·The History ofHAWTHORNE

AT.'LEESBURG

1972 - 1990

Design, Typesetting and Printing:Tech Spec Printing

Leesburg, Florida 34748

PREFACE

This book is the culmination of a series of far-reaching projects and events involving a nationalassociation, NRTAI AARP and the Colonial PennInsurance Group.

During 1971-72 they jointly developed a pilotretirement community that offered a lifestyle withsecond-to-none services for the older persons.Hawthorne-at-Leesburg became a phenomenalsuccess.

In the late 1970's the history of this communitybegan to take on a drastic turn of events. Event-ually the residents became outraged with the threatof losing their lifestyle to a California promoter,McDay Corporation. They quickly formed atransitional committee, spearheaded by threededicated gentlemen: Carl Curtis, Harry Galbraithand Amos Henley.

With the encouragement and financial supportof most of the residents, a Tallahassee law firmwas engaged to carry the torch for the residents ..This history tells the story as it evolved.

Carl Curtis maintained complete records of theHawthorne Residents Association, Inc., the courtproceedings and all documents pertaining to thefinal purchase of the park. He was determined towrite the story, but unfortunately, his health wasfailing. He had always hoped to inform the newresidents of the stressful years their neighborsendured and fought for, to preserve their preciousway of life in Hawthorne.

In June 1990, Dr. Earl Kauffman, a renownedgerontologist and Hawthorne's first Program

Director, visited the community. He was invitedby NRT AI AARP to attend their NationalConvention which was being held in Orlando. Hewas asked to bring his files on Hawthorne andmeet an author who is writing the Hawthornestory. Dr. Kauffman urged the local group toproceed with writing the history and he sharedmuch of the material he had with him.Unfortunately, Dr. Kauffman suffered a strokeand passed away shortly thereafter.

The History Committee is very grateful to thesetwo gentlemen for the contents that follow. Mayevery resident renew appreciation for the finestresident-owned adult retirement community inFlorida.

INTRODUCTION

The Hawthorne Memorial Fund is honoredto sponsor this history of our community. It isimportant we have a sense of our history, to knowsomething about how we came to where we aretoday.

Hawthorne's story has no equal. It is a successstory in retirement living that other communitiesand organizations try to emulate. This success isdirectly attributable to the people - the leadersof the past and today but most importantly,everyone working together with the leaders for thecommon good.

It is our hope and desire that this success storywill continue in our future history. We challengeresidents today to share in this success. Supportour community leaders and work together withthem for the benefit of everyone. As our namesays, we are a cooperative, an association markedby a willingness and an ability to work with others.

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DEDICATION

In Memory of Our Three Founders

Amos W. HenleyHarry GalbraithCarlos T. Curtis

(Reprint Hawthorne Herald, Sept.lOct. 1987)Don Dornbfook, Edit07 by 'a"'-V\Y\'f Mc.(ti....\

May 29, 1987 - the day that Hawthorneremembered the times gone by and those whoplanted the seeds that have grown to be Florida'sfinest resident-owned retirement community. Over500 residents and guests turned out for this specialceremony. It was a wonderful day.

Following the Invocation by the Rev. EvanOwens, Mildred Bovee, a member of the HRCABoard of Directors, opened the ceremony withremembrances of the three special men who wereto be honored: Amos Henley, Harry Galbraith,and Carl Curtis.

For this dedication ceremony, Anna Merlinowrote the beautiful poem, "The Memorial Rose-1987". This poem appeared on the back of theprogram for the ceremony. Harry Galbraith hadchosen the single rose as the "symbol of ourvictory" in winning our fight to purchaseHawthorne. At that time, Anna wrote the veryinspiring poem entitled "The Single Rose", whichappears on a plaque next to the HRCA BulletinBoard in the Clubhouse Auditorium.

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Dan Gorden, our GeneralManager, paid tribute to AmosHenley. He shared with us someinsight into this man. Amosonce said that he was glad thatHawthorne came in the last tenyears of his career, because noother place could ever equalHawthorne. Amos believed thatHawthorne should be a quality

community with quality activities and lifestyle. Hismission at Hawthorne was to "do it right". LindaSchmid, secretary to Amos Henley, as well aspresently being Dan Gorden's secretary, acceptedthe "Memorial Rose" and the plaque forMrs. Amos Henley, who was out of state. Theplaque dedicated the garden area to Amos Henley.

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~JJ'~Dedicated to the Memory of

~rP.~President of Colonial Penn Communities, Inc.

Developer of HawthorneA Beloved Friend of Hawthorne

and Our First Gardener

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Louise Hutchison, a formerHRCA Board member, paidtribute to Harry Galbraith.Harry was remembered as anenergetic, innovative anddecisive man who cared aboutthe residents of Hawthorne. Hemade sure that no one wasembarrassed or forced to leaveHawthorne because of their

inability to purchase their lot or pay their portionof the legal fees. Louise reminded everyone that weare working together today, carrying out whatHarry Galbraith began. Mary Smith, a neighborand friend of Harry Galbraith, accepted the"Memorial Rose" for him. Harold McNish, agood friend of Harry's, accepted the plaque forhim. The plaque dedicated the beautiful parkacross from the Clubhouse as Galbraith Park.

