HSV board addresses progress, values
HOT SPRINGS VILLAGE — Both the costs and values of Hot Springs Village life were the primary focus of discussion during the January meeting of the Property Owners’ Association’s board of directors on Thursday.
General Manager David Twiggs made a special presentation on progress made toward the Business Transition Model thus far, since its inception in 2013. The goal of the plan has been to transition Hot Springs Village from a traditional golf community to a destination and lifestyle location.
Seven factors identified as necessary for sustainable growth were included in the progress report: brand, new context, monetizing growth, place-making, monetizing amenity sales, quality control, and marketing. Progress in each area was outlined in the report, and a chart showing the factors and subfactors will be available for viewing on the hsvpoa.org website.
Regarding quality control, he pointed out the value of HSV’s Total E Conversion System, saying it’s been a “huge leap forward for our community.”
Twiggs discussed these seven factors, along with program values including land preservation and stewardship, outdoor recreation, connection to the arts and nature, regional partnerships, and housing diversity. Additionally, he touched on the mission areas of the plan.
He then addressed a stress analysis map, showing which areas of residential lots are in the most trouble, due to payment delinquencies. He said the POA gets some 100 calls a month from property owners in the stressed locales who say they no longer want their lot. “We’ve got to stop the bleeding,” Twiggs said.
Board President Harv Shelton discussed future added value in the community, saying he was one of three participants from the Village who testified before the Arkansas Public Service Commission on Tuesday about problems of Entergy Arkansas Inc.’s reliability in the area. He and others met with the CEO and COO of Entergy, who said the company will be working with HSV leadership to improve service.
Vice President Mike Medica weighed in on the financial aspect of fuel, reporting that a contract recently made with a Benton company will lower this year’s cost for fueling vehicles used for service and maintenance within the gates.
Twiggs also brought up that management is looking at replacing the HVAC system in the unused half of the Balboa Club, so it doesn’t develop problems that would require major renovations. He said, “We think we have an option now at about $75,000,” and the issue will soon be brought to the board for voting.
Though items up for vote regarding a Liquor Indemnity Agreement and the Granada Restaurant Lease passed unanimously, there was lengthy discussion on the third item of business. The DeSoto Club Financing issue revolves around borrowing from Arvest Bank to fund extensive renovations now taking place.
CFO Lesley Nalley presented the three financing options prepared based on Arvest’s commitment letter terms, then explained her motion to opt for a loan with a 60-month term, fixed interest rate of 200 basis points over the current Federal Home Loan Bank rate, and estimated fees of $2,500.
As Director George Parker was absent from the meeting, and the board chose not to appoint an interim director in the wake of Mary Neilson’s December resignation, only five voting members were present. During the first vote on the DeSoto loan motion, directors Jeff Atkins and Marcy Mermel sided against approving the motion.
This left the vote at 2-2, so Shelton cast his presidential tiebreaker vote of yes. However, according to board bylaws, a motion needs four votes to pass.
After board member debate, Mermel reconsidered and tentatively made the same motion again. This time, she voted yes, leaving Atkins as the only voice of dissension.
Another aspect of Village value was presented by HSV Police Chief Rick Middleton and Mike Kuehn. The two gave an update on the Citizens Police Academy and its more recently formed Alumni Association. Middleton said there are 105 participants in the current CPA program, and Kuehn reported that its association has now been granted nonprofit status.
The nonprofit’s mission statement focuses on being a charitable organization with the goal of supporting the HSV Police Department, and dedicating resources for community outreach and awareness projects.
Some of those projects have already begun, including the fingerprint identification program for area children, and the “Be Safe, Illuminate” campaign that furnishes glowsticks and bracelets during outdoor nighttime community events.
There are plans to extend the identification program, to include seniors in nursing homes. Additionally in the works are an Easter Egg Hunt, a child car seat installation program, and an effort to supply all HSV police officers with emergency medical kits.