 Deep Division in Christmas Lake Village
Divergent viewpoints, competing covenants, and a disparity between assessments are threatening the unity and perhaps the very existence of Christmas Lake Village. The current division dates back to the beginning of CLV, when each subdivision was created under a separate agreement of covenants and restrictions. Subdivision 1, containing the earliest houses in the village, received special consideration. Later attempts to unify the entire village with one set of Covenants and Restrictions and equal assessments have been rebuffed by Subdivision 1, who last summer brought suit against Christmas Lake Village to assert their independence.
One side feels that promises that were made over thirty years ago should remain in effect, meaning some residents would never pay more than $100 in assessments. The other side feels that everyone should be paying the same assessment since everyone receives the same benefits.
The CLV Board of Directors recently held three informational meetings in November to educate residents on the current events. Below is a brief history of events leading up to CLV’s current situation.
The lots in CLV were originally sold in sections. When one section was sold out, it would be numbered and Covenants and Restrictions (C&Rs) would be created to help enforce rules and restrictions for that area. Eventually CLV grew to contain 12 subdivisions and thus 12 separate C&Rs. Since 1991 the CLV Board of Directors has attempted to bring subdivisions 1 through 12 under the same C&Rs.
In 2001 Subdivision 1 wrote and recorded their own C&Rs, refusing to adopt village wide C&Rs that CLV residents in subdivisions 2-12 adopted village wide and recorded in May 2005.
CLV has made several attempts to bring Subdivision 1 under the village wide C&Rs including an amnesty program to forgive unpaid assessments. In August a judge ruled that Subdivision 1’s C&R was the only document that applied to residents of that area. CLV Property Association can now only collect a $120 assessment for Subdivision 1 versus the $333 collected for the rest of CLV in 2007.
In 2007 the CLV Property Association will have a nearly $40,000 shortfall due to Subdivision 1 paying 1/3 of what the other lot owners will be paying. Over the next ten years the gap will continue to widen between what Subdivision 1 will pay and what the remainder of CLV will pay. Assuming a 5 % increase annually over the next ten years, Subdivision 1 will pay $186 in 2016 versus everyone else’s $514, resulting in a $500,000 loss of funds.
Road repairs have been canceled for the remainder of this year due in part to the $40,000 in legal expenses paid compared to the $6,000 that was budgeted.
The 2007 budget does not allow for proposed improvements to the lakes, Holly Park, and the Recreation Center in lieu of the Subdivision 1 assessment shortfall. Road and drainage projects have been cut back as well.
Each of the informational meetings drew around 50 people. The board presented the above facts and then opened the floor for questions or comments from the attendees. Many people expressed surprise at the situation but wanted resolution. Though some seemed angry, most people expressed the desire to see all subdivisions united and paying the same assessment.
It was noted that several residents of Subdivision 1 have been paying the full assessment that the remainder of CLV pays. One Subdivision 1 resident even said that she would continue paying the full assessment even though she would only get a bill for $120 (Subdivision 1’s 2007 assessment amount). Board President Don Vogel informed her that CLV may not be permitted to accept anything over the $120 from Subdivision 1 residents because of the risk of being sued again.
Residents of CLV will have to decide what means the most to them. Will the village remain divided or come together as one. Let your voice be heard.
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