Being Sued?


We certainly hope not! However, for the third time in a year, residents of Magnolia Point are raising funds to pay for legal advice in response to consequences of the Association Board of Directors’ actions. The most recent is the ‘Demand Letter’ sent by three residents to the Board in reference to the Use Agreement with the club; that letter is shown below. These residents are well aware of the anxiety their actions may cause for some, and ask that as your neighbors and friends, you take their word that they have deliberated long and hard before taking this approach, and have not done so lightly.

We’re sure the other ‘cases’ have their merits, but here’s one point in which this group of Magnolia Residents is sure theirs is different: the enclosed letter aside, our own Association lawyer has already concluded that the club is in violation of the Use Agreement. And on more than one, but several items. Still, the Board insists on ‘negotiating’ what many are concerned are terms that will be more favorable to the club than the community, and have not, aside from one Board member’s casual comment, given any firm indication that we as a community will even be able to approve the ‘new’ agreement, one that will be no less illegal when recast, in whatever form!

Flipbook Version (NOTE – for easier reading, click on the (four arrows) ‘fullscreen’ icon at the bottom of the viewing window, then ‘+’ to make even larger):




– From the Signatories of the Demand Letter

What are you doing and why now?

I answer this question as one who has supported the Club as a full golf member for about 13 years. I play golf at Magnolia Point about 4 times each week. I still pay $450 per month plus purchases, and our household has contributed about $5,500 as our share of the stipend to MPI. Though the poor condition of the golf course and the gross non-compliance with contract terms by MPI is important, that is all but irrelevant to the real issue. There are two major issues and money, though millions of dollars, is not one of the primary elements in dispute.

1.    In accordance with Florida State Statute 720, we homeowners never voted for the current use agreement. This cannot be fixed by reducing the amount we give to MPI (the Club). Only a vote by us (the homeowners) will fix this once and for all.

2.    The current Agreement/Contract is a “forever” agreement. “Forever” is simply not reasonable by any standard.

This cannot be fixed by reducing the amount that we voters pay the Club. The only way to fix this is for the MPCA Board of Directors or a group of citizens to challenge the validity of a contract that was only approved by Dream Finders (the Developer of 12% of MP) and was not approved by those who pay the bills. A new contract that is voted upon by those who pay the bills? Who can argue with letting the people speak? Isn’t the real question “why are a group of about 20 citizens (so far) footing the legal bill to clarify what the Board should be eager to put to bed? As a former Board member for six years, I am certain that the members of the Board know there is little to no solid legal footing to support the validity of this Contract.

Joe Chao • January 16, 2024

The letter was not sent because of a shortage in reserves or the issues related to the budget, as some have suggested. After pleading our case to the Board many, many times, in many forums and venues over the course of more than a year, and waiting for them to take definitive action to correct a wrong instituted by prior Developers and Boards, and seeing no such action taken, the decision was made to bring this to a head. The monies required for litigation, if the Board chooses to take it that far, pale in comparison to the millions the community has already been forced to pay and could be forced to continue to pay through an invalid agreement that owners never approved. If you have read the letter, then you know there are several valid points made in it. Those who read the demand letter have seen that there are several valid points that are fact based. Board inaction, such as trying to extend an invalid agreement with a non-compliant private entity for 6 months to a year, rather than address the issue head-on, is one of the many reasons why I am running for the Board. This can has been kicked down the road for far too long.

Now, my question to you – how does asking the Board to adhere to their responsibilities ruin a great neighborhood? If anything, it makes it better, because owners then know that the Board is acting in their best interests. And as an owner myself, I’m wondering why everyone is learning about this from you and Justin, rather than our own Board members.

 – Ann Sims • January 16, 2024