JJ'aIbrad-/v ~Dedicated to the Memory of

~ JJ'aIbrad-/vFirst President of Hawthorne Residents

Cooperative Association, Inc."The Single Rose - The Symbol of Our Victory"

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honored on this special day.Mildred Bovee paid tribute toCarl, remembering his involve-ment in the Hawthornecommunity, including suchthings as being President ofAARP in 1979, one of theoriginal Directors of theHawthorne Memorial Fund,

First Vice-President of the Hawthorne ResidentsAssociation and former President of theHawthorne Residents Cooperative Association,Inc. Carl's leadership and financial expertisehelped make Hawthorne 'a model for otherresident-owned communities. Martha Curtisaccepted the "Memorial Rose" and plaque forCarl, who could not attend the ceremony becauseof illness. The plaque dedicated the marina toCarl Curtis. (lad (ltutt& ~

Dedicated in Honor oftlarlo& tr (ltutt&

First Vice President ofHawthorne Residents Association &President of Hawthorne Residents

Cooperative Association, Inc.

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Hawthorne-at-Leesburg

a retirement communitythat has it all; at last

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TABLE OF CONTENTS

Hawthorne BeginningsConstruction Begins: 1972The First Residents Arrive: 1973-74 9

Years of Growth and SettlementCommunity 70070occupied by 1976 11

Trouble for Colonial PennInflation/lease problemsLoss of group health insurance of

NRTA/ AARP - 1979 12Residents Take Action

Formation of Hawthorne Chapter, Federationof Mobile Home Owners of Florida, Inc.Contact with McDay CorporationCommunity Survey - 1981 14

Hawthorne Involved in LawsuitResidents unite to prevent corporate takeoverLawsuit takes its toll in 1982 : . . . . 17

Daylight at the end of Tunnel"McDay has gone away"Formation of Cooperative - Dec. 1982 .... 24

After the Lawsuit YearsMoving Forward 1983 - 1986 25A Successful Past 1987 - 1990 29

Leaders of HawthorneTransitional CommitteeSpring 1982 - April, 1982

Boards of Directors, 1982 - 1990 31Historical Committee 35

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Hawthorne Beginnings ...

Hawthorne was born out of the desire to betterunderstand the housing and living needs ofretirees. During this particular time in history,retirement communities and retirement livingwerenot common areas of concern. However, with agrowth in the expected life span of man, Americanow had a new sociological group forming thathad unique needs and desires. Recognizing thesechanges, Dr. Ethel Percy Andrus, a retiredteacher, founded the National Retired TeachersAssociation (NRTA) in 1947. Sensing the impor-tance of this association and not wanting to limitits benefits to retiring teachers, Dr. Andrusfounded the American Association of RetiredPersons (AARP) in 1958. She spearheaded manyprojects including journals, seminars, variousbenefits, and living facilities for the Associations.Her desire to obtain medical insurance protectionwould lead her to an association with LeonardDavis, who would later establish Colonial PennInsurance Company to serve the needs of theretired.

It became a desire of these groups to build apilot retirement community that would offer alifestyle, with second-to-none services, for theolder person. In 1972 an 18-page Agreement wassigned by NRTAI AARP and Colonial Penndetailing the features to be included in this modelretirement community. Ideas that made thecommunity unique included: "panic buttons"installed in each home to alert a full-time, aroundthe clock security force trained in life-saving

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techniques and fire-fighting; private roads; a fully-equipped firehouse and adequate fire hydrantsthroughout the community; a full-time ProgramDirector selected with the approval ofNRTAI AARP; a central community building withprograms approved by the Associations and amultitude of recreational facilities including amarina; convenient 24-hour banking facilities;reasonably-priced homes and lot rental fees withlong-term renewable leases and all servicesincluded, excepting electricity and telephone.

On October 1, 1972, Amos Henley wasappointed the Director of Operations; and, byNovember, 1972, heavy equipment arrived andconstruction began under a contract with Miller-Jones Construction. The sales office and modelcenter opened in December of 1972. However,because of the time involved in paving streets andinstalling the underground utilities, the firstresidents did not move in until October of 1973.Also in October of 1973, Dr. Earl Kauffman, anoted professor of gerontology at the University ofKentucky, was appointed by AARP as ProgramDirector and joined the Hawthorne team.

It was the goal of the joint venture betweenAARP/NRTA and Colonial Penn to provide theepitome in retirement living. Wanting to giveresidents an opportunity to achieve a high state ofmorale, the committees incorporated the basichuman needs for love and affection, recognition,security, and new experiences into the daily routineof the residents. Hawthorne would become morethan a community .. .it would become a lifestyle.

