Enclosed  is todays latest correspondence regarding the Arrowcreek Golf Course.

To: ronbellrealtor@hotmail.com
Subject: Correct Version URGENT - Future of ArrowCreek Country Club
From: peterbrunt@sbcglobal.net
Date: Fri, 1 Aug 2008 16:40:02 -0500

ArrowCreek Country Club Correct Version URGENT - Future of ArrowCreek Country ClubDear Fellow ACCC Member:Following the termination of negotiations between ClubCorp and TerraBrook, the Advisory Board has received a communication from ArrowCreek Golf Holdings (AGH) identifying two options for the transfer of ownership of the Club, namely:   * Option 1 - AGH to turn the Club over to the members in the near term    * Option 2 - AGH to enter into bankruptcyThe following outline proposal addresses the early transition of the Club to the equity members and requests your feedback concerning this option.  Please respond at your earliest convenience and in any case before August 8 if at all possible.Early Conversion   1. AGH to turn over the club to the equity members with no debt. (For the purpose of this survey, assume the timescale for initiating this transfer to be one or two months)   2. Members to negotia te a monetary arrangement with AGH to help offset the operating deficit for a short period of time.   3. A newly formed member-owned limited liability company (LLC) to solicit potential buyers ( national golf operators) to purchase the club on similar conditions to those pertaining to the ClubCorp deal    4. The selected operator to purchase the Club and refund the equity amounts included in the ClubCorp proposal (or similar amount as negotiated)      5. The Club to become a non-equity club and the new owner to assume all risk Things to Consider   * Members will have more control over their own destiny by negotiating a purchase agreement with a new buyer       * Stabilization of the Club will increase the ability to sell and retain memberships   * Club services and expenses (as well as dues structur e) can be matched to member preferences or risk averseness   * Equity members receive some sort of “buy back” of their initiation fee sooner rather than later    * Would eliminate the possibility of assessments after the time taken to sell the Club - hopefully a short period    * Equity members become non - equity members after the sale, with refund rights of 80% or 50% depending on each individuals current Equity Membership Plan    * Eliminates any equity/non-equity distinction after sale to the national operator    *Prior to sale, equity members may be assessed for payment of any operating deficit.  In the past few years the Club has experienced annual deficits of approximately $2 million; with approximately 200 equity members an assessment of $10,000 p.a. could thus be required depending on the time it takes to effect the sale and the amount (if an y) negotiated to offset the operating deficit    * A fund would be required to pay for legal/membership documents and other requirements prior to turnover.  This could be offset by reimbursement upon sale    * The arrangement for redeeming members on the resale list may well need to be modified/delayed for a period in order to direct new membership sales to meeting operating costs    * All membership documents would have to be revised initially to eliminate the individuals veto right and establish an elected governing board, then again when sale to a third party is achieved The purpose of this survey is to obtain your initial reaction to the outline proposal.  At the appropriate time a vote will be taken to determine the final steps to be taken with respect to the negotiated deal. Please supply feedback here(Please &quo t;Reply” and type your responses, plus the requested ID information, and send the email to peterbrunt@sbcglobal.net who will compile an analysis of the responses for review by the Board)   * If you are an Equity Member:       - Would you, as an Equity Member, support this proposal in concept, including advance assessments (YES or NO):        - Would you, as an Equity Member, support this proposal in concept, excluding advance assessments (YES or NO):    * If you are a Non-equity Member:        - Would you, as a Non-equity Member be willing to be assessed on similar pro-rata terms (YES or NO): ID Details: &nbs p;  Member Name:    Member Number: Thank you for your participation in this survey. ArrowCreek Advisory Board

You are receiving this message because you are a member of ArrowCreek Country Club and a subscriber to email notifications. To unsubscribe, please click on the URL in the following line: http://www.golffusion.com/arrowcreekcc/lm.php/u/2280695 This message was sent to: ronbellrealtor@hotmail.com

Ron Bell writes:

I am not sure if the “Fox guarding the hen house”  is the right analogy or not but apparently some of the litigants et al who some say were a thorn in the Arrowcreek Golf Sale are trying to patch together a sale.  I still am not sure if I am supposed to be happy or mad about this.

If in fact this is the case and only time will tell.  Some feel that these folks (Litigants) who were suing for peanuts compared to the 100s of millions, loss of moral and a possible loss of Arrowcreeks golf lifestyle they worked their whole lives for are the last guys they will trust if in fact if they were part of the reason Club Corp did not buy the Arrowcreek Golf Course..

On another note, if  Arrowcreek HOA hadn’t been so litigious to Terrabrook over a little $6,000. per parcel alleged shortfall in the reserve fund, maybe they (Terrabrook) would stick around for a little more cash bloodletting to keep the course open until they can find a buyer who won’t be met with saber weilding outsiders to the transaction. 

Arrowcreek HOA and the Arrowcreek Homeowners who voted for the lawsuit drew first blood on Terrabrook  and Terrabrook has gone from a rich uncle supporting this community to a hostile Mother In Law wanting to distance herself. 

These lawsuits with their team of attorneys tend to be a step over a dollar to pick up a dime as the loss of real estate values generally outweighs any winnings that may be left after Attorneys, special studies, depositions, expert witnesses etc. get paid. 

So far, the banks haven’t got wind of Arrowcreek litigation/golf course scandal as they did the mostly retired Californian community of Fleur De Lis who is suing the developer over an alleged construction defect on a few units, a cracked fountain and pool some say.  Fleur De Lis’s  values may continue to decline until they sober up down there.  Allegedely, the developer has agreed to make good on the damages but they want to take the legal/freefall of property values route.   Countrywide won’t loan in Fleur De Lis according to an agent who tried to use them and I hear a few others are considering it.   They have rules that are some of the most anal non livable ones I have ever seen, their rude staff is more than happy to enforce them.  

This (Arrowcreek lawsuits) kind of reminds me of when I was living in Europe and was reluctant to declare I was an American as it would evoke a heated conversation and dislike.  If I am in public now and say I live in Arrowcreek at a party they back off as if I may sue them if I stub my toe on their coffee table.  I generally try and play it off like “hey everyone has their problems”, there really are some cool people living here or similar banter.

I honestly don’t know what to make of this mess other than my own house is down around 50%  and hasn’t got shown in over a month as well as many of my other Arrowcreek homes for sale.  

I have a long term buy and hold in Arrowcreek however, you need to be brave when everyone is fear-full and buy when there is blood on the streets.  The big drop in Arrowcreek values may be behind us and the bad news baked in, only time will tell.

A news parroting blogger I am not, I hope this stirs some senses and emotions and you comment on it.  I need to rant a little to get the juices flowing from my readers, please participate.   Some of this is hearsay and speculation, heck, I may have it all wrong.

Ron

Filed under: ARROWCREEK