Reply To: SCA President’s Report 2/22/24

Home/Reply To: SCA President’s Report 2/22/24

Reply To: SCA President’s Report 2/22/24

Home Forums Community Meetings and Events SCA President’s Report 2/22/24 Reply To: SCA President’s Report 2/22/24

#8804
Stephen Anderson
Participant

You have asked a great question.  I doubt that WHG would agree to such a modification in their contract as the restaurant belongs to SCA.  It is an amenity of SCA and WHG provides the services offered through the amenity.  When Del Webb built this community the restaurant was built as part of the many amenities of the Association.  At the time Del Webb was in control, they subsidized the restaurant to the tune of at least $250,000 and perhaps even more. Over time after Del Webb pulled out and turned control over to SCA, the subsidy stopped and overtime these restaurants failed.

When the decision was made to reopen the restaurant and enter into a contract for WHG to manage the restaurant on our behalf, the Board saw this as the reopening of an original amenity that the builder provided to residents buying houses here.  In treating it as an amenity, the most critical issue is overseeing the size of the subsidy to operate it.  All of the monthly Yorktown Grill operating statements are posted online for your review.  Every resident can see how the restaurant is doing.  While we have been progressing downward, during January the loss was almost double what was expected.  Until the restaurant has been open for at least a year, it is hard to say whether this is a trend or not. We do not have enough data to forecast how the restaurant will perform at this point.  SCA staff and board members meet monthly with WHG to go over their previous months performance.  They know that this type of overage is not acceptable.

The whole issue of allowing catering to outside groups was initiated by SCA.  The truth be known is that when there was a meeting with WHG to discuss their being allowed to cater to outside groups, they really wanted to focus more on doing special events (wine tastings, Mother’s Day, etc) with our residents to drive up covers rather than to jump into outside catering.

At the time that I was on the board when the contract was signed with WHG we specifically said in the contract that there would be no catering to outside groups.  We made that decision as we wanted to protect SCA groups in being able to have first chance at reserving and holding their events in our event spaces.

Currently we have found that there is a lot of availability in later spring and during the summer when few groups are booking the event spaces.  The thought was to perhaps now allow WHG to book outside groups during these open periods.  Before making any decision SCA has scheduled a community forum on the issue, and if the board were to vote to allow catering to outside groups it would be to do so only after making sure that outside events would not bump out SCA groups and that SCA groups would always have first choice.

The contract with WHG is incentivized so that when we go over revenue neutral, the first approximately $45,000 will go to SCA and after that it is split 50/50.  I have confidence that with some time under their belt that WHG will deliver an amenity for which the subsidy for the services will decrease.  The key issue as with any of the amenities we enjoy at SCA is that we use them and work to make them better.  Food is an individual issue and not everybody will like what is being served or how it is being served.  Not everyone will like the restaurant and will use it.  At the same time many residents are well enjoying the restaurant, its food and service.  Many of the catered club events are earning positive reviews.  If you have less than a stellar experience, please tell your server and make sure you post your experience through the contact section on the Yorktown Grill website. I guarantee that your comments will be read and will bring about changes.

As an amenity the restaurant is no different from all of our pools.  While we focus on the costs associated with the restaurant we forget the expense for the operation of our pools by wanting to know the cost of the water, natural gas to heat the water, electricity to run the pumps and filters, and the cost of chemicals and maintenance.

I understand the feelings in this community that have been very divided over the restaurant representing avid supports to those who avidly want the restaurant to close today.  However, the decision has been made to reopen this amenity.  The task today is to help it succeed and to exercise strong oversize to see that our anticipated and forecast level of subsidy to run it continues to decrease.