The community was a phenomenal success. Alarge number of pre-sales were made in 1973, andby the end of that year, 101 families had movedinto their new Hawthorne home. These earlyresidents later became known as "HawthorneTrailblazers. "

The Hawthorne Trailblazers' Annual Banquet, Dec. 1990

In March of 1974, a dedication of thecommunity was held. The following month afeature article about Hawthorne appeared inModern Maturity, the official publication ofAARP. 'In the article, AARP explained theircooperative endeavor with Colonial Penn as being"the first community development that involvesolder persons in the planning and execution."Their endorsement of Hawthorne was slated as"another pioneering venture in AARP's longhistory of trailblazing for retirees."

Years of Growth and Settlement ...

As a result of this article, Colonial Pennreceived thousands of requests for informationabout Hawthorne from AARP members across thecountry. In June of 1974, 70 homes were sold inone month; the largest salesmonth that would everbe recorded at Hawthorne. By the end of 1976, thecommunity was over 70070occupied just 3 years

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after the first residents moved in.Hawthorne was a pioneering, pilot project for

retirement living, and it was in the plans ofColonial Penn and AARP to use experience gainedfrom this project in other retirement communitiesto be built in Florida. The rapid growth ofHawthorne suggested the community was wellreceived, but no definitive information wasavailable on residents' reactions to the community.

Therefore, in January of 1977 Colonial Pennhad a survey conducted to determine residents' at-titudes and reactions to life at Hawthorne. Thesurvey results revealed that residents' attitudestoward Hawthorne were very favorable: only 3.2percent said they were dissatisfied.

Residents' satisfaction revolved aroundHawthorne's community facilities, socialatmosphere, home buy-back policy, easy homemaintenance, and safety and security. In fact, thehighest rated feature of Hawthorne was its safetyand security with over 85 percent of the residentsrating these services excellent.

increases upon renewal of the 3-year lease to 15 or20 percent (depending upon when a residentmoved in). Unfortunately, these increases were notenough to offset inflationary operating costs.Since the leaseswere renewable as long as residentslived at Hawthorne, Colonial Penn was not in aposition to change them. It was a great deal forresidents but not for Colonial Penn.

In April of 1977, Colonial Penn discontinuedoffering 3-year leases to new residents moving intothe community. Those leases were replaced by al-year lease with annual increases tied to the cost-of-living index. This change really came too late tohelp Colonial Penn significantly since thecommunity was over 70 percent occupied at thetime. However, this change did create somedissatisfaction among new residents who were pay-ing substantially higher lease amounts for the sameservices as residents who had 3-year leases. Thisdissatisfaction grew as rates on l-year leasescontinued to climb above the 3-year rates.

In the late 1970s, Colonial Penn Group, Inc.,the parent company of Hawthorne, was involvedin litigation regarding its relationship withNRTAI AARP. The end result was termination ofendorsement by NRTAI AARP and loss of theirgroup health insurance programs. The conse-quence was a substantial drop in revenues forColonial Penn Group.

As a result of the change in the relationshipbetween Colonial Penn and NRTAI AARP, anuncertainty about the future of Hawthorne beganto emerge. Many residents who had relied upon the

Trouble for Colonial Penn ...

Although resident satisfaction was high,Colonial Penn began to have some problems.Accelerating, double-digit inflation of the mid-andlate 1970's began to take its toll on thecompany. Operating costs were soaring, butrevenue increases were limited. When residentsmoved into Hawthorne, they signed 3-year lotlease agreements that were renewable for as long asthey lived at Hawthorne. These leases limited rent

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NRTAI AARP endorsement of Hawthorne nowfelt they had been abandoned.

Colonial Penn find it in its best interest to main-tain ownership and management of Hawthorne.Reminding Colonial Penn of its commitment tothe community expressed in 1979 after AARP andNRTA dropped the endorsement of Hawthorne,Curtis and Galbraith restated that Colonial Pennhad assured the residents that Hawthorne wouldbe managed in the future as in the past with theenjoyment of the same services and peace of mindto which residents had become accustomed. Later,when the residents questioned Colonial Penn'sactions during the 1982 bid by McDay Corpora-tion, Colonial Penn supported its decision bystating that they had not sought the proposal fromMcDay, but the offer was too good to refuse.

McDay Corporation owned and operatedseveral Florida mobile home communitiesincluding Japanese Gardens in Venice, Florida.Mr. Rogers, president of McDay Corp., formedthe corporation Mobilinium for the purpose ofpurchasing Hawthorne from Colonial Penn andconverting it to condominiums. McDay Corpora-tion was joined by two other California concerns:Coast Mortgage and Realty Investors to formMobilinium. Although not yet licensed andrecognized by the State of Florida, Mobiliniumintended to file the necessary paper work at a latertime.

Although Colonial Penn Corporation wishedto sell the park, apparently experiencing problemsnot only with the cash flow of the particular parkbut within other business ventures as well, it stillwas concerned with the community. In a letterdated March 17, 1982, Colonial Penn informed the

Residents Take Action ...

