Sun City Anthem
Resident
"Sounds
Off" at Cafe V
Fiasco
We at Anthem Opinions often get
emails regarding our articles, but every so often, we get some that we feel
deserve SPECIAL ATTENTION and
should have a life of their own in a separate
article.
This is one of
those times.
Following the two articles we
published regarding the insurance information pertaining to Sun City Anthem's
Cafe V, we received the following from distinguished resident, Mary Lee Duley.
Mrs. Duley is well-known in the
Sun City Anthem community for having a detailed data base with which she shares
vital community information with hundreds of
residents.
And...with her permission...along
with our gratitude, we wish to share this with all of
you.
____________________
Dear Anthem Opinions:
As you know, I forward informational emails to a relatively large data base on a regular basis. I do not have a web site not do I intend to have one.
It's rare when I comment on
any website available to SCA residents, BUT I would like to make an exception.
The handling of the restaurant space
at Anthem Center by ongoing Board members for years, has been inexcusable, and
many new residents don't have a clue as to the history of that space.
This story is LONG...but there's a
lot to share.
We moved here in 2006 so I'm unfamiliar with patterns prior to that time.
I believe the time has come to share my story
with you and your readers, and for the first time, expressing sentiments I have
had for years.
If the websites would reflect the Cafe V
CONTRACT and the attached INVENTORY that is an integral part of the contract,
residents would be SHOCKED.
Restaurants are NEVER leased "turn key" including
all Kitchen and Bar equipment and accessories, much less furniture, drapes, and
decorations.
A tenant should receive a BARE facility and then
it is the obligation of the TENANT to furnish, at THEIR expense, whatever they
need to open and operate THEIR business.
When we moved here in 2006, there was NO disclosure to owners about this lease agreement, as well as, a massive debt; and when it surfaced, the time kept clicking away with no solution.
When the Association finally contracted their
attorney, John Leach, many felt it was a conflict of
interest as Mr. Leach also represented Del Webb/Pulte.
I was at the top of the list asking for an
independent attorney to review all documents and represent the association.
"Trumpets" Restaurant, as it was known then,
owed over $300,000 to the association, and none of
us (the new purchasers) were made aware of this DEBT to Sun City Anthem.
When this was discovered, many residents attended
board meetings; spoke at the podium for two minutes each; and requested FULL
disclosure from the Board of Directors, asking that they SHUT it down IF they
were in default.
The assumption by all residents was that
"Trumpets" was in default!
The Association did not hire an independent attorney but continued to use their
existing law firm (John Leach).
The Association essentially LOST, and settled the
suit.
Not only did the Association
NOT get any money from Trumpets, but we also had to pay huge legal fees in
addition to what I believe was a settlement of
$250,000.
Having experienced 17 very successful years in Real Estate in Hawaii by running the fourth largest General Brokerage firm on Oahu for seven years and running my own firm for an additional ten years, I felt compelled to offer suggestions to our various Board members.
In additional to my real estate experience in
Hawaii, I was Owner/Innkeeper of a highly successful Bed and Breakfast in the
State of Washington for six years, before retiring, closing it, and moving to
Nevada.
I felt these suggestions were important for the
protection of our Association and for a qualified restaurant to
succeed.
Again, I continued to be shocked at this ongoing
fiasco, and began attending EVERY Board of Directors meeting with notes in hand
to present to the Board at their podium for residents.
Many residents had the same concerns, voiced
their opinions, and asked good serious questions.
Sadly, the questions were ignored, or the facts
distorted; and, once again, it was business as
usual.
"Trumpets" finally vacated the space; it cost us thousands to settle the lawsuit, and the Board desired a new Tenant.
A Restaurant Advisory Committee was appointed by
the Board of Directors.
It appeared to me that having owned a restaurant
or business previously was not necessary to be on this decision making
committee.
The committee appointed had
no restaurant background except for one couple, Tony
and Camile Brunetta, who also were new residents to SCA at the time, and
had owned restaurants, as well as, wholesale and retail food
businesses.
I was invited twice to attend the restaurant
advisory meetings by the Brunettas, who in my
opinion, were the most experienced on the committee.
Both had extensive restaurant experience in
addition to their wholesale and retail food companies on the East
Coast.
With impressive credentials, they attempted to
share what worked successfully for them over the years.
I watched them attempt to share their expertise,
only to be ignored and disrespected.
While attending the second meeting (as a SCA
owner not a committee member), I continued to be shocked at the Committee
members lack of basic business experience and ignoring what little expertise
they had on the committee.
I raised my hand, recommended
THREE suggestions that I considered important, and left the meeting with
the Brunettas as the meetings, at that point, were a
waste of time for those watching with experience.
