Lease Agreement Alleged NRS Violations


Agenda Item 7.e “Discussion of alleged violations of NRS 116 regarding the Country Club Lease Agreement” of the June 25 Board of Directors Meeting (see previous post) could be a very interesting one.  It has become known that a Complaint filed with the Nevada Real Estate Division Ombudsman has made its way to the Nevada Attorney General’s office for possible violation of law prosecution before the Nevada Commission on Common Interest Communities and Condominiums (NCCIC).  To date, no such filing before the NCCIC has occurred, so it is premature to speculate on the outcome.

In light of the above, SU suspects the referenced Board Meeting agenda item is to address this situation and what effect it may have of future dealings with the Country Club. Perhaps this is also related to Agenda Item 7.d “Review and approval of a Country Club Committee and Charter”.

It is possible these Agenda Items are unrelated to the Complaint before the Attorney General’s office, but given the controversial nature of the Lease Agreement and its impact on the community, SU believes it important to attend the Meeting, listen to what is said and voice your opinions/concerns.

4 thoughts on “Lease Agreement Alleged NRS Violations

  1. Somersett Owners Association (SOA) board members who are also members of the Somersett Golf and County Club (SGCC) – whether holding an equity membership or any other level of membership – have a clear conflict of interest when SGCC matters are before the board and need to recuse themselves from any discussions, reviews, analyses, votes, etc.

  2. I believe the principle reason our developer felt the Country Club would survive and prosper was the HOA would cover the short falls.

    I believe either every resident of Somersett should have been made a member of the Country Club or the Country Club should be separate from the HOA and expect NO funding from the HOA.

    I see no reason why I should bail out yet another businessman who has made a poor business decision. If I can’t participate in his success ($$$), I should not be required to prop up his failure.

    BTW, if Country Club membership had been included in the home price, I would have bought somewhere else.

    1. When we bought in 2005, we were told that the Country Club was private and separate. Whereas we could have bought an equity membership at $40K and paid $425/month we chose not to so at that time.

      Well, you can imagine how upset we were in 2012 when $15 a month of our dues were diverted to support to the Country Club, provide us with access to their amenties, whether we wanted to use them or not. We were not consulted, nor were any other homeowners.

      In fact, if I recall correctly, the CC&R’s prohibit any interest in the private CC and the rest of the residents.

      In other large planned communities in the area – Coughlin Ranch and Tahoe-Donner – other than the common interest areas – all amenties are optional, by the day, week, month, or year – with differing ammounts whether one was a senior, single, and families.

  3. I will not be able to attend the SOA Board meeting on 6/25, but it appears the SOA Directors who have the conflict of interest because of their SGCC memberships (including some equity memberships) want to change the character of the “amenity Lease Agreement” to that of an installment sale of about four acres of land for over $4,000,000 of SOA member assessments. This deal values the land at such an inflated price that no objective person would agree to the deal. The SGCC agreement modification proposed by the SOA BOD is just as much a violation of their fiduciary responsibilities as the existing agreement.

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