Acting on this concern, a few residents organ-ized a local chapter of the Federation of MobileHomeOwners of Florida, Inc. (FMO) Two residentswho were members of the local FMO chapterattended a large FMO convention in Tampa.Thinking of possible solutions to their dilemma,they approached a California promoter, McDayCorporation, about the possibility of visitingHawthorne. This initial contact resulted in arequest in November, 1981 by Louis Rogers, thepresident of McDay, for a feasibility study on thepurchase and conversion of Hawthorne intocondominium ownership.

In January of 1982, upon first hearing of theinterest of McDay Corporation in purchasingHawthorne, the residents became concerned, and agroup of 74 decided to survey the community overa weekend to verify the type of living each pre-ferred. Of the 1745 contacted, 96.5070approved ofthe lifestyle and leasing arrangement currentlyenjoyed. Under the condominium conversion, theresidents would have to purchase the very lots towhich they held lifetime leases. In addition to thislarge expenditure, services currently offered wouldbe drastically cut. These factors madecondominium conversion unattractive to theresidents of Hawthorne.

As a result, in a letter dated March 8, 1982,Carl Curtis and Harry Galbraith requested that

Although homeowners had invested more than$55million in homes and improvements, companyheads of Colonial Penn assumed that thehomeowners were not a unified group and furtherdid not have the desire or the funds to purchase thepark. Acting on this belief and current financialsituations, Colonial Penn saw absolutely nothingwrong with the intended sale of Hawthorne toMobilinium. However, based on McDay's allegedtrack record to buy mobile home parks, cut theservices, and later sell at a large profit, residentsdecided to take the steps necessary to protect theircurrent standard of living. Upon the recommenda-tion of Harry Edwards, a Hawthorne resident,they hired the law firm of Ervin, Varn, Jacobs,Odom and Kitchen of Tallahassee, Florida, whichincluded among its lawyers former GovernorLeroy Collins.

residents that their leases and designated serviceswere a legal obligation and would be upheld bywhomever bought the park.

It was becoming apparent that Hawthorne wasnot exempt from a problem that was sweeping thenation: businessmen buying out mobile homecommunities and within a short time selling at alarge profit. Before doing so, however, servicesand maintenance were usually drastically decreas-ed or even eliminated. Determined not to becomeanother statistic, the Hawthorne ResidentsTransition Committee was formed and beganholding town meetings and producing newsletterswhich emphasized facts and clear-thinking ratherthan rumors and haste. Though an employee ofColonial Penn, Amos Henley showed genuineconcern for the residents of Hawthorne byinforming them of what was planned by ColonialPenn and urging them to unite.

Town meetings began on March 26, 1982 inorder to inform the entire community of therumored sale and to begin preparation for theneeded representation of the residents during theseunstable times.

Later in a letter dated April 8, 1982, ColonialPenn, speaking through its Chairman of theBoard, stated that it did not feel obligated toadvise the residents in advance of the proposedsale of a corporate asset. The Chairman main-tained that Colonial Penn had kept and wouldcontinue to keep Hawthorne residents' bestinterest in mind. Colonial Penn sincerely believedthat the leases would be honored thus makingsecure the current lifestyle of the residents.

Under the advice and direction of theirattorneys, and with well over the required 51070ofthe homeowners as members, the HawthorneResidents' Association was incorporated on April14, 1982. Forming the corporation would reducethe personal liability of the nine board members

Reading left to right: Harry Galbraith, President of HRCA, Inc.,and attorneys, Former Gov. LeRoy Collins, F. Perry Odom, C.Everett Boyd, Jr. and Carl Curtis, First V.P., HRCA, Inc.

Hawthorne Involved in Lawsuit ...

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chosen to represent the interests of the residents.In excess of $350,000.00 was donated through

the participation of most residents in voluntaryassessments, donations, and association dues.Initially, however, the guarantee of fundsnecessary to cover the anticipated legal costs was aresult of Harry Galbraith and Carl Curtis offeringtheir homes as guarantee of payment. These fundsfor attorneys' fees and related expenses werecarefully invested and expended.

Days later, on April 16, 1982, a letter went outfrom the residents' attorneys to the corporateattorneys of McDay and Colonial Penn. It was notthe desire of the residents and their legal counsel togo to court but rather to reach an amicable settle-ment. It was important for the residents to beassured of their continued lifestyle withoutthe additional individual expense of the$15-$20,000.00 that was estimated for con-dominium conversion. Emphasis was placed andcontinued to be placed on unity and cooperation.

While the various corporations viewed theimpending sale as merely a business transaction,the negative effects on the residents were becomingapparent. Residents were no longer encouragingtheir friends to retire to Hawthorne; in fact, manywere considering moving elsewhere. Morale,activity participation, and planning for the futurewere down; however, sleepless nights were up.Unfortunately, there was even one suicideattributed to this stressful time. Weekly notice wasgiven by the resident minister who had volunteeredto be on call for counseling and support.

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On May 28, 1982, the class action suit fordeclaratory and injunctive relief was filed. Since acorporation could not bring the suit, it wasnecessary to find individuals representing eachtype of lease and an individual representing apending purchase to act as Plaintiffs. It was theintent of this suit to obtain a ruling as to theresidents' rights and thus to prevent violation ofthose rights by Colonial Penn or Mobilinium.Although counsel for Mobilinium saw this courtaction as "unjustified harassment," it was theforesight of the Hawthorne Board and theirattorneys in bringing this suit that would lead tothe preservation of the Hawthorne lifestyle stillenjoyed today.

