2019-09-10T18:49:06-05:00 2018-12-31 450250958 EIDE BAILLY LLP 1850 N CENTRAL AVE STE 400 PHOENIX AZ 850044624 990 2018-01-01 273966137 DESERT MOUNTAIN CLUB INC DESE 4805954000 10550 E DESERT HILLS DRIVE SCOTTSDALE AZ 85262 ANDREA RANDALL CHIEF FINANCIAL OFFICER 4805954000 2019-08-08 1 BRENDA BLUNT P00075126 6022645844 2019-08-08 199.247.45.88 2019-08-08 13:25:15 US P 39B74C017E3E9E38D760E01AAB5C43384F2C897D D4504F3418A69B1F64DD2B85EBC785D26ACEAFAF 2018 2019-02-21 02:37:17Z SCOTT URDANG 10550 E DESERT HILLS DRIVE SCOTTSDALE AZ 85262 68252244 0 X WWW.DESERTMOUNTAIN.COM X 2010 AZ TO PROVIDE PRIVATE GOLF COURSES, CLUBHOUSES, AND OTHER STANDARD AMENTITIES TO ITS MEMBERS. 9 9 1085 9 587971 1064890 0 0 50997411 53950614 -2210928 63656 7018726 5466405 55805209 59480675 33671 18305 0 0 32536090 31906326 0 0 0 26525944 27081204 59095705 59005835 -3290496 474840 137687832 139473803 40996227 42538885 96691605 96934918 NONE 0 0 WE PROVIDED PRIVATE GOLF COURSES, CLUBHOUSES, AND OTHER STANDARD AMENTITIES TO THE CLUB'S APPROXIMATELY 2,100 MEMBERS. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 296 0 1 1085 1 1 1 0 0 0 0 5925342 3090291 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X AMY IACOVELLI 4805954000 10550 E DESERT HILLS DR SCOTTSDALE AZ 85262 SCOTT URDANG PRESIDENT 8.00 X X 0 0 0 CAROL ANN PETREN VICE PRESIDENT 8.00 X X 0 0 0 HAROLD BOYANOVSKY TREASURER 8.00 X X 0 0 0 CHRIS STORBEK SECRETARY 8.00 X X 0 0 0 LYNN MAGNUSON DIRECTOR 8.00 X 0 0 0 LEO BIRKBY DIRECTOR 8.00 X 0 0 0 KEITH JOHNSON DIRECTOR 8.00 X 0 0 0 MARK GILMAN DIRECTOR 8.00 X 0 0 0 WAYNE MAILLOUX DIRECTOR 8.00 X 0 0 0 DAMON DIORIO CEO 45.00 X 680696 0 70315 ANDREA RANDALL CFO 45.00 X 252223 0 32428 SHAWN EMERSON DIRECTOR OF AGRONOMY 45.00 X 303152 0 40772 CHRISTOPHE HERMINE DIRECTOR OF OPERATIONS 45.00 X 279534 0 34592 AMY IACOVELLI CONTROLLER 45.00 X 150210 0 16736 KELI GREENBERG DIRECTOR OF HR 45.00 X 226646 0 30458 TODD BRUEN DIRECTOR OF FACILITIES & M 45.00 X 237046 0 38913 2129507 0 264214 31 0 1 0 NICKLAUS INTERNATIONAL BRAND MANAGEMENT 3801 PGA BLVD PALM BEACH FL 33410 GOLF COURSE DESIGN SERVICES 855097 DESERT REFLECTIONS LLC 9791 W PICTURE ROCKS RD 1 TUCSON AZ 85743 RENOVATE GOLF COURSE 571768 WEST CREEK PARTNERS 410 BASTROP DRIVE ALLEN TX 75013 CONSULTING SERVICES 442985 NEWMAN BUILDERS LLC 5725 N SCOTTSDALE ROAD STE C-135 SCOTTSDALE AZ 85250 BUILDING SERVICES 318831 FENNEMORE CRAIG PC 2394 E CAMELBACK ROAD PHOENIX AZ 85016 LEGAL SERVICES 