NOTHING CHANGES?

I gave everyone a long time to post positives. Nothing. Draw your own conclusion.

NOT THE END, BUT GOODBYE

After 557 posts - scroll through and believe it or not, you'll find some positivity within the opinion pieces and clear disappointments - I have decided to stop posting.

This should bring great joy to those who feel that one man can somehow damage a multi-multi million dollar land developer, albeit one with extremely poor communication skills.

Why stop? I just don't have the energy to absorb the slings and arrows of the anonymous posters who attack my motives, blame me for the bad economy, can't sell their properties because allegedly someone read something I posted. Say what you will, at least I haven't hidden away like those behind cowardly anonymous responses.

But I won't take the blog down.

I invite YOU to post what you feel are the pluses or minuses - make it YOUR community organ. You can e mail your comments for posting, or respond to posts - which are less visible. All input is welcome, will be moderated, but not edited unless something is way out of line. I will no longer post anonymous input.

I couldn't make it to the annual meeting. That's why I haven't reported on it.

From what I heard, it wouldn't surprise me if Discovery walks away or sells, and I think that might be a good thing as their investment in the future appears to challenge them. Or maybe the whole refinance is a dance between the partners, each looking for a better lever on the others.

So, seriously, contribute stories, pictures, and your vision. As it seems the golf side will separate from the rest of the development, this isn't for that side of things.

Thanks to those who have encouraged this communication.

POOL TIME!

The pool will be open as of tomorrow for swimming 10 am - 9 pm, Saturdays and Sundays.

The Grille will open Memorial Day weekend, so in the meantime please feel free to bring your own snacks and drinks and enjoy the facility.

Effective Saturday, 5/29, the pool/grille hours will be:

Pool: Tues.-Sun., 10 am to 9 pm.
Grille: Wed.-Sun., 11 am to 7 pm

OAK WILT INFO

Only You Can Prevent Oak Wilt
Robert Edmonson-Biologist II-Texas Forest Service
February 23, 2009


With spring just around the corner, so too is the threat of oak wilt: the deadly disease that has killed thousands of oaks in 72 counties in central and west Texas. The Texas Forest Service (TFS) reminds the citizens of Texas this is the prime season for starting new oak wilt infections.

New oak wilt infections are created when sap-feeding beetles carry oak wilt spores to
fresh cuts or wounds on oaks. Tree sap from fresh wounds can attract sap-feeding beetles that may be carrying these oak wilt spores. When these spores are introduced to the wound, a new oak wilt infection is created. To prevent this from occurring, TFS recommends to:

1) Avoid pruning or wounding oaks from February through June.
2) Immediately paint cuts or wounds on oaks, regardless of season.

Wounding includes but is not limited to: pruning, construction activities, animal damage, land clearing, lawnmower or string trimmer damage, and storm damage.

Oak wilt spores and increased beetle activity occur in spring; therefore avoid pruning or wounding oaks during this most vulnerable time. Fresh wounds produce sap which in turn attract sap-feeding beetles; therefore apply paint to pruning cuts or other wounds immediately to prevent spore-carrying beetles from visiting your oak. Any type of paint will accomplish this task. These recommendations apply only to oaks as only oaks are susceptible to oak wilt.

Other preventative measures include using caution when selecting and transporting oak
wilt killed firewood and destroying diseased red oaks that can potentially produce oak wilt spores.

ANNUAL MEETING

Why is the late annual meeting so early? How many won't be able to be there at the start due to traffic, and coming home from work - let alone having something to eat?

Do you think that start time is on purpose?

I know there are many who are so frustrated with the developers that those people think "What's the use?" about coming to the meeting. Hopefully the full force of a large turnout WOULD accomplish something positive.

HWY 71

The ONE LANE scheme in either direction seems temporarily on hold or delay. We have to get through that inconvenience to attain a safer roadway.

You can see the men out there trenching, which I assume to be for utilities.

How will they span the creek?

