"There Ain't No
Such Thing as a Free Lunch"
...for Most of
Us...
Remember a number of months ago when someone was passing out petitions and telling people a proposed Mini-Golf course was FREE...and got 700+ signatures from people who actually believed that was true?
He's at it again...only trying to
"sell" it another way...dropping the "free" part...but keeping the 700+
petitions a part of the "sale".
After all, some way has to be figured
out to make a rotten egg smell good ...it's worked for years, so why stop
now?
When the full story came out that
included the FULL COSTS associated with that
project, a number of those petition signers came to a conclusion that an old
adage was still accurate....
"There' Ain't No
Such Thing as a Free Lunch"
Well now, I'm here to tell you...that
saying is almost 100% true...unless of course it
comes from those who consistently give you the same old "half story"...
...the one that never seems to tell
everything there is to tell !
But...we'll save
that mini-golf lunacy for another day....when it's
115 degrees in the shade...
...and people say "Gee, let's play mini-golf"
(prior to their
trip in the ambulance and/or morgue).
Instead, today we'd like to "give it to you straight" about something else
!
We have a new saying we believe is more
appropriate when it comes to what you might have heard from those who will do
anything to paint a rosy picture about the financial integrity of our
association as it pertains to our "fabulous, gotta have it, bargain" restaurant...the one few
patronize.
"50 Shades of
Grey"
I didn't know that "rent" was "arbitrary", did
you?
And why is it
so?...
....because a current (retiring) board
director said so, that's why !
Well, you can "take that to the bank",
right?
Wrong !
Some time ago this particular
individual made a statement saying not to have the eatery
would cost us more than subsidizing it.
Yes...he actually said that
!
And of course, because that individual
refused to answer questions due to a lack of knowledge when it comes to Nevada
property taxation...
...he made that statement...REFUSING TO
ALLOW OTHERS MORE KNOWLEDGEABLE to tell...
...THE FULL
STORY.
Here's how the tax
situation REALLY WORKS.
Nevada HOA law states that HOAs are
exempt from property taxation.
...and...that seems to be the argument
that the retiring board member was trying to make when he defended his
continuously voting AGAIN and AGAIN and AGAIN to pump YOUR MONEY into a place
that is now "so
successful"...
...that it needs
even MORE OF YOUR MONEY to operate.
Here's the "other half of the
story".
That property tax
exemption only applies to AMENITIES WE, THE
ASSOCIATION, OWN....not to anyone the
association rents portions of our property.....i.e., Cafe
V.
When a "for
profit" firm rents the property, THAT PORTION OF THE
SPACE IS SUBJECT to Nevada property
taxation.
As a result, when
the original rental agreement was drafted, we believe that fact was taken into
account in determining a "break even point" from which it might be determined
as to financial feasibility.
It was not
the intent of the leadership to MAKE MONEY....just keep an even keel in order
that it would be self-sufficient.
...and that was perfectly
acceptable to anyone in Sun City Anthem !
Our community wanted a
restaurant....not one from which we would
profit....but one in which we would
enjoy.
The one
restriction...."the people" (81% of them) said..."NO" TO SUBSIDIZING THEM....other than buying the food and
drinks they offered.
Once that objective was established,
knowing that the space occupied by the "for profit
restaurant" would not be exempt from property
taxation...
.... an
approximate amount of $3,000 per month in property
taxes...was factored into
the initial rent formula.
The other $1,000 was an "arbitrary"
figure that, in our estimation, would be used to pay for damages and new
equipment that WE AGREED to PAY FOR in the lease
agreement.
(Yes...we actually agreed to pay for
their equipment and repairs in the lease agreement !...recently purchasing a new
steam table for the "crowds" who eat there each
day.)
In addition, we
also agreed to PAY THE TAXES up front on their behalf, and that the
rental amount received by our association would offset that outlay on our
part.
We also agreed to
"front" the utility bills, trusting that they would pay that portion
attributable to the restaurant operations.
Everything was set in place....we were
to have a restaurant !!!!
...and this board was so
confident...that it took it upon ITSELF to spend an
additional $4,000 OF ASSOCIATION FUNDS....YOUR
MONEY... to feed a "select" group of Sun City Anthem residents too
!
