No Respect for Rarity Bay Residents and Property Owners
Posted 04-10-2020 at 01:31 PM by TennTitan
Updated 04-11-2020 at 07:46 AM by TennTitan (Correct formatting "six PRIMARY GOALS," list.)
Updated 04-11-2020 at 07:46 AM by TennTitan (Correct formatting "six PRIMARY GOALS," list.)
What happened to that Transition from a Developer-controlled community to one governed by Residents that was completed in 2013?
Following is part of the historical record of the Transition that was promised, and supposedly completed, under the supervision of the court-appointed Receiver.
(Extracts from documents that Reference the Transition of the Rarity Bay community to its Residents)
July 19, 2012 - Letter from Court-appointed Receiver:
“Thank you for your anticipated cooperation during this time. It is my goal to put the Association under the control of the members as soon as practical. We request your patience as we transition to a new Board of Directors and method of operations.”
July 25, 2012 - Regular Meeting Board Minutes:
“(Receiver) reported that he will be monitoring the daily tasks of the association and replacing Mike Ross as president and chair of the Rarity Bay Community Association. Inc., as approved by the court order. His goal is to transition the Board of Directors of the Association to be fully controlled by Rarity Bay residents.”
“In the interim (Receiver) reported that he will be working with the current Board members, other members of the community, Mr. xxxxxxxx and Mr. yyyyyyy to develop a "transition team" to assist with the process of moving away from a developer managed community to a community managed by the Association of property owners.”
“Given his goal to turn the operating of the community over to its members, he expects this transition to a property owner controlled Board to be positive. (Receiver) reported he will work closely with all parties to achieve this so that the Association remains strong and financially viable.”
August 7, 2012 - Special Meeting Board Minutes:
“Other Committees: xxxxxxx reported that he had contacted other members of the community to determine their interest in serving on a number of committees to assist with the transition effort underway.”
August 13, 2012 - Letter from Receiver:
“As was described in my letter to property owners dated July (19), 2012, steps have been taken resulting in changes to the composition of the RBCAI Board of Directors to give control of Board decisions to resident Directors. As granted by Order of the United States District Court, I will continue to act as Declarant replacing Michael Ross and will temporarily continue as RBCAI Board president, chairman and director to insure a successful transition from a developer managed community to one where future decisions are made by an owner-controlled Board of Directors – elected by you.”
“Our thanks to the CAC Committee and Women’s Club for making this transition work on behalf of all property owners.”
“This is an exciting time in our community. Working together will be the key to our successful transition.”
August 29, 2012 - Regular Meeting Board Minutes:
“(Declarant) stated that as promised at his first Board of Directors meeting it was his commitment to convert the RBCAI to a full resident member Board. On July 19, 2012, he appointed himself to replace Michael L. Ross Declarant and President and retained appointed Board member xxxxxxx to assist both him and the Board with the transition to a member managed Board.”
August 30, 2012 - Letter from Receiver via RBCAI email:
“As re-stated in the Board meeting on August 29, 2012 in my capacity as Receiver and Declarant for the Rarity Bay Community Association, Inc. (RBCAI), I have said on numerous occasions that it was my commitment to convert the RBCAI to a full resident member Board. On July 19, 2012, I appointed myself to replace Michael L. Ross as Declarant and President and retained appointed Board member xxxxxxx to assist me and the Board with both the conversion and the additional transition to a member managed Board, replacing American Harper.”
“Other Committees have been and are continuing to be formed and include interested and qualified community members who are willing to volunteer their time and experience in making the RBCAI an outstanding organization managed by the residents.”
“In order to meet my commitment of converting the RBCAI to a complete resident member Board, at the appropriate time, I will withdraw my two appointments allowing five (5) new Board members to be elected at the next Membership meeting.”
December 11, 2012 - Email from Board President, RBCAI:
“Xxxxxxx made an extensive detailed presentation of the process, findings and recommendations of the Transition Committee. Their task was to look at three possible scenarios to run CAI operations going forward: 1) Hire a management company; 2) Hire a General Manager; 3) Hire an Administrative Manager. The Committee’s recommendation was to hire a management company. The Board will discuss the Transition Committee’s recommendations and consider all the options during Executive Session and get back to the Committee within two weeks.”
September 21, 2013 Annual Meeting of RBCAI Members:
(Comment from Receiver read to Attendees)
“I also want to congratulate Board President xxxxxxx for a job well done during the transition.”