Will they have to trench the east entrance? I suspect so, and the markings on the street there would seem to indicate same. It wouldn't surprise me to find us cut down to one exit for a term.

Then the East Gate Guard can, um....

2009 ANNUAL MEETING... MID MAY 2010!!!

May 12th to be exact. That's just silly. These guys couldn't possibly report to the owners at the end of the year?

And since then, apparently, there's a financial crisis affecting the developer/s. Hey guys, you know that risk/reward equation? Man-up.

PLUS property owners appear to be having a 'dues revolt' according to a letter from the HOA rep. He adds: "The future of the development and the Club is not certain at this time." < OH REALLY? > "However, we must understand that the HOA is not a function of the Club, is not a function of the Developer" "and is a function of we who own property in Spanish Oaks. To that end we all must continue to abide by the principles we agreed to when we made the decision to live in this neighborhood."

I suppose you could argue that in pursuit of more sales, the 'principles' (earth tones, turf areas, natural looks) were altered to move more property. We certainly never agreed to them.

More: "The HOA is not a part of the Developer, is not a part of the Club, and is for the benefit of the owners of property in Spanish Oaks." But but, the HOA is completely managed by the developer. We have zero say in what they do. And they appear to do little.

We can't get a clean mail area without repeated complaints. (As if the HOA rep and manager don't notice.) A concrete curb on SO blvd has been broken for at least a year. A very large rock was moved out of place on the SO Blvd circle and the gouge resulting has been ignored for at least a very long time.

I could go on but if you live here you know inattention to detail just may be sparking some of the 'dues revolt' which is now over 6 figures of debt.

A NEIGHBOR WRITES

I am a resident over by the east gate. I went to get my mail this morning after being on a business trip for the past several days. The mail area trash was overflowing to the point where it was making a mess of the whole area.

Also, I have been noticing for almost two months now a burnt out lightbulb in the east mail room. I know that is a little thing, but little things often tell us about big things. I view the trash as a big thing. Prospective owners will never buy in here with these issues. Not one home owner in this development would treat their own property this way.

It is such a disappointing situation and it also seems unnecessary. We need to do something about this and somehow empower the owners. We all take pride in our neighborhood.

(Comment) ... we hear that Pam will remove the trash can. We wonder why it takes so long for her to notice and act. For that matter, why does our on-site home owner HOA rep also not cause action to be taken?

LETTER FROM THE BOARD

Arrived today (April 1) but no April Fool's Day gag, sorry to say.

Basically, they are holding off on the annual (this would be a wrap up of 2009!) meeting until they have better news or a more complete scenario regarding the club, finances, and bank negotiations. By the time they present this year's budget, the first quarter has passed.

Remember, the HOA is run by the developer until a certain high percent of sellout is reached (if ever.) Know that you have little meaningful input.

Issues raised include...

Maintenance. Apparently abated through the winter, it is due to start up in days. (Why let the weeds take over common areas at a time when sales are struggling? Wouldn't that make SO compare less favorably to its competition?) Are the developers so cash-strapped that they could allow the landscaping to deteriorate to such an extent? Reserves are less than $6000.

Monthly fees and foreclosures: some aren't paying, certain foreclosure properties exacerbate budget shortfalls. Now there will be legal fees chasing lost or held money.
Why haven't money saving measures already been put into place wisely? Do we need guards on BOTH gates over night (as an example?)

The letter seems to paint a picture of responsible actions being taken. Time will tell, although new financing could present interesting terms. I get the impression that a new investor could bring a fresh infusion of operating funds which could kickstart the sales cycle again. But how would that change the vision of what SO is and will be?

FINALLY?

Spring Clean up starts Saturday and continues Monday and Tuesday. This includes chemical weed treatment.

QUESTIONS FOR ANNUAL MEETING

As Discovery is communication-challenged, we don't know the answers to the questions which revolve around the financial woes of the developer:

You might wish to expand on these topics and prepare now to attend the annual meeting (as of this writing, unscheduled) which is perhaps the most important one we've had in our short life as Spanish Oaks. The more people who speak up, stand up and make their feelings known, the more force it will have. This is no time to be passive-aggressive.

