OVA inks deal with Oakmont Golf Club
Oakmont is moving swiftly now to acquire the golf facilities that have been the center of the community since it was founded more than 50 years ago.
Oakmont Village Association (OVA) President Steve Spanier said he and Oakmont Golf Club (OGC) President Gary Smith signed a purchase and sale agreement Nov. 10 and the $3.6 million deal has entered escrow with final closing costs still to be determined. The OVA is consulting experts in the legal areas involved in the complex deal and has hired a transition specialist to make sure the eventual closing is smooth.
Spanier said a separate lease agreement was signed Nov. 19 with Advance Golf Partners (AGP) to take over operations of the two golf courses, clubhouse and restaurant facilities.
Oakmont’s board has scheduled a town hall meeting on the golf sale on Dec. 3 at 10 a.m. in the Berger Center.
On Nov. 13, the board approved a 2020 budget of $5.57 million that is based on member dues of $98 per month and covers increases in net operating expenses and fund transfers for the coming year.
OVA voters on Aug. 8 gave overwhelming approval to a measure seeking to raise their dues by up to $23 a month, to $98, to cover the purchase of the debt-plagued golf club. The size of the proposed dues increase triggered the special homeowner vote because it exceeded 20 percent.
As it turned out, golf costs were less than original projections. Elke Strunka, OVA board treasurer, said the ability to consolidate loans and take advantage of current lower interest rates significantly dropped members’ net cost for loan repayment to $4.50 per month, down from the anticipated $7. A budget category called “golf social membership,” a separate line item, was reduced from the forecasted $10 to $8.50 per month.
But golf was not the only new element on the budget table. The recent PG&E power shutdowns underscored the need for larger allocations to safety and fire prevention, including obtaining a generator that could power most of Oakmont’s central area facilities, Strunka said. Also included in the budget are funds that may be needed in addition to outside grants for solar infrastructure to support OVA buildings as well as other commercial properties. The budget also includes a 27 percent increase for ground repairs and maintenance to do more fire abatement and prevention work.
Once the golf sale is complete, AGP will be overseeing the two 18-hole golf courses, the Quail Inn, and east and west course clubhouses. Plans call for eventually updating the Quail Inn and other facilities. Oakmont members will have “social memberships” allowing food and beverage discounts, free restaurant corkage and reduced rates for golfing at what will be Oakmont’s golf courses.
Faced with a growing deficit, the OGC decided early this year to sell, and listed its property with a broker. Several interested parties had plans to develop the property, but OVA’s interest met the OGC’s desire to continue to use of the land for golf. Club members voted overwhelmingly to approve the sale to OVA on Aug. 6.