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CDD Hopes To Lease Restaurant

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By KENNETH KNIGHT

The Tampa Tribune

Published: September 17, 2008

HERITAGE ISLES - The Heritage Isles Community Development District board hopes to learn next week whether it can lease its clubhouse restaurant to help stem financial losses.

The five-member board of supervisors has scheduled a workshop for Sept. 24. By then, the supervisors hope to have an answer from their bond counsel on whether leasing the restaurant is an option.

The district supervisors are seeking a solution to Heritage Isles' foundering golf and restaurant operations because the community is in danger of defaulting on its bonds.

The club restaurant always has lost money and golf play there has gone down this year.

During a lengthy meeting last week, board members expressed frustration at the lack of direction provided by the consultant, Mike Williams.

"I feel like there is no clarity," CDD board chairman Steve Stark said. "He is trying to protect the district and status of the bonds. Why is Mike not more proactive to tell us what to do?"

Tracy Robin, the district's attorney, assured the board he would make every effort to get a more definitive response.

If the district leases the restaurant, board supervisors would like to include the profitable golf course concession cart as part of the deal to sweeten the pot for any interested restaurant franchises.

The beverage cart, a vehicle that roams the golf course, has brought in $114,000 in revenue for the year, district manager John Ricciardi said.

Supervisor Dan Barravecchio said a second alternative might be to hire competent personnel to manage the restaurant and golf course as CDD employees.

While all of the district board members would prefer leasing the restaurant, they said hiring salaried employees with backgrounds in restaurant and golf course management would be cheaper than turning over operations to other management companies.

The current manager, Dempsey Resort Management Inc., closed the restaurant for the summer to reduce the losses. It's the third golf course management company hired by the district in an attempt to get the restaurant and golf operations out of the red.

Pebble Creek Golf Club owner Bill Place made a presentation during the board meeting to express his interest in taking over Heritage Isles' golf club.

He said he liked what he had seen of the golf course but was worried about the $4 million in bond debt service the community is dealing with.

Place, who has run area golf courses and driving ranges for 15 years, said he was unable to put a dollar figure on how much he might be willing to spend for the golf club without doing more research.

Place said he expected there would need to be a level of investment for improvements similar to when he bought the Pebble Creek course in 2005.

"I'm ready for a new project," Place said. "My wife and I own the company. We don't overextend. We like to do things right.

"It would be great synergy."

The board members said they have no plans to sell the golf club. They would be willing to review a proposal, but any plans to sell the club would likely require a competitive bid process.

The supervisors said they agreed to hear from Place because he had a written a letter to the district expressing interest in wanting to buy the golf club.

When Place left the meeting, Barravecchio told his colleagues he found Place's interest in the club distracting.

"It's not helping us," Barravecchio said. "Why would we do that sell the golf club if we are able to restructure the bond?"

Last month, the board approved a 2008-09 fiscal budget with more than $400,000 in losses for its golf course and restaurant. It also voted not to make $278,000 in bond debt service payments due by November.

Board members say the CDD does not have the money.

If the bonds are not paid, they are likely to go into default next year, Tracy Robin has said.

Reporter Kenneth Knight can be reached at (813) 865-4842 or kknight@tampatrib.com.

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