AT a contentious meeting at the Riddell's Bay Golf and Country Club, members expressed dismay at the proposed sale of three plots of land for $4.5 million, and one member drew applause when he accused the holding company of "stealing the real estate".

The dispute appears to reflect the divergent views of a few shareholder members, local residents who are not pleased at the prospect of new neighbours in an area they think full to capacity, and non-shareholder golfing members who expect to be asked to pay higher fees to cover losses which exceeded $1 million last year.

At a packed meeting of more than 100 members in the clubhouse on March 16, a veteran member told the board: "The problem that I see is that you have separated the shareholders from the members. The members feel they are going in one direction and the shareholders are going in another."

Another member present blamed the board for shirking its responsibility.

"You were elected without any confirmation from the general membership and you had the course designed by a non-golfer. We have ended up with a clubhouse that none of us like. The board has not kicked in enough," he said.

A board member responded that, while the sale had not been completed, "the $4.5 million will be re-invested in the club."

The directors appeared to be encouraging members to invest in the money-losing golfing operation while keeping the very valuable real estate in the hands of current shareholders.

"Why are you separating the real estate from the main business?" asked a member. "The directors are responsible to the shareholders in trying to get a return for their money. At the end of the day, if you strip all of the real estate from the club, you are selling a business that is not viable."

A member who had taken a stock market professional's view of the proposal believed that it might not stand up to thorough analysis.

"I am trying to stop it, what you are doing is illegal. (Members) need to be aware that you are being asked to buy into a company which is losing $1.2 million a year. Here is an asset that is worth something. The holding company is stealing the real estate, that is my concern," he said, to "applause from (the) membership", according to a report of the meeting.

Dave Warren, chief operating officer at the club, confirmed that there was a proposal to sell the three lots of land for about $4.5 million, and that the club had been approached by a group of Riddell's Bay residents concerned about the sale of the land. "There was a discussion of a piece of land that the club has opted to sell," confirmed Mr. Warren. "What you see happening is that the people that live around the golf course would rather that the land not be developed. Everyone understands that new houses need to be built, but they would rather it happen somewhere else. Our understanding is that the zoning would allow upwards of eight separate units to be built on the three plots of land.

"I do understand that there is a fear of more development, but the easiest way to dispel that fear is to look at what there is to sell. We'll continue to be an eighteen hole golf and country club. There is only so much land that could be made available under current zoning."

Mr. Warren talked of the additional pressures that the club faced as a result of the long-term downturn in tourism, and pointed out the developments that had taken place at Tucker's Point and Belmont golf clubs.

"Golf in Bermuda has been going through a fair degree of change over the last five to ten years; developers are putting up condos and fractional units around their golf courses, and Riddell's Bay is simply not that much different from these other courses.

"When you are trying to effect change, which is what we are doing here, then clearly people may like some part or none of it. We recognise that, and we are trying to manage it as best we can. We did indicate to the members that over a five-year period, which we are now in the middle of, the fees would be doubling."

As at other private golf clubs, the actual course is zoned "recreational", but a member noted that the value of the land to the shareholders had made some members nervous about the likelihood of re-zoning.

"At the March 16 meeting, it was proposed that the club and the property be separated," he said. "In other words, that the shareholders should continue to own the land, and that they turn over the operation of the club and the buildings to the members.

"However, the club hasn't fared too well financially over the last couple of years, and there have been huge expenditures for equipment. We must be one of the better customers of (golf course and agriculture equipment manufacturer) John Deere!"

None of the members contacted wanted to speak on the record, but one said that the proposed sale of the property could be of benefit to the club as a whole.

"The club finds itself a little pressed financially, and the real bone of contention arises because, at this time, there is an offer for some of the property down the hill past the fourth green. There's been talk of building a few houses there, even perhaps four or five condominiums," he said.

"That's what incites the residents, and it's perhaps understandable, because the road is strictly one-way in that area, and space is very tight. And people who live in an exclusive neighbourhood aren't looking for new people moving in.

"The sale hasn't taken place, but an offer has been made, no doubt subject to planning approval. The residents may be upset, but unless the proposed sale is an infraction of some planning policy, I would expect it to get done."

The member saw the "nimby" (not in my back yard) factor at work, and thought that most members would have no problem with the sale. He also thought that there could be more sales in future.

"From a member's standpoint, I don't care if the club wants to sell these three plots," he said. "If the $4.5 million goes to reduce the club debt, so be it."

A member said that, while the recent losses were to some extent a function of considerably increased expenditures, Riddell's Bay did not have the large numbers of overseas members that provided a constant revenue boost to clubs like the Mid Ocean Club and Coral Beach Club.

"We do have a good number of members, about 800, but tourist golf in Bermuda is going downhill.

"However, there's been some good dialogue between the various constituents, and a members meeting is scheduled for next Tuesday, May 10. There's been a total lack of dialogue over the years between the club and the members, so it's overdue! I think it will all come out fine, but there are certainly some huge suspicions.

"Anyone who looks hard at the available land out there could find more land to sell; selling the three lots would be fine, but the concern is that there are perhaps ten to 15 more lots, little pieces here and there that could be sold off and would get planning permission.

"I am certain that there will be no large condo development allowed; apparently that's going to happen on property opposite the old White Heron that adjoins the club, where the word is that some developer is going to put up 20 condos."

A Planning Department spokesman was unable to respond by press time.