312858 6 MEMBER DUES AND ASSESMENTS 713910 36781624 36781624 INITIATION AND TRANSFER FEES 713910 5905000 5905000 MISCELLANEOUS CLUB FEES 713910 2980228 2980228 GOLF CART AND CLUB RENTALS 713910 2773585 2773585 GREENS AND HANDICAP FEES 713910 2602985 2602985 2907192 2907192 53950614 594967 594967 701734 377088 324646 324646 324646 531311 -531311 -531311 -531311 12805260 7863170 4942090 4942090 INCOME FROM JOINT VENTURE 531120 199669 199669 199669 59480675 58892704 587971 0 18305 1693713 24358185 376924 3424297 2053207 246567 71789 2281053 1199035 1121736 453170 4246790 95464 14633 1262132 6882320 1079689 FEDERAL AND STATE INCOM 407038 REPAIRS AND MAINTENANCE 1726094 FERTILIZER AND CHEMICAL 1124779 EQUIPMENT RENTAL 705382 4163533 59005835 11157222 13545947 4981058 534456 5759858 5640422 15623918 11054370 1701092 1733181 869458 1143828 146413191 47515957 90403182 98897234 1070861 997614 6119858 5926751 1325 0 137687832 139473803 6553715 9609830 1635774 1745863 29580392 27837219 3226346 3345973 40996227 42538885 X 96691605 96934918 96691605 96934918 137687832 139473803 474840 -231527 0 X 0 1 X 1 0 2239000 4261000 6500000 1379000 60694650 10504819 51568831 8679406 6674281 2005125 69160135 30336857 38823278 98897234 362042 DUES REPAYMENT PROGRAM 39523 NON-EQUITY MEM. SUR. BENEFIT 260000 CLUB LIABILITY SUPPLEMENTAL ASSESSMENT 297600 INTEREST RATE SWAP LIABILITY 482999 SUPPLEMENTAL ASSESSMENT 1239363 AMORTIZATION OF SUPPLEMENTAL ASSESSMENT 492022 RETIREMENT PLAN 457(B) 172424 3345973 X 53560633 612817 612817 52947816 6532859 6532859 59480675 50743846 413424 413424 50330422 8675413 8675413 59005835 PART X, LINE 2: THE CLUB EVALUATES ITS POSTIONS THAT HAVE BEEN TAKEN OR ARE EXPECTED TO BE TAKEN ON INCOME TAX RETURNS TO DETERMINE IF AN ACCRUAL IS NECESSARY FOR UNCERTAIN TAX POSITIONS. AS OF DECEMBER 31, 2017 AND 2016, THE UNRECOGNIZED TAX BENEFITS ACCRUAL WAS ZERO. PART XI, LINE 2D - OTHER ADJUSTMENTS: DISTRIBUTIONS FROM LIMITED PARTNERSHIP 236,000. RENTAL EXPENSES NETTED AGAINST RENTAL INCOME 377,087. MISCELLANEOUS EXPENSES RECLASSIFIED FROM FINANCIAL STATEMENTS -270. PART XI, LINE 4B - OTHER ADJUSTMENTS: INCOME FROM LIMITED PARTNERSHIP 199,669. LOSS ON DISPOSAL OF ASSETS -529,887. ASSESSMENT REVENUE 20,342. INITIATION AND TRANSFER FEE 5,905,000. OTHER INCOME 937,735. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES NETTED AGAINST REVENUE 377,087. MISCELLANEOUS EXPENSES RECLASSIFIED FROM FINANCIAL STATEMENTS 6. ADJUSTMENT JOINT VENTURE 36,331. PART XII, LINE 4B - OTHER ADJUSTMENTS: INTEREST EXPENSE 1,278,333. DEPRECIATION 6,990,042. INCOME TAX 407,038. 