High Vista Presentation

High Vista Amenity Association POA, Proposal Meeting
I. Status of the proposal

II. Financial viability assessment

III. Capital expenditures

IV. Overview of the Proposal

V. Question & Answers

VI. Document Review and Website – www.myhighvista.com

VII. What are the steps necessary to join the POA

VIII. Next meeting and deadline for enrollment

POA PROPOSAL: VIABILITY ASSESSMENT
AT 250 INITIAL MEMBERS
PURCHASE PRICE: $677,500

POA DEVELOPMENTS HV FINANCE
• Developed Detailed 5-Year Financial Agreed to lower price to $677,500
Plan, with conservative assumptions.
Even assuming no operating revenue, Agreed to lowering share of future
expect viability without incurring debt. member initiation fees to 50%
• Minimum of $30,000 reserves Agreed to finance POA members
• Plan to undertake capital
improvements of $196,200 over 5 initiation purchase, at 6.9%, for those
years. who wish to borrow. No POA liability
• Need to raise buy-in amount from on balance sheet.
earlier communication Agreed to guarantee operating
– $3350 for Homeowners and $2350 for Lot
Owners expenses for 3 years instead of 2.
• Need to raise monthly dues from
earlier communication.
– $65/month for Full-time
– $39/month for Part-time
– $13/month for Lot Owners

POA PROPOSAL TO THE HIGH VISTA COMMUNITY
INDEPENDENT FINANCIAL REVIEW OF TRANSITION TEAM ASSUMPTIONS
NO REPRESENTATIONS OR GUARANTEES ARE MADE REGARDING THE ACCURACY OF THE PRO FORMA’S
DISCUSSED OR RELATED ANALYSES, ORTHE OPINIONS EXPRESSED. EACH READER MUST FORM HIS/HER
OWN OPINION.
(1 of 3)

KEY ASSUMPTIONS:

• Initial Members: 250 total; 220 fulltime homeowners
• Purchase Price: $677,500
• Buy-In Price for Homeowners/lot owners: $3350/$2350. $600 of each member funds
to POA Reserves
• Monthly (Fulltime) Homeowner Dues: $65/month or $780/year
• POA Transaction Costs: $20,000
• Members who Finance ¹: No Liability to POA
• Annual Food (Fulltime) Minimums: $400/year
• Minimum Reserves: $30,000
• Immediate Capital Expenditures: $89,700
• Capital Expenditures by year, 2013-2016: $30,000; $27,500; $28,000: $21,000
• Interest Rate: 6.9%
• Food & Beverage P&L: Break-even
• Management Contract ² : $78,000 per year
• Laurel Room and Outside Revenue: $27,000 per year
• Default Rate: 1% in 2013 increasing to 4% in 2016
• Future Members Initiation Fee: $14,250 (homeowners) - 50% buy-in split,
3 new members
$9,250 (lot owners) - 50% buy-in split, 3 new
members

Cont…(2 of 3)

PRO –FORMA RESULT HIGHLIGHTS ³:

2012 2013 2014 2015 2016
• Operating Income 4: 0 $22,700 $20,800 $18,900 $17,900

• Cash Flow: 0 ($ 7,300) $ 5,000 $ 2,600 $ 8,700

• Reserves (YE): $41,300 $34,000 $39,000 $41,600 $50,300

• POA Debt: $0 $0 $0 $0 $0

Cont…(3 of 3)

CONCLUSION:

• Under these assumptions, the POA reserves and cash flows are sufficient to
cover operations and planned capital expenditures as specified by the
Transition Committee.

• RISKS include: Not achieving at least 250 initial members, mostly fulltime
homeowners; Food & Beverage Business; Unanticipated Capital Expenditures
and Monthly Dues Default Rates.

• OPPORTUNITIES include: More initial members than 250; F&B Business; Laurel
Room and Outside Business; and Increasing Future Net New Members.

