HOW DID WE GET HERE? By Vernon Young ~ President of The Board Some time in the late 1970’s or early 1980’s some men decided to buy about 7000 acres of land situated just south of Kansas, OK, straddling the Delaware and Adair County line.  Their idea was to subdivide this land into about 4700 lots, ranging in size from a little less than an acre to a little over an acre each--excluding the areas that would become the RV Parks.  The developer’s plan was to sell these lots and develop Common areas such as Clubhouses, Tennis Courts, Ball Diamonds, Miniature Golf Course, and Fishing Lakes--one of which was to be a very large lake. All the main roads were to be paved and all other roads were to be natural earth roads.  A water system was to be developed and water lines to be installed along side these roads. To make all this work in the future, some kind of government had to be formed.  Incorporating this development seemed to be the way to go, so Articles of Incorporation were drawn up as well as Restrictive Covenants.  These were all State and County approved documents. To get the ball rolling these men decided to create a couple of Recreational Vehicle Parks.  These lots would be just large enough to park RV’s on and being small would allow many of those lots to be put into a small area.  Thus, they could be sold at reasonable prices.  Since there were so many of them this would generate a lot of money fast. The owner/marketer of the development had one agenda: to sell lots.  That is how he made money.  In order to do so, they made certain decisions that were in their best interests, actions that in the long run have come back to haunt the Property Owners Association members.  We find ourselves now forced to deal with several of the serious issues growing out of their harmful strategies for receiving quick money. One of the items necessary for selling concentrated lots is a water and sewage system. Hidden costs were absorbed by the developer to help sell lots.  A new water and sewer system does not require much money to maintain, particularly while there is low occupancy.  As time passed and occupancy increased, the situation has dramatically changed.  It has always taken money to run every block, but much of it were hidden costs to the developer when they were still in charge-- items such as pumping costs, lighting and certain recreation amenities that originally cost the new lot owners little or nothing.  These were absorbed by the developer, not because they were generous, but because it allowed them to sell additional lots. The game plan was to sell to a certain point and get out, leaving the real expenses to the property owners. Another serious action by the developer, particularly in the RV parks, but in general throughout the development, was to ignore several rules they had established so as not to discourage potential buyers. They continued to allow circumvention of the rules, beginning in the RV parks, so that eventually these parks had more and more full time residents. Flint Ridge RV Parks, as they came to be known, were advertised heavily.  Incentives to visit and hear the sales pitch were many.  Sales were brisk and money was abundant. Next, the developer began to sell home site lots in the larger area of Flint Ridge.  These lots sold from $7000 to $30,000 each.  In order to sell these lots there had to be strong incentives for people to buy them.  The developer began building the Common areas, Clubhouses and all the aforementioned amenities.  Because the large lake that was to be built wouldn’t hold water it was decided to build a Golf Course instead. This strategy by the developer worked well and drew people to come and buy land.  The developer knew that after a while these projects would ultimately have to be maintained.  Therefore, according to the Articles of Incorporation and the Covenants, the Property Owners Association was formed and small assessments were levied.  Since everything was new there were few expenses and the developer, in order to promote sales, did not want large assessments which might discourage sales. The Articles of Incorporation, or the Covenants, prescribed that when 90% of the lots were sold the development would be turned over to the POA.  With this many property owners, assessments would not have to be very large and everything could be maintained in good order. But, about the time 40% of the lots were sold the original developer got into financial trouble.  We do not know why this financial trouble came about although there are several feasible reasons. At any rate, the original developer bailed out and Flint Ridge Land Company, LLC ended up with Flint Ridge Development. FRLC couldn’t handle the financial boondoggle either so it was either file bankruptcy or do some creative financing.  Property owners were faced with a dilemma: if FRLC went into bankruptcy the owners would end up with just a lot in the woods, with uncertainty of access and potentially with no water since the water plant was owned by the developer!  