On Wednesday 12-11-19 the PSA board had a closed meeting to review our future with C&O. Doc O’Neil was present to review his plan to move forward this winter. Details of that action will be seen and really is not the reason for this update.
A big part of this WHOLE THING is financing. At the time of this meeting it was reported we will hear from Mutual of Omaha in the morning (Thursday, 12-12).
I hope you are all aware that we are asking them for $1 million.
Also note we voted unanimously on 11-10-19 to bring C&O and Sahm’s on board with without immediate financing. It was also decided to announce and go forth with C&O plan to start their membership drive, again without knowing our financial future.
Please be aware that the Executive Committee and Treasure are the main cogs in this wheel. They do all of the work for us to keep us going down this path of PSA ownership of the Restaurant and Golf course. Sure they reach out for help and always explain and ask for questions in the meetings, very open to all of us I feel.
I have attached a few of the emails that explain where we stand at this time and our next steps. I have bulleted each email to denote the timeline.
- 12-12-19 1:15 Gail Miller, Treasure
I’m so sorry to have to say that we did not get the loan. I felt so positive about it but . . . In the end, they could not get past the negative cash flows of the Club. Back to the drawing board. We will find a way!
- 12-13-19 10:15 B. Larson, President
While the news yesterday was not what we were hoping for, I think it’s in our best interest to keep moving forward with the partners we have selected. In a very short time, C&O has kicked off the MMC and premium golf memberships, generated revenue in a critical time, begun to clean up the premises, made key personnel decisions, and worked with Gail on the transition.
Originally we had agreed to sign the contract with C&O/Sahms on the condition we would secure financing to cover the losses. I am recommending we move forward and sign the contract immediately. We will be meeting with Doc and the CFO today at noon to talk about how we will work through any short falls. It will include ideas for other funding or ways to generate revenues. Once we know more detail, I will communicate those plans to everyone.
I think it’s important to remain positive and supportive. With Cohoat & O’Neal’s leadership, our future can be bright again. While Sahm’s will not officially be here until April, they have already been on site this week to begin the work so they will be ready to hit the ground running.
I am asking for each of you to reply back either yes or no to move forward with the contract by end of today. Thanks in advance for your continued support.
*My vote (John Teising -WEI Representative) was “Abstain” for a couple of reasons:
1.I was on the road working and trying to follow all this with poor cell reception.
2. I was hoping for an open discussion in a physical meeting. I like C&O and Sahm’s but without known financing, voting either way on the signing of a three-year contract felt too uncertain for me to do YESTERDAY. The next email follows.
- 12-13-19 12:47 B. Larson, President
I have heard from most of you and we now have a super majority to move forward and sign the contract with C&O.
The meeting today with C&O went well. We have a number of things in the works to secure additional funding. C&O will be looking at cash flows through the end of next year. Without accounting for any additional revenues (restaurant and golf), we have enough cash to get us to the end of February which gives us time to seek other sources of funding. Keep in mind we will continue to see revenues from MMC and premium memberships. Our big push will be taking place in January. In addition, we are looking at a campaign for the “activity” memberships in January. There are number of F&B events that will also be contributing to our revenues.
*WE 1 residents, if you have a comments, please feel free to contact me directly. I am always open to hearing from our residents and attempt to represent our village responsibly.
Water’s Edge I Representative