Facts Not In FOA Letter

Posted on September 25, 2015 by arrowcreek411

Still no facts have been given to back the FOA satements. Just more and more statements. Most ArrowCreek HOA members do not become “believers” just from intense attempts to brainwash with repeated over and over mantra statements when there are no facts given to substantiate them.

Redlines to FOA Letter

Posted in ACHOA, ArrowCreek, ArrowCreek HOA, ArrowCreek411, FOA, FOA Letter, Friends of ArrowCreek, Uncategorized | Tagged , , , , , , , | 1 Comment

Chairman of Friends of ArrowCreek Member Managers Sends Letter

Posted on September 25, 2015 by arrowcreek411

Pestello Letter:

To The Club at ArrowCreek Members:

Most importantly, we want to thank you for your membership and support of The Club at ArrowCreek. You are the ones making the Club a success and your continued support will guarantee a bright future. We want you to know that we are committed to maintaining the Club as a fine private club with very active social and golf events for your enjoyment.

We would also like you to know that the Friends of ArrowCreek (FOA) and the ArrowCreek Home Owners Association (ACHOA) have reached an agreement in principle. In general, the arrangement is for the FOA to sell the acreage that comprises the 36 golf holes to the ACHOA and lease them back. We will retain the remaining acreage where the clubhouse, putting & chipping greens, driving range, maintenance area, and pump house are located, as well as some ancillary land adjacent to these areas.

Once the details of the agreement are documented, the contemplated transaction will be subject to an approval vote by both the FOA investors and all ArrowCreek lot owners. We believe the agreement will be beneficial for our property values, the health of our community, and the Club. This has always been our goal – to protect the integrity of our investments in our homes and community. We believe the Club is an integral partner in achieving this goal.

As we work with the ACHOA to provide information for the residents to con-sider, there will most likely continue to be rumors and misinformation distributed by people that do not have or who misrepresent the facts; many who are anonymous. Please disregard these misrepresentations and rely on the facts from those of us who have the first-hand knowledge of the agreement; the members of the FOA and ACHOA.

In the weeks ahead we will be following up with more information and the ACHOA will be holding town hall meetings to ensure factual communications are provided prior to voting.
Again let me state, we are and will remain a very active social and golf club, fully committed to our members and our community.

Thank you again for your membership and support,

Gary W. Pestello

Chairman, Friends of ArrowCreek Member Managers

Posted in FOA, FOA Letter, Friends of ArrowCreek, Golf at ArrowCreek, The Club at ArrowCreek | Tagged , , | 6 Comments

Open Letter to ACHOA BOD From Another ArrowCreek Homeowner

Posted on September 25, 2015 by arrowcreek411

To the ArrowCreek board:

As a homeowner in ArrowCreek, I am very concerned about the Board seeking the purchase and lease back of the ArrowCreek golf courses.

I am not sure why the AC home owners are being held hostage by the ArrowCreek board and (Friends of ArrowCreek) FOA. In my opinion, they are not our friends.

Anyone who spends my money for their investment is neither my friend nor neighbor. As for FACTS, these are the facts below. Hard numbers! Not the esoteric jargon and babble others seem to produce. It is not the responsibility of the home owners of ArrowCreek to bail out the FOA. Let the FOA file bankruptcy as have all the previous owners of the golf courses. After the bankruptcy, the ACHOA can then decide what needs to be done with the property. If nothing else, it can be purchased for a fraction of the price the ACHOA board has negotiated with the FOA.

The threat seems to be if the ACHOA does not buy the club property from the FOA, the golf course will go brown and the FOA will sell the property to developers?

The solution should be the FOA operate the golf course and club as a profitable business. It is the responsibility of the FOA to make a viable business of the golf course and not have the Home Owners subsidize a business that cannot support itself.

Perhaps the FOA needs to look to its member with an initiation fee for the golf and social members, raising the yearly dues and eliminating the free rounds of golf offered to friends of members. If this is not feasible to retain members, then the course should fold.

