Is Management Hiding $1.4 Million Restaurant Re-opening cost??

[Rana Goodman]

By Forrest Quinn Former member SCA Board of directors

IS MANAGEMENT HIDING $1.4 MILLION OF RESTAURANT REOPENING COSTS TO HELP RE-ELECT THREE INCUMBENT DIRECTORS?

Management provided restaurant reopening cost information in February’s Board Book (pages 119 and 120).  However, this report has two fundamental errors:

1)​ It answers the wrong question.  It only reports spending-to-date, not the total expected costs to reopen the restaurant.  For example, when the Board signs a restaurant remodeling or furniture purchase contract, management misleads residents by excluding these amounts until they are paid.

2)​ Despite the seemingly accurate “to-the-penny” cost presentation, the report doesn’t include the obvious: A total.  So why are 7,144 SCA households required to add various amounts from two pages to determine the restaurant’s total spending to date?

I estimate the restaurant’s total reopening costs are about $1.4 million, but the amounts provided by management only total about $683,000.  How can directors and residents make informed voting decisions with incomplete/inaccurate information?

Which cost presentation choice helps current directors get re-elected:

1. Confuse/mislead voters with an incomplete and messy list of restaurant costs with no total, or

2)   Report $1.4 million of expected restaurant reopening costs?

It just so happens that choice #1 likely re-elects three incumbent directors who don’t hold management accountable for providing unprofessional work-product like incomplete and jumbled restaurant costs with no totals.

For transparency, management should have a summary report like this (followed by detailed information):

As summarized below, projected restaurant reopening costs as of xx/xx/xx is $1,4??,???:

1)​  Spent to date …….…………………………….…….… $ ???

2)​  Deposits/advances ………………………….….….… $ ???

3). ​Approved spending not included in 1 & 2 ….. $ ???

4)​  Other estimated costs to complete ………….. $ ???

5)​  Expected 90-day pre-opening costs …….…… $ ???

Estimated reopening costs…………………….  $1,4??,???

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