Your Support Makes All The Difference

We have been overwhelmed with so many positive responses from Morgan Creek residents who are putting their own biases and partisan politics aside for the betterment of the community as a whole. It is heartening to know that there far more residents who care about preserving our beautiful Morgan Creek community than arguing about who’s the best person to do it. I look forward to seeing many of you this Thursday evening for a conversation with Jack Duran, our current Placer County supervisor, about your concerns for the future of our community. If you haven’t already done so, please RSVP to James Shelby at jshelby69@comcast.net.

Help Us Stop Golf Course Redevelopment

The Morgan Creek Homeowners Coalition (MCHC) has arranged a fund raising event this Thursday at a Morgan Creek resident’s home. We know that the golf course owner has meet with the Placer County planning department regarding turning the golf course into a housing development. We need to stop this effort in its tracks!

We need to show our current Supervisor, Mr. Duran that Morgan Creek homeowners are prepared to fight and we, as voters, can count on his support if it comes to that. The Supervisor position is a non-party affiliated office. This is not a political plea, or a partisan issue, this affects all Morgan Creek residents and we have to act now.

Please join us on Thursday May 31st from 6 pm to 8 pm at the home of Robyn Dahlgren & Michael Cappelluti, 8873 Creekstone Circle for wine, appetizers, and conversation with Jack Duran.

Our donations and our votes are as important as our voices. Please RSVP to James Shelby at jshelby69@comcast.net by Wednesday, May 30th. If you can’t attend but would still like to donate, please drop a check by Robyn’s before the event. Your support is critical to maintaining the lifestyle we enjoy here at Morgan Creek.

 

Government and Civics 101, a Lesson

A recent post concerning a fund raiser meeting for Jack Duran generated lots of strong comments, pro and con. That’s a good thing. It was also a reality check.

We have a republic form of government, not a town hall style democracy. We don’t get to vote directly for issues. We elect representatives to do that for us. Usually it works pretty well: Case in point, Morgan Creek land use if the golf course should close. So what does that mean? Like it or not we need to rely on our elected representatives to make the ultimate decision. In this case, and at least until 2019, that’s Jack Duran and our issue is now.

So how do we insure Jack is on our side, only 3 ways; appeal to logic, votes, and money. Many of you seem to view politics as an ugly partisan business. Perhaps it is. But for now, Mr Duran is the incumbent and we need to support him to get what we want. Realize it, or not, in our small district we control over 1,000 votes. That is significant. We are also a relatively affluent community. To get his attention we need to address all three. That is the intent of announcing the fund raiser. We hope you’ll come and make your voice heard. This blog provides the information. In the end it’s your decision.

But what about His opponent, Bonnie Gore, in the upcoming election? If someone wanted to sponsor a fund raiser for her, we’d be happy to announce it on the blog. The point is, to preserve our community we must be political. Like it or not, that’s the way the system works.

Comments welcome.

Please Consider This

A campaign fund raiser has been arranged for our District 1 County Supervisor, Jack Duran.  To improve our chances  for limiting development should our golf course close, we will need political support from our elected officials.  This is an opportunity to make  your voice heard.  The fund raiser is Thursday May 31st from 6 pm to 8 pm at the home of Robyn Dahlgren & Michael Cappelluti, 8873 Creekstone Circle for wine, appetizers, and conversation with Jack Duran.

If you do decide to come, your  donations and your votes are as important as your voices.   This is a fund raising event, so please come prepared to donate.  Please make checks payable to “Friends of Jack Duran 2018” and include tax I.D. number 271281224 on your check.

Please RSVP to James Shelby at jshelby69@comcast.net by Wednesday, May 30th. If you can’t attend but would still like to donate, please drop a check by Robyn’s before the event.

Golf Market Conditions Report, the Rest of the Story

By now you should have received from the HOA a copy of the report submitted by the Golf Course Owners to the Board titled “Northern California Golf Industry Market Conditions”.  We believe the report was commissioned by the Owners to support their request for a home owners subsidy.  It speaks in dire terms about what might happen to property values if the golf course were to close.  Its Summary concludes that if support is not forthcoming redevelopment is the best option.  It is clearly biased in that direction.  It offers no indication how difficult and all consuming of time and money it would be to even attempt to convert our ecosystem to additional residential development.  More on this in detail on a blog to follow.

