November 30, 2019

Mr. Starke,

Thank you for the quick response. It’s unfortunate my Association’s dollars are being spent on legal fees to refuse my request to inspect our Association’s finances. The big shocker was in your third paragraph. You state I am not a member of Lotawana Properties, LLC. meaning the Lake Lotawana Association Inc. is not a member and/or owner of Lake Lotawana Properties LLC. Since early 2017 the Association has falsely led our members to believe we do own the Marina.

• On March 7, 2017, our Association President wrote “I am pleased to announce that on February 22, 2017, I signed an agreement on behalf of the Lake Lotawana Association to begin the process to purchase what is commonly known as the Marina Grog and Galley. The purchase price for the properties is 1.5 million dollars. The Association has decided to finance this purchase with a local bank.”

• In the Lotawana News March 22, 2017, Association News column our executive director wrote “In other news, the Association is purchasing the property called “The Marina.” This purchase provides the Lake community numerous important benefits.”

• On the Jackson County Recorder of Deeds website there is a Deed of Trust dated April 12, 2017 which states the word “Borrower” means Lake Lotawana Association Inc. and Lotawana Properties, LLC both located at 10417 E Thompson Road. The document indicates the borrower has a variable interest rate loan from Central Bank for $1,206,846 for the property commonly known as A22.

• At our Association budget meeting on November 12, 2019, both our Executive Director and Treasurer each stated that our Association does own Lotawana Properties LLC.

Our Association members are responsible for a $1.2M loan for the A22 purchase yet we don’t own the LLC. Our President, Treasurer and Executive Director have stated publically and in writing the Association bought the marina and continue to own it. How can this be anything but fraudulent?

Who do you represent Mr. Starke, the Association or Lotawana Properties? You cannot act as counsel for both. The members of the Association thought we owned the LLC. The Association should not be paying your fees for LLC work. Who is the owner/members of the LLC? If it’s a member of the Association that’s clearly a conflict of interest. If you are representing the LLC or individual officers and/or directors you should not be responding on behalf of our Association.

During the November 12th meeting our Association’s Executive Director stated the 2018 audit was complete and any member can have a copy of the audit. Another false statement based on your letter refusing my request. It’s doesn’t seem right that our member’s dollars are being spent on legal fees to refuse to provide Association owners with financial and legal records. To be honest I had to Google the term ‘reasonable particularity’. I learned it means with enough detail to serve the purposes of the situation involved. Therefore I will provide you and our board of directors with more detail in this third attempt. Inspecting the requested documents will allow me to have a complete statement of the Association’s financial condition which the Board of Directors has failed to do in 2017, 2018, and 2019 as required within our bylaws, Article II Section 1. They have failed to present a complete statement of the Association’s financial condition by omitting all dollars spent by the Association on or at the A22 property owned by Lotawana Properties, LLC including, legal fees, taxes, down payment for the property, improvements, equipment, staff time, permit fees, operations staff labor, repairs. Lotawana Properties, LLC owes this money to our Association. As evidence of this omission, Our Executive Director stated at the Nov 12th meeting he and other members of the staff spend some time managing the Marina property. I personally have seen Association operations staff working at the property. The LLC owes the members of the Association for all dollars, time, and materials the Association has spent on the Marina property. Inspection of the requested documents will allow me to determine the dollars the Association is owned by the LLC. Our Ways and Means Committee is in violation of bylaw Article VII Section 3 by continuing to omit the budget of expenditures for all dollars spent on Lotawana Properties, LLC. Inspecting the requested documents will allow me, and our members to accurately understand the Association’s expenditures at and for the LLC. In accordance with Article VIII Section 2, the Board of Directors has a legal obligation to present a budget to the membership each year. Our board has violated this bylaw by failing to gain member approval for Association dollars, time, labor, etc, spent at or on A22 and Lotawana Properties LLC. After inspection of these documents we will be able to present an accurate budget to our members. As legal counsel for our Association Mr. Starke I’m sure you are in favor of our Association providing accurate accounting practices and financial reports to our members. As our Association’s counsel, I would also expect you to support my efforts to provide our members with an accurate accounting for all dollars our Association has spent on or at Lotawana Properties, LLC the past three years.

Thank you,
Kymberli Cutler, Lake Lotawana

1 Comment

1 Comment

  • Jim

    December 4, 2019 - 6:05 pm

    I agree Something seems wrong with the purchase of the marina.The association asks for a vote for an assessment but no vote to spend 1,5 million on the marina.

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