Frequently Asked Questions - Overall and Financial

A: Renew Big Canoe is a comprehensive initiative that covers a series of planned community enhancement projects. It takes elements of the Strategic, Long Range and Master plans and distills them into actionable projects.

A: The POA is tasked by our governing documents with maintaining common property and assets. Many projects under the Renew Big Canoe umbrella are important maintenance issues that are required to be addressed. 

There are also upgrades planned to key facilities to help keep our wonderful community relevant moving forward, and improve the efficiency of some key services. A majority of residents and Property Owners of Big Canoe expressed their desire to see improvement of our community through the Voice of the Community survey, and the POA leadership is responding.

By renewing key areas of Big Canoe, we can preserve the value of our physical assets, enhance the Property Owner experience, and ensure that our community continues to prosper as a desirable and livable destination in the future. 

A: Currently, these are estimated costs of the primary components of the initial phase of Renew Big Canoe:  

Clubhouse renovation - $6.35 million

New Postal Facility - $2.7 million

Choctaw Golf rejuvenation - $3.4 million

The Chimneys restored as Admin Building - $1.8 million (partially offset by insurance settlement)

Canoe Lodge renovation - $500 thousand   

These costs are based on the best information we have at this time based on engineering, construction bids, and architect's estimates. These would be paid for by using a combination of our Credit Facility and the annual capital budgeting process. Thanks to securing a favorable $15 million line of credit, we now have a window of opportunity to accomplish this series of projects. 

Please see FAQ #2 below under Finances for more detail on the Credit Facility.

A: The Clubhouse renovation and the new Postal Facility are the projects that will require a Property Owner vote to move forward.

A: Property Owner approval is required for projects not funded by the Restricted Capital Reserve under the following circumstances:

- Cost of new Common Property (new buildings, etc.) or significant expansion of existing Common Property exceeds $1.37 million*

- Cost of the enhancement portion of the project to maintain, renovate or replace existing Common Property exceeds $1.37 million*

*Please see FAQ #4 under Finances below for an explanation of how this is calculated.

A: Through the Voice of the Community survey and other feedback mechanisms, those projects of greatest importance to a majority of Property Owners were identified and prioritized. Those projects were then vetted by the Long Range Planning Committee (LRPC) with an eye on the resources needed and the potential costs to complete them. 

The LRPC began by researching and assessing the condition and functionality of every Big Canoe asset, including all facilities, amenities, and properties, and by talking to stakeholders. 

Based on that research, the Committee evaluated the community's needs and considered how best to sequence projects. The Committee then prioritized projects based on a few guiding principles, including: 

- Avoid any Special Assessment on property owners 

- Maintain and enhance property values

- Be good stewards of nature

- Reduce cost and impact on the environment by repurposing existing facilities where possible

The result was a list of projects for initial implementation and a list of future projects to be studied further. 

A: Absolutely! One of the questions that every POA Board member must first ask before considering any proposed project: “Will this have any negative impact on the Character of Big Canoe?”

Each and every project will always have that element as a requirement. The architects and planners for each project are directed to retain this character.

A: The major components in this phase of Renew Big Canoe are planned to be accomplished in the 2024-2025 time frame.

A: The various floor plans and renderings are close approximations of the proposed final configurations. But until actual working plans are approved by the POA Board, there may still be changes based on a number of factors, including Property Owner feedback. 

A: Where possible, we will be managing multiple projects simultaneously. This will cause the least amount of disruption for Property Owners and garner the highest efficiency and lowest total cost for the POA.

A: Renew Big Canoe is a journey. We now have a “roadmap” for continuous improvement. 

As a half century old community that is continuing to grow, other POA assets will be assessed, and recommendations made to keep them up to date to meet the needs of the community.

A: Just as the enhancement of our amenities will increase the value of our individual homes, the same is true for any lot. 

Lots are typically purchased for future home-building and anyone considering buying here would be influenced by the quality and condition of our facilities and amenities.

A: Currently, these are estimated costs of the primary components of the initial phase of Renew Big Canoe:  

Clubhouse renovation - $6.35 million

New Postal Facility - $2.7 million

Choctaw Golf rejuvenation - $3.4 million

The Chimneys restored as Admin Building - $1.8 million (partially offset by insurance settlement)

Canoe Lodge renovation - $500 thousand   

These costs are based on the best information we have at this time based on engineering, construction bids, and architect's estimates.