We have analyzed the report in some detail and found it misleading and short on facts.  We have attached an annotated PDF version which highlights these areas,  We encourage you to look at the annotated version and then decide.  Click on the following link to see the Report,  Golf Market Conditions Report Annotated.

The following are some comments highlighting the difficulties we found with accepting the original report at face value.

  1. Since the Owners paid for it, as part of their approach to the community, its objectivity is suspect from the start.
  2. The summary of findings says categorically that “clearly, an abandoned golf course has the most extreme impact” on home values. Then, on p.20, it states that redevelopment with residences would have the most extreme impact on values at MC (allegedly because MCGC is so wonderful, but with no research data to support this). The summary makes no mention of this significant “finding.” The report contradicts itself, in order to claim that the Owners alternative to a subsidy will have the most impact on our values.
  3. The report also says MC is especially vulnerable to a closure because of its small size, but its size is between Rocklin and Rancho Mirage, two of the comparable examples.
  4. The study predicts combined increases in labor and water costs could be $60-90K per year, or $240-360K by the fourth year of their proposed 10-year plan. These increases will consume the entire $300K per year they want from us by the fourth year. Thus, if they are losing money now, they will again be losing from the fourth year on. Their proposed plan was a plan for continued failure, at our expense, according to his own study. That’s how much faith we can put in their success plans and proposals that they may want us to buy into.
  5. Exhibit 6, estimating property value impacts from course closures, and Exhibit A-1, historical house values during the relevant years, don’t agree. The historical values from A-1 show a 14.8% increase trend in Rocklin (perhaps the most relevant example) and a 24.5% increase in Rancho Mirage (another California community). However, Exhibit 6 uses an increase of 24.4% in Rocklin to calculate “expected value” in 2016 and an expected increase of 16% in Rancho Mirage. Thus, the “expected” value for Rocklin in Exhibit 6 exaggerates the supposed decreases in Rocklin values, to make the closure impact in MC look scarier. For some unstated reason, the study did not apply its own historical home sales information to the “expected” values and losses in at least these two relevant communities.
  6. While we agree that golf is a mature industry and is experiencing consolidation, the decline is not cataclysmic. Well managed golf courses are and will continue to survive and thrive.
  7. The bottom line is that their data shows an actual increase in property sales values post closure at Rocklin, not a substantial decrease.

 

Golf Course Owner Withdraws Proposal Citing Lack of Support

After the overwhelming turnout at our last HOA meeting where residents were very vocal about the need to examine the golf course financials before supporting a subsidy, course owner Charlie Gibson, withdrew his proposal to the HOA.   Mr. Gibson could still be preparing to sell the golf course, take other action, or simply wait until his house is sold before he makes his next move.  In the meantime, we will continue to monitor the situation and post any new information or calls for action.

HOA Board Meeting Sets Record Attendance

Over 150 people showed up at last Tuesday’s Morgan Creek HOA Board meeting. Foremost in their minds was the future of the golf course.  John Cary, Board President opened the meeting with a brief summary of the status of a proposal the Board was considering, a request from the golf course owners to have the homeowners subsidize the course something over $3,000,000 over ten years which breaks down to a little over $50 per household per month.  He said the board in conjunction with its attorneys was preparing the proposal for submission to the community for a vote.  The underlying reason cited by the owners was financial difficulties.  Without the subsidy the golf course suggested it may close.  No timetable has been set for the vote, but the golf course owners have indicated it must be before the end of July.

In open forum, there were a number of concerns expressed by individual homeowners.  The recurring theme was that, to date, the owners have refused to provide financials that people believed necessary to make an informed decision.   During the forum a straw vote was taken whether anyone would vote for any subsidy without full financial transparency.  No one raised their hand.

