By that point in time, it is hoped that a transition will have occurred or be imminent. (A verification process to insure all income is retained in BBC will be jointly conducted by two members each of the Advisory Board and Turnover Committee - see below.)
Mr. Garon pointed out that the success of BBC is directly related to its ability to cover the costs of operations and capital improvements. Whether owned by BBG or its members, the club can continue to operate only if it generates positive income.
The presentation of BBG’s club operations began with Mr. Garon highlighting the intended capital expenditures program to take place between October, 2009 and April, 2010. (The detailed capital expenditure program, by month, is included in these minutes as Attachment 2.) The program is projected at a total cost of $1,409,700. The major items are as follows:
Roof for the East Courses clubhouse - $35,000;
EPA- mandated replacement fuel tank in West Courses golf maintenance area - $350,000;
Golf bag handling system at West Course - $100,000;
Cart paths resurfacing - $50,000;
Resurface six tennis courts and repair stadium court seating area - $50,000;
Replace carpeting West clubhouse - $80,000;
Resurface West Club parking lots - $110,000;
Replace carpeting West men’s lounge - $35,000;
Replace air conditioning chiller system in West clubhouse - $$337,000;
10. Replace air handler in West clubhouse - $90,000;
11. Miscellaneous golf course maintenance equipment - $90,000; and,
12. Other items - $82,700.
A general discussion took place regarding the items and the timing of the capital expenditures. The Advisory Board took part in a previous, summer, 2009, meeting with BBG which was centered on the prioritizing of the specific items and the Advisory Board was in agreement as to the need for and the general timing of the work.
BBC will go to a seven day schedule, effective Monday, October 19, 2009. The East Courses facility and one of its courses will open on Monday, November 23, 2009. Management expects that all golf courses will be in excellent playing condition. The Advisory Board was advised that staffing and equipment needs will be in place as the courses open and, shortly, the inventory of the pro shops will be replenished and available to members (see notes below on the comments made by Mr. Oyler and action taken at this meeting).
The West dining room will be open for dinners on Thursday and Friday, beginning October 22, 2009. Beginning in early January, 2010, dinners will be available on three nights, Wednesdays, Thursdays and Fridays, together with entertainment. The Fireside Room will host monthly wine/dinners beginning in November, 2009. Additionally, the Fireside Room will be open for dinners on Friday and Saturday evenings, as of January 11, 2010. Holiday dinners and the January, 2010 members’ annual Welcome Back Party is being planned.
Mr. Garon, next, discussed management’s inclinations for membership dues and cart fees to be charged in 2010. After reviewing the issue with the Advisory Board, which was unanimous in its opinion that dues and cart fees should be held firm and not increased in 2010, Mr. Garon stated that there would be no increases for 2010.
Backwater Jack’s restaurant will reopen on October 21, 2009. It will be available to all BBC members from that date until December 31, 2009 at no additional cost of dues. Beginning January 1, 2010, Backwater Jack’s will give Marina Club social members the option of paying their dues on a monthly basis, similar to the BBC billing arrangement.
Mr. Garon informed the Advisory Board that Verandah, Shadow Wood, Mediterra, and the Commons Clubs are all operating, at least, at break even operating income levels, and are also gearing up for the season. Because the number of members at Verandah it is not at a level which would enable the members to purchase the club; the members and BBG are working on an agreement to continue at status quo until such time as the members are able to purchase the club. Talks are progressing between BBG Management and Mediterra, and Shadow Wood.
Report of John Oyler, Director of Golf: Mr. Oyler reported that the West bag storage area had been cleaned and the dysfunctional equipment removed. All golf bags were returned to the storage area last week and the area is operational. He made suggestions for adjusting guest fees and for increasing play at the East Courses. It was decided that guest fees should not change in 2010; however, suggestions for increasing play on the East Courses are under review. Tests for mold in several areas of the club have been taken and are being reviewed by an outside laboratory. If, in fact, mold is detected, management is prepared to immediately address the issue. Mr. Oyler pointed out that there had been a delay in getting approvals for the annual replacement of range golf balls and the restocking of merchandise inventories at the golf pro shops. After a short discussion, Mr. Garon gave immediate approval for the purchases.
Mr. Oyler regrettably reported that Andrea Drake, Club West Head Golf Professional, has accepted a position at another local club. We wish her the best in her new position and thank her for her service to the membership.
BBC General Manager’s Report: Mr. Staehle reported the following membership data:
At 1/1/09 At 9/30/09 Inc (Dec)
Golf 1,386 1,262 (124)
Sports 164 195 31
Social 442 484 42
Total 1,992 1,941 (51)
Although BBC has lost a net 51 members for the nine months ended September 30, 2009, it has lost a net 124 golf members at an annualized dues loss of $1,165,600 ($9,400/member). For the nine months, 26 new golf members have joined the club, however, most of these members joined in the earlier part of the year. Obviously, the loss of members and members downgrading their memberships from golf to sports/social are negatively impacting revenues.
Management of BBC has stated its intentions to aggressively invest in capital expenditures but it appears that capital expenditures beyond April, 2010, are highly dependent on BBC’s ability to increase revenues by the addition of new golf members and its ability to hold firm the existing levels of memberships, i.e., minimize the loss of members and the downgrading of golf members to sports/social memberships. Programs to increase the number of club members and, specifically, golf members, are under review.
Other Matters: Subsequent to BBG’s commitment to retain within BBC all income earned by BBC, the Advisory Board and the Turnover Committee each appointed two members to develop a process of verifying that, in fact, all revenues and income are being retained in the club. These members met with Mr. John Greeley, BBG Corporate Controller, Mr. Lynn Michl, RAS Consultant and Mr. Garon on October 14, 2009 to develop the appropriate process of verification. It was agreed by the parties involved that the AB/TOC committee would have complete access to the cash receipts and disbursements, together with monthly financial statements of BBC. Verification will take place monthly, beginning immediately, and members can expect to receive the appropriate assurances from BBG and the AB/TOC four committee members that the total income earned by the club, stayed in the club. The group will meet next week to work out the final arrangements.
Correction: Inadvertently, Joe Davi’s name was included in the Advisory Board’s letter of recommendation to the membership regarding the payment of dues. Mr. Davi was out of the country during the time the matter was discussed and did not participate in those discussions.
We encourage comments to the Advisory Board. Simply click onto the following email address: johnpinti@me.com
ATTACHMENT 1
Responsibilities of Advisory Board
Meet regularly with the General Manager and other key Club personnel. (Meetings are scheduled for the second Monday of each month October-April at 3:00 p.m. and last approximately two hours. Off-season meetings are at the discretion of the Board.)
Solicit and then represent the membership’s views and opinions regarding membership program changes, the operations of food and beverage, tennis and fitness, and golf.
Recommend to and consult with Club management and Bonita Bay Group senior management regarding Club policy and document changes.
Assist in the selection process of representatives to serve on various committees as needed.
Act in an advisory capacity concerning Club issues and operational concerns of the membership
ATTACHMENT 2
BBC Planned Capital Expenditures
10/09
11/09
12/09
1/10
2/10
3/10
4/10
Total Capital Expenditures for period $1,409,700
_____________________________________________________________________________________________________
UPDATED: October 14, 2009
_____________________________________________________________________________________________________
October 14, 2009
Dear Member,
For those members returning for season, welcome back! To those of you who have been in residence throughout the summer months, thank you for your continued support. I am pleased to announce that Bonita Bay Club West will totally reopen on Mondays, beginning October 19. With it, the Creekside golf course will also reopen, after experiencing the last of its summer renovations. The golf courses are in excellent shape, as we continue to work on vine and exotics control on the golf course perimeters. Many thanks to Hal Akins, Director of Golf Course Operations, and his fine staff of professionals, who have once again created wonderful playing surfaces for our members. As the months of September and early October produced a significant amount of rainfall, which will be important to us in the dry spring months, there are areas on the golf courses that remain wet. The reason we selectively continue to run irrigation is so the mounding and elevated areas do not dry out and visually become unpleasant.
Beginning Thursday, October 22, the Club Room will be open for dinner two nights a week, Thursday and Friday evenings. On Thursdays, we will offer the prix fixe menu featuring a choice of appetizer or salad, entrée, beverage, and Chef’s featured dessert. On Fridays, beginning, October 16, we will begin our seasonal P.O.E.T.S. (phooey on everything, tomorrow’s Saturday) nights with a changing buffet-theme dinner. This week, we will kick it off with the ever popular “Cahlua and Cream”…please make reservations early since this should be a sell-out! And keep in mind that everyday we have happy hour in the Club Room from 4:00 to 7:00 p.m. featuring 2-for-1 cocktails, beer, and wine.
This year, as a special treat and as a way to say “thank you,” we will offer Bonita Bay Club members the ability to dine at Backwater Jacks restaurant at the Marina Club from its opening date of Wednesday, October 21, though the end of this year! Backwater Jacks will be open seven days a week for lunch and dinner. Just show your membership card, and the charges will be billed back to your Bonita Bay Club member account.
Stay tuned for exciting information with the return of the events calendar, which will be distributed within a couple of weeks, also the October/November electronic edition of Bonita Bay Club’s newsletter, and other special events planned for this season. Please stop by the Club often and see all of your favorite staff, including John Oyler in golf, Paula Scheb in tennis, Tammy Mugavero in fitness, and many others as we await your return. And again, thank you for being members of one of the world’s finest private clubs!
Sincerely,
Robert G. Staehle
General Manager of Club Operations
_____________________________________________________________________________________________________
Subj: Comments re BBG
Date: 10/14/2009
I am a member of TwinEagles which may be the Club most severely
affected by BBG's violating their commitments. I and my fellow
members are mad as h*ll.
But too many of you folk (Michael, Art Herman for instance) are
wasting energy demonizing BBG, Lucas, Boates and so on when everyone
at all the clubs already knows that they are dishonest at best and
crooks at worst. I cannot tell which. The courts will choose.
Please focus your energy on finding pathways out of these messes.
Right now you are beating a dead horse and wasting your time and our's.
Find banks, buyers, developers, club management companies,
...whatever that might help find a way out.
Who knows, maybe you can make a backroom deal with BBG?
Please look for solutions rather than writing elaborate complaints.
Kevin O'Brien
_____________________________________________________________________________________________________
UPDATED: October 13, 2009
_____________________________________________________________________________________________________
Subj: Dues Refund
Date: 10/12/2009
Today I played Shadow Wood with several other BBC members. This leads to several questions. Why is Shadow Wood open and BBC closed? Their pro shop has merchandise and ours is empty...why? Their course had no weeds and ours still do...why? I believe BBG should give our members a refund of dues. We are paying for services that are not being provided and that is unethical. We paid for our courses to be open 7 days per weeek and have access to all of BBC's courses. The east courses are still closed. BBG is delivering a Pinto while we are paying for a Mercedes...shame on them.I hope our attorneys have this included in their law suit.
Al Grigaliunas
_____________________________________________________________________________________________________
Sent: 10/12/2009
Subj: A rewrite of David Lucas' article on Doing the Right Thing
Doing the Right Thing - Q and A with David Lucas (Reformed Quarterly,
Summer 2000) was in need of being brought forward to 2009 and made to
reflect his current beliefs. I have taken the liberty of supplying the
satirical rewrite below:
David Lucas is Chairman of the Bonita Bay Group (a non-existent doing
business as fictitious entity which actually has no corporate existence)
. Lucas joined Bonita Bay Properties in 1984 and, as chairman of the
board, has fostered a corporate culture that focuses on an
uncompromising commitment to integrity (doing everything and anything to
support the family), innovation (inventing new meanings for words such
as guarantee, refund, and member), and environmental stewardship
(promoting mold in locker-rooms and otherwise encouraging return to
nature at Twin Eagles and assorted other company facilities).
Q. How do you live out your faith in your business?
A. The acid test for me is "Am I doing the right thing? Is it Lucas
family-honoring?" Our company's vision statement is "The right team (all
yes men), creating the right community (one which honors and serves the
great Lucas name), by doing the right things (whatever helps to line our
pockets)," in short, "Do the right thing (steal the money any way we
can)." We hold every decision up to the scrutiny of how it affects our
personal pocketbooks. Some might think right and wrong are ever-changing
values, but a Christian knows that the absolute truth of the Bible never
changes. Since things like refund guarantees and promises about the
character of the communities we build are not in the Bible they can be
changed at will. It is not merely the prevailing social attitude, but
how it affects the Lucas’s wallet. I think people instinctively know
right from wrong; that's the job of our consciences. I'll admit that if
one does wrong over and over again, his conscience will become numb and
doing wrong won't bother that person as much as before. I should know. I
have been practicing that for almost three years now. But that doesn't
change whether something is right or wrong, and, deep down, people know
it. I know I do wrong. But so what?
