Article
Courtesy of The Herald Tribune
By
PAUL QUINLAN
Published March 23, 2006
VENICE
-- For Ken Nicholson, the $163,000 he paid for his condominium at Jacaranda
Trace, a South Venice retirement community, was plenty. A seasonal resident
looking for a bargain, he couldn't justify paying nearly $2,500 in monthly
dues for club membership.
Neither could many of his neighbors, about 30 percent in all. Although the
club membership includes access to facilities, such as a pool, fitness center,
lounge and dining room, there's no golf course and, at base rates, only 12
meals are included.
But now, Jacaranda Trace is considering changing the ownership rules to
require that all future condo buyers purchase memberships, a move that
opponents say is both illegal and influenced by the stakeholders in the
retirement community, including Steve Roskamp and Greg Patterson, who took
over in 2002 and now run it as the Roskamp and Patterson Management Co.
The plan has created a sharp divide between members and nonmembers. Opponents
say it would slash the resale value of the condos, as prospective buyers will
balk at having to pay thousands of dollars a month for club dues.
Dues currently range from $1,946 to $3,266 for single-occupancy units and
$2,292 to $3,266 for double-occupancy.
"A lot of people wouldn't have bought in here if we knew this would
happen," said Nicholson, who purchased his condo last year.
But members who support the move disagree, saying the requirement will foster
more social interaction and enhance the overall retirement experience, improve
the community and raise the value of units.
"I feel this amendment is necessary and will be to the benefit of
all," said Charles Knowles, who sits on the condominium board of
directors. "If they're not going to be a part of the total experience and
utilize the services that are here, this is not where they should be
living."
Patterson said that neither he nor Roskamp had any part in proposing the
mandatory membership requirement, though he said he supported the idea,
because it ensured that everyone could participate in the club's amenities and
services.
"It's the trust and relationships that set us apart," said
Patterson.
As a protection for those who fear values might drop, an agreement was drafted
that obligated Jacaranda Trace Commercial to repurchase units that sit on the
market for one year at 90 percent of the original purchase price.
Board members called the clause a guarantee against loss, while opponents said
it robbed condo owners of their equity.
"In all the investments I've ever had, I've never had one ... where in 20
years from now, you're able to get 90 percent of your money back," said
board member Bill Burgher. "The developers have done a heck of a job to
ensure that you benefit."
But Dan Lobeck, attorney for the group of nonmembers, called it an obligation
to "steal" back units.
Under the proposed arrangement, management could raise membership dues without
fear of losing memberships, while significantly devaluing the condominiums, he
said.
"If this passes it will make it very difficult for exit owners or their
estates to sell their unit for anything close to what it would be worth,"
Lobeck said. "Who would buy into such a burdensome and one-sided
deal?"
Lobeck said such a change should require approval by 100 percent of residents,
rather than the 70 percent the condominium board is seeking. He accused
Roskamp and Patterson of exerting undue influence over the board, which
consists entirely of club members.
"This is an incredibly bad proposal for all unit owners, not just those
who have chosen to become club members," said Lobeck. "Once the unit
owners become hostage to mandatory club membership, the club has more
incentive to change the terms of membership in a way that benefits the club
and harms the owners."
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