It is said that the annual (2009!) meeting is being held off until they get their financial house in better order.

1- Are funds co-mingled from the golf club to the general project?

2- Why is there only about $5000 in the reserve fund for the project? (Note east side road deterioration.)

3- What is being done about the sorry state of our common areas: weeds, erosion to the 'paths,' the broken curbing, the mail area trash? What is the state of our common area landscaping contract?

4- How does the east end mail area get so trashy AND NO ONE IN MANAGEMENT notices until upset owners complain? How can we insure more pro activity?

5- Is it time to seriously talk about eliminating staffing both gates - at least overnight - to reduce expenses? (Speed passes and push button codes would allow entry.)

6- What plan does Discovery have to revitalize the project?

For new owners note: When Daniel Porter passed control to Discovery, we noted a different view of the 'plan' for the community and what appeared to be a relaxed set of design rules. IF THAT HAPPENS AGAIN, we can expect another set of changes. Will this affect us and how?

LAND SNAKES ALIVE!

Here's the first little one I've seen this spring - apparently run over, squashed and drying... but you have to remember they hatch in batches and where's there's baby there's mama. This one looks benign, but there are others with nasty fangs to be avoided. A hint - watch out if you plan to take pictures of babies laying in bluebonnets. Remind the kids... snakes are part of life here. Be careful. Look before you thrust your hand into somewhere you can't see.

As cold blooded, they will seek warmth from garages, rocks, and maybe even porches in the evenings and nights.

Also know that baby rattlers have no rattle but do have a full dose of venom.

Like some politicians.

PROPANE... PROPAIN?

I had a call from a rep for Sharp Energy who reads this blog - hello Kim!

She gave me some background on the installation of the new larger propane tank in Spanish Oaks. Things to know: it will exist in a 100 year flood plain which complicates the issue in that measures must be taken to keep it in place in the unlikely event... (it will sit above ground but will be shielded from view.)

It's anticipated to be installed this summer.

Our costs will not be appreciably affected by the larger tank - i.e.: fewer deliveries.

ANNUAL MEETING

...or more and less annual meeting. This year's last year's meeting is looking like it might happen in April. Will there be enough warning for those who might want to travel in for this one? There's sure to be news about financial re-organization or lack thereof.

ANOTHER ONE- JUST LIKE THE OTHER ONE

Another road sinkhole has appeared in the back of the project on S.O. Blvd., just like the last one, though in the opposite lane and farther up the road. It's marked with cones.

SALES OFFICE MOVES

Note the new sign fronting the old Sales Offices... Daniel Porter apparently leased these to Discovery and the term has expired. Now it's A Porter Place. Discovery's Sales offices for Spanish Oaks have been moved to the Golf Club Administration Building.

LCRA EMERGENCY CALL

Robot calls of emergency situation went out to area residents mid afternoon. The recording is a request to limit water usage to only the barest of essentials. Obviously, they are working on some pipe somewhere.

THE FULL STORY

From today's AMERICAN-STATESMAN

Published: 9:36 p.m. Friday, March 5, 2010

Owners of Spanish Oaks, a 911-acre luxury residential and golf course development in Bee Cave, are in talks with their lenders to revise the terms of a $32 million loan and avert foreclosure.

Daniel Porter, Spanish Oaks' original developer, said that the problem arose when a recent appraisal valued the project at less than the amount required under the terms of the loan from Comerica Bank.

Porter said he couldn't disclose the appraisal amount.

Spanish Oaks, south of Texas 71 and Bee Cave Road, is among the high-end residential projects in Central Texas to run into financial headwinds from the economic downturn. Several others ended up in foreclosure, but Porter said Comerica has indicated its willingness to work with the owners to forestall that outcome.

