Nevada Day Events

Somersett United
Somersett United

To celebrate Nevada Day, the acclaimed Nevada Museum of Art’s on-going exhibition “Tahoe: A Visual History,” is having a free admission day, Friday, October 30 from 10:00 AM thru 6:00 PM.

The exhibit consists of more than 400 artworks through the eyes of 175 painters, photographers, architects, weavers, and sculptors in the following categories:

  • Native Basketry of Lake Tahoe
  • Historical Mapping and Early Sketches
  • Historical Painting: Lake Tahoe In The 19th Century
  • 150 Years of Lake Tahoe Photography
  • Architecture of The Lake: 1900 To The Present
  • Contemporary Artists Visualize the Future

If you cannot take advantage of the free day, the exhibit will continue to run thru January 10, 2016. The Nevada Museum of Art is located at 160 West Liberty Street.

Also, one should consider the 77th annual Nevada Day Parade in Carson City on Saturday, October 31st. Festivities begin at 8:00 AM with a hot air balloon launch on Carson Street near the Carson Mall. At 10:00 AM, the firing of a canon and a flyover of military aircraft signal the start of the parade, which concludes 3-4 hours later.

For details on both these events, visit the Reno-Sparks Convention and Visitors Authority website at https://www.visitrenotahoe.com and access the “Events” tab.

West Reno Developments

somersett UnitedThe REreno website recently posted an update on proposed residential and industrial developments in the greater Somersett/Verdi  area.  Not to be unexpected, Verdi residents are not too happy over some of the proposed developments. To find out what’s going on, visit REeno’s “West Reno Developments” article at:

https://rereno2.wordpress.com

The REreno website does a pretty good job on keeping up with real estate happenings in the Reno area. If this in your area of interest, suggest you access the “Email Subscription” section of their website and enter your email address to automatically receive notifications of new posts.

 

Somersett Golf & Country Club (SGCC) Financials

Somersett United
Somersett United

To date the Somersett Owners Association (SOA) Board of Directors (BOD) has not seen fit to provide Somersett Golf & Country Club (SGCC) financial data to Somersett owners. They consider it an irrelevant piece of information for Association members, as does the SGCC. However, given the Associations investment in the SGCC (approximately $5M to date) and potential future liabilities, we do consider that the SGCC’s financial health to be of interest to Association members. Especially given that this information is publicly available from the IRS due to the non-profit status of the SGCC. The following table represents the SGCC total revenue and expense data for the years 2010 thru 2014 as extracted from the required IRS Form 990 submittals. SGCC 2015 data will not be publicly available until June 2016.

Year Equity Members Total Revenue Total Expenses Revenue Less Expenses SOA Contribution Notes
2010 188 1,990,652 2,550,940 -560,288 0 1
2011 152 2,087,950 2,715,815 -627,865 0 2
2012 129 2,645,620 2,613,692 +31,928 ~435,000 3
2013 115 2,918,754 2,815,109 +103,645 ~440,000 4
2014 194 2,729,114 2,695,062 +34,052 ~360,000 5
2015 TBD TBD TBD TBD 2,750,000 6

Notes:

  1. 2010  –  Year the Developer (Somersett Development Company) accomplished early turnover to the SGCC Equity Members.
  2. 2011  –  First year SGCC was run entirely by Equity Members.
  3. 2012  –  In late 2011, the Developer controlled BOD voted (without homeowner approval) to divert $15/month of homeowner assessments (i.e., SOA Contribution Column) to the SGCC via a “Lease Agreement” in exchange for some SGCC access amenities. Agreement was to run for three years starting in January 2012 with optional 3 and 4 year renewal periods. Main purpose being to subsidize the SGCC’s operating losses.
  4. 2013  –  In mid 2013, a draft complaint was generated by the Nevada Real Estate Division challenging the legality of the aforementioned Lease Agreement. Complaint alleged the agreement required CC&R amendments and homeowner vote. Complaint filing was placed on hold to give parties time to negotiate a new agreement and CC&R amendments to be voted on by all homeowners.
  5. 2014  –  Last year under original SGCC Lease Agreement, new agreement subject to homeowner vote was negotiated.
  6. 2015  –  CC&R Amendments and SGCC Purchase Agreement approved by owner majority vote. Under the Purchase Agreement, the SOA purchased the SGCC land and water rights for $2,750,000 with a subsequent leaseback of the land and water rights to the SGCC at a base rate of $1000/year (subject to escalation factor) plus an additional rent of $1200/year (fixed amount). Lease term is for 50 years with two 20 year renewal periods at the sole option of the Country Club. The $2.75M was obtained by the SOA via a 15 year bank loan. Under the new agreement, Association members also retain access to SGCC facilities similar to the old agreement.

