As most know, the Somersett Owners Association (SOA) Board of Directors is still controlled by the Somersett Development Company (SDC) with Blake Smith being both President of SDC and the SOA Board of Directors. It is Somersett United’s (SU) contention that the SDC has exhausted its right to control the SOA and appoint members to its Board of Directors. Under Nevada State Law, the period of developer control ends 60 days after 75% of the number of units that may be created have been conveyed to owners other than the developer. SU believes that this “trigger” has been reached.
The current approved number of units for Somersett is 3,062. Approximately 1,900 homes have been built and owned by individual owners and there are approximately 515 un-built lots owned by developers/builders other than SDC. This represents 79% of the approved 3,062. Thus the 75%figure has been surpassed. The SOA Board has refuted this contention relying on the Somersett CC&R’s, which state the developer has a right to create a maximum of 5,000 units and has not yet reached 75% of that limit. However, records at the County Assessor’s office indicate that SDC does not own enough land on which to build the remaining number of units. In order to create more units, SDC would have to purchase/annex more land and go through a lengthy planning process and receive approval from the Reno City Council. This is unlikely given the financial condition of the SDC.
In light of the preceding, SU has urged SDC to relinquish control of the SOA Board to duly elected homeowners and in doing so expand the number of director positions to five instead of the current three. SU believes this is warranted due to the size of the SOA and its associated complex operations and finances. SU has also requested that the SOA Board reference the appropriate documents along with parcel numbers to support their contention they still control enough units to retain board control. To date they have not provided such information, nor a specific timetable for relinquishing control.