ArrowCreek411

Is your peace of mind to preserve your home value and our community worth $31.00 per month? 

Posted on November 5, 2015 by ArrowCreekTruth

The current loan terms the HOA has negotiated are for $3.3 million amortized over 15 years with an interest rate of 5.0%.  That equates to $26.00 per month per lot for 15 years. The loan may be adjustable but this is the term now so far as we know.

The second question that is asked is “How much will it cost to maintain the land we are buying?” The independent Browning Reserve Study has placed that number at $2.00 per month per homeowner lot through 2018 when a new Reserve Study has to be performed pursuant to NRS chapter 116. See the ACHOA web site for the Browning Reserve study. The total cost for the loan and reserves is $28.00 per month per lot.

The third matter that comprises the $31 is real property taxes which might increase by $3.00 per month per lot. This amount is waiting reassessment and may go down. The real property tax assessment would appear on tax bills and not be added to the HOA dues.

There are two speculative matters, the details of which are not known to everyone, but are completely manageable..

The first speculative matter that is a potential cost to lot owners if the HOA purchases the golf course is if the FOA allows some of the course to go brown. This is called “dormancy.” This cannot happen, if it all, until 2017 per the agreement between the HOA and the FOA.  If dormancy occurs, during or after 2017, the FOA will still provide irrigation. If, for example, the FOA could justify closing 18 holes, then the cost for this would be $80,000 for 90 days, or $74 per lot for the 90 days ($40,000 for 9 holes for 90 days).  It would be up to the HOA Board in place at that time to determine if it wanted to continue or to use the land for some other purpose. These sums are much less than the $575 to $700 per month per lot for 18 holes that had been projected in other communications.

The final potential cost is fuels reduction/mitigation for the golf courses.  This amount has been put forth, again by lesser informed parties, as “cost unknown.”  While the exact cost for this work is unknown at this time, a report conducted for the HOA in 2013 by RCI, an engineering, resource and environmental services company, evaluated both the HOA common areas and both golf courses in need of fuels reduction.  Areas were prioritized based on the highest hazards existing at the time. Only a small portion of the golf courses not covered by existing fairways, parking areas, and buildings were evaluated and listed as fuel reduction priorities. The HOA asked the company doing the report to provide priorities for the golf courses for information only.  A copy of the completed report was provided to the golf course owners at the time.

If the land is purchased by the HOA, a current analysis of those golf course areas identified in the initial report would have to be conducted again in order to re-prioritize the need for fuels reduction on both golf courses. Based on priority level, funds would be set aside to schedule fuels reduction and treatment by priority areas over time. The HOA would also apply for available grant funding to offset costs as the HOA has done to help fund fuel reduction and treatment in the common areas identified in the 2013 report. For example, the projected amount for the identified fuels mitigation of the 81.5 HOA common areas was approximately $100,000. The HOA applied for a State grant, and will receive two-thirds of the amount. (The State grant provided 2/3 of the total funds required for the fuels mitigation and treatment. The HOA had a required match of 1/3 or approximately $34000.) That fuels mitigation/treatment work outlined in the HOA grant application will be completed by the end of this year.

Sources: ArrowCreek ACCC and the Fuels Reduction committee

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

1. A successful 36-hole golf course in our community increases our property values.
   1. Why do you think land/community developers build the golf course before or in parallel with the sale of homes and lots?
   2. Recent University studies and multiple meetings with local realtors also confirm this 
point.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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:
   1. 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;
   2. 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.
7. 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