Incline Together

The IVGID Board of Trustees is poised to make a significant decision at the upcoming meeting on August 6th that could drastically change how our community is run and potentially negatively impact property investments. (See Agenda)

Item G1 on the agenda proposes outsourcing the management of the entire district to Troon, a third-party golf management company. Dr. Myles Riner wrote about this earlier. (See Article)

Mick Homan, a candidate running for the IVGID Board of Trustees has provide a deeper-level of a summary of the proposed agreement, a must read for all who live and work in the Village.

See below for Mick’s breakdown:

• IVGID pays Troon a $22,500 monthly fee, which increases each year by 2.5%. IVGID also pays an annual incentive of up to 20% of the base fee, plus expenses (travel and other costs Troon incurs when their corporate or other non-local people travel to consult and work with the local team). This will likely total between $275,000 to in excess of $325,000 per year.
• Troon sources and hires an interim and/or permanent GM. That GM works for Troon – not IVGID. IVGID covers 100% of the cost of the GM (in addition to the monthly fee noted in the prior bullet) via reimbursement to Troon. Via this provision, the Board effectively outsources its most important duty – to hire and manage the GM.
• IVGID also covers all costs needed to train and on-board the GM.
• The contract has a 3 year term, with an automatic 3 year renewal unless either party gives 180 days notice.
• The contract is non-cancellable for the first 2 years.
• The contract is only cancellable in year 3 if Troon fails to achieve at a level of 85% of their financial targets in each of the first 2 years. Since the current board majority sets year 1 targets, the next board essentially has no ability to terminate the contract without paying out the entire contract amount.
• In terms of qualifications, there is no experience noted in the Troon presentation dealing with anything other than traditional golf, country club and HOA amenities. They mention experience in golf, F&B, tennis, pools, etc., along with administrative back-up for those facilities
• Thus, while Troon does have experience relevant to most of our recreation side of the equation – i.e., Parks and Rec and Golf, IVGID has hired directors for both of those roles in the past 6 months with relevant experience. This contract would bring largely redundant experience.
• Troon has no experience with ski operations but would oversee them. Our ski operations are well run. The only party benefiting from this relationship appears to be Troon, who would develop their own experience in this area that they could monetize with other prospective clients.
• Since Troon has no relevant experience in utilities or governmental aspects, we can only assume they have no in-house experience in this area. Thus, they have no “bench” that can be tapped in terms of potential interim or permanent GM candidates. So assumedly, they would have to go external to hire that skill set. This is no different than the situation IVGID currently faces.

Net, this arrangement would add an additional, redundant layer of management, with the corresponding costs. It effectively locks the district into a 3-year non-cancellable agreement (other than via a payout of the entire contract value), with a management company that has little-to-no relevant experience in overseeing anything other than private, semi-private and public golf operations and related facilities. And it arguably outsources the Boards most important duty – to hire and manage the district’s General Manager.

One has to ask why the current board majority would consider this type of long-term contract that outsources such a substantial portion of their critical responsibility. Are they admitting they are incapable?

If residents are concerned about this potential course of action, they should consider attending or calling into the meeting Tuesday evening (6:00 PM start time) to voice their concerns. Details on attendance can be found here.

You can see the related documents below:

It is important to note that the executive summary from Troon paints a picture of high turnover and loss of senior leadership within the District, as if these issues occurred in isolation. However, this narrative ignores the broader context of the current Board’s decisions and actions, which have significantly contributed to the instability.

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More information on Mick can be found here. To support Mick as a candidate for IVGID Board of Trustee, you can:

1. Spread the word (start with sharing this post)
2. Volunteer
3. Donate. Please write a check made out to “Positive Change for IVGID PAC” and mail it to this address:
   • Positive Change for IVGID PAC
     567 N Dyer
     Incline Village,  NV   89451
   • Note: Be sure your first and last name and address are on the check, and consider adding your phone number or email address in case there is an issue.
   • Contact us for donating using Zelle and/or Venmo

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