Looking for further support of the residents'position in the pending case, Carl Curtis contactedEverett Kelly. On June 4, 1982, Everett A. Kelly,State Representative of District 35 in response toCurtis's letter expressed his concern for what theHawthorne homeowners were going through andpledged his support. Additionally, Kelly statedthat the precedence that was set by this case wouldaffect mobile home parks tremendously.Representative Kelly in turn communicated withState Representative Lee Moffit, who wouldbecome the Speaker of the House for the 1983-84term, expressing his concerns and his desires forappropriate legislation affording protection formobile homeowners.

It was not the original desire or intent of theresidents to purchase the park. Instead, theydesired a purchaser who would maintain the statusquo. At the time of the lawsuit, Hawthorne was a

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rental park with approximately 2,000 residentswho had invested $55 million in homes andimprovements. All residents had lifetime leasesfrom Colonial Penn which contained guaranteedbenefits.

Colonial Penn had negotiated a $9.5 millionsales price with Mobilinium. Feeling that theresidents were protected by their extended leasesand guaranteed benefits, Colonial Penn did notgive a second thought to Mobilinium's plans toconvert Hawthorne to condominiums. Later,however, Mobilinium stated that they had nointention to assume Colonial Penn's obligationsand that, in fact, the leases were not properlyexecuted. Rather, Mobilinium intended to convertHawthorne to condominiums which would costthe residents approximately $17.5 million to returnto their present homes.

On June 18, 1982, the Defendants, McDay, etaI., filed a Petition for Removal which had theeffect of removing the case from the state courtlevel to the federal court level. Since the defen-dants were from California, this was a legitimaterequest. However, it was considered to be a legaltactic to slow the case down and remove anychances of partiality in a local court.

During the next several weeks, tensions andrumors of "takeovers" and "buy-outs" were high.The residents' attorney assured the homeownersthat this was to be taken with a grain of salt; themain focus was to be on the rights of thehomeowners with regard to their leases. Everyavenue was examined: should they work out a plan

with Colonial Penn to make Hawthorneprofitable, look for another landlord, or purchasethe park. It was not surprising that some groupswithin the community had different ideas aboutwhat approach to take. Some felt that Hawthorneshould approach Colonial Penn immediately andoffer to buy the park, while still others felt thatmaybe McDay would not make such a badlandlord. Yet, the Board remained united, alongwith the largest percentage of the residents; theyrealized that by following the attorneys' guidelinesa permanent solution could be achieved withoutlegal ramifications to Hawthorne residents.

Concerned members oj Hawthorne's Residents Association, Inc.

On July 12, 1982, Federal Judge Charles Scottruled in favor of the Hawthorne ResidentsAssociation's Motion to Remand; and, thus thecase was moved back to Lake County with CircuitJudge Ernest C. Aulls, Jr. presiding.

At the July 30, 1982 injunction hearing,Colonial Penn and McDay agreed to a 3D-daypostponement of the sale in order to discuss theextent of services to be maintained after the sale.Nonetheless, it was not the intent of the attorneysfor Hawthorne Residents Association to ever back

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down on their belief that the leases should behonored.

With an August 2nd closing date quicklyapproaching, an injunction hearing was held inwhich it was ordered by Judge Aulls that servicesguaranteed by the leases, as well as servicesproposed by NRTA and AARP, would be con-tinued from the time of closing until the scheduledNovember trial.

Because McDay was unwilling to close on acontract under which their extent of obligation wasunclear, they declared Colonial Penn in breach ofcontract for non-disclosure and filed suit.Subsequently, Colonial Penn held them in breachof contract, retained the earnest deposit, and fileda counterclaim.

On September 9, 1982, after McDay failed toclose the deal with Colonial Penn on August 30th,the time was finally right for Perry Odom andEverett Boyd, counsel for the Plaintiffs(Hawthorne), to contact counsel for ColonialPenn in order to encourage purchase negotiationson behalf of Hawthorne Residents Association.After this conversation, Odom and Boydrequested that residents send a letter of interest toColonial Penn.

Once McDay backed down, the HawthorneResidents Association's work entered Phase Two:the task of preparing for the purchase began. Itbecame necessary to know the "what and whys" toall aspects of the operation of Hawthorne "theCommunity." Consulting with accountants,engineers, and other experts, the Board movedquickly towards the feasibility of the homeowners

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purchasing Hawthorne. Attorneys were kept busyhandling the lawsuit negotiations, closing pro-cedures, and rezoning documents.

Hawthorne Residents Association, Inc. Board Members, left toright: Jack Malach, Harry Edwards, John Creighton, Pres. HarryGalbraith, Treasurer Mildred Bovee, Secretary Louise Hutchison,1st Vice Pres. Carl Curtis.

