Monthly Archives: October 2011

 
Tamarack Municipal Association
Buttercup and Wildwood Lift Update
Number of Shares Requested to Date

 

 

Tamarack Resort – October 25, 2011 –  8:30 AM

Dear Members,

To date,since the Lift Survey was posted,Tamarack Homeowners have expressed a desire to purchase the following number of shares:

Option 1 – The Buttercup Lift only – 1025 shares!*
Option 2 – The Wildwood Lift only – 101 shares
Option 3 – The Buttercup and Wildwood Lifts jointly – 147 shares

1000 shares are needed to fund any one of the Lift Acquisition Options.

There are four things to keep in mind while considering whether to purchase shares:

  1. There is quite a degree of risk involved with the purchase of shares, as there may be zero return on investment. Please read the information provided on the TMA Website carefully and check with your investment advisor or tax advisor to see if this type of investment makes any sense to you. This proposal is not intended to be tax advice nor is it a solicitation or prospectus for a security in any interest in an entity that may require state or federal securities registration. Any actual sale will be subject to further disclosure. 
  2. Remember that the only way that we can log a commitment for shares is for you to indicate in the Survey how many shares you would be interested in acquiring.
  3. If you are pledging shares for Option 3, Buttercup and Wildwood Lifts jointly and you desire to see Buttercup Lift to stay whatever happens, then you should consider pledging the same monetary amount to Option 1, The Buttercup Lift only. The reason is that just in case the share commitment cannot be met for the joint purchase of Buttercup and Wildwood, then your  commitment could be transferred to Buttercup Lift only option. Keep in mind that 1 share for Buttercup and Wildwood Lifts jointly is $3600.00 which equals 9 Buttercup Lift only shares at $400.00 per share . ($3600.00 per share  / $400.00 per share = 9 shares).  If Option 3 prevails then your commitment to Option 1 goes away since there would be enough funds to form two Corporations, one for each lift. The same logic would apply for the Wildwood Lift only, Option 2. We hope this is helps.  
  4. The Survey to pledge for shares ends at Midnight, October 25, 2011.    

 

 *  It appears that the TMA Members have met the goal of committing to purchasing enough shares to secure the Buttercup lift. HOWEVER, it is important to note the following:

A.) Some currently committed shares may drop out, so securing additional commitments for shares will help guarantee success and

B.) The number of shares offered could be increased, thereby reducing the share price and the financial outlay for the Members. 
We will endeavor to keep you updated on a regular basis.

Thank you so much for taking the time to considering these Options.

 
Tamarack Municipal Association

Wildwood / Buttercup

Lift Purchase Proposal – Updated Information

 October 3rd, 2011

 

 

 

To:  All Tamarack Homeowners and Other Interested Parties

From: TMA Executive Committee

Subject: Buttercup & Wildwood Lifts

Banc of America Leasing (BALC) has recently reached out to the Tamarack Municipal Association and its Members to offer the Buttercup Lift for a sales price of $300,000.00 to the $350,000.00. Subsequent to that conversation, the discussion with BALC was expanded to additionally include the possible purchase of Wildwood Lift. Although no specific number for the Wildwood lift was quoted by BALC, it was indicated that the lift could be acquired for offers for approximately 10 times the amount of the Buttercup Lift. This puts the offering sales prices at $300,000.00 for the Buttercup Lift and $3,000,000.00 for the Wildwood Lift. In addition, BALC indicated that they might also be open to BALC financing the acquisition of the lifts under specific terms if the TMA is involved.

BALC is currently in the process of scheduling the start of lift removal for the middle of October 2011, a couple of short weeks away.

This memo is crafted to initiate a discussion to gauge the interest of Tamarack Homeowners and other interested parities to possibly acquire the lifts from BALC.

The following three general scenarios are presented for Homeowner reaction and feedback and to gauge the level of interest in pursuing the acquisition of these lifts.

  1. Form Corporation/LLC(s) to Acquire Either or Both of the Lifts

 

Offer BALC $300,000.00 for the Buttercup Lift and $3,000,000.00 for the Wildwood Lift and fund the purchase through the sales of shares. The proposed offering would be for 300 shares at $1,000.00 per share for the Buttercup Lift and 1000 shares at $3,000.00 per share for the Wildwood to raise the full purchase price.

See attached spreadsheet “Tamarack Lift Corporation/LLC Scenarios”

Once the lifts are purchased they will need to be maintained on an annual basis. There would be an annual maintenance cost per share and a reserve fund that would need to be created for the 5 year lift inspections that each shareholder would need to agree to commit to.

There is no guarantee that the lifts have any value to a future Owner of the Tamarack LLC assets. Ideally when Tamarack is purchased, the new Owner would desire to acquire the Lifts in order to control as much of the Tamarack assets and recreational amenities as possible and would be willing to purchase the lifts from a for Profit LLC. In this ideal world the investors break even or make a profit from the sale of the lift to the new Tamarack Owners. The formation of a Corporation or LLC would still allow each individual member or shareholder to write off his or her investment. Check with your tax advisor. This proposal is not intended to be tax advice nor is it a solicitation or prospectus for a security in any interest in an entity that may require state or federal securities registration. 

  1. Create a Benefitted Unit Assessment for the Buttercup Lift

 

There are approximately 100 lots in Whitewater that are directly affected by the removal of the Buttercup Lift. Since BALC is willing to discuss financing the Buttercup lift, a Benefitted Unit Assessment (BUA) could be formed in order to finance the lift acquisition.

The general terms proposed by BALC would be 10% down, a 10-year amortization and a 5-year term. For each of the 100 property Owners there would be a one-time assessment of $300.00 to fund the down payment and then an additional BUA assessment amount of approximately $155.23 per quarter for 5 years. The attachment spreadsheet “Buttercup Lift BUA” summarizes the commitment and be reviewed and downloaded from the TMA website.

Once the BUA is set up, the lifts will need to be maintained on an annual basis. There would be an annual maintenance cost per lot or unit and a reserve fund that would be created for the 5 year lift inspections that each stakeholder would need to agree and commit to.

1. Create a Special Resort Lift Assessment for the Buttercup Lift and the Wildwood Lift for all Tamarack Property Owners.

 There are approximately 389 properties at Tamarack. Since BALC is also willing to discuss financing the Wildwood lift in addition to the Buttercup lift, a Special Lift Assessment could be formed in order to finance the acquisition of the Wildwood or Buttercup Lifts or both.

 If the same general terms proposed by BALC were applied would be (10% down, a 10 year amortization and a 5 year term), then for each of the 389 property Owners there would see a one-time assessment of about $850.00 to fund the down payment and then an additional assessment amount of approximately $440.00 per quarter for 5 years. The attached spreadsheet “Buttercup Lift BUA” summarizes the commitment.

 Once the Special Lift Assessment process is set up, the lifts will need to be maintained on an annual basis. There would be an annual maintenance cost per lot or unit and a reserve fund that would be created for the 5 year lift inspections that each stakeholder would need to agree commit to.

This is a time sensitive issue so at your earliest convenience please review the three proposals that are posted on the TMA website homepage at www.tmaidaho.com.

You may send your reply and indicate if you are interested in pursuing any or all of these options as well as any questions you may have to info@tmaidaho.com.

Regards,

Tamarack Municipal Association

 
 
 
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