_________________________________________________
• 1 Financing amount due to seller through HV Finance, not portion for POA reserves.
• 2 Includes salaries.
• 3 Income, Cash Flow and Balance Sheet statements for 5 –year pro forma’s are available to community members
upon request.
• 4 HV Finance guarantees against operating loss through 2014

CAPITAL EXPENDITURES
Immediate: $89,700 Exterior: Minor siding, gutter, downspout and roof repairs
Landscape work
Parking lot restructure, resurface & restripe
Interior: Pub kitchen expansion
Downstairs carpet replacement and painting
Pool: Upgrade bathrooms and resurface pool deck

2013: $30,000 Pool: Re-plaster pool

2014: $27,500 Interior: HVAC & Kitchen equipment upgrades
Tennis: Resurface courts
Pool: Pumps, filters & heating

2015: $28,000 Exterior: Painting, misc upgrades and landscape needs
Interior: Upstairs carpet & painting
Tennis: Bathroom upgrades

2016: $21,000 Exterior: Roof replacement

FUTURE? Should cash flow permit and the membership is in favor, some prospective
improvements include: Fitness center, Elevator/lift for Laurel Room and Restroom & storage
upgrades in the Event area – upstairs/Laurel Room.

OVERVIEW OF PROPERTY OWNERS ASSOCIATION PROPOSAL
(1 of 5)
Why the POA matters

• Establishing this Property Owners Association (POA) is the first step in taking control of the community.
The POA will purchase several significant, very visible assets including the tennis courts, park, pool,
parking lots and clubhouse.

• The seller agrees to hand over ownership of the south gate and Country Club road to the HOA,
which will allow for its repair and repaving, as well as a reconfiguration through the parking lots.

• Restructuring ownership of these assets through the POA can help redefine the perception of this
community. Resolving issues like the status of Country Club Road, meeting space, access etc. and
taking ownership of the amenities will create a more stable and forward looking community.

• Owning these very visible properties will preserve them from being developed into home sites.

• After the POA is established, the Golf Club proposes to join with the POA & HOA in a campaign to
rebrand the community. Increasing awareness and redefining the value of living in High Vista will bring in
more realtors and prospective homeowners, resulting in stronger home sales and a more vibrant,
sustainable community.

• This POA gives participating residents access to amenities (pool, tennis), a restaurant and a
social meeting place.

• After this effort is complete, the next step will be a proposal to sell the remaining Club (Golf) assets to a
group of equity investors. And the ultimate goal of each of these offerings is to bring control of all assets
back into the hands of High Vista residents and members.
•
• It bears repeating that the value of establishing this POA goes beyond any price you want to put
on this building, that pool, the tennis courts or the community park. It will be the beginning of a
new era in High Vista. It promises a redefinition of the community and an improved perception by
existing and prospective home owners, as well as realtors.

(2 of 5)
RELEVANT FACTS

• Property being purchased includes the tennis courts & park, the large clubhouse, the pool and both parking lots.

• The POA will not be affiliated with either the Golf Course or the HOA. It is a standalone entity that owns property
and is run by a Board of Directors and bound by its declarative covenants, by-laws and articles of incorporation.

• Enrollment/Buy-in:
• Ownership/membership is voluntary and limited to property owners within the High Vista community
• Initial buy-in is $3,350 for a home and $2,350 for a lot. Buy-in portion going to the seller ($2,750/$1,750) can be
financed, 25 years @ 6.9% and can be paid off early.
• The buy-in has been raised by $500, and the seller is reducing their share of the buy-in by $100 so the POA can
raise funds to pay for capital expenditures and a small amount of closing costs, including a legal review of the
transaction. This $600 for each enrollee, over and above the price paid to the seller, must be paid up front
and will not be financed by the seller.
• If the POA is not enacted for any reason, all funds you paid for the buy-in will be returned to you, less your pro-
rata share of any monies spent for the legal/professional review and some minor transaction costs.
• If you own multiple properties, you buy-in with one of them (if one is a home, you buy-in with it) and the other
properties must buy-in within 90 days of changing ownership, occupying a new home on a lot or renting a home to
3rd party.
• After the enrollment period, the cost for a property to buy-in to the POA will increase significantly to reflect the
positive impact on home values that community amenities provide.
• The POA will be joined to your property and will have the right to lien your property for un-paid
assessments. If you sell your home, the subsequent owner must pay the assessments but will not have
to “buy-in”.

