Bits and Pieces
February 24, 2011 - The Bay Singers Concert
An evening of song, laughter, and jamming was enjoyed by a full house. The Bay Singers first concert was held Thursday February 24 at the Center for the Arts facility at the Promenade at Bonita Bay. In the dark cabaret setting, wine and hors d’oeuvres were savored, while the Bay Singers, a 40-voice chorus comprised of men and women were accompanied by talented musicians, pianist Anne Roberts, Bob Wydock on the Sax and Clarinet, Jae Wittlich on base and Rod Hermes on Drums. The group, conducted by Bruce Galbraith performed a broad array of musical favorites from Broadway show tunes to Spirituals and Rock and Roll. Pati Patrick moved the audience with her rendition of Rock, Rock-A My Soul. Our three male soloists supported by the men’s choir thrilled the crowd with There is Nothing Like a Dame. Jam sessions extended the evening with a special surprise singing performance from Bruce.
The Bay Singers next performance can be enjoyed at Shell Point Thursday, March 3rd at 7 PM. The performance is free of charge but tickets must be obtained by calling 239/454-2067
The Shell Point Auditorium is located at 15101 Shell Point Boulevard, Fort Myers, Florida 33908.
Directions:
From I-75/Airport: Take exit 131 (Daniels Parkway) west for about 5.5 miles, then turn left on Summerlin Road. Follow Summerlin for about 8.5 miles, and then look for the Country Inn & Suites hotel on the right. Turn right at Shell Point Blvd.
From Estero/Naples: Take US-41 north and turn left at Gladiolus (Lowe's is on the left hand corner). Follow that to Summerlin, and take a left toward Sanibel. Follow Summerlin all the way to the Country Inn & Suites, which turns you right onto Shell Point Blvd.
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One Year Later
As we approach the first anniversary of the turnover of the Bonita Bay Club to the members, Bay Watch News was curious about the man who sat at the helm of the Bonita Bay Group during the two years of the most tumultuous time in Bonita Bay history - we wanted to know how and why decisions were made. A list of questions was submitted to Brian Lucas, President/CEO and Vice Chariman of the BBG – the following are his answers.
Thank you for the opportunity to address the readers of Bay Watch News.
Bonita Bay is the first community that Bonita Bay Group developed and will always remain important to the Bonita Bay Group and my family. On behalf of the Bonita Bay Group and my entire family, I want to state at the outset that it was never our intent to alienate the residents of Bonita Bay, many of whom we consider to be friends. When faced with an extremely difficult set of circumstances, we followed a course that we believed would ultimately lead to the best possible outcome for all parties.
These last few years have been hard for many Bonita Bay residents and for Bonita Bay Group itself. We are not immune to the economic challenges that continue to face our country and, in particular, Southwest Florida.
During the late 1990s through the mid 2000s, Bonita Bay Group successfully created five of the most highly regarded master-planned communities in the area; in addition to the two award-winning developments that were well underway.
Throughout this extended period of time, national homebuilders were buying land, future homeowners were actively seeking new places to live, new community country clubs were being created, and existing clubs were being expanded.
Then in 2005, Florida experienced the most active hurricane season in recorded history; sales slowed to a crawl, and new sales evaporated by 2006. The housing market went from red hot to frozen. The company’s primary sources of revenue – land sales and membership sales – simply evaporated.
Now fast-forward to the fall of 2008, Bonita Bay Group was nearing the end of its third year without cash flow. During the week of October 6, the S&P 500 fell 20 percent (we now know that half the value of the market would eventually vanish). All over the country, businesses and individuals felt the pain of the economic crisis, but few regions suffered the effects like Southwest Florida and Bonita Bay Group began to see record deposit redemption requests at our various clubs.
The weight of the redemption requests, coupled with the market crash and three years without cash flow was simply too great for Bonita Bay Group to endure without effect. In early November, the executive team gathered the forecasts and historical reports and determined that if we did not suspend the immediate refund mechanism, Bonita Bay Group would likely very soon be in breach of various covenants with its lenders and would have to declare bankruptcy, which would have had a devastating impact on your community. We simply didn’t see default and bankruptcy as the best outcome for our residents, club members or ourselves, and acted to avoid it by enacting a temporary freeze on payment of deposit refunds. That freeze together with significant additional capital infusions by Bonita Bay Group owners allowed the clubs to remain open and operating for the benefit of the vast majority of members who wanted to remain involved in the clubs. Had we not put a temporary freeze on the repayment of deposits, the clubs would have closed and the stain of bankruptcy would have tainted the various communities for years to come.
Unfortunately, the acrimony this change created set in motion events that fundamentally altered the relationship between Bonita Bay Group and our club members. We have tried to repair that relationship and, since the suspension, Bonita Bay Group has been able to successfully sell the Bonita Bay Club and many other clubs to the club members, with overwhelming support from the communities.
Now, two years later, only a small percentage of resigned member deposits remain unsatisfied, and we continue to pay refunds and work toward elimination of that obligation. I say this not to trumpet our success, but to remind everyone that the temporary suspension worked. It allowed us breathing space to gather our resources and ultimately adhere to our obligations. We did not simply file for bankruptcy and let the chips fall where they may.
