Is the FOA getting rich from the sale of the land to the HOA?
Posted on November 2, 2015 by ArrowCreekTruth
Absolutely not. In fact, there are no plans to return any of the $3.3M to FOA investors. The FOA is not making a profit with this sale. The funds not used to pay off the bankruptcy debts will remain in the business to ensure that The Club at ArrowCreek remains a viable operation.
The FOA paid $2.6M (see chart below) to purchase the land out of bankruptcy and pay off delinquent water and tax bills. The FOA has committed to paying these expenses as part of the sale of the land. As much as these investments keep the golf courses playable, these dollars are also investments in the community, preserving the views and open space common to all. The FOA keeps the courses green, providing some protection for our homes from rapid spread of a wildfire. (More on that later.)
In addition to paying the assumed debts, the FOA has invested in much needed infrastructure repairs, maintenance and improvements to the Clubhouse and tent. The roof leaked, much of the kitchen equipment was broken and unusable, and the tent was ripped and torn. The FOA has invested additional money to return the Club at ArrowCreek to viability.
It is important to note that the clubhouse is a valuable resource for the entire community:
- All residents are invited to attend the HOA Christmas party held in the clubhouse every year.
- The Art Guild, which is completely separate from the golf club, has been hosting a couple of art shows per year featuring all ArrowCreek resident artists. The shows are open to the public and very well attended.
- ArrowCreek resident children enjoy the Easter egg hunt every spring.
- The HOA uses the clubhouse for board meetings, because the Resident’s Club doesn’t have room for all attendees at the moment.
- Political candidates hold forums at the Club, open to all.
- There are birthday parties and business meetings, which nonmembers attend.
Even though ownership of the clubhouse land is not part of the deal, the clubhouse is a community resource, maintained at no cost to residents. It is a valuable asset to the entire ArrowCreek community.
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Wow….Money Pit….Every kind of possible liability…HOA non golf club members able to hang out at the Club two times a year with people that don’t want them there…
Do we at least get KY Jelly for bailing you out?