CEDAR HILLS — A clerical error five years ago is handicapping plans to restructure the financially troubled Cedar Hills Golf Club.
A mistake in the way plats were recorded in 2001 when the golf course development went from being a private venture of The Cedars subdivision to a city project has landed Cedar Hills in an unusual position: The city is a member of a homeowners association.
For some reason, likely an oversight, portions of the city-owned course are included in residential plats, making them subject to the covenants, conditions and restrictions (CC&Rs) of The Cedars West homeowners association, city officials said.
"It's pretty clear from the situation, as you look at the laws, that it was never intended for a city to be a member of an HOA — a homeowners association," Councilman Jim Perry said. "We certainly don't own any homes. It doesn't make any sense."
Still, it has complicated matters for the Cedar Hills City Council, which has been working for the past two years to determine the best options for golf course.
Tonight, the council is expected to review and discuss recommendations for the course by city staff. Specifics of the plan won't be revealed until tonight's meeting, but Perry said it will include restructuring of the golf course.
"It's very clear that the vast majority of the community is against the status quo," he said.
Not many residents are too excited about their property taxes increasing by about 80 percent to pay for the $6.2 million bond sold in November to pay for costs related to the course, Perry said.
"People are looking at about doubling their city portion of property tax," he said. "We're talking hundreds of dollars a year (per home.)"
That leaves the city with three options: Sell the course outright; sell parts of the course and then restructure it to pay down or pay off the bond debt and continue operations as a city-owned course; or combine the other alternatives by restructuring the course and then selling it.
Selling parts of the course in order to restructure some areas, however, would require assistance from The Cedars West HOA.
"It dramatically changes if we don't have the blessing of the HOA," said Konrad Hildebrandt, Cedar Hills city manager.
Any portions of the course mistakenly recorded in residential plats are subject to the HOA's CC&Rs and would require an amendment by a supermajority vote of its members, Perry said.
Steve Lee, a board member of The Cedars West HOA, said he can't speculate as to how its members will respond to restructuring of the course until the city presents a formal plan.
Some residents whose homes overlook areas of the course being discussed as candidates for residential development paid premiums for those views and aren't likely to be too willing to give those up, Lee said.
Hildebrandt said he's confident that the city and HOA will be able to work together and agree on a plan that's in the best interest of all city residents.
"The HOA has worked real well with us," he said. "They want to come (to the city) and say, 'Look, this is what we think we can present to our members and get passed.' They're trying to find a scenario, too, that works for them."
Tonight's City Council meeting begins at 7 p.m. at the Cedar Hills Public Safety Building, 3925 W. Cedar Hills Drive. A meeting to discuss golf course marketing begins at 6 p.m.
E-mail: jpage@desnews.com