Q. How does this philosophy work out practically in your business?
A. Recently, we verbally accepted (no contract) a bid on one of our hot
pieces of property, and later a higher bid came in. We said, "What
should we do?" It took us about two minutes to decide to accept the
lower bid even without a contract because we had made a moral commitment
to that person. Of course we demanded he pay us the higher price and
then some for delivering the contract to him. We made sure he knew that
reneging on our commitment to him would have been easy because he had
some questions about the purchase. We could have said, "We were just in
the negotiating phase and didn't have a firm contract." But our core
value is, "Do the right thing." We gave our word to accept the bid, and
we did, even though it could have meant losing $300,000. Instead we
demanded he give us an extra $500,000. And you know what? He consulted
with the Advisory Boards of our member clubs and he paid us the money.
Q. What do you mean by core values?
A. Core values define who you are, and who you are determines what you
do. You have to know in advance what you believe instead of reacting in
a crisis. We know that looking out for the Lucas family wallet is a
principal core value. Even if situations change and your core values
work against you, you still maintain them. The four core values in my
life are my Christian faith, my family, my work, and my community
service. Of these, my faith is the most important because, not only is
it a big part of my life, but it is what determines my values. My faith
is what allows me to know that god intended for me to be rich and that I
was entitled to money earned and worked for by other people. My faith
provides the framework for my decision-making and helps me identify the
important things in my life such as looking out for my wallet. My
community is an important value because I believe we should encourage
others to help us to build our wealth whenever possible. I believe we
are put on this earth to be good stewards, to take good care of our
gifts and possessions. There is no such thing as a self-made man;
everything we have comes from God. It is our responsibility to use them
in such a way as to honor Him. Nothing honors Him more than helping
ourselves to the hard work of others.
Some might think right and wrong are ever-changing values, but a
Christian knows that the absolute truth of the Bible never changes. I
know that looking out for the Lucas family fortune is what God wants me
to do.
Q. Have you experienced God's blessing by doing the right thing?
A. Sometimes in the short run, as in the business deal just mentioned,
it has hurt us. But in the long run, it actually does help in the
business world. When people know that your word is good, you get credit
for that over a period of time. People want to deal with a company that
they can trust, that will stand by its commitments. Of course that was
our past history but not our present. Instead we have learned to bully
people and make threats to get our way. I cannot do it myself, but God
gave us the kind services of a professional bully -- our chief
restructuring officer to help me out.
Over the years, selling property and homes was been easier in certain
cases because we had a good reputation. Many purchasers said, "We know
Bonita Bay is building this community, so it's OK." Little did they know
that I would use that reputation to blind them to my legal tricks. I was
given God’s blessing to lie cheat and manipulate and I am making the
most of it.
Q. How do you apply Christian principles internally within your business?
A. By respecting my family and its needs first. Humans are made in God's
image and deserve my respect as His creatures. Of course if you refuse
to honor my family’s need for money then you must be less than human and
as such are not worthy of respect. I want to do the right thing by my
family, rewarding them any time I can from whatever source by whatever
means. I want to create I-win-always situations. The world looks at
competition and business as win-lose - if I win, you lose. It's much
better for everybody if we can ask, "What is important to BBG? How can I
and BBG each get what we want?"
Q. How do you think the marketplace could be changed if Christians lived
out their faith?
A. By bringing about more BBG-wins-always situations. If business
competitors could deal more openly with each other and determine what
BBG wants, negotiations would be much easier. Just yield to my desires
-- like the Advisory Boards of my clubs. If employers could build trust
with employees, or if employees just recognized that we control their
lives and they must yield to my desires, the workplace would be more
pleasant. The old style of management -- "command and control"-is not
biblical, its just good sense. Someone sits at the top of the pyramid
and gives orders to everybody, who all run around to carry them out. The
Bible calls for servant leadership, where we as the employer try to make
it easier for our employees to do our bidding and their jobs well. Only
a fool will delegate responsibility and decision-making authority, and
only a fool tries to respect and trust his employees. In turn, they will
disrespect and mistrust him. My lesson is simple: I am like the Roman
authorities in the Bible. Render unto me what is mine and what is yours:
and I shall let you golf in peace. How one treats people is more
important than what one pays them. If they are treated with respect and
an employer assumes they will do the right thing, his employees are a
lot happier. In fact, people are very uncomfortable if an employer asks
them to lie cheat and steal. However, they respond very favorably to
statements like this: "We're in this for the long haul, and we want you
to do the right thing. Our creed is, 'Exceed expectations.'" By this we
mean do the right thing for our family and exceed our expectations for
putting money in our pocket. It took years but finally our employees
“get it”.
Q. Do you feel that your faith has deepened in trying to live for God in
your profession over the years?
A. It's deepened over the years, probably as a result of the hard times
rather than the good times. We've had some tough times, both in business
life and in personal life. God is seeing us through this present crisis.
We have escaped the threat of bankruptcy and the wrath of our enemies.
Our communities are contributing positive cash flow to line our pockets.
God has been very good to us.
Q. What advice would you have for a person just beginning to live out
his faith in the marketplace?
A. Avoid the temptation to take a short-term solution to a long-term
problem. Look ahead to the next thirty or forty years; don't allow
issues in the next year or so to control your thinking. Be patient and
be willing to do the right thing from the perspective that only you
count. In the long run it will be best both from a spiritual and
business standpoint. Above all, be true to your belief in entitlement.
It will carry you far.
Michael Lissack
_____________________________________________________________________________________________________
UPDATED: October 12, 2009
_____________________________________________________________________________________________________
Subj: David Lucas Morals and Ethics
Date: 10/12/2009 6:00:37 P.M. Eastern Daylight Time
From: George Shawneeki
Doing the Right Thing - Q and A with David Lucas (Reformed Quarterly, Summer 2000)
David Lucas is Chairman of Bonita Bay Properties, Inc., a family-owned development company, in Bonita Springs, Florida, and is a member of the RTS Board of Trustees. With degrees from Purdue University and Harvard Business School, last year he was one of the first laureates appointed by Junior Achievement of Southwest Florida to the Lee County Business Leadership Hall of Fame. He serves on the boards of several foundations and corporations, including the Southwest Florida Community Foundation, the Bonita Springs Community Foundation, and the Lee County United Way. His development company and its properties have won scores of awards over the years and recently received the development industry's highest honor, the Award of Excellence for a large-scale residential community from the Urban Land Institute.
Lucas joined Bonita Bay Properties in 1984 and, as chairman of the board, has fostered a corporate culture that focuses on an uncompromising commitment to integrity, innovation, and environmental stewardship. The company, which includes three master-planned communities, seven golf courses, and 950 employees, is credited with setting a new standard in environmentally responsible development.
Q. How do you live out your faith in your business?
A. The acid test for me is "Am I doing the right thing? Is it God-honoring?" Our company's vision statement is "The right team, creating the right community, by doing the right things," in short, "Do the right thing." We hold every decision up to that scrutiny. Some might think right and wrong are ever-changing values, but a Christian knows that the absolute truth of the Bible never changes. It is not merely the prevailing social attitude. I think people instinctively know right from wrong; that's the job of our consciences. I'll admit that if one does wrong over and over again, his conscience will become numb and doing wrong won't bother that person as much as before. But that doesn't change whether something is right or wrong, and, deep down, people know it.
Q. How does this philosophy work out practically in your business?
A. Recently, we verbally accepted (no contract) a bid on one of our hot pieces of property, and later a higher bid came in. We said, "What should we do?" It took us about two minutes to decide to accept the lower bid even without a contract because we had made a moral commitment to that person. Reneging on our commitment to him would have been easy because he had some questions about the purchase. We could have said, "We were just in the negotiating phase and didn't have a firm contract." But our core value is, "Do the right thing." We gave our word to accept the bid, and we did, even though it meant losing $300,000.
Q. What do you mean by core values?
A. Core values define who you are, and who you are determines what you do. You have to know in advance what you believe instead of reacting in a crisis. Even if situations change and your core values work against you, you still maintain them. The four core values in my life are my Christian faith, my family, my work, and my community service. Of these, my faith is the most important because, not only is it a big part of my life, but it is what determines my values. My faith provides the framework for my decision-making and helps me identify the important things in my life. My community is an important value because I believe we should help others whenever possible. I believe we are put on this earth to be good stewards, to take good care of our gifts and possessions. There is no such thing as a self-made man; everything we have comes from God. It is our responsibility to use them in such a way as to honor Him. Nothing honors Him more than helping others.
Some might think right and wrong are ever-changing values, but a Christian knows that the absolute truth of the Bible never changes.
Q. Have you experienced God's blessing by doing the right thing?
A. Sometimes in the short run, as in the business deal just mentioned, it has hurt us. But in the long run, it actually does help in the business world. When people know that your word is good, you get credit for that over a period of time. People want to deal with a company that they can trust, that will stand by its commitments.
Over the years, selling property and homes has been easier in certain cases because we have a good reputation. For example, we have been developing Bonita Bay for some fifteen years. Recently, we started another community nearby and had a much better than anticipated first year in sales, even though we had no finished homes to show. Many purchasers said, "Normally we wouldn't buy this early because we can't see the product, but we know Bonita Bay is building this community, so it's OK."
Q. How do you apply Christian principles internally within your business?
A. By respecting the individual. Humans are made in God's image and deserve my respect as His creatures. I want to do the right thing by my people, rewarding them any time I can. I want to create win-win situations. The world looks at competition and business as win-lose - if I win, you lose. It's much better for everybody if we can ask, "What is important to both of us? How can we each get what we want?"
Q. How do you think the marketplace could be changed if Christians lived out their faith?
A. By bringing about more win-win situations. If business competitors could deal more openly with each other and determine what each wants, negotiations would be much easier. If employers could build trust with employees, the workplace would be more pleasant. The old style of management -- "command and control"-is not biblical. Someone sits at the top of the pyramid and gives orders to everybody, who all run around to carry them out. The Bible calls for servant leadership, where an employer tries to make it easier for his people to do their jobs well. He delegates responsibility and decision- making authority, and he tries to respect and trust his employees. In turn, they respect and trust him.
How one treats people is more important than what one pays them. If they are treated with respect and an employer assumes they will do the right thing, his employees are a lot happier. In fact, people are very uncomfortable if an employer asks them to lie cheat and steal. However, they respond very favorably to statements like this: "We're in this for the long haul, and we want you to do the right thing. Our creed is, 'Exceed expectations.'"
Q. Do you feel that your faith has deepened in trying to live for God in your profession over the years?
A. It's deepened over the years, probably as a result of the hard times rather than the good times. We've had some tough times, both in business life and in personal life. When your faith is tested, that's when you grow. A year and a half ago I was diagnosed with Parkinson's disease. I wrote a letter to all my employees right after that. The last paragraph of it reads, "I hope that you will include my family and me in your prayers. My faith in Jesus Christ is strong. I know that He will see us through this trial. I believe that God has a plan for each of our lives and we can trust Him to know that it is the right plan. Thank you in advance for your support." My wife had breast cancer three and a half years ago - also a very difficult time for both of us. However, God has turned that trial into a positive experience also.
Q. What advice would you have for a person just beginning to live out his faith in the marketplace?
A. Avoid the temptation to take a short-term solution to a long-term problem. Look ahead to the next thirty or forty years; don't allow issues in the next year or so to control your thinking. Be patient and be willing to do the right thing. In the long run it will be best both from a spiritual and business standpoint. Above all, be true to your faith and become a servant leader.
Finally, determine your values, those principles that are important to you. The Apostle Paul said it best to the Philippians: "Finally brethren, whatever is true, whatever is honorable, whatever is just, whatever is pure, whatever is lovely, whatever is gracious, if there is any excellence, if there is anything worthy of praise, think about these things." Know what you believe, so that when the storm comes (and it will), you have made the tough decisions and can do the right thing.
_____________________________________________________________________________________________________
Sent: 10/12/2009 8:18:34 P.M. Eastern Daylight Time
Subj: Our Club
Harvey and Art, enough is enough from you two. I am tired of reading your redundant comments. We know where you stand and some of us agree with some of your points but are tired of reading over and over your thoughts about our situation. Let us make up our own minds. You guys get a life. Go have a stiff drink and commiserate together. The rest of us will return and assess the situation and decide what we want to do. The TOC has done a great and I continue to support them. Larry Mottice
_____________________________________________________________________________________________________
Subj: New Bonita Bay Rules & Regulation, Version 423.098.006
Date: 10/12/2009
From: Art Herman
Cutting to the quick, here are is a synopsis of the new Bonita Bay
Club Rules of the day.
1. The Rules, Regulations and Policies of Bonita Bay are whatever BBG
wants them to be at that particular moment.
2. The Rules, Regulations and Policies of the moment are not
necessarily those in the future.
3. The Rules, Regulations and Policies of the moment are not
necessarily those of the past either as they may be changed,
retroactively, at the total discretion of BBG.
4. Any previous Rules & Regulation, Policies, amendments, letters of
understanding or agreements, including Legal Promissory Notes issued
by BBG, whether issued in writing or verbally, have been deemed to be
inconvenient to BBG and are, therefore, either
no longer binding or otherwise restricted in the future.
