By: Rob Harris

We recently discussed the divisiveness occurring at a Connecticut condominium community, where unit owners have been required to subsidize the losses incurred by the community owned golf course, and now are faced with the prospect of funding substantial capital improvements.

This predicament has arisen in a number of places, especially in recent years. One such place is the Hamlet Country Club, in Delray Beach, Florida, which has been the site of a longstanding battle, including litigation, arising out of its requirement that all unit owners be members of the golf facility.

A conceptual solution for communities finding themselves in this situation is to find a buyer for the golf course, a solution more easily stated than achieved. That potential perhaps exists for The Hamlet, however. The nearby Seagate Hotel & Spa and the affiliated Seagate Beach Club are missing an amenity: a golf course.

Reports are that they may be willing to purchase The Hamlet’s course, but the acquisition would come with a price, as they will expect The Hamlet unit owners to contribute to the repayment of the $11 million in third party indebtedness.

Look for intense, internal discussions among The Hamlet community members, as they wrestle with the pluses and minuses of this potential alternative.