Mixed Opinions on Public or Private Future for Whitby Castle

Some Rye officials want to know who is interested in running Whitby Castle at Rye Golf Club and how they would do it. Others want to give the city a chance to do it the right way now that former general manager Scott Yandrasevich, who is accused of stealing money from the club over the last eight years, has resigned while the County District Attorney investigates his actions.

City council members and Rye Golf Club (RGC) Commission members were divided on whether or not the city should continue trying to run the struggling restaurant and catering operations at Whitby Castle or if they should issue a Request for Proposal (RFP) to see what private groups might be interested in taking over the business. Those in favor of the current, city-run model want to give it more of a chance now that Yandrasevich is gone. Those opposed say that the Yandrasevich fiasco and Whitby’s continued struggle prove that the city should not be in the restaurant business.

“I don’t think the government should be running restaurants. This exercise has shown that the government does not have the right structure in place to cover the day to day operations effectively,” said Mayor Doug French.

RGC’s financial state is essentially where the City Manager expected it to be at this point and its future “looks bright,” he told the City Council and Commission at last week’s RGC workshop. The club is run as an enterprise fund, which means it is a city owned property that is self-sustaining through membership dues and fees, not subsidized by tax payers. 

The club’s pool and golf operations are essentially on target, but Whitby has already lost about $60-70,000 in revenue this year compared to last Pickup said. The loss is partially because the restaurant opened later this year, he said, and the club is working to make up that difference by advertising that Whitby is open to the public and soliciting more memberships.

 “We have seen improvements in expenses and we are saving money where we can,” Pickup said, “and we have not reduced services.”

“We are cautiously optimistic we are going to continue this going forward, I think with some changes in governance and maybe some additional, longer term strategies…I think the future for the club looks bright.”

RGC Commission members agree that things are looking up and that the current model, Whitby run under one General Manager Jim Lopolito, along with some administrative changes could help Whitby turn a profit.  

“I think we should wait to see what the RFP should look like,” said Commission member Angela Sposato. “Maybe we won’t need it if we can work it and grow. There is not a sense of urgency to do this by the end of the year,” she said.

Commission member Pat Geoghegan agreed that the club needs a better idea of what it wants before asking for proposals.

Commission member John Duffy said that the investigation caused a general uncertainty that affected catering operations that affected the club’s profit this year.

“I don’t think there is a rush here at all,” said Councilman Joe Sack. He asked why the city wants to do it and how much would it be worth.

“We have no idea because of fraud over the last seven or eight years,” he said, in a way answering himself.

Councilman Peter Jovanovich disagreed with Sack and said he felt the RFP should be done quickly to get it out there and find out what people would propose for the club.  Councilwoman Julie Killian agreed that it would make sense to hear from people who would be interested.

The mayor ended the discussion saying staff should put together a committee to create an RFP plan and then they would all get back together for a discussion.

Prior to the discussion on an RFP, the council and commission had a conversation about how to clarify who reports to whom at the club, how much power the commission should have and how the relationships between the general manager and the commission, the commission and the council, the city manager and the general manager, and the city manager and the commission should work out. You can watch that discussion here.

--

What do you think is the best future for Whitby Castle? Share your thoughts in the comments.