Status of RD Pursuit on behalf of the FLCCE Residents March 2021
In light of the resistance from Grosvenor Square (owner of the Palms Golf Course), to provide a substantive land valuation for the property, as well, as the financial investment requested of the HOA to proceed with the creation of a Recreation District (RD), the HOA Board has voted to discontinue pursuit of the (RD).
As you recall, this is the vehicle, which if agreed to by the residents, would provide a mechanism for the possible purchase of the golf course by the residents.
On behalf of the HOA, the Golf Course Committee (GCC) has extensively researched this vehicle, including reaching out to HOA’s that have used this mechanism, as well as other means of purchase.
For the residents to pursue this vehicle, the RD Attorney stated that early in the process, it would require a $50,000.00-$60,000.00 investment to proceed.
The attorney also stated the seller of the golf course typically underwrites this and is later reimbursed by the bond. In our case, the seller refuses to pay these upfront costs in full.
If the RD process were pursued, the residents would invest approximately 18 months’ worth of detailed work. Since the owner refuses to pay these upfront costs in total, the HOA is being asked to carry this additional financial burden, or ½ of the $50,000.00.
In concept, the culmination of the efforts would lead to the vote for purchase of—and ultimate management—of the golf course. If successful, the residents would carry an annual special assessment on our properties for a life of 30 years.
While the option to pursue purchase of the golf course by the residents is closed. It is important to note, that we have confirmed that the Covenant and the First Amendment, are strong legal documents protecting the use of the property.
The sale of the golf course as a golf course, has always been the easiest option to sustain its use and is consistent with these documents. To that end, we have learned, there is interest in the purchase of golf courses, as the sport has steadily been gaining in popularity over the past five, or so years, and has also seen a surge during the Covid pandemic.
Of equal importance, is that in response to the owners’ threats of fallow land and development, the HOA attorney, will pursue all safeguards available to protect us.