Sadly, I must inform you that earlier last week we were advised by the Dedes group (Con) that they would not continue with their project to open the restaurant on the upper floor of our clubhouse. We are obviously very disappointed and frustrated as he provided minimal detail around his reasoning to terminate his contract with the Club, with his notification to us being limited to :
I write to you to inform that I will not continue to try and resolve an outcome at Mona Vale Golf Club.
I have tried for the month of July to get an appropriate result – I apologise for not being able to furnish anything as yet.
Decisions have been made in good faith and into August.
It has been a long process and yes the term and conditions (timings) and commercials have changed – we are not currently in a position to commit.
Con Dedes
This communication came after he was pressed to commit to an updated contract schedule. We were shocked to receive this information given that he had met with Management and the Executive on the 20th June, a few days prior to the news around SMLXL. He was asked at that meeting whether there was any doubt as to his intention to proceed, and he provided a personal commitment that he would proceed, and further assured he and his wife would personally guarantee the funding for his renovation to ensure the project proceeded.
We have attempted to discuss the situation with Mr Dedes to get more detail on his above notification but to date he has been unresponsive, which is most disappointing after three years of productive discussions, planning and agreed contractual arrangements. Given the lack of any response from him to our numerous attempts to communicate with him, we must accept that position to be final, and accordingly needed to be communicated to the members.
The Club is seeking legal advice on possible avenues of redress likely to have a financially positive result for MVGC, without incurring significant legal costs.
We are now actively seeking an appropriate alternative tenant, hopefully in a similar model to the Watergrill. However, all options for a tenant on the upper level will be considered, as they were previously. To date there has been a few expressions of interest, which is encouraging. We have been back in touch with the broker who helped us initially and will actively pursue all avenues to get a solution as quickly as possible.
In relation to the clubhouse renovation, we have taken advice from our project manager HGW, and agreed to proceed to enter contract negotiations with “Mammoth Projects” as the best option for completion of the downstairs building project in a timely and most cost efficient way. They have been issued a draft contract and will contact and engage the subcontractors required to complete the project. This should give us a reasonably clear picture of the total outstanding amount and the amount the Club will be required to fund. Our Bank has approved the draft building contract with Mammoth and will be involved in the finalisation of the process of engagement of the builder.
Obviously there have been challenges presented by SMLXL suddenly going into liquidation, and now Con Dedes pulling out of the restaurant agreement after three years in the planning. However, having reviewed all of the available options, we will continue to press ahead with the planned clubhouse redevelopment and sub-leasing of the upstairs area, as we believe this is the correct model for the Club to successfully move forward.
Once we have engaged the new builder and have a firm date for completion, we will update you further.
Regards
Lance Barnes
Club President
