On March 4th, more than 50 Hidden Pointe residents attended a special meeting held by the Castle Pines North Master Association. During the meeting, the Master Association and Metro District provided detailed information about the three contracts Hidden Pointe has with CPN. Residents were given the opportunity to present their questions related to these contracts.

“Our goal for this meeting was to clearly communicate the intricate nature of the three contracts that Hidden Pointe has with CPN,” said Master Association President Linda Nuzum. “This meeting was not about the lawsuit. It was held to give homeowners the facts of the contracts and to provide a better understanding of Hidden Pointe’s relationship with CPN.”

As of press time, the lawsuit, which was filed by the Hidden Pointe HOA Board in September, 2003, continues to proceed toward court.

What are the Hidden Pointe contracts with CPN? The developer of the Hidden Pointe subdivision, which is outside the legal boundaries of CPN, signed three contracts to obtain services from CPN which include:

1984 Contract – Hidden Pointe contracted to receive water and sewer service from the CPN Metro District.

1999 Contract – Hidden Pointe agreed to become “associate members” of the CPN Master Association, paying the same yearly dues and receiving the same services as other CPN residents. The contract agreed on the goal of incorporating plans for a six-acre “Hidden Pointe” park into the 40-acre Coyote Ridge Park.

2001 Contract – Hidden Pointe transferred responsibility for building the six-acre Hidden Pointe park to CPN’s Parks Authority. They also transferred ownership of the land and all responsibility for maintaining the park to the CPN Metro District.

Most Hidden Pointe homeowners have indicated that their developer did not always inform potential buyers about the contracts. Some homeowners continue to question the contractual arrangements.

What is the lawsuit about? In September 2003, the Hidden Pointe HOA board filed a lawsuit asserting that Hidden Pointe residents cannot be obligated to pay the CPN Master Association dues as specified in the 1999 contract.

The Master Association responded that Hidden Pointe’s commitment to pay was an essential part of the 1999 contract and, without that promise to pay, CPN’s Parks Authority and Metro District would not have executed the 2001 contract to assume responsibility for building and maintaining Hidden Pointe’s park.

The dues in question are the $216 per year that all CPN residents and Hidden Pointe residents currently pay.

What is the legal status of this lawsuit?

Due to a backlog of cases in Douglas County District Court, it may be one or two years before a trial can be held. However, numerous legal steps are required to prepare for this trial.

To date, the Master Association attorney has gathered and analyzed all documents related to the case, and completed court filings, legal responses, and counterclaims.

The next step required by the court’s process is discovery. Both sides must present all of their information and name potential witnesses for depositions and trial.

The CPN Metro District and Parks Authority will be brought into the case, since they relied upon the 1999 contract as the basis for executing the 2001 contract, and the Parks Authority is the beneficiary of 70% of the dues that Hidden Pointe agreed to pay in the 1999 contract.

How much will this cost?

Since the inception of the case in 2003, the Master Association has spent more than $18,800 in legal fees to defend the Hidden Pointe lawsuit. The Master Association has budgeted an additional $30,000 for legal expenses for the balance of 2004. Funds for defending this lawsuit come from annual dues paid by all CPN residents and Hidden Pointe residents.

If additional funds are needed, the Master Association Board will determine whether to use reserve funds, or reallocate money from other budget categories. “It is disappointing to continue to see our funds used to defend this lawsuit,” said Nuzum. “Legal fees take away funds that could be used to further enhance our community.”

Nuzum said additional money allocated for landscaping along the major thoroughfares in the community may be delayed to provide additional legal funds. Budget figures are not yet available for the Metro District or Parks Authority’s involvement in the case; however, the Parks Authority would have to use funds directly from the parks capital fund.

Can this settle out of court?

The CPN Master Association attorney has proposed mediation to resolve the issue amicably, and avoid unnecessary and expensive legal fees for all parties involved. “It is certainly to everyone’s advantage for us to resolve this dispute out of court,” said Nuzum. “We are willing to come to the table and work with Hidden Pointe on a resolution.”

As of press time, the Hidden Pointe HOA Board had not responded to the requests to pursue out-of-court discussions.

What do most Hidden Pointe residents think about the lawsuit?

“Many individuals of Hidden Pointe have only recently become aware of the lawsuit. There are still residents I’ve talked with recently who were completely unaware of the litigation,” said Rita Coltrane, Hidden Pointe’s Delegate to the Master Association.

“A number of residents have initiated a petition requesting that the Hidden Pointe Board of Directors halt the lawsuit, allow Hidden Pointe to become full voting members of the Master Association, and expand the Hidden Pointe HOA Board to seven,” said Coltrane. “As of March 26th, approximately 54 percent of the homeowners had been contacted, and 90 percent of those contacted have signed the petition. The Hidden Pointe HOA Board agreed to call an April 22nd meeting to vote on expanding the Board to seven members. The HOA board currently has three members.”

How do I get more information?

http://www.cpnhoa.org/hiddenpointe/understanding/understandigHP.htm Read more, and view a copy of the presentation from the March 4, 2004 meeting about the three service contracts between Hidden Pointe and Castle Pines North. Click here for a copy of the 1999 contract

For more information, please contact the Master Association at 303-482-3078 or admin@cpnhoa.org.