Ahhhhh! Maybe the ArrowCreek Community will start getting some information now that the FOA has created their own party “ArrowCreek Truth (ACT)” – however, contrary to ACT belief, there is no more attribution or source identification in their material than what the ArrowCreek411 writers have for these “facts.” See for yourself.
Why We Think ArrowCreek Home and Lot Owners Should Vote in Favor of the Proposal
Posted on November 2, 2015 by ArrowCreekTruth
- A successful 36-hole golf course in our community increases our property values.
- Why do you think land/community developers build the golf course before or in parallel with the sale of homes and lots?
- Recent University studies and multiple meetings with local realtors also confirm this point.
- A successful 36-hole golf course is the lowest cost option to having very significant green spaces, which help protect our community in the event of a wildfire. Without the golf course paying to water and maintain the courses, the cost to keep this land green would easily be +$100 per month per lot.
- In the best of worlds, the golf club would already be self-supporting with no concern for its future viability, but this is not the case.
- The Friends of ArrowCreek have paid or are already committed to pay approximately $4 million of the funds they have raised in order to: purchase the club out of bankruptcy, cover the club’s losses to date and provide funding for the repair/improvement of the club.
- The Friends of ArrowCreek have consistently stated that their purpose and objective is to operate a successful 36-hole golf course. But, if a 36-hole golf course does not prove to be viable, then the Friends of ArrowCreek will seek other options to protect their investment, including the development of some portion of the 36 holes of land that they own. Not a certainty they can do so, but it would be a compelling use of the land and a viable option versus bankruptcy.
- The price to be paid for the land could be on the high range when compared to undeveloped land in the county or on the low end when compared to the prices paid for other golf course properties in our area. Either way, at cost of $3.3 million or about $30 per lot per month this proposal gives:
- The HOA control of the land and the certainty it will not be developed upon and will remain a green space (either with the success of the club as the lowest cost option, or with failure of the club and whatever option the HOA chooses at that time) and;
- The Friends of ArrowCreek a better chance for success, as the funding, after paying off $1.2 million in taxes and water district assessments, will help cover losses as they work towards profitability and provide for some limited capital improvements.
- The Club at ArrowCreek has made a dramatic recovery in the last year and has grown from 140 golf members to over 520. They project they will reach their breakeven point during 2016. Hopefully, they will be successful as this represents the lowest cost option for the community to protect our property values and provide important wildfire protection.
We believe it is in the best interest of our community for it (through the HOA) to gain more certainty over the use of the land in question in order to help assure it remains green at the lowest possible cost; and that The Club At ArrowCreek is successful, which will help protect our property values and simultaneously keep the protective green space of the golf course in place.
Joe and Shelly Petite
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Thank you for your proposal. I disagree and wish to address your points.
1. Increase in property values:
Compared to what? All the reports compare homes with and without property lines on a golf course, and those reports are not convincing; but further, they do not address homes on, say, a private nature park.
Aside from that, my property value is more significantly influenced by economic conditions. For me that issue is moot because I do not plan to move. The CC&Rs as they exist today are sufficient for my quality of life, thank you.
2. Lowest cost option for green spaces
Sorry, the Board’s presentation itself showed that simply maintaining green space is cheaper than maintaining a golf course. Can we see the FOA’s financials so that we may evaluate the fixed costs of maintaining the course?
I would support maintaining a nature park that I could use instead of supporting a golf course than I cannot.
3. Golf club is not self-supporting
That is sufficient evidence that it is not a good investment.
If I believe that the golf course does improve my property value, then I benefit if the FOA is successful in running the club themselves, that is, the golf course is a public good. But if it does nothing for my property value, then I get nothing for my investment, the golf course is a private good that I pay for but derive no benefit.
4. FOA committed funds in their bankruptcy purchase
Didn’t the FOA present a plan to the bankruptcy court to take the property out of bankruptcy? Why don’t we wait to see if they are successful before we non-golfers jump in?
5. FOA wants to operate a successful 36-hole golf course
Great. I think that is what their lease with us calls for, so let’s let them execute their plan.
Regardless of what the property’s market value is now, why not wait for FOA to file for bankruptcy before we make an offer? That is what the FOA did to acquire the property themselves, and they probably got a better price from the bankruptcy judge than they would have from the prior owners.
Won’t we be in a better negotiating position when it is the bankruptcy judge on the other side of the table? Perhaps then, there might even be other bidders, and we can avoid a purchase altogether.
7. FOA has made progress
Great. Let’s wait and see how they do on their own before we bail them out.
Here are my questions that remain unanswered:
1. What the sense of urgency is to take action within 60 days?
I’m sure that is important to the FOA, but what is the HOA’s interest in acting so quickly?
I vote to do nothing now, and wait until at least spring to re-examine the issue.
2. Why is the clubhouse not included in the package?
3. What do I get for my “investment” other than to “control my destiny”?
I think I control my destiny with the HOA lease conditions that already exist for the golf course.
I wish to petition the HOA board to take no further action unless or until the FOA files for bankruptcy. If you would like to help with this effort, please email me at KMcK@aol.com.