At this point there was danger that someone else like FLRC might come along and buy Flint Ridge for ten cents on the dollar, leaving owners vulnerable to many negative possibilities.  The Flint Ridge Property Owners Association decided that the only way they could protect themselves was to take all the Common property and assume all the developer’s existing debt against that property.  The developer would retain all the unsold lots and continue with a sales campaign.  Since the POA didn’t want the developer to run the place his assessments were abated in exchange for his voting rights. Thus began our woes. In 1990, full transfer of all costs for maintaining sewers on private property ( RV 1 & 2 lots), for the cottage lots (which continued to be operated by the association until recently at no charge to the individual owners), the clubhouse, and the other common buildings was made.  In addition beginning in 1987, the costs of maintaining the roads, water lines, physical maintenance of buildings, mowing and other upkeep of property such as insurance and taxes were assumed. Remember that only 40% of the lots have been sold. Somehow, through very frugal management, the FRPOA survived the next few years.  People tried to take Flint Ridge over; lawsuits were filed; and other difficulties were numerous..  Records were taken from the office, as were master drawings of property and buildings.  Chaos reigned. One reason for the survival of Flint Ridge was that little, if any, maintenance was performed on the roads and buildings.  There simply wasn’t enough money available.  Some property owners were disgruntled; a few refused to pay their assessments and assessments; others were slow to pay. It is important to remember that there was no money available for enforcing payment, forcing the POA into mere struggle for existence. Somehow in the mid-1990’s the debts were paid off and FRPOA was debt free, but broke!  At this point we had, and still have, about an 2000 member base that pay assessments on a pretty regular basis. If one does the math on this, it is evident that it is increasingly difficult to make ends meet. Persons familiar with the “Round House,” the “White House,” the “Clubhouses,” the “Offices,” and the “Roads” can clearly see to what extent the maintenance has fallen.  {I must mention the Clubhouse at RVII which a number of fine folks took the initiative to remodel. It is in very fine shape thanks to these dedicated Property Owners.} Had we had 90% lot sales instead of 40% when we assumed these debts, this would have been a cakewalk instead of a nightmare. When Deer Lake failed to hold water, and the Golf Course was built in its place, no provisions for financial support were made except for the assessments on all golf lots purchased after 1986. Why all the lots were not included is unknown, but they were not.  All lots purchased after 1986, however were assessed for the Golf Course. Some time later the Board of Directors yielded to people who did not play golf.  Thinking the golf assessment was unfair, persons who did not play golf were allowed to opt out of their obligation to pay an equal assessment to the Golf Course.  This was a serious error that threw us into further financial crisis. We have a very large investment in the Golf Course, Clubhouse and Restaurant with no way of getting rid of them, even if considered advisable.  Without the Golf Course we would again “just have a place in the woods.”  Some say; “Close the thing down.”  That would be disastrous!  It is a part of the amenities guaranteed in the covenants of many of our blocks, and we absolutely cannot legally deprive these owners of it Others say; “Why don’t you lease it out?” We would be very happy to do so if someone could be found who could take it and operate it properly.  It is unreasonable to expect anyone to undertake an operation that does not have sufficient business to make a profit. Someone else may say; “Open it up to the public.” What public? We are miles away from the public.  We must rely on our membership to support these facilities.  This gets back to the need for 90% ownership.  If 90% of the lots were sold and paying assessments we would not have the problem. This was the developer’s plan that did not succeed and we are stuck with it! This article is an effort to explain to all Property Owners the necessity for submitting a budget that will enable us to bring our property back up to the level all of us desire.  It addresses these long deferred maintenance needs, provides for the continuance and improvement of amenities--including canoe trips, sycamore park camping, lakes and trails usage--plus roadway and building upkeep and improvements.  