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Dear Property Owners & Residents of The Coves,

Johns-Gamewell, LLC, the Coves Mountain River Club developer, acquired the Coves Community Golf Course in 2007.  Prior to the acquisition and for the first year or two after, the golf course was profitable.  In 2009, the operations of the golf course were outsourced to a 3rd party.  Under the agreement to outsource, the operating company was responsible for covering any deficit from operations and had the opportunity to earn any profits.  Over the course of the subsequent 4 years, as the economy was suffering as was the play of golf in the United States, the golf course operations suffered and the operating company let the golf course and golf equipment deteriorate.  When the developer took the operational control of the golf course back, it was in disrepair and operating at a deficit.  Since that time, the developer has invested significant capital into the golf course, human resources and golf equipment and significant improvements have been made.  The golf course is now in better condition than when it was acquired over 10 years ago.  That said, revenue of the golf course has declined each of the 3 previous years and expenses have increased in order to maintain the golf course at a higher level.  The deficit of the golf course was approximately $75,000 in 2016, $125,000 in 2017, will exceed $170,000 in 2018 and is projected to exceed $180,000 in 2019.  The developer has covered the deficit in all years except 2018, when the Coves Property Owner’s Association covered $48,000 of the deficit, with the developer covering the balance.

As discussed in last year’s annual meeting and pursuant to Section 5.1 (a) (vii), the Declaration requires that the Association maintain, “the Community Golf Course and related facilities, including all structures, the golf course, any walking or cart paths, and any landscaping.”  Based on the forecasted deficit, this would require an increase in annual assessments of approximately $515 to each owner at the Coves.  There is already an increase in annual assessments of $250 proposed to cover the balance of the responsibilities of the Association unrelated to the golf course. Together, the increase would be $765.  Pursuant to Section 5.1 (b) of the Declaration, “The Association shall maintain the facilities and equipment within the Area of Common Responsibility in continuous operation, except for any periods necessary, as determined in the sole discretion of the Board, to perform required maintenance or repairs, unless Members holding 67% of Class A votes in the Association and during the Development and Sale Period the Declarant, agree in writing to discontinue such operation”.

Based on feedback received from the Owner Advisory Committee, the developer and the Committee feel it is prudent to allow the Coves Class A Owners the opportunity to state in writing whether each owner wishes to continue operations of the Community Golf Course.  Attached is a link that will allow each owner to submit their response in writing.  If 67% of owners do not state they wish to discontinue the operations of the golf course, the golf course will remain open and the Association will be responsible for its costs. FAILURE TO COMPLETE THE SURVEY INDICATES A PREFERENCE TO FUND THE GOLF COURSE DEFICIT. This will result in a proposed increase of $515 for the annual assessment.  If 67% of owners state they wish to discontinue operations, the developer will have to continue to fund the golf course deficit if it wishes to keep the golf course open.  Currently, the developer does not have plans to shutter golf operations but if the Owners determine the Association will not fund the golf operations, the Developer will be forced to analyze the alternatives and make a decision on how to proceed in the first half of 2019.

It is very important that all owners take the time to submit their opinion in writing through the above form. 

For questions or assistance, email Jacqueline Delk at