UPDATE – Country Club Lease Agreement

A meeting was held in Las Vegas on July 2, 2013 between previous Somersett Owners Association (SOA) Board members (B. Smith, T. Roland, R. Lee), the  current SOA Board President (T. Fakonas), the SOA Attorney, and representatives from the Nevada Attorney General’s office. The purpose being to discuss the alleged violations of Nevada Law associated with the current Country Club Lease Agreement and the filing of a “Complaint for Disciplinary Action and Notice of Hearing” (the Complaint) before the Nevada Commission on Common Interest Communities and Condominiums (the Commission).

A proposed settlement calls for the current SOA Board of Directors to develop a new Lease Agreement with the Country Club and submit it to a vote of the homeowners.  In the meantime the AG will stay filing of the Complaint with the Commission, pending resolution of other terms associated with the proposed settlement and/or voting results.  As these terms become known, they will be posted on the Somersett United website.

If a settlement agreement cannot be reached, the Complaint will be filed before the Commission with an objective of voiding the existing Lease Agreement and seeking possible disciplinary action against some or all of the Respondents (i.e., the previous 2011 SOA Board members and the Somersett Development Company).

Previous to the above referenced meeting, the following was reported at the June 25, 2013 SOA Board meeting.

  1. Pending resolution of the Complaint, a status quo on the existing Lease Agreement will be in place. That is, the 2013 planned amenities will not be built, the $100,000 of up-front payment to the Country Club to build these amenities will not be provided, and the Country Club monthly payments of $15/mo/unit will be reduced accordingly.
  2. The current Board has been served by the Attorney for the Somersett Development Company to indemnify previous Board members against any loss associated with Complaint resolution. This is action is currently being reviewed by the SOA Attorney.

 

If the proposed settlement goes forward, it will be interesting to see if the current Board can come up with a new Country Club Lease Agreement that has strong enough appeal to obtain a majority vote of homeowners. That is, in lieu of reduced assessments and/or applying these funds to what may be considered as more worthwhile endeavors.