There was a Town Hall presentation on Monday in which the Advisory Board announced that we have reached a tentative agreement with the owners of Desert Mountain Properties (DMP). This agreement is in lieu of the turnover described in your Deferred Equity Membership Plan that is scheduled for March 1, 2011. This transaction stipulates the purchase by the newly formed member club (the Equity Member Entity or “EME”) of essentially all assets contained within The Desert Mountain Club with the exception of the remaining DMP inventory of thirty-eight properties and their attached memberships. In other words, this is the “Global Resolution” that they have been seeking.
The tentative agreement was memorialized in a Letter of Intent that was executed by both parties the night before on Sunday, October 17th and is subject to approval by a majority vote of the Deferred Equity Members of the club. The parties agreed to a cash purchase price of $73.5 million for all assets and a closing date scheduled for December 31, 2010. The impact per member will be an increase in monthly dues to a range of $1175 – $1200 and an assessment of approximately $16,500. This is a much lower assessment than what was rumored to occur.
The details of this transaction were presented in a Power Point slide presentation to the membership at this past Monday’s Town Hall meetings. For your reference, the slide presentation is posted on our Downloads page.
The Advisory Board has approved the terms contained in the Letter of Intent, subject to the successful execution of a Purchase and Sale Agreement with the owners of DMP. Finally, based on the overwhelming benefits of this transaction, as compared to the scheduled turnover, the Advisory Board is recommending an affirmative vote in order to proceed with the transition of Desert Mountain from a developer owned to member owned club.
More information will be presented at the annual Desert Mountain Expo, scheduled for Thursday, October 28th at the Cochise/Geronimo clubhouse. Advisory Board members will be present to provide you with additional information and engage in informal discussions regarding the turnover. In addition, our next in a series of Town Hall meetings, to address turnover issues, will be held on Monday, November 15th at the Sunset Terrace of the C/G clubhouse at 10:00am and again at 4:00pm.
I am attending all meetings and will update you as this exciting series of events unfolds. I am of the definite opinion that the Advisory Board has reached an excellent settlement with DMP. All of the Desert Mountain members that I have spoken with have been in agreement. The overall mood of the members is extremely favorable and positive. I predict this agreement will be ratified by the members by a large majority. Please call me if you have any questions about the proposed agreement or assessment.
I am always happy to keep you up to date on what is going on at Desert Mountain. I specialize in selling homes throughout the fine golf communities of Scottsdale including Desert Mountain, Desert Highlands, Estancia, Troon and others. Feel free to call me to discuss the merits of any golf club in Scottsdale.
Carmen Brodeur JD
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260
Cell (602) 791-0536