5. In the event the above Rules & Regulations and Policies raise
questions regarding the Quid Pro Quo between the Bonita Bay members
and BBG, it shall be noted that BBG feels no obligation to provide any.
Should you have questions regarding Rules & Regulations or Policies
please call the clubhouse for any daily updates.
_____________________________________________________________________________________________________
Editor's note: The following is a response to the letter of 10/11/2009 from Jim Weaver.
Subj: A Time To Come Together
Date: 10/12/2009
From: Peter Lloyd Jones
Dear Jim,
Thanks for your email and for the encouragement. All three committee's are co-operating with each other very well. I think we and the membership are quite united in our mutual desire to get BB Group out of the BB community. There will always be a few people who do not support this effort but I sense there are very few of them now.
Regards,
Peter
_____________________________________________________________________________________________________
Sent: 10/12/2009
Subj: Letter to the Editor
We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
We plunked down our money, shook hands, signed an iron clad agreement to give it back in 30 days if we asked for it and you changed the rules in the middle of the game… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
You closed 4 of the 5 golf courses, didn’t open ‘um back up as promised and let them go to hell in a hand basket for lack of proper care and maintenance ... We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
You closed the dining room and left us no place to eat… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
You let the rats get into our golf bags and feast ’til there hearts were content and stomachs full… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
You filled the air conditioner vents full of mold and mildew and expect our wives and children to go in the clubhouse the one day it’s open and breath that mess into their lungs… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
You pulled up all the beautiful flowers in front of the club houses and left an ugly mess of mud and muck… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
You’ve broken one promise after another after another and you still ask for our trust and 100% of our money… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
Your actions have devalued the price of our homes by as much as 50%… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
You fired most of the staff that made this place “Paradise” and then didn’t follow through on promises for severance pay… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
In place of all the wonderful folks you axed without pay you hire some goon to boss us around, threaten us and be your front man puppet because you don’t have the backbone to face the great unwashed yourself… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
The Pro Shop looks like a close out sale at K-Mart... We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore…
YES… We’re-Mad-as-hell-and-we-ain't-gonna-take-it-anymore… But we know you have more surprises in store for the entire community. Fire when ready!
Harvey Siegel
Egrets Landing
_____________________________________________________________________________________________________
UPDATED: October 11, 2009
_____________________________________________________________________________________________________
Subj: The Fork In The Road
Date: 10/10/2009
To: Larry Russell - BB Comm Assoc
Peter Jones - BB Club
Vito Soranno - BB Marina Club
From: Ron Den Besten
Augusta Creek
Date: October 10, 2009
I believe we are approaching a critical junction which presents us an opportunity to choose
Fork A: Softball OR Fork B: Hardball.
A. Softball - CONTINUE TO WAFFLE
BBG / Boates are playing us like a piano. Every 30 days, residents and members experience angst over their decision whether or not to send in another month's dues payment. Recently an increasing number of members began paying slowly or withheld payments. BBG policy is: if payment is not received by BBC by the 15th, a member's privileges are "suspended"; if payment is not received by the 31st (month end), a member is subject to being "terminated".
When members received notice and threats, including Boates' letter, that their privileges could be "suspended", many or most caved in and paid up. Obviously the BBG / Boates strategy and tactics are being reinforced as being effective. Meanwhile, Boates' "commitment" to cease diverting funds to BBG through January 31, 2010, is not genuine, verifiable or empirical. It is noteworthy that there has not been a BBG / Lucas apology for diverting and commingling millions of dollars. Some folks who believe in the
8th and 9th commandments think that stealing and lying is kind of a big deal.
In addition to the BBC policies, the Rules and Regulations & Second Amendment (56 pages of
lawyer-speak on www.bonitabayclub.net) has an abundant amount of illogical and retaliatory language which is serving BBG well to keep the cash flowing in. The threat of "suspension" would be an interruption in lifestyle and recreation choices. The threat of "termination" would be severe punishment whereby one would be enjoined from being a guest at any BBG facility . . . no golf, tennis, bridge, lunch, dinner, Thanksgiving, Easter . . . nada . . . Does BBG contemplate hiring bouncers to eject "terminated" violators?
Furthermore, if members choose to downgrade or resign, then sit on the side lines, advancing up the queue whilst waiting to receive an initiation refund, they may not subsequently change their mind and attempt to rejoin. There is a "waiting period" of 3 years. There are many other Rules & Reg's provisions which also are not welcoming, attractive or competitive for either current or future members.
Fork A option is a choice to continue to waffle in "purgatory", not knowing whether we will remain at impasse ad infinitum and/or continue to receive, consider and reject BBG term sheets which have no chance of viability or sustainability.
B. Hardball - SHUT OFF THE "CASH COW" REVENUE SPIGOT
I believe the critical junction to consider and choose Fork B is mid to late November; before any resident sends in payment for BB Comm Assoc fees for 2010; before any member sends in any payment for BB Club dues for January 2010; before any BB Marina Club member sends in payment for boats or BWJ for January 2010. Collectively, the cash flow for the above three components is greater than $20 million per annum.
We don't know how many millions of dollars are skimmed by BBG. It's purported that BBG's Key Bank debt has been reduced from $120 million to $75 million. Perhaps someday a professional forensics accountant will uncover truthful sources and uses of BBG funds.
Choosing Fork B by individuals, even if a few hundred individuals, is not effective. But, if Fork B is supported by a unified overwhelming majority of BB residents and members, it has the potential of being effective;
that is: shut off the "cash cow" revenue spigot; ideally NOT ONE DIME OF CASH FLOW TO BBG
beyond January 1, 2010.
Consequences of Fork B? Keeping our eye on the primary objective, hopefully a consequence would be meaningful negotiations to successfully consummate complete turnover of all assets within the BB community. Potentially we could be victims of temporary inconveniences if BBG closed the Club(s).
Members could be "terminated". In the extreme, the Lee County Sheriff could serve every resident a nasty letter from BBG related to delinquent BBCA fees. BBCA Security could disallow entry at the gate to get to the homes we own.
For Fork B to become effective, the following would probably be required: (1) A well prepared explanation of options A and B, (2) Distribution to all residents for review, (3) Town hall meeting(s) to further present options A and B, including ramifications and consequences, followed by Q & A, (4) An overwhelming ground swell of support for the Fork B option, (5) Inform BBG of our resolve, (6) Shut off the revenue spigot to BBG
no-later-than January 1, 2010.
HARDBALL !!!
Yogi said it first and best: "When you get to the fork in the road, take it".
Which road will we take . . . A. Continue softball for BBG ? Lucas / Boates fools ???
or . . . B. Hardball ???
Ron Den Besten
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Subj: A Time To Come Together
Date: 10/11/2009
In-light of BBG's recent actions-changes to rules and regulations it is apparent that we are dealing with an adversary who will do anything to preserve their way of doing things.Now is the time for all of us including the three TOC'S to get together and join in unison to let then know unequivocally that we are all united in our quest to own this club.Renting a hall is not a problem.We could get all members together and allow each of the TOC"s to explain their plans-WITHOUT REVEALING INFORMATION that could be detrimental to our cause.
We must unite.
Jim Weaver
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UPDATED: October 10, 2009
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Subj: Status Report
Date: 10/10/2009
Status Report
Alternative Golf Program
If The Bonita Bay Club Closes
Number of foursomes allocated per day in
parenthesis ( )
A. Clubs that have declined to participate:
1. Quail West--even though we can guarantee between $100,000 and $200,000 a month
2. The Forest
3. Vasari (in season only) they are a bundled community
B. Clubs that are still in the approval process:
1. Audubon
2. Estero CC (The Vines)
3. Renaissance
4. LaPlaya
5. West Bay
6. Olde Cypress
C. Clubs that will participate:
1. Miromar(6)
2. Old Corkscrew (6)
3. Palmira (20)
4. Renaissance (TBD)
5. The Quarry (TBD)
6. Plantation (TBD)
7. The Vineyards (10 to 15)
8. Tuscany Reserve (various)
The price list is not yet complete, but the current range (in season) is $80 to $165 including a cart, and in some cases lunch.
We are working with EZLinks to develop a custom designed automated tee time system.
We will be in touch when we have more information.
Hunter Caffee
Terry Alley
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UPDATED: October 9, 2009
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Subj: Alternative golf program
Date: 10/9/2009
In the next couple of days I will have an update on the alternative golf program that will be available if our club closes. Hunter Caffee
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Litigation Supported by TOC – Oct 7, 2009
October 7, 2009
Dear Fellow Bonita Bay Club Members,
Included with this document are complete copies of several of the complaints against BB Group that are being supported by the TOC. These complaints are posted on this website at the request of the TOC and with the consent of the plaintiffs involved. The TOC has entered into agreements with the plaintiffs that, in return for the TOC funding the cost of the litigation, provide the TOC with a fair degree of control over the litigation process and any settlement discussions that might occur.
The complaints that are included with this document are:
1. The class action complaint;
2. The complaint filed by Gary Jaarda; and
3. The complaint filed by Helen Newhall.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
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Subj: BONITA BAY GROUP IS DROWNING !!!
Date: 10/9/2009
READ MY LIPS… BONITA BAY GROUP IS DROWNING !!!
They are drowning in a sea of their own self-made, misdirected, misdiagnosed, greedy, self wrought muck! In all fairness… they’re not alone. Many major corporations in the US are in the same boat. They need to be rescued. The rescue formula is simple. An instant turnaround in the real estate market. This will enable them to: Sell the property they purchased at over inflated prices and then stuffed millions of infrastructure dollars into for development. Who could disagree with that?
The problem is… the market is not going to turn around on a dime. It IS and is going to be a long slow grind up hill until those days return. So what does a drowning BBG do if they’re not going to be plucked out of the water and rescued shortly? STAY AFLOAT! Get a life preserver! Refinance their loan with Key Bank (Nov. 18, ’08 @ $120,000,000.00), cut their operating cost to the bone and pay every dollar they can scrape together… even some from their own pockets, to repay the note and stay afloat until the market turns around. It’s not a difficult or complex formula to understand.
There’s only one problem. The Club members have been unwittingly drafted by BBG as participating members of the rescue committee! Remember the old adage that went something like: I’ve got good news and bad news. The good news is a group of cannibals has invited you and your friends over for dinner. The bad news is… YOU ARE DINNER! By simple rule changes, BBG, with the advice of their legal counsel, found an instant resource to keep them afloat… YOUR MONEY! It has come in 2 sources. 1st) Stop paying back refunds to resigned members, and 2nd) Divert members Club dues to repayment of loans by cutting back on services, maintenance and capitol improvements at the club. You don’t have to be a Harvard graduate to see this scenario.
What can the club members do? Simple formula:
1) Downgrade your membership to a social
2) Stop feeding the kitty
3) Find another place to play golf for this season because BBG will fold
4) File a class action lawsuit for return of deposits… (DONE)!
5) Bind together as a group and stand tall and firm! (Support TOC)
And now for your thoughts… please.
Harvey Siegel
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Sent: 10/9/2009
Subj: Latest BBG Amendment
Before you prepay your annual dues, TwinEagles may have different 'amendments' than BBC.
BBG has also chosen to retain all prepaid dues following a resignation, and will only refund any unused prepaid dues when one reaches the top of the resignation list. At TwinEagles we have members, of which I am one of many, who elected to prepay dues for six years in return for a discount on said dues and free cart rental. Dues were paid in full through 2010.
BBG has not only closed our entire facility, they refuse to refund our deposits upon resignation as per all their clubs, and NOW they refuse to refund prepaid dues upon resignation. BBG closed our club supposedly because some members discontinued paying dues after a significant reduction in service and facility. However, BBG did not offer to refund to all the prepaid members the dues prorated to the time of closure.
BBG will be meeting with TwinEagles members and prospective 'buyers' of the club and real estate on October 16th. You may want to follow this situation, to see if BBG chooses to reopen TwinEagles in an effort to encourage the membership to be a constructive partner with their potential 'buyers'. It might provide insight as to their desire to cooperate with membership to achieve a successful turnover. I expect BBG will make no changes, to force the membership to accept whichever buyer will pay them the highest amount, with no consideration of the member's desires. Should this occur, I also expect that our 70 nonresident members will choose to join elsewhere, in a financially sound and ethical facility. There certainly is no shortage of excellent golf memberships, at great value, in Collier county.
If BBG however acts responsibly, I believe our membership, resident and nonresident, will act constructively with the new owner to return our club to the enjoyable, friendly atmosphere which existed a year ago. I am not holding my breath.
Best wishes to all of the BBC members with your future negotiations. Just be careful prepaying dues.
Dr. Marc Slivken
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UPDATED: October 8, 2009
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Report #28
Bonita Bay Club Turnover Committee
October 8, 2009
Dear Fellow Bonita Bay Club Members,
This is the twenty-eighth communication from your Turnover Committee (the "TOC" or the "Committee").
