Thank you to those who attended the meeting on Monday to ask questions regarding the voting packet for the Golf Course purchase consideration. We had about 30 people attend each meeting. Most have emailed to get their questions answered.
Unfortunately, once again residents are taking to Nextdoor and are making false statements and accusations, spreading incorrect information and are just confusing people because they chose to create a post instead of asking and getting their answers first. In addition to questions asked at the meeting, below are many of the statements and the answers to the post:
Purchase Time Frame: This purchase consideration is occurring now as the decision needs to be made to purchase the courses or the PRGC will have to sell the property or lose it to the bank on December 31st. If we waited until November as a resident stated there is no way the vote could be completed as the Special Assessment Meeting requires a 30 day minimum notice. Even if it was done November 1st the vote would not be complete until the 30th and there is no way we could buy the property by December 31st. To get everything together to this point has already taken 5 months and we still have a lot of work to do. This is not being done because people are away. This discussion has been going on since February and there are 2,383 households getting the email updates as they go out. This means only 437 households are relying on the Times or information posted at the mailboxes and Activities Centers. Everyone either received the packet via delivery to their home or through email. We had a presentation meeting in February, after that we had meetings offered for each village, to which 22 villages had meetings to ask questions.
Commissions: Contrary to the many accusations there is no one getting a commission on this sale and no one was ever getting a commission. The person on Nextdoor and one of the residents at the meeting were reading the original proposal by CSI when they were showing the 20 year loan with the balloon and the $60,000 were closing costs. Closing costs do not equate to commissions. Had there even been a commission, the industry percentage averages 6% so the "commissions" alone would have been $105,0000 not $60,000. Even with the new financing the only closing costs will be what are required by law to transfer property. The funds needed to close are not going to change because there were never commissions in the proposal from the beginning. There are still going to be expenses for the transition and creation of the corporation.
Private Lender: The person loaning the money will have no vested interest in the property and is not placing any lien against the property for payment. This is a simple promissory note based on the passing of the special assessment to pay this person back the $1,750,000 over 7 years at 4.25%. There is no prepayment penalty. Our attorneys will be writing up the agreement not the person loaning us the money. He is not a Plantation resident.
Proxy Voting: The person posting on Nextdoor and a few others that have emailed me are not understanding how a proxy works. The proxy is your vote. If you intend to wait until the meeting on June 24th and vote in person then you do not need a proxy, you will pick up a ballot at the meeting and vote at the meeting. Those that wish to vote in advance will have to fill out a proxy. What you mark on the proxy is your vote, you are just giving someone the ability to turn in your vote in your absence. If you mark Bob as the proxy holder that allows us to process and count your vote now. If you mark anyone else on the proxy then that person must come to the Special Meeting on June 24th and cast a ballot for you and provide us the proxy as proof of your vote. This is not a secret ballot, so there is no need to have to wait until the 24th to count the votes and document them. A few people are making the vote sound suspicious. This is how voting is done across HOA's. Anyone that feels the vote is not accurate is legally allowed to request a time to count the votes for accuracy. Every proxy is verified recorded and kept on file. As of today we have around 700 votes. About 20 have been no votes. We need 1,411 yes votes to pass the amendments and special assessment. Not voting is considered a no vote. Even though the special assessment vote does not have the same voting requirement as the amendments if all three do not pass the purchase will not occur. If the amendments pass but not the special assessment then the documents can still be changed but we will not have the funds from the Special Assessment to buy the property.
Amendment Voting: Contrary to some comments the change being made to the document for the special assessment is only changing the amount of time that a resident can have to pay an assessment back. Currently our rules state to be paid in full or within one year. If we did this proposal with the current rule, everyone would have to pay in full or pay $105 dollars a month for 12 months to pay off the special assessment. We have tried to make this purchase consideration as low as possible and affordable for the residents while still providing the resources to keep it running and to get the courses and restaurant supporting itself. The rules for special assessments is not changing and under the current rules a majority of those voting at a special meeting called for that purpose must vote in favor for it to pass. This means the special assessment could pass with less votes than the other two amendments, however if the other two don't pass then there is no need for the special assessment.