On September 17, 1982, a town meeting wasscheduled to discuss the purchase. A survey whichquestioned the interest in purchasing was preparedand sent out to all residents. Upon tabulation, itbecame overwhelmingly apparent that residentswished to purchase their community.

On October 18, 1982, a Settlement Agreementwas executed between Colonial Penn andHawthorne Residents Association, Inc. In returnfor the dismissal of the lawsuit, Colonial Pennagreed to sell Hawthorne to the residents for $8.8million. Colonial Penn had generously offeredHawthorne residents the sum of $500,000.00 tokeep guaranteed services available during thenegotiation time with Mobilinium. WhenMobilinium was no longer a party to the purchase,Colonial Penn agreed to let that $500,000.00 apply

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directly to the $9.3 million purchase price. A courthearing was scheduled for October 29 for presenta-tion of the plan for settlement.

Before the' October 29th hearing, the Boardhad drawn up a schedule for the purchase ofHawthorne by the residents. Each homeownerwould obtain a 99-year proprietary lease and afractional interest in the common elements of thecommunity. Prices would range from $8,000 to$10,000 for lots depending on their location. Themonies obtained from the individual sales wouldraise the needed funds to purchase the park fromColonial Penn and maintain the current servicesenjoyed by its residents. A reasonable monthlymaintenance fee of $150 was established to keepthe community operating in the black.

Daylight at the End of the Tunnel. ..

McDay Corporation, who had previously filedits own court document attempting to force thesale of Hawthorne by Colonial Penn without theobligation of the present level of services, threat-ened to oppose the settlement. However, four daysbefore the scheduled hearing, McDay filed papersannouncing it was giving up its claim to buyHawthorne and would not oppose the sale tothe residents. Subsequently, McDay filed suitagainst Colonial Penn for damages. The suit wasscheduled for trial in February of 1983; however,Hawthorne Residents Association, Inc. was not aparty to that suit.

At the October 29th hearing, Circuit JudgeErnest C. Aulls, Jr. executed the Order approvingthe settlement and the subsequent purchase of

Hawthorne by its residents. The closing wouldtake place on December 31, 1982.

This litigation not only had the anticipatedimpact on the State of Florida but also served as alandmark case for the entire country. Legislationrequiring park owners to give residents right offirst refusal went before the Senate and House andwas later ratified.

Hawthorne Residents Association becameHawthorne Residents Cooperative Association(HRCA). Itwas not its business to produce profit,but rather to generate enough income to pay allexpenses involved in the maintenance and opera-tion of the community. The first slate of boardmembers elected were the board members who hadserved during the lawsuit, with one exception, inorder to provide continuity in the conversion to aCo-op.

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After the Lawsuit Years...

On December 15, 1982, it was resolved that thisday and each December 15th thereafter bedesignated "Residents' Day," a day that wouldcommemorate the hard work and unity that madethe purchase of Hawthorne possible. On this dayPerry Odom, speaking to a capacity crowd in theGreat Hall, congratulated the residents on theiraccomplishment that was achieved only throughunity. Additionally, he cautioned that now"Hawthorne was a democracy in the truest senseof the word. But, there's one problem with ademocracy: you have to work together, have tocooperate." Following Odom's inspiring and

congratulatory speech, Colonial Penn hosted afestive cocktail party in celebration and honor ofHawthorne residents and their accomplishment.

Amos Henley agreed to continue as GeneralManager for six months while HRCA researchedthe best form of permanent management to hire.Many management companies were contacted butit was quickly apparent that residents would loseall control of HRCA finances under such anarrangement. Unfortunately, due to Mr. Henley'suntimely death, it became necessary to act quickly.The management search committee and the HRCAunanimously approved promoting Dan Gorden,who had served Colonial Penn as Comptrollersince 1974, to the position of General Manager.

By December of 1983, three months earlierthan first anticipated, the $800,000 mortgage heldby Colonial Penn was paid in full by HRCA.Through careful investments and planning, noresidents who were financially unable to purchasetheir. cooperative share lost their home because ofthat inability to pay. Once again, unity and hardwork had fruitful results for the.entire community.It was important then, and should be always, to"keep the good of the all in mind, not the good ofthe few."

From 1983 through 1986, Hawthorne retainedthe lifestyle intended by the developers andcherished by its residents. Run by a GeneralManager and a Board of Directors elected by theresidents, many changes in operations wereinstituted. The number of employees was reducedfrom 93 to 52 full-time employees.

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THE MORTGAGE BURNING by Carl Curtis, on December 15,1983, and a year oj ownership oj Hawthorne by the residents, asDan Gorden and Madge Henley look on.

In 1984 the Board decided to incorporate theHawthorne-at-Leesburg Realty Association as awholly owned subsidiary of HRCA: a decision thathas proved to be profitable.

