7-14-24 Fields Reduce Size of Deerfield

Deerfield News Connection

July 14, 2024

Fields Development Company CCR Exemptions Reduces

the Size of Deerfield Resort by More Than 20%

The recent amendment to the Covenants, Conditions, and Restrictions (CCRs) of Deerfield Resort has led to some confusion. Some residents wondered why properties they knew to be owned by Fields family members or companies, not Fields Development Company, were identified on the map attached to the amendment as “developer” property. (Link to 5-2-2024 CCR Amendment)

Upon closer review, the CCR amendment exhibit included properties not only owned by Fields Development Company but also owned by other family-owned companies and Fields family members. These include Fields Real Estate, Rae Alan Properties, Scott and Lisa Fields, and Paul and Madeline Fields. Also identified were two parcels on their map not listed in the records of Campbell County, Tennessee. Those parcels are listed below as The Greens at Deerfield (Link to deed) and the greenspace at the top of Big Pine Point, which is estimated to be approximately 1.07 acres in size.

In response to questions about the CCR exhibit map, the previous Connection newsletter listed properties owned by Fields Development Company and other Fields family companies or family members. This was done to help Deerfield Resort property owners understand the ownership of all the properties identified in the CCR amendment exhibit, as the exhibit included more than just the properties labeled "developer." That information is summarized in the table and aerial maps below.

In the CCR amendment, by combining all property owned by other Fields family companies and family members personal properties with their corporate property, Fields Development Company effectively expanded their Deerfield Resort holdings from 42.57acres*

(4.26% of the resort) to 84.02 acres (8.40% of the resort)**, nearly doubling their current ownership.

Impact of Recent Land Amendments

Deerfield Resort has been described by Fields Development Company as covering 1,000 acres. Following recent changes, including the removal of the 123-acre golf course from the HOA community (Review the Golf Course Connection), and the CCR amendment removing all Fields-owned property totaling 84 acres from the resort (Review the Hearing Connection), the total community area now stands at 793 acres. This reflects a reduction of more than 20% from the 1,000-acre resort.

Residents recently learned that Fields Development Company effectively exempted the campground and surrounding area, totaling 57.5 acres, from the resort. (Review the Campground Connection) This was surprising to most residents who believed that everything beyond the guard house, and accessed by private streets, was part of the Deerfield Resort HOA. As Fields Development Company has not provided a boundary survey or legal description for the HOA community, it is not clear whether the 57.5-acre area was included in the 1,000-acre description. If it was, this would mean that another 6% of the community would be exempted, totaling more than 25%.

In each of these exemptions from restrictive covenants, Fields Development Company authorized the right of these property owners to use private streets while not being required to pay dues to support the upkeep. The table below summarizes the areas exempted from Deerfield Resort in 2024.

Exemptions Create Financial Strain on HOA

The removal of properties interspersed throughout Deerfield Resort poses significant challenges for HOA management. With these properties no longer contributing to Deerfield Resort funds, there is a resulting increase in

per-member maintenance cost responsibility for the private roads. Moreover, the loss of revenue could strain financial resources earmarked for general maintenance, repairs, and community upgrades, necessitating budget revisions or higher dues for remaining members to offset the shortfall. Adjustments in community services, such as landscaping, security patrols, and recreational facilities maintenance, may also be required due to reduced funding, impacting the overall living experience and property values within the resort.

What We Learned

Exemption from Restrictive Covenants: Fields Development Company and other family-owned business and personal properties, totaling 84 acres representing more than 8% of Deerfield Resort, are now exempt from restrictive covenants, allowing them to develop their properties without adhering to community restrictions. This may introduce multifamily homes, tiny homes, campgrounds, or other incompatible developments, impacting the community's character, traffic patterns, and property values.

Significant Property Impact: The unilateral actions by Fields Development Company, taken without property owner knowledge or consent, has exempted more than 20% of Deerfield Resort from restrictive covenants, significantly altering property rights and values. The lack of input from property owners underscores the need for greater transparency and stakeholder involvement in community decisions.

Financial and Management Challenges: The removal of these properties from the HOA community by Fields Development Company, acting in its own best interest rather than that of the community, poses financial and management challenges. These challenges include potential budget strains and adjustments in community services. This highlights the importance of transitioning HOA control to property owners to prevent the Fields Development Company from continuing to prioritize its own interests and to ensure governance that protects property values and fosters community stability.

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* Currently, Fields Development Company owns 41.50 acres when the common areas are removed. For the purposes of this estimate, the 42.57 acre number includes the entire pool property, as it has not been split to separate the pool from property that may remain with Fields Development Company.

** This calculation is based on the Fields Development Company’s description of the Deerfield Resort as including 1,000 acres.