Board Advisory Group Met with City Staff

Yesterday, members of Victor Gardens’ Board Advisory Group met at City Hall to discuss the proposed turnover of the Victor Gardens Community Association (the master HOA) and the Single Family Village Association.  

The group met to discuss legal and financial issues as homeowners consider assuming control of the two associations.  A punchlist of unfinished developer projects, city projects, and items the Association is responsible for were also discussed.

More specific information will likely be available in the next week or so.

Learning from Liberty on the Lake

Members of the Board Advisory Group met this week with Sarah Buerkley.  Sarah lived in CPDC’s other community, Liberty on the Lake, when it was transitioned to homeowner control.   She served on Liberty’s master association’s Board of Directors for four years after the transition as President, Vice-President, and Secretary.  Victor Gardens Board Advisory Group asked a number of questions of Sarah in the hope that the group could learn from Liberty’s experience.

Here is a brief outline of what was discussed:

1. Liberty transitioned in 2003

2. The transition was planned for a period of months but took effect over the period of one Annual Meeting.

3. Liberty transitioned as originally planned, as a certain percentage of lots were sold.

4. The transition was viewed as a very positive experience for residents.

5. Question: Were there any problems that residents were surprised about or unprepared for?  Answer: Residents had not anticipated the level of costs that CPDC covered as part of the developers marketing budget.  The master association needed to increase dues after transition to maintain the level of amenities and services that residents had come to expect while under CPDC control.  The association also had to adjust their budget anticipate reserve fund needs.

6. Liberty’s master association is structured with a master board, and 3 sub-association boards.  

7. Liberty works with a management company whose responsibilities are similar to Victor Gardens management company.

8. Responsibilities for planning social events and some landscape planning is carried out by volunteers. 

9. Liberty’s day-to-day administration is carried out by their management company, Durand & Associates.  

10. The level of service and quality of Liberty’s amenities increased as a direct result of their transition from CPDC control.  This includes landscaping, snow removal, community center, overall appearance, etc.

11. Liberty’s current association does not rely heavily on volunteers to carry out the responsibilities of their association.

12. Liberty’s Architecture Review Committee was partially transferred from CPDC at the same time.  Before residents gained full ARC control, CPDC transferred some ARC control, notably to set and enforce landscape and architectural changes to existing homes. 

13. Liberty’s ARC consists of a group of 5 residents.  

14. Liberty’s association did not have outstanding debts that residents didn’t know about before transition. 

15. There were no major financial problems that resulted from the transfer.

16. Sarah was not aware of any legal problems that resulted from the transition.

Master Association Dues Likely to Increase 25%

Victor Gardens Board of Directors and Community Development, Inc. are working on a final 2009 budget for the Victor Gardens Community Association (the master association).  Earlier this week, two proposals were examined by the Board.  It was determined that more was required in the reserve fund to maintain the growing number of VGCA’s amenities.   Dave Hempel listed a few of those amenities and their expected maintenance schedules:  

1.  2- Gazebos ( Provence and Flora Way)                            $15,000             2008             25 yrs

2.  2- Gazebos painting ( Provence and Flora Way)                  $3,000            2008               7 yrs

3.  2- Gazebos roofing ( Provence and Flora Way)                    $4,000             2008             25yrs

4.  VG North Clock Tower (Roundabout at Rosemary Way)      $20,000            2006             25yrs

5.  Replace clock                                                                  $2,700             2006             10 yrs

6.  VG North Clock Tower painting                                           $3,000             2006             7 yrs

7.  VG North Clock Tower roofing                                            $6,000             2006             25 yrs

8   Add 2 more irrigation systems - Provence and Flora Way

1. * Future Grantaire Lane irrigation and postal stations also figure into reserve fund calculations.  Maintenance of the proposed foot bridge across Clearwater Creek will be the responsibility of the City of Hugo.

A final 2009 Single Family Village budget has been approved.  It reflects a 25% increase in the amount that the SFV pays to the VGCA.   Therefore, it’s very likely that the Board will approve a 25% increase in VGCA dues for all of the sub-associations.  

In the near future the Board will likely release a final 2009 VGCA Budget.  When it is finalized, it will be posted with the others on the Financials page.

