Play Date Summary Timeline and Issues (Dated 11.11.2020)
Per GDRA Member’s request, the Board wishes to provide additional details beyond those included in our statement of September 14, 2020, which is posted on the GDRA website.
Since approximately March 25, 2020, the Board devoted many meetings, hours of discussions related to day care at the clubhouse, trying to find resolutions to keep daycare at the clubhouse.
Over the following approximately two months (April and May), the Board reached out to legal, insurance and HOA consultant experts. Once it appeared it was not in the best interest of the entire HOA to allow a private day care to operate in the common area, the Board invited Tyler Ross, Play Date owner to the June 11, 2020 Executive Session Board meeting to discuss this matter.
Between June 12 and 18, 2020, Tyler and staff had many communications about insurance information.
On June 12, June 30, July 8, and September 4, 2020, Board members had additional discussions with Tyler. These discussions included the high possibility of terminating his lease, and the issues for which resolutions could not be identified.
Some of the main external issues contributing to the lease decision include:
- whether this type of commercial activity is compatible with a purely residential homeowners association;
- concern that the new exclusions placed on the Association’s insurance coverage mean that Members’ assets are at risk in the event of any (now uninsured) claim. In April 2020, we were unable to renew our existing insurance due to having a day care operation on premises. At a higher cost we were able to obtain excess liability coverage, but with several exclusions to the coverage. Those exclusions were disclosed in a mailer to all Members dated October 25, 2020;
- concerns related to the ongoing coronavirus pandemic, which is not only a risk to community health but is also excluded from insurance coverage;
- concern that sponsoring a private business providing services to the general public requires several types of legal compliance, including some with high costs and risks that do not apply to use of GDRA property and facilities by Members only.
The Board discussed these and contract-related matters in executive sessions and made the decision to discontinue leasing space to Play Date on August 13, 2020. The Play Date specific aspects of those decisions are confidential for the protection of the lessee, which is in compliance with the provisions of the Davis-Stirling Act governing the actions of homeowners associations.
Additional information could be released at Play Date request under conditions that protect both Parties’ interests.
The Board is currently working with a Clubhouse Use Advisory Committee to identify resolutions to the issues that contributed to the lease decision and make recommendations on whether and under what conditions the Board should consider issuance of a new lease, and what the lease time period should be.
GDRA Board of Directors