Priorities change and golf is an activity enjoyed by fewer individuals. Currently, the majority of golfers are older. Gen X, Y and Millennials have found other activities and golf is not their priority.

A statement by Sam Fox is: “The ACHOA and ACCC will not recommend significant monthly assessment increases to the membership where the increase will become a detriment to the community.”

How is a 30% to 40% ( a 13.8% increase with an additional increase if the FOA shuts down 18 holes, that increase would then be an additional 19% to 24%) increase in ACHOA dues become an ‘insignificant amount?’

Another statement by Sam Fox also goes on to say the board will not make decisions that will be to the detriment of the community. How can he commit to this with the future ramifications discussed below:

If the golf course is purchased according to the proposal, the following seems a ridiculous trade for the ACHOA but a great deal for the FOA!

  1. How was the purchase price negotiated?
    • If someone buys a property from a bankruptcy, the sellers (FOA) should take a significant loss.
  2. The ACHOA would ‘own’ the land under the golf courses and lease it back to the FOA for use as a golf course
    • However, by purchasing the land the ACHOA would inherit the responsibility for fire mitigation and any environmental issues which the FOA has not done anything with so far.
  3. The FOA gets $3.3 Million cash infusion.
    • What they do with that cash infusion is not available to the ACHOA since the FOA is an LLC and a private entity
  4. The ACHOA buys the property and leases it back to the FOA for $20,000 per year
    • The board would not charge the current $15,696.00 per year assessments to the FOA.
    • The lease payment of $20,000 per year from the FOA is only an increase of $4,304.00 per year on what the FOA is currently paying the ACHOA for using our roads and security.

So in summary, the ACHOA:

  • Purchases the golf courses from the FOA for $3.3 million
    • Leases the courses back to the FOA for $4,304.00 more a year than they currently are paying in Association fees
    • According to the ArrowCreek board there would be an increased assessment to all ACHOA property owners of approximately $300,000.00 to $880,000.00 or more a year under the board’s proposal (This is based on approximately 1,000 homeowners in ArrowCreek, paying an additional assessment of $30.00 to $88.00 per month)

This is a great deal for the FOA!

For only $4,304.00 per year, the FOA:
1. Pays off their loan
2. Pays a very strong return to its investors
3. Runs the course for a few years and then files bankruptcy
– Because no matter what professional management company operates the club, it will not bring back non-existent golfers.
4. The FOA, as an LLC, has no personal guarantees and can walk away leaving the ACHOA with a bankrupt property

For the ArrowCreek home owners:
1. We are stuck with a large loan
2. A bankrupt facility
3. Large taxes, environmental issues, fire mitigation and water charges
4. Home values would decline and home owners will have a difficult time selling their homes due to the exceptionally large debt and expenses of owning a bankrupt property.
5. If we try and sell the property, the ACHOA will take a large loss since the ACHOA is a non-profit corporation.
6. When the burden falls on the ACHOA , ALL property owners will have to reach deep into their pockets and pay off the loan(s) under Nevada law.

I am not sure why we are concerned about additional development. Current ArrowCreek bylaws would prohibit apartments and substandard housing.

This is a great deal for the FOA and a very poor business proposition for the ACHOA!
The board should have the FOA take the financial loss and leave the ACHOA out of the process.

All the board is doing is kicking the can down the road to an inevitable problem we are facing today but at an exceptionally large cost to the home owners.
In my opinion, the board is in dereliction of its fiduciary responsibility to protect the ACHOA from undue expense and future financial burdens.

In my opinion, the ACHOA board should be held personally libel for the poor decisions in continuing this doomed process and for the future problems and expenses incurred.
Also, in my opinion, the law firm advising the board has errored in its opinion that nonpublic meetings could and did occur under the guise of non-disclosure. The ACHOA has paid for their services, thus is the client of this law firm, and all information should be made public to all ACHOA members.

