Equity Q&A Meeting 8/28/06:
The results of the 3 equity proposals have been tabulated. Below is some notes of interest from last Monday’s meeting for those who were unable to attend.
Proposal #1: Interim Capital Improvements & Capital Assessments – FAILED
Q; Why shouldn’t we wait for developer to respond prior to moving forward to retain some sense of leverage?
A; Developer has been non-responsive and club directors feel it would be irresponsible to continue to allow the facilities to decline. Directors are committed to getting best pricing for comparable quality for all items and will continue to investigate if they can do better.
Q; Why don’t the members throw out lawsuits and work together with developer?
A: Board has made numerous attempts to chat with developer. They have received zero response.
Q: Is there an 8% maximum annual increase for annual dues?
A: The guidelines were amended after the club turnover. Capital expenditures are up for voting…operating expenses are left at discretion of club board.
Options will be explored for financing options to individual members for dues and/or assessments.
Proposal #2: Acquisition of Landings Site: PASSED
Q: What is the process for the acquisition of this site?
A: Step 1: Vote to acquire
Step 2: Developer will attempt to block acquisition
Step 3: One Year to start build out on structure over $1m in value not in conflict with developer real estate business.
The developer curiously had this option on his books until the 2005 turnover.
Proposal #3: Consider Amendment to Investigate Alternate Insurance Option: PASSED
*Current Insurance policy has excess coverage premium larger cost than primary coverage. This is a backwards to standard pricing. Current insurance policy is not with a Florida company. Tony Fano stated there has been an insurance committee formed to investigate options.
Q: Could we have charged extra annual fees as an assessment rather than annual fees?
A: Assessments can only be paid by equity members. Financial burden is more evenly spread via the annual members in the annual dues. Michael Ashkin mentioned if we do not retire the debt it would be over $12m in 3 years under the best scenario.
Proposal #1: Interim Capital Improvements & Capital Assessments – FAILED
Q; Why shouldn’t we wait for developer to respond prior to moving forward to retain some sense of leverage?
A; Developer has been non-responsive and club directors feel it would be irresponsible to continue to allow the facilities to decline. Directors are committed to getting best pricing for comparable quality for all items and will continue to investigate if they can do better.
Q; Why don’t the members throw out lawsuits and work together with developer?
A: Board has made numerous attempts to chat with developer. They have received zero response.
Q: Is there an 8% maximum annual increase for annual dues?
A: The guidelines were amended after the club turnover. Capital expenditures are up for voting…operating expenses are left at discretion of club board.
Options will be explored for financing options to individual members for dues and/or assessments.
Proposal #2: Acquisition of Landings Site: PASSED
Q: What is the process for the acquisition of this site?
A: Step 1: Vote to acquire
Step 2: Developer will attempt to block acquisition
Step 3: One Year to start build out on structure over $1m in value not in conflict with developer real estate business.
The developer curiously had this option on his books until the 2005 turnover.
Proposal #3: Consider Amendment to Investigate Alternate Insurance Option: PASSED
*Current Insurance policy has excess coverage premium larger cost than primary coverage. This is a backwards to standard pricing. Current insurance policy is not with a Florida company. Tony Fano stated there has been an insurance committee formed to investigate options.
Q: Could we have charged extra annual fees as an assessment rather than annual fees?
A: Assessments can only be paid by equity members. Financial burden is more evenly spread via the annual members in the annual dues. Michael Ashkin mentioned if we do not retire the debt it would be over $12m in 3 years under the best scenario.
posted by Donnie Pingaro at 2:34 PM
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