Kelowna yacht Club leaking money

[vegas1500]

They don't own the boats so should be irrelevant. People commit to the slips in advance and pay a year in advance (non-refundable) I believe so that income should have been the same. Maybe people weren't hanging out down there and spending money when they weren't using their boats.

You purchase a shared mbrship there so they could do a special assessment and levy a charge to all mbrs.

It will be interesting seeing what happens.

I'd think in their Bylaws and Constitutions they can only raise the prices by a percentage per year.

I wonder how many will say no. That would be my answer, raise the cost next year as per the Bylaws and then one can stay of leave. I don't think it is proper to go back and ask for more, not the proper way to do business at all.

Agreed on the price raising but I do believe, just like owning a condo, they could slap everyone with a special assessment to cover the costs. I live in a neighborhood that has an homeowners association fee (quite small fee) and we need to do some upgrades. We either raise our yearly fees or vote on doing a few hundred dollars special assessment to each home in the association. Not fun to cough up extra cash but sometimes has to be done when you belong to an exclusive club and own shares!

[jasond_71]

It is not a business per se. They need to break even like a private golf course. They count on revenue from their clubhouse to break even. Obviously the bar didn't do as well as expected and it's not just flooding and smoke as they are expecting defects next year too.
They will either have to charge more for slips or reduce staff and expenses or increase revenue.
That is why they are talking about reducing the size of the restaurant area. Less staff and they can rent out the extra space to increase revenue.

[Bpeep]

If its not a business, what is it?

[60-YEARS-in-Ktown]

They are contemplating downsizing some of their square footage. Could there be enough rearranging in that building to accommodate a tourist information centre?

An excellent idea..

[LANDM]

I think that the big problem is the food and Beverage , even though the members are forced to pay about 3 or 4 hundred into the food and beverage ve3nue each year, I don't think that comes close to supporting the number of staff that are required to support the square footage

Bingo....we have a winner. The decision to put cactus club in the bottom effectively killed their ability to attract people in their own restaurant upstairs.
Not solely due to this but it had a heavy contribution to the negative situation.

[WalterWhite]

They are contemplating downsizing some of their square footage. Could there be enough rearranging in that building to accommodate a tourist information centre?

Made this exact comment myself many months ago. No reason the parties involved couldn't have accommodated the TK space - except that TK wanted their very own personal lakefront edifice. Maybe it should be noted that if the yacht club can't turn a profit renting out their space for private events - how does TK expect to fair any better?

[lightspeed]

If its not a business, what is it?

A bit like a "society" operation.

[John Crawford]

Losses were due to lack of business, and management not expediting changes in a swift fashion, members are been asked to balance the books, after all it is their club. nothing sinister has been going on. as they the saying goes, "nothing happening here, move on"

[gman313]

If its not a business, what is it?

a portion is a not for profit society registered as a society under the BC Society Act and a portion is an incorporated for profit entity

knowing many of their senior staff this is 0 surprise.

[jasond_71]

It is a non-profit society run by a Board of Directors. It is not a business. It is technically not owned by anyone but the members support it through membership fees.
It is very similar to the Kelowna and Vernon Golf club. It is owned by the members. The goal is to always break even. I know at the Vernon Golf Club they had fewer green fee players than they thought and all members had to pay a fee to cover the losses for that year. They both also have a board of directors and the members vote on any expenditure. Even though the members "own" the course you don't get anything if you leave and can't sell your ownership, at least that is how it works at the Vernon Golf Course, not sure about Kelowna. Many "clubs" are run this way, especially very old golf courses, yacht clubs and some beach clubs like the Kalamalka beach club in Vernon.

So the yacht club will either have to charge all members an extra fee or reduce expenses or increase revenues.

[Frisk]

https://www.castanet.net/edition/news-story-206532-1-.htm#206532

In an information package obtained by Castanet News, members were told the club lost $176,000 as of the end of July, with losses at the end of the fiscal year Oct. 31 projected to hit $561,000, "unless corrective measures are taken."

Several reasons have been cited, including a new building which is more costly to operate and maintain than anticipated.

"Significant capital has been expended in correcting design flaws, defective materials and a very dysfunctional kitchen," members were told.

[gman313]

this is hilarious though

[lightspeed]

this is hilarious though

How so?

Members (the public) paid good money expecting a service. Inept management failed to discharge their duties. Now those same members are on the hook for $$$. Not cool.

[holdin]

Got to be the ugliest building in Kelowna.

[Terris]

this is hilarious though

Odd that the elitist yacht club management here would publicly admit their ineptitude.

Keep an eye out for a request for municipal taxpayer dole out...