POA RECORDS REQUEST #0005: Accounting Records ~ Developer Platinum Cards & POA Marketing

BIG CANOE POA RECORDS REQUEST 0005:
“Accounting Records ~ Developer Platinum Cards & POA Marketing” sent Tue, Sep 4, 2018 4:36 pm

To: Jill Philmon / Big Canoe General Manager
Cc: The POA Board

Please find attached a 2 Page PDF Request to Review and Copy Records, made pursuant to Big Canoe Policies and Related Procedures; Procedure 156.2 (POA Member Access to Records)

http://www.bigcanoe.themountainsvoice.com/docs/RecordsRequestToGMandBoard-0005(2018-09-04).pdf

Before proceeding to the actual article below, I highly recommend that all property owners read the above request.  These are not the newspaper making these requests, these requests are being made by a Property Owner to the Big Canoe POA.  These are legitimate and legally allowable requests that continue to go unanswered.  Every property owner should be aware of the types of information being hidden from them.

Many people believe that the Big Canoe Developer retains certain rights based upon the percentage of land owned.  That was changed in the 2005 Amended Covenants under Section 5 (g).

(g) Anything to the contrary in the Declaration notwithstanding, the Type “D” membership shall cease and all specific rights of the Type “D” member shall end (1) two (2) years after the date that the number of individual lots (improved and unimproved) on the POA’s assessment records is greater than 4,500, or (2) on such earlier date as the Type “D” member consents to in writing.

Currently the community is at approximately 3,750 individual lots, so they have a long way to go.  Potts Mountain was supposed to add 900+/- more lots.  That is gone.  The 50+/- in the High Gap area is gone.  There are 2 current future possibilities….. (A) No more land is added to Big Canoe, and we could be stuck with the Developer forever.  Or (B) the Developer starts pulling in more land, which they have the right to do, and which they can set their own lot density levels on.

In regards to (B), there are currently two areas of Big Canoe that are initially in jeopardy of undergoing intense congestion in the future, but that nobody is talking about.

1. Wildcat.  There are 78 acres adjacent to the northside of Wildcat that are owned by Southfund Partners.  It backs up to some of the most private, expensive and exclusive lots in Big Canoe.  The Developer has over the years showed interest in purchasing that land (I know this personally because I have talked to them about purchasing the land myself, and have heard it directly).  I’ve made a big deal about the “Sale” of 64 acres adjacent to this property, as part of the 2016 Land Deal, because Tax records showed that not only have we already been the owners of record on that property for 20 years, but we have also been paying the taxes on it.  But the BIGGER issue was that as part of that “Sale” the developer granted themselves new “Exhibit B” rights on certain tracts, and those rights involve access easements and utility easements – the sort of things that can ONLY have value in connecting in new development areas.  If the Developer were to purchase that 78 acres and utilize those new access rights, then they could tie that property right into Big Canoe, and they could add a high density development in that area.  Here is a visual…
   
2. The Village At Blackwell Creek (“VBC”) (formerly known as Whispering Creek).  The Developer has ALREADY started absorbing portions of that community.  In January 2016 the Developer purchased 4+ acres from VBC.  It appears that this land was originally positioned as part of the 2016 Land Deal, but immediately after the Vote, but before the actual Land Sale, it was transferred to the Big Canoe Building Group, a division of the Developer, and is currently replatted as 4 lots (047C 016 002, 003, 004, 005) inside Big Canoe.  Two more very interesting things happened recently…. (A) VBC replatted their road system, and now it includes a direct tie-in to Kilmartin Point in Big Canoe.  They also had all their previously platted lots combined into one big raw land chunk – able to be redivided and replatted into whatever development density they can get away with.  See visual representation below….
   
   (B) Plus, and this is very telling, in 2017 VBC just redid their Covenants, to include the right to merge with Big Canoe.  As of now, any property owners within VBC are  subject to the possibility that at anytime VBC can submit the community, or any portion thereof, to Big Canoe for submittal into Big Canoe under the Big Canoe Covenants – at which time the VBC Covenants would become subjective to Big Canoe.  The developer could do this without any vote or say from the POA or Community.  Here is a link to the document amending the VBC Covenants – http://www.bigcanoe.themountainsvoice.com/docs/VillageOnBlackwellCovenants(OptionAddToBigCanoe).pdf