(Yes, YOU
PAID to have an INDEPENDENT FOR PROFIT restaurant promote its
goodies..when even the most basic rule of advertising would have thought the
opposite would have occurred.)
(we never got
invited)
We take it that none of the board members or those they
selectively chose or those who jumped at the
opportunity to receive the freebie "din-din" read the survey part that
stated 81% of the peons (ah, people), didn't think that association money should be paid at all to
subsidize the place in any way.
(They must have been the remaining 19%)
(They must have been the remaining 19%)
That didn't seem to add-up to us, so we
at Anthem Opinions, pleaded with each individual and
club who got the free dinner to PAY BACK the
association, believing it was the "morally right
thing to do"; and that not doing so,
discriminated against any individual dues paying property owner who was
not invited to attend the grand opening.
The response we got: NONE.
Not a single person came forth to
reimburse the association. How impressive, huh ?
They felt "entitled" to SPEND YOUR MONEY ON
THEMSELVES.
So....there was a "free lunch" for some, but none felt it morally wrong to
ignore the 81% dictum, did
they?
It was obvious...it was THE JOB OF OTHERS TO PAY...FOR
THEM....
...a "solid" start in building a "warm
and fuzzy" feeling...
...a feeling that resonates today
with a number of people...primarily by those who look at it as an "amenity".
Sound familiar as to the board members
attitude toward subsidy after subsidy... again and again
?
Despite that initial insult to the
masses, all went well for a very short time period.....the "curiosity factor"
period....until a few months later....the same problems we encountered in our
previous restaurant ventures.....came back to haunt us once again
!
Simply
stated....
THEY DIDN'T PAY US
BACK
Now...keep in mind WE AGREED TO FRONT THE TAXES AND UTILITIES, so our
association continued to pay YOUR MONEY...because
the bills were coming in our
name.
"What's this?", asked certain members
of our community who believed financial integrity had something to do with KEEPING THE DEAL THE RENTER AGREED TO
...
...the same ones who have been branded
as "troublemakers" or "malcontents" ...
...whose lives are painted by others who believe in "entitlement" after
"entitlement"...as long as others pay for
them.
"Oh-Oh",
said the leadership, "How do we keep this place here while
they're not paying their bills?"
"Simple",
said the board members..."we'll reduce their commitment in
order to make it look like they are !"
...and...
"we'll even give
them a "sweetheart" below prime rate loan to pay the utilities they used.. that
we fronted and owe us as well !"
Well now, that "brilliant" train of economic thought prevailed; and as a result, the rent went from $4,000 to $2,000 to the current $1,000...
Well now, that "brilliant" train of economic thought prevailed; and as a result, the rent went from $4,000 to $2,000 to the current $1,000...
... for the remainder of the lease
agreement...3 more years !
And here's another goodie that is
probably in the lease that needs clarification.....
The original lease
agreement states THEY CAN RENEW IT AT THE SAME RATE !
Our question...WHICH RATE...
...The $4,000 original figure, or the
"bargain basement" $1,000 currently being paid?
So, here's the bottom line.
Each and every
month our association must "front" the
property tax assessment of what is currently approximately $3,000..a sum that
can, and will in all probability increase due to our
property values increasing as they have the past few years....with one
difference...
Under Nevada property tax law,
RESIDENTIAL property has a cap of a maximum 3% each year....COMMERCIAL property as in "Cafe V" has a cap of 10% increase each year.
And who was and is a firm
believer in this line of economic thought of "entitlement" after "entitlement"?
INCUMBENT BOARD MEMBER, BELLA MEESE WHO IS RUNNING FOR REELECTION...AND... WHO HAS VOTED TO APPROVE THIS BEHAVIOR 100% OF THE TIME !
So..perhaps those who really believe
there is that free lunch out there, might come clean with the FULL STORY in
order to determine if "rent" is "arbitrary" !
Because the financial integrity of our
association revolves around opening your eyes and abandoning
the...
"50 Shades of
Grey"
Dick
Arendt
Anthem Opinions
Administration
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