• Membership levels:
– Regular – pays a pro-rata share of operating expenses as well as contributing to reserves. Initial monthly
assessment will be $65, including $15 towards reserves. See capital reserve requirements below.
– Regular, Part Time – Defined as being physically removed from High Vista for more than 6 months per
year will pay 60% of the assessments paid by Regular members, which would be $39/month.
– Limited Members – Defined as lot owners only, would pay that portion of the assessments associated with
the maintenance, upkeep and improvements to the physical assets – initially estimated at 20% of the
assessments paid by regular members for $13/month. As long as an owner is a Limited member, they are

(3 of 5)
On-going operation of facilities:

• Assessments (described above) will be due at the beginning of each quarter
e.g. for Regular residents the quarterly assessment will be $195 (equating to
$65/month), set annually and based on budgeted expenses for the coming year.

• A food minimum of $100 per quarter will be imposed upon all Regular members (60%
of that for part timers). A food minimum is the best way to achieve a consistent,
quality food service. Limited members will not be charged a food minimum.

• If we retain Vesta as the property manager, they will guarantee no losses for the
first three years. There are a number of variables that are difficult to predict,
especially the food and beverage operation. The transition team feels it is
prudent to keep Vesta and the no-loss budget guarantee for the near term and
once we feel more confidence in being able to predict expenses and the
revenue, the POA Board can investigate other options. This may include
looking at alternative property managers.

• Capital reserve requirements necessitate both the previously identified infusion of
funds at buy-in as well as an on-going monthly capital assessments ($15/ regular,
$9/part time and $3/lots) which is included in the overall monthly assessment of
$65/month or $195/quarter for Regular memberships. This will make it possible to
complete a number of initial upgrade and repair projects (expand pub kitchen, replace
carpet etc.)along with a need to fund future projects (roof replacement, HVAC
repair/upgrade, pool repairs etc).

(4 of 5)

Capital Expenditures & Reserves:

• A reserve fund will be established and maintained for emergencies or unexpected
repairs/maintenance

• There are a number of immediate/1st year expenditures that will take place:
– Parking lots will be repaired and integrated into the Country Club road resurfacing
– Some minor external repairs and landscape work around Clubhouse
– Pub kitchen will be expanded and some painting will occur in Clubhouse
– Carpet in the Pub and throughout downstairs of Clubhouse will be replaced
– Pool bathroom will be upgraded and the pool deck will be resurfaced

• Within the next two to three years, other repairs and upgrades are planned to include:
– HVAC and utility work in Clubhouse
– Re-plaster the pool and various repairs to pumps and solar heating system
– Tennis court resurface & repairs
– Exterior and interior painting of Clubhouse where needed

• Longer term maintenance/reserve allocations will be set aside to cover:
– Roof replacement
– Additional kitchen equipment replacement upstairs and downstairs

• Other capital upgrades for consideration if funds are available and the membership
desires them include:
– Building out a fitness center where the men’s locker room currently exists
– Add an elevator/lift up to the Laurel room from the downstairs foyer
– Upgrade the Laurel room restrooms and build out some additional storage space

(5 of 5)

Other considerations:

• Country Club Road will be handed over to the HOA, subject to right of
way privileges that guarantee access to the POA and the Club by
outside parties.

• The seller is including (in the purchase) all furniture & equipment currently
residing in or on these assets.

• As long as any portion of the purchase is being financed, professional
management will be required

• The seller is making funds available, up to $250,000, at 6.9% and a 25 year
amortization that could be borrowed by the POA to make upgrades to the
facilities, establish reserves etc. At 250 members, the monthly cost for each
$100,000 borrowed would be $2.80. Borrowing all $250,000 would cost
each of the 250 members about $7.00 per month.

myhighvista.com

• Home Page:
- Overview of proposed POA amenities, costs, operations and
process
• Documents tab:
– Joinder and Consent
– Articles of Incorporation
– Declaration
– Purchase Agreement
– Club Use Agreement
– Road Agreement

• Video Tab: Highlighting actual and potential events and activities

• Contacts Tab: Submit questions to Vesta

Documents
Joinder and Consent Articles of Incorporation
• This document is the • This creates the
contract each member association and covers
will sign and notarized the primary rules
• It is agreeing to governing it
participate in the POA
including all covenants
and restrictions

Documents
Declaration • Purchase Agreement
( of covenants and restrictions)

• This document details • This document
all the covenants and defines the legal
restrictions within the terms and conditions
association necessary for the
POA to purchase the
assets from the seller.