Master Association Turnover Moves Forward

As mentioned before in the VGCA Board Meeting Notes,  the turnover of the master association (the Victor Gardens Community Association) was discussed at the last Board meeting.  Dave Hempel has now confirmed that Homer Tompkins has approved the transfer of the VGCA to residents.  Members of the Board Advisory Group have been aware of this proposal, and are currently investigating the details.  Mr. Hempel’s email also confirmed that the Architectural Review Committee would still remain under the control of the developer, CPDC - POA-Sherer.  An excerpt of Mr. Hempel’s email:

“... follow up on the question of turnover of the Victor Gardens Master HOA to residents, Homer has approved of the transfership of Master HOA to the residents. Please prepare the appropriate paperwork to achieve this as well as schedule meeting.  The developer, (CPDC - POA-Scherer) however, would still retain ARC control in VG.”  - Dave Hempel

VG Organizational Chart

Over the last year I’ve heard many questions asking which company was in charge of specific areas.  Who was the master developer?  How does Community Development fit in?  To clarify things, Mike Bailey and I drafted a chart to illustrate how VG was organized.  I fact checked it with Dave Hempel, of CPDC at yesterday’s Board meeting.  

The chart shows the organization as of today.  It may change significantly over the next few months as the Single Family Village association is turned over to homeowners and if homeowners gain control of VG’s Board.  In any case, we hope the chart makes the organization more understandable.

Visit the Documents Page to download the PDF copy of the chart.

Board Advisory Group Requests City-Hosted Meeting

Following last night’s Board Advisory Group meeting, the following letter was sent to Bryan Bear, the City of Hugo’s Community Development Director. 

To:

Bryan Bear

Community Development Director

City of Hugo

14669 Fitzgerald Ave, N.

Hugo MN  55038

Dear Bryan,

Our neighborhood's homeowner-led Board Advisory Group met last night to discuss some of what's been happening in Victor Gardens recently.  The meeting's participants resolved to request that the City of Hugo mediate issues between homeowners, builders, developers and our Board of Directors.

Homeowner representatives of Victor Gardens Board Advisory Group requests that The City of Hugo host a public meeting of Victor Gardens homeowners, Victor Gardens Board members, and other decision makers to discuss the future of our neighborhood.  The focus of this meeting should be working towards resolving Victor Gardens budget issues and ensuring high architectural standards in future building.  Although it is difficult for our Group to determine exactly who all those decision makers are, they certainly include:

1. Homer Tompkins of CPDC

2. Pete Scherer of POA-Scherer

3. Len Pratt of POA-Scherer and Pratt Homes

4. Rottland Homes/David Bernard Builders

5. Ryland Homes

6. The Beard Group

Other important meeting participants should include:

1. Mayor Fran Miron

2. Council Person Becky Petryk

3. Community Development Director Bryan Bear

4. Hugo's City Attorney

5. Chuck Schneider of Community Development Inc. (VG's master association management company), 

6. Homeowners and their representatives on the Board Advisory Group.

Homeowners, through their Board Advisory Group have determined two priorities that must be addressed at this meeting.  

1. 1. Victor Gardens budget problems  

2. 2. Ensuring high architectural and landscape standards in future Victor Gardens building.

It has been reported that The Beard Group (Victor Gardens newest proposed landowner), will be closing on 26 VG lots in the near future. It is important that homeowners are informed about Beard Group's intentions as soon as possible. A meeting will serve this purpose, in addition to addressing the two significant homeowner concerns stated previously.

We would appreciate your thoughts on this idea.  The Board Advisory Group felt that the City of Hugo's invitation would likely lead to a productive results for everyone involved.  Homeowners would be happy to offer more background information on these issues before the proposed meeting.  Members of the Group could make themselves available to discuss the situation with you.

Respectfully, 

Mark Vlker

Single Family Village Liaison to Victor Gardens' Board of Directors

Member of the Board Advisory Group

CC: Residents of Victor Gardens via open letter on http://victorgardensnews.org website

Remaining Lots in the Single Family Village

The Board Advisory Group is asking questions about the new owner of remaining of VG East lots in the Single Family Village.  I have not been provided answers to most of those questions, but in an attempt to clarify things - I compiled the following map of remaining Victor Gardens East Single Family Village.  The map includes remaining CPDC, Ryland Homes & Pratt owned lots.  I believe it to be correct based upon the information that I’ve been given.  The map may not be 100% accurate, but it’s pretty close.  Also, it’s uncertain whether the areas near the wetlands (colored in aqua) will be owned by the new owner, or someone else.  

