Annual Service Fee Agreement for Village Center units approved

Per the approved plans for the Village Center, Atlantic Realty Companies (W-ARC) plans to add residential units to the property to help facilitate pedestrian traffic to the businesses at the center, and add to the vibrancy of Montgomery Village. From the initial concept, it was planned that these units would try to be brought into Montgomery Village Foundation (MVF), giving owners full rights as members of MVF. Per MVF’s governing documents, there are two ways for this to happen: a 2/3 vote of approval by all MVF members, or an annexation process through the assigns of the original developer, Kettler Brothers, Inc. Unfortunately, neither of these options are attainable at this time.

However, the desire still remains for residents of these units to have access to community amenities and be part of Montgomery Village, rather than a separate enclave—in the heart of the Village—with no amenities at all. To accomplish this, the MVF Board authorized the Executive Vice President (EVP) to negotiate and execute and Annual Service Fee Agreement with W-ARC during its January 27 meeting. The agreement would allow for the units that W-ARC brings online to participate in MVF and DU amenities, for a service fee similar to the MVF and DU fees set each year during the budget process.

EVP Dave Humpton said this agreement would be for 115 units—34 new 2-over-2 condos, 32 multi-family condos (converting the commercial office condos to residential, over the existing retail) and 49 new townhouses—at the Village Center, and would be recorded with the deed for each property. Unit owners would be billed for the fee annually, required to pay it (per the documents) and not be able to opt out. The fee is comparable to that which all units pay, but is reduced because the W-ARC units would not receive all services, such as Architectural Standards.

W-ARC unit owners would not be considered full members of MVF through the agreement, and would not have voting privileges in MVF elections. Residents and owners could still participate in meetings and voice concerns, however.

Per the agreement, the W-ARC units would pay $60/month per townhouse and $21/month per condominium, with a 5% cap on fee increases each year; once the agreement is executed, the fee would apply to any new units, beginning in 2022, if any units were completed and sold.