Reynolds Property Owners have organized to achieve the best possible outcome during restructuring.

While the banks and the court-appointed Receiver work to reduce operating expenses and find a buyer for the financially troubled Reynolds Plantation, a small group of residents has been laying the foundation for an organized property owner group to help shape the best possible outcome for all Reynolds Plantation owners.  The Reynolds Independent Property Owners Coalition, LLC, or RIPOC as it’s called, began forming in early May, and recently became a legal entity. It has now begun the process of forming a Board of Managers elected by its members.  

RIPOC is the first elected property owner entity in the 20 plus year history of Reynolds Plantation.  The Reynolds Property Owner Association (RPOA) is a legal entity that was created and controlled by Linger Longer Development Company (LLDC), the insolvent developer.  Consequently, the RPOA’s inherent conflict puts it at odds with the interests of the property owners in both the case of a potential LLDC bankruptcy or with a prospective new owner.  There is also a Board of Governors, comprised of property owner members, that is an advisory board to LLDC but is not a legal entity.  Consequently, its lack of legal standing precludes it from representing Reynolds Plantation property owners in the bankruptcy court.

One of the key concerns of the Reynolds property owners is the estimated $130 million of initiation deposits that have been paid to LLDC in return for becoming a club member.  In an LLDC bankruptcy or under new ownership, these initiation deposits could be at risk.  These deposits, which are described as “a loan to the club” under the membership plan, would put Reynolds property owners among the largest creditor groups in the event of an LLDC bankruptcy. The organizers of RIPOC believe members should not give up on getting a major portion or some of their initiation deposits back.

“We’ve studied several residential golf communities similar to Reynolds Plantation that have been successful in preserving a major portion or some of their members’ initiation deposits.” said Barry Clough, one of four At-Large Board of Manager members of the newly formed LLC.  “In these cases, it was a unified voice of all their members and good legal representation that were the keys to success.” added Clough.

At the time a buyer for Reynolds Plantation is found, RIPOC believes the new owner will likely pursue a “pre-packaged” bankruptcy of LLDC in which the purchaser would acquire all of the assets free and clear of any of the old debt.  It is at this time that RIPOC would have the opportunity to represent their members in the bankruptcy proceeding and with the new owner.

“The placing of Reynolds Plantation into receivership has provided the property owners with a unique opportunity to get organized and work toward a more favorable outcome for our community.” said Joe Manning, another of the four At-Large RIPOC Board of Manager members and a founding partner of the highly regarded Morris, Manning and Martin, LP Atlanta-based law firm. “RIPOC’s goal is to represent the property owners in any bankruptcy proceeding and to work constructively with the new owner to forge a win-win relationship that will preserve our investment in and reunite the community we all love so much,” Manning went on to say.

In addition to initiation deposits, Reynolds property owners are concerned about preserving the value of their combined estimated $3 billion in real estate.  They want to ensure any new owner will continue the vision and quality that has come to be associated with the nationally recognized Reynolds Plantation brand.  Property owners also believe they should have more control over those portions of the development that are predominantly sold out.  This was never a possibility under LLDC ownership.  A legal entity, specifically authorized by its members to represent them, will provide a means to accomplish more control in the future.

With these and other issues hanging in the balance, getting the full eleven-member Board of Managers of RIPOC in place and up to speed is an important milestone for the organization.  In addition to the four At-Large members, who were elected by the existing RIPOC steering committee, there will be seven Board members elected through a general election. A group of 23 property owner candidates, who have stepped forward to represent their particular Reynolds community, are currently being voted on electronically through an on-line web site. In the first few days of voting, more than 600 owners have chosen to vote and join RIPOC.  The election will be completed by the end of July, but the membership effort will continue until Reynolds changes ownership and property owner interests have been adequately represented.

Exactly how long it will take for the current situation at Reynolds to play out is anyone’s guess.  The current economic environment and real estate market are not necessarily conducive to quickly finding a buyer and arriving at a transaction that is acceptable to the banks.  However, the residents at Reynolds Plantation are preparing for when that day arrives.

More information about the Reynolds Independent Property Owners Coalition, LLC can be found at their web site, www.ripoc.net.

For more information, contact At-Large Board of Managers members:

Barry Clough, barryjudy@plantationcable.net

Tom Herring, tom.herring.0950@gmail.com

Joe Manning, jmanning@mmmlaw.com

Ralph Olson, ralphjolson@me.com