September 16, 2024
Dear Eaglemont Restoration Supporters:
Clubhouse activities
If you live within the Eaglemont HOA you likely know that the Eaglemont HOA Newsletter recently went out with some information about what Romano Capital, the owner of the Eaglemont course and clubhouse, has been doing to further protect the clubhouse and property. As not everyone who is supporting the restoration lives within the HOA we wanted to make sure everyone knows about this.
Darlene Andris, HOA president, has been in touch with Eric Christensen, Romano’s COO, who informed her of what the company has done and is doing. The newsletter reported:
I know that we are all concerned and curious about the Golf Course and the Club house. I want to update everyone on the information provided to me from the Courses current
Owners, Romano Capital. Several Homeowners have contacted me regarding activities at
the Clubhouse.
The following restorations have been completed or are in process:
• Restoration of the fire alarms and sprinklers
• Restore Electricity (completed)
• Water/plumbing has been restored (completed)
• The building now has an alarm with monitoring
• The exterior/grounds have cameras with active monitoring (completed)
• Cleaning out of all the trash from the clubhouse
• Roof Repairs
• Elevator Repairs
• Install concrete blocks at all the parking lot entry points to stop vehicle access and
unruly activity
We caution that these activities, while positive, likely do not mean that Romano has begun to restore the clubhouse or golf course. We wish that was happening, but these appear to be much more related to measures an insurance carrier would require of an owner to minimize loss.
Some have noted that Romano has paid the first half of 2024 taxes, with the second half due next month. But we believe they have not paid the 2023 taxes which, with penalties and interest, amount to about $87,000. Also they have not paid the City sewer and garbage liens amounting to $15,437.
Negotiations
Regarding a possible sale, Stephen “Bulldog” Frostick tells us that discussions with Romano continue. A verbal offer that seemed to us more than reasonable has been made, but has not been accepted. We also understand that while the Lee family, owner of the surrounding development property, has agreed to a 90 day due diligence exclusive period with Bulldog’s group, Romano has rejected that request as well.
HOA and Restoration Committee
Given the long delays and lack of apparent progress on the purchase, we requested a meeting with Eric Christensen to discuss the status and explore other options should a purchase by Bulldog’s group prove impossible. We are pleased that Eric is communicating with Darlene Andris. The Eaglemont Restoration Committee began as an ad hoc committee of the HOA, but we are not currently representing the HOA nor directly affiliated. As individual homeowners and community members we had the standing to pursue the legal action while the HOA did not. The Eaglemont Restoration Committee includes about 170 individuals and families who have contributed to the legal fund or who have indicated support for the restoration effort and requested to be added to our email list. While most live within the HOA, a considerable number do not.
Questions have been asked repeatedly about the HOA’s interest in purchasing the course or providing an assessment of the members to support its restoration and operation. It is our understanding that this is not possible. There are limits on what the HOA can spend its capital reserve funds on and any assessment for purposes such as this would require a positive response from a supermajority of the 270 or so members. We consider this highly unlikely.
Pursuing Options
If we are able to meet with Eric Christensen, Kess and Korban Romano, we will make clear our strong interest in working cooperatively with them to see the course and clubhouse restored. We believe working together will get us to a win-win much more positively and productively than an adversarial relationship. Should the negotiations between Bulldog’s group and Romano continue on without progress or if they end without any agreement, we believe there are five options available for us to pursue:
- Partnering with Romano – if Romano is unable to sell it, we believe they are obligated to restore it. Allowing it to become a cow pasture or return to natural conditions constitutes a change of use (see item 4 below). If they attempt to develop it, it definitely would trigger the Court’s decision to force restoration. However, if they choose to restore it there are a number of ways we could work constructively with them to make it feasible and profitable. The potential for selling developable property makes this even more feasible.
- Parks and Recreation District – this was recommended to us by the City. It involves forming a district that would enable us to purchase the property at appraised value. Homestead in Lynden is in a similar situation and condition, perhaps better than Eaglemont, but was appraised as part of the legal action at $1.3 million. This would serve as a realistic comparable. It is far from the $3.6 that Romano has said they want for the property. Such a district could potentially avoid requiring any funds from the district residents because of the strong potential for sale of developable property that is currently part of the property owned by Romano.
- Local investors – because of the potential for sale of developable land it may be possible to find local investors interested in purchasing and restoring the course and then either operating it with a golf course operating company or sell to a qualified owner. Our analysis shows an opportunity for a reasonable or even strong return on investment.
- Injunction and/or Receiver – We most certainly don’t want to go back to court, but numerous conversations have made it clear how unfortunate we were in the judge who decided our case. The repeated delays that were granted, the incorrect decision to eliminate two petitioners, the conclusion that it still looked like a golf course based on photos over seven months old –– all these highly questionable or obviously mistaken decisions resulted in a course and clubhouse that is deteriorating daily. However, the decision that the homeowners did have an equitable servitude that could be applied when the course use was being or attempted to be changed means that we have a very strong basis to require Romano to restore it, or have a receiver appointed if it proves they are unable to.
- Property damages litigation – as we have suggested before, it’s clear that homeowners on and near the course have suffered economic harm due to the actions of Romano. These actions have resulted in much diminished value of the property that may make it difficult to sell as a golf course. The $30 to $40 million in estimated property value impact would likely attract the interest of experienced litigators.
Of course, we want to avoid any more litigation. Going to court is never a sure thing, for either party. However, we remain as committed as ever to seeing the Eaglemont course and clubhouse restored and serving our entire community.
Adding to our leadership group
The four petitioners have served as the primary leaders of the Restoration Committee. We would like to expand this leadership group and include others from the Eaglemont community who share our strong interest in restoration, as well as some community leaders outside of Eaglemont who we know are also committed to this course and property. We hope to convene a meeting soon of those interested in taking an active role in this effort. If anyone on this list is interested, please email Kent and Gerald and explain your interest and what specifically you can bring to this effort that will help us accomplish our goal.
Email addresses:
Kent Haberly
kbgv.haberly@gmail.com
Gerald Baron
Gerald.baraon@agincourt.us
Eaglemont Restoration Committee
Kent & Gretchen Haberly
Gerald & Lynne Baron
Jerry & Peggy Anderson
Karl & Louise Kirchgasler
