Tuesday, November 22, 2011

Legal memo to Flat Rock village council

Asheville Attorney Robert Dungan, who represents the Highland Lake, Highland Golf Villas and Statonwoods homeowners, speaks to the Flat Rock Village Council about the proposed soccer complex and public park at Highland Lake Golf Course during a council meeting at the Flat Rock Village Hall.  Patrick Sullivan/Times-News

At the Flat Rock village council meeting on November 10, Robert Dungan, the attorney representing the three homeowners associations, presented an outline of the opposition to the purchase of Highland Lake Golf Course by Henderson County for the proposed soccer complex (all highlighting and links are my emphasis):
MEMORANDUM

To: Village of Flat Rock Council

From: Robert E. Dungan as attorney for Highland Lake Residential Homeowners Association, Highland Golf Villas Homeowners Association and Statonwoods Homeowners Association (“Associations”)

Re: Opposition to Purchase of Highland Lake Golf Course by Henderson County for Proposed Soccer Complex

Date: November 10, 2011

Introduction

Our clients represent the interests of 263 homes located adjacent to or in the immediate vicinity of the Highland Lake Golf property. These homes have, based on average per home valuation, a collective tax valuation of approximately $70 million (Exhibit 1). These homeowners and their families would be the most affected by the proposed soccer complex at Highland Lake, yet they have never been consulted by Henderson County or by the seller Course Doctors, Inc., essentially those with the most to lose have been the last to find out and the most ignored. The Council of the Village of Flat Rock along with its Board of Adjustment needs now to listen to these owners, to enforce the Village of Flat Rock Land Development Ordinance (“VFRLDO”) and put an end to this illogical and ill-planned proposal that has every indication of being a spendthrift boondoggle.

Background

On August 26, 2011, apparently in closed session, the Henderson County Board of Commissioners (“Commissioners”) entered into an option agreement (Exhibit 3) with Course Doctors, Inc., (“Course Doctors”) for the purchase of the Highland Lake Golf Course, about 67 acres of land (“Golf Course”), for a purchase price of $1.15 million.

With no other notice, and particularly to these homeowners, the Commissioners at a morning meeting on October 19, 2011, voted to “exercise the option”. The published agenda for the meeting (Exhibit 2) shows only under Discussion the following: Potential County Soccer Complex: Presentation from Henderson County Soccer Association (“HCSA”). No homeowners were present to voice their opinions. The HCSA’s handout is included as Exhibit 5.

A review of the option agreement and the purchase contract (Exhibit 4) reveals that the County is to make a “donation” of $100,000 for the soccer complex in addition to the purchase price. It also states that the County will be a partner in the undertaking. While the HCSA is supposed to contract with the seller for the construction of the soccer complex, there apparently is no proposed contract, only a cost estimate of about $400,000. HCSA’s presentation indicates that the County will split all tournament revenues with HCSA on a 50-50 basis. No estimates were made for ongoing maintenance.

The County further prepared a draft business plan for the soccer complex (“Business Plan”) (Exibit 6) which shows future amenities with cost estimates of about $650,000.00 This includes some $230,000.00 for lighting. No source of funding is given for “future amenities”.

Position of the Associations

In the first place, the Associations take the position that this proposed project is illogical for this site. It certainly does not conform to the characteristics of historic Flat Rock. It is an expensive project with many hidden costs and problems, including unanswered or unconsidered problems with traffic and potential road-widening requirements. From an economic point of view, it appears that only Course Doctors will win. It will sell a dubious and most likely underperforming asset, and it will get lucrative construction contracts that appear “locked up”.

Second and more importantly for the Council and Board of Adjustments’ responsibilities, this proposed soccer complex would, to begin with, require an amendment to the VFRLDO. Specifically, the soccer complex would have to satisfy the definition of Park under the VFRLDO. “The term ‘park’ shall not include zoos, recreational vehicle parks, amusement parks, vehicular racing facilities or any for profit recreational facility or use” (emphasis added). Section 501. Throughout both HCSA’s information and the County’s Business Plan, there are explicit references to “revenue sharing”, “profit sharing”, and “50-50 split” from tournament profits.

Even if, the VFRLDO is amended, the soccer complex would have to satisfy the requirements for a conditional use permit. This it will not be able to do for the following reasons:

1. Section 1602(C) – The use will not substantially injure the value of adjoining property. But the soccer complex will. A preliminary inquiry with an appraiser indicated a negative impact on property values of between 12% and 20%, particularly for Highland Golf Villas and Statonwoods. In other words, a collective drop in property values of between $8.4 million and $14 million.

2. Section 1602(D) – The location and character of the use will be in harmony with the area. The soccer complex will not be in harmony with these adjoining neighborhoods. The neighborhoods will suffer from traffic congestion, noise, not to mention the night illumination required for the soccer fields.

3. Section 1602(F)
(F)(1) The soccer complex will fail to satisfy traffic flow and control problems.

(F)(2) Use of the soccer complex, particularly during the much-touted tournament play, will fail on the basis of aesthetics, including noise, glare and excess illumination from lights, and trash.

(F)(6) The soccer complex will not meet acceptable standards for signs and proposed exterior lighting and is not aesthetically compatible with properties in the district.

Conclusion

The Golf Course is the wrong location for a soccer complex. HCSA has already entered into a lease with the Town of Fletcher for a tract of land that is much more compatible, cheaper to develop and could be a true, dedicated soccer complex in a location that will disturb no one.

The project is expensive, not only because of acquisition costs, but also unknown costs and no provisions for maintenance. No plan has been made should financial backing of HCSA fail to complete the complex. Would the County then fund it or would the Village of Flat Rock be left with an eyesore? And even if completed, will HCSA be able to maintain the soccer complex.

The Village Council should inform the County that this soccer complex as proposed will never meet the requirements of the Land Development Ordinance. I urge you to send this message to the Commissioners loudly and definitively.

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