Posted by Geoffrey Brooks
WOW! I read through your letter, concerning the value for monies that ALL the residents are getting for our $1.3 million 3 year lease deal (is it really cancelable then?) with the SGCC.
I am now reiterating the written commentary I made to the SOA Board in January, 2012; about what I believed to be an extraordinarily bad deal for the homeowners and how we all should have had the been informed and allowed to vote (per NRS regulations) on these very “large expenditures” of homeowner funds.
Wow, again! We are paying $300k “lease fees“ (of the $1.3 million) to build our new amenities!
In the world I have operated in, most lease agreements will give you the opportunity to own it, if you lease it – that is something for your money. A car lease allows you to buy it (yes, actually own it) at the end of the lease. Somersett homeowners never can, as the SGCC cannot sell the land on which the new amenities built for the SOA are constructed.
The Championship Golf Course (unlike the Canyon 9, which the homeowners own), is still effectively owned by Blake Smith/Somersett Development. In his role as SOA Board President (a conflict?), and, with the current board members approval, they “engineered” the “lease” agreement. Ray Lee has posted a justification for the “amenities lease” on the SOA member web site. The actual lease agreement has been challenged through the NV Ombudsman’s Office, it was referred to the Real Estate Division’s legal department for review under Case # IN-1580 dated 6/4/12.
Lets assume for a moment that the homeowners owned these newly constructed amenities after 3 years (we would pay about $30K in interest at 10% if it were like buying a Ferrari), so what is the other $1,000,000 we are paying buying for ALL of us?
-3000 “free” driving range experiences for residents!
-3000 “free” fish (if we can catch them) that we have to release! (We could alternatively have resident fishing adventures on one of our nearby lakes say at $300 a day/person (boat rental, gear). Assume 3000 residents, each could potentially have one “free” trip for a total cost $900K (and one gets to keep/eat the fish). Maybe the SGCC should offer a series of fishing tournaments. What a great thing for all member/residents.
-6 “free” resident/member meals over 3 years (but we have to pay to eat/drink at the Sunsette Grill). So, assuming a $50 meal and drink is worth $100 at another restaurant/casino. Again, assuming 3000 residents participate that would be
-18,000 meals = $900K subsidy by the SGCC to create harmony and value for ALL residents. Also, this would represent a $900K gain for the SSG. This could be easily accomplished by a $50 resident give-back on a $100 + dining experience.
-Using my anarchic logic, I can find many ways to provide residents value for their $1,000,000 3 year investment over the agreement period, but not unfortunately, for the $300K for the new “leased amenities”.
Eat up, enjoy your money, ask for that real fishing experience. The SGCC should be happy to do this for you so you can really be happy with how your HOA money is spent.
I would welcome other opinions, after-all we do have pay for our golf ambience. I do believe that most people bought houses here because they DID NOT have to belong to a private golf course!
Rich, What do you think about my assessment of the “lease” and ideas for the SGCC to provide some “extra” value for the residents investment?
In my mind, lower assessments result in higher prices for our property!