- Call the Meeting to Order
The Keystone Neighbourhood Company Semi-Annual Member’s
Meeting was called to order by Mr. Peter Benson on Friday, July 2,
1999 in the Ten Mile Room of the Keystone Lodge.
Board Members Present Were:
Peter Benson, President
John Rutter, Vice-President
Jon Simisky, Treasurer
Dave Kleinkopf, Secretary
Doug Sims, Ski Tip Residential Director
Mark Mathews, At large Commercial Director
Don McCoy, River Run Commercial Director
Homeowners Present Were:
For a list of the Homeowners, please contact the KNC
Others Present Were:
Katy Syko, Executive Director
Heidi Stenhammer, Office Manager
Nathan Mosley, Operations Manager
Jeff Steele, Senior Property Manager
Chris Love, Property Manager
Jerry McMahan, McMahan and Associates
- Approve Previous Meeting Minutes
Mr. Rutter made a motion to approve the previous meeting minutes
dated November 20, 1998. The motion was seconded and carried. There
was one descending vote.
- President’s Report
Mr. Benson reported that KNC membership is growing at approximately
150 members per year. It is the Keystone Neighbourhood Company’s
mission to make the Neighbourhoods at Keystone the premier mountain
community in Summit County by maintaining a high quality environment
and investing in facilities and events that will attract visitors
and create a vibrant, four-season community. This mission is achieved
through high quality common area maintenance, implementation of special
events and the eventual construction of community facilities.
Mr. Benson reported that KNC goals for 1999 include facilities
research to prepare for the eventual construction of community buildings.
He noted that new owners receive a questionnaire in the New Member
Welcome Package which includes a question pertaining to future facilities
and most of them fill out this questionnaire and send it back to the
KNC. The most popular facilities remain a chapel, performing arts
theater, recreation center and on-mountain amphitheater.
The KNC is operating on a lean budget for 1999 due to the
low number of unit closing resulting in lower Real Estate Transfer
Assessments than collected in earlier years. Eventually, once the
master plan is complete, the Sales Assessment and the Annual Real
Estate Assessment will take over as the main funding mechanism for
the KNC. Until then, operating expenses are covered in large part
by the Real Estate Transfer Assessment.
Infrastructure development of the new Jones Gulch or Ski Tip
South subdivision is underway including bridges, roads and utilities.
This area will be developed with single family homes and multi family
homes regardless of the outcome of the ski area expansion review by
the US Forest Service.
- Vice-President’s Report
Mr. Rutter reported that Keystone Resort was one of only four
areas in Colorado that had an increase in skier visits over the previous
ski season. The other three ski areas were Breckenridge, Arapahoe
Basin and Telluride. The resort had approximately 200,000 room nights
last season which was also an increase from 1998/1999. These increases
were attributable in large part to capital improvements including
the tubing hill on the top of Keystone Mountain, additional snow making,
more groomed runs and the replacement of the Santiago lift with a
high-speed quad.
Ongoing summer improvements include the completion of the
new River Course which will be the second golf course at Keystone
and the expansion of the conference center to include an exhibit hall.
Unlike the skier market, conference business is growing at a rate
of 6 to 10% annually. Keystone is considering utilizing the retail
spaces in Expedition Station as conference space which is desperately
needed in River Run.
Mr. Rutter was asked how the resort plans to fill the constantly
increasing bed base in a flat skier market. He responded that that
is the number one task for upper management at the resort. The conference
center expansion will help fill the increasing bed base as well as
additional capital improvements.
- Executive Director’s Report
Mrs. Syko reported that attendance at this meeting is the
largest it’s ever been for a KNC meeting and she thanked everyone
for attending. For the benefit of the new members she reviewed the
function of the KNC and described the specific areas the KNC maintains
which include exterior common areas at River Run, Ski Tip and Trappers
Crossing.
Special Events
The KNC currently produces three major events including the
Celtic Festival held in June, the Bluegrass and Beer Festival held
in August and the Wine, Jazz and Sculpture festival held in September.
The KNC will also attempt to add an additional festival sometime during
the month of July to round out the summer. Other, smaller events taking
place this summer include the Snake River Mountain Bike Challenge,
the Mountain Arts Gathering and the Colorado Grand.
All events are marketed through the resort by placing festival
specific tag-lines on lodging ads in print, through radio promotions
and the local newspaper and resort television channel. Sponsorships
have helped gain exposure of the festivals in River Run and increased
funding for events. Each festival has a charity beneficiary which
ads credibility to the festival.
