POA Reaches Restaurant Agreement with Kogut

The POA had recently suggested it was in negotiations with someone to take over the Balboa Club food and beverage facilities. On July 7, 2021, at the HSVPOA Board Discussion Session, Interim General Manager, John Paul, and Director of Operations and Projects, Stephanie Heffer, updated the board with an announcement. Brandon Kogut will assume the operation of the Balboa food and beverage facilities on July 18, 2021. The Balboa Golf Course is scheduled to be closed on July 19 and 20, 2021, making this a good time for the transition. (Edited: The HSVPOA Calendar says Balboa Golf Course is closed on July 19 and 26, 2021.)

Director of Operations and Projects, Stephanie Heffer said, “we just signed an agreement with Brandon Kogut who was with Charlie’s Pizza to operate the food and beverage element of the Balboa Club.” Kogut will run the downstairs bar and upstairs kitchen facility. This agreement was signed on July 2, 2021. Kogut will initially take possession of the bar area, upstairs kitchen and has plans to grow into the cafe area and “maybe even at some point, those larger rooms in the back. We just don’t know,” explained Heffer.

“He’s really excited to get started and I think it is a great thing for us.” This agreement puts these facilities into the hands of “someone who is good” at food and beverage service. “He has a proven track record,” stated Heffer.

Paul said, “He plans to do some improvements of his own, downstairs – building a deck and expanding the bar on his nickel.” Paul promised to bring more information to the July 21, 2021 Board Meeting. Kogut may address the Board at the July meeting.

Director Tucker Omohundro said, “This lease is basically in accordance with every other [food and beverage] lease we’ve done and everything is the same.”

Paul and Heffer agreed that the Kogut lease is the same as the other restaurant leases.

Director Bob McLeod asked, “all of our leases are the same for Mulligans and all of the Jones’ restaurants?”

Paul responded, “they are basically the same. The only difference is that at the facilities where we have separate meters, they pay their own utilities, and at the facilities where we don’t have separate meters, we [POA] pay utilities and they pay the equivalent of what they would pay [in rent]. That is the only difference.”

McLeod stressed, “they all pay the same amount?”

Heffer responded, “they are somewhat based on square footage so a larger space is going to pay more money, of course. What John {Paul} is saying the ones that have a separate meter pay the utilities in lieu of rent. The ones that don’t have separate utility meters, pay rent and we pay utilities. So they cover their costs.”

McLeod repeated, “but they are all basically the same?”

Heffer responded affirmatively.

Omohundro said, “they are all the same. One pays their electric bill for rent and one pays the electric bill to the electric company.”

Heffer said, “all the requirements surrounding equipment or building maintenance or repairs to things – all of those are the same across the board.”

Omohundro explained, “the only cost difference is if their electric bill is higher. They pay more rent if their electric bill is higher.”

Previously in regard to Greg Jones’ restaurant leases, Omohundro said, “The POA will pay taxes, insurance, upkeep of the buildings and equipment that exist at this time.  

By Cheryl Dowden, July 7, 2021

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