Over these three years (1983-1986), thecommunity operated within its budget meeting allobligations. In addition, $700,000.00 was spent onrenovation and replacement of equipment: allstreets were repaved; all community buildings wererepainted; a new community bus was purchased;the swimming pool deck and furniture were

From 1986 through the close of 1989, theresident-owned co-op continued to fare quite well.Having 40.1 times as many assets as liabilities andover $1,000,000.00 in reserves, HRCA, Inc. finish-ed their seventh year of operation. Because of thegood leadership from past and present Boards ofDirectors, dedicated management, andcooperative residents, the park continues to be amodel for other mobile home communities.Noteworthy accomplishments over these next threeyears included the successful management of 55employees and a $2.5 million budget all achievedwith an average increase in the monthlymaintenance fee of only 2.4070; re-roofing ofshuffleboard courts, dock cover for 20 more boatslips; electric kilns use for ceramic/clay creationactivities were replaced; asbestos floor tiles replac-ed in clubhouse and marina; swimming pool resur-faced; partial re-roofing of clubhouse; re-roofingof marina; and the pool shower and locker roomsremodeled.

May 29, 1987, marked Hawthorne FoundersDedication Day with special memorials for AmosHenley (Henley Gardens), Harry Galbraith(Galbraith Park), and in honor of Carl Curtis(Carl Curtis Marina).

Hawthorne continues to flourish today. Theyear 1990has found HRCA involved in revampingthe horseshoe pits; wiring additional fans on theshuffleboard courts; providing the Lake CountySheriff's Office with marina space for an officeand a boatslip for their patrol boat; supportingcounty recycling efforts; sporting an attractive newentrance sign; and again playing host, as over the

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renovated; the emergency alarm system wasupdated; two lighted tennis courts and adjoininggazebo were built; and many lesser improvementswere instituted. A reserve of over $1 million re-mained invested; and, the park was almost full,with only 25 empty lots remaining.

In 1984, the question arose as to the feasiblityof buying adjacent property for the purpose ofconstructing a congregate living facility in thefuture. The shareholders voted; and, since amajority was not reached, the purchase was notcompleted.

As the board recognized such a facility as anasset for Hawthorne, they conducted a survey todetermine the need. An overwhelming 85% of theresidents felt that they would like to have now orneed in the future congregate living facilities.Nevertheless, it was felt that the operation was toobig for the co-op to handle and that they shouldseek outside assistance.

Over the next two years the Board met with anddiscussed options with the Evangelical LutheranGood Samaritan Society, Mediplex, and Retire-ment Centers of America, Inc. Although the GoodSamaritan Society purchased property adjacent toHawthorne, failure to achieve approval of theLeesburg City Commission for wastewaterdisposal placed this plan on hold.

past several years, to the Lake County SchoolsHonor Students' Banquet and the LRMC HospitalAuxiliary Annual Meeting. Projects currentlyoccupying many committees include the projectfor a new clubhouse sound system; the project forexpanding current lot count to reach the 1195maximum set forth in the Charter; and renewedactivity with the Good Samaritan congregate livingfacility project.

A few "firsts" also happened at Hawthorne in1990: the Florida flag now proudly flown at themain entrance once flew over the State Capitol;"Murph" Raupple became the first womanpresident of HRCA; and, on June 7, 1990,Governor Bob Martinez became the first governorto visit Hawthorne.

A quote from Carl Curtis summarized the wayof the past and the path for the future ofHawthorne when he said:

"Snowflakes are one of nature's mostfragile things; but just look at what they cando when they stick together. "

- Carl Curtis

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LEADERS OF HAWTHORNE

1982 - Hawthorne ResidentsTransitional Committee

President Harry GalbraithFirst V.P . . Carl CurtisSecond V.P William G. OhmeSecretary Louise HutchisonTreasurer Mildred BoveeDirector John D. CreightonDirector Harry F. EdwardsDirector John C. HoustonDirector John P. Malach

1983 - HRCA BoardPresident Harry Galbraith - Resigned 08/31183First V.P. . Carl CurtisSecond V.P William G. OhmeSecretary Louise HutchisonTreasurer Mildred BoveeDirector John D. CreightonDirector James CriscimagnaDirector Alvin LuxDirector Walter Smoyer

1984 - HRCA BoardPresident Carl CurtisFirst V.P William G. OhmeSecond V.P Walter SmoyerSecretary Faye BrowerAsst. Secretary Florence O'BrienTreasurer Mildred BoveeDirector Irving BlanchardDirector Jim HambletonDirector Alvin Lux

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1985 - HRCA BoardPresident .. William G. Ohme - Resigned 04/04/85First V.P. . Walter SmoyerSecond V.P Alvin LuxTreasurer Florence O'BrienSecretary Elizabeth DeuerleinAsst. Secretary Eleanor MonahanDirector Jim HambletonDirector Irving BlanchardDirector Dick Johnson

1986 - HRCA BoardPresident Walter SmoyerFirst V.P. . Alvin LuxSecond V.P. . John PearsonTreasurer Mildred BoveeSecretary Elizabeth DeuerleinAsst. Secretary Eleanor MonahanDirector " Dick JohnsonDirector J. Roger OldsDirector Loyal Wilkens