From the above table it is evident that in 2014, the SGCC made a positive turnaround in the number of equity members.  Although their 2014 revenue decreased from 2013, they also took a slice out of their expenses and appear to be moving in a positive direction. However,  it still remains that without the SOA contribution they would have incurred a net operating loss in 2014.

So how is the SGCC doing in 2015? The SGCC 2015 current financial status and/or year-end projections have not been made public, hence the TBD’s in the above table. Previous indications from a SGCC officer was that part the $2.75M purchase dollars would be put into reserves and part would be used to fund construction of the long-awaited clubhouse. Perhaps someone from the SOA and/or SGCC BOD’s can provide a 2015 SGCC operations update, and how the $2.75M SOA purchase dollars are being utilized to support the SGCC’s financial stability.

BOD Election

somersett UnitedAs most are aware, the Somersett Owners Association (SOA) Board of Director (BOD) positions currently held by Chris Huff and Danielle Kirby (who have chosen not to re-run) are open for election this year. Unfortunately, although widely solicited, only three homeowners have thrown their hat into the ring.  Originally there were five, but two withdrew their candidacy before the first “Meet the Candidate Night”.  The remaining candidates are Glenda Powell, David Nisenfeld and Richard Molezzo.

At the October 18 Meet the Candidate Night held at The Club at Town Center,  Ms. Powell and Mr. Nisenfeld were in attendance to present their case for election and to answer questions.  Mr. Molezzo was absent.  Also unfortunately, the second Meet the Candidate Night scheduled for the Aspen Lodge on October 19 had to be cancelled because two of the Candidates chose to be unavailable.

So where are we?  Owners are currently in the process of receiving their BOD ballots in the mail along with copies of the Candidate submittal forms and optional one page statements.  These Candidate forms and statements may also be accessed by clicking on the following links:

Glenda Powell Board Candidate Statement

David Nisenfeld Board Candidate Statement

Richard Molezzo Board Candidate Statement (Mr. Molezzo did not submit the optional candidate statement)

Homeowners are encouraged to learn what they can about the candidates and to submit their ballots. Anyone wishing to endorse any of the candidates via a letter published on this website may do so by emailing it to somersettunited@gmail.com or via comment to this post.

 

October 12th BOD Meeting Agenda

somersett UnitedThe Somersett Owners Association (SOA) Board of Directors (BOD) will be holding their open Board meeting on Monday, October 12th at 9:00 AM in the Canyon View Room at The Club at Town Center.  Items the BOD will be discussing and taking action on may be accessed via the following link.

October 12th BOD Meeting Agenda

In addition to financial and committee reports the following topics are scheduled for discussion:

  • Under Old Business the BOD will review previous Committee recommendations on extending the pool operations and non-resident participation in social clubs.
  • New Business includes review and approval of RFP’s and Contracts associated with standard Association business.
  • Of particular interest is the review and approval of the 2016 Budget, including proposed special projects, and Reserve Studies for all three cost centers (The Club at Town Center, Common Area /Canyon9, and Gated Areas).

Note: The draft budget up for approval will be presented to homeowners at a special meeting to be held Thursday,  October 8th at 5:45 PM at The Club at Town Center. Presentation is expected to last for approximately one hour followed by a Q&A session.

Homeowners are encouraged to attend and ask questions or provide comments on any of the agenda topics or other issues of concern during the Homeowner comments sessions.