Under the original vision, the project was to have been completed by 2012 with 436 homes — an estimated $600 million worth of real estate, Porter said.

To date, 270 lots have been sold and 125 homes have been built, with an average price of $1.5 million. Golf Digest has ranked Spanish Oaks Country Club as one of the top private golf courses in the country.

The project is owned by Spanish Oaks LP, a partnership consisting of Ross Perot Jr.'s Hillwood Development Co. LLC, which owns 65 percent; Discovery Land Co. LLC, with 15 percent; and Porter's CCNG Realty Inc., with 20 percent.

Hillwood and Discovery, the project's managing partner, were brought in as investors in 2005, pumping in $20 million along with CCNG, Porter said.

Sales began in April 2002, with the first 25 lots selling that year at an average price of $130,000, Porter said.

In 2004, CCNG sold 65 lots at an average of $160,000. Lot prices peaked in 2008 when they averaged $500,000.

But just 12 lots were sold in 2008, and only six were sold last year, averaging $424,000, Porter said.

"It was like a rock falling out of the sky," Porter said of the sales.

"A lot of people are wanting to do something to try to keep this project from falling into a bad way financially, " Porter said. "It's too good a project."

The loan negotiations involve the golf course, unsold lots and undeveloped land. Porter said the partners have invested $70 million, including the golf course, roads and utilities.

For now, the golf course remains open to members and their guests, although the clubhouse has reduced hours and laid off some employees.

Porter said CCNG has made an offer to the partnership to buy the golf course. A letter of intent was signed, but no binding agreement was reached.

"It's a great project and a great golf course, " Porter said. "The members love it. We just have to work through this."

Discovery oversees Spanish Oaks' golf club, development and sales operations.

In a statement Friday, Michael Meldman, chairman and CEO of Discovery, said the company is working with "the membership and our majority partners to address long-term plans" for the club's operation.

Todd Platt, CEO of Hillwood Investments, said the partners are hoping to find a way to transfer the course to its members.

An attorney for Comerica did not return messages seeking comment.

David Armbrust, Porter's attorney, said that Spanish Oaks has suffered from the slowing economy.

"I think Spanish Oaks is kind of a poster child for the effect the economy has had on western Travis County from the standpoint of a drop in property values that has affected raw land, developed land and individual homes," Armbrust said. "The problem is, there are no transactions, really."

Appraisers can use such market activity to set property values.

Other area projects also have been hit by the lingering economic slump.

Last year, the 468-acre Rocky Creek Ranch off Hamilton Pool Road, where 396 upscale homes were envisioned, became one of the region's biggest residential foreclosures. CB Richard Ellis began marketing the property in November for $17.5 million.

Other foreclosure actions included Vizcaya, a luxury residential development planned on the south shore of Lake Travis; MDR Hollows LP, developer of the Hollows resort on the north shore of Lake Travis; and Avaña, a proposed 1,000-acre residential development at Texas 45 and Escarpment Boulevard.

Spanish Oaks originally encompassed 1,211 acres, but 120 acres were sold to Cypress Realty Inc., which later sold 88 of those to developers of the nearby Shops at the Galleria.

CCNG owns another 77 acres at Spanish Oaks that allow for mixed-use commercial development, Porter said.

Armbrust thinks the region is at the tail end of the major foreclosures and "things are looking up," with more buyers kicking the tires for deals.

Despite its financial distress, Armbrust said Spanish Oaks is "a great project," and "with an improving economy, the future is bright."

"They need some consideration from the bank at this point to get from here to there," Armbrust said.

snovak@statesman.com; 445-3856

Comment: Why do owners have to find this out by the newspaper? Wouldn't the developers generate good will through proactive communication?

DANIEL PORTER TAKES OVER SALES OFFICES

It seems Spanish Oaks founder Daniel Porter has resumed operations in what has been the Spanish Oaks Sales Offices. There's a new sign which lists two 'groups.'. The question I have is Spanish Oaks Realty one of HIS entities or the Discovery crew.