(Comment from President’s Report)
“WE SUCCEEDED IN TRANSITIONING FROM A DEVELOPER MANAGED ASSOCIATION TO A RESIDENT MANAGED ASSOCIATION WITH A SOLID MANAGEMENT FOUNDATION FOR THE FUTURE.”
Undated - State of the Organization RBHOO 2013:
“As I close out my third year as President of the Rarity Bay Homeowners Organization, I am happy to say that RBHOO is alive and well. Despite some calls for the organization to fold once the RBCAI became totally resident controlled ….”
Undated - State of the Organization RBHOO 2014:
“It is hard to believe, so some ways that I have prepared my fourth and final State of the Organization report to be read at our Annual meeting. The Rarity Bay Homeowners Organization was a strong group when I followed xxxxxxx as President in 2011 and I can honestly say we continue to thrive going into 2015. During my terms in office, Rarity Bay has had a major change in how our community is governed and our organization has worked hard to augment the all-resident CAI Board projects with some of our own to benefit not only our homeowner members but also the community at large.”
February 12, 2015 – RBCAI Board Brief:
“VISION STATEMENT
The Rarity Bay Community will be recognized as the premier “Residence of Choice” in East Tennessee by preserving the beauty, character and architectural integrity of the community while maximizing our focus on the needs of our residents and property owners.
MISSION STATEMENT
The mission of the Rarity Bay Community Association (RBCAI) is to provide the highest level of community living in a well-maintained, safe and neighborly environment for the common benefit and enjoyment of all homeowners.
The RBCAI Board will effectively manage Rarity Bay’s Master Agreement, By-Laws, and approved Covenants, Conditions, and Restrictions while providing ethically and fiscally responsible solutions to promote a strong sense of “community”, and optimize property values.
CORE VALUES
In addition to the VISION and MISSION, the RBCAI Board has developed a strong foundation for success by establishing and living the following core values:
·Respect each other and the diverse needs of our homeowners.
·Operate openly and encourage participation in our Association.
·Employ responsible, sound judgment in all financial decisions.
·Conform to ethical practices that protect the long term interests of the community.
·Weigh the interests of all current and future homeowners equally.
·Preserve and enhance home values and quality of life.
·Advocate for our interests in the community, county, and state.
·Support amenities in a way that enhances the life styles of Rarity Bay.”
What Happened to all those promises and plans for a future free from the self-interests of a Developer?
Following is part of the historical record of the Transition that was promised, and supposedly completed, under the supervision of the court-appointed Receiver.
(Extracts from documents that Reference the Transition of the Rarity Bay community to its Residents)
July 19, 2012 - Letter from Court-appointed Receiver:
“Thank you for your anticipated cooperation during this time. It is my goal to put the Association under the control of the members as soon as practical. We request your patience as we transition to a new Board of Directors and method of operations.”
July 25, 2012 - Regular Meeting Board Minutes:
“(Receiver) reported that he will be monitoring the daily tasks of the association and replacing Mike Ross as president and chair of the Rarity Bay Community Association. Inc., as approved by the court order. His goal is to transition the Board of Directors of the Association to be fully controlled by Rarity Bay residents.”
“In the interim (Receiver) reported that he will be working with the current Board members, other members of the community, Mr. xxxxxxxx and Mr. yyyyyyy to develop a "transition team" to assist with the process of moving away from a developer managed community to a community managed by the Association of property owners.”
“Given his goal to turn the operating of the community over to its members, he expects this transition to a property owner controlled Board to be positive. (Receiver) reported he will work closely with all parties to achieve this so that the Association remains strong and financially viable.”
August 7, 2012 - Special Meeting Board Minutes:
“Other Committees: xxxxxxx reported that he had contacted other members of the community to determine their interest in serving on a number of committees to assist with the transition effort underway.”
August 13, 2012 - Letter from Receiver:
“As was described in my letter to property owners dated July (19), 2012, steps have been taken resulting in changes to the composition of the RBCAI Board of Directors to give control of Board decisions to resident Directors. As granted by Order of the United States District Court, I will continue to act as Declarant replacing Michael Ross and will temporarily continue as RBCAI Board president, chairman and director to insure a successful transition from a developer managed community to one where future decisions are made by an owner-controlled Board of Directors – elected by you.”
“Our thanks to the CAC Committee and Women’s Club for making this transition work on behalf of all property owners.”
“This is an exciting time in our community. Working together will be the key to our successful transition.”