Our twenty-seventh communication was an announcement that BB Group had agreed to devote all cash flow generated by the Club to the cost of Club operations through January 2010 and a recommendation from the TOC that, based on this commitment, members should continue to pay their dues during this period.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
Recent Amendment to the Rules & Regulations
BB Group has recently attempted to amend the Rules and Regulations of our Club. The purported Amendment was posted on the Bonita Bay website on September 29, 2009 although it claims to be effective as of September 1, 2009.
The full text of the purported Amendment can be viewed by going to the website www.bonitabayclub.net. Click on "Members", then sign in as a member, then click on "Club Information", scroll down to "Membership", and then click on "Rules & Regulations". The amendments are labeled as "2nd Amendment".
Below is a summary of the principal terms of these purported amendments, followed by a commentary from your Committee on the amendments. This summary is qualified in its entirety by reference to the full text of the amended Rules and Regulations. Members should not rely on this summary to make any decisions regarding their membership.
Summary of the Purported Amendments
1. Resignations must be in writing and no resignation will be effective until all initiation fees, dues and other amounts owed are paid in full, nor will the member be assigned a position on the Resigned List.
2. A separate Resigned List will be kept for each membership category, with members added in chronological order based on the effective date of their resignation.
3. A member who is terminated by the Club will be treated like a resigned member (all charges must be paid in full to be added to the Resigned List) except that a member who is terminated may not be a guest at any club affiliated with BB Group.
4. Upon the death of a member, any surviving Designated User may either continue the membership or terminate the membership in writing within six months. If the membership is terminated, any refund amount will be placed on the Resigned List.
5. Resigned members will be entitled to a refund of their initiation deposits, less any amounts owed to the Club, on the basis of one member refunded for each three new memberships issued in the same membership category, provided that the ratio may be adjusted to ensure that the amount collected from new members is at least equal to the amount paid to resigned members.
6. Refunds will be paid to members in 30 years from the original date of issuance of the membership if no resignation and refund of the membership has occurred prior to such date and membership remains in good standing.
7. A member who resigns or is terminated may not become a member, in any category, of any club owned by BB Group for a period of three years following the effective date of the resignation.
8. After the Club is converted to an equity club, the members' initiation deposits will be considered part of the purchase price.
9. A member in good standing who is selling his/her home in Bonita Bay may transfer their membership to the new purchaser of their home within sixty days of the purchase agreement, irrespective of the Resigned List. The selling member will receive the lesser of their own initiation fee or the new membership fee paid by the purchaser and any remaining amount owed to the seller will be put on the Resigned List.
10. A member that resigns must pay their dues and other charges until the end of the month in which the effective date of the resignation occurs. The Club reserves the right to move any resigned member to the bottom of the Resigned List if any amounts remain owing to the Club.
11. The Club will determine the amount of dues, fees and charges payable by the members each year and such charges are subject to change from time to time.
12. All dues and charges are payable within 30 days of billing. Thereafter, a charge of 1 ½% per month will be added until paid in full. The Club will have the right to suspend membership privileges if dues or other charges are more than 30 days overdue.
13. A request for a leave of absence must be in writing and must state the reason for the leave of absence. The reason must be approved by the Club in its sole and absolute discretion. A leave of absence must be for a maximum of one year and the member must pay a fee equal to one-half of his/her annual dues.
14. The Club may, in its sole and absolute discretion, permit a member to downgrade to another refundable category of membership. A downgrade will require the member to resign his/her existing membership. The downgrade will become effective on the later of (i) the end of the month in which written notice of the downgrade request is received, and (ii) the date all amounts owing to the Club are paid in full.
15. Downgrade members will be placed on the Resigned List and must continue to pay dues to remain on the Resigned List. The amount of refund they are entitled to receive eventually will be the difference between the original initiation fee paid and the amount required to join the Club at the downgraded membership category.
16. A member who downgraded cannot upgrade until three years after he/she receives a full refund from the Resigned List.
Commentary on these Amendments
The TOC opposes these amendments, and we view them as further evidence of BB Group's repudiation of prior promises and disregard for the rights of the members.
We continue to believe that BB Group is simply wrong in thinking that it can collect millions of dollars from us based on promises of "instant refundability" and then unilaterally change the rules after taking our money. We also believe that the members of the Bonita Bay Club have the strongest case against BB Group because we, unlike members of the other clubs developed by BB Group, received promissory notes, which confirm and memorialize the concept of instant refundability. Our lawyers remain optimistic about our legal position, both in the class action lawsuit and in the individual lawsuits which the TOC is assisting. As pressure is applied through the legal process, we hope that BB Group will eventually become reasonable and realistic in the negotiations so that we can reach a settlement that is fair to all parties.
In addition, the TOC believes that BB Group should not be attempting to amend the rules retroactively and that the proposed 3 for 1 refund policy is in conflict with the terms of the members' promissory notes. Furthermore the new rules that any member that resigns cannot rejoin for a period of three years and that any member who downgrades cannot upgrade until three years after he/she receives his/her partial refund are illogical and simply retaliatory.
In addition, our lawyers will put BB Group on notice that the continued payment of dues and the use of the Club's facilities by the members does not constitute an acceptance of or acquiescence to these amendments and does not imply any waiver of our rights to contest the validity of these amendments.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
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Subj: BBC Rules & Regulations
Date: 10/8/2009
Not unexpectedly, as unofficial chief antagonist of BBG, I have the honor of being the first, or one of the first, BBC members whose club membership has been terminated by BBG. I feel like Bernie Madoff sent my check back.
Of course my first question was in reference to the documents I have when I joined the club which state, with zero ambiguity,"
"in the event of a Termination of a membership prior to the repayment by the club of a member's initiation deposit, BBP shall, within sixty days following the termination, repay in full to such member his initiation deposit."
Of course, you guessed it, they changed the rules and regulations. Now, if you are terminated you for any reason, you go to the resignation list. Which leads us back to the core of this whole problem by asking the question
"Why is there even such a thing as a termination list? "
At any rate, it is clear that if you are interested in any Rules or Regulations For Bonita Bay Club in the future you should just call the club as any document you have might well be "amended".
Or, Bonita Bay Club could publish the following Rules & Regulation and save a few trees.
The Rules & Regulations are whatever is to the benefit of BBG at the moment with no regard to any past commitments or inferences, written or verbal.
I look forward to seeing you all at the club once all the rats have been cleared out of the storage room and anywhere else they are lurking.
Art Herman
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UPDATED: October 6, 2009
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Bonita Bay Club Turnover Committee
October 6, 2009
Report #27
Dear Fellow Bonita Bay Club Members,
This is the twenty-seventh communication from your Turnover Committee (the “TOC” or the “Committee”).
Our twenty-sixth communication was a report on the letter from Tim Boates to the members dated October 2, 2009, about which the TOC was seeking clarification, and a comment on the subsequent letter from the Advisory Board to the members.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
Email from Tim Boates of October 6, 2009
Your Committee is pleased to announce that we have received an email from Tim Boates today providing the clarification we have been seeking and confirming that all cash flow generated by the Club through January 2010 will be used strictly to fund the cost of Club operations. The complete text of the email was:
“Sorry for the delay in responding. Per your query, Bonita Bay Group ("BBG") confirms that in order to stabilize the operations of the Bonita Bay Club ("BBC") through January 2010, all cash flow generated by BBC, be that cash flow from the collection of dues, restaurant, pro shop, or other club sources, will be used strictly to fund the cost of BBC operations, including the payment of management fees to New Leaf Management, payments to Veritas for employee payroll and related liabilities, and payments to RCS for water usage (all such fees will be determined on the basis of current fee structures for New Leaf, Veritas, and RCS). The BBC cash flow will not be used to fund any allocated debt service charge or other payments to BBG. The proposed period (through January 2010) will allow for the continued negotiation of a sale of BBC to its members, as well as the likely resolution of active litigation related to BBG's right to amend its membership deposit refund policy.”
On the basis of this commitment from BB Group, your Committee is hereby honoring its previously stated willingness to recommend to all members that they continue to pay their dues to the Club. Since BB Group’s commitment with respect to the use of funds is until January 31, 2010, the TOC’s recommendation with respect to the payment of dues also applies until that date.
Over the next few days, the TOC will be discussing with BB Group the best way to verify for the members that BB Group is fulfilling its commitment above, but as evidence of our good faith, we are not delaying our recommendation until this matter is agreed upon.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henri Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
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Sent: 10/6/2009 1:08:14 P.M. Eastern Daylight Time
Subj: Mediterra Statistics
Click Here to see Mediterra Advisory Board's report on the residents and members response to purchasing the Club from BBG
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Sent: 10/6/2009 1:43:06 P.M. Eastern Daylight Time
Subj: Advisory Board
Advisory Board
I feel compelled to offer the following comments re:your recent membership communication.
First let me challenge the notion that we should "support" "our" club. It should be painfully obvious that there isn't the slightest element of ownership in this "club". There is no "OUR". It's a bit mind boggling that you can make such a statement after the members have already supported it to the extent of over $4 million in excess cash flow so far this year, where did that "support" go? And now BBG is whining about dues reductions! And more threats!
Second, how can you use the term "good faith" and BBG in the same sentence. The TOC fully recognizes that what BBG calls negotiations smells more like extortion, threat after threat. The Advisory Board of all people should understand BBG's mode of operation after the Kitty Green "negotiations" early this year which it turns out were nothing more than a stall tactic. "Good faith"? You must be kidding.
Lastly, had the Advisory Board taken forceful direct action in the beginning we would likely be in a very different position now. You are, if nothing else, consistent.
The TOC is doing a superb job while the Advisory Board continues to encourage BBG's divide and conquer tactics.
Jerry Evans
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Subject: Dues Strike
Date: 10/6/2009
I am sick and tired of these drawn out negotiations. It is time for combined action on the part of Mediterra, Shadow Wood, and BB members to withhold dues or downgrade memberships starting Jan 1, 2010. Inform BBG of that intention and invite more serious negotiations in the interim. These people will only respond to money. I am disgusted with every one of them. I am also very grateful to all the members of the TOC.
Ken Meyer
Oak Knoll
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Subj: Bonita Bay Club
As we watch the negotiations between our TOC and BBG, arriving at agreement may be difficult. While there are many issues to be resolved, a key issue is the initiation fees. BBG want to pass this liability on to the " New Club " and the TOC cannot table an offer that burdens the " New Club " with such an obligation. End of story.
The TOC is doing a very professional job. We are fortunate to have this team represent our interests. Club members and residents should send cheques to all the TOC's so they can build their " war chest ". Good luck with the on going negotiations !!
Bob Beaupre
Waterford
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Open Forum
October 6, 2009
Wouldn't it be nice... (Beach Boys)
Wouldn't it be nice if we were older
Then we wouldn't have to wait so long
And wouldn't it be nice to live together
In the kind of world where we belong
Wouldn't it be nice... if David Lucas would call a "town Hall" meeting at the club where all interested members could join together with him one on one, mano-a-mano, for a down to earth 'truthful" explanation of what has happened to his dream here at BB?
Wouldn't it be nice... if all parties weren't put through the stress and strain of "Cut Throat Boates" threats"?
Wouldn't it be nice... to pay your club dues and know you're getting dollar for dollar return?
Wouldn't it be nice... if BB lived up to their stated Philosophy & Core Values:
1 • To create exceptional experiences
2• To enhance the community through our leadership efforts
3 • To protect our natural environment
4• To conduct ourselves with integrity in everything we do.
Wouldn't it be nice... If David Lucas would just simply come clean?
Harvey Siegel
Egrets Landing
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Subject: Trying to do the right thing
Date: 10/6/2009
Dear fellow members,
My husband and I chose Bonita Bay for our retirement home because, as the listing realtor brought to our attention, we were 'buying a community." The deal was sealed after he took us to the clubhouse and grabbed a golf cart and gave us a tour of the parks and golf courses, emphasizing to my husband, that we have five beautiful golf courses to play. We spent two wonderful seasons in our new home before the BBG reneged on its promises to its members.
After months of reading correspondences, contemplating, and finally visiting our Florida home to observe "first hand" this complex and vexing situation, we knew we had to make a difficult decision. Clearly, if we continued to support the Bonita Bay Group by paying our dues, we would be abetting unethical behavior. Terms of promissory notes had been disregarded, employees dismissed without severance pay, the dining room closed except for one day a week, and needed capital improvements not made. As the Bonita Bay Club fell into disrepair, our membership dues were diverted to heaven knows where.
The big question for us was, "What should we do?" Despite the Bonita Bay group changing the rules (does this sound familiar?) regarding its membership policy, we downgraded our membership from a golfing membership to a social one. Apparently other members also decided to not support the BBG, by resigning, not paying their dues, or downgrading, enough that Tim Boates sent a threatening letter stating that if most dues were not paid, the club would be closed. Furthermore, he dangled the carrot that the club would be returned to its former glorious self if dues were paid. Why did it take the threat of losing income for leaders of Bonita Bay Group to do the right thing? The answer is they were not doing the right thing, they were doing the expedient thing, and what is expedient now may not be expedient next week or next year.