One developer got up and spoke, based on his personal experience, about the extreme difficulty of developing the course for residential use should it close.  Among issues cited were environmental and open space restrictions.  Also mentioned was the fact that there was a $2,000,000 business loan with the golf course as collateral.

An announcement was made concerning the starting of this blog by a group of concerned owners.  It was stated that the group, Morgan Creek Homeowners Coalition, and this blog were set up to communicate concerns and activities to all homeowners. The stated goal is to act as one voice in opposition to any actions taken to diminish home values through course closure if a better way can be found through compromise and exploring other options.  Everyone present was urged to sign up for the blog to keep informed and express their views.

A couple of comments were made that if there is a subsidy that the golf course provide quid pro quo in the form of special perks such as dining vouchers or free golf to homeowners.  This would make a subsidy a bit more palatable.

Owners on the Pinehurst side complained that the golf course is not doing their part to maintain the grounds.  They cited the continued existence of unsightly weeds despite pleas to remedy the problem.

A question was asked as to whether the existence of the golf course’s proposal needed to be disclosed by homeowners selling their homes in the community.  Clearly a concern of all homeowners, one broker in the audience stated he thought it did.

Several comments were made urging the Board to curtail any unnecessary legal fees for work generated on the golf course funding proposal until financial disclosure is made showing a real need for assistance.  Someone suggested a study be performed to determine potential home equity losses that could be incurred.  This seems to be premature and costly to the HOA, especially since it would be done under threat with no proof of need.

Early in the meeting Sharon Combs, Board member and Chairman of the Gates Committee, announced that after a multi-year effort the gates were in and operating smoothly.  A round of applause thanked them for their efforts.

Call to Action – HOA Board Meeting Tuesday, May 15th

Most of homeowners don’t want the Morgan Creek golf course shut down and sold to developers. If you care about your home values and the Morgan Creek lifestyle attend the HOA Board Meeting Tuesday, May 15th  @ 6:30 pm.

We are also looking for people with special skills, like attorneys, lobbyists, environmentalists, public relations/media people, journalists, etc. who are willing to lend their expertise to our group.

If the majority of homeowners sit back and do nothing then it’s possible the golf course will close. Show your support by attending the meeting and sign up for regular updates on this blog.

No Transparency on Golf Course Financials so Far

Golf course owner, Charlie Gibson, continues to approach individual homeowners and our Board to subsidize the golf course for 10 years to keep it operational.  In one-on-one discussions Mr. Gibson asserts he will “not open his books” to the HOA for audit, appraisal or valuation. This lack of financial transparency poses a dilemma for both individual homeowners and the HOA. Without conducting financial due diligence, how can we make an informed decision whether this subsidy is a good investment for our community or simply lining the pockets of the golf course owners?   Without financial information (salaries, maintenance, utilities, etc.), audited or reviewed by a licensed third party, proper stewardship of our money cannot be assured.

If you are interested in understanding more about golf course economics and what type of information we’d require to make a decision, please go to golfappraisers.org. If you are interested in the salaries (expenses) paid to golf course managers, staff and maintenance personnel go to average golf course salary or glassdoor.com-average golf course salaries

 

Our Golf Course Could be Closing-Update

The golf course owners have presented our HOA board with a proposal to have all homeowners subsidize the golf course by adding $30 or more to HOA monthly fees. We understand the amount could be as much as $50 now.  It is a moving target.   They claim the course is losing money and without this help it may have to close.  However, as of now they refuse to open their books.

Our Board is preparing to bring this proposal to the homeowners in a public meeting for comments.  This was to be in early May but is postponed indefinitely.   A  vote is planned shortly thereafter.  With no subsidy the course owners have suggested closure, possible shutting down of the back nine, or attempting to open the course lands for development of more residential housing

These issues are critical to protecting our homeowner values.  You owe it to yourselves and the community to get informed and become active.  Together we can make a difference!  Regular bi-monthly Board and Homeowners meeting is May 15.  Be there.

IMG_Rocklin_Golf_Club_1_7_1_AVB1UUGN_L305305261
Sunset Whitney Course after Closure