A: The POA closed on a Credit Facility with Wells Fargo in May 2022 in anticipation of large capital projects to be completed over the next several years. The maximum that can be borrowed is $15 million at a 3.46% fixed rate for 15 years starting May 2025. This rate is considered excellent in today's environment.

Compared to our existing long term debt, if the entire amount is borrowed the difference in debt service represents less than an additional $2.00 / month per Property Owner. 

For a more detailed explanation of the Credit Facility, please refer to the January, 2022 POA Board Meeting. (forward to approx.1:06 hr:min)

A. In 2016 the POA financed the purchase of land and buildings from Big Canoe Company with a 10 year fixed rate loan at 3.29%. Monthly payments of principal and interest on that loan were $103,101, and monthly assessments were set based on that amount.

In May 2022 we closed on a $15 million Credit Facility with Wells Fargo which allows us to draw funds as needed at a variable interest rate until May 2025, at which time the balance converts to a 15 year loan at a fixed interest rate of 3.46%.

Also, in May 2022, the remaining balance on the 2016 loan was paid off with the initial draw. And while we are only required to pay interest during the draw period, we chose to continue to pay principal under the 2016 schedule. Assuming we draw the entire $15 million by May 2025, the new monthly payment of principal and interest will be $106,937, an increase of less than $4,000 per month above what we already pay.

Based on the existing number of homes and vacant lots, that equates to approximately $1.20 per month per home and 78 cents per month per lot. The exact amount was rounded up for presentation purposes.

Please watch the July 10 financial presentation for more details. 

A: The POA's credit worthiness was thoroughly evaluated during the loan underwriting process. We are well positioned to assume this amount of new long term debt. 

A: Property Owner approval is required for projects funded by the Board Designated-Capital Fund and Board Designated-CCF Master Plan Fund to be used under the following circumstances:

- Cost of new Common Property (new buildings, etc.) or significant expansion of existing Common Property exceeds $1 million +CPI (Consumer Price Index) adjusted threshold

- Cost of the enhancement portion of the project to maintain, renovate or replace existing Common Property exceeds $1million + CPI adjusted threshold

The current CPI adjusted threshold is $1,375,475 (reflecting the value of $1 million in 2010 in today’s dollars by applying the annual CPI increase each year). 

Note: The base amount was designated in the 2010 Amendment to the Declaration Article VI Section 13 creating a Special Assessment for the purpose of establishing a funding mechanism for the Restricted-Capital Reserve Fund to be used in certain situations.

A: As Property Owners in Big Canoe, we all have a vested interest in the betterment of our community assets. Adding greater usability and enjoyment of our facilities is one key component.

Renew Big Canoe will also help safeguard the value of our residential properties. And we would be making our community more appealing to potential residents while also attracting quality employees.

A: Yes. While not part of Renew Big Canoe specifically, costs for the Petit Dam were previously estimated by Geosyntec, a highly regarded civil engineering firm, and are continually evaluated and updated. These estimates are included in the existing replacement Capital Budget and regularly monitored in our cash flow model.

A: Please watch Bill Thurber's presentation on Big Canoe's business model and on the financing of Renew Big Canoe, where he explains this in detail. You can find it here.  Advance to the 21 min. point.

A: The majority of the Renew Big Canoe construction projects, along with their associated expenditures, are not expected to commence until 2024. This deliberate timeline allows for the full costs of the Petit Dam Lower Level Outlet enhancement to be determined, while simultaneously initiating the design process for the new spillway.

The necessary funding to complete the Petit Dam projects will be derived from our ongoing monthly assessments or existing cash reserves. To ensure efficient financial management, estimates for the Petit Dam project are already incorporated within the replacement Capital Budget. These estimates are regularly monitored within our cash flow model, enabling us to closely track the financial aspects and make any necessary adjustments as the project progress.

Funding for the Clubhouse renovation, new Postal Facility, and the Choctaw rejuvenation will be obtained through our Credit Facility. These funds do not compete with the resources allocated for the Petit Dam projects. By securing separate financing for these initiatives, we can ensure a focused approach and optimal allocation of funds.