Proposed Agreement Between
Hidden Springs Resort & Rialto Capital
As most you know, the original developer of Hidden Springs Resort, Richard Fraser, went bankrupt several years ago. When he did, Rialto Capital foreclosed and took over ownership of most of the properties and land that were still in Fraser's name. Rialto took possession of several cabins, several “lots” where cabins were not yet built, the club house and a considerable number of acres of undeveloped property, including 44.87 acres that Fraser had annexed into Hidden Springs that is east of the upper part of Bears Den Way (the property shown in yellow on the diagram below) These 44.87 acres are very remote from the rest of our resort and basically “on the other side of the mountain.” It is also east of property owned by Kimberly Partners (shown in blue). Rialto also owns 56.29 acres of undeveloped land to the south (shown in green). The small squares you see in the green area are not actual cabins, they are just lots that were proposed. All of these properties are part of Hidden Springs Resort. Further, Rialto owns a considerable number of “lots” throughout our Resort in the area shown in white.
At this time, Rialto has sold all of its cabins to individuals. They still have possession of the club house, which they have on the market. They also still own much of the undeveloped land and lots. The issue for them is that the undeveloped land and lots cannot be built upon, so it cannot be sold to individuals or developers wanting to build.
Over the last few years, your Board of Directors has sought ways to work with Rialto to try and get possession of as much of the undeveloped property as possible. The intent would be to convert it to “green space” and possibly develop hiking trails and other appropriate recreational opportunities for our Resort. We have contacted the county concerning the “green space” idea, and they are very receptive to it.
Rialto now has a buyer who owns a cabin outside of (which is also not in Hidden Springs), but adjacent to, the yellow property shown above. That buyer would like to purchase the 44.87 acres to have as a buffer to the back side of his cabin. The buyer is requesting that the 44.87 acres be removed from Hidden Springs Resort. When Rialto approached the Board about this possibility, we began serious negotiations with them. Here is an agreement that has been reached, but must have approval from at least 60% of the owners. Note: There is no money being exchanged in this Agreement.
Here is what Rialto Capital gets:
Here is what Hidden Springs Resort gets:
Your Board feels that this is a very good opportunity for our Resort. It will give our Resort control of these properties, rather than some outside group. As was stated earlier, a 60% affirmative vote of the owners is required to allow this to happen. In accordance with our By-Laws, we are conducting the vote online.
As additional information, we are also exploring options with Rialto relative to gaining ownership of the clubhouse. This is a separate issue and not part of this agreement. The clubhouse is in quite a bad state of repair. Your Board will keep you posted on this issue.
It is most important that every owner vote! Go to Ballot.
At this time, Rialto has sold all of its cabins to individuals. They still have possession of the club house, which they have on the market. They also still own much of the undeveloped land and lots. The issue for them is that the undeveloped land and lots cannot be built upon, so it cannot be sold to individuals or developers wanting to build.
Over the last few years, your Board of Directors has sought ways to work with Rialto to try and get possession of as much of the undeveloped property as possible. The intent would be to convert it to “green space” and possibly develop hiking trails and other appropriate recreational opportunities for our Resort. We have contacted the county concerning the “green space” idea, and they are very receptive to it.
Rialto now has a buyer who owns a cabin outside of (which is also not in Hidden Springs), but adjacent to, the yellow property shown above. That buyer would like to purchase the 44.87 acres to have as a buffer to the back side of his cabin. The buyer is requesting that the 44.87 acres be removed from Hidden Springs Resort. When Rialto approached the Board about this possibility, we began serious negotiations with them. Here is an agreement that has been reached, but must have approval from at least 60% of the owners. Note: There is no money being exchanged in this Agreement.
Here is what Rialto Capital gets:
- Hidden Springs Resort HOA would release the 44.87 acres (yellow area) from our Codes, Covenants and Restrictions.
Here is what Hidden Springs Resort gets:
- Rialto grants a perpetual easement and access to the well located on the clubhouse property. This is one of our primary wells, and it is very important that we maintain access to it.
- The new owners agree to grant Hidden Springs Resort HOA a permanent easement and access to a well located on the 44-acres property should we ever determine there is such a need.
- Rialto Capital will convey to Hidden Springs Resort HOA ownership of the 56.29 acres of undeveloped land (the area shown in green) to the south.
- Rialto Capital will convey to Hidden Springs Resort HOA ownership of the following units (lots) in the white area above: 73, 74, 75, 115, 116, 118, 135, 137, 246, 250, 252, 146R, 154R, 156R, 222R, 242, 244, 280, 286, 288, 665, and 666.
Your Board feels that this is a very good opportunity for our Resort. It will give our Resort control of these properties, rather than some outside group. As was stated earlier, a 60% affirmative vote of the owners is required to allow this to happen. In accordance with our By-Laws, we are conducting the vote online.
As additional information, we are also exploring options with Rialto relative to gaining ownership of the clubhouse. This is a separate issue and not part of this agreement. The clubhouse is in quite a bad state of repair. Your Board will keep you posted on this issue.
It is most important that every owner vote! Go to Ballot.
Return to Ballot