Choices to be Made; Priorities Chosen

An example of road infrastructure conditions, and a lawsuit waiting to happen.

Seen again, and again, and again. A poor design, poor engineering, a poor choice, and no apparent maintenance, e.g. there are plastic wingnuts securing the pole gates that should be checked regularly, since the constant movement loosens them daily. I’ve tightened them after fixing a dangling pole. Oh yes, in addition to again and again, there’s BUMP, BUMP, BUMP, as we enter and leave the Aquarina entrance (all those sunken pavers).

It’s been this way for years, i.e. lettering not centered, not level, and a sign in need of cleaning. “Welcome to Aquarina . . .” Nothing like first impressions.

A listing and off centered sign as the first impression of Aquarina for entering guests. “Gee – it looks like entering a 5 digit pin may topple the whole thing.”

A near 40 year roadway with no maintenance or updating.

It’s been like this for years. Is pressure washing an over budget item?

More of the same.

. . . and more.

Yet still more.

Our roadway entrance, which has been in this condition for years.

Now here’s a crosswalk with clear visibility when entering.

Yes, it’s been this way for years.

Do you see what our roadways should look like? This is one of our Aquarina neighborhoods where maintenance of its roadways is a priority. The obvious contrast of priorities is clear.

We are told that on February 15, 2022, the Board will provide an open forum with limited speaking time for the Residents to discuss the expansion of The Brassie Grille. A lot can be said on this expansion for the Aquarina Community.  It appears that the Board wants to plead their case for the necessity of this HUGE EXPENSE.

BACKGROUND ON REMODELS/RENOVATIONS

I can tell you from being in the real estate business for decades, and having done and paid for renovations and remodels, that any cost we will be told will be much more for many reasons.

  • A remodel/renovation can be a like a Pandora’s Box and a Can of Worms all wrapped into one.  You knock down walls, rip up flooring, take down ceilings, and sometimes you don’t know what you’ll find that can change the whole direction of your project. Do you think that may add to the project’s cost?
  • In this current environment of supplies, labor, and rampant inflation, is anything expected to remain stable?  Projects all over are not on schedule with far out estimates at best when deliveries will be made, and supplies and parts being available.  Do you think that may add to the project’s cost?
  • As the reality of a project evolves, what is on paper can be different from the actual construction and its appearance.  The results can lead to unexpected subtle changes and additions to what was initially intended, as the reality of the project emerges in real time. Do you think that may add to the project’s cost?
  • A remodel/renovation is a fluid event, and its initial projection of cost will be more than initially thought.  The last estimate was around $700,000.  Trust me, the cost will hover at near $1,000,000.  This is an indulgence and an extravagance. There are many other priority items needed for Aquarina rather than this toy.

 WHY AN EXPANSION WITH THE FOLLOWING REALITY

  • The Brassie Grille has always been a pleasant, convenient, and comfort food establishment over these many years.  That was its intention for the community, and it worked.  I see less everyday traffic now at the restaurant than I’ve seen in the past, even factoring “Covid”.  Other nearby restaurants up and down the highway are constantly filled.  Maybe the original business model of convenience and comfort food needs to return.  The current restaurant layout accompanied this business model.  Sure, some better equipment could be installed and work stations adjusted, but an expansion is beyond the original business model, i.e. convenience and comfort food, which worked. Does the Spessard Holland course need a fancy restaurant to draw folks? Their parking lot is always filled with players.  Maybe their business model should be studied and exercised at Aquarina.
  • It’s apparent to most in Aquarina that there is a group of golfers, some tennis players, and social types that have an agenda for their entertainment, and they want to foist their plans to support and embellish this entertainment juggernaut upon the Residents, e.g. The Brassie Grille expansion, regular social events, and golf course embellishments.  Does the whole community participate in this entertainment juggernaut? NO.  Has the Aquarina Community, through its fees, subsidized this entertainment juggernaut for this social segment? YES. Does the entertainment for a community “segment” warrant a near $1,000,000 expense to be paid on the backs of the “whole” community to provide a “theater/stage” for its social events?  Socialization in a community is healthy and positive, but when it’s skewed to a few at the cost of others; there needs to be a pause and a regrouping to formulate a total community approach. 
  • The Board focus is more on entertainment than the work at hand, which is to maintain a safe and secure community in a cost effective manner.  The priority is to establish a daily maintenance schedule, fund the reserves for replacement and repairs (not Betterments, i.e. added costly amenities), be vigilant with keeping Aquarina a jewel in its presentation to the public, and supporting its infrastructure and appearance, which in turn will keep up home and neighborhood values.  This is especially so if the Board’s mantra would be to keep maintenance fees down, which also bolsters home values, and spend less time with spending on projects, i.e. Betterments.