In my opinion, due to the exceptional benefits for the FOA and the very expensive costs for the ArrowCreek Home Owners, one or more of the ACHOA board members are not dealing at “Arms-Length” and have a conflict of interest in their dealing with this issue. One only look at recent and past events where very powerful individuals and organizations thought they could elude detection (Hillary Clinton, Volkswagen, Enron, Arthur Anderson and a host of legal firms) but were detected. It was either a weak link in the organization, fear of prosecution or a guilty conscious that unraveled the situation.

Sincerely,

Peter Linstroth, A True Friend of ArrowCreek Homeowners

Posted in ACHOA, ACHOA BOD, ArrowCreek HOA, ArrowCreek411, Bail Out Golf Course, FOA, Friends of ArrowCreek, Golf Course Foreclosure, Golf Course Purchase, HOA BOD, Homeowner Questions | Tagged , , , , , , , , , , , | 3 Comments

Control YOUR Destiny!

Posted on September 24, 2015 by arrowcreek411

By ArrowCreek Resident

Control of YOUR Destiny: VOTE !

It has been said time and again that purchasing the golf course property would provide us homeowners’ control of our destiny. The initial HOA meeting regarding the options of purchasing the entire golf club with golf courses and club house and alternatives of use (the “let it go brown”, “keep it green”, and “operate as a golf course”) took place over a year ago. For the first five years, the brown version was estimated to increase the monthly HOA fee by about $73, the green version by $135. Now, one year later, it is proposed that we buy only the 36-hole golf course property, which would increase our monthly HOA fee by $33/month to pay off the purchase of the property, property tax, and the increase in Reserve assessment. In case the FOA should decide to downsize, just keeping 18 holes of the golf course property watered and mowed, is estimated to further increase our HOA fee by about $48-$59/month, (that comes to about $580K – $700K/yr for the HOA). That would be a total increase of $81 – $92/month per homeowner. The added cost of fire mitigation is yet to be determined.

The FOA/HOA board team has not published any financial data, business plan, or financial prognosis for the golf course. As of now, we the homeowners have no idea what we will be getting ourselves into if we purchase the golf course property. Under the current proposal, the two courses are going to be legally separated from their organizational and infrastructural hub: the club house and the pump house. These assets will be owned by the FOA. In case the FOA decides to downsize to 27 or 18 holes: what non-profit use can we make of 9 or 18 holes of golf course? The discussion regarding repurposing of the land and related costs would start all over again. For all we know, the golf courses might be circling the bankruptcy drain. We then have the option to purchase the remaining assets from the FOA. There was no discussion about any other exit strategy. The dispute about what to do with the property would start all over again. We would go back to discussing how to change our Articles of Incorporation and our community from a non-profit to a for profit community if we wanted or needed to operate the golf course, unless we find a buyer. There has not been an interested buyer for the golf course since before the bankruptcy last year.

The ACCC and ACHOA board members have been asked numerous times to provide the background for the cost estimates for the different options of owning or using the golf course property, but the questions have been left unanswered. The ACHOA board also did not provide any details as to their process of elimination, giving us the background data and dollar figures that led them to the current conclusion that the purchase of the GC property is the ONLY option. The “do nothing” option was dismissed without further explanation or justification. The request to evaluate alternative options brought forward by AC residents was denied.

We also are not privy to the details of the proposed contract between the HOA and the FOA. The request to be informed about the details of the negotiation process, particularly the purchase price, was denied at the 9/16/15 meeting. Based on a comment made by Gary Smith , ACCC member, former ACHOA president, we do know however, that we would be paying above the purchase price for the property, and above fair market price. Rich Kenny did not confirm in the HOA meeting on 9/16/15 if the purchase price was based on an independent assessment. It is a basic fiduciary obligation of the board to ensure that the cost to homeowners is minimized.

