Issue link: https://imageup.uberflip.com/i/1439358
10 | THE COLONY NEWS | JANUARY 2022 | HOA NEWS 8. There were several questions about what we could do with the land if The Colony owned it. Suggestions were made about converting to a 9-hole golf course, building more homes, building a restaurant, dog park, outdoor amphitheater, more racquet courts, vineyards, selling parcels to fund other opportunities, etc. Response: If The Colony owns the land, all suggestions are potential opportunities depending on resident interests and cost. If we own the dirt, we can better control our future. 9. Do blue-line streams have any impact on the sale of the property to a developer? Response: They can lessen the amount of developable land. 10. If the Association buys the golf course, can we lease a portion to a winery? Response: No. The golf course property is zoned as a golf course only. 11. If the vote to purchase fails, can a consortium (which may be comprised of some Colony owners) purchase the golf course and issue shares to those who have participated in the acquisition? Response: Any private individual or group is free to negotiate, at any time, with Majestic Asset Management to purchase the golf course. 12. Water issues – drainage, blue-line streams, man-made lakes, etc.? Response: The golf course has been in place for three decades and the circumstances related to water will not be any different under different ownership. 13. If a developer purchases the golf course with the intent to build on holes #10, #11 & #12, could The Colony require the developer to access on a portion of Jackson that would not allow them access thru our gate? Response: We think so, but this scenario needs further research with the city. Category 3: Profitability 14. There were several questions about the course being profitable and what would happen if it went south on us? Response: We believe that the course has been very poorly managed and as a result has seriously deteriorated. Two PGA companies have produced studies on this course that show that with proper investment to improve the course, clubhouse, slopes and fingers, and proper management of the day-to-day operations, the course would likely turn a profit in three years. Especially with a good food and beverage operation, enhanced marketing, tournaments, etc. If after three years, it appears to not be true, then The Colony has options to pursue other opportunities with the land that we own. This may include options such as working with a developer to turn the property into something that would further enhance our community as opposed to something that would degrade it. 15. Colonists aren't playing; cities are passing ordinances to allow multi-family on single family lots. Easier solutions available. Why saddle us with a GC that loses money currently? Response: Approximately 100 people from the Colony regularly play golf at the course every week. Most of the revenue comes from outside the gate. As has been stated, the course has been poorly managed. Studies show that the golf operations can be profitable. Not a large profit, but that is an advantage for the HOA, we do not need to make a big return on it. Category 4: Finance/Purchase/Foreclosure/ Negotiation 16. Who is paying for the leased equipment? Response: The Receiver is paying for the leased equipment from the income generated by the golf course operations. 17. In the scenario presented at neighborhood meetings, I understand the $1,500 assessment and dues, but does that include the fingers and slopes? Response: Yes, it does. It covers both the restoration and maintenance of the golf course. 18. There were several questions around the purchase, foreclosure bidding, negotiation, etc. for the golf course property. Response: If the property goes to foreclosure, it could be auctioned to the highest bidder (neither the current owner nor their agents may participate in a foreclosure auction). The Colony would need an approval from its membership to purchase the golf course property. There is no guarantee that we can win in a bid, but we need to be as prepared as possible. 19. Several questions were asked about the rate of interest a homeowner may be charged if they have the opportunity to finance the assessment required to purchase the golf course property and if the potential $15-$20 monthly course maintenance dues for three years is guaranteed. Response: The current plan is to have the members vote on whether to approve a loan and use the monthly assessments to pay off the loan. More detailed information will be provided at the Town Hall meeting prior to any vote. Continued on following page Continued from previous page