SOA/SDC Subsidy and Tolling Agreements

Somersett UnitedItem #2 in the Transition Committee’s recommendations (SOA Transition Recommendations) to the new Somersett Owners Association (SOA) Board of Directors (BOD) stated:

It is requested that the board review with legal counsel the subsidy agreement (Attachment A) and tolling agreements to assure they meet all NRS requirements and the SOA’s fiscal interest”.

SU welcomes this recommendation as it has long been our opinion that these Agreements were never in the best financial interests of the SOA, but rather benefited the Somersett Development Company (SDC).  It should be noted that they were entered into between the SDC and the SOA Board of Directors (BOD), which was then controlled by the SDC.

The Subsidy Agreement called for the SOA to reimburse the SDC $396K for maintenance, replacement and repair work to the SOA Common Area.  Most of which is associated with construction defects on the part of the SDC’s subcontractors.

The Tolling Agreements obligated the SOA to incur legal costs associated with litigation of claims against the SDC’s subcontractors for these defects (i.e., Parkway Entry Rock Wall and Mainline Irrigation System).  To date the SOA has spent approximately $100K in legal fees with more to come.

SU believes it unconscionable that the then SOA BOD entered into these Agreements, which will end up costing Somersett owners over $500K.  All such costs should have been borne by the SDC alone. Much has been said on this subject in past Blog articles and comments to no avail.  Hopefully the new BOD will seriously consider action against the SDC to recover these costs.

Sierra Nevada Performing Arts Association

TogetherPosted by Joe Bower on behalf of Joe Morabito

Some of you may be aware that we have established the Sierra Nevada Performing Arts Association, as a non-profit organization, to support performing arts schools in Northern Nevada and to provide scholarships to local talented students by sponsoring cultural events, which promote economic development and job creation in our community. Our goal is to turn Reno into a National Music Venue by holding a series of three day themed music festivals during our beautiful summer nights. We hope to begin this tradition in 2014. Once we are firmly established, we will look to Drama for our winter series. Whatever monies we generate from this venture will be used to support our mission. In addition, we have tied this concept to Big Brother Big Sisters so that we can involve kids at risk and just maybe discover a Star among them.

We are holding our first kick off fundraiser, themed The Beginning of Something Brilliant, on April 20th at The Grove 95 Foothill Road, Reno. Please plan to attend for a night of great food, fun and entertainment that will be provided by talented members of our community from Damonte Ranch High School, UNR and the Sierra School of Performing Arts, as well as, others. More details will follow in the months ahead. Our company, Paragon, will under write a substantial portion of this fundraiser; but naturally we welcome others that would like to join us in this new and exciting venture.

I am really pleased to announce the names of our Board Members that will be critical to the growth of SNPAA in the years ahead:

Joseph Morabito – President

Denise Hausauer – VP & Principal of Damonte Ranch High School

Performing Arts Magnet School for Washoe County

Ann Silver – VP & CEO of Big Brother Big Sisters

Benjamin Korn – VP & Director of Development UNR

Randy York – Vice President

Carole Fineberg – Treasurer

Judy Rounds Davis – Secretary

April 20th will be The Beginning of Something Brilliant for our city. I hope to see you at the Grove that night to establish what will become a wonderful tradition in our community.

P.S. Please feel free to pass this email on to your friends and neighbors. We can accommodate about 200 people at The Grove and we would like to fill the room.

Joe Morabito