Is the understanding then that control of our destiny means:
• Homeowners are stuck with the golf course property and unlimited financial liability for infrastructure replacement, while the FOA essentially walks away with a profit from the sale and no financial responsibility for the course infrastructure aside from routine maintenance
• The FOA and AC golfers retain their golf privileges at essentially no cost due to HOA subsidization
• The FOA has absolute autonomy to close 9 or 18 holes of their choice at our increased liability
• The FOA retains every option in their favor to sell or walk away from their assets and no option for the HOA to GET OUT when it’s clear it’s not in our favor to hang on under the guise “We’re controlling our destiny.”
• Homeowners have to accept that once the HOA owns the golf course property, the ACHOA BOD can still raise the monthly fees by up to 15% each year and ask for special assessments without input or a vote from homeowners because the promised limit of raising the HOA fee to no more than $300/month only relates to the initial purchase of the golf course property.

It is clear that we homeowners have not been in control of the process that has brought us to this point. With a yes vote our financial destiny would be contingent on the uncertain golf industry. Our destiny would depend on the FOA’s ability to make the courses profitable which has never been the case. The current proposal is open ended and does not provide a permanent solution. With all this in mind, why are we forced into this conundrum? Gary Smith, ACCC member, former ACHOA president, made a key observation during the 9/16/15 meeting when he said: The ACHOA board has no obligation to bring this proposal to the HOA for a vote. But here we are: asked to vote on the GC purchase proposal within about 60 days. We can voice our concerns and opinions talking to our neighbors, writing to this website, or during the upcoming town hall meetings. In the end, casting our vote is about our only chance at controlling our destiny.

Control YOUR ArrowCreek Destiny: VOTE !

ArrowCreek Resident

Posted in ACHOA, ArrowCreek, ArrowCreek HOA, ArrowCreek411, Bail Out Golf Course, Control Destiny, Control Our Destiny, FOA, Friends of ArrowCreek, Golf, Golf at ArrowCreek, Golf Course Purchase, Vote | Tagged , , , , , , , , , , , | 2 Comments

ACHOA BOD Seeking Owner Input on Draft CC&R and Bylaw Revisions

Posted on September 24, 2015 by arrowcreek411

ACArrow2

Re: REVISION DRAFTS OF THE CC&Rs (COVENANTS, CONDITIONS AND RESTRICTIONS) AND BYLAWS READY FOR OWNER INPUT

Dear ArrowCreek Owner,

The proposed draft updates to the HOA Bylaws and CC&Rs have been prepared by the ACHOA Governing Documents Committee and are ready for ACHOA homeowner input. A 30 day review period, through 10/25/15, has been allotted. The final drafts with a summary of changes, the redlined versions and the original documents are all posted on the http://www.arrowcreek-hoa.com website, sent via email to those residents on the approved ACHOA email list, and linked with a click right here on ArrowCreek411.

CLICK HERE TO VIEW/PRINT THE CCRS FINAL DRAFT WITH SUMMARY OF AMENDMENTS

CLICK HERE TO VIEW/PRINT THE CCRS FINAL DRAFT REDLINED VERSION

CLICK HERE TO VIEW/PRINT THE BYLAWS FINAL DRAFT WITH SUMMARY OF AMENDMENTS

CLICK HERE TO VIEW/PRINT THE BYLAWS FINAL DRAFT REDLINED VERSION

To submit your comments on the DRAFT revisions, PLEASE EMAIL: ACHOAGOVDOCS@gmail.com

The Bylaws and CC&Rs have not been updated since the beginning of ArrowCreek. As such, the Governing Documents Committee has been chartered with updating the Bylaws and CC&Rs to remove the Developer (Declarant) and update the documents to the current Nevada law. A summary of the proposed changes was presented to the ACHOA Board at the August 18, 2015 Board meeting. Please refer to the September/ October ACHOA Newsletter for additional information on what was updated and why.

The updated version of the Bylaws and CC&Rs do NOT incorporate any changes for any golf property (non-residential property) purchase. The HOA needs the current changes regardless of who owns the golf property. To enact these proposed changes, a majority (50%+1) vote by the ACHOA membership will be required. Because this will be a huge effort to obtain the required votes, the Governing Documents Committee and the Board will determine when the best time will be to place these documents on an ACHOA ballot.

