Estero golf club members make counteroffer to Bonita Bay Group

By LAURA LAYDEN Naples Daily News July 23, 2009


A counteroffer is in for the Shadow Wood golf club in Estero.

A community advisory board has given the offer to the Bonita Bay Group, but it’s not sharing the details with other club members or the media.

Bill Pritts, a board member, said he didn’t want to comment on the offer, citing “sensitive negotiations” as the reason.

A few weeks ago, the advisory board received a “term sheet” from the Bonita Bay Group, spelling out the details of its offer to sell the club to members.

The developer is looking to sell all seven of its clubs as it fights bankruptcy. It’s actively negotiating with members in several communities including Mediterra and Bonita Bay, which have also received term sheets over the past few weeks.

In its offer to Shadow Wood members, Bonita Bay Group asked them to put up $6 million in cash for their club and to assume all the club’s liabilities, including membership deposits.

At one time, Bonita Bay had a 30-day refund policy for deposits when members resigned. The developer stopped the policy abruptly last year after seeing a surge of resignations. Some members are still fighting to get their money back.

Greg Lewis, a resident and community representative in Shadow Wood, said the offer has been discussed with the Bonita Bay Group and there is “cautious optimism” that a deal will be negotiated.

“It’s quite possible that they would accept it or there may be a counter to the counter,” said Lewis, a local Realtor. “It’s just like the negotiations in the sale and purchase of homes.” Sometimes you go through two or three different counters before the buyer and the seller agree on the price.

He did not know whether the counter offer includes a cash payment to the Bonita Bay Group.
He said the advisory board may hear back from the developer on its counteroffer this week. If not, then maybe by Monday or Tuesday.

A final agreement could be reached within the next two or three weeks, Lewis said. He said members should know by August whether negotiations between the advisory board and the developer are a “go” or “no go.”

Meanwhile, a new membership plan has been developed for Shadow Wood that would go with the change in ownership. Members will be asked to vote on the plan.

Under the proposed plan, golf members would pay $5,000 to join the new club. Tennis members would pay $1,000 and social members would pay $500, Lewis said.

New members would put up more money.
“There would be dues paid on a quarterly basis,” Lewis said. “The dues structure is not determined.”

He said for members to join the new club they would have to waive any claims they may have for deposits they gave to the Bonita Bay Group. That way the new club doesn’t taken on that liability.

Deposits collected by the new club may be partially refundable, but not right away, Lewis said.
“Ideally, we would like somewhere between 750 and 800 of the current golf members to accept the new membership plan,” he said. He said he doesn’t know how much money needs to be collected up-front to keep the new club operating smoothly.

“We have some very bright CPAs who are on the advisory board,” he said. “I’m sure there is some number it is hoped we will reach in order to have economic viability. I’m not sure what that number is.”

Advisory committees for other Bonita Bay Group communities expect to submit their counter offers to the developer in the next week.

Richard Schmidt, chairman of the Mediterra Advisory Board, said his board will make a counter offer within the next few days. The offer is still being finalized.

“The members are really the ones that are going to make the decision,” Schmidt said. “Our job is to bring them options.”

The developer has asked Mediterra’s members for $8 million in cash, along with requiring the new club to assume all of the liabilities and debts.

The liability of the member deposits is estimated at $50 million or more and there’s also the liability of more than $15 million in debt for a community development district, created to build Mediterra’s roads and other infrastructure.

Michael Lissack, a Mediterra resident, said he’s heard if the membership votes down the deal struck between the advisory board and the Bonita Bay Group, a small group of members could purchase the club on its own.

“People are worried about being excluded,” he said.

Schmidt said he’s heard of no such plans.

“If there is a group that would come forward to buy the club I’m not aware of it,” he said.