Willow Oak Homeowners
Association
Common Area Discussion
Discussion Points
Ray Ball, the original developer of Willow Oak, is taking steps to
divest his interests in the common areas in and around our
neighborhood.
He intends to complete this process by Spring of 2010.
He is giving the park and pond area to LFUCG.
We believe he intends to give the remaining common areas to
WOHA.
He has approached WOHA with a proposal to give us the pool,
clubhouse and adjacent parking lot.
The issues before us…
What are the common areas in question?
What are our rights regarding the various common areas?
What are our options regarding the Pool?
What is the expected impact of these changes on our property
values?
What are the common areas in question?
There are 4 parcels of property
i. The orange areas are land we believe
will be given to WOHA.
ii. The green area includes the park and
the pond, to be given to LFUCG.
iii. The yellow area includes the tennis
courts. Disposition of this area is
uncertain.
iv. The area containing the pool,
clubhouse and parking lot that Ray
Ball has proposed giving to WOHA.
The orange areas are land we believe will be given to
WOHA
These two areas are the sinkhole in the
center of the neighborhood and lot 881
Willow Oak Circle, along the fence with
Willow Bend.
WOHA has been responsible for
maintenance on these areas since 2007.
We spend approximately $3,500 annually
on mowing and other landscaping
expenses for these areas.
During a meeting with Ray Ball in 2007,
he indicated his intent to convey these
parcels to WOHA.
The green areas include the park and the pond, to be given
to LFUCG
This area is approximately 4.60 acres,
known as 750 Millpond Rd, Lot 12-A
It does not include the tennis court area or
pool area.
The yellow area is the tennis court and the open field across
the stream
This area consists of two lots, 550 and
565 Waveland Museum Lane
Ray Ball has offered this parcel to the city,
creating a contiguous park with the parcel
on Millpond Rd
He is open to the possibility of giving it to
WOHA if we choose to pursue it
There will be some costs for repairing or
removing the tennis courts incurred by
whoever takes ownership of this parcel
The area containing the pool, clubhouse and parking lot has
been broken out of the original plat.
This area is approximately 1.02 acres,
known as 750 Millpond Rd, Lot 12-B
This was removed from the original plat in
February 2009.
What are our rights regarding the various common areas?
Our rights in these areas are governed by the Declaration of Covenants, Conditions and
Restrictions for Willow Oak Subdivision, originally filed December 12, 1989.
These covenants have been amended five times; on 18-Feb-90, 19-Sep-91, 7-Aug-92, 15-
Mar-93 and 26-Jul-93.
The current WOHA Board of Directors retained attorney Robert Ryan, of Fowler, Measle &
Bell, PLLC, to assess these documents and advise us on our rights and duties there under.
The Park, Pond & Tennis Courts
After analyzing the Declarations, Mr. Ryan has advised us that we do not have any rights or interests
in Lot 12-A, the park and pond.
This lot was originally included in the Declarations by the 1st amendment dated 18-Feb-90. It was
removed by the 2nd amendment dated 19-Sep-91, as having been erroneously included. It is not subject
to the provisions of the Willow Oak Declarations.
Once this transaction is complete, this area will become a city park. Maintenance will become the
responsibility of LFUCG.
The WOHA Board has contacted city representatives to express our concern over potential issues with
this maintenance. We have been assured that we can “supplement” the city maintenance with our own
measures, at our expense. We may also be able to apply for city funds to apply to this purpose.
The pond requires significant one-time, as well as on-going, maintenance. Ray Ball spent over $14,000
last year on water treatments. The WOHA Board obtained an estimate of $50,000 to $75,000 for
dredging and other work required to bring the pond back to a healthy state.
During the transfer process of the pond from Ray Ball to LFUCG, the WOHA Board will continue to
express to both parties the concerns of our residents regarding the state of the pond.
The Pool
The pool is currently owned by Ball Aquatics.
This entity also previously owned the Waterford neighborhood pool. The Waterford
HOA has purchased their pool and clubhouse from Ball Aquatics.
We have identified three possible options regarding the pool
The WOHA takes ownership of the property – one significant barrier to this option is that the 3rd
amendment to the Declaration of Covenants contains a provision to provide that the pool and cabana area would
not become a part of the WOHA common area or be conveyed to the WOHA for operation or management. This
restriction could be removed by an additional amendment to the Declarations signed by not less than 75% of
property owners.
Set up a separate non-profit entity to assume ownership and operation of the pool – this
would have to be established and led by one or more interested private individuals, who would not have any
assessment power over WOHA members. Any agreement to convey to a non-profit would have to prohibit
transfer to an individual.
Allow Ray Ball to demolish the premises – if the WOHA or some other organization does not take over
ownership of the pool, Ray Ball has indicated he will demolish the clubhouse, fill in the pool and return it to
parkland.
What is involved in accepting ownership of the
Pool?
For many years, the Waterford pool has
subsidized operations of our pool. There are
over 400 homes in Waterford. There are 142
homes in Willow Oak.
For several years, DellaValle Management, Inc
has operated both pools on behalf of Ray Ball
Aquatics on a “fixed-cost” contract; revenues
were independent of membership levels.
Last summer, there were 80 member families of
the Willows pool, of which 38 were Willow Oak
residents. Memberships were priced at $322
per family.
Historically, membership has been open to residents of both Willow Oak and Willow Bend.
The WOHA Board has conducted a feasibility study of the ownership and operation of the pool, obtaining
two separate bids for annual operation and examining historical cost data from Ray Ball Aquatics.
Pool Finances
DellaValle Management, Inc provided a bid to Ball Annual Operating Expenses (recurring)
Aquatics of $65,000. This bid includes many items
specially requested by Ball Aquatics. Glenn Management contract $20,859
DellaValle has indicated his willingness to re-bid
should a different party take ownership of the pool
Utilities $10,685
Professional Pool Management of KY provided two
bids; $34,589 for a two lifeguard operation and Equipment R&M $9,800
$20,859 for a one lifeguard operation
Landscaping & Flowers $250
Projected annual operating expenses are $46,949,
with the lower operating bid.
Liability & Property insurance $2,855
Holding prices stable to last year’s amount requires
a total membership of 144 to break-even Property Taxes $2,500
Capital improvement requirements will be Legal Expenses
determined after a detailed inspection with a
qualified pool operator. We have some indication Other
from Glenn DellaValle that this amount will be
minimal
TOTAL $46,949
Regardless of ownership structure, a reserve of up
to $15,000 may need to be maintained for potential Projected annual membership fee $325
demolition of the site should the pool not prove
viable as an on-going entity. It is possible this sum
can be negotiated as part of any transfer from Ball Break-even membership 144
Aquatics.
How can the WOHA take ownership of the pool?
An existing provision in the covenants prohibits WOHA taking ownership of the pool. This can be amended with
75% written approval of the membership of the WOHA.
If the membership desires to pursue this option, the board will have documents prepared amending our existing
covenants. We will then need door-to-door volunteers to obtain the necessary signatures.
If this campaign is successful, the WOHA will then assume ownership of the property, with financial responsibility
for the structure and operation.
If WOHA takes ownership, we can choose to limit memberships to Willow Oak residents or open up to surrounding
neighborhoods/organizations with resultant lower dues.
The board has met with DellaValle Management to begin developing a possible marketing plan that would lessen
any dues required by WOHA members. This tentative plan includes surrounding neighborhoods, schools and
other groups who may have need of a pool during traditionally low use times. Glenn DellaValle has successfully
assisted several other HOA groups in transitioning pool ownership.
Ray Ball has indicated his willingness to work with the WOHA on a transition plan, including possibly opening the
pool for an additional year until we can finalize a deal.
One further barrier…
The board has become aware of an error in the deed restrictions affecting those lots originally platted in Unit 3-B.
This includes addresses from 764 through 845 Willow Oak Circle and all lots on English Oak Circle.
These 38 lots do not have deed restrictions on file with Fayette County requiring them to become members of the
WOHA. This is the result of a clerical error on the part of Ball Homes, dating from the founding of the
neighborhood.
No other lots are affected.
The board has met with the property owners involved and asked them to voluntarily amend their deed restrictions
to correct this error.
Until such time as they execute documents to do so however, they are ineligible to vote in the matter of the pool
ownership.
The result of this is that a successful campaign to amend the covenants regarding pool ownership will require
approval from 78 of the remaining 104 property owners.
What is the expected impact of these changes on our property
values?
The board consulted several real estate agents, along with a study of historical sales data for surrounding
neighborhoods
Opinions were mixed; some agents believe a neighborhood pool has little to no impact, others see it as an
important amenity
While keeping in mind that a great many factors go into home values, the historical sales data does appear to
support a slight benefit to having a neighborhood pool
Developers clearly believe a pool is of economic value in neighborhoods with homes priced above $200,000;
out of 10 such neighborhoods built within the last 20 years, 8 have community pools
Houses sold January 2009 to present
SP %
neighborhood pool? # of sales Avg sale price of LP Days on mkt
Willow Oak Yes 10 $236,017 97.91% 57
Dogwood Trace No 18 $235,883 97.85% 52
Wyndham Hills No 4 $223,438 96.07% 73
2006 2007 2008 totals
Neighborhood Pool ? units price units price units price units price % chg 06/08
DOGWOOD TRACE NO 13 $286,555 8 $250,869 10 $250,700 31 $265,780 -7.25%
STONEWALL NO 21 $234,383 13 $255,192 13 $252,038 47 $245,022 4.54%
WELLINGTON NO 26 $187,038 26 $195,575 20 $181,140 72 $188,482 0.77%
WYNDHAM HILLS NO 10 $204,170 7 $186,243 7 $190,513 24 $194,958 -4.51%
WILLOW BEND NO 21 $162,980 29 $158,986 25 $164,722 75 $162,016 -0.59%
91 $215,025 83 $209,373 75 $207,823 249 $210,972
NO POOL % chg in avg price -1.89%
2006 2007 2008 totals
Neighborhood Pool ? units price units price units price units price % chg 06/08
WILLOW OAK YES 11 $223,618 5 $236,880 3 $222,333 19 $226,905 1.47%
COPPERFIELD YES 24 $260,847 26 $250,473 22 $263,165 72 $257,809 -1.16%
FIREBROOK YES 21 $406,280 15 $415,287 31 $431,268 67 $419,858 3.34%
HARRODS HILL YES 13 $262,838 21 $268,138 11 $274,545 45 $268,173 2.03%
HARTLAND YES 26 $249,856 17 $246,229 23 $252,337 66 $249,786 -0.03%
PALOMAR YES 26 $322,365 32 $332,950 18 $323,462 76 $327,082 1.46%
RABBIT RUN YES 7 $220,714 10 $224,080 8 $216,975 25 $220,864 0.07%
WATERFORD YES 15 $267,183 23 $245,625 17 $252,047 55 $253,489 -5.13%
WYNDHAM DOWNS YES 23 $153,572 22 $172,550 12 $177,917 57 $166,022 8.11%
155 $267,957 166 $269,417 142 $273,965 463 $270,323
YES POOL % chg in avg price 0.88%
Final Summary
Ray Ball is giving the park and pond area to LFUCG. We have
no rights under our current covenants in this matter
We believe he intends to give the sinkhole and fence line
common areas to WOHA
He currently intends to include the tennis court area in the park
land donation, although he is open to giving it to WOHA
He has indicated a willingness to give the pool to WOHA
We have identified 3 options for future ownership of the pool
WOHA assumes ownership
Pros Cons
• We retain an important neighborhood amenity • there are significant barriers in our existing covenants and deed
• We avoid a negative impact on property values restrictions
• We can choose to limit membership to Willow • the financial burden of operating the pool may require dues to
Oak residents or open to non-residents in order increase
to lower our dues • If the operation is not viable, the WOHA would face demolition
expenses
Non-profit entity assumes ownership
Pros Cons
• We retain an important neighborhood amenity • Requires interested parties willing to initiate and fund the
• We avoid a negative impact on property values process
• We lose control over this important neighborhood amenity
Return the property to parkland
Pros Cons
• Ray Ball pays demolition expenses • We lose an important neighborhood amenity
• No future financial responsibility on the part of • We incur a negative impact on property values
WOHA
Q&A