Town Center Lots & CC&R Vote Extension

Somersett United
Somersett United

Town Center Lots

The BOD held a special meeting on July 31 specifically for “Discussion and Approval Regarding Town Square Lots”. Takeaways from that meeting are as follows:

1. The lot adjacent to The Club at Town Center (TCTC) has been sold. This is the lot the SOA BOD had previously attempted to buy. The buyer has expressed a desire to build multi-level condominiums on the property. Some have questioned whether or not this is possible given an easement restriction on the property. Apparently the buyer does not believe this to be an issue. He has also expressed an interest in the lots discussed in item 2 below for the same purpose.

2. The lots at the end of the Town Center retail buildings are now open for purchase discussions. The owner has decided not to build the originally planned “Memory Care” units and is willing to sell the property.

3. The BOD is interested in buying the Memory Care lots to accommodate future expansion of TCTC amenities. They believe this is necessary given that the TCTC will not be able to accommodate future residents as Somersett continues to grow towards 3500 home sites.

4. Identified funds for purchase would come from the SOA Capital and TCTC Project Budgets. The Capital Budget consists of funds acquired from the sale of homes within Somersett. That is, when a home is sold within Somersett part of the sale proceeds are allocated to the SOA. The TCTC Project Budget consists of funds already allocated for improvement/expansion of TCTC. Since TCTC amenities are not available to Sierra Canyon residents, only those Capital funds resulting from non-Sierra Canyon home sales would be applied. Currently non-Sierra Canyon related Capital funds amount to approximately $213K whereas TCTC available Project funds amount to approximately $75K. This equates to $288K available for purchase of the Memory Care lots. The BOD believes that this is more than sufficient for a successful purchase.

5. Based on the need for TCTC amenity expansion, the BOD approved entering into discussions with the Memory Care lot owner to come up with a proposed Purchase Agreement or Letter of Intent (with appropriate conditions) to be presented and voted on at the August 27 BOD meeting.

6. Discussions related to the above included: 1) using the property for joint Somersett – Sierra Canyon usage, 2) use of the Sierra Canyon related Capital funds, 3) SOA CC&R applicability (present and proposed amendments) to the lot purchase, 4) the Memory Care lot owner preference to sell to the SOA rather than a developer, and 5) maintaining the existing CC&R’s applicable to the commercial Town Center property, which apparently due to the foreclosure process, no longer applies to the lots discussed above.

CC&R Vote Extension

The voting deadline for the CC&R Ballot submittals has been extended once again to October 11, 2014. The BOD, in an attempt to obtain the required number of approval votes, has hired a third party to conduct a door to door campaign of those who have not yet submitted their ballots, encouraging them to do so.

7 thoughts on “Town Center Lots & CC&R Vote Extension

  1. I think the Board needs to slow down on new infrastructure and concentrate more on the upgrading and maintenance of old infrastructure, especially trees. I urge the Board to budget increasing annual amounts for this valuable and costly to maintain and replace living asset.

  2. Purchasing the “Memory Care” lots for future TCTC amenity expansion (e.g., indoor pool, fitness center and club room expansion) sounds like a good plan. These Town Center lots are ready to build upon and parking space already exists. I would suggest that this is a better use of SOA funds than the proposed purchase of the Country Club land (220 acres) and water rights for $2.75M. Land that is of no use to the SOA as long as the Country Club continues to operate and, in the event it fails, a significant revenue drain on the SOA for land and water facility maintenance. Not to mention costs associated for converting the land to whatever use one may come up with. Purchase of the Memory Care lots would provide ample space for amenity expansion and is risk free in this regard. Purchase of the Country Club land is nothing more than a “crap shoot” with significant downstream risk. Perhaps someone out there can enlighten me as to what the advantages are to the Association for purchase of the Country Club property, outside of the “ go brown” fear that some believe would have a negative impact on Somersett property owners

  3. “Go brown” need not happen to the golf course if the Golf Club goes away. There are lots of other uses for the former course, including breaking it up into green parks here and there, horseback riding trails, even a private helicopter landing area for rich ex Club members.

    Del Webb owners will love having Sierra Canyon funds paid to Somersett used on amenities that are 3 miles away and that they can’t use.

  4. my recollection re the lots at town center was awhile ago there were thoughts of us buying them. I thought there was also an access issue involving the par 3 golf course that entered into the equation. I would have also thought that building a “business” like memory care and buying the property and then turning around and be willing to sell it immediately (obviously at a quick profit) doesnt sound completely above board. Do we know who the principals are for this company and have they had any affiliation/involvement with Somersett in the past. Also who did they buy this property from?

    1. Steve,

      The Town Center lot with the access (storm drain easement) issue is the one adjacent to TCTC and Canyon 9. This property was recently sold (6/2014) by the Bank to Somercom LLC for $150K.

      In the 2010 time frame, when the Developer (Somersett Development Co.) defaulted on loans, all the Commercial property at the Town Center was foreclosed upon (or deed in lieu of foreclosure) and subsequently sold off by the note holders. The “Memory Care” lot was the first to go in 12/2011 for $221K to the current owner, Doodle Properties LLC. Therefore, your comment about a quick turn around for a profit does not apply here. The commercial building housing the Grape & Grain was sold to CAV Somersett LLC for $1050K in 5/2012, whereas the building housing the Sushi restaurant was sold to Saemaul Investments LLC for $820K in 3/2013.

      I have no knowledge that any of the principals for the above companies had any affiliation or involvement with the Developer or the SOA in the past.

      Given the above financial data, it appears that the reported $288K of available funds is sufficient for purchase of the Memory Care lot for future SOA amenity expansion, and therefore, should be looked into by the BOD.

  5. VNice negotiationg strategy! Tell the seller we have $288K to buy your property that you paid $221K for but think is worth more. SOA should be VERY wary of the parking situation on the Memory lots – it is a snake pit.

    Doodle Properties is Dean and Gloria Smith. No one has ever proved a link to G Blake Smith, but they lived across the street from each other on Juniper Hills.

    What amenities located on the Memory lots could possibly be of use to Sierra Canyon residents? They are 3 miles away, and a goodly portion use the back door anyway. (are there traffic studies on how many residents use Somersett Parkway versus Somersett Ridge Parkway?)

  6. It was my understanding that the $288K in funds available for the purchase does not include the Sierra Canyon capital reserve fund (everytime a property is sold a contribution is made by the buyer to the capital reserve fund).

    So the MC lot purchase will be done by the 1650 or so dues payers who live in Somersett, exclusive of Del Webb

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