Grand Harbor Golf & Beach Club is moving forward!

Rhea-AI Summary

Grand Harbor Golf & Beach Club, located in Vero Beach, Florida, has successfully completed proxy solicitations to amend its bylaws and secure funding for enhancements. Members acquired the club from a subsidiary of Icahn Enterprises (IEP), evading bankruptcy threats. A $10 million bank loan will initiate a capital improvement plan, starting with greens reconstruction on the Harbor Course, designed by Pete Dye, set to reopen this fall. Additionally, the club has filed suit against the previous owner for breaches of contract and fiduciary duty, alleging mismanagement of member funds.

Positive

• Successful proxy solicitations received overwhelming member support.
• Acquisition by members avoids bankruptcy threats and allows for direct management.
• Planned $10 million capital improvement fund to enhance amenities.
• Reconstruction of greens on the Harbor Course to restore its original design.

Negative

• Ongoing litigation against the previous owner raises uncertainty.
• Allegations of mismanagement and failure to meet fiduciary responsibilities may impact reputation.

VERO BEACH, Fla., May 23, 2021 /PRNewswire/ -- GRAND HARBOR GOLF & BEACH CLUB, INC., in Vero Beach, Florida, announced that it had successfully completed two proxy solicitations of its members and received overwhelming support for its amended and restated bylaws, the incurrence of a loan from a major bank to improve and expand its amenities, and a PPP loan for payroll and operating costs.

Grand Harbor recently was acquired by its members from the prior owner, a subsidiary of ICAHN ENTERPRISES HOLDINGS, L.P. (NASDAQ; IEP), in a negotiated turnover. The members of the Club took over management of the Club's operations and facilities under threat from IEP's subsidiary to seek bankruptcy to avoid contractual obligations to the Club. Since the change in ownership, the Club has hired, among other managers and staff, a new General Manager, Director of Golf, Head Golf Professional, Head of Marketing, Club House Manager and Head Agronomist.

As a result of the bylaw amendments, Grand Harbor has reclassified its membership offerings and is now offering memberships both within and outside the Grand Harbor Community. The Club is also offering a new Trial Membership and new Summer Membership.

The bank loan will fund a capital improvements plan initially budgeted at $10,000,000. The first phase of the program, which commenced on April 27^th, is the reconstruction of all of the greens complexes on the Harbor Course. This course, designed by the legendary Pete Dye, will be restored to its original design and reopened in the fall of this year. The balance of the capital plan will be presented later this year and is expected to address additions such as a new Wellness Center and Pickleball courts, as well as improvements to existing facilities. In addition, all ten tennis courts will be resurfaced in the fall.

The Club also announced that it had filed suit in the 19^th Judicial Circuit in and for Indian River County, Florida against the predecessor owner of the Club and its affiliates, including IEP. The Club's claims against the defendants include breaches of contract and of fiduciary duty. The complaint alleges that the defendants, while controlling all aspects of the Club's operations, collected all of the capital paid by club members, all dues and all other revenue but failed to maintain the Club in the manner required by the agreement between the Defendants and the Club. The complaint also alleges that the Defendants have failed to live up to the obligations to the Club contained in the turnover agreement by which the Club was transferred to member control.

Grand Harbor Golf and Beach Club is located within the Grand Harbor and Oak Harbor communities in Vero Beach Florida. Together they comprise a thirty-year-old, 900-acre master-planned development including approximately 1,180 single-family homes and condominiums, three golf courses, two Club houses, a beach club on the Atlantic Ocean and other amenities.

For further information on this subject please contact General Manager, Michael Gibson at mgibson@grandharbor.com or by calling (772) 299-6635.

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SOURCE Grand Harbor

FAQ

What changes have been made at Grand Harbor Golf & Beach Club since acquiring it from IEP?

Members have taken over management and amended bylaws to improve operations and member offerings.

How much funding has Grand Harbor secured for its improvement plan?

Grand Harbor has secured a $10 million bank loan for capital improvements.

What legal actions have been taken by Grand Harbor against IEP?

Grand Harbor has filed a lawsuit alleging breaches of contract and fiduciary duty against the previous owner and its affiliates.

When will the Harbor Course be reopened after renovations?

The Harbor Course is expected to reopen in the fall of this year after the greens reconstruction.