Why Not Acquire the Somersett Developer’s Reverter Rights to the Golf Course Land and Water Rights Directly From the Developer?

 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 (soa@mysomersett.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.

EMAIL AUTHORIZATION

Submitted by:  Joe Bower, Del Webb Owner and Member SOA

On page 16 of the January/February 2015 issue of Somersett Living magazine it is stated: “If you would prefer to receive electronic mailings in lieu of hard copies for Association DOCUMENTS, please email soa@mysomersett.com with your name and address. In the email body, include the following: “I authorize Somersett Owners Association to send me all COMMUNICATIONS electronically in lieu of hard copies.” “Documents” and “all communications” are not the same.

Please don’t be mislead. State Law NRS 116.31068 states: “an association SHALL deliver any NOTICE required to be given by the association under this chapter to any mailing or electronic mail address a unit’s owner designates.”  However, DOCUMENTS ARE NOT NOTICES and must be US Mailed or hand-delivered. “US Mailed” means to a street or post office address.

The Somersett Homeowner Information Sheet available at The Club at Town Center (TCTC) states under SOA EMAIL AUTHORIZATION: “YES, I (We) hereby authorize the Somersett Owner’s Association and its agents to notify me (us), as the owner of the above property of the Somersett Owners Association, by electronic mail format for all Association NOTIFICATIONS as required by the Nevada Revised Statutes116.3108 in lieu of the US Mail.”

The Info Sheet and the Magazine Statement do not jibe with each other. The Magazine Statement does not jibe within itself. Both need to follow NRS.

In addition, State Law NRS 116.12065 states: “If any change is made to the governing documents of an association, the secretary or other officer specified in the bylaws of the association SHALL, WITHIN 30 DAYS AFTER THE CHANGE IS MADE, prepare and cause to be hand-delivered or sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit’s owner, a copy of the change that was made.” Note: “Mailing address” means street or post office address, not email address.

Please be aware that our master association made changes to our Aesthetic Guidelines at the August 27, 2014 Board of Directors meeting with an effective date of October 27, 2014. A copy of the changes themselves has not yet been received by owners, except by those making a special request for them. Until owners receive the October 27, 2014 Guidelines by hand-delivery or US Mail the changes contained therein are NOT ENFORCEABLE. All owners, especially those putting in exterior improvements, e.g. landscaping, and their contractors need to be aware.

It is important that the Association get the 2014 Guidelines distributed to owners as there are a lot of changes. The May 18, 2012 Aesthetic Guidelines booklet was 51 pages long.  The October 27, 2014 Aesthetic Guidelines booklet is 58 pages long.  The one-page NOTICE dated September 24, 2014  that unit owners received announcing changes had been made does not take the place of the additional 7 pages fully describing them. A copy of the 2014 Guidelines can be picked up at TCTC. You might call first (775-787-4500) to make sure a copy is available.

Putting documents (such as Guidelines, Policies, CC&R’s, Bylaws, Rules, etc.) on a CD can be cheaper than printing them. The Association should ask owners their preference as to CD or hardcopy when the Homeowner Information Sheet is next updated.

Oh yes, why the hand-delivery option.  Well there are many smaller, especially condo type, associations where the changed document can easily be hand-delieverd door-to-door.

I want of our master and sub-associations to use electronic mail (and CD’s) as much as possible. However, what the law requires to be hand-delivered or sent by US Mail MUST be hand-delivered or sent by US Mail.  The law MUST be followed and the law does not care how much it costs an association to comply. Like the Dez Bryant “catch,” follow the rule/law until it is changed.

THE USE OF SOME CAPITAL LETTERS IN THE ABOVE IS FOR EMPHASIS.