Subject:
Title
The Savannahs at Sykes Creek Homeowners’ Association, Inc. Requests Authorization to Convey The Savannahs Golf Course to a Third Party
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Fiscal Impact:
None.
Dept/Office:
County Attorney’s Office
Requested Action:
Recommendation
The Savannahs at Sykes Creek Homeowners’ Association, Inc. (the “HOA”) requests that the Board approve and authorize the Chairman to sign an Amendment to the Agreement between Brevard County and the HOA allowing the HOA to convey the Savannahs Golf Course to a third party.
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Summary Explanation and Background:
Prior to 2018, the County operated and maintained the Savannahs Golf Course as a public course. On May 22, 2018, the County and the HOA entered into an Agreement by which the County abandoned the Savannahs Golf Course. The HOA accepted title to the Savannahs Golf Course and agreed to continue to operate and maintain it as a public golf course for a minimum of ten years from the date of the Agreement (i.e., until May 22, 2028).
The Agreement can be interpreted as preventing the HOA from conveying the Savannahs Golf Course to a third party unless the HOA’s continued operation and maintenance of the course will cause the HOA to become insolvent.
The HOA desires to convey the Savannahs Golf Course to a third-party golf course operator. According to the HOA’s attorney, in order to ensure the sale was reflective of the will of the membership, a membership meeting was held to allow the owners to vote on whether to approve the sale of the golf course. The meeting was held on July 2 after 14 days’ notice to the entire membership. Out of 286 total homes in the community, 185 submitted a vote. Of the 185 votes cast, 158 voted to approve the sale of the golf course (85.4% approval). Even when factoring in the homes that did not cast a vote at all, the 158 approval votes still constitutes 55% of the entire community.
The HOA requests that the Board approve an Amendment to the Agreement which would remove any ambiguity regarding the HOA’s authority to convey the golf course. The Amendment explicitly authorizes a sale and would require subsequent owners of the Savannahs Golf Course to assume the HOA’s obligations under the Agreement. The Amendment would require a written assignment to be recorded with any deed to document the subsequent owner’s assumption of the HOA’s obligations under the Agreement.
According to the attached correspondence from the HOA Board’s treasurer, the HOA intends to convey the Savannahs Golf Course to a golf course operator that will professionally manage and maintain the course through 2040 (twelve years longer than the existing requirement in the Agreement).
Clerk to the Board Instructions:
Return a copy of the Clerk’s Memorandum and, if approved, the executed Amendment to Agreement, to the County Attorney’s Office.