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Sunday, February 2, 2020

Restaurant Self-Management...A Losing Proposition No Matter How You View It (Part One of Three)

As promised today we will begin a three part series of articles on the Sun City Anthem self-managed restaurant being proposed and sponsored primarily by Association Vice President, David Weil.

Unlike another publication, Anthem Opinions will look at the challenges self-management of an association owned restaurant presents, the immense amount of association funds required to create it, the liability to owners, the insurance difficulties involved, the continuing and increasing costs that each owner will be forced to absorb year after year, and which Board members support it and those who do not.

We will not threaten any Board candidate, but what we will do, is oppose any candidate who cannot present an argument who would choose to go forth with such a proposal without proper research, combined with presenting the community  a FULL STORY of the pros and cons of the  matter...

...and allowing THEM to decide an issue of this magnitude.

To promote any such individual without proper community notification of a complete story, pros and cons, would be, in our opinion, unfair to the property owners on which to base an intelligent decision. 

We will also look at the issue of requiring  that such an establishment is demanded by Association CCRs.

While another publication suggests property owners accept Mr. Weil's proposal because it has never been attempted before... 

...Anthem Opinions rejects that conclusion.

The very thought of going forth with such a project under the assumption...

"It will work because it is something new"...


...Is preposterous and an insult to the intelligence of the property owners of Sun City Anthem.

Instead, we will look at the issues that have been prepared with input from those with experience in the various matters surrounding this crucial decision.

And based on these articles...

...which will encourage resident input....

...we hope that decision on whether to go forward or remove it from consideration, will be based on the financial soundness of such a proposal, not based solely on the emotion of ...

"I want a restaurant".

With that in mind....

Sorry Mr. Weil
Your Restaurant Idea Makes No Sense
(Part One of Three)


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14 comments:

  1. From Favil West...to...Anthem Opinions

    The Association ran Trumpets as well as Buckmans from 2000 to September 2002. (the Revere was sold in 2002)

    We, at least those of us involved, learned a lesson, and that is self-management is the key to greater expenses and declining revenue.

    Under self management of the restaurant the association was losing more than $270,00 per year.

    Once we rid ourselves of the restaurant, we were able to become self sufficient, and in 2004 we were able to remove ourselves from the Del Webb subsidy.

    There is no way the restaurant as a self managed entity will work without gaming or without subsidy.

    ReplyDelete
  2. From Barbara Sidary...to...Anthem Opinions

    Glad you are doing a story on the restaurant. 

    I have had several individuals ask me what is going on. 

    I know they are having workshops, but I don't think they will ever tell us how much money this is actually going to cost us. 

    We probably won't have any say in the decision, but they will make us think we do. 

    I don't understand why they don't wait until after the board elections since maybe the old school members (3 individuals) might not be there anymore.  

    ReplyDelete
  3. Barbara, Anthem Opinions will attempt to tell what is going on,and just how serious of a liability this represents to the community.

    Putting it simply, it is a poison that will prove deadly now, and even worse, as the years pass.

    ReplyDelete
  4. From Robert Nusser...to...Anthem Opinions

    Too bad the restaurant isn't a stock - I could make a fortune shorting it !

    ReplyDelete
  5. From Ray Jensen...to...Anthem Opinions

    I am opposed to a restaurant here at SCA.

    There is too much competition on Eastern Ave. and near by casinos.

    If it passes I would like to see those who want  it, pay the costs relating to it.

    Those who want  it, must give their address and willingness to be assessed in the event of such need.

    They would be given a card or designate on their already issued SCA card.

    Only those with a card or designation  and their guests would be allowed to dine there.

    This is a fair and equitable  means to accommodate all.

    ReplyDelete
  6. Ray, we'll even let them keep the "profit" too ! (LOL)

    ReplyDelete
  7. From Robert Latchford...to...Anthem Opinions  

    It seems as some of the some of the most recently elected BOD members can hardly wait to flex their financial muscles by jumping at the chance at the opportunities to use our dues dollars to jump into projects which may or may not benefit the community. 

    I certainly am not demeaning the various repair and maintenance projects that were due or in some cases long overdue, but I see 4 of the current board members set to resume chasing their tails in another attempt to waste time and money in pursuit of the destined to fail, pay twice, restaurant, in subsidies plus usage, as they seem to think that changing the description of the on premises eating place from a business to an amenity, can change the fact that it can stay afloat only if the jingling of a cash register provides sufficient revenue to pay the bills, keeping the homeowners digging deeper into their pockets in return for the center of a bagel. 