We did the very best we could for as long as we could. And now that most of the dust has settled on what was a very difficult process, I unequivocally believe that we did the right thing for the overwhelming majority of our residents and members. It is within this framework that I ask you to view Bonita Bay Group’s actions.
Since graduation, where have you worked?
I have an extensive background in management consulting and technology solutions including an executive position with Accenture. I also have experience as a private consultant.
What year did you join Bonita Bay Group and in what capacity?
I joined BBG in 2004 as Vice President of Special Projects to oversee a variety of process improvement and performance management teams. I also served as Vice President of New Market Areas, directing the company’s expansion efforts.
Does your father, David Lucas, continue to play a role in the Company?
David continues to play a strategic role and offers invaluable leadership to Bonita Bay Group.
Who made the decision to bring in Tim Boates to act as an intermediary? Do you think that Boates’ style of negotiating was effective?
We hired Tim Boates after consultation with our advisors and input from our lenders. During Tim’s time with the company, he led the successful sale of the Bonita Bay Club, the Mediterra Club, the remaining single-family homesites in Mediterra, Shadow Wood Country Club, The Brooks Commons Club and TwinEagles. As a restructuring specialist, he faces friction every day. He was effective in leading us through these necessary transactions and processes.
In retrospect could (or should) BBG’s dealings with the Bonita Bay Club membership have been handled differently?
It would be easy to look back and say that things could or should have been handled in a different manner and, had there been less acrimony in the past, meeting the challenges we continue to face today might be easier . Nevertheless, given the circumstances that each of us faced at the time, I believe that Bonita Bay Group and the Bonita Bay Club members acted in what each believed was the best way to achieve the goals each sought.
At the turnover of the BBC to the members, did it surprise you that over 90% of the membership agreed to the terms of the agreement? Why do you think so many members signed on to the “New Club”?
I wasn’t surprised that so many members wanted to remain involved in one of the premier clubs in Southwest Florida. For the overwhelming majority of members, joining the “New Club” presented a great option.
What is the status of the Florida Attorney General suit against BBG?
The Attorney General’s lawsuit was first dismissed because of pleading deficiencies. As I understand is customary at the outset of a case, the Court permitted the Attorney General to correct those problems and file a new complaint. The Attorney General has recently done that, but the revised complaint still does not, in our view, meet legal requirements and we have sought to have it dismissed. We expect to present our side to the Court in the coming months and are hopeful that the Court will then dismiss the case for good.
BBG publicly stated that they were going to appeal all judicial decisions, but we have learned that you have quietly settled with some of the litigants. Can you please elaborate?
We have settled claims throughout various stages of litigation where the plaintiffs expressed and demonstrated a willingness to engage realistically in that process and achieve an amicable resolution.
Bonita Bay Group still owns and controls the Marina Club and Backwater Jacks. What are your priorities for capital improvements in these two areas?
We recognize the need for many repairs and equipment upgrades throughout the Marina Club and have begun the process of replacing and refurbishing select items. Members will notice facility improvements taking place through April 2011, including the completed boat yard repairs, A-Dock decking replacements, leasing a new 27,800-lb. forklift, refurbishment of the current forklift, refinished flooring in the restaurant and refurbishing of the air-conditioning system.
Bay Watch News has received “Letters to the Editors” indicating that the residents are boycotting Backwater Jacks. Has the traffic at the restaurant increased or decreased since reopening in October?
Since the boycott was a Bonita Bay Club Board strategy designed to encourage members to dine at the club, it isn’t impacting the support we receive from residents. We’ve seen many familiar friends and new faces at Backwater Jacks since it reopened.
What is your vision for the Marina Club and the restaurant in the coming years? Would BBG consider selling the properties separately?
Our intention is to offer the club to the members, and we will continue to work on that process with the Marina TOC over the next few months. If we are unable to reach an agreement with the members, we will consider selling the properties to a third party, but we are more likely to reconstitute a new marina club based on an annual rental program. In this event, Bonita Bay Group will refund the initiation deposit to any boating member who requests it. To date, we have not considered selling the properties separately.
Going forward – will your company build its future as a SW Florida development company or are there other endeavors you will pursue?
Like everyone else, we are carefully following the national efforts to ease the recession and other significant economic indicators, and we remain cautiously optimistic that the real estate crisis in Southwest Florida is beginning to ease. In the meantime, we are focused on Verandah, Sandoval and our other existing landholdings in the region. This has been our home for almost thirty years and we enjoy living and working here.
How has the sale of the 15 lots in Bay Woods been going?
The infrastructure was completed prior to the eagle-nesting season, which began October 1. We believe Bay Woods presents an extraordinary opportunity to own one of the last 15 single-family homesites in Bonita Bay, and we look forward to welcoming our first residents. In the meantime, we’re pleased that our eagle management plan has been successful and has become the standard for developments of this nature. The nest has been in existence for several decades, fledging more than 30 eaglets.
The turnover of the Bonita Bay Community Association was to have taken place in January 2011. As of this writing the deal has not closed. Can you shed any light on when this will happen?
The board and staff of the Community Association have established a good relationship with the turnover committee and have accomplished most objectives to date. However, there are still a few more items that need to be addressed before the turnover can be completed.