August 29, 2012 - Regular Meeting Board Minutes:
“(Declarant) stated that as promised at his first Board of Directors meeting it was his commitment to convert the RBCAI to a full resident member Board. On July 19, 2012, he appointed himself to replace Michael L. Ross Declarant and President and retained appointed Board member xxxxxxx to assist both him and the Board with the transition to a member managed Board.”
August 30, 2012 - Letter from Receiver via RBCAI email:
“As re-stated in the Board meeting on August 29, 2012 in my capacity as Receiver and Declarant for the Rarity Bay Community Association, Inc. (RBCAI), I have said on numerous occasions that it was my commitment to convert the RBCAI to a full resident member Board. On July 19, 2012, I appointed myself to replace Michael L. Ross as Declarant and President and retained appointed Board member xxxxxxx to assist me and the Board with both the conversion and the additional transition to a member managed Board, replacing American Harper.”
“Other Committees have been and are continuing to be formed and include interested and qualified community members who are willing to volunteer their time and experience in making the RBCAI an outstanding organization managed by the residents.”
“In order to meet my commitment of converting the RBCAI to a complete resident member Board, at the appropriate time, I will withdraw my two appointments allowing five (5) new Board members to be elected at the next Membership meeting.”
December 11, 2012 - Email from Board President, RBCAI:
“From the Board's intense efforts over the previous three weeks, we have now established our six PRIMARY GOALS:May 9, 2013 - RBCAI Board Brief:
- Efficiently and effectively manage the finances and operation of the CAI
- Establish necessary committees and/or representatives
- Enhance two-way communication between the Board and members of the Association
- Revise the By-Laws, CC&Rs, and policies as necessary
- Protect the community and its amenities
- Successfully guide the RBCAI through the transition challenges.”
“Xxxxxxx made an extensive detailed presentation of the process, findings and recommendations of the Transition Committee. Their task was to look at three possible scenarios to run CAI operations going forward: 1) Hire a management company; 2) Hire a General Manager; 3) Hire an Administrative Manager. The Committee’s recommendation was to hire a management company. The Board will discuss the Transition Committee’s recommendations and consider all the options during Executive Session and get back to the Committee within two weeks.”
September 21, 2013 Annual Meeting of RBCAI Members:
(Comment from Receiver read to Attendees)
“I also want to congratulate Board President xxxxxxx for a job well done during the transition.”
(Comment from President’s Report)
“WE SUCCEEDED IN TRANSITIONING FROM A DEVELOPER MANAGED ASSOCIATION TO A RESIDENT MANAGED ASSOCIATION WITH A SOLID MANAGEMENT FOUNDATION FOR THE FUTURE.”
Undated - State of the Organization RBHOO 2013:
“As I close out my third year as President of the Rarity Bay Homeowners Organization, I am happy to say that RBHOO is alive and well. Despite some calls for the organization to fold once the RBCAI became totally resident controlled ….”
Undated - State of the Organization RBHOO 2014:
“It is hard to believe, so some ways that I have prepared my fourth and final State of the Organization report to be read at our Annual meeting. The Rarity Bay Homeowners Organization was a strong group when I followed xxxxxxx as President in 2011 and I can honestly say we continue to thrive going into 2015. During my terms in office, Rarity Bay has had a major change in how our community is governed and our organization has worked hard to augment the all-resident CAI Board projects with some of our own to benefit not only our homeowner members but also the community at large.”
February 12, 2015 – RBCAI Board Brief:
“VISION STATEMENT
The Rarity Bay Community will be recognized as the premier “Residence of Choice” in East Tennessee by preserving the beauty, character and architectural integrity of the community while maximizing our focus on the needs of our residents and property owners.
MISSION STATEMENT
The mission of the Rarity Bay Community Association (RBCAI) is to provide the highest level of community living in a well-maintained, safe and neighborly environment for the common benefit and enjoyment of all homeowners.
The RBCAI Board will effectively manage Rarity Bay’s Master Agreement, By-Laws, and approved Covenants, Conditions, and Restrictions while providing ethically and fiscally responsible solutions to promote a strong sense of “community”, and optimize property values.
CORE VALUES
In addition to the VISION and MISSION, the RBCAI Board has developed a strong foundation for success by establishing and living the following core values:
·Respect each other and the diverse needs of our homeowners.
·Operate openly and encourage participation in our Association.
·Employ responsible, sound judgment in all financial decisions.
·Conform to ethical practices that protect the long term interests of the community.
·Weigh the interests of all current and future homeowners equally.
