New Community Center II
Presentation to Lockwood Folly POA
Members
Why a Repeat Performance?
Comment from a resident:
POA members voted down the
community center proposal last year. That
says they don’t want a new facility. Why is
the POA board bringing it up again?
Why a Repeat Performance?
The majority of POA members do want a new
CC; 60% voted in favor of last year’s proposal
(2/3 is required to approve financing)
If you review the vote tally, the proposal was
defeated by only about 40 votes
We believe the largest bloc of no votes were lot
owners who felt it was unfair to be charged the
same assessment as residents
Other Reasons for ―NO‖ VotesOther Reasons for ―NO‖ Votes
The economy and a $440 yearly paymentThe economy and a $440 yearly payment
Uncertainty about financing costs due to Uncertainty about financing costs due to
variable rate mortgagevariable rate mortgage
Too much wasted space, poor floor planToo much wasted space, poor floor plan
Golfers using main entrance, sharing Golfers using main entrance, sharing
buildingbuilding
More building than we needMore building than we need
Should have modern fitness centerShould have modern fitness center
Why a Repeat Performance?
Only a handful of members said we don’t
need a new community center
The board concluded that a two-thirds
majority of POA members would support a
new CC proposal if it eliminates the main
criticisms voiced last year
That’s only a change of 40 votes
Review Key Points from Last
Year’s Discussion
Review Key Points from Last YearReview Key Points from Last Year
We pointed out that the reason your POA We pointed out that the reason your POA
board exists is to protect and enhance the board exists is to protect and enhance the
value of properties owned by it’s membersvalue of properties owned by it’s members
We believe a new community center with We believe a new community center with
expanded amenities is crucial to support expanded amenities is crucial to support
Lockwood property valuesLockwood property values
Your Property Values are at StakeYour Property Values are at Stake
There are 31 Lockwood homes for sale
We have heard from several residents either selling or refinancing their homes
Their feedback indicates our lagging amenities are now hurting these efforts
Realtor comments that potential buyers are unhappy with Lockwood amenities
A recent appraisal in Lockwood came in $40,000 lower than comparable St. James properties due to ―average‖ amenities, according to the appraisal (see next slide)
Take it For What it’s Worth--Ratio of homes sold within last year to homes listed:
Brunswick Plantation 44% (66 listed, 29 sold)
Ocean Ridge 29% (42 listed, 12 sold)
Lakes of Lockwood 29% (21 listed, 6 sold)
St. James Plantation 27% (217 listed, 59 sold)
Sea Trail 25% (104 listed, 26 sold)
Brierwood Estates 23% (40 listed, 9 sold)
*Brick Landing (<Jan) 21% (14 listed, 3 sold)
Winding River 20% (44 listed, 9 sold)
Lockwood Folly 14% (36 listed, 5 sold)
*Brick Landing (>Jan) 0% (25 listed, 0 sold)
*Brick Landing data shown before & after the golf course was
closed
Your Property Values are at StakeYour Property Values are at Stake
If we are going to compete with communities like St. James or Brunswick Plantation with outstanding recreational amenities, we have to upgrade
We also have to look beyond what will support our current population; we have to attract younger active seniors who will be willing to serve the community in a variety of ways when the rest of us want to retire from board service
Review Key Points from Last YearReview Key Points from Last Year
Other issues we discussed:Other issues we discussed:
Need larger gathering spaces for Need larger gathering spaces for
meetings, eventsmeetings, events
Need office & administrative spaceNeed office & administrative space
Need smaller private rooms to handle Need smaller private rooms to handle
simultaneous meetings, social functionssimultaneous meetings, social functions
Need to prepare for growthNeed to prepare for growth
2009 Construction Options
Remodel/expand existing clubhouse Too expensive to modify & bring up to code
Not enough space to properly expand
Concern about noise from condo owners
Build new POA facility No adequate POA owned site available
Purchase Anne Arnold building Poor layout & location
Too expensive to renovate
Build on property donated by LFCC, keep existing clubhouse as supplemental space
2009 Proposal Summary
LFCC donates property for building site
POA includes pro shop & restaurant in
building design
POA provides rent free use of new LFCC
facilities
What Has Changed?
