We received this letter today with the request that it be posted on behalf of Carol Anderson Ward, owner of the Murieta Equestrian Center and an owner of Country Club land and the North property being developed.
March 24, 2016
Re: Sale of Country Club
Dear Rancho Murieta Country Club Member:
Although there is a lot of information being distributed about the potential sale of the Country Club, much of the information is misinformation. The Rancho Murieta Country Club (RMCC) Board of Directors acted on or before February 10, 2016 to enter into a deal with Bellagio Road LLC. Much has been said about this entity and its proprietor Bob Husband. Much of the information describes a financially strong and superior golf management company. However, Bellagio Road as of March 22, 2016 is a suspended limited liability company and not authorized to conduct business in California. (See attached printout from the California Secretary of State). As such, any agreement with Bellagio is suspect and currently unenforceable. Clearly, the Board of Directors did not conduct basic due diligence with who it seeks to own and operate the Country Club.
The Board of Directors acted inconsistently with its fiduciary obligations to the membership by putting the cart before the horse when it entered into a transaction first, and then sought membership approval to go forward with the purchase option. Further, the board did not make an honest evaluation of the cost to exercise the option before entering into any deal with Bellagio Road.
Under the terms of the lease option, RMCC is liable for the costs of appraisal and the arbitration if the parties cannot agree on a reasonable purchase price. Despite the RMCC Board knowing that the RMCC property is valued by the County Assessor at $8.4 million and the appraised value of the club is in excess of $8 million, the board is claiming the property to be worth more than $2.3 million (based on the MOU). By starting the process in a clear low ball fashion, the Board has set up RMCC to lose. Bellagio Road is not required to pay in excess of $2.3 million if the arbitration determines the value to be in excess of $2.3 million. If the arbitrators find the value to be close to the value as appraised, RMCC could lose over $100,000 in appraisal fees and not be able to exercise the purchase option.
Individual Golf Member