Is there anything else you would like to add?
Bonita Bay is the first community that Bonita Bay Group developed and will always remain important to Bonita Bay Group and my family. I want to state at the outset that it was never our intent to alienate the residents of Bonita Bay. When faced with an extremely difficult set of circumstances, we followed a course that we believed would ultimately lead to the best possible outcome for all parties.
These last few years have been hard for many Bonita Bay residents and for Bonita Bay Group itself. We were not immune to the economic challenges that began in 2005 and continue to face our country and, in particular, Southwest Florida. In the fall of 2008, Bonita Bay Group was nearing the end of its third year without cash flow and we began to see record deposit redemption requests at our various clubs. We simply didn’t see default and bankruptcy as the best outcome for our residents, club members or ourselves, and acted to avoid it by enacting a temporary freeze on payment of deposit refunds. Had we not taken this action, the clubs would have closed and the stain of bankruptcy would have tainted the various communities for years to come.
Now, two years later, only a small percentage of resigned member deposits remain unsatisfied, and we continue to pay refunds and work toward elimination of those obligations. I say this not to trumpet our success, but to remind everyone that the temporary suspension worked; we were able to gather our resources and ultimately adhere to our obligations. We did not simply file for bankruptcy and walk away. We did the very best we could for as long as we could. And now that most of the dust has settled on what was a very difficult process, I unequivocally believe that we did the right thing for the overwhelming majority of our residents and members.
It is within this framework that I ask you to view Bonita Bay Group’s actions. We remain proud of the legacy of our company and the communities we’ve created. I’d like to thank the numerous Bonita Bay residents and club members who have offered their support during the last two years. Your generosity of spirit is greatly appreciated.
__________________________________________________
January 17, 2011
Dear Bonita Bay Residents,
Bonita Bay Group is pleased to offer the Marina Club for sale to the marina members and residents of Bonita Bay. As outlined in a previous communication dated December 6, 2010, this offering is the first in a series of steps to solidify the direction of this valuable part of the community.
To that end, we have posted the following documents to the Bonita Bay resident intranet site under BBCA Announcements. You may also access these files by clicking on the links below: (Editors note - you will have to go to the web site to access this information - the links have been disabled)
Marina Club Offering Cover Letter (this document)
Marina Club Transfer Agreement
Equity Boating Ballot
Equity Social Ballot
CPI Reference Schedule
Marina Club Transfer Process Outline letter dated 12.6.2010
Marina Club Turnover Committee FAQ dated 12.17.2010
We ask that you review these documents and respond within the 60-day initial offering period that will close on March 17, 2011. We appreciate your attention and timely response to this matter.
Sincerely,
Brian Lucas
President/CEO and Vice Chairman
___________________________________________________
December 17, 2010
BONITA BAY MARINA CLUB
FREQUENTLY ASKED QUESTIONS
18th Communication from Bonita Bay Marina Club Turnover Committee
To: All Marina Club Members
Dear Fellow Bonita Bay Marina Club Boating and Social Members –
Please note below Questions and Answers addressing the major comments and concerns that we received in response to our previous communication to the membership.
Hopefully the information below answers your frequently asked questions along with the time frame and steps that will be taken in moving forward with the Marina Club process.
It is our intent to move forward with this process as quickly as possible and will keep you informed accordingly. If you do have any further questions at this time, please feel free to contact us and we will respond accordingly.
Q: What is the anticipated timeline for negotiations with Bonita Bay Properties, Inc. (BBPI) and the Turnover Committee (TOC) for the sale of Bonita Bay Marina Club?
A: BBPI’s intention is to offer the club to the members on market-driven terms. There are several criteria set forth in the club membership documents that guide the sale process as referenced in Option One below. Because it is unlikely that these criteria will be acceptable to the membership, the TOC and BBPI will work through possible alternatives over the next few months. In order to move forward, the TOC and BBPI have outlined the following series of events:
December 2010
Option One - The Marina Club will be offered for sale to the membership pursuant to the terms described in the membership documents. According to the documents, three criteria must be met for this offering to succeed: 1) The total purchase price per the equity conversion formula is set at approximately $11.3 million and would consist of $4.6 million of existing deposits plus $6.7 million of additional cash from the Additional Equity Conversion Amount and CPI; 2) 80% of Bonita Bay residents must become equity social members of the Marina Club during the initial offering period; and 3) 80% of the equity boating memberships must be acquired during the initial offering period.
January 2011
Option Two - In the likely event that the above offering is not acceptable, BBPI is prepared to immediately enter into negotiations with the TOC to discuss a sale on market-driven terms. Once BBPI completes their financial analysis and capital reserve studies, BBPI will better understand the point at which BBPI is a seller vs. an owner/operator. BBPI’s preliminary analysis indicates a value comparable to the $8 million release price BBPI’s lender had previously set. With the current level of deposits at $4.6 million, an additional $3.4 million of cash would be needed to complete the transaction.
February – March 2011
Should the TOC negotiate terms that are acceptable to and financially supported by the membership, the Marina Club will become a member-owned and operated facility. The new club will then be free to institute the operational programs it feels best fits its needs.