I always took copious notes when attending any
meeting , in order to reference specifics in the future.
At the Restaurant Advisory Committee meetings AND at board meetings on a regular monthly basis, the following were my suggestions:
1. Hire a Nevada Licensed Real Estate Commercial Broker specializing in FOOD and BEVERAGE to find a qualified Tenant for the SCA space IF another restaurant was under consideration.
2. Hire a Nevada Licensed Attorney (law firm) specializing in FOOD and BEVERAGE to write a contract that protected the Association, to be rented as an empty space reflecting the Tenant is responsible for whatever is needed to succeed.
The previous restaurant contract had an INVENTORY attached to it! (unheard of in commercial real estate restaurant contracts) as it covered EVERYTHING!
A landlord NEVER leases a property as "turn key"
with an inventory and contract stipulating that as equipment breaks or needs
replacing, the Landlord pays.
3. Eliminate the Inventory Completely as it has been a Money Pit in
the past, and continued to be one and it did NOT benefit the
Association.
It only benefited the Tenant and there would be endless replacement and repair costs to the Association.
SIX years at an SCA Board Meeting Podium making the same three suggestions, repeatedly, and watching failure after failure with history repeating itself !
This current contract for Cafe V with continuous
changes, rent reductions, and ongoing concessions is, in my opinion, the worst
since we move here in 2006.
To read that a SCA Board Member could NOT answer a very basic and important question about Cafe V and whether or not Cafe V's insurance is in effect, is alarming, as you elaborated.
Cafe V has continuously
defaulted on their contract with SCA, yet there appears to be No
Enforcement of the terms of this contract, and the
restaurant owner is rewarded (?) by rent reductions, late payments without
penalties, free advertising, and other concessions
(?).
If this were YOUR personal property being leased
to Cafe V, the terms of the contract would be strictly enforced, and penalties
would be assessed for delinquent payments; and, if not paid, the tenant would be
given notice to vacate.
That's what I would do.
Who can afford to subsidize a failing
business??
As I previously stated, I rarely, if ever, comment on website blogs, but this issue IS important and changes are needed NOW, in my opinion.
When you default in contract terms and allow
insurance to lapse, among other things, "Notice To Vacate" should be given, in
writing, immediately!
The Board needs to Enforce the terms of the Cafe
V Contract and all other contracts.
_______________
Do you, our readers, feel similarly to Mrs. Duley?
Whether you do or
not, we'd like to hear from you as well.
Send us an email
at:
And most importantly....if you
share Mrs. Duley's and our concern for the well-being of our retirement
community's financial future, we ask a favor of you....
Make your friends aware of these
issues, and share this information
with them.
Why?
We'd like to believe, YOU
CARE.
Anthem Opinions Administraion
Let's cut to the chase:
(1) Either the HOA Board member(s) are far more incompetent than anyone realizes,
or
(2) somebody, somehow, somewhere is make a lot of $$$$$$$$$$$ on the side by allowing this debacle to continue
We have never written to Anthem Opinions before.
Jim and I have lived in Sun City Anthem since 2002, and we agree with everything that Mary Lee Duley's message contains. The whole issue is a disgrace, and has cost the Association a fortune - not to mention the bad feelings that it has fostered.
Why have no members of this board, and those preceding it, never used common business sense, and/or listened to suggestions and comments by the residents?
Perhaps (although we don't know if she would want to be nominated) we should all campaign for Mary Lee Duley for President in the next election?
Nothing will change until we the residents of SCA VOTE TO CHANGE THE BOD!
Just like the government - we obviously haven't gotten mad enough yet!
I am also very concerned with our moving to self management with this board in charge!
To Anthem Opinions:
I think subject letter highlights the problem existing in SCA current structure; that inexperienced people are involved in making decisions on important issues in which they have little or no experience.
Unfortunately, SCA is about to expand the lack of experience issue by going into self management.
Please see my comments on David Berman’s latest blog where he laments the G.M. who he describes as effective, being given new responsibilities.
Having been involved in change of management situations, I saw practices implemented which encouraged employees to remain with the new company until they were granted a release, or the time specified expired.
Apparently the Board either didn’t expect defections or didn’t care.
Either way, lack of experience is obvious.
Thanks for continuing to look at issues and calling our attention to them.
Stated Mr. Greenberg:
"You have to be kidding. If the BOD did not anticipate departures as part of the transition to self management, then they are naïve.
Anybody who is not guaranteed employment for a time after the transition and/or a bonus to stay, will seek employment elsewhere.
I also believe the G.M. position after the transition is subject to problems.