My husband and I agree that we cannot in good conscience further the status quo. My husband is willing to forego his golfing privileges, a painful decision for him, if it leads to equitable resolution. We feel that the TOC is doing its best to reach such a resolution, and we are 100% behind its efforts.
Sincerely,
Jan and Steve Porterfield
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Sent: 10/5/2009
Subj: Joe Davi's Addendum to Special Update from the Advisory Board
"I returned the night of 10/4 after 2 weeks in Europe with limited access to email. My comment to my fellow AB members prior to leaving for Europe was "I am not in favor of a BALANCED (emphasis added) statement of support for dues payment" and, from Europe my e-mail comment was "would suggest close coordination with the TOC during these tricky times". Here is my addendum to the AB "Special Update"issued 10/4.
I am in accord with the AB's desire to spare us all from the downward cycle of declining membership. Also, I am OK with the notion of paying dues during these difficult times as the TOC does our negotiating work (thanks to them) and as we try to clearly establish our rights through the Courts. In fact, I continue to pay my dues monthly. However, I am not in accord with the tone conveyed by the AB Update and had I been able to participate, I would have suggested the tone of the following be changed:
(1) "disappointment of having our developer not repay our notes...still lingers". The use of the term "disappointment" is an understatement. Many of the members are outraged...and are suing them!
(2) "run a very real risk of...possible bankruptcy of the CLUB (emphasis added) and loss of our property values". Bankruptcy of BBPI (the BBG subsidiary that owns our Club) may well prove to be the route to our eventual success and should not be cast in the light of something we the members should seek to avoid. Also, any loss of our property values attributable to Club decline should be reversed once we take control and right the ship!
(3) "we think BBG made a sincere, good faith effort to provide us that written commitment...(about using our dues for Club purposes)". BBG's sincerity is in severe question in my mind and I am looking to our TOC to make that call.
Thank you for taking the time to read my addendum.
Joe Davi (Advisory Board Member, effective 10/1)
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Bonita Bay Club
Turnover Committee
Report #26
October 5, 2009
Dear Fellow Bonita Bay Club Members,
Our twenty-fifth communication from your Turnover Committee (the "TOC" or the "Committee") was a request for contributions from all members of an additional $500 from each golf membership, an additional $250 from each Sports membership, and an additional $125 from each Social membership. In addition, we announced that we would be requesting a $125 contribution from all residents of Bonita Bay who are not members of the Club.
All of our previous communications can be found on our website at www.bbtoc.wordpress.com.
Letter from Tim Boates to Members dated October 2, 2009
On October 2, 2009, Tim Boates sent a letter to all members with respect to the payment of dues and the planned restoration of services at the Club. The TOC is pleased by the more constructive tone of this letter and by the apparent willingness of BB Group to make some much needed expenditures on the facilities of the Club, albeit from funds paid to the Club by the members. The TOC is disappointed however, that the East courses will not be opened until December 1, even if dues continue to be paid.
There were several statements in this letter which were ambiguous, so your Committee has been seeking clarification from BB Group on the intended meaning of these statements. To date we have not had a response to our request for clarification.
In particular, the fourth paragraph of Tim Boates' letter states:
"As committed in our offer to the BBC Turnover Committee on September 21, 2009, BBG is prepared to implement an operating structure that includes dedicating the net cash flow generated by BBC for exclusive use on BBC needs. Although certain issues require further negotiations to ensure that there is a clear path to a turnover of BBC to its members at a time that the members are prepared to accept such a turnover, BBG's commitment is real."
Your Committee was concerned that members might be misled by the above paragraph into believing that BB Group was agreeing to limit the use of our members' dues solely to legitimate Club purposes. Although we have not yet received the requested clarification from Tim Boates, your Committee believes that the paragraph above was simply a restatement of BB Group's offer of September 21 and not a current commitment with respect to the use of the cash flow generated by members of the Club.
Your Committee rejected the offer from BBG of September 21, 2009 in a letter to BBG dated September 22, 2009 which included a list of the reasons for rejecting the offer. The offer from BB Group was included in our report #21 and our response to this offer was included in our report #22.
Among the stated reasons for rejecting BB Groups' offer was that $20 million of BBG's debt that would be transferred to the Club, which would involve a debt service burden on the Club of at least $4 million per year. This burden would require "a significant dues increase or a significant reduction in services (or both) in addition to the lack of funding for capital replacement or improvements." The TOC had concluded that this structure is tantamount to BBG removing at least $4 million of the members' dues from the Club each year for its other corporate purposes for a period of at least seven years. In the paragraph from Tim Boates' letter quoted above, the "net cash flow" which would be for "exclusive use on BBC needs" could be the net cash remaining after these payments were made to BB Group's banks.
In report #24 to the members, dated September 28, 2009, the TOC stated:
"The TOC is not making any recommendation to the members regarding the payment of dues at this time. If the BB Group were to agree in writing to limit the use of our members' dues solely to Club purposes, we would be prepared to recommend that all members continue to pay their dues during this transition period."
This statement continues to be the position of the TOC. If BBG is willing to commit unequivocally to limit the use of members' dues and other revenues solely to the Club's operating expenses and capital requirements, the TOC will then recommend that all members pay their dues during the transition period while negotiations are ongoing.
Letter from the Advisory Board to all Members
On October 2, 2009, just prior to the release of the letter from Tim Boates, the TOC was requested by the Advisory Board to collaborate with it in sending a joint communication to the members recommending the payment of dues. Your Committee declined to make such a recommendation for the reasons stated above, which were carefully explained to the Advisory Board. The Advisory Board proceeded to make the recommendation to the members on its own. The TOC will not support this recommendation unless and until BB Group agrees to limit the use of members' dues and other revenues solely to the Club's operating expenses and capital requirements.
Respectfully submitted,
The Turnover Committee
Phill Ashkettle
Dave Barry
Dave Bowers
Henry Dyner
Tony Heyworth
Lance Johnson
Peter Jones
John Klocko
Cindy White
_____________________________________________________________________________________________________
Sent: Mon, Oct 5, 2009
Subject: Boates is loaded for bear...
Open Forum
"Boates Bashing"
With all the "Boates Bashing" going on please take note that Mr. Boates is NOT
firing blanks!
Just a few short months ago he filed an affidavit in his similar capacity as a
restructuring officer in which the company he represents, DRUG FAIR GROUP, INC.,
filed for a Chapter 11. A brief reading of this simple 52 page affidavit, which
is one of thousands of pages in the case in chief, shows the company claims $230
million in debt. Numbers sound familiar?
He's loaded for bear. If this is what we want... he can deliver! I'll bet even
money the pages have been prepared for BBG and are simply awaiting a print
command! Any further dues paid before this type of action is tantamount to
throwing your cash in the Gulf!
Click for AFFIDAVIT PREPARED BY TIM BOATES:
http://docs.google.com/gview?a=v&q=cache:ViDlyom4qqoJ:chapter11.epiqsystems.com/ViewDocument.aspx%3FDocumentPk%3D1fac1ba2-2da0-4ecd-89d7-9b5ef48a4ba6+%22Timothy+D.+Boates%22&hl=en&gl=us&sig=AFQjCNEVK2UdWlPZWEJUo7NZ27QBj61E-A
Harvey Siegel
Egrets Landing
_____________________________________________________________________________________________________
Sent: Mon, Oct 5, 2009
Subject: Plea to control the $
I remain hopeful that someday there will be turnover of all BB assets: BB Community Assoc.,
BB Club and BB Marina. It is not clear whether turnover(s) can occur pre or post BBG bankruptcy.
I also believe that eventually plaintiffs will prevail in the Class Action Complaint filed 9/22/09,
as well as some of the other pending law suits. BB residents and members are on the right side
on all of the above, but unfortunately, no one is predicting turnovers or litigations to be resolved quickly.
In the meantime, it is tragic that Bonita Bay Group (NOT the BB residents or members), are the
cause of the cascading deterioration within the community and clubs. Countless residents have
articulated, in various ways, their outrage over the fact that BB fees and dues have been the
"cash cow" feeding the opposition and the cow is getting skinnier. Essentially, "It has all been said,
but not everyone has said it yet." Under present circumstances, it is inevitable residents and
members will cease paying fees and dues ad infinitum, regardless of consequences. BBG refers to
this as a "choice" to be "terminated."
The evidence is clear and indisputable that BBG is not trustworthy. Lucas' letter dated 9/23/09 and
Boates' letter dated 10/2/09 were both incendiary, throwing gasoline on the fire. It appears the flames
have not been mitigated by the well intentioned BB Advisory Board letter dated 10/4/09. BB residents
and members are "Mad-as-hell-and-we-ain't-gonna-take-it-anymore!"
It is widely recognized that all 3 Turnover Committees (BBCA, BB Club and BB Marina) are
outstanding, they have overwhelming support, and they are at the top of their game. We have
not lost sight of the primary goal: successful turnovers.
In the interim, it is critical who controls the money.
IF, as requested in the Class Action Complaint, the Court issued an injunction and imposed a
constructive trust to manage all revenues, etc., the desired results might substantially be achieved;
although BBCA and BB Marina are not plaintiffs in the Complaint, and BBG is not trustworthy
to manage those revenues either. Unfortunately, we can not rely on a prompt resolution from
the Court.
It seems we are approaching a critical junction: continued deterioration OR stabilization and
restoration??? If BBG continues to control the $, we can only expect continued deterioration.
Lucas and Boates have both promised "not paying dues will require that BBG further reduce services."
Re-staffing, opening courses, lunch services, cap-ex, etc. etc. are all contingent on BBG continuing
to receive "net free cash flows." If, on the other hand, some form of escrow fund trust can be
established and managed, possibly we can achieve some level of stabilization and restoration.
Therefore, I am earnestly appealing to our 3 Turnover Committees and legal counsel, to PLEASE
find some way to effectively control the $: BBCA, BB Club and BB Marina. (Note: We will soon receive
BBCA statements for 2010 fees, approximately $6 million). There must be a better option than those
currently available, namely: pay under duress, downgrade, quit, or "termination" and loss of
privileges. I believe the BB residents and members are willing to pay, but NOT to BBG.
Respectfully submitted,
Ron Den Besten
_____________________________________________________________________________________________________
Sent: Mon, Oct 5, 2009
Subject: Recent BBC Advisory Board Letter
I want to thank the the Advisory Board for providing some necessary clarity and rationality. I back your suggestions and hope that other members will do the same. The one caveat that I have is to keep all dues at the BBC and utilize them to properly maintain the Club and perform maintenance outlined in Mr. Boates recent letter.
Graydon Robert "Rob" Boeck
_____________________________________________________________________________________________________
Sent: Mon, Oct 5, 2009 1:23 pm
Subject: Response to Advisory Board Letter
Subject : Advisory Board Letter
Date: 5th October 2009
Advisory Board Members :
You have invited comments to your letter of 4th October. My comments follow. They are not particularly novel but I am compelled to provide them.
Although your letter was well intentioned, I think the tone and content were unfortunate. No mention whatever is made of our TOC and their very professional efforts. As you can see from the many responses on baywatchnews.com you have confused and further angered many members.
Please do not underestimate the confidence which most of us have in the TOC and in the excellent job they have done to date. We believe they will prevail in delivering us an independent club in due course.
I believe the perspective of most members is as follows, and these issues need to be addressed before the rapid decline in fees and membership can be halted :
1. You describe our "disappointment" regarding the reneging on our Notes as "lingering". What a misreading of the depth of member sentiment. BBC members paid over $100 million on the understanding that they would eventually, after minor additional payments, either own the Club or have their money refunded.
Today , despite making a very full offer for the club, given the need for remedial maintenance, we have neither our money nor our Club. The status of the Notes will now be determined by the Courts and the ownership of the Club will probably be determined after that, either within or outside a bankruptcy of Bonita Bay Properties.
2. Until then, as you suggest, a priority must be the maintenance of club services for those members who remain. The major problem here is that Dues and Fees paid by Members have been systematically diverted to other Bonita Bay Group purposes. This, apart from the Notes issue, is a major reason why Memberships are being resigned & Dues witheld.
When I arrived back on 29th September I was appalled by the changes in the Club since May. One course, Bay Island, out of five, was open with no commitment as to when the East courses would open. Dinner was available in the West Club , but on Fridays only.
The Golf Shop was almost stripped of stock, and there has still been no go ahead to restock.
Clubhouse and Golf staff have been greatly curtailed. The oldtimers who remain are doing an outstanding job of staying cheerful and reassuring members, bless them , but you know that inside they are embarassed, angry and fearful of their futures.
Course condition is OK, but creepers and weeds are starting to overrun all the boundary areas and preserves, and permanent damage will soon result to the landscaping.
In short, even with Marsh now open and talk of Creekside opening later we do not have anything like the level of services we have paid for. Small wonder that Dues are withheld.
3. Your letter addresses these service issues and presents Tim Boates letter to members of October 2 as the solution. Here again you misread and understate a serious problem.