The above email address has been created specifically for feedback on these documents. This is the way that input from homeowners will be accepted. There is a 30 day review period. Input will not be accepted after Sunday October 25, 2015. We suggest reading the Final Draft with Summary of Amendments first. Compare that to the original document if you have questions. Then refer to the Redlined Version (the redlined document can be confusing, but is posted for your reference).

The Governing Documents Committee will review all input, but will not respond to individual comments. Any material changes the committee agrees to make will be summarized and disseminated as appropriate. Thank you in advance for your time and continued interest in the ACHOA!

Note: The updated version of the Bylaws and CC&R’s do NOT incorporate any changes for any golf property (non-residential property) purchase. The HOA needs the current changes regardless of who owns the golf property. To enact these proposed changes, a majority (50%+1) vote by the ACHOA membership will be required. Because this will be a huge effort to obtain the required votes, the Governing Documents Committee and the Board will determine when the best time will be to place these documents on an ACHOA ballot.

Sincerely,
The ArrowCreek HOA Board of Directors and Governing Documents Committee

Please sign up for ArrowCreek HOA email distribution if you haven’t done so yet!

Original Documents and Papers:
Articles of Incorporation
Bylaws
AC Bylaws 1st Amendment June 1998
AC Opinion- Roberts Rules vs Bylaws 5-19 and 3-3-15 Opinions
CCRs-Covenants Conditions and Restrictions-CURRENT

Posted in ACHOA, ACHOA BOD, ACHOA Bylaws, ACHOA Governing Documents Committee, ArrowCreek HOA, CC&Rs, HOA BOD | Tagged , , , , , , , , , | 3 Comments

UPDATED: Notice of October 6 Special ACHOA BOD Meeting Agendas

Posted on September 23, 2015 by arrowcreek411

ACArrow2

Dear ArrowCreek Owner,

ACHOA SPECIAL BOARD MTG-Open Bids for 2016 Contracts
Tuesday October 6, 2015 5:00 PM-5:45 PM
Location: ACHOA Residents Club

CLICK HERE TO VIEW/PRINT THE SPECIAL BOARD MEETING AGENDAS FOR 10/6/15. The purpose of this meeting is to open vendor contracts for 2016. Contract decisions will be made at the November 3, 2015 board meeting. Information on management company questions is at the back of this document.

The Administrative Committee is interested in property owner input and/or questions pertaining to management company selection. Please bring your questions to the meeting! Thank you in advance for your time and continued interest in the ACHOA!

UPDATE from the Chairperson of the Administrative Committee HERE

Please sign up for ArrowCreek HOA email distribution if you haven’t done so yet!

Posted in ACHOA, ACHOA BOD, ACHOA Vendor Contracts, Special ACHOA BOD Meeting | Tagged , , , , , , , , | Leave a comment

Fixing Polluted Golf Courses – Costs $$$$

Posted on September 22, 2015 by arrowcreek411

Effluent water is recycled sewer water. It is not potable (not for drinking, not for bathing, not for cooking) water. It is not used IN hospitals. Here is the Washoe County’s Requirements and Schedule of Rates and Charges for provision of Reclaimed Water Service Ordinance No. 1299. Duly note Articles 3.1; 3.5; 3.10 and 3.20 reproduced here for your reading pleasure.

WC3-1
WC3-5WC3-10aWC3-10bWC3-20

So, squishing around in flooded greens or watching the excess flow into the storm drains is not the proper use of effluent water.

Here in “Northern Nevada Water Planning Commission Agenda Item 8 Effluent Management Strategy” are the percentages of reclaimed water usage in Washoe County. The pertinent paragraph is highlighted in yellow starting at the bottom of the document’s page 3 and finishing at the top of page 4.

Poisoned Golf

Poisoned Golf by Steve Herzog

ENVIRONMENTAL IMPACTS BY GOLF COURSES

Polluted golf course Page 1 of 2

Polluted golf course Page 2 of 2

Toilet to Tap Water

Saving Water by Changing the Mind Set

Posted in ArrowCreek411, Effluent Water, Fertilizers, Herbicides, Pesticides, Poisoned Golf, Polluted Golf Courses | Tagged , , , , , , , , , , , | Leave a comment

Water Line and Sprinkler Head Replacements – Leaks!

