Angel Fire Property Owners Special Notes

Special Notes

Membership Transfers

The current owners bought the Resort out of bankruptcy in 1995 and the bankruptcy resolution provided a new set of rules we are all bound by. Section 4.15(h) in the bankruptcy Joint Plan of Reorganization states “upon the sale, conveyance, or transfer in any manner whatsoever of any homesite by a property owner, the purchaser (new owner) shall set forth and implement a new annual assessment structure” (base membership). The court provides a one-time exception for “sales, conveyances, or transfers to Children, Parents, Brothers, Sisters, Grandchildren, or Grandparents”. These rules are also covered in your Membership Handbooks.

A number of members have recently changed the title of their property using a variety of instruments that included trust accounts, partnerships, corporations, etc and some have resulted in conversion of their Charter Memberships to Base. Neither AAFPO nor the Resort has the authority to waive the requirements stipulated by the bankruptcy court. The AAFPO Board strongly recommends that members considering title transfers contact the Resort or AAFPO for advice prior to such action.

Water Conservation

Angel Fire is in the middle of a drought situation as is most of the west. The Village has enacted a water conservation ordnance and is buying additional water rights to mitigate the drought effects on Angel Fire.

For most of us the water conservation ordnance will be taken in stride. No watering of lawns except after dark, no washing of cars, no filling of swimming pools, etc. We have been through this before and are confident that wet years are in the future.

Buying additional water rights, however, was another story. Over a year ago the Village Governing Body recognized the situation and initiated a series of studies and contract discussions to purchase additional water rights, water storage rights, and the purchase of bulk water. A study was contracted to the investment services of Dain Rauscher to advise on the best method for financing this purchase. The result of these studies was a contract with CS ranch and a General Bond election to pay for the contract. Unfortunately the General Bond did not pass and the Village found itself in an emergency situation. To acerbate the problem, the Springer Irrigation District initiated a call on water rights earlier this year and on 1 May the Water Master limited Angel Fire to our priority water rights of 311acre feet for the remainder of the year. In that we consume about 50 acre feet per month, this allocation would satisfy Village and Resort water requirements through mid-November. Emergency action was taken by the Village Governing Body to conserve and purchase additional water that will allow near normal operation of amenities for the immediate future. Funding for these additional water capabilities was by use of Industrial Revenue Bonds and members will see an additional fee on their water bills.

Previous Owner/Current Owner

Each year AAFPO is asked to act on a number of responses that indicate some members do not fully understand the Previous Owners filed Chapter 11 bankruptcy and the Current Owner bought the Resort in 1995 under conditions agreed to and directed by the bankruptcy court. These conditions are contained in bankruptcy resolution documents entitled the Joint Plan of Reorganization (JPR). The bankruptcy court subsequently issued an order confirming the JPR. The JPR is filed with the appropriate court clerks and neither AAFPO nor the Current Owners have the authority to deviate from the stipulations in these documents. For example, the JPR established the dues assessment structure and the penalties and interest requirements. Unpaid dues, penalties, and interest will continue to accrue and must be addressed upon sale or transference of the property. The penalties add up fast and failure to comply with the JPR, for whatever reason, creates a problem that each property owners will have to address sooner or later.

What the Previous Owner or a realtor promised or whether you agree with the bankruptcy resolution is not an issue. The Previous Owner created this situation and we should not blame the Current Owner for his mistakes. If you do not agree with the JPR your grievance should be addressed to the bankruptcy court.