FABUQ's
Appendix to Exhibit D...FABUQ (Frequently Asked But Unanswered Questions)
1. Contingency Options
What are the options if the forecast revenue streams during the transition and early years of the new facility fall well short of projections?
2. Failure to Maintain Loan Covenants
What happens if the club breaches loan covenants?
3. Member Liability
Should the club become financially compromised, what are member obligations?
4. Why not Sell the Land?
As noted in an earlier comment, why has the LRPC not considered selling all the land into an integrated project and lease back land on a long-term basis? What would be the debt position if it was done this way?
5. How much of the USD20m in consulting costs is already committed?
6. Kenrikin USD100m
How is this calculated? What rights pass to the owners of the condominiums for 50 years and what buyout contingincies need to be made to reclaim economic use of the land?
7. Borrowing Capacity
With encumbered assets and USD 100m of debt, what capacity does the club have to borrow additional funds to meet contingencies?
8. Cost Base
A detailed breakdown of employee costs is required to provide credibility to rhetoric concerning cost cutting.
9. Shadan Hojin
Is the shadan hojin status jeapordised during the transition? What is the benefit of maintaining this status?
posted by Unlock at 6:57 PM
5 Comments:
In my mind, all of the above are genuine reasonable questions to ask.
One point looks rather easy to me to answer & should be part of any business analysis. This relates to any potential fall in projected revenues.
I would like to see this question answered and to see the resultant impact on the whole proposal. I just cannot see any other way for revenues to go but DOWN as I believe there will be less people tracking all the way to the proposed temporary premises.
Maybe I'm wrong but that still should not prevent members being shown how the allover proposed numbers look if the revenues go down.
We must have total transparency with this exercise.
One item that is certainly not covered in the brochure is the voting process.
The level of activity and lobbying of committees and chairs is one thing but the process must be clearly defined and transparent and at the very least provide for:
Anonymity
Impartial third party count
Why was the process and quorum requirement not defined in the brochure?
I went to one of the Meetings and came away completely satisfied. I think the people woh have worked on this have done a terrific job as volunteers. I was especaally happy with Gerry's talking. If he answered all of hte questions it would have been best. Anyway, time to close down this blog I think.
I suspect now is actually the time to keep the blog going.
Basically this is an organisation that has been run out of a petty cash tin for so long that all it knows is to spend every cent that lays there for a day or more.
Just because it now has USD 100m of debt does not mean that Club management will change its ways.
What the Club actually needs is a business culture and a strong watchdog. Sound business managemenmt not a bunch of do-gooders and aspirants for higher office.
The last time anyone tried to tell the Club it was a profligate bunch of self-centered and self-interested aspirants for a part in Brokeback Mountain, he was hounded out of court.
The project seems to be moving forward. The only way to guarantee the Club does not go the way of the DoDo is to introduce some sound business management principles.
I agree. Keep the blog. It looks like a done deal for redevelopment approval. The promises are bright and shiny but the results may well be disasterous. This is not a good gamble. The profligate ways of TAC will be highlighted in the next few years and come into sharp focus. This may force efficiencies to emerge but still this is a very high risk project. The outcome will be full of many surprises. The F&B tail is still strongly wagging the dog, this in spite of the overwhelming evidence that F&B should be downsized. Let us watch the drama unfold. Local residents' approval is probably the only hurdle that could derail or delay the project. Keep your seat belt fastened.
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