SGCC Lease & Management Agreement Modifications

As reported in a previous article, the SOA and SCCC Boards have approved a modification to the Lease and Management Agreement wherein the originally planned for 18 hole putt-putt course will be replaced by a 9 hole putting course and a multi-purpose hard court accommodating both Pickleball and Basketball  (Reference Link: SOA Lease Modification Memo to SGCC).  This proposal raised some questions and concerns by an association member that were contained in a letter to the Board in early March. No response was received. Therefore, a summary of which was read into the record at the April BOD Meeting. (Reference Link: SGCC Lease Modification Summary).

At the April BOD Meeting , the Board president (Tony Fakonas) advised that the BOD was in preliminary discussions with the SGCC for acquisition of land on which the leased amenities are housed (i.e., to provide for permanent usage by association members), which may include construction of a building over the hard court to facilitate year around access.  These comments, coupled with rumors that the SGCC is now looking at building a permanent clubhouse, should give association members some cause for concern.  This based on the following:

  1. To date the previous and current SOA BOD has chosen to enter into negotiations with the SGCC regarding resident access amenities without full disclosure to and/or feedback from association members at large.  This raises a concern as to whether or not the BOD is acting on behalf of their own or SGCC interests, as opposed to the majority interests of association members.
  2. Where will the funding come from for land acquisition and a hard court building.  These are not currently accounted for in the SOA Budget. Perhaps via a monthly assessment increase? Also, would not NRS 116.345.3 come into play here? This provision precludes an association from constructing buildings on expanded land without written consent of residents who own property within 500 feet of the proposed building location.  .
  3. With regard to the building of a permanent SGCC clubhouse, this is addressed by the “Event Trigger” clause of the Lease Agreement, which states:

“5.0  EVENT TRIGGER. Upon the initiation of building a permanent clubhouse by the SGCC, at the SOA’s option, SGCC would undertake to redesign its master plan for its future clubhouse with adequate capacities to include additional RESIDENT amenities as designated by the SOA, included but not limited to the amenities described in Section IV.5.3 of this agreement.

5.1  This option is subject to definitive terms to include a fee structure commensurate with the amenities being offered and the future growth of the community.”

Per Section 10.2 of the Lease Agreement, a “commensurate fee structure” could result in a $15/month assessment increase. Bottom line, if enacted, the SOA would help subsidize construction of the SGCC clubhouse via homeowner assessments.

The preceding is not to say that the current SOA Board of Directors does not have the best interests of association members at large in mind.  However, given that three of the current directors are SGCC members, close scrutiny of their actions and proper two way communications are in order to insure that they do.