From: email@example.com [mailto:firstname.lastname@example.org] On Behalf Of ARROWCREEK HOA
Sent: Tuesday, January 13, 2015 3:56 PM
To: AMI acservice
Subject: ArrowCreek HOA – Reserve Study for Golf
RE: ACHOA – Golf Acquisition Reserve Study
Dear ArrowCreek HOA (ACHOA) Members:
As part of our due diligence, the ACHOA Board of Directors upon recommendation from the ArrowCreek Community Club Committee (ACCC) contracted for an independent Reserve Study from Browning Reserve Group to provide detailed information for the ACHOA members about potential reserve costs for consideration by the ACHOA members in deciding whether or not to approve the purchase of “The Club At ArrowCreek.” This study is similar to the Nevada Revised Statutes (NRS) and Nevada Administrative Code (NAC) Reserve Studies completed for current assets owned by the ACHOA.
The Browning Reserve Group’s “Independent Reserve Study” provides a thorough evaluation of “The Club At ArrowCreek’s asset replacement schedule and needed Reserve Expenditures or capital improvements over time. The Expenditure Forecast in this study provides (1) current estimated replacement costs, (2) useful life of the assets,and (3) the estimated remaining life of the assets. It provides the ACHOA members with the ability to evaluate the total cash reserves necessary to repair, replace, restore and maintain each major asset wihtin the acquisition. It also provides the necessary information concerning proper funding levels as per the NRS and NAC. The actual cost of this study is being paid for by the ACHOA at a cost of $7,500.
The “ArrowCreek Golf Course Acquisition” Report is available with this email and will be posted on the ACHOA website along with the original ArrowCreek 2014 Update Report prepared for the 2015 Fiscal Year. The ACHOA 2015 Monthly Reserve Assessment is $80.00 per month per ACHOA member. The “ArrowCreek Golf Course Acquisition” Report establishes a $17.00 per month assessment per ACHOA member. This new report indicates an annual aggregate amount of $221,544 ($17.00 X 1,086 X 12 Month) if the ACHOA members vote to acquire “the Club At ArrowCreek”.
The ACHOA Board and the ACCC have been negotiating with Arnold Palmer Golf Management (“APGM”) that the $221,544 be paid to the ACHOA as an expense of the Joint Venture and not be paid by the ACHOA members. If negotiations are successful, this would mean that APGM and the HOA would share in the reserve costs for these newly acquired assets and the costs would come out of the joint venture revenues. The final decision is still pending at this time. The results of the negotiations will be reported to the ACHOA membership when completed.
If the operational vote by the ACHOA membership is to not enter into a Joint Venture, but to just purchase the property, the ArrowCreek Golf Course Acquisition” annual reserve fund would then need to be paid by the ACHOA members through an increased monthly assessment of $17.00.
The ACHOA Board of Directors
Associa Sierra North
10509 Professional Circle, Suite 200 | Reno, NV 89521 | (775) 626-7333
931 Tahoe Blvd., Suite 2 | Incline Village, NV 89451 | (775) 832-0888