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Somersett United

Somersett United

The SOA, SGCC and SDC principles have reached an agreement on purchase of the Country Club land and water rights. This agreement has been posted on the association’s mysomersett.com website.  In general, the proposed agreement does not deviate significantly from the previously issued letter of intent.  For reader’s convenience, the Purchase Agreement document may be accessed via the following link.

Country Club Purchase Agreement 

Two homeowner information sessions on the Purchase Agreement have been scheduled as follows, no date has been set for a homeowner vote.

  • The Club at Town Center, Wednesday, August 20 at 5:30 PM
  • The Aspen Lodge, Tuesday, August 26 at 5:30 PM

In Summary, the proposed Purchase Agreement provides for the following:

  1. Purchase price is $2.75M, payable upfront
  2. Purchase includes approximately 220 acres of land and existing golf course maintenance building. Excluded from this purchase is the land and structures (approximately 6 acres) upon which the SGCC will build a clubhouse (reportedly with the $2.75M).
  3. Purchase includes certain water rights and water facilities consisting of water pump stations, water wells, related piping, irrigation system, etc.
  4. A new Water Facilities Agreement between the parties will replace what currently exists.
  5. The current Developer land & water reverter rights, should the property cease to operate as a golf course, will be terminated.
  6. Via a Lease Agreement, the SOA will lease back the land to the SGCC for continued use as a private golf course. Lease will be for $1000/year (subject to annual Consumer Price Index adjustment) for an initial term of 50 years with two twenty year SGCC renewal options. An additional rent of $1200/year (non-escalated) will also apply.
  7. If the SGCC fails to operate the property as a championship golf course, then the SOA has the right to terminate the Lease and assume full control and use of the property.
  8. The SGCC will pay for all utilities, taxes, insurance and maintenance costs as long as it occupies the property.
  9. During the Lease period, Somersett homeowners will have access to the following SGCC amenities:
  • Use of dining room (excluding SGCC member lounge), pro shop, and bocce ball courts with no fee (i.e., use subject to same costs as for SGCC members).
  • Ten dollar a day fee for use of SGCC member driving range, free use of back (synthetic surface) driving range.
  • Four foursome rounds of golf a year at prevailing SGCC member guest rates.

Detailed legal descriptions for the Property, Easements, Water Rights, Water Facilities, Lease Agreement, Water Facilities Agreement, Property Deeds and Bill of Sale are all attached as Exhibits to the Purchase Agreement and accessible via the above referenced link.

The above represents a very important step for all Somersett homeowners and should not be taken lightly.  Homeowners are encouraged to familiarize themselves with the details of the proposed Purchase Agreement, attend one of the information sessions and voice your opinions.  Comments on this website are also encouraged.

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Comments on: "Country Club Purchase Agreement" (5)

  1. Joe Bower - Del Webb Owner & Member SOA said:

    Regarding the Affordable Care Act, Nancy Pelosi said: “We have to pass the bill so you can find out what is in it, away from the fog of controversy.”

    Is she on the Somersett Board? No wonder the Board is so desperate to have passed the first of the four CC&R amendments which extends the State Law allowing a 20% quorum of owners to vote in person or by proxy at a meeting to our CC&R’s to apply to ballots cast by mail. The “Real Property Purchase Agreement and Joint Escrow Instructions” among the private Somersett Country Club, Inc., the Somersett Owners Association, Somersett Development Company Ltd., and Somersett LLC that all owners will vote upon is one hundred and eleven (111) pages long!

    Most owners will vote yea or nay based upon what they think the Agreement & Instructions say/mean with only a few having actually read them.

    The Board president has said that indeed all owners will be able to vote. However, if the quorum amendment first passes, only a majority (10% +1) of the 20% of owners making quorum and voting yea is all that really matters. Lack of understanding and voter apathy lead to owners not voting which means a smaller number of actual voters can get something passed that may be detrimental to the overall majority of the community.

