The Origins of SMR

Skyline Mountain Resort was established in August 1965 under the name Sports Haven International as a private mountain recreation community dedicated to hunting, camping, and seasonal leisure. Members purchased non-deeded parcels where they could build cabins or camp while enjoying the beauty of the Manti-La Sal Mountains. Over time, the community expanded with amenities including a clubhouse, rental cabins, RV sites with hookups, a swimming pool, tennis courts, and eventually a 9-hole golf course completed in 2005. In 2015, individual deeds were issued to members, formalizing lot ownership. What began as a seasonal mountain resort has since evolved into a vibrant and diverse community that continues to serve hundreds of seasonal property owners while also supporting a substantial and growing population of full-time owners.

Over the years, the community has evolved, but its governing structure has remained largely unchanged. Today, a single homeowners association is responsible for managing three fundamentally different functions:

A Seasonal Community

A Full-time Community

A Resort Business that operates and manages the recreational amenities

While this model may have been appropriate when Skyline was first established, it has become increasingly difficult to manage as the community has grown and diversified. Rather than one large organization attempting to govern every aspect of Skyline Mountain Resort, the proposal establishes three entities that work together.

Skyline Mountain Resort Governance Reorganization

The Three-Entity Governance Model

1. Seasonal Homeowners Association

The Seasonal HOA would govern the seasonal part-time lots.

• Seasonal board director and elections

• Seasonal recreational lots

• Seasonal roads and infrastructure

• Seasonal CC&Rs and architectural standards

• Seasonal finances and budgets

• Community services specific to seasonal owners

This HOA would focus exclusively on the interests and priorities of seasonal property owners.

2. Full-Time Homeowners Association

The Full-Time HOA would govern the year-round full-time lots.

• Full-time board directors and elections

• Full-time lots

• Full-time roads and infrastructure

• Full-time utilities and year-round services

• Full-time CC&Rs and architectural standards

• Full-time finances and budgets

• Community services for full-time owners

This HOA would focus exclusively on the interests and priorities of full-time owners.

3. Skyline Resort Operations Organization

The third entity would be responsible for operating and maintaining Skyline's shared recreational amenities.

• Golf Course

• Swimming Pool

• Cabins

• RV Park

• Tennis Courts

• Resort Office

• Entrance roads

• Other designated common resort amenities.

The Resort Operations Organization would operate with its own:

• Board of Directors

• Annual operating budget (collected fees

• Financial statements

• Reserve planning

• Employees and contractors

• Professional management

Its purpose would be to preserve and improve the recreational amenities enjoyed by all Skyline property owners.

Shared Ownership of the Resort

The Resort Corporation would not own any lots. Instead, ownership of all lots would remain with the Seasonal and Full-Time HOAs within their respective boundaries based upon the established snow gates. Each HOA would be responsible for managing and administering lot ownership, sales and collecting fees and managing the finances within its designated area as needed.

The Resort Corporation would be jointly owned and governed by the two HOAs based upon the number of lots within each association.

This structure preserves each member's ownership of the Resort's amenities while establishing two independently governed HOAs and a separate organization responsible for the operation, and management of the Resort's shared amenities.

Resort Governance

Oversight of the Resort Corporation would be provided by a Board of Directors selected by the two HOAs.

Board representation would be proportional to the number of lots represented by each HOA.

This allows both communities to participate in overseeing the Resort while ensuring representation reflects each association's ownership interest.

The Resort Board would focus solely on the management and long-term success of the Resort's recreational assets.

Resort Financing

The Resort Corporation would prepare and manage its own finances and annual operating budget.

Operating revenue would come from sources such as:

• Golf operations

• Cabin rentals

• RV Park

• Pool operations

• Recreation fees

• Other Resort income

If operating revenues exceed expenses, any surplus will remain with the Resort Corporation and be reinvested into the maintenance, improvement, and enhancement of resort amenities.

If operating revenues are insufficient, the remaining funding requirement would be shared between the Seasonal and Full-Time HOAs according to their proportional ownership.

Each HOA would then determine how those costs are allocated among its members in accordance with its own governing documents. This creates transparency while ensuring that both communities continue to support the amenities they jointly own.

Why Reorganize ? -- The proposed Governance Reorganization is intended to accomplish several important objectives.

Better Representation

Each community would govern its own affairs without one group permanently controlling decisions affecting the other.

Clear Responsibilities

Governance and resort operations would be managed independently by organizations specifically designed for those purposes.

Financial Transparency

Separate financials and budgets for each organization would make it easier for owners to understand how funds are collected, spent, and managed.

Greater Accountability

Each organization would focus on a well-defined mission with clear responsibility to its members.

Long-Term Stability

As Skyline continues to grow and evolve, this governance model provides a structure capable of adapting to future needs while preserving the recreational amenities that make Skyline Mountain Resort unique.

Shared Infrastructure, Access, and Operations

Certain infrastructure and services within Skyline Mountain Resort are shared across Seasonal HOA, Full-Time HOA, and the Resort Corporation. These include main access roads, gated entries, waste disposal areas, burn piles, and designated recreational access routes. To ensure fairness, safety, and continuity of access, these shared systems would be governed through a formal Shared Operations and Access Agreement between the three entities.

Important Points Every Member Should Consider

1. Skyline has outgrown its original "one size fits all" governance model.
Skyline Mountain Resort was originally designed as a seasonal recreational community. Today, it includes a large and growing population of full-time owners. As the community has evolved, managing two distinct groups under a single HOA has become increasingly complex.

2. Seasonal and full-time owners have different priorities.
Seasonal owners may understandably resist funding infrastructure and services—such as roads, snow removal, water systems, utilities, and other year-round needs—that they rarely use.

3. The full-time community continues to grow.
A significant number of owners now live at Skyline year-round, and that number continues to grow over time.

4. The current voting structure creates a permanent imbalance.
Seasonal owners hold a voting majority and can consistently determine outcomes, even on issues that primarily affect full-time owners. A sustainable governance structure should allow each community meaningful control over matters that directly affect it.

5. Fairness concerns apply to both groups.
If full-time owners held the majority, seasonal owners would likely seek greater independence as well. The issue is not which group has more votes, but whether one group should permanently govern another group with different needs and priorities.

6. Interest in having a better governance continues to grow.
More than 100 members have already expressed support for exploring ways to improve SMR.

Conclusion --

Skyline Mountain Resort has evolved into a community with distinct seasonal and year-round interests, making a single, one-size-fits-all governance model increasingly difficult to serve all members fairly and effectively.

Rather than dividing the community, this proposal reorganizes the current master association into three coordinated organizations: independently governed Seasonal and Full-Time HOAs, together with a Resort Corporation responsible for the operation, and stewardship of Skyline's shared amenities and infrastructure.

This structure preserves shared ownership of the Resort while providing clearer governance, greater accountability, and a more sustainable foundation for the future. By aligning responsibilities with the unique needs of each organization, Skyline Mountain Resort can continue to thrive as one community with a governance model designed to support its continued growth and long-term success.

**All contracts, covenants, and governing documents should be interpreted with due consideration for future growth, changing conditions, and circumstances that may not have been reasonably anticipated at the time of their adoption. The absence of an express provision authorizing separation, reorganization, or restructuring should not be construed as a prohibition against such action. Rather, it reflects the practical reality that no governing document can foresee every future contingency. Accordingly, communities must retain the ability to amend, adapt, and restructure their governance arrangements.