Submitted by: Somersett Owners Against the SGCC Purchase Agreement
During the Due Diligence period in which the Somersett Board of Directors are considering whether or not to go forward with the purchase of the golf course, Somersett owners should ask the Board to: Simply deal directly with the Developer in acquiring the reverter land and water rights instead of paying $2.7 million to a small number of golf course equity members, some of whom are not even Somersett homeowners.
Somersett owners have potential claims against the Developer for an amount in excess of $1 million for replacement of unfunded reserves, and approximately $1.2 million for the Developer’s action in committing the SOA to pay the Somersett Golf & Country Club, without a vote of owners, under the SGCC Amenity Lease Agreement. The execution of the proposed SGCC Purchase Agreement means that in addition to giving up the $1.2 million claim, Somersett owners will be obligated to pay $2.7 million to a small number of equity owners of the SGCC. With interest over 15 years, for repayment of the bank loan, our true cost is roughly $4 million.
The Somersett Board has worked with the golf course owners and the Developer in drafting the proposed golf course purchase agreement. The Board has also aggressively campaigned for the approval of the agreement by a vote of owners. In the opinion of many, the Board’s actions in this regard are a blatant display of bias in favor of a small number of golf course equity owners to the detriment of the great majority of Somersett owners.
Financial Gain is a powerful motivator: Equity member owners of the golf course have worked hard not only in getting out the vote to stack the SOA Board with Directors favorable to their interests, but they have also worked aggressively to get out the vote In favor of the proposed SGCC Purchase Agreement. Who can blame them for pursuing a significant monetary reward, but should the rest of us Somersett owners be the ones to pay for this? We think not, especially when there is such a better and far less costly alternative?
The Urgent question is: Will the Board move forward with this costly purchase agreement or will they exercise prudent fiduciary responsibility and decide not to go forward using the release of liability for claims against the Developer, and maybe even a modest cash payment of some type to the Developer, in order to acquire the reverter rights (land & water rights) directly from the Developer? This could save Somersett owners millions of dollars that could be put too much better use.
Voice Your Opinion: Email (email@example.com), call, or write the SOA Board. Tell the Somersett Board of Directors they have a fiduciary responsibility to represent the best interest of the great majority of Somersett owners, and not just the interests of a select few.