Covenant Consolidation
Better Representing Landowner Interests
Living in a covenant-protected community can have several benefits. The River Ridge Ranch covenants establish the structure to allow for the collection of dues, the provision of services, maintenance and upkeep, to uphold community standards, and, hopefully, increase property values.
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Please review the information below and provide your direct proxy to proceed through the covenant consolidation project.
Jump to Section: Overview | Consolidation Process | Proposal | Voting | Directed Proxy
Status of Ranch Covenants
Established nearly 25 years ago, River Ridge Ranch was developed in six different phases (see Phase Map). Rather than merging all phases into one, the developer filed six different sets of covenants with Huerfano County, resulting in six different governing documents for The Ranch. Although the documents are nearly identical, having six sets of covenants is extremely problematic when it comes to making revisions or updates to address current needs and modern issues on the Ranch.
Throughout Spring 2023, the Board of Managers (BoM) worked with our attorney to draft a proposed Amended and Restated Declaration of Covenants, Conditions and Restrictions of River Ridge Ranch Landowner’s Association, Inc. (“A&R Declaration”). Consolidated covenants will ensure all landowners are governed by one set of rules and allow for a streamlined process for further amendments.
Over the years, many efforts have been made to alter or clarify the language in the covenants to better represent landowners’ interests. Multiple attempts to merge covenants and address clarifications or alterations have failed, largely due to the fact that few landowners are residents on the Ranch. Most landowners are remote, don't relate to the day-to-day "ranch life" and have been difficult to reach.
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We are urging ALL landowners to participate in this process to help us streamline and enhance our current governance documents. As outlined below, a directed proxy vote will allow YOUR vote to be heard, from wherever you are in the world. Whether you reside on the Ranch, hope to build a dream home here one day or have simply invested in property, ensuring the covenants reflect the interests of landowners is vital to making River Ridge Ranch a highly sought-after community.
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Consolidation Process: 2 Phases
1
Consolidation
Phase 1: This phase ONLY entails consolidating the set of six covenants into one document. Edits during this phase are minimal, as outlined below.
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The consolidation phase will simplify the process and expense for subsequent revisions.
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A directed proxy process for voting will be utilized in connection with Phase 1 to help accommodate the need to reach non-resident landowners.
The in-person vote for those able to attend will be the Annual Landowner Meeting on April 20, 2024.
2
Amendments
Phase 2: If and only if the proposed A&R Declaration is approved by 80% of the landowners in each phase, we will begin
the process to amend the covenants.
This second phase of the process entails gathering landowner input to guide any proposed amendments to the consolidated covenants. We will utilize discussion groups on the new website to gather ideas and feedback on any proposed future amendments.
Once ideas have been gathered, the BoM will consolidate any feedback and create a ballot for landowner approval
and begin the voting process.
Proposed A&R Declaration
The covenants for all six phases are virtually identical, thus very little will be amended through the merger. The specific changes for the proposed A&R Declaration, designed to bring the covenants up to current industry standards and into compliance with applicable law, are outlined below:​
One Document
Provide that all Phases in the Community are governed by one Declaration of Covenants, Conditions and Restrictions.
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Consolidating the six existing phases into one, simplifies the process and expense for subsequent revisions.
State Laws
Update provisions to comply with current state law, such as Sections 3D and 4C.
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Remove provisions that do not comply with current state law.
Voting %
Update provision 4A to change the percentage of landowner approval required to amend the covenants from 80% to 67%.
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Many landowners are located outside of the area and can be difficult to contact. Future revisions will be challenging to pass at even the proposed 67% supermajority.
Declarant
Remove declarant (original developer) "boilerplate" language that is no longer applicable, including references to the declarant’s development rights and control of the Board of Directors.
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Add provisions that reflect the current state of the community, modifying Section 1A and 3H to reflect the previous changes made by the Declarant to lots within the community.
The "Proposed A&R Declaration" will become the unified set of covenants if approved by landowners.
The "red line edit" provides a detailed history of the merging of the six sets of covenants.
Voting Requirements
The vote on the proposed consolidation will take place in-person at the annual Landowner’s Association meeting in April 2024. Since the majority of landowners do not live on the Ranch, our attorneys have recommended utilizing a “directed proxy” method of voting. The proxy allows each landowner to instruct a proxy-holder how to vote on their behalf. The “directed proxy” process will allow us to gather proxy forms starting now, in advance of the vote.
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As dictated by our current governing documents, in order to proceed with condensing the six documents into one, the consolidation must be approved by landowners holding at least 80% of the total votes for EACH phase. If any of the six phases do not reach the 80% approval, the consolidation process fails.
Directed Proxy
Below is an online Directed Proxy form that allows you to instruct the proxyholder how to vote on your behalf for each proposal at the meeting, which will ensure your vote is counted whether you are able to attend or not.
Reaching the 80% approval mark for all landowners is going to be a daunting task. To manage the overall campaign and ensure all votes are cast, we are asking that all landowners return the Directed Proxy even if you are planning on attending the meeting. (If you are able to attend, we will simply void your proxy.) This will allow us to keep track of responses and know who we need to continue trying to reach.
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To make sure everyone who returns a proxy gets their vote counted, we are providing a list of fellow landowners who are committed to attending the April 2024 meeting to cast the votes for proxies they have been assigned. You are free to choose any fellow landowner to assign your proxy to, but we still request that you return your proxy to the BoM so we can track the vote.
Questions?
If you have questions about the Covenant Consolidation process, need clarity on any of the changes, or experience technical difficulties with the Directed Proxy form, please contact the LOA Board of Managers.
Get Involved
We need YOUR support to help make this effort a success. Volunteer to be a Phase Champion and help contact other landowners within your phase that have not submitted their forms. If you're local, we would love your help putting mailings together. Contact us to sign up or learn additional ways you can get involved.
Stay Up-To-Date
To receive updates regarding the Covenant Consolidation as they are available via email, be sure to create an account. This will add you to our e-mail list, and you will have access to join in on covenant-related conversations on the discussion board.