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Restaurant discussion is late in the meeting 

MAY 25 - 1:30 PM - 5 PM
1.Resolve that time is of the essence to return the restaurant to operation to bring SCA back into compliance with CC&Rs provision 7.2(b). 

3.For discussion and possible action at the June 25 meeting, direct the GM to locate an independent commercial agent/ real estate broker/agent/with expertise in bars, restaurants, gaming and the local market to potentially negotiate a lease, utilizing the recommendations and expertise of residents to assist her in her search.
4.If the GM needs outside expertise to complete the analysis and report by June 9 for the June 22 Board meeting, authorize the expenditure of up to $2,000 for this purpose. This does not have to be the same specialized agent who will be needed to eventually negotiate a lease.

5.Board approval is requested to specify that at least the following options must be reported for the Board’s consideration at the June 25 Board meeting. 

a. Option 1 Lease space to a tenant for $1 rent

b.Option 2 Restaurant Subsidized by Gaming using a licensed route operator or a licensed tenant

c.Option 3 Restaurant using a required food and beverage minimum 

d.Option 4 Non-profit Culinary School operated by a newly chartered SCA Culinary Club

e.Option 5 Re-purpose the space into multi-purpose and activity rooms

6.Direct the GM to complete by June 9, 2017 for Board review, and publish on June 16 in the Board Book, the analysis of the selected options, including pros, cons, costs and recommendations, including benchmark comparisons with the local comparables, The Willows at Sun City MacDonald Ranch and three restaurants owned by Sun City Summerlin: 5 Star Tavern, Tavern at the Falls, and The Summit.

7.Board should specify the high-level parameters to be mandatory in any lease.

8.Direct GM to recommend RFP parameters for potential tenants using the suggestions below which came from input from residents and the historical record of SCA, and ways to ensure an open, fair selection process. The GM is directed to report costs and justify how her recommendations benefit members. 

Restaurant features suggested by members
a.Reasonably priced food and drinks especially with discounted prices during daily Happy Hour.
b.Menu items like common café/tavern fare with variety to accommodate taste for ethnic diversity, eg., burritos, chicken teriyaki, lasagna, etc.
c.Food or bar service during hours when the most people are there for other activities
d.8 hours per day, six days/ week 
e.Offer take out menu.
f.Compete for the catering to SCA Clubs; staging area for other caterers.
g.No outside catering jobs.
h.Tenant is responsible for maintaining and replacing the equipment.
i.Tenant is responsible for utilities.

Restaurant Space Study
Nona Tobin’s Recommendations for
Board Direction to the GM at the May 25, 2017 BOD Meeting

Time is of the essence as the restaurant has been closed 16 months, and the cost while it is closed is $4,000+/month, excluding the cost of reserving for idle equipment. It is contrary to our CC&Rs to discontinue operation of the restaurant without 75% of the Owners written approval. The board’s role is to set policy direction and identify priorities to ensure that the Association is in legal compliance and acting solely in the best interests of the Association and its members. The GM manages operations within Board-defined parameters. The Board needs to revise and be more specific in its direction to the GM to return SCA to compliance with our CC&Rs and to get the job done, i.e., a restaurant that meets owners’ needs is expeditiously put back in operation using on an open, fully disclosed analysis of the options. 

Although the specificity of instruction to a GM is not normally needed or appropriate, it is necessary in this case because 1) the job is not done, 2) SCA is not in legal compliance, and 
3) the current method being employed by the Board and GM offers no promise of relief. 

It is my recommendation that the Board vote each of my recommendations up, down or to modify individually, rather than reject or table this entire report for whatever reason. The GM cannot do her job if this Board does not do its job.

 CC&Rs  7.2 (b) Continuous Operation. 

The Association shall maintain the facilities and equipment within the Area of Common Responsibility in continuous operation, except for any periods necessary, as determined in the sole discretion of the Board, to perform required maintenance or repairs, unless Members representing 75% of the votes in the Association … agree in writing to discontinue such operation.

  2NRS116,3103(2)(a). The executive board may not act to: (a) amend the Declaration.