    The CC&R Amendments must not be passed. If you haven’t yet voted, please vote “Disapprove.” The Agreement & Instructions need to be passed by 50% +1 of all eligible votes. The vote needs to be one-time with no extensions.

    • Bob Perkins-Del Webb said:

      I agree with Joe, vote diaspproved on the CC&R admendment. Any changes that effect the community should have to pass by 50% plus 1. Right now the developers that own vaccant lots can get changes passed that will make it easier for them to sell their properties at the cost to the present residents. Also there should be no extension to voting deadline right now we have a moving target controlled by the Somersett board.

  2. Jeanne Hughes said:

    It appears in essence that we are building a 2.75 million dollar clubhouse for SGCC. And in return the SGCC will pay us $2200/yr and let us use its restaurant, bocce court, pay $10 for the driving range, and give us four rounds of golf per year at member’s prices. Why does this not seem to be a good exchange?

    The whole idea of purchasing the golf course to me is ludicrous when there are so many other things that need to be accomplished by the SOA that would appeal to future homeowners, far more than a golf course. How about beefing up the hillsides so when it rains the hillsides do not erode, i.e., for example, and the ones I am aware, Somersett Parkway around the park area – second, third and fourth roundabout, and the hillsides on Autumn Ridge. When the parkway sprinklers go on the mud already caked on the blacktop and cement walkway turns into a river of mud and makes it difficult to walk.

    Also the Canyon golf course entrance from the second to the third hole is completely rutted and hard to maneuver. Needs to be graded or blacktopped.

    The above should all be addressed before we consider buying a golf course.

    • Mike Slattery said:

      BOTTOM LINE

      Do we as Somersett property owners want to have control over what happens to 224 acres of land in the middle of our community or not?
      If you want control, vote YES for this deal
      If you do not want control,or you just don”t care, vote NO for this deal

      Purchase 224 acres of land (Northgate land is appraised at +/- $2.8M
      Purchase 411 acre feet of water rights which according to Geoffrey Brooks is currently worth in excess of $2.0M (Value of water rights will only continue to increase.)
      Eliminate the Developers reversion rights if the golf course fails

      All this with NO INCREASE in HOMEOWNERS dues because of this transaction. The cost of $2.7M will be financed over 15 years at an interest rate of approximately 5%.

      I have heard and read a lot of thoughts on this issue but I have not seen ONE POSITIVE ALTERNATIVE

      • Geoffrey Brooks said:

        Hi Mike

        I did my own research, several entities with the knowledge of “water rights value” buying and selling provided input. Anyone can call and ask.

        I am by no means an expert, but I believe the information I have shared with the HOA is accurate. A fact is that Lakeridge GC (recently bought to be run as a Public Golf Course) paid $5400/AF.

        We live in the desert, water is a finite resource, our aquifers are slowly being emptied (we are good for another 7 years according to TMWA). Given the intensity of the California drought and that Lake Tahoe is now at the lowest level allowable for water to flow into the Truckee R, we should all be conserving as much as we can. I worry about what the future holds.

        The water permits we will be acquiring are basically for Trucklee R water. At the moment none is available. The CGC should be considering reducing the size of some of the larger fairways – emulating Clark Co. The same is true for C9. If there is no water avaiable for recreational use, the golf course will die.

        Somersett is an extraordinary community in that we homeowners have recently taken over from the master developer who has left us burdened with $8,000,000 of debt (We are buying the TCTC and C9 from him).
        The SGCC has been given (paid for through equity members dues?) a CGC, which due to the master developer’s reverter rights means that they really dont own anything, they can’t properly leverage their assets. The “deal to buy the CGC” allows the monetization of the SGCC’s assets and gets the developer out of the future of Somersett.
        For another $2.75 million we will finally be independent, the SGCC can continue to grow their Private Country Club and build a Club House. Wewill all own the CGC and the all important water rights.

        Yes, getting rid of our master developer is expensive, but I am sure in the long run it is well worth all the money the poor unsuspecting Somersett owners (some play golf as well!) have to pay if we decide to move forward when voting on this expense.

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