Option Three - Should the TOC not negotiate terms that are acceptable to the membership, BBPI will dissolve the existing club and reconstitute a new club in its place. Although the exact details of this potential new club are not at this time finalized, it would be based on an annual rental with the ability to upgrade to a preferred program that will incorporate various benefits and discounts. In this event, BBPI will refund the initiation deposit, less any amounts owed to the club, to any club boating member who requests it. Alternatively, BBPI will offer to credit any boating member’s account at a rate of 120% of the deposit, less any amounts due to the club. (For example, a $5,000 deposit holder can choose to receive $6,000 in credit that may be used to offset future rental fees and account charges under the new plan.)
Q: Why would the TOC and BBPI pursue Option One if both parties anticipate it to fail?
A: Option One must be exercised to satisfy the requirements in the current membership documents. It is in the best interests of both parties as potential, future operators to exhaust this possibility.
Q: When BBPI references the “preliminary analysis” above, does that mean the market price of the club will be $8 million?
A: Not necessarily. BBPI is in the process of conducting an engineering study to supplement their appraisal. The TOC has completed an engineering study and will likely update our appraisal as well. These market based tools will assist the TOC and BBPI in establishing a market basis for negotiations.
Q: How would variation in the current level of deposits ($4.6 million) impact the purchase price? Is the $8 million a “net” or “gross” figure?
A: The purchase price as referenced by BBPI under Option Two is composed of deposits and additional cash. The $8 million purchase price is a gross figure and, at today’s deposit level, the purchase price net of deposits is $3.4 million. If deposits decrease from their current level, the cash component would necessarily increase to achieve the same $8 million figure.
Q: Assume Option Two is unsuccessful, BBPI proceeds with implementation of Option Three and refunds are given to all members. Will the Community Association have the opportunity to purchase the Marina Club and Backwater Jack’s?
A: The TOC has broached this subject with BBPI and it is open to the possibility of selling the Club to the Community Association for the determined market price. We are collecting information to determine the feasibility of this option. Note that because Backwater Jack’s is currently an asset of the Marina Club it could not be sold to any other entity – Community Association or otherwise – outside of Option Three.
Q: Is it an option for the Marina Club to be owned and operated by Bonita Bay Country Club?
A: BBPI states that they have had no consideration or discussion with Bonita Bay Club regarding a transaction of this nature.
Q: If BBPI elects to sell the Marina Club and Backwater Jack’s to a third party buyer, will the membership have a first right of refusal at the selling price determined for this purchase?
A: No. Being required to offer first right of refusal to the membership would prevent BBPI from effectively negotiating the purchase of the club with a third party buyer.
Q: If Option Three is implemented and BBPI dissolves the Club, when will I receive my refund?
A: In the event that Option Three is put into action, BBPI has stated that all members will receive their deposit refund within 30 days following the dissolution of the Club.
Q: If Option Two is unsuccessful and BBPI implements Option Three, will BBPI escrow the membership deposits to guarantee that they will be refunded to the members?
A: BBPI has stated that they will consider escrowing the deposits as the negotiation process evolves, but feel it is premature to make a final decision at this time.
Q: If Option Three is implemented and I elect to receive my deposit refund in the form of the 120% credit to my account, what guarantee will BBPI make that I will receive my refund credit and that it will survive the sale of the Club to a third party?
A: If you elect to receive your deposit refund in the form of the 120% credit, you will have a contractual right to receive the benefit of that bargain and be a creditor of the Club (as you are now) and afforded the same creditor protection.
Q: What if I decide to no longer rent or lease from the new Marina Club but I still have a credit balance on my account?
A: Under the new club arrangement, BBPI has stated that they will refund the credit balance on your account. If you accept the 120% credit in lieu of a refund of your deposit and later decide to no longer rent or lease from the new Marina Club, you will be entitled to a refund of the credit balance, less the 20% “bonus” credit, which will be deducted from your account. The 20% bonus credit can only be redeemed at the Club for goods or services purchased while you are using the Marina Club.
Q: Is it likely that BBPI will sell the Club to an outside buyer?
A: BBPI has outlined the options it is currently considering. If the members don’t purchase the Club, BBPI will have the right to sell to a third party.
Q: Will the Marina Club and Backwater Jack’s restaurant maintain normal operations throughout the negotiation process?
A: Per BBPI’s business plan, the Club and Backwater Jack’s will continue current operations through April 2011. If the Marina Club is not purchased by the membership under Option Two prior to April 2011, BBPI and the marina management will determine the feasibility of maintaining or modifying operations through the summer months.
Q: Who should I contact with additional questions?
A: The Bonita Bay Marina Club TOC will distribute regular communications to keep members updated throughout this process; however, we are pleased to consider your feedback and provide answers to your questions about the negotiation process. Please do not hesitate to email comments to the Marina Club TOC address which is bbmcto@aol.com or contact the committee members directly:
Regards,
Marina Club TOC
Richard Fioretti
Gregg Bedell
Jim Chisholm
Jim Patterson
John Maliszewski
____________________________________________________
December 8, 2010
17th Communication from Bonita Bay Marina Club Turnover Committee
To: All Marina Club Members
Dear Fellow Bonita Bay Marina Club Boating and Social Members -
On Tuesday, November 30th of last week, we met with Mr. Lucas in regards to BBG re-initiating negotiations of the sale of the Marina Club to the Membership.