As an example, if the person leaves who will pay for moving expenses for new person?
Who will act as G.M. during the time a new person is being sought?
If the 2nd person leaves when does the 2 year guarantee end?
One other point I have not seen being discussed is the Human Resource responsibility.
Is the G.M. expected to be an expert in employee laws and practice?
If so, is the requirement part of the search criteria?
In short, just as the situation with Café V, the potential problems are unknown and the details will bite us unless the expertise required for self management is at a much higher level than demonstrated thus far.'
I was in the commercial insurance business, working for major companies as an underwriter, and cannot believe that Vic's is getting away with not providing insurance certificates.
Given the lack of competence shown by all boards in this matter, how is the association's insurance carrier not getting involved. If a claim is not covered by Vic's insurance could not it fall back on the association's coverage?
Thanks for keeping us apprised of this.
Guess we have to wait for next year and hope the residents wake up to this (and prior) board's lack of knowledge.
I was amazed reading about the history of the restaurant in our community especially the absolute refusal by the board of directors to enforce the lease and protect our homeowners .
If we cannot persuade this incompetent board to get rid of the current freeloaders, perhaps it is time to change our approach.
The pressure placed upon the board by our community has proved to be futile so let's put pressure directly on the restaurant.
We can have volunteers stand outside of the restaurant every night handing out flyers to everyone who enters, informing them of the financial shortcomings and ignored responsibilities of the restaurant operators. Every night the flyers would address different topics and the history of how this situation came to be. Include the email addresses of the board members.
Something has to be done. Maybe some action outside of the board meetings is necessary. But, I will guess we might have rules that will prevent us from using such a effective method to put pressure on all involved.
I agree, 100% the problem with trying to show up at meetings is they have it at a time that only people that are 100% retired can show up.
Remember it’s a community of 55 and over; a lot of us are still working if not full time, part time.
David Strand,
Your thoughts posted on Anthem Opinions about a protest in front of the restaurant are exactly the same as mine.
Three days ago I sent a private email to owners of Anthem Opinion and Anthem today and several others vocally against the BOD bad habits harboring a failing restaurant.
Guess what...I received only two responses in favor of organizing a restaurant protest.
Typical in SCA...most of those that complain only sit behind their computer with lip service, won't take any action, and wait for someone else to fix the problem for them.
Many of the same folks are never seen attending meetings and speaking out.
One can't do it alone, but a dozen or more well organized individuals will get the job done.
Last night I conducted a head count of restaurant goers...between 6:30 and 7:15 PM...less than 10 diners and zero at the bar.
If you and anyone else are serious about organizing action against the BOD and Cafe V....my email is forrestf@cox.net
Your email was received, but in our opinion, any protest would be premature at this point.
There is little doubt this entire matter caused great controversy in our community, but hope still exists following all the comments residents have made , that the Board will take the necessary action to properly protect our community financially.
Why do we have this belief...for the time being?
They know that THEY will pay a heavy price for not acting in light of having had full knowledge of default and the insurance lapsing due to their neglect, yet allowing the restaurant to remain in operation.
That IS a breach of fiduciary responsibility...and as each day passes, if an individual is injured or gets ill as a result of dining at that restaurant, the association's liability insurance will probably cover a claim; however, that claim affects CLAIM EXPERIENCE and inevitably affects future premiums.
For now, we hope that those in the Anthem Center will stop Cafe V patrons as they enter the establishment and merely tell them that the restaurant is uninsured, allowing them to make their own decision as to whether they choose to enter under those circumstances.
It our strong belief, that we cannot create a MASS PROTEST situation in which the restaurant could potentially claim that association actions have affected their business operations....it would give them grounds for a lawsuit....which we don't need at all !
We just want them to GO AWAY and leave us in peace.
What we do have a problem with is....WHY THE ASSOCIATION ATTORNEY hasn't yet come up with advice as to how to solve the problem...
OR..
if he has, WHY A BOARD PRESIDENT won't inform residents WHAT IT IS.
If the Association Attorney has not yet responded, and I was the President of Sun City Anthem, I would simply call him and say:
"This situation is EXPLOSIVE...and you have 24 hours to come up with an answer...
...OR YOUR REPLACEMENT WILL".
Five residents have called me this morning regarding a formal Sun City Anthem transmittal at 9:31am and it’s only 9:50am.
It advertises the Cafe V Restaurant Specials.
This is the kind of EBLAST that residents are irritated in receiving.
Residents expect e-blasts from the association to have "pertinent information", not a daily “lunch special” and that's why residents haven’t signed up for these transmittals and delete upon receipt, rather than seeing if it’s important.
