Bridges of Rivermist Homeowners’ Association
Open Board Meeting-Monday, April, 1 2013
Minutes
I. Call to Order
Evangelical Free Church of Sycamore/DeKalb
7:00p.m.
II. Roll Call: Fred Radloff, Brian Borgardt, Marshall Dirks, Alexandra Dailey, Scot Spier, Jeff
Thunder, Dan Steimel and Dan Pavelich. (There were 21 households represented including the
board.)
III. Reports
Approval of December 3, 2012 Open Board Meeting Minutes
Fred Radloff motioned to approve, Scot Spier seconded. All ayes.
Approval of Financials ending December 31, 2012
Fred Radloff motioned to approve financials, Brian Borgardt seconded. All ayes.
Treasurer’s Report – Special Accounts Receivable Presentation
Marshall Dirks and Dan Pavelich provided those in attendance with detailed information
as to the state of our accounts receivables and the steps that have been taken to collect
assessments. When a property owner is 30 days late a letter is sent out as a reminder. If a
second quarter is late a demand letter is sent by our attorney. The property manager and
the board with the legal advice of our attorney make every effort to collect assessments
and work with the property owners. If these communications are ignored a lien is placed
on property and finally as in the case with RiverMist Unit 5, LLC court action taken.
As of a March 28, 2013 report provided by Dan Pavelich the total owed by all property
owners was $153,164.62. This 37% shortfall in collected revenue/income has required the
board to revisit the 2013 budget and modify to allow for us to continue operating to the
best of our ability. The “Rill Project” will be put on hold until funds are available.
Our HOA attorney, Tait Lundgren explained that an Agreed Judgment in the amount of
$133,000 has been recorded on property owned by RiverMist Unit 5, LLC (Phase 5
which is 85 unplotted lots and 22 additional buildable lots) where John Pappas is the
managing partner. The judge agrees that the money is owed. Mr. Pappas does not deny
that he owes the money. On May 1, 2013 the 30 day waiting period will end and
RiverMist Unit 5, LLC cannot appeal or move to vacate and go to trial. At that time the
HOA will need to decide how to proceed with the collection of this judgment. Attorney
Lundgren informed us that there is a difference in winning and collecting. This judgment
affects only amounts owed up to and including the April 1, 2013 installment. This
ownership of 107 lots represents 71% of our total receivables.
The judgment will put a cloud on title which will need to be cleared before any real estate
transaction can go forward.
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HOA members wanting a copy of the presentation or to review financials can request
them in writing.
Open Forum:
Brad S- Who is contact for HOA? RM Unit 5, LLC, managing partner John Pappas. Taxes
paid by Papas R.E.
Steve Reid- How strong is our legal position? Is the property mortgaged? Last May (Dan)
lots were paid current. The agreement regarding Phase 5 not fulfilled and after June of
2012 no communication. The property has a lien dated 2011 in the amount of $600,000.
Can the LLC go bankrupt? Unless totally broke not likely. Purchased in 2008 for
$1,032,000.
Miller- Can he sell or build on these lots? If he needs a loan to build he will not be able to
get funds from a bank. How can lots and vacant land be owned together? They are titled
to the LLC. Is the LLC set up correctly? Yes. What would happen if media and/or
realtors were aware? It affects property values? There are 2 or 3 upscale areas in DeKalb.
Not sure if media coverage would help. Is there money to cut trees? No.
Ralph- Comment: A buyer would not have clean title. The HOA may work with him if he
would be selling. Could we (HOA) end up owning lots? Who would pay assessments?
Yes we could and we would pay to ourselves.
Brad S - Comment: Property listed for sale at $2.5 million.
Gail- Is it part of our RM declarations? Yes. If you want to see where the lots are located.
check our website.
Steve Reid- Comment: It is a business decision since there is no money in residential
development. He is putting money in commercial. The property is tied up and he will be
charged 9% per year. We would have to be paid once residential development recovers
and he wants to develop lots.
Brian- Is it a forced judgment? On our behalf, attorney filed discovery. It is an agreed
judgment and he knows he owes the money.
Gary- Comment: If we cannot maintain our subdivision all of our houses are less
desirable. The board is aware of the consequences and spending cuts carefully evaluated.
Approval of Amended 2013 Budget:
$15,000 cut from budget. (Copy of modified budget has been sent to all property owners).
After review of modified budget and answering questions regarding the items cut Marshall
moved that we approve the amended budget, Scot seconded. All ayes.
Approval of MB contract for 2013:
Contract for 2013 treatment of ponds discussed. This year we will try some micro
biological in a test pond to determine if it is beneficial in eliminating the buildup of
sediment. Scot moved we approve the MB contract, Marshall seconded. All ayes.
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Four ponds are in the need of aerators but at this time there are no additional funds
available.
IV. Adjournment
Marshall motioned to end meeting, Scot seconded.
Alexandra Dailey
Bridges of Rivermist, HOA Secretary
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