EDGE San Francisco

As it negotiates a lease with the new owner of its building, the advisory board for a Castro sober space is attempting to make amends with supporters for past mistakes.

Repeatedly during a community meeting the five-person board held with members and financial backers of the Castro Country Club, chair Crispin Hollings apologized for a series of missteps that occurred over the last year as the board dealt with the prospect of losing its building at 4058 18th Street.

"We have made some mistakes. Our communication was not always as good as it might have been. Today we want to address some of those mistakes we’ve made and give people an opportunity to communicate with us," Hollings said at the start of the February 5 meeting.

More than 50 people attended the two-hour session, which marked the first time the advisory board publicly addressed a number of grievances people have raised in recent months ranging from a lack of transparency to how one potential buyer of the building was treated.

"I am personally sorry if anyone was hurt in this process, that was never our intention," said Hollings. "It did happen and the board is sorry it happened."

One reason Hollings cited for the minimal communications was the fluidity of the sober space’s fate. Since the death of the original owner of the building in 2009, the club’s future has been cloudy.

The picture became a bit clearer in early January after it was announced that Castro businessman George "Jorge" Maumer, the owner of Superstar Video on Castro Street, had bought the building for $1 million.

Maumer, who has not responded to requests for comment left at the video store, has indicated to the club’s board and city officials he intends to lease the first floor space to the club. He has also submitted an application with the planning department to turn the garage space into a retail location.

As part of his plan, he would remove the driveway and curb cuts in front of the garage, thus creating a new parking space on 18th Street, a rarity to have happen in the Castro. Maumer may be looking at relocating his video store into the space, as its current space at 474 Castro Street is listed as available for rent.

District 8 Supervisor Scott Wiener, who attended Sunday’s meeting, said he had recently sat down with Maumer and his architect to discuss their plans.

"I know the owner of the building. He has said repeatedly to me he is interested in keeping the Castro Country Club," said Wiener.

According to club officials they are negotiating with Maumer, who was said to have been out of the country last week, on the terms of their lease. The board indicated Sunday it would like a long-term lease, lasting at least five years, with an option to buy the building.

The club’s board has met with Maumer, but Hollings said, "He hasn’t gone into a whole lot of detail about the retail space. Our primary interest is in making sure we have a long-term lease for the space we are in now."

Apartment not included

The lease would not include an upstairs apartment that had become a flashpoint in the sale of the building last fall. For years the club has had a manager whose compensation included living in the apartment.

The arrangement was sanctioned by Baker Places, the club’s fiscal sponsor since 2000, and allowed it to afford to hire a manager on a part-time salary but for full-time work.

As of July 1 that situation will come to an end, as Baker Places has informed the club it will dissolve its partnership on that date with the sober space. At such time the lease for the upstairs apartment will not be under the country club’s auspices and the manager’s compensation will need to be renegotiated.

"The relationship between the manager and the club will be entirely different as of July 1. It will not be tied to the upstairs unit," said Mike Marshall, an advisory club member.

Baker Places has also been underwriting the cost of the club’s operations, at a cost of about $50,000 a year. The club’s operating expenses cost $155,111 in the 2010-2011 fiscal year, but its revenue from room rentals and an on-site cafe generated only $80,000.

Starting this summer the club will be on its own in paying its bills. A fundraising campaign to keep it housed in its current building has so far raised close to $200,000, money that can be used to cover its monthly costs.

"We are having discussions with Baker Places to make sure the transition meets all California laws and that it is legal and transparent," said Hollings. "We are just starting this process."

In the meantime, club officials are reviewing several options to ensure its long-term stability. One is becoming its own nonprofit and seeking 501(c)3 status.

Another is finding a new fiscal agent that can assist it with management duties. But board members do not expect to find another agency that will supplement its costs as Baker Places has done.

A third less likely scenario would be for the club to be merged with another agency and become one of its programs. Yet it would lose its autonomy, and many at the meeting feared it could become a budget ax casualty down the road.

It is more likely that the club will find a new fiscal agent as an interim step toward seeking nonprofit status on its own. That option was endorsed by Stu Smith, who was elected to a new community representative seat on the board at the February 5 meeting.

"We should start off with a fiscal sponsor and move toward becoming our own nonprofit," said Smith. "We should start where we’ve been and move toward what we can be."

Another town hall type meeting is being planned for sometime in the spring. Until then the advisory board meets the second Tuesday of the month.

Despite it falling on Valentine’s Day, the board plans to meet at 7:30 p.m. Tuesday, February 14 at the club. The meeting is open to the public.

"One way or another on July 1 the country club will still be there and the doors will be open," said Hollings. "What matters to me is we have a sustainable solution that keeps us running."