TRANSITION FROM PULTE TO ANTHEM RESIDENTS BOARDS

An important chapter in the history of Anthem is beginning - the transition from developer control to owner control of the community and the homeowners associations. In the six or seven years since Del Webb first started this award-winning development, Anthem has already become a small town of approximately 28,000 people, complete with supermarkets, huge commercial development, four elementary schools, a high school, a library, churches, restaurants and community organizations. Build-out is expected to be completed by 2008 (Country Club in 2007 and Parkside in 2008), and efforts are currently being undertaken to completely turn over control of the Anthem Community Council and the three homeowners associations to resident homeowners.

Homeowners Associations

Up to now, there were only two elected board members on the Country Club and Parkside boards. Pulte assigned enough representatives to serve as Directors for the various homeowners associations to maintain control of the boards. The individual HOA boards contracted with management to handle the day- to-day operations of their community, to enforce policies and to enforce the governing documents of their associations.

Elections have taken place and new boards that will be comprised solely of owners in the Anthem community will be seated in April at the Parkside, Country Club and Village Associations. The homeowners associations will interact with the residents of their separate communities and will be responsible for the assets of their community as well as its operations and preservation of the common elements. In order to help residents understand and prepare for this transition a Leadership Symposium is being conducted to encourage ideas and participation in the changes to these governing bodies (see below).

Anthem Community Council

The Anthem Community Council and its board of directors give guidance to the community associations and oversee the management and operations of the assets in the common areas that are not a part of any of the separate communities. There are currently seven members on the board - three homeowner representatives that were appointed by Pulte/Del Webb and four developer representatives. The Council will be seeking two additional candidates from Parkside to expand its membership to nine representatives. In December 2007 the Anthem Community Council will hold its elections. With this election, the transition from developer representation to all-resident representation will be complete. The nine-member lineup will consist of three representatives from Parkside, three from Country Club, one from the Village condominiums, one commercial property owner and one at-large appointment.

Who Does What

Each community association is responsible to protect and administer their neighborhood's interests, such as pocket parks in Parkside and security gates in Country Club. The Anthem Community Council owns the major assets, such as the Community Center and the Community Park, and will represent the entire Anthem community as a whole; for example, when it intervenes in the water rate increase proposed by Arizona American Water (see story below).

Current Boards' Roster

Anthem Community Council

Anthem Parkside Community Association

Anthem Country Club Community Association

Villages at Anthem Condominium Council of Co-Owners

Get Involved

The transition from developer control to homeowner control is, of course, a work in progress and changes can be expected as necessity dictates. To ensure a smooth transition that is in the best interest of the homeowners, input will be needed from the people who live and work in the community as the various boards that govern Anthem take shape. To that end, the board members encourage everyone to attend board meetings, read, learn and get involved. If you can, take part in the Leadership Symposium. Being informed and involved will lead to the well-run community we all want.

Anthem Community Associations Quarterly Board Meetings for 2007
April

July

October

LEADERSHIP SYMPOSIUM

A Leadership Symposium was recently announced at the Anthem Community Council's (ACC) Board Meeting on January 23 rd . The mission of this new initiative is "to prepare the next generation of Anthem leaders for the responsibilities that the community will assume." Residents are being encouraged to register with the ACC and participate in this important effort to bring together community residents who can share their expertise for the benefit and proper governance of Anthem.

These seminars will be interactive sessions conducted by various experts in their fields. All participants are asked to have a strong commitment to attend as many sessions as possible throughout 2007. Some of the subjects that you can expect will be discussed are: the history of Anthem and an explanation of the governing documents, understanding the organizations and their responsibilities, Arizona statutes and how they apply to Anthem, fiduciary and legal responsibilities of a working board, and many other vital topics.

The seminars are being held on Saturday mornings from 9:00 am to 12:00 pm at the Hampton Inn, located in Anthem at the intersection of I-17 and Anthem Way . The next two seminars are scheduled for February 3rd and 17th. Future dates are still to be determined. . Contact Jessica Thomas at Jessica.Thomas@pulte.com to reserve a space at the symposium.

NEW COMMUNICATIONS PORTAL

A new company has been contracted with to build and run a new online communications portal, which should be up and running on or before March 31 to replace the old portal, OurAnthemAZ.net. All information and organizations have been loaded and the portal's functions are being tested by the various administrative groups T he functionality for the local organizations and groups (the intranet) is targeted to be operational by March 1, but the public web site won't be fully populated until 15 to 30 days after that; thus, the projected target date for full operations of March 31.

WATER INCREASE RATES

Arizona American Water Company (AAW) recently announced that they will be looking to increase the water rates they charge their customers. This is being challenged by the Anthem Community Council (ACC). The water company has stated that part of the need for the rate increase is due to its obligation to reimburse Del Webb for the costs of infrastructure built by the developer at the inception of Anthem. Frank Grimmelmann, ACC board member, recently announced that the ACC has retained legal counsel and has filed as an intervener in the case. "We want a fair rate increase," Grimmelmann stated, "but we do not want to pay for bad business decisions."

According to AAW's application the proposed water rate increase comes out to about 68 percent. Grimmelmann, however, says that AAW is really asking for a 93% increase if you add both the commercial and residential increases together. The State Corporation Commission is planning to hold a hearing on the Anthem rate increase proposal on May 29, 2007 at 10:00 am. In the meantime, AAW has announced it plans to hold three community meetings in the near future and to have an information booth at the Anthem Community Center to answer residents' questions.

