Comments on President’s report

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Comments on President’s report

Home Forums Where I Stand SCA President’s Report August 2022 Comments on President’s report

#7239
Nelson Orth
Participant

In these trying economic times for all of us, the SCA BOD has decided to increase our quarterly assessments by $32. That equates to an additional $914,432 for CY 2023. So why does this board need these additional dollars?

There are two reasons. First is the approved $10 to $15M over a ten year period provided to the Anthem Community Council (ACC), by far the most corrupt external organization that SCA deals with. I cannot find or know of any documentation that ACC provides to SCA that explains or justifies the $633,000/year that we provide to ACC. That is in addition to the $10 to $15M listed above. I challenge anyone to attempt to ask ACC for any documentation on any subject. How about a copy of their federal income tax returns? Or where is the documentation on the rationale for the increase in our 2023 assessments?

The second reason is the costs for the new restaurant. Keep in mind that the SCA BOD has admitted that for at least the first four years this restaurant will lose money, and we, the homeowners will be responsible for those losses.

I just finished reading the two signed agreements between SCA and the Western Hospitality Group (WHG). The first agreement is two pages titled “General Restaurant Start-Up Consulting Agreement” dated May 23, 2022. The second agreement is 40 pages titled “Food and Beverage Management Services Agreement”, and it too is dated may 23, 2022. There are three items that caught my attention in this agreement.

The first is on page 11. It states that “SCA will pay WHG $9,000 (Basic Monthly Fee) per month as compensation for WHG’s performance of its obligations pursuant to this agreement”.

The second is on page 12. It states that “If the Restaurant generates an Annual Net Operating Income in excess of $48,000, SCACAI will pay WHO an annual incentive fee equal to fifty percent of the Annual Net Operating Income in excess of $48,000 (Annual Incentive Fee).

The third is on page 14. It states that “SCACAI will be responsible for the funding of Payroll Costs”.

The last item I would like to discuss is the liquor license. It is true that the SCA application for this liquor license is being reviewed by the Henderson City Attorney’s office. This is not the normal process. The normal process is for the application to go to the Business License Department, who forwards it to a group that vets the names of the applicant/s.

This process normally takes 6 to 8 weeks to complete. If the vetting is satisfactory, then it goes to the Planning Commission for approval before the City Council makes the final decision. I suspect that the City Attorney is reviewing the application because there are few, if any, HOAs own their restaurant. I will be interested in seeing who the SCA BOD name/s are on this application.