Yesterday’s MCA Special Meeting to “Consideration and vote on a
Short-Term Loan Request from The Meadows Country Club” was a lively one. The MCA Board was to consider and vote on (it was to be a Board vote, not an MCA Homeowner vote) at loan to TMCC as follows (info provided at the meeting):
$250,000 loan @ 5% interest. To be repaid as follows:
$100,000 in February
$100,000 in March
$50,000 in April
The Treasurer mentioned a 5% “penalty” for late payment. 5% = $12,500
The Chair indicated that they had consulted with their bankers and lawyers and believe the MCA is legally allowed to loan TMCC money, but did not provide any by-law or statute reference.
The Treasurer indicated that TMCC needs funds to make payroll immediately and for the remainder of the year.
As a result of MCA Homeowner feedback, the MCA Board voted to “table” the loan motion which means they deferred voting on it. There will need to be another Board meeting to vote on it or some other loan proposal.
There will be commentary and discussion in a later post, but we wanted to share this info as well as a video provided by an attendee and a sample of the MCA Homeowner comments:
The following remarks made by an MCA homeowner are typical of many of the MCA Homeowner comments made at the meeting.
What we have heard here today confirms the validity of my objections to the MCA Board decisions for the last two years.
It has been obvious for at least two years, that TMCC does not have a business model that is self-sustainable.
Beginning in 2014, TMCC was losing money at the rate of $1 million per year and by 2017/2018, TMCC was confronted with filing for bankruptcy.
At that time, we the Meadows residents, were told that in order to maintain the greenspace and maintain our home values, we needed to secure the financing of TMCC.
This was approved by a vote of the Meadows Community and the MCA Homeowners were forced to pay $6 million dollars to buy the golf course, tennis facility, pool, dining and other buildings.
The Meadows Homeowners own TMCC facilities and these operations may be run without any involvement of TMCC.
In addition, the MCA Board agreed to a 3 year lease of all these assets with TMCC at “favorable terms” of an annual lease payment of $10/yr in order to allow TMCC to gets financial house in order. TMCC still bled cash annually and could not pay its bills. Any yet, the MCA BOD agreed to a new three year lease at $10/yr, without demanding any changes be made to TMCC or its operations or its business model. And the MCA BOD added the new fitness center to TMCC lease! Thus the MCA BOD failed it fiduciary duty to protect the Meadows Community assets.
In 2021, the MCA spent an additional $2 million improving TMCC private golf course and clubhouse dining room, which are exclusive for TMCC member use.
In 2022-23, the MCA spent $4 million on the lifestyle and wellness center and gave the fitness portion of the center to TMCC as part of the $10/yr lease, while receiving nothing in return. In addition, the Board voted to pay TMCC $600,000 per year for the right to use the fitness portion even though the Community owns these assets.
In 2024, in the face of continued financial losses by TMCC, the MCA BOD agreed to a new three year lease at an increased lease rate of $65,000/yr,
(A)without demanding any changes be made to TMCC or its operations or its business model, and
(B) without demanding that the Meadows Community owned assets of TMCC be maintained properly. TMCC could not pay their bills when they were paying a $10/yr lease rate, how in the world did the BOD believe that TMCC would suddenly be able to pay even this modest lease rate?
Thus, time and time again, the MCA BOD failed its fiduciary duty to protect the Meadows Community assets….. without transparency and without accountability.
Each of these additional expenditures beyond the initial purchase of TMCC assets, were not voted on by the Community, and necessitated the MCA to take out additional loans, were not voted on by the Community.
Bottom line: The business model of TMCC has not and does not generate enough cash on its own to pay their own way since 2014…..
….which has necessitated time and time again, that the entire residents of the Meadows subsidize TMCC operations.
When does this stop?
When does TMCC pay its own way.
TMCC management has proven inept in managing its own operations and it is past time to fire them!
It is past time for the Meadows community to stop being the private bank for TMCC.
If the business model of TMCC is sustainable, let them secure private financing and pay us back in the next 60 days.
TMCC managers have proven to be incompetent and the business model has proven to be broken.
The MCA BOD have failed to uphold their fiduciary obligations to the Meadows Community. And now you want $2 million more to build TMCC a new clubhouse when they did not maintain and protect our assets over the last five years, and their business model continues to run in the red?
It is past time to follow my recommendation of the last two years and hire a consultant who has expertise in operating a private country club profitably and make the necessary changes to restore profitably.
In addition, I would ask that a committee of Meadows residents, voted on by the community, would secure and work with the consultant and make the necessary detailed recommendations for changes to be made to TMCC operations for a self-sustainable future.
The MCA BOD should not be part of the consultancy process….
…because of your continued individual and group failures, lack of transparency, lack of integrity, and conflicts of interest have disqualified you from this process.
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