Oakmont’s purchase of the community’s centerpiece golf club is advancing, with the signing of a purchase and sale agreement with the Golf Club and of a lease agreement for Advance Golf Partners to operate the golf club.
The presidents of OVA and the Golf Club signed a purchase and sale agreement Nov. 10, and the sale for $3.6 million
plus closing costs has entered escrow. The closing costs include loan, legal and other expenses. The agreement with AGP was signed Nov. 19.
OVA members gave a 73 percent approval on Aug. 8 to raising their dues up to $23 a month to cover purchase of the debt-plagued golf club. Members of the golf club had approved selling to OVA two days before the OVA vote.
Much work was still to be done. During a due diligence period OVA and OGC directors had to iron out details of the sale, OVA needed to negotiate a lease with AGP and work out details of a loan to finance the deal. The existing OVA loan was rolled into a 15-year loan for a lower interest rate. Spreading out the payback over a much longer term helps keep the associated dues increase modest.
It is a complex deal in which OVA is consulting experts in the legal areas involved and has hired a transition specialist to make sure the eventual deal closing is smooth.
The new lesee, 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 and for expensive rebranding.
Oakmont members will have new standing when OVA becomes the owner. It’s expected they will have social memberships allowing food and beverage discounts, free corkage and reduced rates for golfing at what will be Oakmont’s golf courses, all of which will be built into $8.50 per month in dues.
The golf courses occupy a 250-acre swath of green in the center of the community of 3,208 homes. Adding golf to OVA’s menu of sports facilities, now including swimming pools and other venues, fits the purpose stated in Oakmont’s charter of providing recreation for its members.
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; OVA’s interest met the OGC’s desire to continue use of the land for golf.