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INCORPORATION UPDATE
On July 22, 2008, the Incorporation Committee made
history when the
Petition for Incorporation
was filed with the Hancock County Chancery Court
Clerk's office.
Through the work done by the members of the
Education Committee at the Town Hall meetings and
the many Petitioners who worked in the personal
contact phase,
signatures from over 75% of the voters in the
proposed area to be incorporated were obtained.
The Incorporation Organizational and Planning
Sub-Committee and the Petition Sub-Committee give a
much deserved "Thank You" to all involved for their
support, persistence, and hard work in this
endeavor.
A preliminary hearing has been scheduled on
September 15, 2008, in the Chancery Court in Hancock
County.
Certifying
Incorporation Petitions. Seated L-R: Dianne
Ackerman, Chuck Ingraham, Ron Rech, and Jerry
Peppenger, Notary Public. Standing L-R: Hank
Holcomb, Ernie Knobloch, John Yarbrough, Dick Brown,
Hilda Bourg, Ed Dabler, Audrey Ramirez, Tom McCoy
and Herman Zeringue.
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INCORPORATION UPDATE
DIAMONDHEAD---PAST, PRESENT,
FUTURE
INCORPORATION UPDATE
DIAMONDHEAD---PAST, PRESENT,
FUTURE
This article
represents a synopsis of how Diamondhead was formed,
the beginning of the POA and the legal requirements
of the POA, and a vision for the future of
Diamondhead.
In June 1970,
the Declaration of Restrictions, Conditions,
Easements, Covenants, Agreements, Liens and Charges
for Diamondhead, Phase 1 was legally filed. The
Covenants “run with the land and shall exist and be
binding upon all parties and all persons claiming
under them for a period of fifty years from the
date,” which means that the Covenants expire in the
year 2020. The Covenants govern residents’ use of
his/her property including the size of homes, green
space, permit requirements, boat and trailer
storage, pets, signs, architectural committee,
waterways, docks and piers, utility and drainage,
streets, etc. The document also states that each
property owner is required to pay all charges and
assessments that are levied by the POA. Copies of
the entire Covenants are available at the
Diamondhead Property Owners Association Office.
The property
report for HUD is dated August 1976, and, in
addition to numerous other statements, includes the
item that every property owner is responsible for
payments to the POA for maintenance and operation of
common facilities, streets, etc. The document states
that there was an original initiation fee of $500
for membership in the Diamondhead Yacht and Country
Club. Every property owner paid this fee. Another
item states that the Developer would be responsible
for the maintenance of the road system until it was
conveyed to the POA (not later than January 1, 1985,
nor earlier than January 1, 1976). The POA becomes
responsible for road maintenance after the
conveyance and “each lot owner will pay those
periodic assessments……,part of which will be used
for the maintenance of the road system.” FYI---as of
January 1, 1976, approximately 104 homes were
occupied.
Another item in
this report is titled “Yacht and Country Club.” Part
of this item includes statements that “Membership is
required for all lot purchasers. Members are
required to pay the monthly payments specified in
Item 7 c of this report and there is an initiation
fee of $500.” Item 7 c refers to payments to the POA
for maintenance and operation of common facilities,
streets, etc. This means that all property owners
are financially responsible for the operation and
maintenance of all common properties. Common
properties and amenities can be used
interchangeably.
In December
1984, the Supplemental Agreement, commonly referred
to as the Takeover Agreement, was officially signed.
In this legal document the developer, the Purcell
Corporation, turned over the common facilities
(guard houses, entrances, country club, pools,
tennis courts, golf shop, cart barn, driving range,
two golf courses, airport, yacht club, marina,
lakes, streets, etc. to the POA for one ($1) dollar.
The replacement value of the common facilities was
thought to be about $20 million at that time. As
part of this Takeover Agreement, the POA agreed to
continue “to manage, operate and maintain said
Common Facilities to the same standard as such
facilities and areas have been previously
maintained, operated and managed by Purcell.”
“Failure of the Association to operate and maintain
the Common Facilities to the standards hereinabove
set forth shall constitute a material breach of this
Agreement.” The POA is obligated to establish dues
at levels to satisfy this mandate. In another item
in this Agreement reference is made to the
expiration of the Diamondhead Master Covenants in
June 2020 and that this Agreement is also in effect
until 2020.
In the future
the only thing that is certain is that the existing
Covenants will expire in 2020. A minimum of 85% of
the POA members would have to vote positively before
2020 to change the Covenants as they are presently
written. Most people believe that a positive vote
will not occur. That means that the POA will still
own all of the common properties but would no longer
be able to collect dues. All common properties
(streets, golf, tennis, swimming, marina, airport,
etc.) would have to be maintained only through the
fees that are paid by the users of each facility.
Most people who have studied this have come to the
conclusion that this would result in the amenities
going bankrupt which would have a negative impact on
all property values in Diamondhead. Visualize what
this would do to our community. The common
properties have a replacement value of about $35
million today.
The city of Bay
St Louis has published maps showing that, once they
annexed the east side of Hwy 603 to I-10, their next
annexation would include the south side and business
area of Diamondhead. The east side of Hwy 603 is
now part of Bay St Louis. Long Beach is now studying
whether or not they can annex land north of I-10.
Most of the people who have studied the annexation
issue have come to the conclusion that at some point
in the near future a neighboring city will attempt
to annex parts or all of Diamondhead.
If a casino is
ever built on the south side of I-10, it’s probable
that an annexation attempt would be made
immediately. The December 11,2007, edition of The
Sun Herald has an article stating that the
Diamondhead Casino Corporation is in active
negotiations with several established casino
operators and hopes to make an announcement in the
near future. It has been suggested that we should
wait until an annexation attempt occurs before
starting the incorporation process. Annexation is a
relatively simple process where the annexing city
passes a proposal at a city council meeting and
then has their city attorney file a petition for
annexation in court. The court sets a hearing date
and then the court makes the decision about whether
or not to allow the annexation. Residents in the
proposed annexed area do not have a vote on the
issue but can fight the annexation in court.
Incorporation, on the other hand, is a very labor
intensive, time consuming process with various
checks and balances. It is not something that can be
done with the same ease as annexation.
Most of the
people who have studied the entire situation have
come to the conclusion that incorporation of
Diamondhead is the only way to protect our present
property values, continue our unique life style,
provide for an orderly process when the Covenants
expire, increase police protection, and effectively
deal with problems that are occurring as the
community approaches 10,000 residents.
If Diamondhead
incorporates, another city cannot annex any part of
the incorporated area. It has been suggested that
the newly incorporated city should immediately
assume responsibilities for all or most of the
amenities. In order to do that, negotiations among
the city, the POA and the Purcell Corporation would
have to occur. Since there is no city, negotiations
cannot occur. If incorporation occurs, city
officials could begin negotiations at an appropriate
time to begin the orderly takeover of operation and
maintenance of all of the common facilities before
the Covenants expire in 2020. The Purcell
Corporation is part of the process because they have
the right of first refusal to purchase any
lands/facilities that the POA might try to sell or
donate.
Each of us has
to look at the overall picture and then decide what
we think is best for Diamondhead. If you agree that
incorporation is the best option, you can sign the
petition at the Incorporation Office near the
Community Center between the hours of 9:00 – 12:00
noon every Tuesday and Thursday.
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