Big bummer explained
The explanation is as follows from the Presidents letter found on the MVCI website:
Hotel License Agreement
Since DSV opened twenty years ago, DSV Owners have had access to various facilities at the JW Marriott Desert Springs Hotel, including access to the spa and the hotel pool. This access is contained in a license agreement with the hotel owner. For this access all Owners are charged a fee, included in the annual maintenance fees. Apart from these fees, DSV Owners and guests spend approximately $5 million annually in the hotel’s restaurants and other facilities.
This summer the Board received a notice from the hotel owner that it was cancelling the license agreement effective December 31, 2009. Without going into all of the details, after much prodding from the Board the hotel owner at first proposed a new license agreement, which among other things would have raised the license fee by 66%. The Board counter offered, based on Owner feedback received in a survey, but then the hotel owner changed course. The hotel owner indicated that they did not desire to have any license agreement with DSV. Instead, they stated that DSV Owners would be charged so-called “ala carte” fees based on each Owners’ actual use of the hotel facilities. For the past several weeks the Board has made every effort to engage in negotiations with the hotel owner, but they appear unwilling to negotiate in a serious way - for instance they have insisted that DSV indemnify the hotel if any Owner or guest is injured by their negligence, while both significantly increasing the license fee and limiting to six the total number of spa visits allowed per unit week.
As a result, come January 1, 2010 there is not a license agreement with the hotel. Instead “ala carte” pricing will be charged each time Owners and guests use the spa and other hotel facilities, such as the pools, tennis courts and exercise facility. Obviously each Owner will need to decide if this new pricing policy represents something of value. For their part, the hotel owner believes that they will earn much more money through their “ala carte” pricing than through a license agreement. As a place holder only and because at the time that the Board was required to set the maintenance fees we were in the midst of attempted negotiations, next year’s maintenance fee does include money that was set aside for the recreational license costs. However, since we could not reach an agreement, that portion of the maintenance fee will be reallocated at the end of the fiscal year.
I deeply regret that we have not been able to extend the license arrangement with the hotel owner. In the meantime, hotel management, which is different than the hotel owner, has indicated it remains committed to offering DSV Owners and guests the best services possible. Given the significant amount of money that DSV Owners and guests spend annually at the hotel, the Board certainly expects nothing less.