by Ken Phillis, January 21, 2020
They counted on us not noticing
I placed a post on ND over a year ago with what I believe to be the reason(s) for the CEO/BOD cramming the CMP down our throats. First, in my opinion, the CEO and the BOD members ( including past and present, excluding Diana Podawiltz and Dick Garrison) know what they are doing regarding the CMP and their nefarious scheme for HSV. The question must be asked why so many secret meetings and outright refusals to provide information, to which property owners are entitled? What is it “the group” (CEO/BOD/others) don’t want us to know? They are not stupid. They knew IF they were upfront and truthful with property owners their nefarious scheme would not be acceptable, especially with a price tag of $500,000 for a cookie-cutter plan….the CMP. They were also counting on the fact property owners were still asleep at the wheel because in reality, they have been for many years.
The effort to slide the declarations through with a vote was in their minds, an easy task. They did not expect some of us would realize they were up to no good and started a movement to quell their attempt to totally neutralize any say property owners would have regarding what goes on in the Village.
Follow the money
One must also follow the money. Whose pockets will be filled if the CMP is forced upon HSV? In my opinion, there are several people with their fingers in the pie. The individuals who are having secret meetings, possibly some present and past BOD members and the CEO. It is also my opinion there are others we’re not aware of that are involved with this endeavor to change HSV drastically.
The “plan” involves a number of construction projects both commercial and private. Pocket neighborhoods and a town center, alone will entail a tremendous amount of construction. There will be the need for a “developer” and of course, investors….after all, it takes a lot of money to pay for the construction. Who will be the developers? Those who are involved in cramming this CMP down our throats….” the group”. There is a tremendous amount of money to be made by being a developer. They will make fancy brochures and hype it up in various ways to attract investors. Financial projections will be made on soft numbers with the caveat….there’s no guarantee, however, the ROI (return on investment) will be juicy. I assure you there are those out there who will roll the dice. If the whole idea fails it doesn’t matter to the developer because they will pocket their money upfront…it will be a “built-in expense”.
I have seen this scenario in the oil exploration business when I was a Certified Petroleum Geologist with my own exploration company. The difference is the developers were called operators and they made money despite drilling a dry hole. The bad part was the operators knew the chances of a commercial well….a well that makes more money than it took to drill it….was a long shot. They used “soft” data along with inflated financial projections based on cost, recovery and future oil prices to lure investors. And of course, the caveat……there were no guarantees. The operators used OPA (other people’s money) to fund the drilling prospect with their profit built-in so no risk for them. In my opinion, this is one possible scenario of what is happening here in HSV……same story just a different subject and actors.
Another possibility
Another possibility is the intentional push of HSV into bankruptcy. We’re then easy pickings, and down go the gates. Become a municipality? Possibly, however, it doesn’t matter to “the group” as they will be the developers to slice and dice the Village as they please. They will swoop in to make the big bucks as the developers. When it fails…and I have no doubt it will, ‘the group” will pad their pockets and walk away with a smirk on their face.
Elect Lloyd, Tucker and Dick and never give up
This is why we ALL must elect Lloyd Sherman, Tucker Omohundro and Dick Garrison come March. We must be proactive in getting out facts and information to property owners and getting them to vote for the three I’ve mentioned. “The group” is not going to lay down. They will pull every dirty trick possible to derail the election of LTD. We must ramp up our fight. We must be watchful and ensure “the group” doesn’t use POA money….OUR money (as they did during the declaration vote) to push their agenda for their candidate. And don’t kid yourself. “the group” has their candidate. Those who are doing the research must continue to find as much information as possible regarding the nefarious dealings of our management. A huge thank you to those are doing the research and those who support this effort to right the ship.
by Ken Phillis, January 21, 2020
Vicky Didion
01/21/2020 — 7:58 am
Well written and my sentiments exactly!
Phil Lemler
01/21/2020 — 8:15 am
Can’t know which of the scenarios represent the motives of the CEO, et al … however, if you look at the membership roster of the National Town Builders Association (www.ntba.net) … these people are in the business of CMP type projects. Their membership includes developers, builders, architects and a variety of development disciplines …. including DPZ, Lesley Nalley and Stephanie Heffer. Go look at their membership roster.
There is enough investment money in that association to fund a CMP renovation for HSV and reap the benefits. One example (another member) is Max LeMarchant who has close associations with Mr. Twiggs and Ms. Nalley. He has been in HSV, has bought lots here and has been a big backer of Nalley and the CMP.