We have attached a letter from Mr. Lucas to the Marina Club Members referencing those discussions, their intentions and how they plan to move forward in determining a suitable alternative that will be acceptable to the membership.
It is the TOC’s objective to negotiate the best possible solution for the members and work in conjunction with BBG to resolve an acceptable arrangement that is in the best interest of the members and the community.
We would appreciate receiving your comments and feedback regarding these options as referenced in Mr. Lucas’s letter . . .
We will continue to keep you informed of our progress.
Regards,
Marina Club TOC
Richard Fioretti
Gregg Bedell
Jim Chisholm
Jim Patterson
John Maliszewski
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December 6, 2010
Dear Bonita Bay Marina Club Member,
On Tuesday, November 30, 2010, I met with the Marina Club’s member-confirmed turnover committee (TOC) to exchange thoughts on the current state of the club and discuss its future possibilities. These discussions are designed to ultimately lead to the creation of either a member-owned, member-controlled club, or the reorganization of the club in a way that is consistent with today’s economic climate. The TOC and Bonita Bay Group will work as quickly as possible to determine the future direction of the club and I will send an update on our progress within the next few weeks. Below is a brief recap of our initial discussion.
The Marina Club is a valuable part of the community and integrally linked to the social infrastructure of Bonita Bay. Unfortunately over the past several years, the overall economy, coupled with Bonita Bay Group’s financial difficulties, has diminished the Marina Club experience that members have come to expect and enjoy. Additionally, the marina marketplace has quickly and dramatically changed, leaving our current membership program out of favor. The TOC and Bonita Bay Group agree that the situation will only worsen if we continue with the status quo. Bonita Bay Group has recently met several milestones that allow us to take the necessary steps to put the club back in its rightful place within the community.
We appreciate the support and dedication of the TOC and agreed that this committee will stay in place as we proceed. The TOC will be contacting you shortly to give you the opportunity to provide feedback as we move forward with this process.
Our intention is to offer the club to the members on reasonable, market-driven terms. There are several criteria set forth in the club membership documents that guide the sale process. Because it is unlikely that these criteria will be acceptable to the membership, Bonita Bay Group is prepared to work with the TOC to find a suitable alternative. In order to move forward, Bonita Bay Group and the TOC have outlined the following series of events:
The Marina Club will be offered for sale to the membership per the contractual obligation described in the membership documents. According to the documents, three criteria must be met for this offering to succeed: 1) The total purchase price per the equity conversion formula is set at approximately $11.3 million and would consist of $4.6 million of existing deposits plus $6.7 million of additional cash from the Additional Equity Conversion Amount and CPI; 2) 80 percent of Bonita Bay residents must become equity social members of the Marina Club during the initial offering period; and 3) 80 percent of the equity boating memberships must be acquired during the initial offering period.
In the likely event that the above offering is not acceptable, Bonita Bay Group is prepared to immediately enter into negotiations with the TOC to discuss a sale on market-driven terms. Once we complete our financial analysis and capital reserve studies, we will better understand the point at which we are a seller vs. an owner/operator. As guidance, our preliminary analysis indicates a value comparable to the $8 million release price our lender had previously set. With the current level of deposits at $4.6 million, an additional $3.4 million of cash would be needed to complete the transaction.
A) Should the TOC negotiate terms that are acceptable to and financially supported by the membership, the Marina Club will become a member-owned and operated facility. The new club will then be free to institute the operational programs it feels best fits its needs.
B) Should Bonita Bay Group and the TOC not successfully complete a sale, Bonita Bay Group will dissolve the existing club and reconstitute a new club in its place. Although the exact details of this potential new club are not finalized, it would be based on an annual rental with the ability to upgrade to a preferred program that will incorporate various benefits and discounts. In this event, Bonita Bay Group will refund the initiation deposit to any club boating member who requests it. Alternatively, Bonita Bay Group will offer to credit any boating member’s account at a rate of 120 percent of the deposit, less any amounts due to the club. For example, a $5,000 deposit holder can choose to receive $6,000 in credit that may be used to offset future rental fees and account charges under the new plan.
I understand that this letter contains a great deal of information for you to consider, but we felt it was important to provide you with an overview of the entire process. We look forward to continuing discussions over the next few months. In the meantime, we ask that you provide feedback as requested to your TOC regarding these options and reflect on the value you have in your club and the lifestyle that you enjoy – and will continue to enjoy – at this fine club.
Sincerely,
Brian Lucas
President/CEO and Vice Chairman
Bonita Bay Group
_____________________________________________________
November 10, 2010
As per a news release by Caffrey & Associates on November 9, 2010 Grey Oaks Country Club announced that its Members, by a vote of 98% to 2%, approved a Turnover Agreement with the Club’s Developer, the Halstatt Partnership. The Agreement provides a transition period of several years during which Members and the Developer will share governance and certain financial responsibilities. Members did not incur a reduction in equity, were not required to pay an assessment or make purchase payments in connection with the turnover and the Club is free of debt.
