6 Reasons to Vote Yes for the Desert Mountain Club Turnover

A tentative agreement has been reached with Crescent Properties (the current developer-owner of Desert Mountain Scottsdale) for the members to purchase all of the assets of the Club for $73.5 Million on December 31st. All Desert Mountain Members will receive a ballot in the mail this week to vote for the Club turnover. The approval of the membership is required to ratify this agreement. I believe the agreement is very advantageous for members and I urge all members to submit their ballots. Please remember that if you don’t vote it will count as a no vote. While each member needs to make their own decision regarding how to vote there are many reasons to support this Global Transaction:

1. Members will control all of the critical elements of Desert Mountain: governance, operations and the economics.
2. Includes all of our assets, not just some, and resolves many important ambiguities in “turnover” documents: Unsold golf and club memberships, 2,750 acres of Northern Properties on the mountain, Parcel 10, Parcel 19, office building, gate house, real estate sales and three other significant lots, inventory, art and many other assets.
3. Eliminates almost certain continued, lengthy, and expensive negotiations and uncertainty that would likely result from the scheduled turnover.
4. Eliminates restrictive lender covenants imposed by the seller and serious covenant and limitations in Club bylaws that would affect club operations.
5. The purchase price for more assets than expected is $73.5 million as compared to an estimated $78 million or more under the scheduled turnover.
6. Allows us to take control of the club on January 1, 2011, two months earlier than the scheduled turnover.

DM owners and members will completely control their own destiny without outside interference or covenant/bylaw limitations. Under the Global Transaction DM members will own many more assets at a lower price with lower member assessment than most expected under the turnover. The proposed dues increase, which is not final, is consistent with the marketplace, provides financial flexibility to the Club and is in the range expected by most.

If you are interested in learning more about the Desert Mountain Golf Club turnover feel free to contact me. I would be happy to answer any of your Desert Mountain questions.