When White Mountain Vacation Village was conceived, a clubhouse was envisioned. Since the Association did not have funds or credit history to construct a clubhouse the developer borrowed money to build it. The money had to be repaid by the Association. In order to accomplish repayment in a fair and equitable manner, a lease between the developer and the Association was created.
The lease payment generates enough money to repay the loan. The lease began on August 1st 2005 and is for twenty years. At the end of the lease term, the Association has the option to purchase the clubhouse as long as certain conditions have been met. One of those conditions is that the tenant (Association) has paid the Minimum Guaranteed Rental and all other monetary obligations owed to landlord under the lease.
Arizona law requires that consideration be given when real property is sold. To satisfy this requirement, the Association must pay the landlord one dollar ($1.00) at the end of the lease.
The full lease may be reviewed on the Village People website. It can be found on the Documents, Forms and Downloads page.