Design Modifications
We have redesigned the community center to incorporate many of the suggested improvements:
It is now about 1500 square feet smaller
We removed the ―Big Ass Fan‖ and improved the floor plan
It includes a fitness center
The exterior elevations are more attractive
Added Solar panels Free power for the building
Utility savings offset investment in 4.5 years
USDA FinancingUSDA Financing
We learned that grants & loans are We learned that grants & loans are
available to HOAs / POAs through USDA available to HOAs / POAs through USDA
Rural Development Rural Development
St. James is financing its new Town Hall & St. James is financing its new Town Hall &
Community Center with a USDA loan Community Center with a USDA loan
We have met with USDA officials and We have met with USDA officials and
confirmed we qualify for a low interest loanconfirmed we qualify for a low interest loan
USDA Financing
If granted, USDA financing will be a 4.125%
simple fixed interest loan with a 40 year term
It eliminates several criticisms from last year:
It’s cost will be much lower, as you will see
It eliminates the risks posed by variable rate financing
offered by commercial lenders
Lot owners will pay 75% of the home owner
assessment, same as dues
USDA requires a public competitive bid be conducted
to select a contractor
USDA Financing Status
We have submitted a loan application, but USDA We have submitted a loan application, but USDA
cannot proceed until LFPOA confirms that POA cannot proceed until LFPOA confirms that POA
members approve the projectmembers approve the project
We need to vote and get 2/3 majority approval We need to vote and get 2/3 majority approval
before USDA will continue the application before USDA will continue the application
processprocess
POA member approval does not guarantee that POA member approval does not guarantee that
a loan will be granteda loan will be granted
USDA funding is limited and there are other USDA funding is limited and there are other
applicantsapplicants
What Hasn’t Changed
Building Location & Concept
Unchanged is the building concept:
It will still be owned by the POA
It will still be located on LFCC donated
property adjacent to the pool
It will still contain a restaurant and pro shop
The agreements reached last year between
LFPOA & LFCCI remain intact
Land reverts to LFCC if community center is not
constructed
Comments About LFCCWith regard to LFCC amenities in a POA
facility:
Whatever your attitude about Lockwood
Folly Country Club and the golf course, it
is a Lockwood amenity which affects your
property values—go by Brick Landing if
you don’t agree
(Brick Landing golf course was closed in January due to
financial problems. What does it look like now?)
Brick Landing
14 listings before the golf course closed in
January and a 21% sales ratio
25 listings since golf course closed in January
with no sales
What does this mean?
Failure of a golf course in a golf community is
devastating to property values; we must
preserve all our Lockwood amenities
Comments About LFCC
This proposal does not mean the POA is
subsidizing LFCCI
The trade of land for pro shop and restaurant
is in both organization’s best interests
The POA gets a free building site
LFCC’s financial condition is improved with lower
operating expenses & lower capital liability
It is the least cost solution to our amenity
problems
Site & Building Details
Modified Floor PlanModified Floor Plan
14,635 total square feet vs. 16,100 14,635 total square feet vs. 16,100
Metal roofMetal roof
Solar panels to power the building replace Solar panels to power the building replace
―Big Ass Fan‖ ―Big Ass Fan‖
Pro shop downsizedPro shop downsized
Restaurant & kitchen layout improvedRestaurant & kitchen layout improved
Modern exercise facility with private yoga or Modern exercise facility with private yoga or
aerobics room and sauna & showersaerobics room and sauna & showers
Large meeting area moved upstairsLarge meeting area moved upstairs
Patio & deck functionality improvedPatio & deck functionality improved
Golf entrance moved to west sideGolf entrance moved to west side
Modified Floor PlanModified Floor Plan
Large Meeting Room Layout UnchangedLarge Meeting Room Layout Unchanged::
Dinner Seating for 222 people vs. 100Dinner Seating for 222 people vs. 100
Theatre Seating for 478 people vs. 108Theatre Seating for 478 people vs. 108
Standing room only capacity 669Standing room only capacity 669
Can be subdivided for smaller functionsCan be subdivided for smaller functions
Restaurant:Restaurant:
Inside seating Inside seating –– 8484
Outside seating Outside seating –– 5252
Exterior
Hardi-Plank shingles, same as before
Metal roof
Solar panels
Columns & base trimmed in stone
Added knee wall to patios
Upper deck improved
Better traffic flow (separate golf entrance)
Additional Recreational Space
The existing clubhouse will be re-faced to match the new Com. Cen. Exterior
Windows will be replaced
Upstairs activities would include billiards and arts/crafts
Downstairs would be converted to several individual card / game rooms
Between the 2 buildings, all our meeting & recreational needs are met
Proposal SummaryProposal Summary
Community Center will be financed & owned by Community Center will be financed & owned by POAPOA
Proposed building site is on the property Proposed building site is on the property between existing clubhouse and Pro shop/cafebetween existing clubhouse and Pro shop/cafe
LFCCI has deeded the property to POALFCCI has deeded the property to POA
Existing pro shop & café will be torn down and Existing pro shop & café will be torn down and relocated in the new community centerrelocated in the new community center
The project includes replacement of septic tanks The project includes replacement of septic tanks and a new septic field under driving range, per and a new septic field under driving range, per code requirementscode requirements
The project includes replacement of the existing The project includes replacement of the existing parking lot with additional parking spacesparking lot with additional parking spaces
The existing clubhouse will be retained The existing clubhouse will be retained
Project & Member
Costs, Timing
CostsCosts
Included in costs:Included in costs: Both kitchens, new septic system and parking lot replacementBoth kitchens, new septic system and parking lot replacement
Sound system *Sound system *
Card Based Security system *Card Based Security system *
Solar power *Solar power *
Upgraded exercise equipment *Upgraded exercise equipment *
Furnishings for entire buildingFurnishings for entire building
Construction interest *Construction interest *
Legal fees Legal fees
Architectural feesArchitectural fees
5% USDA required contingency *5% USDA required contingency *
Estimated Estimated totaltotal project cost project cost ---- $3.2M$3.2M
Financing With A USDA LoanFinancing With A USDA Loan
If we are approved:
Homeowners would pay $200 per year for 5
years
Lot Owners would pay $150 per year for 5
years
At the end of 5 years, assessments would
cease and your property will have no further
financial obligation for the community center
Financing A USDA LoanFinancing A USDA Loan
In addition to the assessments for 5 years:
In years 1-2 POA dues will increase by 10%
In year 3 dues will increase by 7%
In years 4-5, dues increase by 5%
After 5 years POA dues will cover the USDA loan payments and planned infrastructure replacement projects, incl. roads
Dues Increases are scheduled with or without USDA loan approval
Why So Much Lower Cost?
