Riverside Park Community Facilities Ownership Changes

Further to our recent email informing you of our intention to create an incorporated society (RPCF Incorporated) to own and operate the Riverside Park facilities, we would like to update you on what this will mean for you as a member.

Essentially there will be no change to your membership apart from the need to update your application form and set up a new automatic payment to the new bank account. The forms will be sent out to you shortly by mail. If you would prefer to receive them via email please contact Stephanie Davey on sdavey@infinitywanaka.com.

The subscription for membership will remain the same.

Infinity will establish the Managing Committee to get the Society underway and a Society AGM will be held in late September for all members to attend. We will let you know the date well in advance.

The newly created ‘Society’ (RPCF Incorporated) will effectively purchase the land, the buildings and all contents of the community facilities at Riverside Park.

The sale agreement is for $32,000 +GST. This means that the sum of $36,800 is owing to the previous owners of the facility – Riverside Residential Ltd. The loan will be repayable by 31/03/2021, with an interest rate of 5%pa, with the first three years from 31/03/16 being interest only.

Infinity expects to underwrite the facility for the next five years, at which stage the loan will have been repaid. After that it is expected that the number of memberships will fully sustain the ongoing costs of the facility, including a sinking fund. The sinking fund will cover depreciation and replacement costs.

As part of the underwriting agreement Infinity will be entitled to 35 votes until such time as the loan is repaid.

Infinity will continue to manage the day to day running of the facility for the next five years (or earlier if the Society rules it so). Management will include the upkeep and maintenance of the facilities, monitoring of memberships and all accounting services. Society members will ultimately take over these duties as they have at Infinity's earlier subdivisions of Far Horizon Park and Sunrise Bay. The facilities at both of these subdivisions are already successfully run by the members of the Incorporated Society.

There will be eight Life Memberships established which will be for recognition of services and contribution to the establishment of the Riverside Park sub-division and the facility. These have not been allocated at this time.

The maximum number of members will be capped at 427 plus 8 life members = 435. Each section owner at Riverside Park will be offered the opportunity to join, (if they have not already done so) however, if the membership is not taken up their opportunity for membership in the future will not be guaranteed as we will widen the membership area in order to achieve full membership.

We have copies of the loan agreement and budget and are happy to send these to anyone who is interested. Please contact Stephanie Davey on sdavey@infinitywanaka.com for a copy.

Please note that an incorporated society is authorised by law to run its affairs as though it were an individual and members will not be held personally liable for the society’s debts, contracts or other obligations which are lawfully entered into or incurred by the Society for the Society.

We consider this move to be a great step towards members having a real say in the running of the facilities and hope that if you have any questions at all you will contact us.

Best regards

Paul Croft
Managing Director