1 CANCER AWARENESS THROUGH RESEARCH AND EDUCATION ASSOCIATION PO BOX 3740 CAREFREE AZ 85377 203771288 501(C)(3) 8876 CANCER AWARENESS AND MEDICAL RESEARCH THROUGH EDUCATION 1 0 PART I, LINE 2: GRANTS ARE MADE TO WELL-ESTABLISHED CHARITIES FOR UNRESTRICTED USE IN THEIR GENERAL PROGRAMS. POST-GRANT MONITORING IS NOT CONSIDERED NECESSARY. X X X 1 1 X X X X X X 0 0 0 DAMON DIORIO CEO 522496 0 125000 0 33200 0 46250 0 24065 0 751011 0 0 0 ANDREA RANDALL CFO 199663 0 39000 0 13560 0 9098 0 23330 0 284651 0 0 0 SHAWN EMERSON DIRECTOR OF AGRONOMY 247855 0 47500 0 7797 0 6238 0 34534 0 343924 0 0 0 CHRISTOPHE HERMINE DIRECTOR OF OPERATIONS 223261 0 42778 0 13495 0 6214 0 28378 0 314126 0 0 0 AMY IACOVELLI CONTROLLER 135683 0 13500 0 1027 0 5533 0 11203 0 166946 0 0 0 KELI GREENBERG DIRECTOR OF HR 182058 0 31150 0 13438 0 8746 0 21712 0 257104 0 0 0 TODD BRUEN DIRECTOR OF FACILITIES & M 186977 0 37000 0 13069 0 7418 0 31495 0 275959 0 0 0 PART I, LINE 1B YES, IT WAS WRITTEN IN DIRECTOR OF GOLF AND DIRECTOR OF ATHLETICS/SONORAN EMPLOYMENT AGREEMENT PART I, LINE 3 AS PART OF THEIR FIDUCIARY RESPONSIBILITY, THE BOARD OF DIRECTORS HAS A COMPENSATION COMMITTEE WHICH OBTAINS A COMPENSATION SURVEY BY AN INDEPENDENT THIRD PARTY. THE SURVEY IS ORDERED EVERY COUPLE OF YEARS TO EVALUATE COMPENSATION. THE COMPENSATION OF TOP-LEVEL EMPLOYEES IS EVALUATED ANNUALLY BY THE CEO AND THE COMPENSATION OF THE CEO IS REVIEWED ANNUALLY BY THE BOARD OF DIRECTORS' COMPENSATION COMMITTEE. WEST CREEK PARTNERS LLC OWNED BY ROBERT JONES, FORMER GENERAL MANAGER 442985 CONSULTING AGREEMENT 0 FORM 990, PART VI, SECTION A, LINE 6 THE CLUB HAS TWO CATEGORIES OF VOTING EQUITY MEMBERS: EQUITY GOLF MEMBERS AND EQUITY CLUB MEMBERS. EQUITY GOLF MEMBERS HAVE ACCESS TO ALL FACILITIES INCLUDING UNLIMITED GOLF AND TENNIS AND HAVE EACH EQUITY GOLF MEMBER HAS TWO (2) VOTES, EACH. EQUITY CLUB MEMBERS HAVE ACCESS TO ALL FACILITIES INCLUDING A SPECIFIED NUMBER OF ROUNDS OF GOLF, UPON PAYMENT OF A GREENS FEE. EQUITY CLUB MEMBERS HAVE ONE (1) VOTE EACH. NON-EQUITY MEMBERSHIPS WERE ISSUED PRIOR TO DECEMBER 31, 2010. NO NEW NON-EQUITY MEMBERS ARE BEING ADMITTED. NON-EQUITY MEMBERS DO NOT VOTE ON GENERAL MATTERS; THEIR VOTING RIGHTS ARE FURTHER DESCRIBED ON LINE 7(B). FORM 990, PART VI, SECTION A, LINE 7A CERTAIN DIRECTORS ARE ELECTED