by Bradley Parsons
Staff Writer
The River Club’s president and board of directors will recommend the membership approve a takeover bid by Gate Petroleum.
W.O. Birchfield told the members in a letter sent last week that Gate’s $1.7 million offer represented “the best course of action” to restore the club’s stature. Although it has remained one of the City’s most exclusive clubs, Birchfield said little money has been spent to modernize the interior since opening 35 years ago.
“Gate will work hard to ensure The River Club helps lead this community and once again takes its place as the city’s crowning jewel,” said Birchfield in the letter.
Pending the members’ approval, the deal would join The River Club to Gate’s roster of high–end membership clubs in North Florida. Gate currently owns and manages Epping Forest Yacht Club, The Lodge and Club and The Ponte Vedra Inn and Club. Together they form the Gate Governor’s Club, and the deal would make The River Club its fourth member.
Birchfield pointed to Gate’s successful management of those prestige properties as evidence it could do the same with his club. River Club members would be offered discount memberships to the other Gate clubs.
The board of directors approached Gate about 60 days ago, following the Ritz Carlton’s departure as manager said Gate Vice President of Finance Jeremy Smith. The downtown dinner club was appealing, said Smith, because it offered a different experience than Gate’s current properties: two beach clubs and a yacht club.
River Club spokesman Michael Munz said lawyers from both sides are still hammering out the deal’s details, but its broad strokes have Gate spending $1.7 million to refurbish Independent Square’s 34th and 35th floors, which house the club. Membership dues will be reduced from $92 to $80 monthly. In return, Gate will own and operate the club.
Gate has not yet considered the future of club’s staff and current managers, said Smith. He said Gate would observe the club’s current operations before making any personnel or organizational decisions. Gate would make changes if necessary, said Smith.
“We’re not new to this business, we’ve been in it since the early 1980s. Once we focus in on a situation we can move quickly to take any action necessary,” he said
Birchfield said Gate’s design plans are still in development, but he told members they would “take the best of our legacy and mold it into a future that expresses a vibrant, inviting club.”
Birchfield said two weeks ago that the club’s 34th–floor kitchen created logistical problems for the club’s 35th–floor dining rooms. According to Birchfield’s letter, Gate will complete the improvements by September.
Smith said the design schedule was still a work in progress. Ideally, he said, the renovations would all be completed at once. If the work forces the club’s closure, Smith said members would enjoy privileges at Gate’s other clubs.
Smith said The River Club deal reminded him of Gate’s 1983 purchase of the Ponte Vedra Inn and Club.
“First and foremost, the club needs renovation, an upgrade to its facilities. In that respect it does resemble Ponte Vedra.”
The deal still depends on the vote of the members, who own the club. Approval will require a majority vote. Munz said the members would receive comprehensive information packets over the next two weeks. The vote will likely be scheduled for late January or early February. If approved, Gate would take over immediately, said Munz.
Munz said the board of directors had received an “overwhelmingly enthusiastic response” from members already aware of the deal. He said members knew what Gate had achieved in its leadership of the Governor’s Club properties and hoped for the same downtown.
“Based on their (Gate’s) performance in their management of the other clubs, what we’ve heard from the members is they see another great club offering from Gate.”
Smith said the deal would benefit the current members.
“There are a fair number of members who are also members at our other clubs, and they know we run first–class facilities and they know we’ll make the commitment from a capital–improvement standpoint,” said Smith. “There are a lot of clear–cut advantages to our involvement, but that’s for the membership to decide.”
Munz said the board was impressed with the money offered by Gate, but said the company’s management record was the primary consideration in recommending Gate. Birchfield echoed that sentiment.
“Your board of directors has searched far and wide for the best solution, and we unanimously agree this is the right decision,” Birchfield told the members. “I ask for your positive vote.”