1987 - HRCA BoardPresident Loyal WilkensFirst V.P. . Eric BradySecond V.P. . Stan ReavesSecretary Elizabeth DeuerleinTreasurer John PearsonDirector Mildred BoveeDirector Carl Curtis - Deceased 08/13/87Director J. Roger OldsDirector Doris Harris

1988 - HRCA BoardPresident Dick JohnsonFirst V.P Will ZeschinSecond V.P Ron CollierSecretary "Murph" RauppleTreasurer " Stan ReavesDirector Eric Brady-Deceased 10/16/88Director Doris HarrisDirector Dey DemarestDirector Bob WilsonDirector Ethel Hounshell-Elected 11117/88

1989 - HRCA BoardPresident Ron CollierFirst V.P Art Lambright-Resigned 06122/89Second V.P John BlairSecretary "Murph" RauppleTreasurer Stan ReavesDirector Dick JohnsonDirector Dey DemarestDirector Bob Wilson-Deceased 11129/89Director John ChaseDirector William O. Ohme-Elected 07/13/89

-Resigned 10/11189Director Cleora Widlicka-Elected 12/14/89Director Hector Macl.eod-Elected 12/14/891990 - HRCA BoardPresident "Murph" RauppleFirst V.P John Chase-Resigned 06/04/90Second V.P John BlairSecretary Cleora WidlickaTreasurer Buddy CrothersDirector Dick JohnsonDirector Ron CollierDirector Charles JacobsonDirector Art RostronDirector Doris Reaves-Elected 06121190

Memorial Fund of Hawthorne at Leesburg, Inc.Current Officers and Directors

as of January 25, 1991

PresidentWALTER SMOYER

126Palo Verde Drive 728-4198

Vice PresidentLOYAL W. WILKENS102Fountain Cove 365-1978

TreasurerWILBERT J. ZESCHIN205 Hawthorne Blvd. 728-0591

Corresponding / Recording SecretaryELEANOR MONAHAN135Jacaranda Drive 787-6022

Memorial SecretaryPOLLY SPRATT

327 Hawthorne Blvd. 728-4076

Remembrance SecretaryDORIS REAVES

131Royal Palm Drive 787-3669

DirectorLOUISE FAGAN

103 Jacaranda Drive 728-2537

DirectorCLEORA WIDLICKA

244 Palo Verde Drive 728-2050

DirectorFRED ADAMS

435 Palo Verde Drive 728-4938

Our Sincere Thanks to the above Board Members forproviding the funds for The History of Hawthorne printing.

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HAWTHORNE HISTORICAL COMMITTEE

JACK MALACH - ChairmanMILDRED BOVEE - Co-Chairman

HARRY EDWARDSLOUISE HUTCHISON

J. ROGER OLDSMARY PICKFORDDORIS REAVES

About the Author ...

MELANIE K. WAGNER

Melanie was born in Leesburg and has livedlocally all of her life.

She was married 11Y2years ago to her highschool sweetheart, Ken, and they have twowonderful children, Mandy, 8 years and Adam,6 years.

Melanie worked as a legal secretary for 9 yearsbefore returning to college to become an Englishmajor and graduated Magna Cum Laude from theUniversity of South Florida. She is currently aMaster's graduate student at U.S.F. and attendedCambridge University in the summer of 1990 inEngland.

Melanie is now working as an adjunct Englishinstructor at Lake-Sumter Community College.

The Wagners love animals, especially theirgolden retriever "Meggie" and their 11 year oldblack lab "Frosty".

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~-- ....

37

HAWTHORNE RESIDENTS

COOPERATIVE ASSOCIATION, INC.

Minutes of the HRCA Board MeetingClubhouse Auditorium

December 20, 1990, at 1:30 P.M.

Pres. Raupple called on Doris Reaves to report on thehistory of Hawthorne which has been compiled.Months ago, Jack Malach had been contacted by someresidents who wanted the history of Hawthorne writtenwhile records were still readily available. TheHawthorne Historical Committee was formed withJack Malach Chairman, and members Mildred Bovee,Harry Edwards, Louise Hutchison, Roger Olds, MaryPickford and Doris Reaves. Documents and papersfrom Carl Curtis and Dr. Kauffman, minutes and greensheets were gathered and Wendy Husebo recommendedMelanie Wagner, a magna cum laude, English majorand graduate of the University of South Florida, towrite the history objectively. The history was to be keptbrief so it would be read by all. Atty. Perry Odom fromTallahassee was sent a copy of the history. He reviewedit and made a few corrections. Copies with the correc-tions were given to the Board for their perusal. Theproject was financed by Hawthorne Memorial Fund -there is no cost to Hawthorne. 2000 copies of thehistory will be published in booklet form anddistributed, one to a home, to Hawthorne residents.Each new resident purchasing a home in Hawthornewill receive a copy. Doris Reaves made a motion thatthe HRCA Board approve the Hawthorne history aspresented to them by the Historical Committee. JohnBlair seconded the motion. The Board showedappreciation for a job well done and unanimouslyvoted in favor of the motion.

Every effort has been made to assure the accuracyof the information contained in this history; anyoversights or inaccuracies are not intentional.

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