“We are pleased and proud of the manner in which we were able to accomplish this successful transfer of the Club to the members,” said Judy Sproul. “The Turnover Agreement is of great benefit to all the members and to the developers. We couldn't be more pleased with the end result," she added.
“We believe this turnover arrangement is unique in the annals of club turnovers” stated Jerry Myers, Chairman of the Club’s Board of Directors. “We are fortunate to have a Developer dedicated to the long-term success of the Club and we’re proud of the continuity of staff and operations that were maintained throughout the negotiating process” he added.
_____________________________________________________
Roger Brunswick of the Homeowners Transition Committee reports the following:
"The Homeowners Transition Committee is nearing completion of the Due Diligence prior to turnover of the Bonita Bay Community Association.
The Bonita Bay Community Association Nominations Committee has concluded interviewing candidates for the five Board of Director seats. We will be meeting next week to complete the process of creating the ballot by narrowing the list of Nominees from 10 to 15 names. Ballots will be in the mail to all property owners on September 20, 2010, and must be returned by October 20, 2010. The new Board of Directors will be named at the annual meeting of the Bonita Bay Community Association to be held on November 4, 2010 at 8:30 a.m. at the Bonita Bay Club."
_____________________________________________________
_____________________________________________________
Report from the Bonita Bay Club President
Financial & Budget
As you know, the Board and management have been busy rebuilding and focusing on restoring our position as Southwest Florida’s premier private club. All indications to date suggest that we are on the right path. Club operations are exceeding expectations. Net income from operations for the month of July was ($118,000) which was approximately $38,000 better than budget. Our post-turnover cash position remains strong and has enabled us to move forward with numerous needed capital improvements. A very aggressive schedule will allow for most major capital improvements planned for this fiscal year to be completed over the next few months. Under the direction of our General Manager, Dan Miles, the re-staffing initiative aimed at reestablishing the proper organizational structure is nearly completed. We are pleased with the quality and effectiveness with which the staffing of several key positions has been transacted. Noticeable changes are already being observed by the many members in town this summer. We are excited about the season ahead.
Both organizational and capital improvement initiatives have been anticipated and provided for as part of the 2010/2011 budget. The 2010/2011 operating budget was approved by the Board at the August meeting. The approved budget for the current fiscal year reflects projected net income from operations to be $1,049,000. Monthly dues will not be increased through the balance of 2010.
Please note that budget projections for 2010/2011 assume revenue from new member entrance fees of $1,625,000, as previously communicated in the Turnover Informational Memorandum. Attracting new members will be an important part of our success going forward. It is important to recognize that as the Club’s new owners, it is now our responsibility to invite new members into our club. An active and ongoing approach will be needed. The “sale” of memberships is no longer a commercial corporate function. Although numerous programs are being developed by the new Membership Committee, our initial focus should be to attract and recruit our many non-member friends and neighbors within the Bonita Bay community.
Membership
There has no significant change in the membership totals since last reported. A current summary schedule by membership category is below:
Category
31-Jul 10
Golf
1236
Tennis
186
Fitness
189
Social
376
Totals
1987
Facilities Master Plan
Because the development of thoughtful long-range programming during these initial post-turnover months is vital, the Board convened for a very productive two-day planning retreat at Bonita Bay Club this past week. All board members were present. The purpose of the session was to begin the strategic and long-range planning process. Matters considered included:
Defining our Mission & Vision;
Addressing new membership challenges and opportunities;
Club communications and public relations;
Setting forth initial committee goals and objectives; and,
Outlining an approach towards the development of a comprehensive Facilities Master Plan.
The Board authorized the House Committee to recommend the hiring of a professional club planning firm to facilitate the development of the Facilities Master Plan. Communication and input from the membership and committees are planned to be an integral part of these activities going forward. The House Committee will take initial charge of working with the selected club design consultant to address numerous potential clubhouse improvements under consideration. Our consultant will also work with the Sports Committee to develop “concept design” options for the improvement of the Tennis House and address its functional and hospitality challenges. Recommendations will be submitted to the Board and subsequently to the membership in concept form only for confirmation before making any decisions or moving forward on any major projects.
Tipping Policy:
The Board has approved going to a non-tipping policy for all golf outside operations personnel effective beginning October 1st. Outside operations employees will be paid a higher base wage to accommodate this new policy. The golf cart fee will be nominally increased by $2.00 to $24.00 in order to help offset the higher base wages for outside operations staff. Tipping is still acceptable in the locker rooms for services provided, and the current service charge applied to club dining will remain in place.
Backwater Jack’s
In June, Bonita Bay Group informed us that they were withdrawing their offer to lease Backwater Jack’s to the Club as originally planned. Last week representatives of the Board met with Bonita Bay Group again to discuss a number of issues, including Backwater Jack’s. Bonita Bay Group again declined to revive the discussions regarding the lease of Backwater Jack’s to the Club. Bonita Bay Group has indicated its intent to reopen Backwater Jack’s, but we are not sure they will do so. It was pointed out to Bonita Bay Group during these discussions that the Club expects that its nearly 2,000 members would make every effort to support the Club rather than an operation run by Bonita Bay Group. The Club will monitor the situation to see if we can eventually obtain Backwater Jack’s. Meanwhile, the hospitality team at your Club will make Bonita Bay Club the best place to be this upcoming season.