Paid Concerts
The KNC has a contract with Avalanche Productions whereby
they would produce a "big-name" musician to play a major pay concert
in the Montezuma Free Parking Lot. Avalanche has had a difficult time
securing an act due to the lack of a significant venue that has adequate
seating and parking. They continue to work on our behalf to draw talent
to River Run.
Design Review Board
Members of the DRB include John Rutter, Peter Benson and Mark
Johnson. DRB advisors include Ken O’Bryan and Gene Baker. These
people meet regularly to review major projects such as Red Hawk and
the Grand Lodge and also review minor requests such as deck or patio
expansions, patio furniture, window treatments and other miscellaneous
design elements in the Neighbourhoods at Keystone.
Mrs. Syko noted that any owners at Ski Tip and Trappers Crossing
who have not yet submitted an application for approval of patio/deck
furniture should do so as soon as possible.
To date, the DRB has reviewed thirteen minor applications
and five major applications. The DRB has also hired an administrator
to help facilitate the review of major applications. This administrator
logs all building plans, facilitates the meetings and reviews the
buildings upon the completion of construction to ensure DRB conformity.
- Treasurer’s Report
1998 Audit
Mr. McMahan, of McMahan and Associates, presented the 1998
audit of KNC financial records. He reported that the KNC has earned
a clean, unqualified opinion which is the highest opinion an auditor
can offer. The KNC had excellent internal controls and record keeping.
Financial resources almost doubled from 1997 to 1998 which was a result
of increased Real Estate Transfer Assessments and fewer expenses than
anticipated.
The KNC has three reserve funds including Community Facilities,
Community Improvements, and Community Capital Reserve. Ten percent
of the Annual Real Estate Assessment is allocated to the Community
Facilities fund as required by the KNC documents. Eventually the Community
Facilities fund will have enough money to commence the construction
of a community facility.
Mr. McMahan has recommended that two resolutions be adopted
by the membership at today’s meeting which are attached to these
minutes as appendix A & B. Mr. Barrows raised the issue as to
whether proper notice of the meeting was given. Mr. Kleinkopf responded
that he believed proper notice had been given.
A motion was made to adopt the first resolution regarding
capital contribution as noted in Appendix A attached to these minutes.
The motion was seconded and carried. A motion was made to adopt the
second resolution regarding the application of excess revenues towards
the subsequent year’s expenditures as noted in Appendix B attached
to these minutes. The motion was seconded and carried. Both of the
above motions had one descending vote.
Mr. Barrows noted three financial concerns he has regarding
the KNC and requested they be investigated. Those concerns are 1)
upon the transfer of ownership between Ralcorp and Vail Resorts, Real
Estate Transfer Assessments were never paid by Vail Resorts for the
unsold units at River Run, Ski Tip and Trappers Crossing, 2) Keystone
Real Estate Developments (KRED) does not pay ½ % sales assessments
on commercial rentals and 3) the same legal firm that represents the
developer represents the KNC.
Mr. Benson responded to concern number 1 by stating that the
transfer did not relate to Keystone/Intrawest LLC partnership that
is the owner of the unsold units and did not result in a change of
title. He commented to concern number 2 by noting that KRED is the
owner of the commercial space and that these spaces are rented long-term
(more than 30 days) and therefore are not subject to the ½ %
Sales Assessment. Finally, regarding concern number 3, Mr. Benson
commented that a different person at the legal firm represents KRED
than the person that represents the KNC however this issue will be
further investigated to determine a potential conflict of interest.
Mrs. Syko noted that, during the initial stages of the KNC,
it was more cost effective to stay with the same legal firm as the
developer because they wrote the KNC Documents. It would have cost
a significant amount of money to hire a different firm who would have
to spend a lot of time educating themselves about the KNC.
Mr. Barrows made a motion that the KNC hire an independent
law firm devoid of KRED and Vail Resorts and that law firm should
determine if Vail should be responsible for paying the 2% Real Estate
Transfer Assessment upon the sale of property from Ralcorp to Vail.
Currently, the developer holds the majority of KNC votes and Mr. Benson
and Mr. Rutter voted against the motion stating that they will research
those concerns and report their findings at the next Members meeting
in November.
Mr. Sims, Homeowner at Ski Tip and Member of the KNC Executive
Board, stated that he agrees with the above course of action and assured
all present that any concerns brought to light by the Members are
seriously discussed at Board meetings. He noted that all Board members
genuinely have the Members best interests in mind when making decisions
and are considering adding another Homeowner to the Board. The developer
does not plan to control the KNC forever and will eventually turn
the Board over to the Homeowners however at this time it is in their
best interest to retain control of the KNC because of the immense
investment they have in the River Run and Ski Tip Neighbourhoods.
