Jubilee Villa Expansion
How a beautiful Project got stifled
Dec. 2020 Jim Fawcett offers "to fund a 6500 sf multipurpose building. Cost around $1.2M and depositing into an account $600,000 and borrowing the additional funds from community residents, to be paid back, with no interest, upon his passing. Land to be donated to the HOA by developer. Land and Building to be owned by Jubilee HOA upon completion." Nick agrees to consult with attorney.
January 2021-Jim hires architect to draw up plans and hires attorney Larry Guggino to write up a contract (similar to the one used expand the billiard room that he funded in collaboration with the owner, Avalon Jubilee. ) As managing member, Nick agrees and orders and pays for a survey of the land needed including an additional 3500 SF for patio area. Additional parking would be required so the area by the tennis court would be graveled and paid for by the HOA.
January 2021-Enter Tim Thorstensen and Tom Teeter. Tim says the plan will not work and suggests that the additional funds would better be raised through resident donations. Jim agrees. Without a formal agreement Tim and Tom prematurely send out a letter to the community requesting donations and receive several positive responses.
February 2021-A Draft Contract is produced by Guggino stating that a Warranty Deed will transfer both land and its building upon completion of construction. Jim sent me a voice mail saying that was ok with him. Tim reports back that one potential donor requires that “ land must first be donated” before he would consider a contribution, thereby rejecting the attorney’s legal document. Developer was not willing to reject the advise of the attorneys. What if the project was started, but was never completed- or some bills were not paid, or……? The HOA would be in a pickle.
Again, prematurely, before additional discussion with the developer or the attorney or with Jim Fawcett, Tim reported to the community and potential donors that the developer had reneged on his agreement to donate the land. That was completely false. Unfortunately, this was not only premature, but an action by someone who had no business acumen or business experience or consideration for others and it effectively killed the deal.
Then what happened???
I sent the offer below to Jim Fawcett, along with a check for $50,000 to go another route to get this beautiful and generous project accomplished. Tim and Tom were to acknowledge the offer. I don’t know what happened, but the offer was never accepted.
One resident proposed that the HOA could borrow the money to help fund the expansion as there was a shortfall in the fundraising effort, about $400,000. That would impose an additional fee to all residents. It was never presented or entertained by the HOA board for consideration.
Original Letter of Intent:
From the desk of Nick Blea
March 26, 2021
To: Jim and Kathy Fawcett
Letter of Intent
Jim and Kathy Fawcett intend to donate a minimum of $600,000 toward the building of a Multipurpose facility of approximately 6500 SF. Nick and Lynna Blea will donate $100,000.
The proposed turnkey construction may cost over $1,200,000.
Avalon Jubilee, LLC, owner of all common and undeveloped land within the area known as Jubilee, a 55 Plus Adult residential community, will allow the construction of the 6500 SF facility.
The Villa and all improved construction , including the 6500 SF new multipurpose building, will become fully owned when the developer Avalon Jubilee, LLC sells the last residential building lots as outlined and fully described in the Jubilee CCRs and ByLaws.
The final building plans and fixed amenities will be designed by John Kirkpatrick, architect, as approved by Jim Fawcett and Nick Blea, Managing Member of Avalon Jubilee, LLC., Jim Fawcett will pay architects fees.
The 6500 SF Multipurpose building will be built by Jubilee Homes, LLC.
The HOA, from the long range planning reserve account, will pay for costs of parking lot improvements by the archery range to accommodate Village requirements.
Any costs not paid for by Jim and Kathy Fawcett will be borne and paid for by Avalon Jubilee, LLC
Any contributions from residents received prior to July 1, 2021 will be used to pay toward (Chairs, Special stage lighting, Upgraded commercial appliances, landscaping,and..)???
Funds from Donors, $700,000, to be deposited into an Escrow account by April 15, 2021.
Construction to begin no later than July 1, 2021 and be substantially completed by December 20, 2021, provided that final plans and specifications as approved have been completed by architect no later than June 1, 2021. American Institute of Architects contract will be utilized.
Payment for materials, labor and equipment will be paid for from the escrow account set up at New Mexico Bank and Trust. Architect will approve costs to be paid for on a monthly basis. Final payment to contractor will be paid for within 10 days of certificate of occupancy.
Approved as to Intent:April 1, 2021 by
Jim Fawcett Nick Blea
Kathy Fawcett Lynna Blea
President, HOA Nick Blea, Avalon Jubilee, LLC. Manager
Acknowledged by: (initial)
Tim Thorstensen________Tom Teeter_________