By ArrowCreek Truth
Question 1: When the FOA bought the golf course, was there any kind of expectation that the HOA would take it off their hands? Or did they buy it, knowing full well that they were taking complete ownership of the risk?
Question 2: What motivated the FOA to buy the golf course?
- The entire motivation of the FOA was to be a bridge between the bankruptcy and the purchase by the HOA, with the expectation that the HOA would buy the Club.
Question 3: If the FOA’s motivation was to make a profit, shouldn’t they list this deal on the open market and invite other bidders to participate and let the high bidder take it?
- The commitment of the FOA was always to offer it to the HOA first.
Question 4: If this is an “opportunity” for the HOA, why wouldn’t the FOA want to keep this “opportunity” for themselves?
- The FOA’s motivation has always been to be a bridge, allowing time for the HOA to explore options. The current option ensures the HOA has control over the land.
Question 5: Did the FOA pay less for the golf course than what they’re asking the HOA to pay to “acquire and control the land assets inside the gate?” Please be specific on the numbers.
Question 6: If yes, then why would the HOA consider buying something for more than someone did recently?
- First, it is important to remember that residents are NOT BEING ASKED TO BUY A GOLF COURSE. Rather, this is an opportunity to purchase the MOST VALUABLE ASSET behind our gate: the LAND beneath the golf course.
- The current proposal is based on the $2.6 million the FOA paid to take the course out of bankruptcy, plus the $1.3 million the FOA expended on repairs and improvements to both the land to be purchased by the HOA and the clubhouse to be retained by the FOA. Negotiators arrived at $3.3 million, which has the HOA paying back some of what was spent on the assets they will acquire and has the FOA having expended $500K on the assets it will retain.
Question 7: If there’s a risk of the golf course going bankrupt without the HOA coming in to do this deal, why isn’t the HOA allowing that to happen? (The HOA would get a much better deal from a bankruptcy court buying a distressed asset, and the HOA’s fiduciary duty is to ALL the homeowners, not the FOA.)
- If the course goes into bankruptcy there is no guarantee there won’t be offers by others who may not have the best interest of the community in mind, as does the FOA.
Question 8: What guarantees do residents have that the proposed $31/month is all that they’ll ever need to pay to support this golf club?
- $31/month is based on: loan payment of $26; reserve payment of $2; and tax increase of $3.
- There is high confidence in $31/month.
Question 9: What studies have been done and shared with the homeowners on how HOA dues affect property values?
- Please see the Pringle study on the ASSOCIA website. On page 5 and in appendix B it discusses the only study to examine this issue and discusses the application of that study to our community.
Question 10: Does anyone else think there’s something silly about paying to acquire the use of a high-maintenance, high-overhead, grass-intensive asset in the middle of a drought?
- The water that is used on the course is reclaimed non-potable.