East Course Agreement Update
At last week's meeting with Bonita Bay Group, the Club also discussed various matters relating to the arrangement whereby Bonita Bay Group has the right to use one of the east courses for its purposes. We pointed out that the Club intends to segregate the practice area and the clubhouse between members and non-members as we have the right to do under the East Course Agreement. We also informed Bonita Bay Group that the Club intends to enforce all of our rules such as dress code and the prohibition of BBG's guests bringing food and drink to the facility. We also raised various concerns regarding their advertising and use of our trademarks. We continually monitor Bonita Bay Group’s use of one of the east courses and intend to assure Bonita Bay Group’s strict compliance with the Agreement.
Please feel free to contact me or Dan Miles if you have any comments or questions. We look forward to your input.
Best regards,
Gary Ingersoll, President
On behalf of the Board of Directors
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As reported earlier, E.J. McDonnell, one of the Bonita Bay's Golf pros, won the grass roots qualifier in the Remax World Long Drive Championship Event earlier this summer. He then compteted in the regionals on August 7th. Unfortunately, in the double elimination event he did not fare as well as he would have liked even though he had a "monster" drive of 349 yards!
Congratulations to E.J and best of luck as this minor setback propels him to a future victory.
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July 30, 2010 - Update
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Homeowners Transition Committee
FINAL REMINDER
Dear Bonita Bay Homeowner:
Several weeks ago you should have received via US mail a packet of information regarding the process, procedure and timeline regarding the election of the new Community Association Board of Directors. The packet of information also contained a self nomination application form. This notification is to remind you once again that the deadline for receiving self nominations for consideration by the nominating committee is August 2, 2010. If you have already responded to the committee, but have not yet received a confirmation email in response, please use the information below to resend your nomination application via fax or email on or before the due date.
If you wish to seek nomination to the new Bonita Bay Community Association Board of Directors and have not done so, please complete the application form and return it via fax or email by August 2, 2010 to:
The Bonita Bay Community Association Nominating Committee
3774 Cracker Way
Bonita Springs, FL 34134
Fax: 239 947 2949
Email: rbrunswick@aol.com
For your information, only self nominations will be accepted. If you did not receive the information and self nomination application form via US mail, please contact the Community Association at 239 495 8111 and give them your correct mailing address.
If you would like further information or to review the earlier sent information packet, you may visit the Community Association’s web site at: www.bonitabay.com/residents , log in and go to the very top of the Home Page then go to “Association Administration” and click on BBCA Documents, then click on HTC Nominations Letter.
Thank you.
The Bonita Bay Community Association Nominating Committee
Roger Brunswick, Rich Dell, Carol Markey, and Phil Otero
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Name Tags
The employee name tags are much larger now (for those of us with failing vision). We finally realized that one of the more enthusiastic waitresses is not named ERICA as we thought but rather DEREKA.
Additionally, pictures of the members have been taken to assist the Club employees in learing the member's names. Both of these measures will make for better interaction between members and employees.
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Another One Bites the Dust
Sadly another business has decided to close its doors. The discount greeting card and gift shop in the Publix shopping center on 41 and Bonita Beach Road was dark and empty when last visited. But more importantly, gone also is the sattalite Post Office that was formerly located in the back of the store. Missed will be the convenience of quickly stopping in to purchase a book of stamps or mail Christmas presents - picking up the slack will be the Post Office on Bonita Beach road which, in season, is always over-crowded and busy.
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On a Sad Note....
Many of our residents are parishoners of St. Leo the Great Catholic Church. It was announced by Bishop Frank Dewane last Sunday, July 25 that Fr. Stan Strycharz has been placed on leave. The Bishop stressed the point that the removal was not connected to any sexual involvement with a minor but did not elaborate.
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June 23, 2010 - Update
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Bonita Bay Beach Park
I went looking for "tar balls" on the beach today. Not suprisingly, I found none - but residents of Bonita Bay who travel north for the summer are worried and have asked the question about how the catastrophy in the Gulf is affecting us. The beach could not have been better - after a two mile walk the only things I encountered were white sand, clear water and gentle breezes!
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Things Are Looking Up!
I had the privilege of playing the Marsh course recently. The condition of the course is nothing short of SPECTACULAR! The fairways are like carpets, the greens are perfect - running at 10 on the stimp meter - and the perimeter of the course has been cleaned, trimmed and mulched. What a difference a year makes!
For better or worse, it is abundantly apparent that our courses are not being used by reciprocals this year - conversely, more and more Bonita Bay members are choosing to stay "at home" rather than travel to neighboring courses. The reciprocal fees are up across the board and the general consensus among the members is to support our courses and restaurant. Tee times are always available, the driving range NEVER looked better and the staff is more than eager to please the members. Kudos to the loyal employees of Bonita Bay Club for making the experience so enjoyable. Click here to see photos of the Marsh Golf Course.
