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Troubled CDD Board OKs Budget

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By LAURA KINSLER

The Tampa Tribune

Published: September 3, 2008

HERITAGE ISLES - The Heritage Isles Community Development District board Thursday approved a fiscal 2009 budget with more than $400,000 in losses for its golf and restaurant operations.

The board also voted to not make payments for its golf and restaurant revenue bonds. The first of two $417,000 payments would be due in October.

"We have no obligation as homeowners to pay the debt service," CDD Supervisor Dan Barravecchio said.

Tracy Robin, the CDD's attorney, said the bonds would go into default in 2009.

The community has had three golf course managers, but none has brought its restaurant out of the red. The current manager, Dempsey Resort Management Inc., or DRMI, closed the restaurant for the summer to stem the losses.

"We've done everything we can to cut costs and come up with the best possible solution for you," General Manager Shaun McCormick said. "Unfortunately, that's not a break-even scenario."
District supervisors have pondered leasing or selling the restaurant operation, but they learned that may not be an option. Robin said the district probably won't be able to include the golf course concession cart in the restaurant lease.

While the restaurant has always lost money, the beverage cart on the golf course has been profitable. Without the cart service included, it's unlikely that any restaurant franchise would agree to the lease.

"We have a meeting coming up on Sept. 10, and I think we should dedicate the entire meeting to a discussion of the future of the restaurant and golf operation," District manager John Ricciardi said. "That would include the contract with DRMI."

Dempsey took over management in June 2007. Executive Vice President Greg Riehle said the company would be willing to let Heritage Isles out of the contract if the board decides to go in a different direction.

"Would DRMI walk away from the contract?" Parrish said. "Will you put that in writing?"

Higher-than-average rainfall this summer has negatively impacted the golf operations, too.

"Everything's stacked against us," CDD Supervisor Frank Camara said. "I'm very concerned."

With the new budget, annual homeowner assessments range from $1,565 for town houses to $3,186 for the largest lots.

Reporter Laura Kinsler can be reached at (813) 865-4844 or lkinsler@tampatrib.com.

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