FAIRWAY VILLAGE PURCHASE
Bob Crane #720 has compiled these records and recollections
regarding purchase of Fairway Village by the residents
Prior to 1975
130 acres of rural land along Belcher Road was developed by William Jacobsen to facilitate the sale of Jacobsen Mobile Homes.
In 1976 eighteen investors incorporated as Pacific Environmental Properties, Inc. They invested $25,000 each, putting $200,000 down to purchase what is now Fairway Village.
At the time of sale:
Value of the land $1,564,920
Utilities & streets $3,300,000
Golf course value $201,480
Personal Property $50,000
For a total purchase price of $5,216,400..
Note: Original sale referred to 130 total acres. Today Fairway Village consists of 125 acres. It might be interesting to research the title insurance records regarding the description of the property adjacent to Belcher Road.
The contract stated principal balance payable, in specified increments, to be retired January 1991. The agreement required the purchaser to operate and maintain the property along with other covenants regarding mobile home spaces during the term of the notes.
The total cash investment of the original investors was $450,000. However, the estimated investment of all residents in their homes was about $13 million at that time.
……………………………………………………………………………
1984 (the pivotal year)
Residents were advised that the park would most likely be sold in 1984. Lot rentals that were as little as $45 per month in 1973-74 were at $175 and estimated to go as high as $400 by 1990..
In addition, many residents were convinced at the outset that purchase of the park was a viable investment.
Residents were advised that they had two choices.
- RESIDENTS PURCHASE PARK and CONTROL COSTS.
- OUTSIDERS PURCHASE PARK and RESIDENTS HAVE LITTLE OR NO CONTROL OF COSTS.
In 1984, events started happening quickly, making it difficult to recount them in chronological order.
The lawyer recommended that we incorporate immediately. A fee of $5 was requested from each resident to cover the cost of incorporating and other expenses.
The committee recommended selling shares for financing the park purchase.
In October 1984 the ad hoc committee gave $2000 to hold an offer contingent upon residents’ approval and financing.
For those unwilling or unable to purchase a share, Herb Hannon created several charts that detailed various plans of regular payments.
Details of the plans were quite extensive. For example, share loans offered were of 15-, 20-, and 30-year duration. Each loan was computed at 9% interest, plus $4.76 taxes and maintenance. Each share loan was extended with their regular maintenance cost, which at that time was $39 per month, to reduce the balance of their loan to zero at the end of the plan.
A 6-months' campaign raised the $4.5 million down payment, with progress reported on a thermometer chart by our directory
The original shares cost each lot resident $16,919
1977 (the Ad Hoc Committee forms)
Some of the residents of Fairway Village became interested in purchasing the park. We had a residents' association, which was beholden to the park owners and had little power or control.
As soon as word got around the association that there was consideration of PARK PURCHASE! the rumors started flying. Meetings were long and usually very heated. In my recollection, most of the heat was taken by John (the boss) Stecher, Mel (bull dog) Harmes, Herb (numbers) Hannon, and Gen (cut copy paste) Rogers. The nicknames are due to respect for their efforts and dedication. And that was only the beginning!
In 1977, an ad hoc committee was formed consisting of:
John Stecher, President,
Mel Harmes, Vice President
Gen Rogers, Secretary
Stan Spamer, Treasurer
Herb Hannon, Finance
and others.
It must be said, however, that John Stecher was the ramrod of the effort.
Our First Board of Directors
(clockwise) unknown, Bob Olsen, Clyde White, Sam Whittlesey, John Stecher, Mel Harmes, Gen Rogers, unknown, Herb Hannon
Meetings were held during the period from 1977 thru 1979. At that time the park was assessed at $6,300,000
The Ad Hoc committee searched for other communities that had attempted to become resident owned. They visited officers of approximately ten parks, the plan being to combine the best ideas of each of them.
They learned about what was needed in order to have an organization in place that had the capability and the authority to negotiate a deal involving millions of dollars when the opportunity came about. They found a lawyer to help them, which was John Stecher’s stepson.
Park resident, and then Largo City Mayor, George Mc Gough, was very helpful to the exploratory group. He advised them regarding future plans for the city, protection of mobile home owners, limitations of mobile homes, zoning, restrictions, etc., all very helpful information. Yes, George was the husband of our very own Marion McGough!
The decision was made to form a corporate entity to facilitate future negotiations. This action would require the approval of a majority of the village residents.
Fortunately the president of the residents' association during that period was a former United States Army colonel named Clyde White.
Under his direction, numerous association meetings were held in which residents were free to ask questions and express their concerns (fears) about the price of a share, etc. Other questions were addressed about share price, property taxes, share prices, and purchase or sale of shares.
In 1984, our Fairway Village looked like this from the air.
(Note the undeveloped land to the north and west.)
Following is an account of negotations with Florida Leisure Communities on the actual purchase:
August 2, 1984
Florida Leisure Communities advised us they had an offer to sell six parks, our park included at $14 million..
August 14, 1984
We offered $10 million, contingent upon approval of residents and financing.Offer was refused.
September 7, 1984
We sent a letter to Florida Leisure Communities threatening a lawsuit if they failed to negotiate.
September 14, 1984
We received a counter-lawsuit threat from Florida Leisure lawyers.
October 5, 1984
Florida Leisure advised us their sale fell through, that Fairway Village was for sale and to make an offer. They also had a second package deal with our park at $ 12.867 million.
October 10, 1984
We offered Florida Leisure $11 million. Offer refused. Last and final offer from Florida Leisure$ 12.325 million. We advised we would call after consultation with residents.
October 15-16,1984
We paid $2,000 to hold offer, contingent upon residents' approval and financing. A special meeting was held October 16,1984, including a ballot for residents to choose to buy or not to buy. The result of the balloting was 294 yes, 63 no, and 8 undecided.
Cash price for the park, $12,325,000.
Down payment required of $4,060,000.
Balance early in 1985… $8,265,000
The committee recommended selling shares for financing the park purchase. Each resident set a schedule up whereby he/she could visit the office and pledge $16,919, the initial price of the share.
Within the week, share pledges exceeded the cost of the down payment. And with pledges in hand, the committee was able to close the deal.
November and December 1984
For those unwilling or unable to purchase a share outright, Herb Hannon created several charts which detailed various plans of regular payments. Details of the plans were quite extensive. For example, offered were plans of 15-, 20-, and 30- year duration. Each plan was extended with an overall cost per month
Actual financing (borrowing the balance), took a lot of interesting twists and turns. Managing the payoff of the mortgage, income, income from investments, and expenses of the fledgling corporation over the next six years or so is another story.
Suffice it to say that John Stecher lived long enough to see the mortgage paid off in 1994) on what he called his "Little Bit of Heaven,” possibly his last major goal in life.
The red thermometer is replaced
with a happy announcement:
"It is OURS as of
Dec. 26, 1984, at 2:30 pm."
December 26, 1984
Ad Hoc Committee members sign the papers to purchase Fairway Village from Florida Leisure Communities.
John Stecher speaks at the celebration
of purchase of the park by residents.
"We have been working on this since 1977,
and we were ready when Florida Leisure
Communities decided to sell," said Stecher.
Everyone celebrated with a
picnic and visits from local officials!