ANNUALLY BY THE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B AT ANNUAL MEMBER MEETINGS EQUITY MEMBERS ENTITLED TO VOTE MAY VOTE ON "MAJOR DECISIONS". MAJOR DECISIONS ARE DEFINED AS: (A) A MAJOR CAPITAL EXPENDITURE FOR NEW CAPITAL IMPROVEMENTS AND EXPANDED FACILITIES OR AS MAY BE REQUIRED, AS DETERMINED BY THE BOARD, FOR IWDS WATER FACILITIES AND RELATED OBLIGATIONS THAT ARE NOT CAPITAL REPAIR AND REPLACEMENT ITEMS AND ARE IN EXCESS OF FIVE PERCENT (5%) OF THE THEN CURRENT CLUB ANNUAL GROSS REVENUE, INCLUDING TRANSFER FEES. (B) A SALE OF THE CLUB FACILITIES OR ANY INDIVIDUAL CLUB FACILITY, (C) A MATERIAL ADVERSE CHANGE TO THE MEMBERSHIP REFUND AMOUNT TO BE PAID TO EXISTING MEMBERS, (D) A CHANGE OR ADDITION TO THE MEMBERSHIP CATEGORIES OR CHANGES IN EXISTING MEMBERSHIP CATEGORIES THAT RESULT IN AN INCREASE IN THE MAXIMUM NUMBER OF EQUITY GOLF OR EQUITY CLUB MEMBERS ABOVE THE CAPS STATED IN THE BYLAWS, AND (E) AND AMENDMENT TO THE BYLAWS. ANY AMENDMENT TO THE BYLAWS THAT DISCRIMINATES OR IMPOSES GREATER OBLIGATIONS OR FEWER RIGHTS THAT APPLY SOLELY AGAINST THE DEVELOPER RETAINED MEMBERSHIPS COMPARED TO OTHER EQUITY GOLF MEMBERSHIPS IN THE CLUB, OR MODIFIES ANY OF THE RIGHTS AND PRIVILEGES OF THE NON-EQUITY MEMBERSHIPS IN THE CLUB NOT OTHERWISE AMENDABLE UNDER THE APPLICABLE TERMS AND PROVISIONS OF THE PRIOR CLUB OF THE PRIOR PLANS, OR REVISE ANY OF THE RIGHTS OF DESERT MOUNTAIN PROPERTIES LIMITED PARTNERSHIP ("DMP") GRANTED IN THE BYLAWS, REQUIRES PRIOR WRITTEN APPROVAL OF DMP. SUCH APPROVAL CANNOT BE UNREASONABLY WITHHELD. ANY ASSESSMENT OF THE NON-EQUITY MEMBERS IS SUBJECT TO OBTAINING THE REQUIRED AFFIRMATIVE VOTE OF THE NON-EQUITY MEMBERS. FORM 990, PART VI, SECTION B, LINE 11B THE RETURN IS REVIEWED BY THE CLUB'S CHIEF FINANCIAL OFFICER AND IS PROVIDED TO ALL BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS MEET MONTHLY TO DISCUSS ANY CONFLICTS FORM 990, PART VI, SECTION B, LINE 15 AS PART OF THEIR FIDUCIARY RESPONSIBILITY, THE BOARD OF DIRECTORS HAS A COMPENSATION COMMITTEE WHICH OBTAINS A COMPENSATION SURVEY BY AN INDEPENDENT THIRD PARTY. THE SURVEY IS ORDERED EVERY COUPLE OF YEARS TO EVALUATE COMPENSATION. THE COMPENSATION OF TOP-LEVEL EMPLOYEES IS EVALUATED ANNUALLY BY THE CEO AND THE COMPENSATION OF THE CEO IS REVIEWED ANNUALLY BY THE BOARD OF DIRECTORS' COMPENSATION COMMITTEE. FORM 990, PART VI, SECTION C, LINE 19 ALL INFORMATION IS KEPT READILY AVAILABLE IN THE MAIN OFFICE OF THE CLUB.