Chapter 11 Reorganization
Continental Country Club Asks for Special Assessment to Transform former Lake Elaine into Multi-Use Preserve for All Homeowners
If passed, the decades-old lake will become a series of ponds and trails for the enjoyment of all association homeowner
[Flagstaff, AZ] The Continental Country Club Board of Directors is asking homeowners to approve a special assessment to fund both the association’s emergence from Chapter 11 bankruptcy, and to repurpose the former Lake Elaine into a multi-use space consisting of ponds and trails. The $2,000 per homeowner assessment would provide the necessary funds to avoid Chapter 7 which would require liquidation of all association assets including the golf course, tennis and pickleball courts, pools, Bear Paw Activity Center and the Main Clubhouse. Additionally, the board is asking for an increase in annual dues in the amount of $97 per year to offset inflation costs, while still keeping dues well below comparable communities.
“This is a critical time and a critical vote for our homeowners,” said Continental Country Club General Manager Tahlia Murray. “If we don’t get yes votes on both ballots the country club and its existing amenities and benefits will cease to exist, jeopardizing property values for our 2,395 diverse homeowners. The good news is, once both resolutions pass, and we are confident they will, we can put Lake Elaine behind us and open that space up for all residents to enjoy, providing yet another valuable amenity to homeowners and, therefore, increasing home values.”
The Continental Country Club was forced to file for Chapter 11 bankruptcy in 2021 after a lengthy court battle over the viability and sustainability of Lake Elaine. Only 52 of the 2,395 CCC homeowners have had access to the lake which, for decades, has consistently leaked and required tens of thousands of dollars in repair and maintenance expenses from the Continental Country Club fund, which is designed to benefit all members, not just a small group. The proposed bankruptcy settlement includes two options for the land, both of which will cost $2.5 million. “The property is currently owned by the Association. Option #1 would be to deed the land to the 52 owners and pay them $2.5 million to repair and maintain the lake in perpetuity. This option would release the Association from all current and ongoing liability. It would become privately owned property. Option #2 would be to spend that $2.5 million and create the new amenity which would be open to all homeowners. This would include 4-5 ponds, walking trails and benches,” continued Murray. “No other neighborhood in Northern Arizona would have a space like this available to all of its residents and we are excited that this could be a really positive outcome at the end of a very long, challenging journey.”
The Board of Directors will be holding a series of townhalls and roundtable discussions to answer any questions regarding the assessment and address any concerns residents may have. Dedicated homeowners will also be canvassing the neighborhood, going door-to-door in an effort to clarify any concerns or misconceptions. “We’ve heard people say the money is going to Lake Elaine. We know the 98% of homeowners who didn’t have access to the lake are tired of seeing their money pay for the constant leaking and repairs. Two yes votes will put an end to that, and they’d all get something in return,” clarified Murray.
The schedule of these events can be found here. Ballots will be sent to homeowners June 28, 2022 and must be returned by mail or in-person prior to 5:00pm on July 28, 2022. If both initiatives on the ballot are approved, homeowners will have the option of paying the special assessment in full or financing over two years. The dues increase of $97 per year would begin in January 2024. If passed, design plans and surveying will begin as soon as possible, with a process time of 18-24 months until residents can begin to enjoy the revamped space.
The Continental Country Club is Flagstaff’s longest standing association neighborhood. Comprised of nearly 2,400 unique mountain homes, it provides residents the serenity and recreation they desire. Located in East Flagstaff among the dense ponderosa pine forest, the neighborhood has established itself as a destination for homebuyers and visitors alike. With ample family-friendly amenities including two swimming pools, tennis courts, pickleball courts, an 18-hole golf course and popular restaurant, The Oakmont, the Continental Country Club is among the most desirable and welcoming Flagstaff communities.