YORKTOWN UPDATE!
THE FACTS:
January Loss- ($50,266)
February – ( $18,414)
March – ( $34,374)
April – ( $38,189)
Total 4 months ($ 141,243)
A simple projection of 3 x( $141,243) =($ 423,729) for 2024.
Yorktown closing on Monday and Tuesday and the impact of the summer remain to be seen but it is easy to speculate that 2024’s Loss will easily be between $400,000- $500,000 when you add in utilities and insurance.
CONJECTURE:
The new board has a serious matter to evaluate. The first year of operations ends in August and both SCA and WHG can trigger a shutdown with a six month transition period. Let’s be clear about the Amenity Argument. When home buyers chose to live in SCA they signed an acknowledgement of the CCNR’S. That means they accepted the terms and conditions of purchase. There was no distinction as to whether they would use or not use any of the facilities. They acted in their own self interest. The tennis courts and swimming pools and gym and whatever else were part of the deal. That same document they bought into did acknowledge that there would be a restaurant IF POSSIBLE. All previous boards either paid a subsidy to an owner or went without a restaurant because it was never intended nor required that SCA deficit finance 100% OF A RESTAURANT OPERATION. But any board representing you for all practical purposes can do whatever they want as long as they act in their beliefs and vote for what they believe is in the best interests of the homeowners. So that is why elections are important. People disagree. So this current board inherited a 4-3 board decision to create a restaurant and as of August there could be a 4-3 vote to trigger the exit clause. Or they could get an operator to buy out SCA at a fire sale and new owner operate a restaurant on their dime. Or SCA could just accept an annual $400,000-$500,000 deficit. That is their decision and the 2025 Budget will reflect their choice. The previous board , management and leadership knowingly lied to you with their 2024 bogus budget. This board will do better.
A PERSONAL NOTE:
Yesterday I ate for the first time at Yorktown. As many of you know I have said from the beginning that the sooner Yorktown fails the more money homeowners will save. I still hold that view. Early in my career I was for a short time Controller of Hamburger Hamlets out of California so I learned a little about the restaurant business. Yorktown was and is a big financial loser from concept to execution. No need to relitigate that. Just a bad deal for homeowners. As a lunch customer yesterday I ordered soup and sandwich. The vegetable soup was watery and the corned beef sandwich was salty. The service while pleasant was not good. But as a guy who served in the Army and ate field rations out of cans at times I rarely complain about food. I enjoyed my lunch with friends but would not become a regular.
Later in the afternoon I met DA COACH and SWAMP at Buckmans for beers and Buckman’s had live music from the 70’s. It was so much fun. Yet I digress. I have made lots of new friends as a result of the blog and DA COACH and others have urged me to write more so I’m writing this one for the team.
I will write but not frequently. Again I want to thank so many of you for such kind words and your efforts as hopefully through this last election the new board will forge a new direction for SCA. They have their work cut out for them. Today they set their first agenda for next Thursday’s board meeting. That will be interesting.
Until next time…Robert