The Somersett Owners Association (SOA) Board of Directors (BOD) has issued a “Letter of Intent”, signed by all parties, for a new agreement with the Somersett Golf and Country Club (SGCC). Due diligence by all parties will take place over the next few months before a final agreement is in place. Several homeowner meetings have been scheduled to present the case for the new agreement. The first being held at The Club at Town Center on November 23 with about 40 attendees. Subsequent meetings are scheduled as follows:
December 4, 2013 – 5:30 PM at The Club at Town Center
January 14, 2014 – 5:30 PM at the Aspen Lodge.
Subsequent 2014 dates to be announced.
Both the Letter of Intent and the presentation slides used at the November 23 meeting are available on the mysomersett.com website. They may also be accessed via the following links:
The basic premise of the new agreement is that the SOA will purchase the SGCC property (approximately 220 acres) including all water rights and distribution system for $2.75 million. The SOA leases it back to the SGCC (50 years with two 20 year renewal options) for a nominal fee ($2200/yr). The SGCC continues to operate it as a private country club (cannot go public) paying all operating and maintenance costs related thereto. If it ceases to operate as a golf course, the SOA takes over the property to do with as they see fit. During the lease term, SOA homeowners will continue to have access to SGCC amenities, which will be pretty much as now except residents can play 4 times a year (at guest rates) instead of the current 2 times a year, also free use of the “association” driving range or the member driving range for $10/day. It is estimated that homeowner assessments to pay off a $2.75 million loan will be less than the $15/month going to the SGCC under the current agreement. The new agreement will be subject to “homeowner ratification”.
Unlike the current agreement, the proposed replacement obviously has its merits in that the SOA will receive some payback for its investment in the SGCC. However, it does raise the following questions:
1. What constitutes homeowner ratification?
2. What will the SGCC do with the $2.75M?
3. In the event of SGCC failure, what will it cost the SOA to maintain the SGCC property as common space and how would this affect future assessments?
4. Is a CC&R amendment required for vote on the new agreement?
All are encouraged to access the above documents, read them carefully, attend the homeowner meetings and submit any questions you may have to the BOD via email at firstname.lastname@example.org. Questions and Answers will be posted regularly on the mysomersett website.
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