By Cheryl Dowden, March 14, 2021
HSVPOA/Greg Jones Restaurant Contracts
Tucker, thank you for your willingness to address some of the community’s concerns. As you are probably aware, there has been a lot of speculation online about three of the HSVPOA restaurants: DeSoto, Isabella, and Granada. We have been made aware that there are three new contractual lease agreements between the HSVPOA and Greg Jones of Xplore Restaurant Group, LLC.
Note: My questions are in black and Tucker’s responses are in purple.
Can you share with us the length of the leases?
Chair Omohundro: The leases are for three years, but if Mr. Jones decides to break the lease with any restaurant, we have the ability to take them all back at our discretion.
Does the HSVPOA have a standard restaurant lease agreement and if so, was this the contract used? If not, why not?
Chair Omohundro: Yes, but due to some exceptions as mentioned above, we had attorneys to review and approve the lease.
What prompted the POA to take this path?
Chair Omohundro: This has been thought about for a while. It did get delayed because Charles King wanted to do his best to bring down the subsidy to a reasonable expense. Our subsidy for food and beverage last year was over $800,000. Greg Jones contacted us shortly after Mr King resigned and asked if he could meet with us. His proposal was to take over all POA operated restaurants. This did not include the ones that are currently leased. The board asked John Paul to research this proposal and bring the board his recommendations.
Was this a decision that was made solely by Interim General Manager John Paul, or was a Board vote taken?
Chair Omohundro: Answered above with one exception. The board did vote on this. The vote passed 4-1. Kirk Denger voted against.
If a Board vote was taken, did the Board take into consideration the fact that five Board seats are due to be filled in the upcoming election and these electees will be seated in April?
Chair Omohundro: We did. All board candidates were invited to the executive session and heard John Paul’s presentation along with the board. We did this because we wanted their input as possible future board members. Before they were excused from the meeting, I asked each one of the board member candidates, excluding the current board members, if they were in agreement with us moving forward. They all said they were.
Can you give us a ball-park figure on how much money the POA anticipates saving with Greg Jones running the three restaurants and also, what are some of the areas where savings will be realized other than the obvious savings of payroll, utilities, etc?
Chair Omohundro: If Mr. Jones can be successful with these restaurants we should save $500,000 to $600,000 a year vs last year.
Can you share any further details of the lease contract with us at this time?
Chair Omohundro: The lease requires Mr. Jones to pay all utilities. (Electric, water, sewer and sanitation) The POA will pay taxes, insurance, up keep of the buildings and equipment that exist at this time.
How do you anticipate this contract with Greg Jones helping the Village continue to move forward in a positive manner?
Chair Omohundro: The board and the GM’s goal is and has been to cut our expenses. We cut approximately $700,000 in payroll alone within the first couple of months. Unfortunately with minimum wage increases ($500,000) and insurance increases ($670,000) those savings did not show in the budget. The list of savings is growing quickly.
Is there anything else you would like to share with the community?
Chair Omohundro: Yes I would like to explain how decisions like this can not be discussed with the members as we try to do where we can. When employee jobs are involved in board decisions it should be confidential until a final decision is made. Unfortunately, shortly after Greg’s board presentation it was leaked to the public. The food and beverage manager resigned because of this. I think many can understand the issues we could have, if we handled this any different. Sometimes you actually have to rely on the people you voted in to make these decisions.
Thank you again, Tucker, for your transparency in sharing your thoughts and some of the details of this agreement with the community.
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Click here to read the HSVPOA/Jones Contract Announcement.
Click here to read the Greg Jones Interview.
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Thank you for reading. If you like, please comment below. We love to hear your opinion, but comments must be made using your first and last real name, or they will not be accepted. If you would like to submit an article for publication, please contact us through this website. Be sure to bookmark this website. Click here to visit the Hot Springs Village People Facebook Group.
Doug Arfsten
03/14/2021 — 9:18 pm
Really appreciate Mr. Jones being willing to take over the leasing of three restaurant and hope that he is successful. I do not believe the POA should be in the restaurant business nor should we be supporting them with our assessments. Great move by our Interim General Manager and follow though by board members to make it happen.
Kirk Denger
03/14/2021 — 11:33 pm
How can 4 Board members vote for a contract they have not even seen. I certainly will not vote, nor do I think it prudent for anyone to vote on undisclosed Commercial lease agreements. This is the careless modus operandi of the 2020 Board.