 To download a clearer version of the map, please click here.

Questions of Victor Gardens Future

The Board Advisory Group recently asked questions of CPDC regarding the future development and the state of Victor Gardens Community Association (the master HOA).  With discussion of a new owner, “The Beard Group”, these questions are just as relevant now as they were before.  The Board Advisory Group is interested in finding answers to these questions.  Below you’ll find a outlined list.  Homeowners are encouraged to add to or discuss anything you see below by using the “Comment” features.

1)Questions about Victor Gardens East’s new owner “The Beard Group”

a)What other residential developments has the Beard Group been recently involved with?

b)Are there plans to build houses by individual builders or all one builder?

c)Who will control the VG Architectural Review Committee?

d)How does the new ownership affect the VGCA?

i)Does the new owner affect the makeup of the Board of Directors?

ii)Who will have controlling interest on the Board of Directors?

iii)What changes will be made with new ownership? 

iv)Who will control the VGCA budgets?

v)Will Community Development Inc. remain as community managers?

e)Does the new ownership affect the percentage of lots "sold" (in regards to homeowner control of the VGCA)?

f)How does the new owner view the original vision of VG’s “master plan”?

i)Will the new owner follow or modify this plan?

g)Will the new owner complete the construction of the developer’s unfinished projects? 

i)Permanent Postal Stations for residents on Grantaire Lane?

ii)Landscaping, irrigation, park structures, benches on Grantaire Lane’s cul-de-sac?

iii)Trail connection (over a bridge) between Grantaire Lane lots and Pratt’s Creekside Villa lots?

iv)Street connection of Garden Way & Val Jean Blvd. near wetlands/pond area.

h)Does the new owner have a marketing plan to sell lots and build appropriate homes?

i)Is there a budget for marketing?

(1)Sales Office/Brochure Boxes?

(2)Website update?

(3)Builder Signs?

(4)Lot ID signs?

(5)Advertising?

2)Questions about CPDC's current involvement in Victor Gardens.

a)Does CPDC only own 14 unsold lots in the Single Family Village?

b)Does CPDC still own other properties within the overall VG site?

3)Questions about CPDC’s future involvement in Victor Gardens

a)Will the current financial health of CPDC affect VG in the near future?

i)Please address how financial status of CPDC’s other developments might affect VG. (Towne Lakes, Inspiration, Glendalough, Mayo Woodlands, Harmony Village, etc)

(1)Is VG in better or worse financial shape than those other developments?

(a)Example: Recent news reported foreclosures and Sheriff’s auction in Inspiration.  Is VG’s remaining 14 lots next?

(2)Are more defaulted CPDC loans in VG's future? 

b)Will CPDC still be represented on VGCA’s Board of Directors?

4)Questions for VGCA’s Board of Directors about the VG’s future

a)Homeowners are concerned about the current housing market’s effect on the future character and value of VG:

i)Who will control the Architectural Review Committee (ARC) in the next year?

ii)How will the ARC scrutinize new homebuilding and landscaping?

(1)Which architectural and landscape guidelines will be used going forward in the remainder of VG’s Single Family Village? 

(a)The “West of Clearwater Creek” standard?   -or-

(b)The “East of Clearwater Creek” standard? 

b)Homeowners are concerned about VGCA’s budget issues:

i)How will the Board prevent unpaid invoices causing vendors to stop servicing VG?

(1)Will the City turn off VGCA’s water?

(2)Will Early Bird stop mowing common areas? 

(3)Will the pool be cleaned, etc?

ii)What are the Board’s plans for paying off old debts?

(1)Negotiate with vendors?

(2)Payment Plans?

iii)How will the Board adjust the budget for next fiscal year?

(1)Increase income with “developer contributions” & financial help from builders?

(a)Does the Board intend to ask the new VG East owner to make “developer contributions”?

(b)Does the Board intend to ask Pratt, Ryland, David Bernard, etc. plan to make “developer contributions”?

(2)Will the Board have to cut amenities next year?

(a)Pool?

(b)Neighborhood Activity Center?

(c)Annual plantings / garden budget?

(d)Fountains?

(e)Mowing?

(f)Snowplowing?

(g)Other?

c)What is the status of townhomes not currently under a sub-association?

i)Will those units be consolidated into an existing sub-association or begin another sub-association?