The whole NTBA is structured to promote town center kind of projects.
Andy Kramek
01/21/2020 — 9:07 am
From the NTBA web site home page:
Who is a Town Builder?
A Town Builder member is an individual or a principal of a company engaged in the process of acquiring land, developing a plan, building a neighborhood or town based upon the principles of smart growth. The Town Builder may be in the process for his or her own interest or in a joint venture, or as a major fee developer.
What are Town Builders Building?
Town Builders are pursuing a wide variety of projects, touching on all aspects of residential, commercial, retail and civic development. Some projects may be small and others quite large, but all are based upon the New Urbanist principles of Smart Growth.
Sure enough in the membership roster are Lesley Nalley and Stephanie Heffer. Kind of lends support to both of the scenarios outlined by Ken doesn’t it?
Phil Lemler
01/21/2020 — 9:26 am
On ntba.net …check out the “past roundtables” … specifically the spring of 2015. On page 11, they discuss the CMP development of HSV … this have been planned for years!
Anonymous
01/21/2020 — 6:58 pm
Courtesy of Lesley Nalley and Stephanie Heffer …
“Making and Remaking America’s Downtowns” is the focus of the National Town Builders (“NTBA”) Spring Roundtable. Don’t miss these fascinating stories and tours to get the inside scoop about the outstanding urban development taking place in the heart of Little Rock, Arkansas’ capital city; an emerging “Main Street” college campus under development in Conway; the challenges of introducing new urban development principles to Hot Springs Village, one of the South’s largest retirement havens; and how developers and city leaders are creating such a hip vibe in Bentonville that it’s been cited as one of the “5 Up-and-Coming U.S. Tourism Cities” in the nation by Huff Post Travel.
http://ntba.sparkfirebranding.com/wp-content/uploads/2017/09/2015-NTBA-SRT.pdf
Anonymous
01/21/2020 — 7:00 pm
Thanks to David Twiggs …
David Twiggs, Hot Springs Village
David Twiggs started in the destination and resort management in 1990. Focusing on repositioning, brand management, product development, and competive advantage for private club and resort communities, he has been developing successful business models within real estate driven clubs and communities for the past 20 years.
As an AICP certified community development planner and an active executive for large-scale resort and retirement communities, David has a special interest in private community land use planning and business plan development. “To build an extraordinary place that has sustainable success, it must meet the needs of members, remain competitive in the marketplace, and maximize both traditional and non-traditional opportunities. This requires a multi-faceted approach incorporating sustainability, profitability and quality of life. Redefining the function of the organization is vital if the long-term quality of life and property values are to be maintained and the investment of the owners is to reach its full potential.”
David is active with the American Institute of Certified Planners, Club Managers Association of America, Community Association Institute, and the National Town Builders Association. Founding several regional branding non-profits and sitting on the boards of others, he takes an active role in shaping the community around him and urges clients to do the same. David, Ashley and their two daughters have recently relocated from Augusta Georgia to take up the challenge of reinventing Hot Springs Village AR, the largest gated community in the US.
http://ntba.sparkfirebranding.com/wp-content/uploads/2017/09/2015-NTBA-SRT.pdf
HSVP C
01/21/2020 — 7:16 pm
Anonymous, the problem is that HSV is a very poor fit for New Urbanization and the community does not want it.
Tom Blakeman
01/21/2020 — 9:24 am
All correct. My take is that the POA/CMP supporters and promoters are doing whatever they can to promote someone coming in and ‘taking over’ the place. That’s why the CMP, that’s why they want the gates to go away, that’s why the Declarations vote, that’s why Nalley, et.al. wanted to buy Coopers developer’s right.
Only two problems stand in their way: 1. Cooper won’t sell; and, 2. They have not found someone yet dumb enough to buy into rural Arkansas with no jobs base here or nearby.
You can bet though that when it happens there will be a cadre of currently behind the scenes folks, all of whom who have behind this over the years, that figure they will get rich.
It is the same way all our national politicians have been getting rich over all of our lifetimes
Minn Daly
01/21/2020 — 10:05 am
All above thank you! NTBA. NET also has Stephanie Heffler on roster as well as Leslie Nalley. Select the mission, scroll down on each you may be surprised. Minn Daly
Kilroy
01/21/2020 — 11:47 am
This IS the epitome of what frustrates us about
“The Group”. The faux words that mean absolutely nothing/anything that is discernible to us knuckleheads. Diana called her out at the last board meeting by saying “Say What??”