NEW COUNTRY CLUB MANAGEMENT

On October 1, 2006 management of the Anthem Golf and Country Club was taken over by ClubCorp, Inc. ClubCorp enjoys a well-deserved reputation as one of the best management firms of premier golf clubs and resorts all throughout the U. S. The company oversees some of the most famous golf properties in the country; Pinehurst, Mission Hills, The Homestead in Hot Springs, to name a few. The property that ClubCorp purchased includes the Persimmon and Ironwood golf courses, the two clubhouses and the two fitness clubs. The new General Manager, Guy Shelander, has made it his business to improve the lines of communications with Country Club residents through open house meetings and frequent memos and emails to explain the new organization and answer questions about the changeover.

Some of the changes that have taken place include a dues increase to help with operating deficits that are no longer being subsidized by the developer. The company has stated that their intention is to keep future increases to "CPI plus a percent or two." In light of the proposed water rates increase recently requested by Arizona American Water Company, we asked Mr. Shelander if this would have a negative impact on operating expenses and would dues be raised again soon. Mr. Shelander replied, "Since the primary source of water we use is effluent, we do not anticipate large increases other than what the normal potable rates will increase. We do not anticipate any further dues increases in 2007 and will evaluate our situation towards the end of the year for 2008. We do not expect another large increase in 2008."

As originally intended, the Country Club golf clubs and restaurants are moving closer to becoming private entities. There are approximately 610 golf memberships at the present time. When memberships reach the 650 mark, both Persimmon and Ironwood golf courses will be for private play only. As of December 1, 2006, both Persimmon and Ironwood Club restaurants were closed to the public and are only open to members and their guests. New membership cards for the Golf and Social Members that will allow direct billing to members' accounts will be coming soon. INFO> anthemclubliving.com

FRY'S MARKETPLACE

Fry's Signature supermarket is in place and our unofficial survey indicates it's a big hit with the community. What's not to like? The upscale deco r, the fantastic gourmet foods (a la AJ's), organic produce section, health fo ods, furniture and accessories, and Tully's coffee bistro, complete with tables, chairs, couches, books and a TV, have won over glamour-deprived residents. Not to mention the beautiful stone materials used for the buildings, and the fountains and landscaping that will be completed soon.

However, as with many things in life, there have been some comments from disappointed people about the familiar and repetitive stores that seem to be in place all over Anthem - more pizza, nails and hair cutters - even another Subway's shop. We had heard last year that the developer was actively trying to attract some upscale shops and boutiques. Well, as it turns out, it's not quite that easy to get everything we want.

We spoke to the Barclay Group's spokesperson recently about the composition of the Fry's Marketplace and this is what we found. Although Barclay's intentions were, and still are, to find more of a diversified mix of businesses, they have found themselves stymied by the factors that retailers look for before they invest in a location. The level of tenant Barclay's has been seeking usually wants tangible proof of customer activity. The hard numbers they want about the daytime visitor population is not available at this time due to the newness of the center. Many of the larger establishments look for a lot of square footage of retail space, especially on all four corners of Daisy Mountain and Gavilan Peak; in other words, a retail core that would encourage a lot of cross traffic for the benefit of all the retailers (think Paradise Valley area). It's highly unlikely that Anthem has planned for, or wants to see, such huge retail space bordering the residential areas.

The small businesses we mentioned above are there for our convenience, so we don't have to drive miles away to access these necessary services. Don't forget that two fine-dining establishments will be coming in - Madelyn's and Long Island Seafood. And, if only casual Italian food from the New York/New Jersey area will do for you, then you are in for a treat with Streets of New York (streetsofnewyork.com).

Merle Norman, the well-known cosmetics firm (established in 1932), develops, manufactures and distributes its own full line of skin care and color cosmetic products. The firm has over 2,000 stores all over the United States , and was the first of its kind to offer personal service to clients to sample skin products and makeup for all types of complexions to take the guesswork out of choosing the right shade and color (merlenorman.com). Another fine jewelry store will be coming to Anthem at the Fry's Marketplace - family-owned Braidy Jewelers. They began in Ohio and offer quality jewelry brands such as Movado, Wittnauer and Skagen (braidyjewelers.com).

Just in time for April 15, the well-known tax preparation firm of Jackson Hewitt Tax Service Inc. has already opened their doors. The firm has over 6,000 franchised and company-owned offices throughout the United States , and provides full-service individual federal and state income tax preparation. Call Gabrielle, the Office Manager, at 623-551-9208 to make an appointment (jacksonhewitt.com).

Barclays is still shooting for the top tier of businesses and has made inquiries of retailers located in Scottsdale and Arrowhead, among other locations, and they will continue to do so. They have in mind such businesses as interior decorating and home accessories businesses, among others. We must keep in mind that the Fry's Marketplace is anchored by a grocery store - not a department store - and in looks is quite similar to the upscale Basha's center at Greyhawk.

In the meantime, consider this: Only five miles down I-17, the Tramonto Marketplace has announced that it is expanding the retail area anchored by Home Depot. Approximately 400,000 square feet of gross building area is expected to be built, with popular Kohl's department store as the other anchor! When the frontage road along I-17 is finally completed, it will be an easy hop to this shopping area. And, don't forget that just ten miles from Anthem at Happy Valley there will be a huge shopping/entertainment area with a multiplex movie theater (something that Anthemites have been yearning for), several restaurants and upscale retailers such as Chico's and White House/Black Market have been mentioned. When you think about it, wouldn't you rather the local traffic resulting from these enterprises be down there rather than here?

All considered, we've come a long way in only six short years. It's a lovely town with great people and institutions. Let's be happy and count our blessings!