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|
- Year in which the Somersett Development Company accomplished early turnover of the SGC to its Equity Members.
- First year in which the SGC was run entirely by Equity Members.
- 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.
- 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.
- 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
- 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: