The POA Board announces settlement of the Black Hole lawsuit that has been costing us all ongoing legal fees.
Black Hole was an entity created in early 2015 as a result of legal advice from the POA’s previous attorney. Lots had been accepted by the POA (which is no longer permitted) for resale. Lots in Sections 1-19 were all sold, but the POA had been unable to sell the dozen lots in Sections 20-25. Mr. Schnaare suggested creation of Black Hole to house the unsold lots and separate the Raintree POA from payment of taxes and Club membership dues. The Country Club sued the POA for unpaid membership dues for the lots in 20-25.
Based on unsuccessful efforts to rebuff the lawsuit through the court system, the Board has settled with the Country Club and paid the membership dues to date as well as the related legal expenses.
There is no emergency fund for this purpose. General funds were used, and services may be impacted as necessary to put this growing liability behind us.
Legal Settlement (Black Hole)