Dayton Daily News

Dayton Club and landlord trade criticisms in suit

Club to refund prorated dues; owner says back rent needed to reopen.

- By Thomas Gnau Staff Writer

The owner of the Dayton Club responded to a recent lawsuit in a new message to club members Wednesday, charging that its landlord has kept club employees locked out of the club’s space atop Stratacach­e Tower.

That landlord, Arkham Ventures, owner of Stratacach­e Tower, responded in turn by saying it secured the property after Dayton Club owner ClubCorp failed to make rent payments.

Arkham last week sued the former Dayton Racquet Club in Montgomery County Common Pleas Court, saying the club has failed to make April and May lease payments and left perishable items in the “unsecured” club space.

The suit also alleged that people have availed themselves of the club’s “fully stocked” bars since the club’s closure in March.

A new message from Dallas-based ClubCorp — the Dayton Club’s owner — does not directly say whether the company intends to reopen the club. When the Dayton

Daily News contacted ClubCorp’s general counsel earlier this week, she declined to comment.

“In light of today’s Dayton Daily News article, we wanted to provide an update on the status of the Dayton Club,” the message to club members from Dallas-based ClubCorp said. “As you know, due to COVID-19 and the governor’s order, our club has been closed for full service to members since late March. The article and lawsuit reference the club being abandoned and unattended; however, since the beginning of the pandemic, we have had staff at the club to handle administra­tive tasks, as well as to provide meals to our furloughed employees.”

“Just last week and without notice, our landlord boarded up the club and is not allowing us to access our space,” ClubCorp added. “This action has forced us to close our doors until further notice. We strongly disagree with their position and the assertions in the article and lawsuit they filed.”

ClubCorp said that in April, the company communicat­ed that it would issue “usage credits” to eligible members “as the company evaluated its plan and navigated the impacts of the governor’s

order.”

“When we billed your dues in April, we had no knowledge that our landlord would lock us out of our club and prevent any entry by our employees or members,” ClubCorp said in its emailed message. “With this recent action by the landlord and no longer having access to the club, in the coming weeks, we plan to refund all members for their prorated dues paid in March as well as for the entire month of April.”

Chris Riegel, chief executive of Stratacach­e and owner of Arkham, said Wednesday he and his colleagues have communicat­ed with ClubCorp for three months. Club representa­tives have been clear in their communicat­ions that they intend to close the Dayton Club, Riegel said.

However, if the club wishes to reopen, that’s simple enough, he added.

“It’s super simple. ClubCorp,

pay your rent,” he said.

Riegel dismissed the company’s email as a “charade.”

“ClubCorp, if you want to reopen, bring your rent payments current, and you can reopen whenever you want,” he said, adding: “They’re the ones with the power” to reopen.

Ten club members had appointmen­ts to go to the club Wednesday to retrieve personal property, Riegel said. “We’re facilitati­ng that day in and day out with members,” he said.

ClubCorp said Arkham has kept employees locked out of the club “despite our numerous attempts to facilitate the retrieval of your personal items.”

ClubCorp said it will keep members updated. The new message to members was dated Tuesday. ClubCorp also shared the message with a Dayton Daily News reporter.

Arkham, the real estate arm of global digital technology company Stratacach­e, bought the downtown tower at 40 N. Main St. in early 2019.

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