The Tellico Village Strategic Land Acquisition Initiative
Investing in our future to control our destiny
At Tellico Village, our destiny is no longer a matter of chance. It is a matter of choice.
We know you may still have a few questions. Please use the contact form below to send those our way. We will get back to you as well as post them under the F&Q’s on this page.
FREQUENTLY ASKED QUESTIONS
If we do not acquire the property with developer rights, CCI will sell to outside developers. This critical investment in protecting our community from outside developers and ensures peace of mind for the future of Tellico Village.
What do we get from this purchase?
- Developer rights not valued separately in analysis but worth millions!
- The land acquisition represents the potential of about 215 additional home sites. The initial master plan for Tellico Village included 6,800 home sites, and there now approximately 4,700 homes completed.
- Additional assets in good condition requiring minimal maintenance to freshen the look
- Positive EBITA (earnings before income taxes and depreciation allowances)
- Cash flow of $400K the first year (due to one-time expenses related to maintenance noted above)
- Additional $1M net income after first year
• Retail lease revenue in excess of $200K/year
• Dock Revenue in excess of $70K/year
• Expected $900K gain on sale of land in years 2022-2024
• Approximately $200K/year in assessment revenue from lot development beginning in 2023
Would outside developers be bound by our C&R’s, thus protecting us to some extent?
If CCI sold to outside developers, they could in turn also sell the developer rights for that parcel to the purchasing developer. This would give them control to do what they wish with the property. If the POA owns the developer rights, we can make sure any building activity complies with all of our rules.
How can an outside company or individual buy a parcel and come into the Village and expect to use our infrastructure without our approval? Roads, water, sewer, electrical power?
If CCI, who is the developer, sells the land, they can build or add whatever they want to under the developer rights. That is why us purchasing the developer rights is so important. Then we have complete control of any future development.
What are developer's rights and why are they worth millions?
In broad terms, it means the POA will be able to control or have a say on the development of all reserve property, if we chose to sell them. Also it means that the POA will control any lands that could be added to the Village. Also, it will mean the POA will be in complete control of the utilities and easements, whereas in the past the POA has had to work with CCI for permission or approval to do these things.
Does the acquisition require a vote from property owners?
The acquisition does not require a vote by the property owners, only the Board.
How much will our monthly POA fees increase?
This project will not affect the current budget or the 10-Year Plan. The project is self supporting with the revenues it generates.
Where are the lots that will be purchased?
They are all over the Village, mostly in townhome and villa areas. They will be reviewed more at the Town Hall meetings.
Can the parcels be listed with size, neighborhood, street and what we think it might best be used for?
We will be going over these in more detail at the Town Hall meeting. That meeting will be recorded and live streamed.
What are the additional assets we would acquire? It’s been suggested that Cooper’s docks are in need of maintenance.
That has been taken into consideration. However, they only require minor maintenance.
When is this positive EBITA going to benefit us?
The acquisition is expected to be a positive EBITDA in the second year and beyond. The first year is not due to expected initial maintenance / improvements to docks and retail space.
What’s this about retail lease revenue?
We would be purchasing Village Square, located directly behind the Welcome Center.
It’s been suggested that there are approximately 200 acres involved here and the statement is that only 215 additional homes would come out of this?
Most lands being purchased will not be developed into homesites. They will be used as green space, maybe outdoor recreation opportunities, storage, etc. Some of what we are purchasing is already being used today by property owners, e.g.: the lower two levels of parking at the Yacht Club and Tanasi boat dock parking.
It appears we’re buying land/ assets I assumed we already owned, like amenities & boat docks. Can you explain what we don’t own in these examples and what we are buying?
We own our current amenities. We are purchasing parking lots that we already use for amenities, such as the two lower levels of the Yacht Club parking lot and the Tanasi boat dock parking. We are purchasing a few additional docks as well that CCI owns.
After this purchase, exactly what property or rights will CCI continue to have and exactly what relationship/influence will CCI have with Tellico Village and the POA?
They are keeping the two Cooper-reserved parcels. One they are already building on with Village Homes in Coyatee Estates. The second is a parcel over by Chatuga Courts. They have not said what they will do there yet but per the agreement, it must be residential and comply with our current Blue Book.
In Kahite, parcel P1 is adjacent to the boat docks, and is currently woodlands, with walking trails. Will that parcel be acquired and then be maintained as woodland?
At the Town Hall meetings we will be reviewing these parcels and potential uses for them. We have not made any decisions on specific parcels of land at this time.
CCI currently leases boat slips to Villagers at the Yacht Club ( J dock). Is ownership of this dock part of CCI's offer in this land acquisition to the POA ? If so, would current dock leases be honored?
Yes, they are part of the acquisition. The current leases will be honored and will be up for renewal at the end of the lease term.