8-14-24 Golf Course | Deerfield TN POA

Deerfield News Connection

August 7, 2024

The Greens at Deerfield: Fields Development Company Inc. Lifts HOA Restrictions on Golf Course

Deerfield Resort Overview

Deerfield Resort, situated in Campbell County, Tennessee on Norris Lake, was established in 1986. Covering roughly 1,000 acres and featuring a golf course, the resort encompasses around 900 properties. Since its inception, the Fields Development Company has been responsible for creating and managing the Deerfield Resort Homeowners Association (HOA), which governs the resort.

Recent Changes to Golf Course Ownership

In April 2024, Fields Development Company and other parties issued a new deed for the golf course, transferring ownership rights to The Greens at Deerfield, Inc. This new deed removed the golf course from HOA restrictions, thereby excluding it from the resort and development standards that previously applied. This change is significant as it could potentially decrease property values for Deerfield owners if the golf course is sold and its new use does not align with community standards. Previously, all deeds included restrictions to ensure adherence to these standards and protect property owner values.

About the Golf Course

The Greens at Deerfield is an 18-hole golf course designed by professional golfer Bobby Clampett. Covering approximately 125 acres, the course starts at the entrance of Deerfield Resort and stretches about 1.5 miles inside the resort. The course, owned by The Greens at Deerfield, Inc., is a central feature of the resort.

Community and Property Impacts

The golf course enhances the beauty of Deerfield Resort with its rolling hills and green spaces, situated among single-family homes, condos, an airport strip, and commercial areas. Without HOA restrictions and zoning laws, there is a risk that the golf course could be sold or repurposed, potentially lowering property values and altering the community's character. According to the National Association of Realtors, properties in or near golf course communities typically see a 10% to 20% increase in value due to their attractive views and recreational amenities. Therefore, removing HOA restrictions could lead to undesirable redevelopment, adversely affecting the appeal and property values for owners within Deerfield Resort.

Adjacent Property Uses

The aerial map included here highlights the property uses surrounding the golf course, and is color coded as listed below. The color coding identifies both large landowners and a variety use types with multiple owners.

1. Golf Course: Labeled on the map by its name, “The Greens at Deerfield”, the golf course includes approximately 125 acres and is highlighted in green.

2. Fields Development Company: Labeled on the map by the owners name, “Fields Development Company” (FDC), this property is highlighted in orange. In total, FDC owns eleven (11) vacant residential parcels that are immediately adjacent to the golf course, ranging in size from .27 acres to 10.46 acres.

3. Single-Family Homes and Lots: The parcels that are highlighted in brown are single family residential homes and/or lots. These parcels are not identified by property owner name but by type of use. There are 60 parcels in total, including 32 homes located on the Golf Course.

4. Condominiums: Highlighted in yellow are two condominium properties. These parcels are not identified by property owner name but by type of use. The half circle property overlooking the Deer Harbor Marina includes 12 condominiums. The condo property on Wedgewood Lane, near the airstrip, includes 18 condominiums. In total, 30 condominiums are located on the golf course.

5. Airstrip: The airstrip is highlighted in lime green. This property is comprised of approximately 12.88 acres and owned by the Deerfield Flying Association, Inc.

6. Paul and Madeline Fields: Highlighted in blue is a property labeled on the map with the owners name, “Paul and Madeline Fields”. This property is located at the northern boundary of Deerfield Resort and wraps around the airstrip and hangars.

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Concerns and Legal Issues

The removal of HOA restrictions from the golf course is concerning for several reasons:

Family Ties and Conflict of Interest: Jim Fields, the golf course owner, is the uncle of Paula Fields LeJeune and Scott Fields, principals at Fields Development Company. This familial relationship raises potential conflict of interest issues, especially since Jim Fields is listed as the majority owner of Fields Development Company in the developer’s tax filings. If the developer’s actions benefit a family member at the expense of other property owners, it could be viewed as a conflict of interest.

Failure to Act in Best Interest of Property Owners: Removing the HOA restrictions violates legal and fiduciary duties. Developers and HOA boards must act in the best interests of property owners and the community. Making such changes without property owner approval neglects these responsibilities, undermining trust and democratic principles. This can lead to legal challenges and a loss of confidence in the community’s governance.

Lack of Transparency in Decision-Marking: The removal of restrictions lacked transparency, with property owners neither informed nor involved in the decision. This undermines trust in the resort's management. HOA communities are designed to be democratic, valuing property owner input and engagement in decisions. The absence of these principles in the decision-making process can lead to dissatisfaction and a sense of exclusion among residents.

Potential Impacts on Property Values: Removing restrictions could change how the golf course land is used, potentially lowering property values and disrupting the community’s character. Repurposing the land for commercial or another incompatible use can alter the neighborhood's aesthetics, making it less attractive to buyers. This can decrease market confidence and property values. Additionally, as the developer granted the golf course use of the private roads, increased density and traffic from new developments could strain local resources, further impacting property values.

Legal and Financial Concerns: A community with properties under different restrictive covenants can face financial and management issues. When Fields Development Company exempts properties from restrictions, fewer dues are collected, but maintenance costs for shared amenities remain unchanged. The HOA must track and manage properties with various rules, increasing complexity and administrative burdens. This can strain resources, leading to higher HOA costs and jeopardizing the financial stability of the association.

The Greens at Deerfield golf course is a key feature of the Deerfield Resort community, surrounded by approximately 91 properties owned by around 82 individuals. The issues with removing the golf course's HOA restrictions and the potential for repurposing the land could affect all property owners within Deerfield Resort, not just those immediately adjacent.

Without zoning laws, as in Campbell County, Covenants, Conditions, and Restrictions (CCRs) are crucial for maintaining property standards and community aesthetics. CCRs ensure consistency, protect property values, and preserve the overall look and feel of the neighborhood. These factors highlight the need for transparent and equitable decision-making to maintain the integrity and stability of the Deerfield Resort community.