To further address this issue perhaps it is worthwhile to consider what is going on in our sister community Arrow Creek. There is currently a proposition before Arrow Creek residents to purchase the Arrow Creek Golf Course. Although they are currently in a somewhat different situation than we here in Somersett, some of the issues are similar and what Arrow Creek residents are facing is not an improbable situation for Somersett. That is, there is nothing in the Somersett BOD proposed CC&R Amendments and Country Club Purchase Agreement that would preclude a subsequent BOD decision to either provide additional funding to the Country Club or, in the event of default, to assume operation of the Country Club, with either eventuality being financed via homeowner assessments and, depending on the assessment amounts, without a homeowner vote. The current BOD has stated that neither is their intention. However, can they speak for future BOD’s, or alternatively how much trust can we put in this statement. Given the disingenuous manner in the way the BOD conducted the CC&R and SGCC voting process, this trust is questionable.
To see what Arrow Creek residents are saying we encourage readers to visit the Arrow Creek website at www.arrowcreek411.wordpress.com, wherein many pro and con articles addressing HOA ownership of golf courses can be accessed. Specifically under the “Blog Summary”, “Voices to the Webmaster” and “Online Articles” tabs.
Articles of particular relevance to the Somersett Country Club purchase issue can be found under the “Concerned Neighbors of Arrow Creek Discussions” link. Under this link, SU recommends viewing the Power Point presentation entitled “Should the HOA invest in a Golf Course”, which can also be viewed on this website by clicking on the following link (this is a very lengthy presentation, so allow a minute or two for download):
The above is a very informative presentation. It addresses not only the Arrow Creek Golf Course purchase issue, but alternative options for community improvement that could represent a better use of funds. Many of the questions addressed in the presentation have been raised by both proponents and opponents of our own Country Club Purchase Agreement. Questions that, to date, have not been adequately addressed by the Somersett BOD. Hopefully to be considered before completion of their due diligence period.
It is the Somersett BOD’s assertion that they are not interested in the Somersett Country Club itself, but only being able to control what happens to the Country Club property and hence, acquisition of the Developers property reverter rights should the Country Club fail. Given this, it is fair to question why the BOD did not attempt to negotiate an agreement with the Developer directly for the reverter rights, rather than purchasing the Country Club properties for $2.75M ($4M with interest) to achieve the same result.
Do not be influenced by the BOD’s assertion that, under the proposed Country Club Purchase Agreement, your assessments will not be affected. Perhaps not immediately, but here are no downstream assurances to this assertion, particularly given the BOD’s apparent bias to support the Somersett Country Club. Yes, the agreement has now been approved by a majority of homeowners, but it is not yet a done deal. The BOD can still terminate the agreement anytime during the due diligence period for any reason.