Following is the text of a communication sent to the Pelican Landing Board on 10/18/2012
There were a number of questioners that were not called on at your special meeting. How about publishing a Q&A for the members? Here are some of my questions:
Q: If the letter of intent with WCI was completed on September 13, why didn’t the Board mention such a significant event at the monthly Board meeting a week later, instead of waiting until September 27 to email a notice of an emergency Board meeting on October 2? Why didn’t the Board provide the members with any of the terms and conditions already negotiated, or simply provide a copy of the actual letter of intent in advance of the special meeting?
Q: How was the $700,000 purchase price derived? Was it the demand of WCI, or was the asking price higher and negotiated down?
Q: Aside from use of the ramp, which WCI arbitrarily shut down, and peace of mind over our legal rights to use the Marina area for access to the beach park, what are we getting for $700,000, aside from a host of expenses and liabilities?
Q: As a consequence of various documents and the resolution of prior disputes, it appears that WCI is currently obligated to provide all the benefits for which it now wants to be paid $700,000. In the many prior disputes that PLCA has had with WCI, including disputes specifically regarding rights to the marina area, was PLCA represented by counsel? If so, why are the rights of PLCA in such doubt that it is now a sound decision to pay another $700,000 to assure those rights, after already securing them at least twice in the past?
Q: How much does PLCA have in the capital fund referred to and how much would remain after this proposed expenditure? What else is the fund projected to be utilized for? How does it relate to the reserves held for specific projects such as the beach project? The Tennis Advisory Group was recently told that a needed, fairly modest project couldn’t be considered because of the anticipated drain on funds from the marina purchase.
Q: Why isn’t the marina, along with access to the docks and the associated rights, an “amenity” that should be turned over to PLCA by the developer (WCI) at no charge, with all maintenance and other obligations performed up to date and appropriate reserves posted by the developer?
Q: What are the legal risks and financial obligations for which PLCA would be assuming responsibility in maintaining the docks, the 70 channel markers, the dredging of the dock and channel areas, the maintenance and probably reconstruction of the small office facilities, the maintenance of the ramp and the compliance with the obligations under the submerged land lease, including the physical work and the permitting costs? Would we be responsible for maintaining the channel all the way to the island? Where does our dredging and maintenance responsibility stop? What is the source of the channel and marker maintenance responsibilities? Will WCI transfer these “assets” to PLCA in full compliance with its maintenance and repair responsibilities, or is WCI proposing to burden PLCA with significant deferred maintenance?
Q: If the small building in which WCI is mandated to supply 400 sq ft of office space must be replaced because of age, mold and other issues, what is the cost of doing so, including modern approved septic system or a sewer line to that area?
Q: Who maintains the Hyatt boardwalk? Is that responsibility currently fulfilled? Are those boardwalk rights vested forever, or do they ultimately lapse? Was Hyatt offered this deal to purchase the marina?
Q: Is the submersed land lease in good standing so that it can be assigned to PLCA and so that PLCA can exercise the full rights granted thereunder? Will PLCA obtain a WCI indemnity for its prior, pre-closing activities? Is PLCA proposing to obtain a confirmation from the lessor that the lease is in good standing and in full force and effect without any defaults or events which could be defaults by WCI under the lease?
Q: The lease appears to be for a short term with the right to request renewals, but also with the right of the lessor to terminate it at any time. Why is such a lease worth $700,000? If the lease is terminated, the lessee is obligated to remove all improvements. Has PLCA calculated the potential cost of this responsibility? The lease says all permitted improvements (e.g., docks) must be constructed by a date in 2009. What assurances does PLCA have that additional dock space referred to at the meeting can be built after 2009?
Q: WCI said it has an “entitlement” to 700 additional units in the Colony, but that, speaking practically, less than 500 are likely ever to be built. Why would PLCA agree to the transfer of 200 units of entitlement to Raptor Bay when those 200 units are illusory? What are the positive and negative aspects of such a transfer?
Q: Will the 200 additional potential units have the right to use our amenities? Did a Board member state that the 200 additional units would be the source of additional funds (annual assessments?) to be paid to PLCA? When, why and how much?
Q: Will there be a written agreement relating to the responsibility of the hypothetical 200 additional Raptor Bay units to pay their share of beach park expenses, including capital expenditures (including relating to the beach project and its subsequent repairs)?
Q: If the Hyatt/WCI joint venture timeshare project is of dubious profitability, what written assurances and financial guarantees does PLCA have that it will meet its supposed obligation to assist in funding the beach renourishment project? Is it reasonable to ask the same question of Hyatt itself?
Subj: Coconut Point Marina
Date: 10/18/2012 8:15:28 P.M. Eastern Daylight Time
From: Barry Stiger
To: email@example.com, firstname.lastname@example.org, email@example.com,