It is incomprehensible, given the articles and resident comments, that whoever is in charge of sending the Cafe V COMMERCIALS...which constitute ENDORSEMENTS, that they have not ceased given the knowledge of the organization not currently being insured.
I ask all residents to send their comments to board members to cease these eblasts immediately.
At this stage, in our opinion, all that they represent are merely ARROGANCE on the part of INCOMPETENT and UNCARING Board members and of the MANAGEMENT COMPANY.
"I would hope this Cafe V issue is brought to a conclusion at the earliest opportunity...it is DESTROYING this community and any hesitation on the part of the board, is DESTROYING THE CREDIBILITY OF THIS BOARD.
If this board expects to survive, I would strongly suggest CLOSING THAT PLACE DOWN at the earliest opportunity.
Yesterday, after Mary Lee Duley's article was posted, a total of 2,223 separate computers visited Anthem Opinions reading her story, and the numbers are increasing with each hour.
Please feel free to pass this on to fellow Board Members because the days of secrecy have now caught up with Boards, and the residents are honestly, starting to seek your "skins" over this.
And the person who most of you believe assists you in elections, doesn't even address the matter...which further diminishes HIS CREDIBILITY when 2,223 others know what it happening and he avoids the TRUTH.
This issue is THAT CRITICAL.
Stop putting our association at financial risk."
I read all the comments on Anthem Opinions!
I wish people would remember that the current Board has been in office only 1 month.
Hard to untangle all the issues of the past 8 years with the restaurant.
Wish residents would give this new Board a little more time to get things right.
I can promise you that if this Board tries anymore giveaways, I will be very outspoken publicly. .
At this point our lawyer is supposedly sending them a letter with our final demands.
We hope that the remaining 6 of the Board Members will share their thoughts with us as well.
However...this community urges you and the others to inform residents of the potential liability involved with patronizing an uninsured restaurant....and at the very least, CEASE all further eblasts advertising (and ENDORSING) them.
Again, Carl, thanks for your OPEN thoughts.
As an owner and occupant of a house at Anthem Sun City, I agree strongly with your feelings about the restaurant. We should not subsidize the operation of this restaurant. If we cannot find an operator, may I propose that we shut down this operation.
Let's circulate a petition to the board of governors at the HOA and forward such petition to them.
Let's identify the names of those unresponsive governors, so that we can raise a motion to impeach them, or at least no to re-elect them at the next election.
Being a relatively new resident to Sun City Anthem (less than two years), I am absolutely shocked at the arrogance of the owner of Anthem Journal.
Does he NOT get it, with regard to the seriousness of the restaurant defaulting on their debts and not having insurance?
While we dislike receiving the e-blasts reflecting the Cafe V MENU, on a regular basis, he now posts then on his web site.
There seems to be a distorted version of what is happening in this community on that blog, and whereas the Cafe V owner provided “two checks” for payment, he was in DEFAULT of payments of rent, electricity, and a promissory note.
Did the two checks bring his rent current?
Hughes is not paying the electrical bill as he feels the ‘garbage costs are too high” and he wants to “negotiate”.
There seems to be an ongoing “negotiation” with the Board of Directors and this Larry Hughes who owns the business.
Are there any other partners we are not aware of that may be residents of Sun City Anthem?
Until Anthem Journal starts addressing the specific facts, as opposed to his interpretation and distortion of them, I will continue reading Anthem Opinions, Anthem Today, and SCA View as they don’t hold back of reality and facts when reporting.
The Board of Directors has given everything away, without putting it to a vote before the entire community.
The items that are replaced free of charge and placed is a lease agreement is a travesty.
The contract is a disaster and the reference by another resident that an INVENTORY should NEVER been attached to a lease agreement for a restaurant is ‘“right on”.
What was the Board of Directors thinking?
Obviously they sought no legal input from “food and beverage specialists” in Nevada.
Can you imagine Steve Wynn or other casino moguls putting together a contract like the one in effect in SCA?
Contracts, when agreed upon, are not changed with reductions in rent .
Has any member of the Board of Directors of SCA EVER owned a RESTAURANT or BUSINESS of any kind?
The decisions being made are NOT in the best interest of this community.
This is unheard of in other HOA’s in Illinois, Idaho, and most of the other states.
ANY TIME A VOTE EFFECTS THE COMMUNITY, IT SHOULD BE PUT BEFORE THE HOMEOWNERS..
That didn’t happen, we do NOT want to subsidize this venture or any other venture in that space, so WHAT needs to be done to put a stop to it?
It appears to me and many in our village and clubs that I belong to, that the Board of Directors, guided by a new president, will do “anything” they desire without any consideration to feedback from residents of SCA.