Commentary for the SOA Board Transition Committee

Submitted by Geoffrey Brooks

Ask not what the SOA can do for you, ask what you can do to help the transition committee do their job and insure that the books, records and debts, we the homeowners OWN, are transferred in good shape.

Previous SU Blog posts indicate that the SGCC equity members (past and present) have “given/paid” over $10 million in equity payments and pay monthly dues  (over $400/month) to operate the club, one wonders what happened to the fancy club house their equity stake was supposed to build.

In contrast, according to the Club at Town Center (TCTC) Dedication Agreement, signed by Blake Smith in 2006 for both Somersett Development Ltd (SDL) and the Somersett Owners Association (SOA), construction costs for the TCTC and Canyon 9 amounted to $12,000,000 (includes water rights).  Via this agreement, the SDL will recapture $4,250,000 via homeowner assessments (See “TCTC Dedication Agreement” under the Reference Tab).

So, how much are the Somersett Residents paying SDL for these two facilities?  Roughly $5/month/unit over a 30 year period.  In addition to the repayment expense, we pay $15/month to maintain the C9.  At least the SOA owns these assets.  Whereas we are gifting $4 million over 10 years to the SGCC via the Lease Agreement, and will own nothing in return except garnering minimalistic rights and being treated as 2nd class owners in a first class entity.

In addition to the above, the SOA is paying SDL $375,000 via a Developer Subsidy Agreement. In the past, the auditor’s report has had issues in this area (no transparency on what is perceived to be an illegal agreement).  There are also the litigation issues regarding damages against Summit Engineering and Moana Nursery for defects in the rock wall entrance and mainline irrigation system, for which the SOA is paying all legal fees.  A Tolling Agreement with SDL calls for 27% of any recovered damages to be paid to the SDL.  It makes no sense that the SDL gets paid before the problems get fixed, and that legal fees are being paid for by homeowners rather than the SDL.

I would suggest that one looks at the SOA Financial statements; maybe you can figure it out!

The Transition Committee will have their work cut out to present a clear picture of the TRUE financial situation and the long term obligations of all community residents