Firstly, from watching the progression of events at BBC and other Bonita Bay Groups clubs since his appointment and from reading members blogs it is clear that Mr. Boates has built up what might be termed at its most polite "a credibility gap" with members. He started with arrogant and threatening letters to members, none of whom were to blame for the problems. He has continued to divert members dues to purposes other than the Club and as a result curtailed services. It would also appear that his conduct of the negotiations with our own TOC and with Shadowood have been very controversial. They have also failed.
You applaud Boates letter of October 2 as "a sincere, good faith effort" to improve Club conditions. In doing so you seem to ignore all the evidence of our "lying eyes and ears" and present his proposals as our salvation.
A careful reading of his letter suggests still more threats. Unless back dues are paid and normal dues payments restored, there will be further cut backs. He refers to further delays in opening the East Club later than the now scheduled December 1, and to discontinuing lunch service at the West Club from mid-October.
Mr Boates and the Advisory Board have entirely missed the point. A part of the Dues problems has been caused by service & facility cut backs. To threaten more cut backs will simply accelerate the decline. Only when there is an immediate restoration of services and good faith actions, not words, will Dues flow again.
Given the understandable failure of trust and credibility, there is only one solution to the short term service/revenue problems. Immediately establish a ring fence around club revenues, memorialised in a legal contract , so that they are committed in their entirety to Club purposes. Provide for independent supervision of club expenditures, publication of expenditure details and a monthly independent audit available to members. A similar arrangement is sought in our members suit against BBP, but I fear we cannot wait for court action.
If this is done immediately, and services, including the East Club, restored, confidence and Dues will flow again, and we can enjoy our club while awaiting the outcome of the litigation in progress. If this is not done, the destruction of values in the Club and in Bonita Bay will continue.
If you doubt the depth of member feelings on the above, browse the many responses to your letter of 4th October and Boates letter of 2nd October on http://baywatchnews.com/OpenForum.html. These are not hotheads but many reasonable long time members whose confidence and trust has been destroyed and who will only be won back in the short term by an independent accounting of Club revenues & expenditures and the restoration of services, and in the longer term by direct member ownership if the Club.
Sincerely,
Michael Rolland
Estancia
_____________________________________________________________________________________________________
Sent: Mon, Oct 5, 2009
Subject: Letter from Advisory Committee
It appears the Advisory Committee and the TOC are not in agreement on the issue of dues payment and membership downgrades.
We are not well-served by having 2 committees with differing views because it sends a message to BBG that we are weak. BBG has proven to be unreliable and downright dishonest. Why should we trust them again with our dues? They will continue to divert our funds to their losing operations and to Key Bank as long as we allow them to do so. It does not appear they will change their behavior and negotiate with the TOC unless we inflict some financial pain on them. We recently downgraded our membership as a statement that we will not allow them to continue their shameless behavior without consequence.
Tim Boates is a hired gun; he is being paid very well to manipulate the members, employees, suppliers and anybody else in his path to protecting David Lucas and BBG. That’s his real commitment. It appears his “commitment” to the members to dedicate “net cash flow” to BB Club is “weasel-worded” and I for one do not believe him. Again, BBG wants us to pay them, then trust them to do something for us in the future. It’s time for BBG to do something for the members to regain their trust, then ask us for our support.
The TOC has been empowered to represent the members in gaining control of our club. If the Advisory Committee and the TOC are in agreement on the dues issue, please confirm that. If not, let the TOC take the lead on this.
Rick Uhlig
Crossings
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Sent: Mon, Oct 5, 2009
Subject: Lucas/Boates/Advisory Board letters
After reading the many responses to the recent letters from Lucas, Boates and the Advisory Board, I'm reminded of the scene from the movie "Network" where outraged citizens stood at open windows and shouted "I'm mad as Hell and I'm not going to take it any more." How can Lucas/Boates and the Advisory Board not hear our roar?
Judy Quandt
Laurel Ridge
_____________________________________________________________________________________________________
Sent: 10/5/2009
Subj: Special Update
This is my response sent to the Advisory Board regarding their mailing of October 4. I think it time that we, the members, take a firm stance to force this issue to solution. We have the power, let's stand together and get it done.
You are avoiding the problem. We want a signed agreement. Unless the members, in LARGE numbers, stand up to the BBG this problem will never get solved. It is time we set a deadline, like December 31, 2009. If we don't have a signed agreement by then, we either all downgrade or resign. Somehow, I think this ultimatum will achieve the desired results. We, the members, are sick and tired of no progress or results. We want this solved--NOW.
Hunter Caffee
Riverwalk
_____________________________________________________________________________________________________
Advisory Committee Letter
This letter was a shock to me. Do these people think things will ever be returned to "normal" with BBG's involvement? I think they want the season to be okay and kick the can a little further down the road.
All we have had from Bonita Bay is a string of broken promises and declining services for several years. In my view, the Advisory Committee is no longer serving the membership. If they believe anything that comes from BBG or Boates, they are nothing but naive. Boates' job is to try to save a sinking ship. It's too late. BBG can't possibly survive and needs to get on with the business of negotiating a fair turnover of the clubs to the membership.
The Advisory Board is just that...the Turnover Committee was elected and funded to negotiate on our behalf. The Advisory Board should stay out of the way.
Dan Corbin
Estancia
_____________________________________________________________________________________________________
Sent: 10/5/2009
Subj: Letter from the Advisory Board 10/4
To the Bonita Bay Club Advisory Board:
October 5, 2009
Currently here in our wonderful community, I'm enthralled as usual by it's awesome beauty and welcoming comfort (except for the small fact that it's Monday and the club is closed for some reason and I really wanted to get over to the Fitness Center - darn). I say this to reinforce that I haven't changed my feelings about this place, withstanding our current conflict with the corporation of The Bonita Bay Group and it's Chief Restructuring Office (CRO) Tim Boates. Also, I know not one of us gets any pleasure out of any of this, including vilifying any of the players involved in this struggle. But proceeding with eyes wide open I consider the following:
It is so critical to point out that the 10/2 letter written by Tim Boates was just so very much a transparent a case of too-little-too-late now that the noose is getting that much tighter. It was a straight admission of the fact that the corporation has not been using our dues, here in Bonita Bay, paid dutifully for months and months, despite concern of hopeful members, to maintain and operate THIS facility. He now 'promises' to 'dedicate the net cash flow' of revenue at our club to certain late re-openings, restorations, and deferred capital projects. He also now uses the non-payment of dues as a threat of further deterioration and possible closing of the club. The Question we've been asking and just can't keep from fretting about is: WHAT have they been doing with ALL of our dues revenue prior to this, other than reneging on financial contracts, changing rules, scaling back, and neglecting our club? Why is that not a huge issue for you, the Advisory Board, and how do you come around now to believing that anything has changed. The survival of the Bonita Bay Group is Job One for Mr. Timothy Boates; it's why he was hired. The BBG needs the BBC membership to continue to satisfy the bank and to fund their corporate activities, whatever that implies.
Additionally, and equally as critical, it needs to be highlighted again that the corporation, via Tim Boates, has consistently chosen to Not Respond in-kind to the very legitimate individual negotiating points (including water supply) that have been put on the table by the Turnover Committee. This cannot be what a good faith negotiation looks like. Rather, I would I would say, that the BBG has been playing a nasty game of hard ball from the get-go. This is what the BBG has been doing with the membership - playing hard ball. How can you now honestly believe that somehow they've truly come around to caring about the membership and the Club, given the massive depth of their problems? I believe, as do others, that the corporation needs the BBC membership dues, paid in full, just to survive, again, whatever that implies.
Therefore, I think we are only postponing the inevitable demise of the BBG to no advantage for the membership, and we simply can't afford to operate as if their survival is our #1 problem. Like everyone must, I wish for there to be an outcome which is a win-win scenario, and I SO agree with you that we should focus on the health of the Club. But we can only focus and achieve our goal for the Club and the Community as a whole by gathering around a more supportable and viable position than just what you've put forth in your letter, which is namely: pay your dues and hope that the BBG 'does the right thing'???
The membership, by whatever advocate or agent, needs to Require that that Bonita Bay Group create and maintain a legitimate Escrow Account into which the members may trustingly pay their dues. If the BBG cannot do this then the handwriting is on the wall. And none of us want it to come to that.
Respectfully Submitted,
Robin J. Ross, Oakwood Community, Bonita Bay
_____________________________________________________________________________________________________
Sent: 10/5/2009
Subj: Message to the Bonita Bay Advisory Board
BBC Advisory Board Members
Gentlemen
What value can you place on "a sincere, good faith" "written commitment" from an individual or organization that has repeatedly shown themselves to be untrustworthy and less than honest? Lets face the facts, it is BBG's actions and broken promise's that have earned our disrespect.
By simply paying our dues we can not "prevent a downward spiral of the club." We have been in a "downward spiral" for many months and we have been paying our dues for those many months.
Tim Boates did not come to town to run a group of quality country clubs. Many of the people that knew how to run a quality country club, like we used to have at BBC, have been terminated by Mr/ Boates and BBG management. They have had their lives disrupted and damaged, and most will not return. The likelihood is that Mr. Boates (who David Lucas has said will earn a big fee) will end up as the sole winner in this awful mess.
Without specifics, the pledge on "net cash flow" is a totally meaningless commitment. BBG can manipulate this number anyway they see fit. This doesn't guarantee a dime more toward the operation of BBC than has been spent in the past several months. "New cash flow" will be totally dependant on their cash needs elsewhere. We are only part of their problem, but also their biggest cash cow.
While Tim Boates and David Lucas have had very little success in trying to drive a wedge between the membership and the TOC, your email makes it appear that he has accomplished his objective with your Board. This can't help our mutual cause.
Bill Zinser
_____________________________________________________________________________________________________
Sent: 10/5/2009
Subj: Re: Special Update - BB Advisory Boardd
To: John Pinti and all members of the BB Club advisory board.
From; Jim Horein
I will pay my dues and I will expect the BB Club to remain at the standard of performance I was able to experience through the past 5 years.
I see three objectives that the BB Advisory Board should set out to accomplish:
1. assure quality of club conditions and service performance is up to a top notch club (as we have been able to experience over the past 5 years)
2. assure there is no increase in dues amounts for the next year 2010 (over 2009)...it would be even more logical for the dues in 2010 to be reduced from 2009. (We know the club can be managed at less than current dues income).
3. Set up separate accounts so all dues are paid into the control of the Club manager, and all expenditures are fully committed to operating and improving the BB Club.
I recognize this calls for a very proactive BB Club Advisory Board....but you are all capable of that level of accomplishment.
Respectfully
Jim Horein
_____________________________________________________________________________________________________
Subject: Response to Advisory Board Letter
Date: 10/5/2009
Dear Advisory Board Members:
In regards to your letter to members of October 4, it would be very helpful to know the Advisory Board's views on several questions that at least to me seem pertinent.
O) Was your letter reviewed with the TOC before it was issued?
O) If so, did the TOC agree with the content of your letter and support it's issuance? It would seem that if the TOC supported the content and issuance, the letter would have been signed jointly.
O) Does the Advisory Board believe their letter strengthens the TOC's negotiating position with the BBG, weaken it or have no effect?
O) If the Advisory Board letter is not fully supported by the TOC, does this cause two representative member bodies to be operating at cross purposes, confusing the membership and placing members in at best an uncertain position?
O) Does the Advisory Board believe that the "sincere good faith effort" by the BBG is attributable to Advisory Board negotiations, the significant reduction in dues receipts or both. If the reduction in dues has to any degree caused the BBG to be more accommodating, is TOC negotiating leverage weakened by the Advisory Board recommendation that members continue to pay dues and not downgrade?
O Did Advisory Board negotiations contain any quid pro quo such as the BBG agreeing to dedicate dues money to BBC rehabilitation in exchange for the Advisory Board issuing a letter to members recommending that dues payments be continued and members not downgrade?
O) The letter seems to give no recognition to the fact that member dues have been diverted by the BBG to purposes outside the BBC for several years causing a significant deterioration in services and quality of club assets. Does the Committee believe that continuation of dues for some short-term period will enable the BBG to restore the BBC to a "level expected of our membership and reflective of our annual dues"?
O) Does the Advisory Board believe that negotiations should continue for whatever time it takes to negotiate a turnover transaction or should there be a date certain established?
O) Does the Advisory Board believe past history with the BBG can be put aside by members, thereby enabling our club to regain the member collegiality, quality of services and "lifestyle we have come to expect" under Bonita Bay Group ownership and operations?
I would be grateful if the Advisory Board would address these questions in a further communication to the membership.
Sincerely yours,
Bob Biggs
_____________________________________________________________________________________________________
Sent: 10/5/2009
Subj: Boates-the Advisory Board-Key Bank
At Mediterra the BBG appointed Advisory Board has managed to negotiate a
potential transaction which is worse than the term sheet offered by BBG.
It appears that the Bonita Bay Club Advisory Board wants to go down
that same path.
Everyone who lives in a BBG club community is stuck in the position of
having to choose between maximizing the potential for tee times when
you want them this season and long term values of your homes and the
best long term lifestyle choice for yourselves.
