Here are the first two installments of frequently asked questions (FAQs), updates, and the ArrowCreek HOA/Communications Committee responses to those questions now available for your reading pleasure. If you have any issues with working with the document, please do not hesitate to contact the webmaster via email at arrowcreek411@gmail.com for help.
ACHOA Frequently Asked Questions and Answers (FAQ) I — First Installment — (01/04/15)
ACHOA Responds to a Resident’s Further FAQ Questions (from January 24, 2015 posting on ACHOA Associa Website as [second] part of Member_Letters_and_HOA_Responses).
AC Board – Feb 8 2015 Corrections To Previous Statements (02/13/15)
Frequently Asked Questions and Answers (FAQ) II — Second Installment — (02/26/15)
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Special assessment: first of many?
So finally the cat is out of the bag: the ACHOA concedes that in addition to an increase to our monthly HOA fees a onetime assessment of $ 1600 to $1800 to buy the Golf Club property, or up to about $ 2500 to also pay off the outstanding water bill, may be needed. We already know that the Club House kitchen failed the safety inspection and is in need of repairs and upgrades. We already know that the Club House roof and parking lot are in need of repairs. We already know that the golf course has been neglected, and in addition to the costly general upkeep of the turf and irrigation system, it will require more money to bring it up to par. So in my opinion, there is no doubt that there will be many more special assessments.
I agree with the author of the synopsis and Shawn T., that there is reason to wonder about the impartiality of the whole Joint Venture process. We know the current HOA Board, has a Golf Club member, Joyce Seeler, and another new member, Mr. Alan Liebman, who practically lied on his application, denying that he lives close to the golf course, and denying that he may have a conflict of interest. It appears that from the beginning the HOA Board has doggedly pursued the Joint Venture, and already spent and committed large sums of our money to that end. Where is all that motivation coming from?
I agree with the CNA concern about the value and intent of the property valuation study: there already is enough research on this topic. Is it just a way to justify the board’s actions as Ron Duncan says, because the real question should be how will a high, uncapped monthly HOA fee, and uncapped capital calls affect our property values. Another study ordered by the HOA Board is the demographic or census survey: why not send out survey questions by email blast or letters. Or ask us personally during town hall meetings? Why spend thousands of dollars for something so basic? All of this seems to be more than a case of “perception” is reality, and I am curious how it will play out in the future.
What bothers me the most, is that we have been put in the situation to vote on the Joint Venture, or any other option to own the Golf Course property in the first place. One way or another, it means going into business with former litigants, Golf Club members, who are still friends with the litigants, and who allowed them to ruin the Club Corps deal years ago which was of no risk to the HOA. Now they are proclaiming to be “friends of ArrowCreek” by turning to us, holding out their hands to bail them out of the mess they created for themselves. I have a hard time believing that this gesture is altruistic at all. If the FOA had any hopes of selling the Golf Club for profit they would do it in a second. By selling it to the HOA, they make a quick and easy return of 12% on their investment, and they can keep on golfing. The Golf Club will have a guaranteed monthly income from the added HOA fee, and pretty much a guarantee that all the financial needs of the Golf Club will be covered by us, because we will need to keep it running once we buy into it. The added bonus of selling the Golf Club to the HOA, is that they can keep manipulating things in their favor by manipulating the board. Buying just the land of the Golf Course as some suggest, in my mind, will also entail unforeseeable financial and legal risks, perhaps to a lesser degree. Why can’t we just sit tight and see if the FOA and Arnold Palmer can make a go of it?
Work often does not allow me to come to HOA meetings, but I have been trying to keep up with the developments within our community by talking to neighbors, and by relying on the Associa Site. Especially with this very important issue, I have found the posting of HOA meeting minutes to be delayed. Even the HOA Board’s own FAQs were posted on this site earlier than on the official Associa site. (And we pay Associa for this kind of service?). This website gives me, and hopefully others, another source for information, and the opportunity to have our voices heard. I appreciate the opinions voiced in other entries on this website and the work of the CNA. Thank you to the webmaster and to all concerned neighbors of Arrowcreek. I hope the HOA Board is reading and listening.
Ellie
P.S: Question to the webmaster: Has there been an answer yet to the notice of violation of voting procedures? Was the answer of Mr. Burkett on 12/29/14 on this website a official HOA position? (see December 2014 archives: responses to: An HOA is a Nonprofit Organization for Many Reasons). Thanks again.
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Hello, Ellie,
Yes, Mr. Duncan has received an answer from Associa that the complaint is on the February 24 ACHOA Board meeting. Since Mr. Burkett ‘ s Dec 29 response does not start out exactly like the ‘official responses’ of the ACHOA Board that are blogs in their own right, I am not sure of the answer to your second question. Until I can find out and respond here, or until he does here, please take it as an informed response only. None of the ACHOA Communications Committee members are sitting ACHOA board members except for Ms. Seeler as the ACHOA Board Representative. However, Mr. Burkett has been on the board and so has much information. He has tried to be very careful not to be taken as the board spokesperson at this time.
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Thank you for the clarification. If there is a call for volunteers, will it be announced on this site?
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I agree Ron. If I could get a deal for 12% profit on every dollar I lost in an investment, I would be all over it. No limit to how much I throw at it. What I neglected to mention was, the Residents Club should and could stay just that. A club for residents only. I don’t care if we lease the course for a dollar a year until the golf entity can make a profit. As long as the asset is maintained.
