Over the past eight years I've spent hundreds of hours studying Bella Vista's challenges, identifying options, and following them to their likely outcomes. I read Tom Throne's editorial last week with interest. He expressed personal indecision about the assessment vote and Rejuvenation Plan, and felt an improvement in the plan would be to close two golf courses.
I've evaluated that option extensively.
If we close an amenity, in most cases we have two choices for the land. Either convert it to another amenity, or turn it back to the developer (Cooper Communities). We closed a 9-hole pitch-and-putt at Branchwood and are changing that space into a recreation area that will be extremely attractive and quite expensive, but will generate no user fee revenue.
People paid a premium for property on or near championship golf courses, and there's no precedent for closing one. Might the POA be liable for their diminished property value and enjoyment? Might we have a discrimination risk from those who live on golf courses to be closed vs. those to remain open? What about people who have golf course views, or don't live on one but believe closing them diminishes their community, and thus their property value and enjoyment? How would we choose the courses to be closed? Who would make the decisions and who would manage the potential liabilities?
Remember, all of us who own property are the POA and all of us share both the assets and the liabilities.
It's likely that closing golf courses would embroil us in a decade or more of extensive, community-splitting, enormously expensive litigation. Progress of any kind would be doubtful for any amenities. If one thinks properties are under-valued in Bella Vista now, wait a few years.
The more important question is whether we should consider our golf courses, and all our amenities, as liabilities that should be shuttered, or as assets that should be enhanced?
Our golf courses now provide 70 percent of total revenue from all amenities, and they have the potential to generate more, relieving pressure from other sources like monthly assessments.
Tom cited frequently repeated, yet incomplete, statistics about the decline of golf. A thorough analysis reveals golf grew at a steady pace for many decades. Then Tiger Woods came along and a huge bubble of popularity ensued, particularly among young people. That bubble burst back to the historic line and golf is now showing similar upward growth to past decades. More importantly, due to the baby-boomer demographic, the number of golfers turning age 65 between now and 2029 has never been greater. And as their work and family demands ease, they will be looking for places to play a great deal more golf.
Like Tom, many of us study the Rejuvenation Plan and like some items better than others. Tom didn't like that the "New Riordan" project is scheduled for 2020, rather than being earlier. This may be the most important project on our long list. It's the largest and most expensive, and will take several years of collecting additional assessment revenue to afford it.
Making the plan financially viable was a formidable challenge. Cooper Communities has multiple developments across five states. While our monthly assessment remains $24, the next cheapest is Hot Springs Village at $65. No other community is less than $100.
Two key factors differentiate us from the others. First, when we incorporated as a city, the POA turned over police, fire, streets, and trash. This resulted in a net savings of $4.3 million of an annual $16 million operating budget. Second, and more importantly, we are larger and can spread the cost over more properties. These two things have allowed us to operate without an assessment increase for years. But they aren't enough to rejuvenate our aging amenities.
We've worked hard to develop the best plan, at the lowest possible cost, to benefit our large, diverse community as a whole. Yet some say they like all but one or two things, but because it isn't a 100-percent fit to their individual interests -- or a strongly-held opinion -- they plan to vote no.
I hope we can all rise above our uniquely personal priorities and think carefully about what this vote means for all of us.
• How attractive will our future be if we approve the assessment increase and complete the Rejuvenation Plan?
• What will become of Bella Vista if we do not?
• If this fails, will a new group of volunteer board members have the will, and the skill set, to find a better, more cost-effective plan?
• Are we instead destined to slow, but relentless, decay of our amenities?
And will this happen because the majority were more exposed to, and more influenced by, negative and uninformed rhetoric than facts and perspective?
I hope not.
Ron Stratton
Vice Chairman,
Bella Vista POA Board of Directors
Editorial on 08/17/2016