BRADENTON BEACH – Pines Trailer Park residents will have to pay $250,000 more than they expected should they decide to purchase their park from the owner.
Residents met again on March 15 to discuss their ongoing efforts to cooperatively purchase the 2.78-acre waterfront mobile home park property. The meeting at the Pines Trailer Park community building was open to residents only, who were presented with a seven-page document titled, “Join your fellow residents as we purchase The Pines.” The document, presented by Lifestyle Choice Realty Inc., notes its preliminary nature and says, “Numbers are subject to change as more information is obtained.”
Another meeting is scheduled on Wednesday, March 29.
In late January, the Jackson Partnership LLLP ownership group informed park residents and the residents association of their desire to sell the mobile home park. Under state law, potentially impacted mobile homeowners must be given the first opportunity to purchase a mobile home park property before it can be offered on the open market.
According to the financial document presented on March 15, Jackson’s original asking price has increased by $250,000, from $16 million to $16.25 million.
The park contains 86 individual mobile home lots, according to the document. Those lots are currently owned by Jack- son and monthly rent is charged for the use of each lot. The park has a shared community building that would also be part of the sale and the park owners hold riparian rights that allow for boat dockage along the east end of the park.
The document assumes each single share of the park would sell for $200,000, plus an additional $1,000 in closing costs for each lot. It also provides a breakdown of the anticipated costs per ownership share. A shareowner who makes an initial $20,000 down payment would then borrow $181,000. Their monthly share payment would be $1,513, plus a $325 monthly maintenance fee, for a total monthly cost of $1,838.
The document cites an assumed 8% fixed interest rate amortized for 20 years. With the current $16.25 million asking price, the document proposes a $10 million loan that would result in a $6,250 remaining balance due for each lot – to be paid by the mobile home owner or the park co-op.
“For those of you who buy in, there will be no more rent and no more rent increases. Instead, you pay a monthly maintenance fee based on the cost to operate the park and a budget the owner’s association has approved,” the document states.
The final page of the document is titled, “How a resident-owned community works for you.”
The document describes a resident-owned community as “a community in which the residents have joined together and purchase their community from the landlord/owner.”
Regarding the initial organization of a resident-owned community, the document says, “Lifestyle Choice Realty recommends such communities be organized through a residents’ cooperative. It is the method favored by most residents.” Resident cooperatives are non-profit corporations owned by the residents who chose to participate.
“Lifestyle Choice Realty recommends cooperatives for two reasons. First, the initial purchase is faster and easier because the cooperative buys the entire community, eliminating the need to survey and subdivide each individual lot. Second, the cooperative operates through its board of directors, a group of residents elected by all participating residents,” the document states.
The document notes an existing mobile home and its associated cooperative share can be sold to another buyer.
It also addresses what happens if a resident chooses not to buy into the cooperative.
“In that case, the resident’s current lease agreement and prospectus remain the same. The main difference is the resident pays rent to the cooperative and will not be allowed to vote in how the park is operated.”
One meeting attendee, who wished to remain anonymous, said the Pines residents remain “cautiously optimistic” that the cooperative purchase of the park can be accomplished, but nothing had been finalized yet.