New Pool in Founders Village - 2010

Early in the development of Daybreak, Kennecott Land had plans to create a beach club that would be situated just outside Founders Village along the shore of Oquirrh Lake. This deal fell through for a number of reasons and residents of Founders Village felt like a promise had been broken. When Kennecott Land announced that a new pool was to be constructed in Eastlake Village, many residents were pleased with the new amenity, but still wanted something similar to be located in Founders Village.

After months of relaying this concern to the HOA and KL, a meeting between a group of homeowners and Kennecott Land has resulted in a plan to build a pool similar to the Eastlake Village pool in Founders Village. The pool will be located next to the Daybreak Community Center (DCC) and has several financial advantages.

The first advantage is that the pool will not need to be designed again as the plans are already in existence. Using these plans saves homeowners an estimated $150,000 dollars. By locating it next to the DCC, there is a possibility of restructuring the showering facilities there to be of use by the patrons of the pool. Local Health Department approval will be needed in this case, but if executed correctly this proposal could save up to $300,000. A final cost advantage is that a variety of firms will be bidding on the project. While this may not seem like a change from other projects, many residents have noted local companies that could construct the pool at a much lower cost than what the Eastlake Pool commanded.

The economic conditions in the construction industry may also be to our advantage as they have become slightly more competitive in recent months. While the swimming pool was discussed at length, the most important product of this meeting was a proposal to transition ownership of the DCC to Daybreak homeowners. Currently Daybreak homeowners are in a 20 year lease agreement for use the DCC with Kennecott Land. The current lease rate is about $270,000 per year. However, under the current agreement this lease will increase to $335,000 per year in 2010. This essentially adjustable rate lease would leave Daybreak Homeowners without ownership of the DCC in the end. The proposed plan is that the homeowners finance the DCC through essentially a mortgage. Attendees of the meeting went over the numbers with the Chief Financial Officer of Kennecott Land and this deal could save homeowners an estimated 6.7 million over 20 years and we will have ownership of the DCC with a pool in Founder’s Village.

Here is a timeline for upcoming events related to this proposal:

• Dec 16th Daybreak BOD meeting
• Jan – HOA will process reserve fund analysis
• Feb – Pool Committee meeting with KL to go over layout and specifics
• Feb – Notices sent to residents of BOD meeting to decide on the proposal
• Mar – BOD Meeting - Residents voice concerns – measure voted on by BOD May (2010) – Founders Village Pool opens on Memorial Day weekend

This proposal could benefit all residents of Daybreak, but especially those in Founders Village. The deal will probably be to the benefit of Kennecott Land as they will be able to free up capital. Specific financial information (terms of the loan, comparative analysis, etc) will hopefully be forthcoming so that homeowners can make an informed financial decision for the future of Daybreak.