Yes Lesley. Go into the political arena
because we need some relief here and your talent is just waiting to be discovered in Washington.
George Phillis, great article and i don’t mean to stray but I’m in the “Follow the Money “ camp. There is a weakness in the makeup of mankind. It is called greed.
When “influence” can be cashed in, funny stuff goes on. The backroom secrets abound.
Our hand picked illegal Governance Committee is where it is happening,
Vicki Husted
01/21/2020 — 9:35 pm
Kilroy,
Property Owners: Tell Current BOD – Do not extend Nalley’s contract!!
I just signed the petition “Hot Spring Village Property Owners: Do not extend Nalley contract” and am urging others who share this opinion to add their names.
Our goal is to reach 100 signatures and we need more support. You can read more and sign the petition here:
http://chng.it/sgpkBRNw5s
Have your Lot/Block/Assessment ready and put it in the comments, which limits signatures to Property Owners
Vicki Husted
01/27/2020 — 2:38 pm
If you vote on the petition above, you can vote once for each property you own!
Mani
01/21/2020 — 2:34 pm
How can you possibly bring back confidence when Leslie N is making 250K+ a year? How can you possibly speak of increasing our assessment when LN is making 250K+ a year? HOW did she manage to get such an outrageous salary? It is astounding. What is the total salary being paid to all? I am relatively new to the Village but it seems to me that all is not kosher here. I think a lot is going on that we the owners of a property are not aware of. What is the POA hiding? Are all records audited yearly and published for owners to read? If not, why?
My husband and I wish we were privy to this site before purchasing our home. We blindly purchased due to security reasons and the lovely grounds. The way it is looking for us our home will possibly be on the market next year. I hate this squabbling and Leslie N. and her board remind us of Castro.
HSVP C
01/21/2020 — 3:37 pm
Mani, don’t worry. We are working very hard to change this. Please have faith and help us. Not sure if you are a member of our Facebook Group or not, but if not, here is a link: https://www.facebook.com/groups/HSVPeople/
Andy Kramek
01/22/2020 — 9:29 am
Mani, you asked “What is the total salary being paid to all? “. That is a question that many people would like answered in detail, however PoA policy is not to disclose “personnel matters” – which includes individual salaries.
Having said that, you can check the 2020 Budget here:
http://explorethevillage.com/members/wp-content/uploads/2019/11/2020-Approved-Budget.pdf
The first line is for “Revenue” and the second line is for “Compensation”.
As you will see the expected Compensation accounts for just over 49% of the expected revenue, with “Operating Expenses” close behind at just under 36%.
The accepted standard measure of how much to spend on compensation is to determine the ratio between Operating Expenses and Compensation. In the case of the HSV 202 budget this would be:
17,627,094 / 12,815,653 = 137.5%
To say that this is excessive is a mild understatement. The following is from
https://bizfluent.com/how-5102023-calculate-compa-ratio.html
Industry Standards
The percentage of your operating expenses devoted to salaries will depend on the type of industry you are in. Utilities and manufacturing industries have large infrastructure costs that generally make up a much greater portion of their spending than salaries. Consider these Bureau of Labor Statistics numbers as a guide: Industries with the highest median percentage of operating expenses devoted to salaries in 2008 included the health care industry, with a 52 percent ratio, and for-profit services, with a 50 percent ratio. The lowest were durable goods manufacturing at 22 percent, construction/mining and oil/gas at 22 percent and retail and wholesale trade at 18 percent.
Hopefully this will answer your questions.
Tim
01/25/2020 — 7:26 am
I have been considering moving to the village in just over a year when I retire. I grew up in Hot Springs and moved away after college and wanted to move back. The articles and post definitely does not make it sound appealing.
HSVP C
01/25/2020 — 8:00 am
Tim, if you grew up in this area then you know exactly how stunningly beautiful it is and just what Hot Springs Village has to offer. There is no better place in the world to be and believe me, we investigated many places before moving here. We have a temporary governance problem, which we are working diligently to solve. There is no perfect place. If you do extensive research on any town, city, area, you will very quickly realize this. Our problems here will soon be solved. Would love to talk to you on the telephone or by email. My email address is pennywisebuys@gmail.com. Thank you for visiting the website. – Cheryl Dowden