    So, realizing that it costs us money to leave the restaurant area vacant with maintenance, utilities and possibly tax advantages not used, is our board is so center focused that they are willing to spend like drunken sailors to save peanuts?

    Before this proposal goes much further, many questions should be addressed. 

    Has the board seriously investigated other uses for the space, like small service businesses or office spaces?

    Have the actual tax repercussions of paying over $300,000 for starters compared to leaving it vacant been explained by an impartial tax advisor, not part of current management?

    Since our board was not able to keep the financial committee functioning, we have fewer minds from whom to render opinions. 

    So I would like all homeowners to look at the possible effects of reckless spending, reminiscent of previous costly failures, and examine all the significant issues on the restaurant proposal.

    For those only interested in sipping a glass of chardonnay overlooking sunset over the valley, try Buckman’s.

    Nice view , good food, saves our association mega bucks, and it would keep money in our community,largely due to the golf course presence.

    The 60% plus claimed that favoring the restaurant last year did not explain that costs were required to subsidize it  .

    They ain’t going away.

    ReplyDelete
  8. One thing I have to give bureaucrats....they sure know how to spend others money, don't they ?

    ReplyDelete
  9. From Marty Winger...to...Anthem Opinions  

    This restaurant proposal is INSANE!

    With the new influx of new restaurants in our neighborhoods due to growth, we do not need another burden to deal with.

    As anyone with half a brain reads the proposal from what has been given to us, it becomes clear that it will fail again, and for the sixth time.

    The answer is obvious, anyone interested in having a restaurant here in our location should reach in their pocket, and take private money to create a private business, an arms length transaction, and prove us right or wrong.

    I believe wrong will happen.

    Dave Weil, along with a "triple net" agreement to operate your folly, will go a long way to make you INSANE sheep divest your desires for your restaurant.

    ReplyDelete
  10. Regarding the restaurant debacle, I think a very important question is WHY does our Board take this position:
    They are going to ask the Henderson City Council to approve a license waiver SO THAT BOARD MEMBERS WOULD NOT BE SUBJECT TO BACKGROUND CHECKS !

    Who and WHY does anyone fear a "background check"???----MAYBE such checks should be run on ALL Board candidates prior to the election?

    ReplyDelete
  11. From Valerie Lapin...to...Anthem Opinions

    Dick,

    Thank you for this! The new owners need to be educated!

    ReplyDelete
  12. Valerie,

    We've only just begun...the story.

    Read Parts Two & Three as well as an Epilogue article within the next few days.

    ReplyDelete
  13. From Merrilee Reid...to...Anthem Opinions

    I just want you to know that I lived for seven years in Laguna Woods village formally known as Leisure World.

    They tried unsuccessfully to run their own restaurant and ended up having to lease it out. 

    It’s running very well being leased out. 

    I find this restaurant option NOT to be in the best interests of the association, and represents a danger to the financial security of its membership.

    ReplyDelete
  14. From Peter Hudson...to...Anthem Opinions

    Must haves for a successful Restaurant:

    Desirable location.
    Ample parking.
    Ease of egress in and out of said location.
    Owner/manager who has a passion for food and experience with cost effective restaurant success.
    Quality plus quantity of both standard and alternative food offerings at a competitive price that must and will exceed elsewhere.
    Always provide friendly excellent service throughout patrons visit and so on. 

    If our Board cannot guarantee its members that at least these items will all be addressed and come to fruition for the SIXTH time, then we have no business considering such a venture.

    Being a community organization, food is one tough business to get into and be successful.

    Its success will require a guaranteed yearly assessment per household, plain and simple.

    I believe many do not want to eat at the same establishment when the opportunity presents itself to go out.

    To some this assessment might be or exceed yearly said dinning out experience.

    We need to ask ourselves, do we want to put this burden onto our fellow residents?

    As much as I might like the idea of crossing the street to dine out within our community, for some reason the number 6 just scares the hell out of me.

    I have given 50-plus years to the food industry.

    I have seen many successes and lot’s and lots of failures during this time.

    My wife and I were happy and quite content to hear that this community did not have a restaurant when we purchase our home here. 

    ReplyDelete