MORE ON SPANISH OAKS GOLF CLUB

As you'll read below, the golf part of club membership is apparently unaffected.

MESSAGE FROM SOGC BOARD OF DIRECTORS March 2, 2010

On behalf of the SOGC, Inc Board of Directors, thank you for this opportunity to provide current information on the affairs of Spanish Oaks Golf Club.

We last wrote on February 5, 2010 to inform you negotiations were underway to restructure Spanish Oaks’ loan with Comerica Bank and obtain a release of collateral secured by Club assets. Since that time, Spanish Oaks, LP (the ownership group) held conversations with the Board of Governors and continued negotiations with Comerica.

Regretfully, ongoing discussions with the Bank have yet to be resolved.

The limited funds available to operate the Club require a suspension of all services with the exception of golf operations. The course and practice facility will remain open. In addition, a limited lunch menu will be served from 11:00am – 2:00pm. We apologize for any inconvenience this may cause you and your family and commit to notify you promptly of any further changes.

Thank you for your patience and understanding during this difficult time.

Very Truly Yours,

The Board of Directors

SPANISH OAKS GOLF CLUB CLOSING?

Rumors have been flying. Four separate sources over several days have come forward. HOA manager Pam Chandler either doesn't know or isn't allowed to speak. Yes, she works 'for the HOA' but that's controlled by the developer.

Here's what I believe is happening. For some reason as yet unknown, Discovery Land Company is apparently abandoning management of the Golf Club. Supposedly there's a members' meeting tomorrow at which they will attempt to put together a plan to operate it themselves.

You have to assume Discovery, if they really throw in the towel on golf, must admit their business plan, in this economy at this time, has failed.

The larger story may be how Discovery then continues selling this development as a Golf Club (which they have closed?) It's a bad mark, is poorly handled, and they certainly don't know how to handle rumor control.

And... what's next?

ROAD SINKS

You just took delivery of that Bentley. It's almost spring. It's a perfect sunset, the temperature about 65. You are on the backside of Spanish Oaks Club Boulevard. It looks wide open. No traffic. No kids. The devil on your right shoulder snarls, "To the FLOOR!" You obey. Within seconds your nerves all fire at once as you approach triple digit speed. Then, "WHAM!!!" your suspension takes a hit.

Later, Donny, the Bentley repair guy, puts the cost at $5000 and change. He says, "These babies are really built tight, or it could have cost some REAL money!"

This fantasy brought to you by the road sinking patch on the rear of Spanish Oaks Boulevard. Last we saw it was marked with cones.

SNOW

Transplants know that everyone in the media - well, TV anyway, WAYoverreacted. An inch. --- LIVE TEAM COVERAGE --- Ooooooo.

But in a strange logic, why not? After all, this is the second time IN 19 YEARS since we had all that much snow at once. One inch.

Now it's a day later, the temperature in the shade is 50+ and there are still a few snowpatch refugees, hiding in mulch, defying their genetic programming to wet themselves.

HIGHWAY 71 PROJECT MAP

Here's a great story with map of upcoming road improvements as they impact Highway 71. Click on the map in the story to expand and read it. Click here for the story.

THE BIG PROPANE TANK

According to the MUD engineer, we are very near to installation of the tank. After many iterations of the site plan, they have finally received approvals from TCEQ & The City of Bee Cave.

This will be much larger than what we have, which requires more fillups which also add fees each time.

71

As you no doubt have noted, the east side of "our" 71 has prep underway to accommodate the addition of a turn lane. The job has been 'let.' Construction soon!

LAKE TRAVIS CAVS PARADE

Our local high school enjoyed the afterglow of their third straight state championship win (Class 4A football) in a parade at The Hill Country Galleria Sunday. The team is undefeated in their last 46 games.

ICEY THEN AND NOW

Now it's in the 60s again and wonderful.

Last week's cold snap presented this photo op for Bill Gunn as Maisey poses beneath icicles on Barton Creek Bluff.