NOTICE-FARMINGTON INFORMATIONAL MEETING #3 (In-person)
SUBJECT- THE CLUB PURCHASE AND DECLARANT TURNOVER
WHEN-Wednesday January 25 6-8PM
WHERE-Forest Library 15583 Forest Road
Benefits to the Master POA for Club Ownership
1) Nearly all the Club expenses are paid for by pool membership income under the current setup, leaving the remaining income from the HOA dues to satisfy the mortgage/loan payment.
NO DUES INCREASE IS REQUIRED TO SATISFY THIS PAYMENT, THE NUMBER OF HOMES NOW COMPLETELY SATISFIES THIS INCOME REQUIREMENT. THAT IS THE BASIS FOR THE LOAN COMMITMENT.
2) Regardless of if you personally use the amenities, (social center, multipurpose room and workout room are free to use for all Farmington owners,) they provide value to every home in the community; there are lots of other beautiful subdivisions in Bedford County with similar homes, with few to no restrictions or amenities; homes in Farmington continue to sell like hotcakes and these features are things which set us apart from the others:
I randomly selected a home built the same year as The Clubhouse on Bedford County GIS, on Lejack Circle: The tax assessment of that home (4 years ago when last updated) reflected a 37.9% increase from $294,300 to $405,700, and I am sure the actual selling price would be much higher. The continued construction boom in Farmington, while annoying in some respects, is nearly done and attests to the desirability of this community.
3) Again, keeping due the same, ownership of The Club will contribute to a positive cash flow to the POA which may be used for any purpose. Equity in the property will continue to grow, as will the reserve account. The positive cash flow can be used for community improvements, social events, or simply to maintain the current low POA dues structure, one of the lowest in town at $52 per month.
4) CIT Bank has committed to loan 2 million to the POA based on cash flow alone; the developers have agreed to sell it for $1,832,500 to the POA based on a secondary appraisal which was not required by the bank. Potentially, the remainder of the loan amount could be used for any other improvement to either the amenity, or the community as a whole-playground, upgrades to the community center or workout room, secure parking areas etc. That will be up to the Homeowner Board of directors once duly elected by the membership.
5) Under the umbrella of the POA, accepted standards will continue to be applied to the facility. Swim team, number and costs of memberships, degree of maintenance and safety, types of activities that are permitted or hosted at no charge currently to the community, none of these things will be guaranteed to continue if sold to an outside party. Any profit will NOT remain within the community. The property and land could be used for an alternate purpose, we really cannot say. This would NOT represent the highest and best use of the property; all other POAs and condos under our management umbrella control their own facilities, only in Northern Virginia have I seen this alternative business model used, and it was not voluntary to the membership, nor is it ideal to say the least.
6) All POA’s are businesses; they must all be managed for fiscal responsibility, and long-term sustainability to support property values of the members. Most do not have the luxury of any alternative sources of income other than assessments; Farmington is unique in having such a large facility that can support income from outside members from rentals and memberships. Potential rental income is an untapped resource, we do not even advertise at this point.
7) The developers of Farmington would much prefer that the POA be the owner of the club; it has been their purpose for over a decade to run the club until it reached a point where it was self-sustaining. The developers have poured thousands of dollars into the club to keep it afloat until such a time. Their hope is that the POA will be the future owner, and benefit from the positive cash flow as well as the value added to each of the residential homes within Farmington. They have a vested interest in seeing this community thrive!
8) The vote has been overwhelmingly in favor so far-About 130 affirmatives to less than 30 negatives. Many of the “no” votes asked for more information, and we hope to be able to provide whatever else is needed.
That being said, we have a long way to go reach the required minimum.
We hope to see you there! Again, if you submit your questions in advance, we may get through all of them more quickly and efficiently and have a researched and prepared response as needed.
Hopefully we will be able to answer all questions and satisfy anyone still “on the fence”.
We need many more votes to be able to decide this issue, and we will continue to work towards obtaining the required 67% of the votes.
Thank you for your consideration,
Farmington Board of Directors and Management.
Holly Snead, PCAM, CMCA, AMS, Managing agent Farmington
[email protected] 434-771-6013