QUESTIONS FOR THE FEBRUARY 15 TOWN HALL

  1. Asked at the last town hall presentation with no answer was:

HOW WILL THIS EXPANSION BE FUNDED AND PAID FOR?

  • An expansion of this magnitude certainly should be supported with a cash flow stream to substantiate its cost.

CAN YOU SHOW A YEAR TO DATE PROFIT & LOSS STATEMENT FOR THE BRASSIE GRILLE WITHOUT SUBSIDIES FROM THE RESIDENTS’ FEES?

  • With a potentially near $1,000,000 expense foisted on the Residents’ backs, it would be prudent to have the Residents have a say on this expense.

WOULD THE BOARD PROVIDE A MEANS FOR THE RESIDENTS TO TAKE A VOTE ON WHETHER TO EXPAND THE BRASSIE GRILLE OR NOT?

WOULD THE BOARD ADHERE TO THE RESIDENTS’ MAJORITY VOTE?

  • There are preliminary costs to determine a design, pay governmental permitting fees, hire an architect for required plans, funds to cover a loss of revenue during construction, etc.

WHAT IS THE ESTIMATE OF THE PRELIMINARY COSTS TO GET THE EXPANSION OFF THE GROUND?

WHAT WOULD BE THE TIMETABLE FROM PERMITTING TO               CERTIFICATE OF OCCUPANCY?

  • Major remodeling, which this would certainly be, requires upgrades to the entire building to meet current building codes, especially for hurricane protection.  Because of The Brassie Grille’s proximity to the ocean, Windstorm Insurance Rates are higher.

WHAT WILL BE THE ANNUAL INSURANCE PREMIUM INCREASE FOR THE PROJECTED COMPLETED EXPANSION?

  • An expanded facility would be expected to incur more employees, more equipment, and more furnishings, etc.

OTHER THAN THE CONSTRUCTION COSTS, WHAT TOTAL COST WOULD BE EXPECTED TO FURNISH THE DINING AREA, ADD APPLIANCES TO THE KITCHEN, AND ADD EMPLOYEES?

  • It would be expected that the Board discussed this expansion project, and it would have been voted on as a Board.

WAS THERE A BOARD VOTE FOR THIS EXPANSION?

IF THERE WAS A VOTE, THEN WHAT WERE THE RESULTS, I.E, THE COUNTED VOTE?

IF THERE WASN’T A VOTE, THEN ALL MEMBERS AGREED?

SUMMARY

It’s all pretty simple.  Aquarina’s infrastructure, e.g. roads, entrance, gates, etc. are all in the need of repair and replacement.  The roads and entrance are nearing 40 years with no history of replacement or upgrading.  Addressing the infrastructure is an immediate concern with no plan in place other than kicking the can down the road (no pun intended) with a “to be discussed mentality”.

Yet, here we are discussing a comfort food restaurant’s transformation into a theater/stage and temple of pleasure for upscale meals, and a venue for parties and social events.  It is not being said that these activities are sinful and unwanted.  It is being said that these activities are not a priority and need to be measured with the demands of the whole community, i.e. addressing an upgraded entrance and roadways, and reserves accelerated in accumulation to be ready for a near 40 year old infrastructure in need of repairs and replacement.

The whole community wins with an entrance and road upgrade, which will notably raise home values.  The Brassie Grille expansion, with the current needs of the community, is a demonstration that our current Board’s agenda for Aquarina seems to show a selfish attempt to satisfy a segment that are more concerned with their personal enjoyment, among its group, than a focus on maintaining and providing a safe and secure community, as what should be the Board priority.

Fix Aquarina with a focus of the WHOLE community.  Keep the Betterments spending of our funds off the table until the infrastructure of Aquarina, which is its foundation, is addressed and fixed. THESE, MY FELLOW NEIGHBORS, ARE THE MORAL AND FIDUCIARY RESPONSIBILITIES OF AN HOA BOARD.

The Brassie Grille – Now Fine Dining?

Well, I’m sure you saw the email spouting the Tomahawk Ribeye entree at the Brassie Grille – for $145. That’s right folks – $145. As I have explained previously, the restaurant business is a tricky endeavor, and fine dining can have expensive consequences. Is the Board over its head and above its pay grade with this current direction for The Brassie Grille? But, when you’re subsidized, like the Residents subsidizing AGI (Aquarina Golf, Inc.), e.g. The Brassie Grille, I suppose untoward business consequences have less impact when its distributed among 450+ fee paying residences. Just saying.

