Something Not Quite Right With Forest Hills Stadium Sale Deal
Aug 09, 2010 | 2558 views | 0 0 comments | 20 20 recommendations | email to a friend | print
Editor's note: According to sources inside the West Side Tennis Cub, an agreement has apparently been made with a long time, well established, Forest Hills development firm to purchase the West Side Tennis Club's stadium property- and apparently as part of the agreement club officials signed with the developer, no other offers (to buy) can be entertained and no call for other offers can be made until this offer is brought to an up-or-down vote by club members.

Two thirds of the members must agree in order for the sale to proceed. There is no report as to whether any monetary exchange was part of the agreement (which might be normal under such circumstances).

Therefore, rather than allowing the option of first voting to sell or not sell, then calling for competing proposals that may be already standing, and then evaluating and voting for the best option, there is to be only one vote as per this agreement.

The club is expected to meet for an informational meeting on the deal on August 10th and hold a vote at a meeting on August 19th. Some questions are sure to be raised, but in the meantime our newspaper has gotten quite a bit of correspondence on the issue. Some of the concerns on the deal are:

Why wasn't there a public RFP made available for the proposed sale?

Why was a "non compete and binding agreement" reached with only one party?

It is customary for firms to pay for such a non-competing contract to buy. If not, was this not done?

Why was the full board and membership not informed that such a preferential agreement was being tendered and executed?

Finally, what “other types” of development would attract potential members and corporate events?

Dear Editor,

The interesting thing, the more you think about it- if someone is buying a house, and comes in and makes a bid and it is a good bid from the owners perspective, then why would they try to prevent the owner from entertaining competing bids?

In all cases, when a buyer tries to buy a house, convincing the owner that they must take their bid without exposing it to the market, it is because they are trying to pick it up at a bargain to themselves and know their bid won't stand up in an open market.

So too with the bid for the West Side Tennis Club. If the terms proposed to the WSTC offer the club the greatest value, then why would the purchasing syndicate go to extraordinary measures to prevent the entertaining of alternative bids?

Most likely because they fear any open bids might prove more desirable and they hope be able to negotiate with an inside track. We should be more diligent and entertain numerous offers before we decide on the fate of the stadium.

Sincerely,

Name withheld upon request.

Comments
(0)
Comments-icon Post a Comment
No Comments Yet