Round Table
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| For a printable compilation of Q&A on the Amenities and Village property purchase (click here). | ||
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Questions and Answers: |
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6/24/10 Q: Will Non-Equity members be allowed to attend "Monday Cookouts and Friday Nighters?" The draft of the By-Laws indicate that they would, but in the information session held last Monday, the 21st, it was stated that only Equity members would be eligible to participate. A: The by-laws draft is in error and will be corrected in its final form. One must be an equity member to attend the Monday Cookouts and Friday Nighters. It is the equity members who will be purchasing the facility from BMDC. |
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6/23/10 |
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6/21/10-2 Q: Could you provide a copy of the current operating budget as well as a proposed operating budget for next year that would identify the sources of revenue to meet the operating budget? This information would be helpful in determining the likelihood of operating deficits.
A: This information will be presented on the website by July 1st. |
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6/21/10-1 Q: If it were necessary to increase the size of the mortgage as the result of a shortfall in collections, would the amount of the annual membership dues that goes into the "Capital Development Fund" have to be adjusted upward from the presently proposed $75 or would the $75 amount remain the same and the length of the payoff time of the mortgage be extended?
A: There is presently no intent to increase the $75 annual contribution to the Capital Development Fund and that if it became necessary to increase the size of the mortgage, it would simply mean that the mortgage payoff time might be extended from the current estimate of approximately seven (7) years. |
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6/19/10 Q: We have (3) properties - 2 Houses. How many memberships do we have to purchase? If we are members, do our guests have the same benefits that we as members have?
A: You would need to purchase one equity membership that would then be attached to a single property. The other two properties will be brought into the program when you sell them and the new buyers join as equity members. Your house guests will be eligible to participate in the amenities activities just as they are able to at present. If one of the properties is used as a rental unit and you want the guests to have rights to the amenities, then an equity membership would be required for that property as well. |
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6/15/10 Q: 1-Will the Equity Membership $$ be returned if the deal is not completed? 2-If the deal is not completed and BMDC sells to another buyer, what type of development is permitted on that site (e.g. any zoning restrictions, covenants, etc.)? 3-The $1.1 million agreed price is described as a significant discount from appraised value. What is the appraised value and/or discount? 4- Is it possible to be an equity member but pay for amenities ($350-500?) as an annual decision?
A: Thank you for your questions and they are answered respectively as follows: 1. Yes, all funds are held in escrow and will be returned should the purchase not be completed. 2. The zoning of the property per Madison County is Resort Residential. It could be developed for many uses, including multifamily housing. 3. The appraised value of the assets we propose to acquire is $1,589,000 and was completed in December 2009. 4. A required annual fee will be necessary to insure a viable amenities program for all members. The greater the number of members involved increases the opportunity to hold or even lower the annual amenities fee. Please review all the questions received to date related to the property and amenities purchase (click here and use your browser back arrow to return to this page). |
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6/6/10-4 Q: For those property owners who become equity members, if they sell their property, the purchaser would be required to purchase an equity membership at the cost at that time (which could be considerably higher than the initial $1,900). I propose that equity members be able to transfer their ownership to a purchaser rather than the purchaser having to pay the higher future membership cost. If not, potential purchasers of equity members' properties would have a considerably higher cost than if they purchased a non-equity member's property (assuming they do not want to participate in the optional amenities program).
A: The paper submissions have been written as a redemption arrangement; however one can treat the arrangement as a transfer as well. Either way, as it best suits the individual, is acceptable to the WLPOA. One option prevents the fee from entering into property sale negotiations; a benefit to the seller and the other option allows the seller and buyer to negotiate. A bylaws revision will reflect the allowance of a maximum yearly 3% increase should it become necessary. It is the intention of the Board to hold the $1900 entry fee for several years. |
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6/6/10-3 Q: The amenities should certainly be a part of Wolf Laurel, but it is important that this be done in a way to prevent dividing our community into those who "have" access and those who do "not have" access as this will be an asset to all property owners. It appears that the WLPOA will be contributing almost 30% of the total cost; however, there is only one building which will be able to be utilized for the entire community. A suggestion would be to increase annual dues (as in any POA community) and have the amenities available to ALL property owners. Access to the tennis courts and pool may be an additional fee and higher dues, perhaps as a "tennis/swim membership" or "premier membership”, since the costs associated with maintenance and insurance are higher. The "Naming Rights" is an excellent way to raise initial funds and I commend the board for this avenue.
A: The WLPOA will be the sole purchaser and owner of the Village and amenities program. The setup will be a “pay as you go” arrangement for all members whether an equity member or non-equity member in that equity members get more because they pay more. Our current covenants do not require compulsory participation in the amenities as is done in many POA communities. Had our covenants been written differently, then your suggestion would be logical and have merit for consideration. |
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6/6/10-2 Q: In reading the "Plan" it seems that lot owners in The Preserve have the right to use the amenities in the Village. Will these owners have to pay membership and/or annual fees or dues?
A: Preserve lot owners do pay a substantial assessment and in theory part will go towards the development of their own amenities program. Although they have a deeded right to our amenities for 6 years, the loss of their amenities fees was negotiated into an up front lower price for the WLPOA. Yes, they can join the WLPOA, but not as equity members. |
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6/6/10-1 Q: I want to participate as an equity member, but will not be able to pay all at once. Is there some help available here?
A: The Board has authorized a down payment of $300 with the remainder due in twelve monthly payments of $140. This does involve a built in minimal finance charge necessary as the Board will have to borrow the money to accommodate the convenience. |
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6/5/10-2 Q: I am concerned of assessments and there not being any controls or limits.
