Creekside Homeowners Association owes developers $422,789
The Creekside Homeowners Association is to pay $422,789 to owners of a nearby golf course following an unsuccessful lawsuit against the club.
As the dominant party, the club’s owners – developers Larry Tokarski and Terry Kelly – are entitled to be reimbursed for their legal fees and expenses, a Marion County judge recently ruled.
The homeowners association also spent at least $240,000 on its own legal fees in the lawsuit, which sought to stop Tokarski and Kelly from redeveloping the 18-hole championship golf course in South Salem into a housing development. 354 houses.
That’s a total of $1,127 for each of the association’s 588 owners.
Now, a Lake Oswego bank has filed a lien on all present and future assets of the association, including future association dues.
HOA Board Chairman Don Wildfang did not respond to an interview request.
The golf course and the neighborhood were developed together but have no legal relationship, and most owners are not members of the club.
Yet the association’s board opposed the developers’ plan to close the course, saying the land they had purchased was advertised as part of a golf course community.
In their lawsuit, filed in April 2016, they said the covenants, conditions and restrictions (CCR), registered in 1992, ensured that a golf course would continue on the property.
The case went to trial in January 2017, and in May 2017 a judge ruled in favor of the club owners. The association appealed, seeking to overturn the decision. She is also appealing the award of court costs, said Chris Tingey, the association’s attorney.
In February 2018, Tokarski and Kelly filed a separate lawsuit against the homeowners association and each of its six board members.
They say the board members, who all own homes overlooking the golf course, illegally used the association’s reserve account to fund the first lawsuit. This put the association out of business, increasing the monthly assessments of other owners, including Tokarski and Kelly, the lawsuit says.
The lawsuit asks the court to remove the board, put the association into receivership and order the board members to personally reimburse the association for legal costs.
The owners of the golf club put development plans on hold as club members worked to make the business more profitable.
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