Tahoe Seasons Resort Owners

Hi All:
The Vote on the Special Assessment is in progress.
The Ballot is at http://www.tahoeseasons.com/renovation/ballot.pdf

Is $2661.07 per unit (and no use of the unit for 1 year) too much to give up?

Will $26,057,199 be enough to remodel and get rid of the big tubs in the units?

I am looking forward to recomendations on how to vote.

Thanks,
Jake

I think those amounts are "WAY OUT OF LINE" !!!! If you want to assume that owners own 50 weeks of timeshare, per year (the resort is sold out), that would equate to about $242 per square foot being charged. That also means the cost of the 1-br units would be about $133,000+ for each unit.

I believe that the following figures are "reasonable".

Demolition for each unit (taking everything out, including all
walls, fixtures, a'c units, etc. ---making each unit a "shell" $10,000
Adding new walls $ 7,000
Adding new plumbing, electric, hvac, and electric fireplace $15,000
Adding new bathtubs/showers; sinks; counters; etc $15,000
New carpets; paint; furniture; etc. $10,000
New decorator items, including plasma tv's $ 5,000
Misc items $ 5,000
_________
Total: $67,000

(New furniture shoud be paid for out of the reserves.)

Actually, I think I'm being "very generous" in my estimations of expenses. I would "highly suggest" that the board "relook" at the contract proposals, and get "NEW" bids.

Have any "bids" been shown to the owners???

Tony

tahoe seasons assessment

I also believe it is way out of line since I have been trying to sell mine for less than the assessment for well over a year.
So, I'm voting no.

Our point based TS company (Monarch Grand) owns a block of rooms at Tahoe Seasons. We, members of MGV, have heard nothing about this at all. And to the best of my knowledge can't vote either.

Will $26,057,199 be enough to remodel and get rid of the big tubs in the units?

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For that price they should be able to pick it up and put on the beach

Tahoe Seasons Special Assessment

Bill4728 said:

Our point based TS company (Monarch Grand) owns a block of rooms at Tahoe Seasons. We, members of MGV, have heard nothing about this at all. And to the best of my knowledge can't vote either.

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Monarch has over 1000 units, and no representative on the board of TSR, so I would speculate that Monarch is not only OK with this special assessment, but would have known about it before they bought the 1000 units and maybe even insisted on the proposed remodel. I would think that if they bought the units for $1000 per from the board, and 3 years later were hit with a $2660 per unit special assessment, they would either take over the board or get a good lawyer.

Also, VRI - the management company that is leading the remodel charge, was instrumental in helping ROLM/RCI convert owners to RCI Points. My understanding is that the owners that converted do not get to vote either; RCI votes for them. And I can also speculate that RCI will vote "Yes" because the money does not come out of their pocket.
Thanks,
Jake

Relocate TSR

Rent_Share said:

For that price they should be able to pick it up and put on the beach

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If it were on the beach it would only be used in the summer. For this price we should be able to move it to the beach in the summer, and back to it's current location for the winter. Than, I might vote "yes".
Thanks,
Jake

TSR Special Assessment

debbymontana said:

I also believe it is way out of line since I have been trying to sell mine for less than the assessment for well over a year.
So, I'm voting no.

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I would think that the resale value of TSR at this point is zero. I really don't think that you can sell your unit above the Special Assessment cost, given the building will be closed for all of 2008 and there is no guarantee of a higher rating in either II or RCI when id does reopen. Also, based on my discussions with other owners, if the special assessment does pass, a large percentage of owners will walk away, so either the board will have to take a loan to finish the project, or it may never be done. Either way, it does not bode well for the future value of TSR units if this passes.
Thanks,
Jake

Maybe this is a way for these companies to get more units there?

MGV and VRI maybe are hoping that people will give their units back in the hope of picking them up cheap.

Perhaps an Investigation is in Order

I am very surprised (being a rather new owner) that there is no "slush" fund...usually, a resort (I own 5 different resorts) makes sure they have a "reserve" fund, that helps with renovating (painting, furniture, appliances, etc...). It is not unusual to also have an "supplemental" charge for 1,2, or three years to pay for major items not usually covered by the reserves.
This, however, seems out of line.
$200- $800 supplemental fund would be acceptable in a case of major renovations.
I think we need the board to get 2 more bids.
Any thoughts as to how much of the cost goes to Tahoe itself as permits, etc?

Sue

Susie-Q said:

I am very surprised (being a rather new owner) that there is no "slush" fund...usually, a resort (I own 5 different resorts) makes sure they have a "reserve" fund, that helps with renovating (painting, furniture, appliances, etc...). It is not unusual to also have an "supplemental" charge for 1,2, or three years to pay for major items not usually covered by the reserves.
This, however, seems out of line.
$200- $800 supplemental fund would be acceptable in a case of major renovations.
I think we need the board to get 2 more bids.
Any thoughts as to how much of the cost goes to Tahoe itself as permits, etc?