BBG has proven itself incapable of commitments, incapable of truth
telling, and incapable of understanding that we want them to be out of
our lives.
There are more than 150 golf course in the Naples/Bonita/Estero area.
To focus on being able to get a tee time at "your own course" is to risk
a permanent degradation of the value of your home and a moral compromise
with liars and cheats that will affect how you live your life.
David Lucas has access to more than enough money to make this whole
problem go away. He refuses to make use of the monies he and his family
have made from selling land at the many BBG communities. This is not a
matter of cannot this is a matter of will not.
Lucas, Boates and Key Bank are trying to play us all as fools. They
meet with and listen to their own self appointed Advisory Boards and
somehow believe that these people are representative of the community as
a whole.
It is time for each community to divorce itself from those who continue
to drink BBG Kool Aid.
Michael Lissack
_____________________________________________________________________________________________________
Sent: 10/5/2009
Subj: Advisory commitee letter
I sincerely hope this release was at minimum co-ordinated with the
TOC. If it was not, then that would be an appalling lapse by the
Advisory committee, and extremely undermining of the TOC negotiating
posture.
If it was co-ordinated with the TOC (not necessary to be "approved"),
then the communication should have said so.
If it was not co-ordinated, then all you have done is further amplify
the divide in the community to short term tee time hunters, those
putting priority on the long term. The tone of the opening paragraph
unfortunately shows a clear lack solidarity with, and lack of
confidence in the TOC.
I do not share that view, and the last thing a negotiation needs is to
have the team with a visible split in views.
The last Boates letter was equivocal at best, and deceptive at worst
as it makes commitments in one paragraph, then conditions and takes
them away in another.
The TOC is on record that will recommend dues payment IF there is a
clear commitment that the dues will be applied to club purposes. I
will await their view.
Maybe you have more confidence in the postures of M.Boates, I do not,
and until I see a clear and unambiguous commitment about the use of my
dues, I will not be the fool who pays them.
I am all for separating the notion of club operation from club
turnover, but BBG has shown some movement, but not shown clarity in
that direction, therefore, your recommendation is premature and poorly
founded.
Anthony Craig Rookery Lake
_____________________________________________________________________________________________________
Sent: 10/5/2009
Subj: The Boates Letter 10/2/2009
If the Boates letter is to be taken seriously by the membership we need clarification of the meaning of " net cash flow ". Is this the normal accounting definition or does it mean net of the
"skim" diverted to pay the bank loan down or other BBG uses? Also, if BBG's intent is as describded , it should take no more than an hour for an attorney to craft a letter agreement which clearly
states these terms . It could then be presented to the membership for consideration . Then we would have a framework for our operation as we continue to negotiate for the acquisition of the club .
If BBG is not willing to memorialize these " commitments " to an enforceable legal document we have no basis for further consideration of the offer.
Ray Bosso
_____________________________________________________________________________________________________
Sent: 10/4/2009
Subj: Special Update
This is my response sent to the Advisory Board regarding their mailing of October 4. I think it time that we, the members, take a firm stance to force this issue to solution. We have the power, let's stand together and get it done.
Hunter Caffee
_____________________________________________________________________________________________________
UPDATED: October 4, 2009
_____________________________________________________________________________________________________
Editor's Note: The following emails were received by Bay Watch News in response to the Advisory Board Special Update of October 4 which can be read below.
Sent: 10/4/2009
Subj: Response to Advisory Board Special Update
Note sent to Advisory Board
10/4/09
I would like to agree with the position the Advisory Board is taking. While I support the TOC in the good work they are doing to bring as much pressure as they can on BBG through the use of the legal system, I believe it might possible to work through this in the manner the Advisory Board has proposed.
However, there are a couple of big "ifs" in my mind. Clearly BBG has not lived up to their obligations or been entirely truthful in the past. "If#1", If a way can be found to put some real teeth into the approach put forward in the recent Boates' letter, primarily to ensure that an appropriate amount of our dues stay in BB, with shared oversight of the monies by us. "If#2", If service levels can be returned to levels we desire and expect.
If these two "ifs" could be met, then perhaps we can create an environment where the TOC can continue to push hard legally for a final resolution while some level of normalcy can return to our lives.
Jack Rosenstock
_____________________________________________________________________________________________________
Sent: 10/4/2009
Subj: e mail from advisory board dated october 4
I did recieve their e mail today.
indeed it is very sad that advisory board still thinks bbg is capable to negotiate sincerly and in good faith.
we all have paid our dues and look at the condition of the club today,without furthur discussion i think would be best if advisory board keep thir opinion to themselve.
Regards
Parviz Samii
Sent: 10/4/2009
Subj: A Humble Apology to Mr. Boates
Dear Mr. Boates,
I humbly apologize for paying my dues on time. If I only would have known that you had no intention of opening our east courses in October, as promised last spring, I would have withheld payment and changed my membership. Your attempt to blame this action on our members for not paying their dues is transparent and sickening. Your proposed, "contingent" capital improvement project to improve the air conditioning and bag storage is long overdue. Most of the members have already heard about the rats/mice eating holes in their golf bags over the summer and the smell of mold in the main clubhouse. You have stolen our money and betrayed our trust.
If there is anything I can do to help facilitate your bankruptcy, please let me know.
Sincerely,
Marge Johnson
_____________________________________________________________________________________________________
Subj: Open forum
Sent: October 4, 2009
Just a note for the folks who are writing in and asking for all parties to "come together" and sit in a circle and sing kumbaya. They're hoping, as we all want to believe, in human and spiritual unity, closeness and compassion for all parties in this BBG meltdown. But what they'll find in its place is blind or false moralizing, hypocrisy, or naively optimistic views of the present situation.
The hand writing is on the wall... read it!
The BBG has invested tens if not hundreds of millions of dollars in a set of dreams that have become a nightmare for them, their investors, employees, service providers, banks and the lot. They're asking everyone concerned to help shield their pain of such poor investing. It doesn't matter if the request is warranted, deserving or not. The money taken as deposits "will never be returned". Just look at the formula they created recently. 3 in for 1 out. Do the math yourself... it's an improbable and unrealistic equation. Every 100 members asking for their deposit return will require 300 new members to join! Looking at this in the extreme, if all 1500 golf members resigned tomorrow and 4500 new members showed up to replace them... where would they all play golf? Can we put 4500 member, family members, guest, reciprocals, invitational tournaments, fund raisers and employee who get to use the courses... on five courses in which four are closed at any given time? Is this preposterous or what?
Someone is going to have to go through a lot of pain... and we the residents of Bonita Bay are already suffering the consequences with lost services, a diminished and tarnished reputation and lost value of our property. How could this all happen so quickly to the place we all called paradise?
Denial is not a river in Egypt!
Denial: In August of 1972, Richard Nixon told reporters, "no one in the White House staff, no one in this administration, presently employed, was involved in this very bizarre incident." The arrest of the Watergate burglars marked the beginning of a long chain of events in which Nixon and his top aides became deeply involved in an extensive cover-up of the break-in and other White House sanctioned illegal activities. Nixon resigned 2 years later.
Denial: January 21, 1998, Bill Clinton -"I have never had sexual relations with Monica Lewinsky. I've never had an affair with her." A year later he came clean after being impeached.
Denial: Gary Hart - 1987 - Hart chose to run for President and present himself as a happily married man. During the early campaign, he chose to spend some free time in Bimini and Washington with a woman who was not his wife. He did so despite having assured his top campaign staff that, though it was an open secret he's conducted himself this way in the past, he understood that the fishbowl environs of a frontrunner's Presidential campaign was no place to engage in such behavior. When The Miami Herald broke the story of his relationship with Donna Rice, he criticized the paper's reporting techniques and press ethics generally, said he'd done nothing ''immoral,'' and said he'd always held himself ''to a high standard of public and private conduct.'' Shortly after that he withdrew his bid for the presidency.
Denial: 2008 - John Edwards admitted that he repeatedly lied about an extramarital affair with a 42-year old campaign employee, but strenuously denied being involved in paying the woman hush money or fathering her newborn child. Edwards is a former Democratic U.S. senator from North Carolina.
Denial: Nov. 2008 - Meeting at the Bonita Bay Country Club -Kitty Green, President of BBG - "Everything is just fine. Unlike so many other properties and clubs you've heard about, we here at Bonita Bay are on fine financial footing. We've just secured new financing from our banks and your fears are unfounded". Shorty after that, Green resigned her position with BBG!
The narcotic that keeps the BBG group from admitting the truth and enables them to languish in "Denial" is YOUR MONEY! Keep sending in those checks and the party goes on.
My money is going to the TOC and their legal kitty. We've got to fight fire with fire. The other side has got to be convinced that the party is over and it's best to come to the table with an honest and realistic set of expectations... and bring your bankers with you! When BBG goes to Key and says the kitty has dried up... something will be done. We're getting close but we must stay the course. Just remember BBG is reading each and every one of these communications and plotting their strategy accordingly. For every TOC action there has been a BBG reaction. As long as the money flows... it's business as usual. Isn't this what the British did until the tea spilled into Boston Harbor?
Always looking for your response on both sides of the isle.
Warm regards and praying for a return to paradise...
Harvey Siegel
Egrets Landing
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Sent: 10/4/2009
Subj: Bonita Bay
It might be a good idea for those letter writers , which are doing a terrific job in spelling out our problems with Boates and Lucas ,copy Mr. Lutgert in the process. Seems to me he might have something in the neighborhood of $100 million of unsold real estate on his hands with a dearth of interest . If I were in his shoes I would not be a happy camper ! Dick Johnson
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Subject: Re: Special Update
With all due respect to The Advisory Board now might be timely to remind everyone why there even is a TOC.
There is a TOC because there no was confidence that the members of The Advisory Board were up to the expertise that members of the TOC were required to have.
It was also a result of 6 months hard work on the part of The Advisory Board only to later realize they were just being played for time by BBG.
By any rational accounting the Advisory Board had their chance and were not capable of accomplishing anything. That may not have all been the fault of the Advisory Board but it was clear that they were over their head.
Cutting to the quick, the TOC is in place because they are capable, qualified, and enjoy a VERY HiGH percentage of support from the residents and members.
Pick any report from the TOC and it is more informative and professional than anything we ever saw from the Advisory Board.
Now The Advisory Board is out in the open in direct conflict with the TOC and advocating we support the club. That somehow all the wrongs can be righted and initiation deposit and many other issues will disappear. It's OK to keep subsidizing BBG and the world will be OK again. After all, The Advisory Board obviously believes that BBG can be trusted.
I believe there is an upside from this mutiny on the part of the Advisory Board in that it identifies a problem that can now be fixed. Recently, a AB member was in direct conflict with the TOC and the great majority of the members. The result was a rightful resignation from the Advisory Board. The rest of the group who signed the letter below and agree with this position should "Man Up" and do the same. If you agree I suggest you let them know.
There is always room for different opinions. But when you wear the name tag Advisory Board Member and run counter to the overwhelming constituency that is in support of the TOC you should also resign and do your protest as an individual member.
Your efforts to pit one recognized, qualified, supported, elected, mandated, excellent performing, tough, realistic, clear goal oriented, communicative, professional and obviously with our interests only in mind TOC against a Advisory Board which no one feels is qualified and has already failed is nothing but counter-productive.
Let the TOC get us back a club worth having and then you can see about advising Bob Staehle or other the club management on operations. That is all you were ever elected for.
Meanwhile, despite your efforts to support the enemy I will continue to follow the direction and recommendations of the TOC as I believe a majority of others will as well.
Art Herman
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Bonita Bay Club Advisory Board
October 4, 2009
Dear Bonita Bay Club Member:
It is now October, 2009, and it seems we have made very little progress in our negotiations with the developer of Bonita Bay Club. The disappointment of having our developer not repay our notes within 30 days of resignation stills lingers and it is difficult to objectively evaluate our status without clouds of distrust and disappointment interfering. We are in a very difficult situation and one which we do not deserve.
That being said, it is time to put aside our emotions and to objectively look at what is going on and what we can do about it. Today, we have a club that is open and operating and representatives that are negotiating the purchase of the club assets. As members we need to support the club, our representatives and our personal interests. If we fail to provide that support, we run a very real risk of personally losing much more than we have already, through an indefinite closure of the club, possible bankruptcy of the club and loss of our property values.
During this past week we have worked diligently with BBG to obtain a written commitment outlining their club operating intentions. In a letter dated October 2, addressed to club members and authored by Mr. Tim Boates, we think BBG made a sincere, good faith effort to provide us that written commitment. Mr. Boates’ letter outlines the actions to be taken by BBG to bring the club operations to a level expected by the membership and reflective of the annual dues paid by the membership.
We need to focus on the health of the total community, the lifestyle we have come to expect and the investment we have made in our homes.
We can also prevent a downward spiral of the club by continuing our financial support through the payment of dues and by not downgrading our memberships.
By continuing to support our club we give the negotiating process the time to progress to a satisfactory conclusion.
For these reasons, the Advisory Board urges you to continue supporting your club through the payment of dues.