We are financing over 40 years, not 15
The Interest rate is lower
USDA charges simple interest, i.e., no
compounding
Timing If This Proposal is Accepted
TimingTiming
USDA loan process could take from 3 USDA loan process could take from 3
months to a yearmonths to a year
We would apply for Septic Permit (12 We would apply for Septic Permit (12 -- 15 15
months) upon approval by POA membersmonths) upon approval by POA members
Other permits 2 Other permits 2 -- 3 months 3 months
Construction could likely begin by Aug. Construction could likely begin by Aug.
20112011
TimingTiming
Your annual assessment for the Your annual assessment for the community center will commence after community center will commence after USDA approval, most likely at the start of USDA approval, most likely at the start of the 2011the 2011--2012 fiscal year2012 fiscal year
Construction takes 12 Construction takes 12 –– 15 months15 months
The new community center would likely The new community center would likely open in the first or second quarter of 2012open in the first or second quarter of 2012
Voting Procedures
Ballots
Ballots will be mailed sometime in July
Counting will take place 20 days after ballots are mailed
Ballots must be received by the due date to be counted
Ballots will be sent to every eligible POA member
Approval of this project requires a 2/3 majority of the votes received
Your vote is secret
Ballots Each ballot will be assigned a control number
Control numbers range from 1 to the number of ballots mailed; i.e., the # of eligible voters
The control number will be recorded when votes are counted
If more than one ballot is received with the same control number, both ballots will be discarded
The control number is not tied to a member
Any ballot with the control number missing will not be counted
The control number guards against duplicate ballots being submitted
Vote Counting
Ballots returned in ballot envelopes will
remain sealed until counted
Vote counting will be conducted by the
POA directors
Counting will be in the clubhouse, open to
all POA members
Tallies will be recorded on a spreadsheet
and displayed by overhead projector so
attendees can follow the count
Communications
Questions
A Q&A period will be held after each community center presentation
Other questions may be submitted by email to [email protected]
Questions submitted by email will be answered promptly
Questions and answers will be published on the POA website in a link to community center information
Comments
Comments may be submitted by email to [email protected]
Comments may be posted on the POA website via a link to the comments page
Both pro and con comments will be posted
Your comment must include a request that it be posted
Your comment must not offer inappropriate content (profanity or disparaging remarks)
What if Members Reject This
Community Center Proposal or the
USDA Loan is not Granted ?
If Community Center is RejectedIf Community Center is Rejected
The POA will still face the problem of
deteriorating and inadequate amenities
Realtors confirm that buyers want nicer and
more updated facilities than we offer
Fewer buyers means your property is worth
less than property in competing
communities
The POA board must address this problem
If Community Center is RejectedIf Community Center is Rejected
If the vote again indicates a decisive
majority of property owners support a new
community center, the POA board will
continue to pursue options for a buildingThe board will begin to look at plans for a
community center without financing
This means we have to have the entire
construction costs up front
If Community Center is RejectedIf Community Center is Rejected
This would involve larger up front assessments than
either last year’s proposal or this year’s proposal
Additionally, 10% dues increases would last for an
extended period of years
If a future project does not include LFCC amenities,
the POA may have to purchase additional property
In any set of circumstances, solving the amenities
problem will be much more expensive for all of us
than this proposal
Golden Opportunity
The availability of USDA funds makes this
our golden opportunity
This is probably our last chance for an
affordable solution to our amenity problems
This proposal is dramatically better than the
one proposed last year which failed by only
40 votes
Your BOD strongly recommends a yes vote
Thank You From Your POA BOD
Q&A