Elizabeth, I apologize for my lateness in answering your very excellent question above. Let me address your question in two parts.
- Mr. Swenson and his small group will be monitoring performance of the restaurant to ensure that it is moving in the direction outlined by the business plan. This will include an analysis of how much the restaurant is costing us not only in terms of what we are paying WHG, but also looking at the costs SCA will incur such as utilities, insurance, etc. Our Finance Department monitors the reimbursement requests by WHG that are accompanied by backup documentation such as invoices for purchases.
- The business plan submitted by WHG outlining the restaurant becoming revenue neutral in year five was based on the operational costs of the restaurant by WHG and includes their $9000 monthly management fee. These calculations were based on the restaurant only and did not include catering. Including catering could result in achieving becoming revenue neutral earlier. The estimated cost to each home owner for the five year period comes to about $93. This amount does not include the cost of utilities, insurance, and other costs SCA would incur that are outside the scope of what WHG is contracted to do. The contract signed with WHG does have a provision that when we enter into the 50/50 revenue sharing phase of the contract that the first $45,000 will be paid to SCA as a way to reimburse at least some of those costs.
I hope that this answers the questions that you posed. At this point I am eager to get the restaurant open and that the community works for its success. Everything at this point is based on what we hope will happen. Only by being in operation will we get concrete results and know whether we were more right or more wrong in making this decision. When I first ran for the Board, I stated during the campaign that I would be in favor of a restaurant if I could be convinced that it would not become an ever increasing money pit. I supported the contract with WHG and the reopening of the restaurant because I believed that the overall five year project subsidy was reasonable and that being run in the way that WHG envisions that it would be an attractive amenity for the community. At the tasting event held for the Board I was impressed that we are going to have excellent tasting food for a reasonable price all delivered with excellent service. It is the task of the board to make certain that the financial, food and service goals happen.