HSVP C
03/15/2021 — 1:13 am
In order for comments to be posted, they must be posted with a real first and last name. Thank you. – Cheryl Dowden
Al Lipson
03/15/2021 — 8:33 am
Why does the board have to be chased for information, rather than them proactively come forward with it ? Food for thought.
Diana Podawiltz
03/15/2021 — 9:56 am
I certainly hope all F&B lease contracts contain a provision whereby proof of payment of payroll taxes is provided to the POA & tracked. We’ve had to “eat” some expensive back taxes in the past to preserve our liquor licenses.
I’m pretty sure Tucker is referring to property taxes I. His answer.
Dave Johnson
03/15/2021 — 6:47 pm
According to Kirk Denger, the board never read the contract and voted for a contract they did not read. Very concerning.
Gene Garner
03/16/2021 — 11:13 am
Because of Twiggs wild and unrealistic promises (DeSoto Club -the million $ restaurant) and the continuing losses, I’m suspicious of any new plan to provide dining facilities inside our gates. It’s obvious most Village residents don’t care to eat outside their homes and as a result the customers aren’t there to support more than 1-2 full-service restaurants.
Do we remember the Troon experience and their “fine dining” mentality? Tanner’s moved out of HSV because they were forced (among other things) to serve breakfast-which they knew would lose money. They are now outside, profitable and competing with the remaining dining establishments that we subsidize.
I don’t know how successful Mr Jones’ three businesses are, but many financial experts agree you only expand your operation where the market will support it and you don’t compete against your already established businesses. There are only 14,000+ customers in HSV and so far they’ve shown no inclination to eat out very often, as evidenced by the poor patronage of our restaurants–and I don’t think that will change.
I wish Mr Jones good luck in his new venture, but I have this feeling I’ve seen this movie before—Gene
Tom Blakeman
03/17/2021 — 7:43 am
Gene is correct. We do not need multiple sit down, dine in, table service (with tip needed), fine dining, restaurants. While I certainly hope this new deal is successful and Mr Jones nails it (for himself AND us), I believe all we need are one or two FS restaurants in the Village supplemented with snack and sandwich, very limited menu, fast food type venues in the rest of the locations much like Magellan). Even then, some restrictions on golfers bringing their own food and drink onto the premises should be implemented. The roving drink and snack cart idea should be pursued as well.
George Tolbert
03/18/2021 — 7:13 am
Restrictions on golfers bringing food and drink? Please explain how that would ever be enforced. I guess since the marshalls are not allowed to “marshall” anymore and can no longer carry ice due to covid I guess they could be turned into food and beverage police and stop and search every cart with a cooler. That would really speed up play. A beer and a ham sandwich is not hurting any restaurant.
Robert Busse
03/17/2021 — 5:18 pm
It seems to me, that for the past several months Director Kirk Denger has adopted the role of BOD Contrarian or Pessimist. He has opposed a very large majority of the votes our Board has taken. The remaining Directors, after lengthy discussions, seem to be on the same page. It seems he always finds some strange or insignificant item to present that causes him to oppose what is being done.
His latest beef is that the lease agreement has not been printed on paper, so the Board can read it. We are paying one of the best legal firms in the region to draw up and protect the BOD and HSV from getting in trouble. Both the Board and Mr. Jones know what the general term of the leases are and have agreed. Why should they not go ahead and shake hands and move forward? The whole deal is not binding (legal) until the leases are signed, and either party can back out, before signing, if they see something they do not like. This is not like Washington DC where they have to “pass it, so we can find out what’s in it!”
I will have to strongly agree with Gene Garner and Tom Blakeman. The food service situation in HSV has been a loosing proposition since very early on, and unless Mr Jones has a magic
wand or idea, history is not on his side. Sooner or later, the POA will be taking back these locations. I will be cheering for his success and supporting him where I can though.
Susan Posner
04/05/2021 — 2:21 am
The “devil” is always in the fine print. It would serve the board current and future to learn all details and not generalize before voting on. Especially given past POA failures in the food and beverage endeavors. POA lawyers that draft the contract do so for the specific legality of it, but the board has fiduciary duty of loyalty, care and good faith of members interest. They are held to a business judgement rule and that is not a “handshake” and are liable for any breach of fiduciary duties. I think personal comments toward a long term resident and board member for their representative duties aren’t necessary to make opinion on a subject that is before the POA. Thank You.