Marine Village Cottage Sale Frequently Asked Questions
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1 Marine Village Cottage Sale Frequently Asked Questions Version #2 November 10, Are the cottages being offered as is? The cottages are not being offered as is. The cottage sell price includes the following if required: a. fuse panels updated to conventional breakers with 100 amp capacity, b. replacement of furnace if required, c. replacement of the 55 gallon fuel drums with larger capacity units that are up to code, d. any required roof repairs e. door and window hinges tightened, f. new chimney flu if required, and g. grounded outlets if code requires. In summary, the Family has planned and budgeted to bring the cottages up to code as much as practical given their age. The intent is that cottage purchasers will not have to incur additional investments in the near term after their purchase, but, as with any home, ongoing maintenance will be necessary. 2. Does the cottage pricing include all furniture and appliances? Yes, the cottage pricing includes all furniture and kitchen appliances. 3. Will cottages still be available for rent in the 2012 summer season? We do not anticipate selling all the cottages at the first closing, so there will likely still be cottages available for rent next year, either from Family owned cottages or from cottages that have been purchased and the owners wish to rent them out for some portion of the season. 4. Will the Management Company be offering property management services for the rental of owner properties? Yes. Part of the services provided by the Marine Village Management Company will be to assist owners in renting out their Cottage or Trailer Site during the season when the owner does not plan to occupy same. There will be a fee for this service which we have not yet established.
2 5. Does the purchase price include all costs of complying with federal and state rules and regulations regarding sewage treatment, water supply, and electrical systems? Will there likely be additional costs for owners before or after closing for major upgrades to these systems? The cottage purchase price includes all costs to ensure Marine Village is fully compliant with all federal and state rules and regulations as they relate to sewage treatment, water supply, and electrical systems. We are currently in the process of rebuilding the pump house on higher ground so it is not susceptible to flooding. We did have a sulfur smell in the water during the 2011 season as the pump house system was being rebuilt. This will be corrected when the new pump house is completed this fall. Also, the Family will be modifying the sewage system this fall and next year to cure a slightly higher amount of phosphates than allowed by the environmental regulations. An engineering solution has been approved by the New York State Department of Environmental Conservation and is slated to be completed not later than mid The Family will pay for this upgrade regardless of its completion date. In summary, the Family is fully committed that Marine Village will be fully compliant with all laws as it relates to sewer, water, and electrical systems. All of these compliance activities will be funded by the Family and are included in the cottage pricing. 6. Will there be the ability to obtain a bank mortgage on the cottage? Each cottage will be deeded to the owner, so there should be no issues with obtaining a mortgage. Also, per the offering letter the Family is offering to help in financing your purchase. The terms are 60% down, 8% interest rate, and 60 month payment. 7. What is covered in the $2,900 annual maintenance fee? It takes a staff of 3+ people plus Priscilla to manage and maintain Marine Village. The $2,900 maintenance fee covers the following activities: a. maintenance and repair of the sewage and water systems, b. mowing of all grass areas, c. garbage removal, d. cleanup after storms, e. maintenance of roads, docks, playground equipment, roads, seawalls, swimming areas, etc, f. utilities for the common infrastructure items, g. depreciation and maintenance of equipment to accomplish all of the above, and h. office, legal, and general liability insurance.
3 8. What are the property and school taxes that I will owe on my cottage or mobile home site? Marine Village is subject to Beekmantown property and school taxes. The current tax rate is $23.84 per thousand dollars of assessed valuation. A breakdown of the rate is as follows: County $5.963 per thousand General.349 Highway Fire.595 Total $8.386 per thousand School $ per thousand Grand Total $23.84 per thousand We believe Beekmantown will assess each site at the purchase price paid for same. Accordingly, owners will be subject to annual property and school taxes at $23.84 per thousand dollars of valuation. 9. How did you come up with the asking price for the cottages Valuing lakefront homes is difficult as no two homes have the same views and access to the lake, etc. The value proposition for Marine Village is that each owner has access to 2,500 feet of lakefront with two swim areas, several docks, playgrounds, tennis court, etc. We believe this is a unique lakefront situation and worth the prices being asked. 10. Will I be able to obtain flood insurance? Flood insurance will be a decision each cottage owner will have to make. We believe flood insurance may not be worth it given the high water level in 2011 was a once-in-a 100+ year event. 11. If a cottage was ever deemed irreparable or uninhabitable due to flood damage or another unforeseen occurrence, would I be able to tear down and build a more modern cottage?. If a cottage was destroyed or irreparable, the owner could certainly rebuild a more modern cottage provided the design, color, etc was acceptable to 70% of the cottage owners (see Summary Rules & Regulations).
4 12. What is considered common area? The owner of each cottage or trailer will own the property directly underneath the cottage or trailer. All other Marine Village property is common (including swim areas, docks, playgrounds, tennis court, etc.) for the enjoyment of all owners. Of course, common courtesy is expected, so one would not expect other owners to park themselves on the lawn area directly in front of another owner s trailer or cottage. The shoreline is also common area. One issue which we believe is best addressed by the Owners Association is how moorings will be allocated to owners and whether owners will be allowed to beach certain smaller boats (sailboats, dinghies, paddle boats, etc.) on the shoreline. The Reed Family believes the smaller boats along the shoreline lend ambience to Marine Village, but beauty is in the eyes of the beholder. Per the Summary Rules and Regulations 70% of all owners would have to approve these issues with each Cottage having three votes and each Trailer Site one vote. 13. Will the property continue to be seasonal or year round occupancy? With the exception of Cottage #24 the cottages were not designed to be year round. Also, the water lines are not as deep in the ground as we would like since Marine Village sits on rock ledge. Thus, during the winter the lines in certain areas sometimes freeze and must be repaired. This is ongoing routine maintenance which is included in the annual maintenance fees. 14. Do you envision the need for special assessments to be levied on the owners? With the exception of the sewage system upgrade required by the environmental authorities, we have not had a situation over the 3+ decades of operation where we believe a special assessment would have been required. We only envision a special assessment would be required in the event of major acts of God such as hurricane strength winds causing major damage to the infrastructure, excessive lake levels (although the once in a 100+ years level of this spring did not result in major issues), severe ice storms, earthquakes, etc. Also, please note the Owners Association would have to approve any special assessment prior to it being imposed on the owners (see Summary Rules and Regulations). 15. Is the two story home on the point for sale? Will the maintenance and operation of this home be part of the annual maintenance fees? The two story house on the point is where our brother Phil lives. We have not made a decision on when or whether it will be offered for sale. The maintenance and living costs of Phil s home will not be part of the annual maintenance fees.
5 16. I may not be able to afford a cottage. What are the prices for the Trailer Site locations? Marine Village has four Trailer Site locations with Family owned trailers on them. The prices for these sites are: Without Trailer with Trailer #39 $35,500 $42,500 #41 $35,500 $42,500 #43 $35,500 $42,500 #54 $26,000 $33,000 Other Trailer Sites where people have indicated they do not wish to purchase range from $14,000 to $35,500 depending on the location.
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