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I too would take a short term gain of 12% anytime I could get it. However, that can of worms is barely open. Our Articles of Incorporation appear to prohibit any member of the corporation, that’s all of us property owners, from making a profit from each other due to a change in our originating documents. IF that’s the case then the transaction would be ‘no fee’ to the property owners of the FOA. That topic will be on the next ACHOA Board meeting based on the Concerned Neighbors of ArrowCreek (CNA) complaint letter.
Ron Duncan
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Mark,
This is an excellent concept. However, the ACHOA Board seems hung up on doing a Joint Venture with Arnold Palmer Golf management and ‘making the FOA’ whole. The Concerned Neighbors of ArrowCreek have been attempting to get the ACHOA Board to remove their blinders and re-consider other alternatives, so far without much luck.
Ron Duncan
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As we all know, debt is a killer to long term financial health. I can imagine very few owners and residents of Arrow Creek are interested in being in the golf business. Having some control of the 544 acres and clubhouse would be a good, but comes at a price.
Has anyone considered a one-time $2500.00 (approx) assessment to purchase the club and lease it back to APG or another golf enterprise? The lease could be negotiated to include all improvements, taxes, insurance and maintenance is the responsibility of the lessee. (triple net) No profit needs to be realized by the HOA. The HOA keeps the land and the GC remains solvent.
I think most owners could find a way to come up with the cash instead of paying 5% interest for 30 years. Saving many thousands of dollars in interest and no “cash calls” or fee increases anytime the board feels the need.
I look forward to hearing your thoughts
Regards
Mark Brady
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Below is the ACHOA response to my question regarding paying cash and leasing the facility without being partners in a for profit joint venture.
In my opinion paying over a million dollars in interest to be “fair” just in case an owner sells their property is absurd!
If we are to believe previous claims that our property values will decline dramatically if the course closes then the one time cost is well worth the investment.
It appears to this homeowner that the ACHOA is determined to convince the masses that we need to vote to pay future monthly payments and subsidies forever, and the only possibility of success for the GC is to be all-in on a joint venture, including giving away our Residence Club. I see little in the way of alternatives offered or consideration of other suggestions.
While I will continue to listen and study with an open mind, I for one am not convinced.
I encourage everyone to read all the information and form your own opinions.
Mark
ACHOA Response:
Dear Mr. Brady:
“The ACHOA Board thanks you for your question. The ACHOA Board and the ArrowCreek Community Club Committee (ACCC) are conducting their due diligence and vetting of the potential acquisition of “The Club At ArrowCreek”. The ACHOA Board and ACCC are examining numerous options to fund the acquisition as part of the business deal that the ACHOA members will be able to vote upon in the future. Your questions are very timely and appropriate.
The ACHOA Board and ACCC have been reviewing the Nevada Revised Statutes and the ArrowCreek Declarations of Covenants, Conditions and Restrictions, Section III – Assessments – Section 5 Special Assessments with Board legal counsel. The question being pursued is whether a “Special Assessment” approved by the ACHOA members for the acquisition of “The Club At ArrowCreek” would be allowed. If we estimate that the purchase price is between $1,600,000 to $2,000,000, that would require a one-time assessment per lot owner of $1,473.30 to $1,841.62. [1,086 ACHOA lot owners] However, there is still the need to fund the past due water bill of almost $900,000 and that would increase the special assessment by $828.73. With these types of numbers, there may be a need for some type of a payment plan and a need for short term capital to make such a purchase.
In addition, the ACHOA Board believes that it is unfair that current ACHOA members pay 100% when future ACHOA members will receive the benefit without participating in the funding. The ACHOA Board is more inclined to spread the payments over time so that all current and future ACHOA members pay the loan costs out of the ACHOA operating monthly assessments.
An estimated loan amount of $2.5 million includes the $900 thousand water bill stretches out the principal and interest payments and it can be absorbed within the ACHOA monthly assessments to ACHOA members. The $2.5 million loan amount at this time is speculative and being used as a talking point with lending institutions. There are many variables in determining the loan terms including the following:
· Actual Purchase Price Range
· Period of repayment 15 to 20 years with banks preferring 15 years
· Interest Rate 5% to 6%
· Adjustment periods if any
· Loan fees
The best deal for the ACHOA members will be negotiated by the ACHOA Board and the ACCC concerning the acquisition if approved by the ACHOA members ballot initiative.
The ACHOA Board and ACCC agree if the ACHOA members agree that the ACHOA acquire the 544.6 acres of land with improvements and to operate “The Club At ArrowCreek” that the ACHOA lease the golf property and the residents center to the Joint Venture that would operate both properties. The terms of the lease have not been negotiated at this time but your thought of a “Triple Net Lease” have been discussed. This sounds like a very solid business decision to protect the assets of the ACHOA if the members approve the purchase and operation of the golf course.
If you have any further questions, please let the ACHOA Board know and we will be glad to respond as quickly as possible. As more information develops during the due diligence process, it will be forwarded for your review.”
ACHOA Board of Directors.
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This is the first time the ACHOA has expressed an interest of pushing the burden of todays decision onto future residents of ArrrowCreek. Mr. Brady’s perspective, although not the favorite of the FOA owners, deserves significantly more study than that provided by the ACHOA Board. If for one second they, the ACHOA Board, don’t think that the Joint Venture will attempt to make a profit from every aspect of their holdings, then they are very foolish people indeed. Imagine paying to swim, schedule a tennis court, park, eat in The Club or drink in the club. The future that’s painted is not so bright and sunny without the property owners shelling out $$$$$$.
Mr. Brady’s idea is a cheaper solution without endangering our life style.
Ron Duncan
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Here is the copy of the official post (just as Mark posted above) of the ‘official’ ACHOA response to Mark.
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