Posted on September 22, 2015 by arrowcreek411

Ka-ching!! Ka-ching!! Ka-ching is only part of it……..the use of effluent water is all goodness; HOWEVER, effluent water LEAKS are considered contamination — that the ‘owner’ of the property will be and is responsible for!!!!!!!!

ACGCarrowACGCnote
CGCS

Posted in Contamination, Effluent Water | Tagged , , , , , , | 4 Comments

September 21 2015 FACT Update From the Washoe County Assessor Records

Posted on September 21, 2015 by arrowcreek411

Here are September UPDATED ‘FACTS’ from the Washoe County Assessor Records since the Aug 22, 2015 ArrowCreek411 posting August Fact Update: Here Are Facts:

  1. ArrowCreek properties are still selling at a premium to those in Sparks and the North Valley as previously reported in our August 2015 update.

    a.) Sixty eight (68) properties were recorded sold in ArrowCreek between 17 December 2014 and 4 September 2015 (This according to the Washoe County Assessor).

    b.) Sixteen (16) of those properties were on the golf course (the property boundaries actually touch the golf course, not just have a ‘view’ of it). Twelve (12) of those were homes with an average selling price of $230.51 per square foot. A very modest 40 cent ($0.40) gain over August. Four (4) were vacant lots with an average selling price of $207,104.47 per acre. A 9% rise from the values reported in August.

    c.) Fifty two (52) properties sold that are not connected to the golf course. Forty two (42) of those properties were homes with an average selling price of $236.71 per square foot. This represents no change from the August figure. Ten (10) properties were vacant lots with and average selling price of $154,143.69 per acre. This represents a 2% decrease from the August values.

    d.) Homes that do not have a boundary with the golf course continue to sell at a premium to homes actually on the golf course. As noted last month the gap is remaining constant between the two categories.

    e.) Vacant lots, however, are still selling at a premium if they have a common boundary with the golf course. This value has again widened over the past month as market forces seem to be driving the difference between the two categories in general.

    f.) The trends for our property values indicates that over the past four months of tracking the values of homes off the golf course are trending to match those on the golf course, as shown in the chart below.


    2. SeptSalesChart

  2. With the ACHOA Board proposal now on the table it will be interesting to see if there’s any effect on the property price values as the ArrowCreek development heads toward a vote.


    3. Given ALL of the above ‘FACTS,’ do we really need this additional burden? Especially when we’ve done nothing to enhance the property we already own and no proof, only a belief, has been offered to justify the impact to home values, which appear to be following the market.

    Let’s focus our energy on improving the amenities we currently have and expand those amenities, by using our already available acreage and funding.

    If you wish to support The Club at ArrowCreek, you’re urged to become a member.

    By Ron Duncan


    Updated from Aug 22, 2015 posting August Fact Update: Here Are Facts…

    …which updates the July 27, 2015 posting July Fact Update: Here Are Facts…

    …which updates the June 26, 2015 posting June Fact Update: Here Are Facts…

    …which updates the June 4, 2015 posting You Want Facts: Here Are Facts.

    June 2015 Study on Golf Course Closure Impacts On Home Values in Northgate and D’Andrea.

Posted in 89511, ArrowCreek, ArrowCreek411, Golf, Golf at ArrowCreek, Home Sales, Home Values, Property Value | Tagged , , , , , , , , , , , , , , , , , , | Leave a comment

Wine and Trains ArrowCreek Neighborhood Get Together

Posted on September 17, 2015 by arrowcreek411

This Saturday, September 19th, from 5:30-8:00 PM, Hawley MacLean & Jill Savery invite you to their home at 3438 Nambe Dr. to enjoy an evening of Wine and Trains. Here’s the invitation: WineTrains091915

Feel free to bring wine or hors d’oeuvres to share!

winetrains

Posted in ArrowCreek, ArrowCreek411, Train Evening | Tagged , , , , , , | 1 Comment