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May 13, 2016
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Campobello council eyes issue of club's fees for non-members
by JD Rule

 

      The Campobello Island Club (CIC) was the focus of much discussion during the April 25 meeting of the Campobello council. Restrictive deed clauses and covenants, including the right to collect association fees from islanders who are not association members, are issues that come up periodically in council discussions. According to several who spoke at the meeting, the clauses survive subsequent transfers and cause economic hardship but provide no benefits.
     Mark Brine, who described himself as "not a lawyer" but as a native of Campobello who has "lived away" for 21 years and currently resides in Machias, presented the council with a proposal to create a bylaw that would require companies such as the CIC to be licensed by the rural community. Brine stated that he owns property that includes CIC covenants and that he has been pressured to pay membership fees. Several other individuals attending the meeting added that they had also been pressured, including having "arrears" turned over to "some outfit in Moncton" for collection. Some said the amounts demanded were in excess of $800, and one cited a collector's demand for a credit card number "right now." Allegedly, threats have been made to damage credit ratings of those deemed owing money.
     Recently elected New Brunswick Southwest MP Karen Ludwig was also in attendance at the meeting and participated actively in asking questions regarding the CIC issue. She appeared taken back by council member Kevin Sawtelle's statement that he had asked "several of our recent MLAs to help" but that no resolution had come out of their efforts.
     The CIC website provides a link to a judicial opinion issued in "Campobello Island Club v. Goodhue," the 2006 case regarding non‑payment of membership fees. The website states that the judge, Justice Peter Glennie, supported CIC's right to impose fees where the property deed includes the covenant; however, the website fails to mention that the judge concluded, "In the circumstances, I make no order as to costs." The circumstances referenced include a dispute as to whether the CIC had provided the promised benefits justifying the need for the fees, terming it a "substantial dispute of fact." Several participants at the April 25 meeting also raised this objection. "None of that stuff ever happened," said one, referring to claims of promised water and sewer lines.
     An e-mail was sent to Michael Pruner of Chulota, Fla., listed on the CIC website as the club's president, asking for comment on these allegations, but no response was received.
     The CIC is the successor to a series of organizations originally established to take advantage of the summer recreation opportunities offered by the island, dating back to the era when wealthy individuals built large homes to escape the cities farther south during the summer months. Following World War II the island experienced a decline in tourism, and much of the land was sold to the Dead River Company, which used it primarily for logging. The land was then acquired by the Whitewater Development Company and transferred to Campobello Properties under the management of Larry Kuca of Little Rock, Ark. A 1987 Quoddy Tides article describes the subsequent land sales in three separate island subdivisions, which resulted in "all of the oceanfront property in the 1,200 acres of developed subdivision" passing into private hands. The entire property was, according to that article, divided into 396 lots.
The subsequent collapse of the Whitewater organization led to indictments and convictions for many of the managers, including Kuca, who in 1995 bargained for a misdemeanor guilty plea to a 1986 charge of conspiracy, according to an article in The Washington Post.
     Mayor Stephen Smart pointed out that the number of properties subject to covenant restrictions contributed to the "ghettoization" of the island community, partially because local residents shun acquiring them and also because "residential only" deed clauses prevent residents from establishing businesses. "With two large parks and the club taking up so much land," he said, economic opportunity is restricted. He asked council members "to consider whether we should be involved in this." After further discussion, the council voted to set up an ad‑hoc committee to look into the matter and to consider Brine's suggestion about licensing by the rural community.

Senior program grant
     Subsequent to the CIC discussion, Ludwig addressed the council to announce a federal grant of $16,540 in support of the "Get Out and Go" senior program. "The whole goal is to build community," she said, while quipping that she was now eligible to participate "as the age minimum is 50 years." She went on to say, "New Brunswick has the oldest demographic in Canada," which reinforces the need to support older members of the community. In thanking Ludwig for supporting the grant, Smart observed, "This whole thing came about because two people made it happen." Council member Candace Phinney and recreation committee chair Sandra Sawtelle worked together, he said. "If just two people can bring out something like this," Smart observed, "just imagine what we could do if more people got involved."

Fiber-optic link project

     The council also discussed a request from the Deer Island Campobello Fiber Project Inc. asking for a letter of support for a proposed fiber-optic link providing high‑bandwidth Internet access to the two islands. During the discussion, Ludwig made reference to a $500 million commitment made by the federal government to provide broadband access to rural communities across Canada. "Information literacy is a key" to economic growth, she said, adding that "broadband helps people stay in the community."
     "You are aware this goes through the U.S.," observed Kevin Sawtelle, referring to the plan to run the cable across the bridge from Lubec. "This may be the best offer we get," said Smart, while describing his concerns over possible U.S. government monitoring of Internet traffic from the two islands. "That makes me a little uncomfortable," he said. After further discussion, the council unanimously approved issuing a letter of support for the project.

May 13, 2016    (Home)     

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