A: The Board has addressed assessments in the proposed bylaw changes as follows: 1. Increases in the amenities operational budget will be prorated among its members and they are expected to be minimal. 2. Increases in capital expenses will be limited to $75 per year and if the aggregate is greater than $25000 per year than a 67% approval by equity members will be required. |
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6/5/10-1 Q: 1. Are there any provisions for use of stables? 2. Why not include stand alone building and lease back to BMDC for whatever term they desire? 3. Will Preserve owners pay the $350 fee? 4. What is the length of the "original term" for Preserve owners and BMDC? 5. Is the appraisal available for viewing? 6. Will inspections be done on pool and buildings prior to closing and will there be contingencies to take care of any discrepancies?
A: Thank you for your questions that will be answered respectively: 1. The Stables is a private business on land leased from BMDC. There should be no change in its use or availability as a result of the Village purchase. 2. As preconditions set by the seller, the BMDC office is not for sale. This benefits us as it reduces the amount of money we need to raise now. 3. Again, as a precondition of the sale, Preserve lots are privileged because of a previous deeded legal agreement within their covenants. 4. The original agreement was set for 6 years. 5. The appraisal was reviewed by WLPOA representatives. 6. The properties are being sold “as is”; however WLPOA members who are experienced contractors will be inspecting the facilities to determine maintenance issues that will become a budget line item. |
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6/4/10 Q: I would like to commit to the equity ownership, but not all my concerns have been answered. Is my check refundable? A: It is important to have your commitment sooner than later to know where we are going with this endeavor. It has to be expected that not all issues have been answered to date including the proposed changes to the Bylaws. All funds are being placed into an escrow account and yes, your check can be returned at any point up to the July 15th cut-off date. |
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6/2/10 Q: I wonder why there is a need to make the WLPOA capital fund payments after this year? I would think that all needed future funds should be raised through the sale of equity ownerships and annual amenities fees. I would think that the existing capital fund moneys would be moved into the amenities purchase and then you no longer charge this as part of the WLPOA dues. I am concerned that the WLPOA capital fund fees may quickly grow to pay an ever increasing part of the Amenities program. It appears that WLPOA capital fund dues will be used to reduce the amount that would otherwise be charged to the annual amenities fees and thus be a disincentive for purchase of lifetime memberships. I propose that no further capital fund allotments be charged or at least it be held to the current $50. A: The CDF was established for a future purchase of a facility to call home for the WLPOA. Please refer to page 7 of the Plan for the Offering of Equity Memberships recently mailed to you, where it shows how the CDF will be used to pay off the mortgage for the barn (soon to be a Community Center), and that will take several years. Since all WLPOA members will be allowed to use the building, all will be contributing to its costs through the WLPOA dues. Future CDF collections and use thereof will be at the will of the WLPOA members. The costs of the Amenities program will be borne by the Amenities fee and not the CDF. There will be a distinction in what is considered capital development and what is the Amenities program. |
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5/18/10 Q: Re: The Village & Amenities Purchase; I applaud the POA board's decision. I know all the final details are coming but have a few questions: What will be the non-equity owner fee and how long can a person retain this status? I understand that the $1900 equity owner will still pay about $350/yr. What about those who have paid the amenities fee already for 2010 and now wish to become lifetime members? Will the 2010 fee also be required of other lifetime equity members who have not yet paid 2010? A: To help clear up your questions let me offer the following: The WLPOA membership dues are $100 this year of which $50 goes into the Community Development Fund (CDF). Next year the dues will be $125 of which $75 will go into the CDF. The CDF money will help pay down the mortgage on the Community Building (barn) and usage of the Community Center will be available to all Equity, Equity Lifetime and non-equity members. The Amenities fee is currently $350 for any resident and $500 for rental units. This season it is payable by all who choose to participate. Next year the Equity Lifetime members ($5000 level) will not be required to pay this fee, Equity members will pay the current fee and non-equity members will not have the option to participate. The Amenities fee is not fixed and is subject to the variability of operating expenses and total number of memberships. The Equity membership fee is a one time cost of $1900 until closing of the Village purchase after which the cost will most likely increase. These members will be responsible for the yearly Amenities fee and the WLPOA membership dues. The Equity Lifetime membership fee is a one time cost of $5000 and only available up to the closing of the Village purchase. These members will be responsible for the WLPOA membership dues but not the yearly Amenities fee. The Amenities-free benefit is transferrable to one’s surviving spouse. Both the Equity and Equity Lifetime memberships have lasting value in the form of a deed as a portion of the Village property and facilities. Additional details will be forwarded via first class mail before the end of the month. |
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| 10/17/09 Q: When we built our house, our builder mentioned something about restrictions on outdoor lighting. Is there a restriction on those big white bright lights? They are so bright and can be seen a long way away. A: Your builder was correct. Please visit the R&S website under ARB Guidelines. Also, direct your question to the R&S board with details as necessary for any problems with lighting violations or restrictions. |
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6/19/09 Q: We are nearing the one-third mark on the months most WLPOA members are on the mountain with no Friday nighters. Would you post a request for a suitable rental house? We could easily pay 100.00 by collecting 2.00 or 3.00 per person. Volunteers for food serving could also clean up, or another volunteer could clean. We will need a driveway not too steep, a big sturdy deck, and nearby parking. A: This is a good thought, and perhaps someone will come forward. The parking problem could be abated with car pooling. |
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