OPA Yacht Club lost $160K during month it was closed

By Josh Davis, Associate Editor

(Feb. 22, 2018) How the Ocean Pines Yacht Club managed to lose more than $160,000 in January when the facility was closed is less of a mystery than it was.

Included in the losses was $141,074 listed under “expenses/wages/benefits.” Board members confirmed this week the majority of that was paid to former Food and Beverage Manager Brian Townsend as part of a severance package.

Townsend was installed as the food and beverage manager last January after the former manager, Jerry Lewis, was fired. Last month, General Manager John Bailey confirmed that almost the entire yacht club staff was laid off, including Townsend and chef Rob Sosonovich.

A press release on Jan. 5 said the yacht club was closed for 60-90 days “as the association undergoes a proposal selection and remediation process” after mold was found.

The Gazette obtained a copy of Townsend’s contract on Wednesday. Included in the terms were a payout upon termination to include 12 months salary, $70,000, as well as commission on all banquets and events booked at the time of the separation and 12 months of medical, dental and vision insurance.

The contract was signed by Townsend and former interim General Manager Brett Hill and no others.

Association President Doug Parks would not comment on the specifics of the payout or why Townsend left employment in Ocean Pines.

“Ocean Pines was honoring the terms of an agreement with a then-employee. Beyond this, for liability reasons, we do not discuss matters related to employee and personnel,” Parks said.

Association Vice President Cheryl Jacobs said some expenses in that $141,074 were related to yacht club employees who continued working elsewhere within the association.

“Despite closure of the yacht club after the New Year’s Eve celebration, it is my understanding that expenses associated with some continuing personnel did occur, some of which were for cleaning, etc., some for duties in connection with future banquets and weddings, as well as management that was utilized at the Tern’s Grill. Of course, there are always fixed costs whether the facility is open or closed. However, that may not represent the entire amount of the January expenses,” she said.

In total, the association posted a negative operating fund variance of $165,539 in January. The year to date operating fund variance to budget is more than $1.2 million.