sand box 2

Hey everyone,

It’s that time of year again! That’s right, time for the annual meeting.

Annual election time. The 4th annual meeting should be a fun one, with lots to discuss.

It has come to my attention that Phil Jones is no longer an employee of Boyne. I do not know the details of his abrupt departure but I am sure an explanation will be forth coming. As all of you are aware, Phil was appointed to our Board of Directors in 2006 and his seat as a director will be filled. I will provide you with the details as I get them.

In the letter announcing the meeting I noticed some things that should be brought to all owners’ attention.

1st is the number of director position up for election.

The letter states that there are two positions up for election. I will contest this assumption. While there is no question that Steve Rice’s and Dan Aitken’s positions are up for election I venture to propose that the seat held by the developer is also up for election!

Yes, I said it! The developer’s seat is up for election!!! Now Boyne and Steve Kircher will argue different of that I have no doubt.

However let’s review the bylaws and surrounding facts.

According to article 11 section (C)(1)

“the developer shall have the right to designate at least one Director as long as the Developer owns and offers for sale at least 10% of the Units in the condominium or as long as 10% of the Units remain that may be created.”

I will re-emphasize that the developer has to offer for sale the units it holds. It cannot hold them to retain the right to appoint a Director to our Board. According to information provided by Boyne realty, the MLS and tax records, the right, as defined by the exception according to the bylaws, is in question.

The other part of the equation Article XI section (C) (3)

“if the Developer is retaining only 1 directorship it shall be a 2 year term”

According to the Annual state filing there were no changes of directors or officers from 2002 until 2006. The officers and directors of the association were Steve Kircher, Steve Mathews, and Ed Dembeck.

In 2006 we elected to the Board of Directors Dan Aitken and Steve Rice to  two year terms (as provided for in article  11 section (C)(3) per highest number of votes) and Randy Frykberg and Gary Bloodworth to one year terms (both re-elected last year). Phil Jones was appointed by the Developer in 2006 to a two year term.

Since we are voting for seats held by Steve and Dan it calls into question the right of the developer to appoint the seat held by Phil Jones. According to the information provided by Boyne realty tax records and other real estate information collection, Boyne is no longer offering MGL units for sale.

Another issue would be the intangible legal state of the units now offered for sale. If any of the units have been rented or occupied by any guest at any time they are no longer “New” hence the end of the development phase.  (how many people buy a “New” home that has been slightly lived in. If someone has been living in the home it is no longer New).

By renting the units, the developer has created an “implied ownership”.  So regardless of whether or not a unit is for sale by the developer, rental use by the developer would change their intent of ownership to be no different from yours or mine.

While this does not take away any voting right as defined in the bylaws, it does take away the right to appoint a position to the Board. If Boyne wants someone on the Board of Directors, that someone needs to be elected just like any other candidate.

I will formally contest this issue to the Board of Directors and ask that it be resolved prior to the election and all owners notified as to the outcome.

Now for the second issue:

I brought this up a while back about the election of Officers to our Association. Every year the Board must ELECT, (not appoint), officers to run our association. EVERY year these positions are open, yet the Board NEVER announces these positions. The positions open are Vice President Secretary and Treasurer. The Position of President is reserved for a member of the Board per the Bylaws. All of the positions serve at the pleasure of the Board

Please make no mistake these ARE VERY IMPORTANT POSITIONS. Anyone can offer to be a candidate. The Board of Directors may not elect you but at least you offered to volunteer. If the Board makes a bad call by whom they elect, you further your right to challenge them and hold them, the officers they elect and the agents they employ, accountable for their decision and the outcome of those decisions.

By not volunteering to be in these positions, you limit your ability to effect change and development of your Association and investment.

If you are not happy or satisfied then volunteer, our association needs you.

I know many are concerned about the time and distance meeting issues.

Do not be.  Present has been legally defined as a conference call or web conference for many years. If you can operate a phone or computer then you can be present too.

Will volunteering take time and energy? Yes. Anything worth doing does and anything not worth doing is never productive. Therefore, without time and energy, this Association will never be productive nor the investment we have made.

If you are satisfied and think all is in good health, then you probably are not a member of this group or care for my opinions ideas or commentary.

The last time I checked the Owners of this association are highly educated and successful individuals who rival any of the Boyne employees elected to run our Association.

The MGL Association is YOUR COMPANY, ITS YOUR INVESTMENT, ITS YOUR FUTURE; if you do not like It CHANGE IT.

I will be running for the Board of Directors and I hope to see you at the annual meeting!

Regards,

Robert

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Robert,

Excellent point about the developer's board position, do we know how this was handled in any of the other associations at Boyne that have been around longer than the MGL? Such as the Disciples Village, of the Inn at Bay Harbor?

Thanks,

Folks:

When the Master Deed was first recorded (prior to the start of construction) Boyne Properties, Inc. was named in the Master Deed as the Developer, but in 2003 prior to the sale of any units title of all units was conveyed to the Mountain Grand lodge and Spa, LLC (MGL&S. The Michigan Condominium Act (section 135) automatically makes MGL&S a successor Developer. Also, the second amendment to the master deed recorded in 2003 stated that MGL&S was assuming the role of Developer for the project. Then all sales of units were by MGL&S to the new co-owners. MGL&S is the Developer and still owns enough units to have a representative on the board. We have selected Cindy Johnson as the Developer Board representative. Cindy's financial background will be a good resource to the Board in helping control costs and grow occupancy for the MGL&S.

All of the residential units held by the Developer are for sale. In consideration of co-owners in the MGL&S that have their unit up for sale the Developer has withheld aggressive marketing and advertising of Developer owned residential units.  To advertise all Developer residential units for sale would bring the number of units for sale in the project to number that would diminish the values of project as a whole.

I assure all co-owners that we are doing our best each and every day to run the MGL&S facility as efficiently as possible. We don't mind being held accountable and are always open and appreciative of comments and suggestions from co-owners on how we can continue to improve.

Ed Grice

General Manager

Boyne Mountain Resort

231.549.6071 phone

231.549.6827 fax

231.675.6141 cell phone

egrice@boyne.com