Questions and Answers
Arising from the Straw
Poll
Q: Which lots have been selected by the process outlined in the Straw Poll?
A:
the process outlined in the email led the Finance Committee (FC) to currently
consider the following lots:
block/lot
yearly tax
where this lot is
------------
--------------
-----------------------
37/2
�
$5015
� by Collier
44/12
$4212
near Kern
40/7.02
$4190
behind Corr
36/27
$2396
ballfield 1
45/7
$2174
ballfield 2
43/6
$2015
near McGoldrick
This
list changes the list presented at the Inform Meeting - in particular the lot
near Heiden is replaced with the lot near McGoldrick. The next two "most
valuable" lots, as recommended by MKL real estate professionals were:
43/16 (next to
Q: Is there anything
special about the ballfield lots?
A:
These lots have been used to store dredge spoils. With the help of Don Kuhn,
the FC investigated the cost to do dredging if these lots were not available to
hold the spoils. The estimate is it would cost about 2.5 times if the
spoils were trucked offsite compared to using the ballfields as a spoils
repository. Thus the ballfields' value to MKL is more than just their
real estate value. A memo on the topic is also available on the website.
Q: At the Inform
meeting it was suggested that the lot near Heiden wouldn�t percolate. Doesn�t
that make is less valuable?
A:� It is unclear which of the lots owned by
Lakeshore, including the lot near Heiden, will currently perc. The only way to be sure is to pay the cost of
running percolation tests. Some of the lots believed to be valuable today
may in fact not perc tomorrow. More importantly it is unclear if any of
these lots will perc at the time they might be sold!
Q: Why did the FC
select the lots it did?
A:
The FC selected a process to pick the lots, and the ones shown above were the
result. While the FC believes it is wise to put some of the lots into a
conservation easement, it has no agenda in selecting particular lots. The FC's
main concern is to cut our yearly tax bill in half, saving the community about
$19,000/yr and using the funds to do large scale maintenance. The FC thought it
natural to keep those lots deemed "most valuable", but realized this
might be a difficult task. The FCs initial attempt just used the Harding
tax rolls. Later this was subject to a professional review as described in
John's memo. If you disagree with
this process (or don't think the lots it has yielded are "optimal") please suggest another selection
method. That was the purpose of the second part of question 4 on the
survey. Remember that we are changing the status of some lots, and leaving
others alone. Those left alone still cannot be sold without a 2/3 community
vote, in the FC's opinion a remote scenario.
Q: Can a lot be put
into a conservation easement be taken out of conservation?
A:
When the FC first investigated this matter it was initially encouraged that
conservation easements might be reversible. Of course this would have made lot
selection easy. Pick any lots, because their easement could be undone. But
alas, further research on the topic revealed that it would probably be quite
difficult to reverse a easement. There's a Murray
memo on this topic too on the website. The bottom line is that we should
consider conservation easements permanent, and thus choose wisely now.
Q:
Borrowing costs are at an all time low - best residential and commercial rates
perhaps in 50 years. Assuming long term borrowing were possible at these low
rates, why don�t we borrow to fund the upcoming projects?
A:
Regarding borrowing, while rates are low now, we don't need the money now. We
need it over the next 10 (and 20) years. Who knows what the rates will be, or
under what conditions institutions would be willing to lend to us. Reserving
keeps the process in our own control. The FC isn't saying there's no place for
borrowing for MKL projects, but for well known cyclic maintenance projects
Reserving is the better course. And it�s not just our opinion. Reserving is a
standard for Homeowner's Associations Maintenance Projects. If you like we can
point you to some references on the subject.