We encourage comments to the Advisory Board. Simply click onto the following email address: johnpinti@me.com
Sincerely,
ADVISORY BOARD
Jack Eikenberg, Chairman
Chuck Campbell
Joe Davi
Paul McGrath
John Pinti
Rod Price
John Risk
Pete Saputo
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UPDATED: October 3, 2009
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Subject: Boates' letter
Date: 10/3/2009
All:
I wonder if services at BBC could be restored to normal levels if Lucas/Boates would return to BBC members the 5m "skimmed" from dues over the last 9 months??
I wonder why Lucas/Boates team think members should trust them and disdain their fellow members who have enough of the Lucas/Boates team??
I wonder why the Lucas/Boates team won't agree to the TOC request that all monies from BBC dues be utilized at BBC??
I wonder all these things and more, but I don't wonder about the BB membership, the resolve of the various TOC committee's, or the BBC staff. I know they are good people, trying to do the right thing, and for all the right reasons. Sadly, our core problem is that I can't say that about Mr. Lucas. And I don't wonder about that!
William P. Farrall
Woodlake
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Subject: Letter from Tim Boates
Date: 10/3/2009
TO: TIMOTHY D BOATES
CC: David Lucus
Dear Mr. Boates;
Do you realize the consequences of you letter to the members of the Bonita Bay Club?
First let me introduce myself. I have been a resident of Bonita Bay, and a Club member since 1989. Over the two decades I have loved every minute of my time in the community and the club. I am also one of those members who has paid there dues each month in hopes of the BBG making a reasonable offer to the TOC. There are many members,like myself, who pay their dues and play a good deal of their golf on the east courses. Your latest tactic is the icing on the cake for me.
Do you realize that many of the members will search out a new golf club come January? Do you realize there are many clubs interested in our members for next season? Whether you own the club or the members own the club, members are the life blood of the organization. The way you have conducted your self through the negotiations has soured the membership to a point where getting away from the BBG is a priority.
Do you realize that the TOC has the full support of the membership? Do you realize we can resign, and rejoin the club when we have and owner who wants us? So my friend, keep on cutting services, keep on punishing the members, until you drive the club into the ground.
I realize you are simply a hired gun. You have no sympathy for the members, the community, or the Bonita Bay Club. You are there to bring in the revenue. In the process you will devalue the club, the community, BBG and Key Bank's collateral.
Sincerely;
Ed Corvelli
Riverwalk
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Sent: 10/3/2009
Everyone in every BBG community is effected by what is going on in these communities, not just the golf members who want to fire back at whatever letter Lucas, Boates, BBG or Key Bank will ever publish.
With all seen so far and with a constantly moving target why spend time writing to someone that could care less or even begin to consider your position or that of any organized group? I will explain in a moment why not to.
I was shown a magic trick as a young lad. Three walnuts with a pea under one. The secret was to keep moving the walnuts around to focus the attention on the chaos of the movement while sliding the pea off the table into the hand or not even placing the pea under any walnut. When one picked the walnut they thought contained the pea, the pea was not there. The whole time the pea was in the hand of the magician to place where he needed it to be placed where and when he wanted simply, by again focusing the attention by again the movement of the walnuts and not the pea.
Anyone see any common theme here? Again from my previous post, what am I missing? BBG and or Key Bank has never said a bankruptcy was planned or even considered. Your letters back to those enties only teaches BBG's entities, Key Bank and the ones they sold risk off to and thier legal teams as to what you may be considering to better prepare for their next move.
Quit feeding them this information. Each community needs to drop the collective ego's thinking they cut or can cut a better deal than the other clubs and unite and file suit in federal court in my opinion. Until then all communities can continue guessing what nut is hiding the pea. (Pun intended)
Can someone from any of the boards please educate us all or tell me what I am not considering?
Daniel Grant
Shadowood Resident
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Subject: My Thoughts
Date: 10/3/2009
On page 3 of the Wall Street Journal recently, an article entitled "Banks Bite Bullet on Loans" describes how banks and loan investors are starting to bite the bullet on mortgages. It states that by extending the terms of mortgages or reducing the principal on the loans, the banks are able to salvage some loans which they are not normally able to do.
This issue raised a thought in my mind that if this could work for banks and homeowners, why couldn't the same work for BBG, Key Bank and the members of Bonita Bay. We are truly interested in the future welfare of our club since it affects all of us. Key Bank recently dismissed themselves from fault since they assumed the mortgages "late in the game". They could, however, be a very big loser if values further deteriorate and would have to consider our situation as a "short sale". BBG should be interested in the welfare of the club since a reduction in values could hurt them as well.....especially with land to sell and upholding the values of the high rises of Lutgert. The members with their own property values and prestige of Bonita Bay Club at risk would certainly endorse a plan that is doable. Any thoughts?
Len Bunge
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Subject: Tim Boates Oct. 2 Letter to Members
Date: 10/3/2009
The numbers that Tim Boates used in his Oct. 2 letter raise several questions and concerns. He stated that the "total amount due for the month" of October was "$800,000." $800,000 would only represent dues from 964 golf members at $830 per month. That's assuming that all of that $800,000 were to come from golf members dues and that all social and sports members had paid their dues in advance. I don't know if that is the case, but if it is, then the dues from those two category's are almost certainly long gone if they were collected before the first of the year. BBG has told us they are out of cash and we know they don't believe in reserves.
If the $800,000 monthly total does include some dues from social and sport members, then there are even less than 964 golf members expected to pay dues for the month of October.
People withholding their dues would not explain the $800,000 figure since Boates calls that the "total amount due." He has no advance knowledge of who might withhold their dues.
Earlier in the year I believe we were told there were approximately 1,300 golf members. If 1,300 members was an accurate count, where did those other 336 members go. Did 336 golf members pay their 2009 dues in advance? That is hard to believe with the concern about possible BBG bankruptcy being publicly discussed. If a significant number of members did pay their 2009 dues in advance, wouldn't you assume that any money received by BBG in Dec. or Jan. has already been used for other purposes? Remember, they say they have no cash.
If the unaccounted for 336 golf members have resigned or downgraded, then could BBC possibly be down to 200 members or less per course? That's a membership level that would be hard pressed to handle a new member owned club and accepting any BBG's liabilities would be an impossibility.
I have no idea what the current number of BBC golf memberships might be. There have obviously been a number of resignations and downgrades because of dissatisfaction with BBG ownership. Some will return to a member owned club, but many more will resign or downgrade under a continuation of BBG ownership and management.
I recently downgraded from golf to social membership. This results in a very significant reduction in dues going to BBG, who we know has been using our dues income on none BBC expenditures. I do plan to upgrade back to a golf membership, but only when turnover to a member owned club is achieved.
Bill Zinser
Harbor Landing
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Boates recent letter suggests that the withholding of dues is having a
powerful effect. If the TOC wants to bring the issue to a head, it
should solicit conditional resignations from at least 200 members
(resignation being effective only of there are at least 200 others and
only if the TOC countersigns the resignation letter). Boates and Lucas
will not be able to cope with mass resignations. Just a thought.
Michael Lissack
Mediterra Resident
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Sent: 10/2/2009 5:06:17 P.M. Eastern Daylight Time
Subj: Re: Letter from Tim Boates
Mr. Boates:
Why should we the members believe what you are telling us in this letter is true? Your track record and that of Mr. Lucas would lead us to believe that the overtures made in your letter are not to be relied upon. Your history of not keeping your promises and failing to keep your word is indefensible.
I still believe in the business philosophy that has served me well for nearly forty years: "Fool me once, shame on you. Fool me twice, shame on me."
The time has come for BBG to first open all five courses, including the East Courses in late October, as you claim to have planned to do. First, get the courses and the clubhouses in acceptable condition. Then come back to us and beg us to pay dues. Also, you might want to fix and repair the broken equipment at the fitness center, you might even consider staffing it to at least minimally tolerable levels and opening it on Monday. You might also think about stocking the golf pro shop. While you are at it, consider charging us about a $25 guest fee for golf - it is embarrassing enough to bring a friend into the club, at least you could make some amends by a charging a modest guest fee until your credibility can be somewhat restored.You are currently running a D/ D+ operation and are asking for B+/A- dues prices.
Your arrogance and that of the BBG organization these past months is despicable. What is sad for you and for us is that you could have come to us in truth and humility last fall and said "We know we owe you fine people over $100 Million. We are not debating that. We just cannot pay you right now and need to make a win-win deal to get us all through this bad time. We will keep our promises even if it takes us many many years."
We would have played ball. We would have helped you out. We would have worked with you.
Instead, you choose to arrogantly claim you do not owe us the money you promised in writing to pay to us. You take us to be a bunch of fools.
I was a residential real estate developer for thirty years in Michigan and have been a real estate sales agent here in Florida for the past nine years. I have now sold countless homes and golf memberships in various Bonita Bay developments. My clients were consistently promised a thirty day refund by each and everyone of your membership directors and by your entire real estate sales staff. I have never seen a developer lie so continuously to his customers. I cannot imagine anyone surviving in this business where your word means EVERYTHING.
The time has come for BBG to put up first, then you can talk to us about paying dues.
Gary L. Jaarda
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Date: October 2, 2009
Subject: Reply to Tim Boates
Response to Mr Boates -
Mr Boates, you fail to take into consideration several key factors.
First of all, NOBODY TRUSTS YOU OR BBG! You have broken every meaningful promise ever made. Withholding initiation deposits is only one issue you have reneged on.
You and BBG have lost all credibility with a majority of the members and residents. You have also lost credibility in the marketplace as it is clear the tarnished reputation of BBG is the single biggest obstacle to Real Estate sales.
The solution is not in working with you and BBG. The solution is ridding ourselves of you by not continuing to feed your need for dollars to subsidize your indebtedness
Your, once again, threatening letter and suggestion that we who have withheld dues should pay back dues for services and amenities that have disappeared is ridiculous.
Your strong arm tactics are not working. More and more people have come to realize that sacrifices may need to be made to rid ourselves of you folks but it will be worth it.
We do not want to fight. We came here to relax, enjoy retirement and live the promise of the BB Club. However, you have taken that option away when you lost our faith and trust. Now people are more and more realizing that things will never be the same. When they do they shut you off. The clock cannot be rolled back and paying dues again will not bring the club back we all want. So, let's get on with it. With you gone.
You want us to go back "to pay dues to enable the club to continue to operate at the level to which you have become accustomed to". You must be kidding! That's the last thing we want!
BBG needs us more than we need BBG. . You note that your dues receipts are down about 32% for October. Every indication is that number will go further down next month. We will wait you out and when you are rightfully gone, which shouldn't be too long, we will rebuild. Since every business source from the Wall Street Journal down raises the question of your solvency, many of us hope it will be soon.
Meantime, there are, fortunately, many places to play golf in the area for a while and your threats are overplayed.
The TOC is doing a fine job. It is clear the majority will take direction from them rather than you, Mr Boates.
Art Herman
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Letter to:
Timothy D. Boates,
Chief Restructuring Officer, BBG
Mr. Boates:
May I please direct your attention to a 1999 Federal lawsuit, i.e., BENCHMARK ELECTRONICS, INC., vs. J.M. HUBER CORPORATION, in which you and two other associates at HUBER allegedly were involved in oral misrepresentations in June, July, and August 1999. Please tell us how that lawsuit ended and what your involvement was if any? In addition, can you assist me in contacting Mr. Gregor J. Smith and Mr. Jeffrey Nesbitt for their side of the story?
You're asking us to trust you... correct? Surely you understand the concerns of the residents when they read in a published Federal case from the United States Court of Appeals, Fifth Circuit, ten years old, that your name was associated with the words "fraudulent or misleading". Please clear the air for those of us who are slightly skeptical.
Click on link:
http://openjurist.org/343/f3d/719/benchmark-electronics-inc-v-jm-huber-corporation
(Paragraphs 10 & 11)
Harvey Siegel
Egrets Landing
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Homeowners Transition Committee
Report #2: Progress through September 20
Report #1 described the reasons that the Homeowners Transition Committee was formed, its mission, a description of how homeowners can help bring about a transition of the Bonita Bay Community Association from BBG (the developer) control to homeowner control and a summary of conversations held via conference calls with Neighborhood Representatives. In early August homeowners received an email letter, or hard copy letter to those without email access, explaining the HTC’s mission, an in-depth description of the issues being considered, a survey questionnaire to be completed and a request for funds to defray legal, insurance, and investigative expenses. All of the Committee’s previous reports and communications can be found at www.bbtoc.wordpress.com under the Homeowners Transition Committee tab.
Survey results to date
The all volunteer homeowner members who are serving on the HTC are grateful to all of you who have responded to the survey, given your mandate to represent homeowners’ interests and have so generously contributed to help defray costs. Nearly1100 surveys have been returned to date, though additional responses are still needed. If you did not receive an email or letter with the survey, or if you have not yet responded to the survey, please do so at this time. PLEASE NOTE: ONLY ONE VOTE PER HOUSEHOLD IS NEEDED.