A Walk Down Memory Lane/Report Card

If there are any inaccuracies in this post, let us know at  ForTheMeadows@SarasotaMeadows.com and we’ll fix it.

We thought it would be useful and informative to review some of the promises and claims that were made when MCA Homeowners acquired the recreational and dining assets of TMCC (we sort of promised this in an earlier blog). These are all excerpts from larger documents but we’ve provided links for your convenience if you want to review the whole article or document. As always, if there is anything below that isn’t correct, please let us know and we’ll fix it.

Short story: The MCA’s track record on following through on the commitments they made to justify the purchase is not good. Time to turn that around! (reminder that we support the acquisition, but not where it has gone since)

2018 May Meadoword – President’s desk (excerpt) – Country club update

We are also talking to developers and other experts on how to make best use of the 32-acre parcel of land surrounding the clubhouse that has been rezoned for development. Part of the plan will include updating some existing club facilities and building some new recreational and wellness facilities that will be available to both club members and residents. There will also be some residential units built in this area. We are asking developers to focus on developing housing that meets our goal of adding value to The Meadows in two ways: producing the maximum value from the sale of our land and maximizing the property values of our existing homes. It seems that some of the larger buildings we originally envisioned on the property aren’t attractive to developers in today’s market, so we are exploring other options.

WHAT HAS ACTUALLY HAPPENED: We are not aware of any sustained efforts to follow through on some of the development plans pursued from 2014-2017 to make use of un-utilized areas that had already been re-zoned for new development.  

2018 Summer Meadoword – Notes from the President’s Desk (excerpt)

The MCA’s purchase of 330 acres of land from the club achieves our goal of preserving and protecting the open space that provides The Meadows the lush green appearance we all treasure. In buying the property we have taken on additional responsibility as a community, and we need to continue to work together to assure that our investment pays off.

WHAT HAS ACTUALLY HAPPENED: No notable changes to “assure that our investment pays off”. In fact, MCA Homeowners have continued to “invest” more and got nothing in return. (more on this below)

May 15 2018 Letter to MCA Homeowners

“The payment plan has been carefully structured to allow the MA to complete the purchase without taking a mortgage, and at the same time provide the country club the funds needed to operate and make required improvements over the next several years”

WHAT HAS ACTUALLY HAPPENED: Of the $6 million TMCC received, $3 million went to pay off the debt (originally bank debt then MCA owned debt), $1 million repaid TMCC members who had loaned funds to TMCC, and the remaining $2 million funded losses in 2018, 2019 and 2020. None of the funds were used to “make required improvements over the next several years”.

All significant investments in improvements were funded by MCA Homeowners, not TMCC using the asset sale funds. (more on this below)

May 21 2018 Letter to MCA Homeowners

Why didn’t MCA take over the management of the club as well as buying the property and buildings? “
The legal structure of the MCA and the club made the purchase with the lease back to the club the most efficient, economical and expedient way to structure the purchase. Continuing the operation of the existing entity of The Meadows Country Club saved thousands of dollars in fees, licenses and taxes, surveys and other costs.

WHAT HAS ACTUALLY HAPPENED: We accept that at the time of the transaction it made sense to keep it simple, and that there are legal structure issues for the MCA that need to be worked out. But that was 6 years and one 3-year lease renewal ago. More than adequate time has passed to figure out the legal structure issues. And the “thousands of dollars saved” were long ago surpassed by the annual $600,000 subsidy that began about 18 months later.

Further, in TMCC’s current legal structure they are likely already exceeding the limits of revenues that a tax-exempt organization can receive from non-member sources (by a LOT).

It is past time to do the hard work of figuring out the issues that need to be dealt with, even if it does cost us “thousands” it will actually be an investment in our future.

Will assessments go up?
Yes. To make the upgrades and improvements that we are planning as part of the Renaissance Plan, we will need to invest more heavily in our 40-year old property. Our 40-year old infrastructure is reaching the end of its functional life, and major repairs are needed to bridges, irrigation systems and ponds.

WHAT HAS ACTUALLY HAPPENED: Since 2018, assessments have gone up 156% from 2018 to 2024 ($1.8 million in 2018 to $4.6 million in 2023-2024 budget). That’s more than 2.5 times what they were in 2018. So, yes they sure went up. But it doesn’t look like they went up for the reasons that were highlighted. Expenditures on fixed assets over that period totalled $12.5 million, and were spent on:
$6 million – TMCC Asset purchase
$4 million – Fitness and wellness center (added to TMCC lease)
$1.6 million – Improvements to Meadows/Members course for the benefit of TMCC members
$0.4 million – Renovations to Regency Room for the benefit of TMCC members
$0.5 million – Other. Presumably “bridges, irrigation systems and ponds”

Is it possible for the club to make money again?
Yes. For the last two years under the guidance of Billy Casper Golf, the club’s operating losses have declined sharply.

WHAT WAS ACTUALLY HAPPENING: Completely false statement. Losses in 2016 and 2017 were DOUBLE the losses in 2014 and 2015.

Joint team has developed a plan that projects profit for the club by year three (2020)

WHAT HAS ACTUALLY HAPPENED: 2020 – LOSS of $620,951 excluding $500,000 of Renaissance Access subsidy which was not planned in 2018 (as far as we know). This is a lower operating loss than in 2017 (approx $1.6 million) but almost all of that change is due to MCA taking about $800,000 of interest and depreciation out of TMCC’s expenses.

Why only $10 lease payment?
Three rent-free years are required for the club to get back on its feet.
We will then renegotiate the lease and adjust the payments

WHAT HAS ACTUALLY HAPPENED: The club did not get back on its feet (without the Renaissance Access subsidy). MCA renewed the lease for a second 3-years without adjusting the lease payment which stayed at $10/year.  

The second 3-year lease ends on June 30, 2024, just 4 months from now. If the MCA Board is going to represent the interests of MCA Homeowners, and keep the commitments it made almost 6 years ago, the MCA Board MUST NOT RENEW THE LEASE FOR ANOTHER 3 YEARS. The MCA and TMCC could agree to continue it on a month-to-month basis (as the lease terms allow), or perhaps renew it for ONE year to figure out the MCA’s path forward.

THE MCA HOMEOWNERS ASSETS HAVE TO BE UTILIZED
TO BE IN THE BEST INTERESTS OF MCA HOMEOWNERS

LETS START MOVING TOWARDS THAT GOAL

Contact us at ForTheMeadows@SarasotaMeadows.com