April 16 email:
Dear ACHOA Board,
Following the ACHOA Board meeting of 14 April a few questions have arisen:
- What is the current Property Tax burden on the ArrowCreek Golf facility? (This should be a matter of public record and does not require FOA to respond).
- What exactly, is the current ‘fee’ that FOA charges for use of their facility to conduct our ACHOA Bi-Monthly meetings? (If the answer is zero/none, do you consider this an ‘ethical’ dilemma? as the ACHOA is trying to work with them on some sort of acquisition.)
- What exactly, is meant by the phrase “Control our own Destiny?” This phrase seems to crop up at every ACHOA Board meeting but to date there isn’t a succinct definition.
Thank you for your time and effort,
ACHOA response is in this linked response and is provided below.
May 1, 2015
Dear Mr. Duncan:
The ACHOA Board is in receipt of your email request for additional information. The following information is provided in response to your specific questions.
- The current property tax for “The Club At ArrowCreek” as disclosed by FOA to the ACHOA Board and the ACCC is $39,700.
- The current fees charged to the ACHOA by FOA for the use of “The Club at ArrowCreek” depends upon the event.
a. The fee for the ACHOA Christmas Party at the Club was included in the food charges which was not specifically disclosed. The Christmas Party charges paid by the ACHOA were $8,165 with additional expense offset for services provided by the ACHOA to “The Club At ArrowCreek”. The offsets vary and can include snow removal of club parking lot and security services. These offsets can vary from year to year.
b. The fee for the Easter Egg Hunt and access to the Easter Brunch for ACHOA members was not specifically disclosed but was part of the costs paid by the ACHOA. The ACHOA paid $1,000.00 for this event.
c. The ACHOA Board Meeting Expenses as of February 28, 2015 totals $1, 833 which includes the charges for printing and other materials for the meetings.
d. “The Club At ArrowCreek” has not charged the ACHOA for use of their facilities for meetings because ACHOA members that are club members have reserved the space for the ACHOA’s use. Any ACHOA member that is also a Club member, like all members of the Club get the benefit of having meetings and company parties with no room charge. This has benefited the ACHOA Administration Budget by not increasing meeting expenses,
- “Control our Own Destiny” is a phrase coined by the ACHOA Board and ACCC to explain their concerns and thoughts about the impact of the 545 acres within the ACHOA community. The ACHOA Board and ACCC believe that the ACHOA community should not suffer the negative impacts to real estate property values now occurring at D’Andrea concerning a property development program as indicated in a recent Reno Gazette Journal articles. If the 545 acres are owned by the ACHOA as common area, the land use falls within the control of the ACHOA Board and the ACHOA Members. As Jack Welch has stated many times as the CEO of General Electric – “Control your own destiny or someone else will.”
Thank you for your questions and commentary. The ACHOA Board works hard to make decisions that are in the best interest of the entire ACHOA community.
Good quote from Jack Welsh. The Board should know Jack left GE in 2001.
With respect to the “Control Your Own Destiny” Comments; the Board is inciting more hysteria by commenting on D’Andrea. There is no empirical data supporting the Board’s claims that closure of the golf course at Arrowcreek would materially impact home prices in the future.
Ron is spot on in his comments. If the purchase of the additional 545 acres is considered, I would bet on the history of the course. The golf course is not self sustaining. If the course is not successful, the Board could entertain a motion to purchase the 545 acres from the bankruptcy estate. Given the restrictions on access and egress, an opening bid at a substantial discount to the appraised value is proper and reasonable. The course would have little value and the HOA members would encumber themselves with upkeep and taxes of the land (not as a golf course). Remember, the Board has the obligation to deal with third parties at an arms length and not consider “Friends”. The price would be a function of the market at that time. I seriously doubt there will be other bidders for a course with the record of Arrowcreek.
Dear ACHOA Board,
Thank you for your prompt response to my inquiries. Here are a few additional facts that should assist your due diligence process.