Here is a side note of interest in the event Big Canoe were to absorb that VBC property.  I was actually the original Whispering Creek Developer’s representative for that property, so I am very much aware of it’s problems.  There are massive block retaining walls that hold up various roadways in the central portion of that property.  Over 10 years ago I was warning the original developer that the roads were developing huge cracks and were at risk of collapsing.  One entire cul-de-sac eventually did collapse, creating an ecological disaster in Blackwell Creek.  I do not care what the current VBC developer is saying, those roads that they “patched” had HUGE cracks in them, and I was told by local contractors that they were filled with old tree stumps and not built to code.  A retaining wall engineer told me that the angle and construction on the walls was most likely not to block specification, and was of concern.  If the developer were to add that property – then the POA could end up being financially responsible for any subsequent road repairs that might arise, and if one of those roads were to collapse, the price tag would be astronomical.

So returning to the original issue of the Records Request, what does all of this have to do with the information sought in the referenced Records Request #0005?

In regards to Part 2 of the Records Request, a property owner is seeking accounting information on the newly created “Marketing” Department.  In the presentations to the community leading up to the 2016 Land deal, it was stated…

What plans does the BCC have to market Big Canoe after the acquisition? Last year (*2015*), the Big Canoe Company spent approximately $850,000 in marketing expenses and hired a marketing firm and a marketing manager. They have indicated that they will be making a comparable investment in marketing this year (*2016*).

It doesn’t reference anything after 2016.  One of the interesting false narratives that emerged in 2017 within the community, was that “the Developer was on the way out”.  I myself was guilty of believing that, and repeating it, because I had heard it presented by so many sources as to what the Land Deal was supposed to initiate.  But in reality, the Developer really didn’t give up much at all in the way of “Rights”, and retains the right to bring in land and continue to develop high-density new neighborhoods for many years to come, possibly stretched out for as long as they desire.  They could even stop one (1) lot short of of 4500 – and just coast along for eternity as a Real Estate Company, reselling lots for commission profit, while the POA continues to pay for their marketing, and as they access our marketing results (See (k) below.)

That fake 2017 narrative led to something very important…. the belief that property values were going to suffer since we were losing the developer, and subsequently the Developer’s Marketing monies, so WE, THE POA, needed to pick up the slack.  But the reality is that the Developer is not going anywhere.  The only thing going away….. is the Developer’s primary responsibility to PAY for marketing their new developments, home and lot sales.  Because the POA has once again been suckered into paying for the Developer’s activities.

This Board, led by Phil Anderson, Steve Wilson, and Jim Farinholt (all three of whom were instrumental in overseeing the 2016 Land Deal + the failed monies wasted on the Troon Deal + the failed $10+ Million Dollar Internet Deal which saw $100’s of thousands in wasted monies) have once again sold the property owners down the financial creek – in favor of Developer Special Interests – this time being marketing activities.  They not only raised our monthly dues over this, they even hired the Developer’s Marketing Director (Katie Wercholuk) to run the new POA Marketing department.  The 2005 Amended Covenant even allows, under Section 5 (k) the following….

“(k) The Company retains the right to use POA data for marketing purposes……. ”

Is anybody in the community of Big Canoe paying attention to the financial conflicts of interest involved here?  …or the utter insanity of our picking up the Developer’s ongoing marketing tab?  And again, the Developer isn’t going anywhere… that was just a false narrative to grease property owner support for paying for the new marketing program.  In reality the Developer is just regrouping and planning their next expansion, and we will pick up the marketing tab it for them.

Here’s the real question every property owner in Big Canoe needs to be asking…. Who is this POA Board working for?  Are they in the pocket of the Developer, and knowingly culpable in these decisions?  Or are they simply gullible and incompetent?

One other question regards all the other non-developer Realtors in the community.  We have some fantastic Realtors in this community that are also dues paying property owners.  I wonder how they feel that their dues are now subsidizing their competition’s Real Estate activities?

On a final note in regards to the Records Request Part #1 – requests for the accounting records of expenses made on the Developer’s three (3) platinum cards.  I can’t ascertain anything in regards to these “platinum cards”, their limits, purposes, etc.  The community really needs an update on all the various perks we are paying for in regards to the Developer.  There is a LOT more, but this was just something I ran into during review of the Covenants and thought it would make a good start.  I do NOT expect them to respond.  This Board, the most transparent in history by their own account, has a ZERO Percent response rate so far in regards to all inquiries made to them by this property owner.  If you believe this Board is transparent, try asking them for some source data or documents, or detailed accounting records.