·Preserve and enhance home values and quality of life.
·Advocate for our interests in the community, county, and state.
·Support amenities in a way that enhances the life styles of Rarity Bay.”
What Happened to all those promises and plans for a future free from the self-interests of a Developer?
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Added to the History of Transition in Rarity Bay
A New Dawn For East Tennesee’s Rarity Bay
Posted on April 25, 2013 by Marian Schaffer
Southeast Discovery received a press release from Rarity Bay’s Community Association this week titled, "Rarity Bay Community Association, Inc. Charts New Self-Directed Path Toward New Growth". We are very happy for this community which was developed 18 years ago by Rarity founder, Mike Ross.
Rarity Bay, a golf, boating and equestrian community is located on Lake Tellico, a 16,000 acre picturesque lake in Eastern Tennessee, about 25 minutes southwest of downtown Knoxville. Rarity Bay was the first of a handful of Rarity communities started in the Eastern Tennessee region and really, the only Rarity community that was for all intense purposes, completed with all promised amenities.
Southeast Discovery wrote about Rarity’s developer, Mike Ross who had fallen from grace back in July of 2012 in our blog titled, Mike Ross, developer of Rarity Bay, removed by court order from Tennessee golf community. This article, was followed up by a second article released in December of 2012, Rarity Communities Founder, Mike Ross Indicted. Last fall, this established Eastern Tennessee golf and boating community located in Vonore, Tennessee, elected for the first time ever, its all-resident Board, embarking on a new path with property owners and residents and a plan that is resident focused and responsible for the benefit of this community, Rarity Bay.
As their press release proclaimed, "It’s a new day in Rarity Bay!" Rarity Bay was the first developed community under the Rarity Communities, Inc. umbrella of Eastern Tennessee premier residential developments. Rarity, the corporation really became the flagship name of master-planned communities in Eastern Tennessee, known for its rapid growth and aggressive plan for numerous developments which were simultaneously underway. Then, the economy suffered an economic slowdown, which impacted the real estate markets and Eastern Tennessee was no exception. Simultaneously, and what we believe was the most significant detriment to the development company, Rarity Corporation over-extended itself with aggressive development plans for multiple communities in Eastern Tennessee and as a result, many of its developments went into bankruptcy.
The Rarity Bay Community Association (CIA) is the new legal governing entity of the Rarity Bay community and is no longer tied to either the original developer, Mike Ross or Rarity Communities, Inc. Rarity Bay is operating with positive cash flow thanks to the sound structure of this community, their HOA as residents have been paying into the Rarity Bay HOA for the past 18 years. Thanks to the new leadership of the resident-led Board, Rarity Bay as a development, along with the residents are seeing positive changes in their community that will directly benefit their community’s residents as well as their property owners who have yet to build in the community.
Here are a few that we’d like to cite:
• A new Board of Directors, 100% residents only, was established in late 2012. It’s a known fact that self-directed and self-managed community organizations are typically more effective in meeting the needs and expectations of their residents and property owners, so the new resident-run Board for Rarity Bay is looked upon with great enthusiasm and expectation.
• Through the resident CAI Board efforts, along with some community driven projects, current and future residents can be confident in the financial sustainability, architectural control, and future direction of Rarity Bay.
• Rarity Bay has launched a new website on behalf of their community as the official community site – raritybaycommunity.com. New marketing communication plans are also being considered to foster interest in this community by today’s buyers, to promote future growth of the development and increase the real estate values within the community.
• Rarity Bay’s amenities, specifically the golf course, boat docks, tennis courts, equestrian center, club house, restaurant and fitness center have all been well-maintained on a continuous basis. They are all fully operational and available for the residents to enjoy and in some cases, are also open to the public.
The Board of Directors and Resident Committees of Rarity Bay are working to both protect as well as improve the amenities within Rarity Bay. They believe quality amenities are necessary to the future growth of Rarity Bay as well as promoting a higher standard of living within the community. Rarity Bay residents and property owners are thrilled with the opportunity to finally chart their own course, thereby protecting their community’s future.
Here at Southeast Discovery, we are happy for the residents and property owners of Rarity Bay and once again, this is a testament of the authentic strength of residents and property owners of many master-planned communities. The steadfast commitment we see time and time again of many master-planned communities throughout the Southeast, for the residents and property owners to protect their community, their investment in a place they have chosen to call home, in the midst of a fallen developer, succeeds.Posted 05-27-2020 at 07:39 AM by TennTitan
