When: Wednesday, December 16, 2020, Time: 6:30 pm Where: Video/Teleconference

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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.

Issues

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.

Thank you,

GDRA Board of Directors

When: Wednesday, November 4, 2020 Time: 6:00 pm Where: Video/Teleconference

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When: Wednesday, October 14, 2020 Time: 6:00 pm Where: Teleconference

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Wednesday, Oct 7, 2020, 6:00 pm

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September 14, 2020

Board Statement Concerning the Play Date Lease Decision

Dear GDRA Members,

We did not make this decision lightly, particularly during the pandemic and school closures. As community members and parents we know that daycare is a great service to any community. This is not a decision any of us wanted to make; unfortunately, we did not find any alternatives. This is not a decision about Tyler and Play Date. It would apply to any daycare. We want the best for Tyler and the future of Play Date. We hope he is able to find a new location to continue Play Date’s School Age program.

Since March 2020, the HOA Board has devoted many meetings and hours of discussion to the issues of allowing a private daycare to use the clubhouse. These meetings were discussing a contract with a private business; therefore, they occurred in executive session as provided by law. This is to protect the privacy of the business being discussed. We reached out to legal experts, insurance experts, and HOA management consultants. After consulting with these experts, the Board determined it did not make sense to continue to allow this private daycare to operate in the common area. There were many factors that went into this decision, and the Board hopes that you will trust your elected directors who take their fiduciary obligations seriously. We as a volunteer Board did our best to weigh all of the information and consider the interests of the HOA. 

We informed Tyler of the potential issues in June 2020 and July 2020 and told him we were working hard to find a creative solution, but that we might not be able to find one. We continued to search for any kind of solution and proposed countless scenarios to the experts. There was no viable way to allow a daycare to operate in the clubhouse. For example, the options considered that might have made the daycare possible would have cost tens of thousands of dollars, or more, that all of the residents would have paid through assessments, and even then it would not have resolved all of the issues. Even if we chose to ignore the advice of the experts, continuing to host a daycare would incur significant ongoing financial and resource costs to the HOA.

After six months of trying to find a solution, it became clear that the GDRA does not have adequate resources to allow a daycare to continue using our facilities. A public statement was not initially made out of respect for Play Date and Tyler. We thought it best to allow him to control notification of families. We also wanted to make sure that we gave him time to try and find a new location and therefore did not end the lease until the end of December 2020.

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When: Thursday, August 13, 2020 Time: 6:00 pm Where: Teleconference

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