Restaurant & Golf Course Management: It was explained at the meeting that while we are considering CSI for management of the property, and they have significant experience in both golf course management and restaurant management, we are considering other companies and all have experience in both types of business. The restaurant relies on the courses for additional business. A financial statement and budget will show the revenue of food and beverage and the associated expenses in a monthly or yearly statement. The comment also mentions about changes to the restaurant. We stated multiple times that a good portion of the initial capital improvements will be going into the clubhouse and the restaurant for improvements.
Purchase Price & The PRGC: The statement on the post regarding the purchase price and expenses is completely inaccurate. The purchase price is for the exact amount of the loan and associated closing costs only. That is estimated at $1,200,000. The other $550,000 is to make the necessary immediate improvements to the property after purchase. ( Again no one is getting a commission there never was a commission and that is why the borrowing amount has not changed). There are no excess funds, everything will be going to the purchase and transition expenses and nothing is being paid back to the members of the PRGC. If they had a $5,000 investment through their shares or a $1,000 investment in their shares, they are not getting any of that money back. Some seem to think the HOA is trying to do the purchase and hand the property back to the PRGC. That is 100% not true. Once the deal is done then the PRGC corporation will no longer be a part of the Golf Course property. We will create a committee selected by the HOA BOD to give feedback on the courses to assist the HOA in making major decisions regarding the property. The HOA BOD will serve as the BOD for the LLC.
As a result of the post there were many side comments and questions. In addition to the Nextdoor post, I am now seeing that someone copied the post from Nextdoor and emailed it out to a bunch of residents creating more confusion.
Someone mentioned terms such as IRR and NPV, estimation of cash flow, and capital hurdles. First, most residents have no idea what these terms mean or how to interpret them and insinuating that none of this has been done. Just because it isn't published for everyone to see, doesn't mean the work and research has not been done. We are not just going by what CSI has presented. There are no miscalculations or errors in CSI's presentation. Just as in our HOA side of business, residents elected a Board of Directors to handle the business side and the individual details of the finances and make the important decisions. To date this BOD has made responsible decisions in HOA affairs. In the village meetings I stated we would have more information regarding the vote and its requirements, and the cost to purchase and run the property. We will be preparing a Pro Forma for those few that are concerned. We have reviewed CSI's budget summary as it relates to the PRGC and CSI running the property. We have also reviewed other similar properties budgets for comparison. There would be more expenses for us as the HOA because we would be starting up a new business. Residents also need to understand that companies only go so far spending time and money once they know we can legally consider purchasing the property. The vote to do this does not mean we must purchase the property. If there were any surprise issues that would escalate the cost of this purchase we can still cancel the sale.
Another person commented assuming that we are buying the property but won't own it. The HOA is buying the property if the vote goes through. As a member of the HOA that means just like HOA property all members are part owners. Just like the HOA that still only gives each member the rights established under the governing documents and HOA Law.
In closing, I want to say there is nothing wrong with asking questions and some want more detail than others. I try to keep the information organized and to the point as to not confuse people. Even those at the meeting that state they understand the whole process were looking at closing costs and insinuating that there was a commission being paid.
If any resident has an issue or are not understanding the information provided, they can contact me directly to get answers and clarification. There is no need to make wild accusations or try to make the HOA or the BOD look like we are doing something wrong.
Unfortunately there are some that are just against this purchase and that is their right, but they should not be causing issues and making false statements to encourage others to question our honesty just because they do not agree with the decision to move forward. The vote is now in the hands of the residents, all of you determine if this moves forward.
Again I will ask if you have questions before casting your proxy then please contact me to hopefully give you the answers so you are making an informed vote.
Plantation HOA Manager LCAM-LREA