Sue

Click to expand...

Here is more information on the remodel.
http://www.tahoeseasons.com/renovation/index.html

And here is a high level summary of the financials of Tahoe Seasons Resort so you can get some idea of what has happened.

TSR has a "Replacement Fund" that is replenished by Member assessments at a rate of about .55 million per year. Most of it is used up in needed replacements. This fund had 3.6 million at the beginning of 2005.

TSR also has an "Operating Fund" which had a deficit of 1.5 million in the beginning of 2005. During 2005 it lost another .075 million, so the Board raided the Replacement fund to the tune of 1.9 million.

The Replacement fund ended 2005 with 1.8 million and the Operating Fund ended with .28 million. A Reserve Study dated August 2004 concluded that at the end of 2005 the replacement fund should ideally have had 6.3 million instead of 1.8 million.

In addition, in 2006 at the March Board meeting there was an additional motion that was approved to raid once again the Replacement Fund and move money to the Operating Fund to cover additional Operating Fund Deficit. The amount was not disclosed.

At the June Board meeting Doc Thomas resigned as the CFO after many years of financial mismanagement and Roy Fraser TSR Vice President and Owner of VRI (The TSR Management Company that helped create annual deficits) assumed the CFO responsibility. I am sure there is no conflict of interest.

So here is the plan. Forget everything and let's start over. According to Howard Mott in his 2005 letter to the owners The Facility excluding land is worth $43,700,000 or as he puts it Forty Three Million Four Hundred Thousand Dollar. (This is no joke, and it reflects the financial integrity of this board).
So, we ask for a special assessment of 26 Million because we really need $8 million (but we are trying to get the infidels to go away shhhh) and then we remodel, take away the units from the weak and sell them to unsuspecting timeshare virgins (VRI owns a subsidiary that converts Owners to RCI Points)
Pay off the loan and live happily ever after (Until the next special assessment). However, if the plan fails and we cannot make payments on the 18 million Loan, we just increase annual dues.

But, here is my proposal - Plan B.
The building less land is worth 43.7 million according to Director Howard Mott. The equivalent ownership is 9369 units.
I will forgo the land value. Sell the building to VRI for 43.7 million and each "c" owner gets $4533 each "f" owner gets $6800 and each "r" owner gets $9067.
Any votes for Plan "B”?

By the Way: Permits are not an issue, but Tahoe is an Issue because VRI insists on running TSR as a Primary Hotel and not a Private Timeshare Club.
Some of the Remodel costs are associated with running a Hotel.
Thanks,
Jake

Seems to be new listings daily at walk away pricining, yet to see any mention of a special assesmenmt in the ads

6 on Ebay Right Now

Average Price $ 80

This one at one dollar actually discloses the special assesment in the ad

http://cgi.ebay.com/Lake-Tahoe-Silv...ryZ15897QQssPageNameZWDVWQQrdZ1QQcmdZViewItem


As to the other five - No Mention of the assesement

The only one with a bid is from Holiday Group, legendary for their knowledge of what they are selling NOT

Don't want to pay the SA but want to keep Tahoe Seasons?

Here is an idea. Convert your unit to a Monarch Grand Vacation unit. MGV will convert units at it many Western US locations to MGV for a single payment of $2000. So if you had 2 weeks at Tahoe seasons you could for $2000 convert them both to MGV and get enough points for 2 weeks at Tahoe Seasons or use your points at any of the MGV locations in SoCal and the rest of the Western US.

I have done this at other MGV locations and can't be sure this is available for owners at Tahoe Seasons but it may be better than paying this big SA.

ACK!

Ok I'm in escrow on this property. Did this pass?? Holiday Group did NOT inform of this. Do I have recourse?? I payed $49.00 plus MF and closing costs. I purchsed 2 timeshares from them, the other one was Cypress Pointe Grandvillas. Please help the newbie!

Thanks,
Cheryl

The Board of Directors announced at the annual meeting in December that the vote against the remodel was overwhelming, so they dropped the plans for now. There is no special assessment. However, you should be aware that the association reserves are inadequate, and you should expect a 20% increase in dues for next year. Also, the units need a remodel, so the subject is not closed indefinitely.

Thanks,
Jake

Low price for Tahoe Seasons

Cheryl you got a great deal. Two years ago these were selling on ebay for between 700 and 1700 plus closing costs depending upon the season. The prices have really taken a hit. funtime

I've stayed at the resort and I really enjoyed the layout. I realize it's antequated, however I'd question the massive assessment and lack of use for a year... that's about a $3000 incurrance/owner.
I read the report on the website. If there were truly pressing needs like water damage, that would be just cause. But most of the repairs appear to be for the purpose of bringing a modern flair to the modern vacationer.
I'm not reading a dire need for the repairs... it sounds more like a want than a need. Is that good cause for such a massive assessment?