With deep concern, the Board of Directors has established a budget that will allow us to accomplish the most pressing needs facing Flint Ridge. None of us enjoys paying any more than necessary, but, we have coasted too long; now it is time to pay the Piper or lose what we all purchased originally. Fellow owners, we cannot depend on Adair County or Delaware County, the state, or Washington to solve our problems, They will only be fixed and our investments here saved if, we, ourselves, take the steps necessary to do so. We are pursuing the option of getting a 75/25 rural development grant loan (75% of which we dont have to pay back, and the other we pay back over as much as thirty years at a subsidized rate).  We are considering other options that may generate additional money for us without giving up property rights.  You will hear more about these in the future as plans are developed. We regretfully have decided against the municipality option based on the advice of the municipality committee composed of Buddy Fallis, Ed Guffey, and Dick Gibbons.  The reason for this decision is that our covenants and deeds of incorporation require that 2/3 of all property owners must vote to transfer property to such a municipality in order to get the ad valorem (property tax) relief from $15,000 plus per year for the common properties. Since the municipality option as a source of relief has been eliminated, and the potential benefits of the grant loan and its improvements are still in the future, it leaves us presently only one option for dealing with our difficulties: POA assessments.  In September we reduced a skeleton staff by over ten percent.  Our spartan budget has been cut an additional $13,000 annually.  Despite that and the effects of staff reduction, increased water rates and charging for water usage over the minimum, we continue to fall short on funds.  Thus, POA assessments are our only dependable available option at this point. This dilemma makes it necessary that beginning January 1, 2001, the base rate for POA assessments will be increased to $35.00 per month--with no discount for annual payment-- plus water, sewer and electrical charges, and applicable golf charges. In spite of these realities, good things are happening on Flint Ridge.  Every year our population increases.  People are building nice homes--about 12 to 16 homes a year.  As time goes by our base will increase and assessments can decrease. As we get our roads and buildings back in shape the need for large expenses will diminish.  FLINT RIDGE is going to be a GREAT PLACE TO LIVE! In closing, we express our appreciation to those property owners who have stepped forward to serve on committees for researching and bringing recommendations to the Board concerning issues and ideas for making Flint Ridge a strong and viable community.  Our gratitude to all who have given unselfishly of themselves in maintaining flower beds, picking up trash, mailing newsletters or in any other capacity for making Flint Ridge a better place to live and play.  We salute all those who have so faithfully paid their POA assessments month after month, year after year.   $100.00 Membership fee   In any exchange or purchase of a lot there must be paid a membership fee to cover expenses   of this transaction.   Even if you are signing your lot over to family, they must still pay the membership fee in order to receive   their gate cards.   The membership fee includes the purchase of two gate cards.   $100.00 UTILITY FEE   Beginning December 1, 2000 New NON-Owner Accounts will be charged a $100.00 per utility set up charge   (does not affect current users). RENTAL RATES... Rate changes, Effective October 1, 2000 Cabins up to 2 people ($52.50 plus tax $2.63) -2-4 people an additional $8.00 per night ($60.50 plus tax $3.03) -More than 4 people an additional $15.00 per night ($75.50 plus tax $3.78) White House up to 6 people per floor $85.00 per night plus tax $4.25 -From 6-10 people an additional $10.00 per night ($95.00 plus tax $4.75) -Over 10 people per floor an additional $20.00 per night ($115.00 plus tax $5.75) Hereafter reservations for 2 or more days may be made up to one year in advance, HOWEVER all reservations must be confirmed no later than 60 days prior to dates reserved with a deposit of $75.00 per rental/floor.  NO SINGLE DAY RESERVATIONS MAY BE MADE FOR WEEKENDS MORE THAN TEN DAYS BEFORE DESIRED DATE BETWEEN MAY 1st and LABOR DAY. ALL DEPOSITS AND PAYMENTS FOR LODGING MUST BE PAID IN ADVANCE AND BEFORE KEYS WILL BE GIVEN OUT...NO EXCEPTIONS PAR FOR THE COURSE Annual Ice Man Tournament - Two man teams February 10th and 11th 10:00 a.m. starting time Format: 9 holes best ball - 90% of Handicap Each day: 9 holes alternate shot - 90% Handicap       9 holes scramble - scratch $60.00 per team (does not include green fee or cart fee) Gift Certificates & Cash - Closest to hole Long put - Longest Drive - skins on the side (optional) Bring a guest and come have a good time at Deer Valley Golf Course - The course will be closed to other play. Need More Information Call: 597-3636 Have A Merry Christmas and A Happy New Year!