The Desoto Club suffered severe damage during a typical Village cold spell, when it lost its power feed from Entergy. At the time John Mayhood was the POA Superintendent of Buildings and Maintenance. As I understand it John and Linda Mayhood came from the north (Indiana), he was a builder, he knows what can happen to an unheated building during a coldspell. Yet the pipes froze, burst, and then thawed, and in the act of thawing flooded and destroyed the interior. A little negligence and nepotism can go a long way.
Before the damage, the Desoto club was already in a class with the Balboa Club, there but underutilized. Twiggs and the Board marched out a plan after paying $15,000 for consulting on what to do. The first version was a combined restaurant, golf shop and pool combo.
The pool didn't happen, but the Troon rep said if rebuilt "it would be a game changer." When this writer pressed Twiggs for "feasibility" support for the project, he said he had a study but it was not viewable because it belonged to someone else and was 'proprietary."
Feasibility written for someone other than the project owner is not a supporting feasibility study.
But, the Board pressed on, and when this writer pressed the Board and Weiss specifically about who got fired for negligence to adequately protect the building? He took offense and was firm with "no one was fired." Now we know why. And it also helps explain why the Board was in such a hurry to rebuild the club that Twiggs admitted would not cash flow for at least 4 or 5 years.
So, the building was built at a cost just north of $2.5 million, with just $376 thousand of support from insurance proceeds. A Chef "someone or other" was hired and within her first year she wanted out due to low use. The POA desperate to keep her gave up concessions, but in less than 2 years she was gone, and the Desoto Club with over $2.2 million in new money invested in it sits there underutilized as it did before the flood, but at much greater cost.
And, the Village now can look forward to funding 2 pensions (John retired in 2015 - and wouldn't we like to know how and why) and continue to mourn our $2.2 million loss.
Lesley's invite to explore for common ground on 3 subjects she chose to talk about is disingenuous at best and clueless at worst. She, management, and the Board totally misjudged what this Village wants. There is no common ground, and her presumption that one of her 3 topics is what we need to hear is consistent with her off base assessments. Time to go Lesley - don't let the door hit you on the you know what on the way out.
If you want another option, then: 1. Publish your employment agreement and your last 3 annual reviews; 2. deep six the Board Member Pledge (and release all existing Board members from the pledge); 3. open the books; 4. provide access to all owner e-mails; 5. open the website and quarterly newsletter to uncensored contribution, and start working for the greater good of Hot Springs Village.
The ill-fated, mismanaged and nepotistic venture into the Rebuilt Desoto club seems to the be the precipitator of the POA's belief in their FOOD AND BEVERAGE management skills. Although without a full "Control Audit of our Accounting Policy and Practices, I'm skeptical of our Annual Audited Financial Statements - never the less in Calendar 2016 the POA lost $110 THOUSAND AND IN 2017 they lost $607 THOUSAND in FOOD AND BEVERAGE. Not an encouraging trend. How much more can we afford to lose with these people in control?
How About What Was Plastered on Each Village Digest Last Year?
"Creating and Sustaining Value Together"
Restaurants, New Housing Growth, Lot Sales? It is easy to create and sustain nothing of any consequence, euphemisms but no results!
There are no cheap fixes; POA demagoguery is not the answer
Work all the bases to bring about real change.
We must deny the POA and adjust the Board!
Late in 2014, Lesley Nalley was asked what she thought about Board Member Jeff Adkins urging the Tax Assessors to adjust lot values in the Village to reflect the post Crash reality - her answer(?) "Isn't that crazy"? She and the POA has your best interest at heart? You should be over taxed? The higher assessed values might sway potential buyers to overpay for a lot? She didn't want the lots on the POA books to be subject to a value write down - would rather overstate financial values?
Twiggs was in charge and he trotted Lesley Nalley out in the January and February 2015 Board Meetings with financial reports that wildly predicted that we were going to run out of money and not make payroll if the Owners didn't vote for the two tier assessment system. After the Vote was in and the POA managed to convince the non-resident owners to vote for the doubling of the homeowners' assessment - her reports of such dire straits disappeared - even after the law suit was filed and the POA agreed to escrow the higher portion paid.
As CEO, Lesley Nalley, was successful in moving the Annual Meeting of the POA from April to February in 2018 and 2017. Who ever heard of any Corporation having their annual meeting before the Audited Statements are completed, delivered and distributed with adequate time for review by stakeholders. What reasonable explanation can there be?
The Organization's interest is in providing insight with a conservative view that comports with the American Way envisioned by our Founders. LET US HEAR FROM YOU AT CGV@AMERICANAWHEN.COM
Clark is a Graduate of the University of Florida, (1970 BSBA in Management and Finance), a former (26 years) commercial banker (22 years of which were in major markets in Florida) and a graduate of The University of Memphis (2006 - Master of Accounting).
Yet to be contributed are articles that will address some facts of historical interest that will support our theme and assertion that the EXISTING POA MANAGEMENT, and their CMP are beyond their capabilities and represent the greatest danger the stakeholders in Hot Springs Village properties have ever faced.
Sign up to receive updates!