Is $3,300,000 a Fair Sales Price?

By Rick R. Hsu

FOA wants homeowners to buy the land, minus its most valuable parcel, for $3,300,00.

  • FOA paid cash and assumed debt of all golf course assets for $1,972,398 (Source: In re: Aspen Sierra Leasing Co., U.S. Bankruptcy Court Case No. 14-50087, Dkt. Nos. 144, 132-1, 154, 158).
  • Dayton Valley Golf, Dayton, NV sold for $750,000 in May, 2010, and Sunridge Golf Course, Douglas County sold for $1,000,000 in December, 2012. The low sales prices were based on the lack of positive cashflow and low net income (Source: William Kimmel & Associates, MAI)
  • At the Special Board Meeting on September 16, 2015, Rich Kenney stated it made no sense to have an appraisal of the land because the golf course was not making money.
  • FOA has paid its attorneys thousands for representation in the bankruptcy proceedings and loan issues and may have suffered golf course operating losses during the past year to show it will not profit from this purchase. However, FOA is unwilling to open its books for inspection.


BASED ON THESE UNDISPUTED FACTS, IS $3,300,000 A FAIR SALES PRICE?

Rick R. Hsu

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This entry was posted in ArrowCreek, ArrowCreek 411, ArrowCreek411, FOA, Friends of ArrowCreek, Golf at ArrowCreek, Golf Course Purchase, Golf Purchase and tagged , , , , , , , , , . Bookmark the permalink.

2 Responses to Is $3,300,000 a Fair Sales Price?

  1. Pingback: ArrowCreek Golf Course – Crunch Time | Somersett United

  2. Bob Kirtley says:

    Rick has reiterated what many of noted previously. The HOA members should be aware that the costs they bear not only go the to FOA;
    -interest paid to the bank at 5% totals $1,397,314 ( interest rate is Board estimate)
    -the interest rate is not locked at this point
    -an increase of 1% in the interest rate would cost the HOA an additional $315,195
    -we have not received an estimate from the Board on the fees we have to pay the bank in addition to interest expenses
    -the interest rate is not fixed for the term of the loan. Per Sam Fox, the interest rate will can change over time
    -Most economists believe interest rates will rise as the economy improves

    Like

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