The privately operated club has negotiated an amendment to its lease agreement with the city that would defer a total of over $95,000 due for the last five months of 2020 and waive late charges, fees and penalties. The club typically has 20 events a month on average, but has seen only two or three a month this year. “We do not have financial trouble,” said the club’s Operations Director. “We are, however, trying to be fiscally prudent, and we just don’t expect our ballrooms to be filling up anytime soon.”
Coral Gables (Fla.) Country Club, operated by Coral Gables Grand, LLC., has negotiated a possible amendment to its lease agreement with the City of Coral Gables that would defer rent and create a payment plan to help the club withstand the postponement of events, the Gables Insider reported.
The amendment, which must be ratified by the city commission, would defer 100% of rent due for August 1 and September 1 and 50% of rent due October 1, November 1, and December 1, 2020, for a total deferment of $95,650.31, the Gables Insider reported. Additionally, late charges, fees, and penalties provided for in the lease would be waived during the deferment period.
The amendment would also provide the club with an eight-month deferred rent repayment plan for the period of January-August 2021, during which the club would pay monthly rent pursuant to the lease while also making monthly installments toward the deferred rent, the Gables Insider reported.
In reviewing sales tax reports, the city was able to determine that the country club’s operations have been affected more significantly by the COVID-19 health emergency than other city tenants, the Gables Insider reported, leading to the club informing the city in August of its inability to pay rent.
Anthony Di Donato, Coral Gables CC’s Operations Director, told the Gables Insider that while the club has typically had 20 events a month on average, it has only being seeing two or three a month this year, with many more being postponed.
“We do not have financial trouble,” Di Donato said. “We are, however, trying to be fiscally prudent, and we just don’t expect our ballrooms to be filling up anytime soon.”
The club approached the city hoping that it would do the right thing to help it as one of Coral Gables’ businesses, Di Donato added, noting that the club’s business model has been temporarily affected by COVID-19 shutdowns imposed by Florida’s Governor and the Mayor of Miami-Ade County. The majority of the club’s rent is generated from the rental of its ballrooms for events, DiDonato noted.
The long-term plan is that one day the club can once again operate at optimal capacity, Di Donato told the Gables Insider, but that is something that may not still be possible in 2021. While the club is certain that day will come again, the uncertainty of when it will be prompted the request for the rent adjustment.
Before voting on the lease amendment, the Gables Insider reported, city commissioners asked the city staff to look into how the club has handled deposits for events and memberships to the fitness center during the pandemic. Di Donato confirmed to the Gables Insider that all parties that placed deposits for events have been allowed to postpone to a future date.
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