1999 Year-to-Date
As of May 31, 1999 income was $230,555 or 98% of the budgeted
amount, expenses were $491,784 or 97% of the budgeted amount and net
income was negative $261,229 or 99% of the budgeted amount.
- Community Improvements and Facilities Committee Report
Underway/Completed Improvements
Mr. Mathews reported that Miner’s Park is finally finished
and will be officially dedicated at the Culpepper and Merriweather
circus to be held in River Run on July 8, 1999. Dercum Square is being
temporarily upgraded with a mini-golf course and a skating rink. These
amenities will remain in this area for approximately three years or
until enough funds are raised to construct a community building.
A River Run sign program is currently underway which will
include street signs on each street in River Run to help guests find
their way around the village.
Upcoming Improvements
The fire pit will be converted to gas this summer to alleviate
the problem of smoke entering the buildings. Buck and rail fence will
be installed along Montezuma road in front of Ski Tip Ranch and street
lighting will also be added to that area. The Trappers Crossing sign
will be illuminated.
Annual Improvements
Annual improvements include holiday decorations, bollards
which prevent unauthorized vehicles from driving in River Run, bike
racks and ski leaners.
Facilities Research
Four major types of facilities are currently being researched
and they include a chapel, performing arts center, recreation center
and an on-mountain amphitheater.
Mrs. Syko noted that she is researching the possibility of
creating another non-profit organization to act as a fund raising
entity to help pay for facilities that would benefit Summit County
and not just KNC Members. Until then, when considering potential facilities,
the Board keeps in mind the various issues that pertain to commercial
facilities, facilities that benefit KNC Members only and types of
facilities that benefit the entire county.
- General Discussion
Future Board Position
Mr. Benson noted that a Board position may become available
in the near future and the Board would like to see that position filled
by a homeowner preferably in River Run or Trappers Crossing since
there is already representation on the Board from Ski Tip. Any homeowners
interested in serving on the Executive Board should submit their interest
in writing to the KNC office by mail, fax or email. It was noted that
since the KNC is still declarant controlled, Board seats are appointed
by the Developer and not voted on by the Members.
Five Year Projection
It was requested that the Board have a five-year projection
prepared and ready for review at the next Members meeting. This will
give the Members a better idea of the immediate future of the KNC
and will help in the planning and implementation of future facilities.
Retail Update
Mr. Mathews reported that he is in the process of finding
new and unique retailers to join River Run in the fall. Recent merchants
additions include Starbucks, Paisano’s, Johnny’s, Gorsuch,
Brighton, Mary’s Mountain Cookies and Telemark Communications.
He noted that 80% of River Run Merchant’s revenue is
earned from November through April and it is difficult to get a new
merchant to open a new business in the summer months.
He was excited to report that Don McCoy, owner of Rockin R
Ranch and Shirtz, will be moving Rockin R across the path to the empty
retail space next to Polar Revolution. This will give that shop enough
space to expand their merchandise to offer grocery items including
a refrigerator/freezer section including milk, eggs and ice cream.
This is a much needed and long awaited addition to River Run.
Teleconference
Included in the notice for the next Member’s meeting
will be an invitation for those people who cannot attend the meeting
in person to attend via telecom. This will be a test run to determine
the effectiveness and benefits of having Members who couldn’t
otherwise be at the meeting join via telephone.
- Confirm Next Meeting Date
Annual Meeting
The next Member’s meeting is scheduled for Friday, November
19, 1999 at 4:00 p.m. A discussion ensued regarding the fact that
this meeting is held the weekend prior to the Thanksgiving holiday.
Mrs. Syko noted that this weekend was selected because most Members
rent their units and the Thanksgiving weekend is the one big weekend
in November for rental revenue. Mrs. Syko asked for a show of hands
of all present at the meeting regarding preference for the weekend
prior to Thanksgiving or the weekend of Thanksgiving and an overwhelming
majority endorsed the weekend prior to Thanksgiving as a good time
to hold the annual Member’s meeting.
Members Party
In appreciation of KNC Members and as an incentive to draw
greater attendance at KNC meetings, a Member’s Party is held
the day after the Annual Member’s
- Confirm Next Meeting Date
Meeting. This party will be held on Saturday, November 20,
1999 at approximately 6:00 p.m. More details will follow with the
meeting notice to be mailed early in November.
A discussion ensued regarding the fact that Member’s
money is being used to pay for the cost of this party and the unfairness
that arises when all Members are not able to attend the function.
It was determined that regardless of the date selected that there
would never be 100% attendance at any KNC function.
- Adjournment
The meeting was adjourned at 6:40 p.m.