What We Are Not Buying !

Somersett United
Somersett United

The Information included within the Purchase Agreement Ballot mailing briefly describes what the SOA (Buyer) is buying as regards land, water rights and related facilities, which collectively, is defined under “Recitals”, Section A, of the Purchase Agreement as the “Property”.

What was not discussed is what the SOA is not buying. This is defined under “Recitals”, Section B of the Purchase Agreement, as follows::

“The Property excludes the (i) Seller Retained Property (below defined), (ii) Canyon 9, which the Buyer already owns, and (iii) any leases, permits, service contracts, personal property, located on or relating to the Property, or that Seller uses in connection with the repair, maintenance, use, possession or operation of the Somersett Country Club and/or the Championship Golf Course; and (iv) Seller’s business of owning and operating the Championship Golf Course and/or the Somersett County Club.”

 With regard to the (i) provision above, the Seller (SGCC) Retained Property is defined under Section 3.7 of the Purchase Agreement, which states: “Seller shall retain ownership to the land comprising the planned site of the Seller’s clubhouse and parking lot for a planned clubhouse”.

The BOD argues that this was excluded such that “its members would have no further obligations or liability related to the SCC building a clubhouse on that site”. It is more likely that it was excluded at the insistence of the SGCC  to insure they would continue to have a parcel of land and clubhouse for their exclusive use and disposal, including any revenue from future sale of such, even though it may have been built with association money (i.e., the $2.75M).

With regard to the (iii) and (iv) provisions, it would appear the BOD’s premise that, upon default, the SOA could continue to operate the Country Club should we so desire, is false. Reason being that the requisite business permits, leases, machinery, etc. are excluded from the “Property” being purchased. Not to say that such items could not be purchased in the future at an added cost.

7 thoughts on “What We Are Not Buying !

  1. and if, for some reason, the SOA did continue to operate the golf course – we could THEN buy the club house – nice

  2. Not exactly sure why the continued campaign of disinformation or what this group hopes to gain from it.

    SOA funds will not build any clubhouse for the SGCC now or in the future.

    The value of the transaction is very favorable to the SOA — especially the water rights.

    Plus all relationships with the developer are eliminated which seems to also be a goal of SU.

  3. If we vote to buy the Championship Golf Course – it will become a part of our HOA and subject to our CCR’s.

    Unfortunately, the 5.5 acres we are not buying, will NOT be suject to our community standards.

    A new club house, if built, will not be subject to our community standards.

    Some believe that “trailers” are an eyesore!!

    We were promised by the Realtors and the Developers when we bought here in 2005 that a magnificent club house would be built by the developer owned private country club (a faded picture is still on the site of the proposed, supposed club house we were going to get). Of course back then, club golf was just an option…

    Pat Gaskill has indicated that the finances, even with our money, will have to be stabilized. So I suspect that the traliers will remain for some time yet.

    Geoffrey Brooks

  4. How do you figure the $2.75M would be “association money”? The equity members are selling the golf course and their equity positions to the SOA for $2.75M, which if concluded makes the $2.75M SGCC money, not association money.

    1. Barry – Terry

      Apparently you have not read the Purchase Agreement. The SOA is NOT buying any equity positions,

      Having no stipulations to the contrary, the SGCC can do what it wants with the $2.75M, even distribute among equity members should they so desire. Also, use to help build a clubhouse as your president once stated was a possibility, or perhaps your financial stability is not as rosy as you imply and use it to pay debts. the $2.75M obviously becomes SGCC money once the SOA writes them the check!

  5. Please review section 10.3.1 of the lease which states that the SOA residents have “access to and use of Tenant’s main dining facilities, pro shop…” and 10.3.4 which states that SGCC may have a member’s only lounge but that if must offer SOA “at least the same menu choices of foods and beverages, and at the same hours of operation, as offered to Tenant’s members in any dining facility; in other words, if there is a member’s only lounge, whatever food and beverages are offered there, must be offered in the main dining facility accessible to SOA Members. Menus at dining facilities may not list different prices for Tenant’s members and non-members.”

    The false “fact” floating around that SGCC would have “exclusive use” of the clubhouse (as stated above in the main post) is very misleading. The only thing that can be exclusive according to this lease is a member’s only lounge, not the entire clubhouse. Tony Fakonas has stated at many of the information sessions that part of the negotiating process was to ensure that residents continue to have access to the club on the same or better basis than we do now. He also stated that buying the 6 acres left out of the current agreement is because it would be almost impossible to build anything on that land due to the CC&R’s without 100% agreement of the homeowners who border that land.

    Again, I urge everyone to read the documents and base their vote on real facts and not conjecture, opinion and rumor.

  6. Beware of the 18% surcharge added to your bill at the restaurant. Adding a 15% tip puts you up 33% and that for a less than high quality meal. I assume the surcharge is still being applied. I stopped going to the restaurant after I discovered it.

    “Members Only Lounge” only adds to the elitist and snobbish atmosphere of this whole matter. Brings back memories of the 1950’s with separate but equal schools. Haven’t we progressed from the mid last century? What’s next, reserved parking spaces for members?

    If the Club and its property are not members of the Somersett Owners Association then they are not subject to Somersett CC&R’s.

    If they are, there is a State law, NRS 116.345(3) which says “an association may not expand, construct, or situate a building or structure that is not part of any plat of the planned community if the expansion, construction or situation of the building or structure was not previously disclosed to the units’ owners of the planned community unless the association obtains the written consent of a majority of the units’ owners and residents of the planned community who own property or reside within 500 feet of the proposed building or structure.”

    Maybe neither the CC&R’s nor NRS apply in this case, but lets have IN WRITING whatever does apply. Personal opinions don’t count in legal matters.

    Association members did not receive a complete copy of what they are voting on. That should be Step One is this whole process.

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