VIA SBINSIDER| July 23rd
The HOA2 board held a public session on Thursday, July 21st, to consider a proposal from ClubLife Management to take over the operation of the golf courses. Currently the golf course operations have been losing copious amounts of money which is subsidized by HOA2 homeowners. The most recent year shows a deficit of about 400K and has been growing in size since the transition from Robson Development. In total, about 13 million dollars in losses and capital improvements have been incurred to date.
Board member Don Grimm presented the vendor selection process to a full house at Mt. View ballroom. Grimm explained that the vendor vetting process had to be done in executive sessions, not open to the public, because the status of current golf course employees was being discussed. Three vendors were considered.
Several members of the public objected to that explanation (executive sessions) and demanded a vote of all the homeowners be held instead of the HOA board members only. The Board Chair told the audience that as elected representatives it was their duty to move ahead in the best interests of the association. Other members of the audience were very enthusiastic with the prospect of professional management and deemed it long overdue. “This is a highly specialized operation and doing it in-house obviously was not working.” said one homeowner.
The board voted unanimously to approve the contract after board discussion and comments from the public. The terms of the contract are a fee of 120K per year with all golf fees being approved by the HOA board. If at such time the revenue begins to exceed costs including the management fee, ClubLife would receive a 15% share of the new earnings. This proposal does not include food and beverages services.
ClubLife currently manages the Oro Valley Country Club, Arizona Sands, and Skyline Country Club in Tucson. They also have a contract with Gainey Ranch in Phoenix