An Anthem Opinions Editorial

"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%)

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...

... 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" !

Why ? 

Because the financial integrity of our association revolves around opening your eyes and  abandoning the...

"50 Shades of Grey"

Dick Arendt

Anthem Opinions Administration