As many of you are aware, the Board of Directors has been working to try and resolve the litigation with the Developer regarding Seaview Section 1, Lot 1. The Association recently agreed to a settlement with the Developer which resulted in signing a contract to acquire ownership of that parcel which includes the pool, tennis courts, and pool clubhouse. The sale is subject to numerous contingencies. At such time as those contingencies are removed, and in the event the sale closes, the Association will share more details with the members. This process has been the result of careful planning on the part of the Board, in consultation with its legal counsel and other advisors. Here are some details about the transaction that we can share with you.
In 2017, the Developer offered the Association the option to purchase the pool complex for $1.5M. A subsequent appraisal was conducted which valued the lot at $1.3M. As part of the litigation settlement, the Developer and the Association have agreed to a purchase price of $500k. In addition to agreeing to a large price reduction, the Developer has also agreed for the Association to collect $650 per each newly developed lot that is incorporated into the Association. To put that into perspective, if 300 additional lots between Cypress Glen, Lake Margaret, and new sections of the Highlands are sold, that equates to almost $200K of revenue to offset the purchase of the parcel. Once the Association owns the pool complex, we will be creating a pool committee to play a large role in the management, operations, maintenance, and membership of the pool, tennis courts and pool clubhouse.
The Board has taken this settlement decision very seriously and consulted with multiple attorneys to ensure we are operating within the legal authority of our positions, and ultimately the best interest of the Association and residents of our community. The Board’s intention is for the pool to operate like it has in the past, by selling seasonal memberships in order to fund the operations and maintenance of the facility.