September 25 Aspen Lodge Meeting

Meeting Recap Posted by Geoffrey Brooks  – Somersett Homeowner Attendee

Report on Dan Kanyrs Presentation on the Issues with the $2.75 Million SGCC Purchase Agreement Contract

September 25, 2014 at the Del Webb Aspen Lodge

Summary of Presentations Key Points

  1. What are we buying? The proposed legal agreement aka Transaction states that we are buying the golf club property. Nowhere does it say that if and when the private club fails that we can convert it to green space, develop it for non-golf uses, or sell off any excess water rights. To make matters clear a paragraph should be added we can close the 18 hole golf course, convert to green space, sell off water rights, property etc.
  2. If the Country Club members control the Somersett Board and with the newly approved changes to the CCR’s (mail-in quorum method of voting), they can vote to continue operating the Club, raising our dues whenever necessary. The default on failure should be that the property is converted to open green space.
  3. There has been no independent valuation of the property, reverter rights, and water rights – so owners can understand the value of what we are getting. The Board has been fiducially negligent.
  4. The Board contends that golf courses add value to everyone’s property in Somersett. There is no independent report to confirm this. An analysis done by a Somersett owner shows that D’Andrea resale values with a closed golf course have recovered better than those in Somersett with an open one. Somersett resale values are lagging behind Reno’s. Somersett owners who live opposite Northgate have not lost any more home resale value than those who live on the SGCC or Canyon9. Facts from Washoe Country assessor records.
  5. The proposed purchase ‘legal agreement’ (and lease back) states that the water rights are only for the 18 hole golf course. This means the SOA cannot sell off any excess to reduce Association debt. A Country Club report says they use all their 410 Acre Feet for watering the private golf course. We live in a desert and there is an ongoing drought. There is no certainty about the availability of water. The value of water rights fluctuates greatly. If there is another recession and the private Club fails, the water rights could be worth less than we would have paid for them.
  6. The General, Common, and Canyon 9 will go from a debt/equity ratio of 69% to 420%.
  7. Section 3.9 – added after the proposed agreement was first made known – gives the developer a “get out of jail free card” and we as members of the Association forfeit any potential claims to the $1.0 million already paid to the Country Club.
  8. The current agreement with the Country Club expires of December 31, 2014. The Club claims to be doing well. There is no reason for it to receive continued support from Association members.

READ MORE, Click on  –  September 25 Aspen Lodge Meeting

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