First, if you were to check the Washoe County Assessors data, you would find that the FOA owns 10 parcels within the ArrowCreek subdivision. Those 10 parcels have an assessed value of $1,399,998.00, which equates to a property tax of $45,362.74. The discrepancy between the Assessor’s data and what was reported to you appears to be one parcel being over-looked as the bill was prepared. However, that wasn’t the point of the question. It was stated that the assessed value of the property, should the ACHOA acquire it, would be spread across all lot owners. That amounts to an increase of each property’s owner would be assessed an additional value by $1,289. Increased property taxes are certainly preferable to ACHOA fees, as they are deductible, but nevertheless painful.
However, that leads to an additional question as to the amount of acreage. Since the 10 parcels equate to 504.8 acres, where did the 544.6 acre number come from? Please explain.
Second, the answer to Question 2 certainly substantiates the article Behind Closed Bedroom Doors: A Free Ride for the Golf Club? with additional details. The intent of the question was to raise and discuss the ‘ETHICS’ of an organization being provided ‘free’ services while trying to determine a reasonable path for an acquisition. This aspect of the question was not addressed. However, the additional insight provided by the response leads to greater insight into the thought process of the ACHOA Board. For instance, “…with additional expense offset for services provided by the ACHOA to “The Club At ArrowCreek”. The offsets vary and can include snow removal of club parking lot and sercurity services. These offsets can vary from year to year.” Security Services are actually paid for through the Club’s ACHOA dues, just like all property owners. So, there shouldn’t be any ‘offset’ for those activities.
Lastly, Question 3 addressed the grandiose phrase of ‘control our own destiny.’ Our ArrowCreek ‘destiny’ is not, and will not, be altered by acquiring an additional 544.6 (504.8?) encumbered acres. Destiny as defined by Webster’s Dictionary is “a predetermined course of events often held to be an irresistible power or agency.” There isn’t any predetermined course of events here. In fact, the continued raising of a failed golf course in a less expensive neighborhood of Washoe County has no bearing on ArrowCreek. We do not have an interface with the city or, for that matter, the county. Our governing documents were designed to allow a private, repeat private, enterprise to exist within our 5 square mile area of influence. Why change this when we have 504 acres of already owned and undeveloped ACHOA property that we’ve done little with? Destiny? Enjoy and improve what we’ve already got. As Julius Caeser said “The fault, dear Brutus, is not in our stars But in ourselves….”
Thank you for your timely responses.
Further clarification offered by the ACHOA Board.
May 19, 2015
Dear Mr. Duncan:
Thank you for your email and follow up questions. The following responses are being forwarded to you for your information.
1. The Washoe County Assessor forwarded a letter to the ACHOA Board on January 20, 2015 and stated that the 2015/2016 Taxable Value of the ArrowCreek Country Club for all associated land and improvements is $4,000,000. The value is currently allocated among specific parcels. According to the Assessor, if the ACHOA through a ballot initiative approves the procurement of “The Club At ArrowCreek” from FOA, LLC, the total taxable value would be allocated equally among all community units (parcels) within the common interest community. The distribution will be over 1,086 ACHOA member lots. It is anticipated that the individual property tax impact along with the property tax cap would create a $40.00 per year tax increase for each ACHOA member.
2. The ACHOA Board, Board Legal Counsel and the ArrowCreek Governing Documents Committee are investigating the total acreage of the potential purchase. Exhibit B of the current CC&Rs indicates that the Golf Corse Area is 551.90 acres but the FOA purchased 544.6 acres from the Bankruptcy Court. This investigation will involve a complete vetting of all Title Insurance Policies concerning past sales and the Bankruptcy Court. The Commercial Center Property that was near the front gate designated within the CC&Rs is the suspected reason for the difference. More information will be forwarded once confirmed.
3. Thank you for your comments concerning offsets. The Board will take your comments under advisement.
4. Thank you for comments concerning “Control our Destiny”. The Board will take your comments under advisement.
The ACHOA Board appreciates your comments and editorials. Regards<
ACHOA Board of Directors