The untouchables . . .

It seems that our elected board has managed to escape a self inflicted crisis unscathed and without consequence and with the continuing power to create new dramas some other day. This is Big Canoe.

Make no mistake, it is fortunate that the board’s threats to change the name of Big Canoe were thwarted by a passionate and involved community. Complete with shouts of recall, our board, as always, managed to traverse that rocky terrain unharmed, stronger and even more emboldened by their perception of themselves.

We are who we choose to be, and the property owners of Big Canoe are an extraordinarily forgiving bunch.

All the while leaving the Association’s board of directors and their often questionable judgment as the new guardian of the gateway to future trademark challenges.

And now, as promised by the POA President, the Association’s announcement (1) https://smokesignalsnews.com/news/big_canoe/the-big-canoe-trademark-and-3-canoe-logo-purchase-deal-is-now-officially-signed/article_13bae660-f1c6-4539-82d2-77fc284648bb.html included the specifics regarding the trademarks that have been purchased. While notably excluding the bigcanoe.com domain name, the purchase agreement also included “Big Canoe Realty” and “Big Canoe Brokerage” in the Association’s cache of ownership.

With this purchase, we as property owners can only hope that the Association will continue to protect these investments with the same care and diligence as that exhibited by the previous owners of the marks. Kudos to Mike Rhodes and Big Canoe Brokerage for that diligence.

Note: According to the USPTO, it appears that trademark infringement on the purchased marks and logos is restricted to real estate services, brokerage and management.

What? . . .

Meanwhile, a newly formed corporate entity has recently been organized and subsequently filed and registered with the Secretary of State under the name of “Big Canoe Realty”. (2) Now what is that about? And will the Association actively pursue the protection of the trademark as well as the rights assigned to Mike Rhodes in the license agreement documents if need be?

Secondly, it is unknown why the POA would enter into a transaction to purchase the “Big Canoe Brokerage” mark when there is no indication that the name or mark has ever been trademarked?

And lastly, “Big Canoe, ‘Absolute proof that where you live can make a difference in how you live’” is currently registered to Big Canoe Company, LLC according to the USPTO. Presumably this cloud on the chain of ownership was addressed and corrected somewhere within the Association’s, now secretive, trademark documents.

It appears this will be another wait and see.

But for now, let’s talk about those financials . . .

The 2024 year end financial statements were finally posted to the POA website following the March 27^th open board meeting. (3) This was certainly welcome news after many, many months of waiting. (At that time, the January and February packages were posted as well.)

And after an unacceptable, albeit usual, explanation for the delay was offered by the Director of Finance at the March meeting, the POA President, Vice-president and Treasurer each rallied around her and the remaining financial team. (4)

Meanwhile, we, as property owners, are now allowed to cast our eyes upon a three month old balance sheet reflecting the assets and liabilities of the Association as of year end. A quick glance first determines that the Association’s cash ratio continued to decline throughout the year with a year end ratio of only .56 compared to .83 at year end 2023, (3a) and this is before any of the yet to be determined expenses that will be incurred on Lake Petit dam.

Keep in mind, a ratio of less than 1.0 indicates that the Association does not have enough cash on hand to pay it’s obligations due within one year.

Note: In fact, when discussing the cash ratio at a March 2023 open board meeting, the GM accurately stated “you always want that to be over 1.00”. (5)

Additional Note: The significant improvement in the cash ratio as reflected on the February 2025 balance sheet is misleading as it has been skewed by the influx of $2.6 million cash drawn against the Wells Fargo line against prior year’s capital projects.

Another year end write down . . .

And just like last year when it was determined that a $100k adjustment had been made to food and beverage inventory after the GM’s January slide presentation of 2023 year end results, (6) https://bcmatters.org/circling-the-wagons-part-one/ a write down to Asset Disposal Gain/Loss was also recorded after the GM’s January presentation of 2024 year end results.

When the $40,156 adjustment was questioned via AskThePOA Ticket #16656, the Director of Finance explained that the write down was attributed to the 2022 Chimneys damage. She further stated that the POA had been notified by the insurance company in 2024 that they would not be releasing the additional proceeds as the building had not been renovated within 24 months. (7)

Note: It is unknown why management delayed the adjustment until after the January 2025 board meeting when the Association had been notified by the insurance company earlier in 2024 that they would not be releasing those proceeds.

A grim future for the Chimneys building . . .

And contrary to the previous promises from leadership, the insurance proceeds which were transferred to the Capital Fund in November 2023 to be held for Chimneys repairs have now been redirected to other capital expenditures. As further explained by the Director of Finance in her response, “The Board and management determined that due to the aging infrastructure and the significant money that would be required to upgrade the building to code, it was not a prudent business decision to invest further in the Chimney’s project.” (7)

Unfortunately, with that decision, it appears the building is now being allowed to waste away contrary to the Board’s own revised policy no. 152 which states that “The 1988 Declaration Article IV, Section 7 specifies the POA has the fiduciary duty to maintain and operate Common Property in a first class manner in the best interest of all Property Owners, both present and future.”

Note: It can not be forgotten that the Chimneys building along with two other buildings in the Village Core were part of the 2016 $9.4 million land purchase from the developer.

Another one bites the dust . . .

According to the year end capital reports (8), architectural/engineering fees associated with the now defunct postal project totaled $41,808. That item has now been removed from the 2025 capital reports. Appropriately so.

However, given that expenses on a canceled project would not ordinarily be capitalized, it can not be determined where these dollars were expensed on the year end financial statements. Perhaps, this is another Ask the POA question.

Better yet, perhaps this is a question for Mauldin & Jenkins.

Speaking of architectural and engineering fees . . .

It is indisputable, that A&E fees associated with the clubhouse renovation should be included in the total cost of the project. And yet, total A&E fees now projected at $325k have been intentionally separated all along from the clubhouse renovation costs as shown on the capital reports. (8) (9) This addition alone, carries the total renovation cost of the clubhouse to over $8 million without also accounting for the kitchen equipment, retaining walls, landscaping and so much more.

Further, management has concealed any evidence of the 2025 A&E fees on the financial slides presented to the board and the community. Rather than include the current year expenditures ($21,037) in the Renew Big Canoe costs (much less the clubhouse renovation), management instead threw the current year expenses into the “under $25k” category for ordinary capital replacements.

Not a good look. And clearly deceptive.

Enough said.

. . . . .

If you believe the information contained on this site is important, please continue to share and pass it on. And as always, feel free to contact me directly at thepcrosses@gmail.com for questions or further discussion. Meanwhile, take care and stay safe.

Patricia Cross

10438 Big Canoe

References:

One: https://smokesignalsnews.com/news/big_canoe/the-big-canoe-trademark-and-3-canoe-logo-purchase-deal-is-now-officially-signed/article_13bae660-f1c6-4539-82d2-77fc284648bb.html

Two: Big Canoe Realty, LLC, effective 2/06/2025, newly formed corporate entity

Three: December 2024 Financial Package, a) Comparative Balance Sheet, pg. 2

(POAwebsite>login>POA>financials>2024>December)

Four: Big Canoe POA Board Meeting, March 27^th, 2025, video on Youtube at 39:55

https://www.youtube.com/watch?v=ZC0wzkiDYBY

Five: Big Canoe POA Board Meeting, March 2023, video on YouTube at 32.40 https://www.youtube.com/watch?v=HYOhtHNgP3E

Six: “Circling the Wagons: Part One, April 2^nd, 2024, bcmatters.org, https://bcmatters.org/circling-the-wagons-part-one/