The history of the Brassie Grille has been a roller coaster ride of ups and downs, e.g. employees, food inventory, etc. As I have suggested in this Blog many times, rent out the restaurant to skilled restaurant professionals, and collect the rent. Rather than losing money in attempting to be in the food business, maybe more effort and time could be better used on maintaining Aquarina’s infrastructure and having our fees build a reserve for our future needs, e.g. the repairing and upgrading our entrance roadway, which serves the whole community and not the just the golf folks’ restaurant embellishments and activities.

It’s understood that the restaurant is a necessity and good for the community, but keeping it simple, i.e. a limited yet changing menu, and creative use of the current kitchen, is the best approach if the Board insists in being restaurateurs. Less risk is attained with a business plan that depends on drink sales for most of the profit and not risky food sales, which may and can create profit, but only when it’s done both tastefully and economically, not in a manner to compete with Djon’s Steak and Lobster House on our dime.

Then there is The Brassie Grille expansion – yikes! It will be at least $700K and heading north with costs; I’m sure. Remodels are not done with a set price; I know. Unknown and unexpected issues surface all the time, which means even higher costs. Besides, is now the time to remodel and expand with the country being in a stagflation/inflation situation, with limited labor and supplies?

The Board meeting, which was opened to the Residents for The Brassie Grille expansion explanation ended with the floor open for questions. The first question was “How will this expansion be funded?” The AGI answer was basically “I am not going to address that matter, The Board can figure it out.” Hmm.

I wish the Board would be transparent with AGI finances, and show the Residents the specifics of The Brassie Grille P&L (Profit and Loss). If the restaurant shows a solid return of profit on its expenses, great. Maybe a paced and thought out expansion is justified. However, the only real crowds I see are for special events at minimal or no cost to the patrons. Other than some beverage sales, does the The Brassie Grille actually make a substantial profit on these indulgent parties for a segment of the Community. If so, then show us the receipts to justify this major expansion expense planned for the Residents.

The Board of Directors for Home Owners Associations have the latitude to deal with the Residents’ Reserves in a broad manner, i.e. not only for major repairs and needed infrastructure replacements, but also for “Betterments”, a legal term for capital improvements, e.g. The Brassie Grille expansion. The choices for how the Reserves are spent are at the Board’s “sole” discretion. Hmm. It’s like a Board having an open check book to the Residents’ Reserves.

Remember, Board Directors are voted by the Residents into their Director positions, unless no one runs for a Directorship, then the current Board finds a Resident volunteer to serve. Do you think the Board looks for like minded folks that support the Board’s politics and focus for the community?

Does this sound familiar to what we have here in Aquarina? Hmm.

A Quick Look Back

It’s approaching four years now that the Blog Site, AnAquarinaVoice.com, came into being as a platform for the Aquarina Community to be apprised of news updates, and provide an opportunity for residents to communicate among themselves. The site visits have steadily built over these years where some Posts have seen nearly 3,000 visits, and total visits are approaching 100,000.  All this has evolved from a readership audience of approximately 500 residential units.  The Blog is directed at Aquarina Residents, and has never been directed anywhere else.

It should be noted that the Comments Link in the left margin of the posts is the trigger to establish and release your comments.  By clicking on the Comments Link a screen will open to write an email, which can be sent back to the Blog to be posted and appear in the Comments section for folks to read. As I have explained and promised in past posts, these email comments will never reveal email addresses or names of the authors of the email comments.  However, we have had email comments where the authors requested that their email addresses and names be associated with their emails to the Blog.  Neighborhood social chatter, commentary, and debate is certainly encouraged to have a healthy discourse and a rapport of ideas.

Aquarina has become a vibrant subdivision in the South Beach Area (Spessard Holland Beach Park to Sebastian Inlet).  Social groups within Aquarina have emerged, from those groups that keep among themselves, yet still having an eye on the community, evolving to groups that have become political and have exercised control of the community.  In striving for a political balance, you would expect that these varied groups should work together for the good of all, rather than having one of them focusing more on shaping the community for themselves.  Do we have that balance? Hmm.

It can be said that Aquarina has resort characteristics, i.e. a beach club and private beach, a river facility with access amenities, a neighborhood club house for social activities, a golf course, tennis courts, and a restaurant. These resort facilities can be serious expenditures and needy maintenance items.  In addition, there is the infrastructure that supports these facilities. Finally, the community generates over $2,000,000 a year from maintenance fees.  Wow.  This is all quite a handful. On the surface, you could say professional oversight would be expected. Oh yes, we have an elected HOA of uncompensated Directors and Volunteers who have taken on all this responsibility.  Hmm.

More to come . . .