All aspects of Club life have been improved since the member take over and the arrival of Dan Miles as BBC's general manager. The new plantings around the Club house evoke memories of grander times. The furniture in the front hall (outside the Shakarian Room) has been rearranged and the missing portraits have been replaced with new art work. POETS on Friday night hosted 80 plus diners with a delightful menu served on new-age china - square plates for the steamed middle neck clams in a light tomato based sauce, elongated plates for the risotto with lobster medallions (the lobster was truly plentiful) and round plates for the roasted lamb chops with mozzarella polenta. The Osso Bucco which was so good that I never noticed the shape of the plate..the presentations looked beautiful and elegant. All eight who dined at our table had nothing but praise for the inspired menu and top notch food that was served!
Sunday brunch is now served in the Fireside Room accompanied by live piano music by Frank Hays.
The goal is to regain the image as the premier club in SWF - we are on our way!
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Bonita Bay Club Committee Chairs
June 29, 2010
Dear Member:
The Bonita Bay Club Standing Committees for 2010/2011 are currently being assembled. The new Committees will be chaired as outlined below and approved by the Board:
Membership Committee Michael McKoane
Finance Committee Charles Campbell
Golf Committee Dennis Wilkie
Greens & Grounds Committee Peter Saputo
House Committee John Klocko
Sports Committee Willis Blackwood
Please be reminded that committees at Bonita Bay Club are advisory only. All committees will report to the General Manager. Because of the need for our new committees to focus on essential priorities and to function effectively, committees will be smaller in size initially. All committees will be fully reconstituted by the new Committee Chairs with the approval of the Board. Most committees will be comprised of six to eight members. Some committees may be larger but will not exceed twelve members.
If you have an interest in serving on a committee, please email your request directly to committeerequests@bonitabayclub.net.
When submitting your request, please include the following information:
Full name and Bonita Bay Member number
The name of the Committee upon which you wish to serve
Number of years as a Member of Bonita Bay Club
Any previous committee service or program involvement
Any special knowledge or qualifications that may be helpful
All member requests for committee service will be forwarded to the appropriate Committee Chairman for consideration. Committee service request forms are also available at the Club Office and may be submitted in person. All requests to serve on a committee must be received by Monday, July 12th.
All members submitting a committee service request will be notified as to the status of each committee in mid-July.
Please feel free to contact me at danm@bonitabayclub.net, if you have any questions or if I can provide you with any additional information.
We look forward to serving you soon.
Dan Miles
General Manager
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June 23, 2010 - Update
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Jerry Evans Lawsuit
On Tuesday, June 22, Judge Winesett granted Bonita Bay resident Jerry Evans a Summary Judgment on his $125,000 Promissory Note plus interest (about $10,000) since his resignation. Evans is also entitled to recover his legal fees from August 2009 since he offered a settlement at that time. Evans went on to say that Judge Winesett ruled that as a matter of Florida Law the Promissory Note is a valid enforceable legal obligation of Bonita Bay Group with clear unambiguous terms providing for repayment in full immediately upon a member's resignation. And those terms cannot be unilaterally and retroactively modified by Bonita Bay Group and BBG has an unqualified obligation to pay the Note on its original terms.
Bonita Bay Group has stated their intention to appeal.
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Homeowners Transition Committee (Please click here to see the latest information)
You should have received an email on May 29 from Larry Russell updating the homeowners of Bonita Bay on the transition process of the Community Association.
In an nutshell, the current Board of Directors of the Bonita Bay Community Association (Joey Garon, Terri Spencer and Gary Dumas) has waived its right to appoint one member to the BOD upon turnover of the BBCA to the Homeowners in November of this year. The new Board of Directors will consist of five Bonita Bay unit owners. A letter from the Nominating Committee will be coming out around June 25 inviting owners to noninate themselves and will explain the process.
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Bay Island Opens to Mixed Reviews
The highly anticipated reopening of the Bay Island Course met with some disappointment in the condition of the greens and fairways. It seems that the Grounds Superintendent is under a very tight schedule to perform much needed work on Marsh and Creekside and therefore had to order the premature opening of Bay. Every green is rimmed with a ring of grass that has been purposely killed off to stop encroachment.
Ground moving equipment is clearly visible (and audible) behind the fifth green as the land is being prepared for the 15 building sites in Bay Woods. The change in the esthetics of the hole is dramatic.
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Public Offering to Play Bonita Bay East Courses for $25 per person!
A link to a local southwest Florida radio station is offering a coupon to play our east courses for a mere $25 per person. Click to view the promotion.
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West Course Head Pro E. J. McDonnell Competes in Long Drive Contest
Dan Augustine, golf employee, in U.S. Open Qualifier
E.J. McDonnell won a grass roots qualifier in the Remax Long Drive Championship. His drive of 320 yards at Heron Bay Golf Club in Coral Springs was four yards better than the second place finisher. Next step is on August 7 at the same venue, where he will be facing other big hitters from Alabama, Florida, Georgia and Mississippi. The winner will move into the finals in Mesquite, Nevada held from October 27 to November 5.
Dan Augustine made a birdie on the 5th playoff hole at Kensington in the local U.S. Open Qualifier. Next step is a 36 hole sectional qualifier in Woodstock, Illinois.
Congratulations and best of luck to both E.J. and Dan.
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