Documents

Club use agreement Road Agreement

• This document spells out • The road title will be
the rights, responsibilities given to HOA
and obligations between
• HOA will be responsible
the POA, HOA and the
Golf Club relative to the for up keep of road
use of the assets being • HOA will allow use of
purchased by the POA. road and gate to
residents, members, club
guests

Steps to join POA
(1 of 3)

• Step 1: Familiarize yourself with the relevant information. In
addition to a limited number of printed copies made available at the
town hall, other meetings and at the HVCC Pro Shop, you can find
all of the documents at www.myhighvista.com . The interim Board
of directors will engage legal counsel to review these documents
and some minor modifications may take place based upon this
review and feedback from the community. However, the stated
financial commitments and opportunities as stated will remain as
they are and can only be changed by the POA and/or its elected
board after closing on the transaction.

• Step 2: When reviewing the documents, pay particular
attention to the documents that describe the financial implications,
this is an on-going commitment to be a member of this new property
owners association. The “Overview” document from the transition
team may be of particular interest as it attempts to present the
details in a structured manner and it also has several pages of
questions and answers. This Q&A is an attempt to document the
many questions and or comments presented to the committee via
email, telephone or in-person.

Steps to join POA
(2 of 3)
• Step 3: Decide if you want to participate. If you have any
specific questions, come to the meetings and ask that question, or
you can email your question to the “question” link on the web page
noted above. You can also contact a member of the transition
team directly.

• Step 4: Complete and submit the HV Amenity Association
Sign Up Form – the last page of this document. The legal joinder
cannot be completed yet because the covenants have yet to be filed
(pending our legal OK). So we are asking those who want to join, to
complete the above noted form and submit it to a member of the
association team or the Pro Shop, along with a check for $600
made out to the HV Amenity Association, so we can proceed with
our legal/professional review as soon as we have 200 sign up. No
more than $150 of this amount will be used for the legal review and
the remainder will be refunded if the transaction does not happen.

Steps to join POA
(3 of 3)
• Step 5: If we achieve the critical mass (250) you will be asked
to complete the POA informational survey and submit the notarized
joinder, the survey, and your buy-in check to a member of the
transition team at one of the meetings, or take it to the HVCC Pro
Shop. Their hours are 8AM to 5:30 PM, 7 days a week. The check
should be made out to the High Vista Amenity Association.
• This check will be for the amount that will go to the seller. if we
achieve sufficient participation - $2,750 for homes, $1,750 for lots
and it will go into an escrow account intended for this purpose.

• If we do not get a critical mass and do not close on this transaction,
all funds, except the amount spent on the legal review, will be
refunded.

Next Steps
• Follow up meetings, in the New Clubhouse
either upstairs in Laurel Room or downstairs in
the Cordell Room.
– Tuesday, September 25th 7 PM
– Thursdays, Oct. 4th, Oct. 11th, Oct. 18th, and Tuesdays
Oct. 23rd and Oct. 30th all at 7PM

• Enrollment deadline tentatively set for October
31st, 2012

HV Amenity Association Sign Up Form

Name_____________________________________ Date_______________

Address___________________________________

I/we intend to join the High Vista Amenity Association, Inc. (POA). Our/my payment of $600.00
represents the POA’s portion of the required buy-in amount to join the POA. The remainder will
be due upon signing the Joinder and Consent to Adoption of Declaration and Covenants and
Restrictions of the High Vista Amenity Association, Inc. (Joinder)a copy of which I have received.
I/We recognize that the final Joinder may differ from the one I/We received due to the ongoing
modifications of all forms as issues are clarified in the POA transaction documentation.

It is agreed and understood that up to $150.00 of the $600.00 payment will be used to complete
and support an independent legal review of the POA transaction and all of its documents. There
will be no funds disbursed until a minimum of 200 people have signed and paid the POA portion
of the required buy-in amount. If after the legal review is complete, the results of which will be
posted to the POA website www.myhighvista.com, I/we wish to withdraw our consent to join, the
remainder of the funds not used to complete or support the legal review will be returned.

___________________________ ____________________________________
Owner Ron Segall /Transition Team Representative

___________________________
Owner

High Vista Presentation

Recommended

More Related Content

Similar to High Vista Presentation

Similar to High Vista Presentation (20)

High Vista Presentation