Sierra Canyon, Somersett, Villages, The Vue – Your Community Forum

The following table represents a summary of the Somersett Golf Club’s (SGC) revenue and expense data for the years 2010 through 2016 (i.e., as extracted from their required IRS Form 990 submittals). Given the Somersett Owners Association’s (SOA) investment and liabilities associated with the Real Property Purchase Agreement (i.e., as entered into between the SOA and SGC in late 2014), the SGC’s financial health may be of interest to many Association members.

Year SGC Equity Members SGC Total Revenue SGC Total Expenses Revenue Less Expenses SOA Revenue Contribution Notes
2010 188 1,990,652 2,550,940 -560,288 0 1
2011 152 2,087,950 2,715,815 -627,865 0 2
2012 129 2,645,620 2,613,692 +31,928 435,000 3, 4
2013 115 2,918,754 2,815,109 +103,645 440,000 4
2014 194 2,729,114 2,695,062 +34,052 360,000 4
2015 220 995,670 2,581,250 -1,585,580 2,750,000 5,6
2016 241 2,611,329 2,664,450 -53,121 0  

 

Notes:

  1. Year in which the Somersett Development Company accomplished early turnover of the SGC to its Equity Members.
  2. First year in which the SGC was run entirely by Equity Members.
  3. In late 2011, the Developer SOA Board voted to divert $15/month of homeowner assessments to the SGC via a “Lease Agreement” in exchange for some SGC access amenities. Agreement was to run for three years starting in January 2012 with optional 3 and 4 year renewal periods. Purpose being to offset SGC operating losses.
  4. SOA Revenue Contribution column represents the approximate revenue the SGC received in 2012,2013 and 2014 from the SOA under the Lease Agreement described in Note 3 above. 2014 was the last year under this agreement after being declared improper by the Nevada Real Estate Division.
  5. In late 2014, a SGC Real Property Purchase Agreement was approved by SOA owner majority vote. Under this agreement, the SOA purchased the SGC land and water rights for $2,750,000 with a subsequent leaseback of the land and water rights to the SGC at a base rate of $1000/year (subject to escalation) plus a fixed rent amount of $1200/year. Lease term is for 50 years with two SGC optional 20 year renewal periods
  6. The SGC 2015 negative revenue less expense amount primarily due to the $2,750.000 sale price income (see Note 5) minus a reported sales expense (asset loss) of $4,294,781.

For those who may wish to delve into the revenue and expense financial details (e.g., memberships, golf operations, food & beverage, employees, etc) as well as assets and liabilities, a copy of the SGC’s IRS Form 990 may be accessed via the following link:

SGC 2016 Form 990

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Comments on: "Somersett Golf Club 2016 Financials" (8)

  1. So, we kicked in almost $4 million to keep these 7urds afloat! They must be entitlement Democrats.

    • Maybe you would rather the golf club fail so your home values plumet like what happened at D’andrea? And actually most of the members are card carrying republicans. And BTW, what is a 7urd?

      • Reply to Bob! said:

        Bob,

        I firmly believe he vast majority of Somersett residents DO NOT want the Country Club to fail, and as you point out, because of the potential impact on property values and green space issues.

        However, I also believe that Mr. Rhodes, along with many others, do not want to continue to subsidize the Country Clun financially through their SOA assessments. The Country Club needs to put their Big Boy Pants on and assume complete responsibility for their financial well being, and, if need be, assess their own members for financial shortfalls and not look to the SOA for a bailout. This is the entitlement attitude Mr. Rhodes refers to.

      • Geoffrey Brooks said:

        Bob
        D’Andrea is not a good comparison to Somersett. Without a golf course and a decrepit Country Club building – property values (as measured from 2004) are now higher than the ortiginal purchase price…

        At best in Somersett we are at 90% of pre-great recession values (especially for golf course views)

        D’Andrea is a sub $500K community offering value and quality residences for families. Somersett is mixed “build”, few houses now under $400K, with probably over 1500 higher end houses built (or to be built eg the 160 Toll Brotehrs houses in Village 6),

  2. Old Joe Clark said:

    They are subsidized golf enthusiasts, just like our President!
    Make America Great Again!

  3. The country Club can increase dues to members or have the members pay for shortfalls. The members are right they do not want their home prices and golf club to fail. They all are willing to pay tens of thousands of dollars to keep the club going. The club manager and president are willing to take pay cuts to save the club. Pay your way or step aside and let a professional run the club. Increase the value of the club not decrease the value.

  4. Dan Kanyr said:

    SGCC has several avenues to pay for the repairs that do not involve SOA. 1. As noted they can make a special assessment from their members. 2. They have assets, club house and parking lot, that can be taken to a bank and used as collateral to take out a loan. There is really no reason for SOA to be involved in this at all. The CCRs make it clear that SGCC is a separate legal entity from SOA. The SOA Board has a fiduciary responsibility only to SOA members.

    • I would certainly agree with Kanyr’s conclusion. To date the Country Club has acquired approximately $4M of Association money through previous lease and purchase agreements. Enough is enough, they need to put their big boy pants on and accept responsibility for their own financial obligations, which I hope they do regarding the rock wall failures on their leased land (i.e., in compliance with the lease agreement terms)

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