February 2017 — The new Balsam Mountain Club will be a North Carolina, not-for-profit corporation with member ownership. It will be governed by a Board of Directors initially made up of representatives of the current Club owner and property owners. The current Club owner, BMP Operating LLC, will absorb the Club’s operating deficits for the next 5 years, or the sale of 225 Equity memberships, whichever is sooner. Major decisions during this period—including approval of the annual budget and setting of annual dues—will require a majority of the directors’ approval.
Funds from the equity subscription, along with contributions from the current Club owner, will be used to develop Club amenities that will put Balsam Mountain at the forefront of private communities in North Carolina. These amenities are described more fully below.
Very importantly, property owners who subscribe during the initial offering period will have their membership initiations escrowed until the first phase of amenities are completed —thereby ensuring that they are protected and that promised amenities will become realities.
Memberships can be used by family members and guests, are inheritable, transferable to subsequent purchasers of properties through the Club, and allow renters to use the Club facilities. Property owners who are currently interim members and who subscribe this spring during the initial offering period will be entitled to receive 50% of the current initiation fee being charged at time of registration back when they resign from the Club and their membership is reassigned. Property owners who are not currently interim members, who subscribe during the initial offering period, will receive 25% of the current initiation fee being charged at time of registration back upon reissuance.
Membership dues are the revenue that will allow the Club to operate and provide the services that Balsam Mountain residents expect. To ensure the Club’s long term operation, therefore, future property owners will need to be dues-paying members so that the Club has the assured revenue to operate. Clubs without mandatory membership have historically failed, and taken property values down with them. The subscription documents that property owners will receive allow current members to choose from two ways to ensure this happens: they can voluntarily place a “Recreational Covenant” on their land that is legally recorded and requires whomever eventually purchases their home or homesite to become a member. Alternatively, current property owners can opt not to sign the Covenant, but when they re-sell their property, their buyer will need to pay both the current initiation fee and a substantial eligibility fee. The eligibility fee will be paid to the Club and used for capital improvements. Ken Bowdon, who is leading the redevelopment of Balsam Mountain, is signing the Covenant for the properties he owns.
Property owners will be presented with final documents in March and will have 45-days to review and subscribe. Those who subscribe within the offering period will be able to take advantage of limited time, introductory membership pricing and receive 50% of the current initiation fee being charged at time of registration back upon reissuance of their membership. Those who subscribe outside the offering period will pay a higher initiation fee. Those who don’t join at all will, regrettably, be unable to enjoy use of the Wellness Center, the Golf Course, Dining and all other Club facilities and services.