Presentation on theme: "A Comparison of Concepts. Centex/ Pulte is selling it: Centex Pulte was smart enough to recognize it was an important amenity that would attract buyers."— Presentation transcript:
A Comparison of Concepts
Centex/ Pulte is selling it: Centex Pulte was smart enough to recognize it was an important amenity that would attract buyers to Riverwood. Centex Pulte is almost “built out” in Riverwood and they are not in the beach club business any more than they are in the golf club business. We need to maintain, not lose Riverwood amenities to keep our status among the gated communities in this area. The Beach Club is an important amenity to a high % of Florida home buyers (see 1a above). Who should care about home buyers? Every home owner in Riverwood (see 1a above).
Because Centex/Pulte is looking for a buyer NOW!! The price to which Centex has agreed is very good. We cannot afford to lose this important amenity
Researching property value Researching ownership, liens, zoning and other restrictions on ownership and use of the property Meetings with officials of the County Clerk’s office, the planning office, the zoning office RCDD attorney conversations with County officials Committee teleconferences with our RCDD attorney Financial and operational data from Centex/Pulte Telephone conversations with the Centex/Pulte Title search by the RCDD attorney
Centex/Pulte has a willingness to work with us. Centex/Pulte is the only owner with clear title. There is a lease between Centex/Pulte and the Riverwood Beach Club. Centex/Pulte can cancel that lease upon sale of the Beach Club. There are no liens on the Beach Club property. There are no restrictions on the property which would interfere with the RCDD ownership and operation of the facility today and for the future.
The Long Range Planning Committee strongly believes such purchase at this time is in the best interests of the homeowners in Riverwood.
Sign an agreement with Centex/Pulte to commence a period of “due diligence” RCCD Board Appoint a “Due Diligence” Team Presentation of the final findings to the RCDD Board Final vote by the RCDD Supervisors
Ask the RCDD to fund the purchase money up front via a bank loan. Business plan says to repay RCDD purchase money and cover the expense of running and maintaining the Beach Club from the members’ dues and new membership fees. Long Range Planning Committee believes this is a solid plan.
Current members 300) + 20 new members immediately =209 Note Pmt 3.5%, 240 months, $350,000 principal ($2,029.86)Monthly payment $24, Annual payment The most important revenue figures are the Member's annual dues
Scenario Members 20 new members Dues = $300 Scenario Members No Initiation Dues = $300 Scenario Members No Initiation Dues = $300 Scenario Members 111 new $625 Dues = $300 Members' Annual Dues $62,700.00$105,000.00$120,000.00$90, Initiation Fees $25,000.00$0.00 $69, Other $ Total Revenues $88,300.00$105,600.00$120,600.00$159, Net Income (Loss) $2,491.69$19,792.00$34,792.00$74,167.00
Maintain current Centex/Pulte Concept Current members are “grandfathered” Retain current membership Start a campaign to attract new members The Long Range Planning Committee Chairman has a list of twenty or more potential new members waiting to join when the future ownership of the Club is clear Any legal requirement to allow non-Riverwood owner membership would be handled as access to tennis, fitness and swimming pool/spa amenities are handled today
There are just under 200 member families The facility is NEVER crowded As membership grows and IF crowding looks like it could be a problem we could “cap” the number of memberships allowed at a workable number (just as the Riverwood Golf Club has done)
Why not just buy the property and open it to all Riverwood residents, the same as the fitness, pool, and tennis facilities? Membership application/initiation fees and dues create a revenue stream which can be used to maintain the facility and pay back the CDD without further burdening all Riverwood residents Current membership has paid for that access A number of residents are opposed to paying for an amenity they don’t use
The basic objective is to purchase the beach club with the entire costs to be covered by the beach club membership. Regardless of which scenario is selected, if the financial situation does not result in the annual revenues from dues covering the annual expenses for the club, a special assessment of the current membership will be assessed to cover the shortfall.
Sign an agreement with Centex/Pulte to commence a period of “due diligence” Appoint a “Due Diligence” Team