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Heritage Isles to part with management firm

The CDD board tackles debt with Lennar Corp. and votes to terminate its contract with S&S Golf Management.

By EMILY NIPPS
Published August 28, 2005

HERITAGE ISLES - Poised to take control of their own community once Lennar Corp. exits the Community Development District board, Heritage Isles residents took a few more steps toward freedom at last Wednesday's CDD meeting.

Among the first items on the agenda? Getting rid of the company that has been managing the debt-ridden golf course and restaurant operations.

The board voted to terminate the contract of S&S Golf Management within 60 days, and a Heritage Isles ad hoc committee has already accepted bids from other companies interested in taking over the failing golf course and restaurant business. The CDD board is hoping to have a new company and business plan in place by October.

For years, Heritage Isles homeowners have been upset about paying high CDD fees, in part because the country club's golf course and restaurant business has not generated enough business to support itself, let alone its millions of dollars of debt. The CDD board wants a new business plan for the club, along with the management company's willingness to stand behind its bottom line.

S&S Golf Management was also invited to submit a proposal and new business plan, but didn't seem interested, said Steve Hluchanyk, who is coordinating the search for a new management company.

That's not true, said Helen Sarver of S&S, who attended Wednesday's meeting.

"We did not know if it was a genuine request (to submit a proposal) or not a genuine request," Sarver said. "Does the board sincerely want a proposal and will it seriously be considered?"

It was unclear whether S&S would submit anything by the Sept. 7 deadline, and the CDD board went ahead and set meeting dates to hear proposals from other companies.

Ad hoc member Buddy Brannen said he was relieved that another major issue involving debt is close to being settled. Lennar has all but signed off on paying down Heritage Isles' bond debt from $8.3-million to just over $4-million. Also, the developer has agreed to take care of other problems, such as potholes and other flaws in the roads, before it turns the community over to residents.

Brannen presented a budget at the meeting to show what the spreadsheet would look like if Heritage Isles separated its community operations from its golf and restaurant operations. That's what Heritage Isles residents hope to eventually do, he said.

"Everybody is being very cautious, not only because we're getting ready to take over the company, but because we're also looking at changing the structure of the company," Brannen said.

Lennar employee and CDD chairman Bill Kouwenhoven resigned from the board on Wednesday so he could help negotiate the terms of Lennar's exit with fellow CDD board member Steve Stark and other homeowners. Under Florida law, a CDD board member cannot discuss potential CDD agenda items with another board member outside of a public meeting.

Stark will take over as chairman.

- Emily Nipps can be reached at 813 269-5313 or nipps@sptimes.com

[Last modified August 27, 2005, 11:05:06]