E.Neal called meeting to order at 10:15 am with the following in attendance P.Decker, , Bo Spitler, C.Olsen, E.Neal, R.Cosey. Also attending,R.& B. Spitler, R.& J. Dunson, M.Malone, P. Wilkinson, and J.Applegate.
The following were thanked for their help;P.Decker (Cleaning pavilion), P.Wilkinson (mowing beach area), B.Spitler (mowing entrance road frontage)
Treasurers report was read and approved.
R.Spitler read minutes of a meeting with a local lawyer concerning three subjects; (1) RE-Con corporate structure. (2) Those allowed to serve as officers or directors of RE-Con. And (3) The legalities of preventing renting or leasing.See attached below.
With respect to Corporate structure,the board recommended no action until more information of past corporate actions could be investigated.R. Spitler to contact B.Fletcher for his recollections as to what transpired in the past.Also status of Hideaway Association to be investigated.Any information to be highlighted at July 2011 stockholders meeting.
Question was raised “Are lot owners liable for RE-CON actions? “R.Spitler to investigate.
The all roads have been crowned at a cost of $800.Road is better with no potholes, but more dusty.Contractor recommended waiting to add any more gravel until next rain as rain may solve problem.
C.Olsen asked if D.McCluster could be asked to clean his lot with travel trailer. R. Spitler to make request.
R.Spitler's Visit with Lawyer
On 7/12/2010 this writer at his expense consulted with a local lawyer on three subjects; (1) RECON/HideawaysCorporate/Association structure,(2) who can serve as an officer or member of RECON’s Board of Directors,and (3) what can be done about renting.
He stated that RECON and the Hideaway were two entirely separate entities.RECON is the developing corporation and Hideaway is the association of land owners.However, as written in the Restrictions for Hide-Awaysubdivision RECON and its Board of Directors govern the subdivision.This is not illegal only highly unusual.The reasons for this structure are unknown to this writer.He stated that retaining RECON would be negative for any liabilities associated with RECON. The attorney recommended that RECON be dissolved and Hideaway be established as a non-stock corporation owned by all the land owners with By-Laws and Restrictions similar to what exists.A sample set of By-Laws was given to the writer to review and recommend any addition changes that we feel necessary if and when we were to follow his recommendations.The cost for these changes would be ;
$600 to form new Association
$100 State Corporation Commission
$250 Transfer RECON assets to Hideaway
This writer asked the question many would ask, why do anything?His answer was that the longer the structure of RECON/HIDEAWAY remained as is the more difficult any legal challenges in the future would be to resolve.
This writer will investigate further and report any findings at the Labor Day meeting.
On the second item, only those owners registered on the property deed may be officers or board members of the land owners corporation.This is as we have been operating.
On the third item, his opinion was that if the Restrictions were amended to say no leasing or renting that it would be legally binding, however if someone was presently renting that they would be grandfathered.He restated that this was his opinion and may or may not be the opinion of a judge if contested.