Organization of Gurney's Inn Timeshare OwnersI NEED YOUR HELP I AM TRYING TO ORGANI

[Patboffa]

I NEED YOUR HELP I AM TRYING TO ORGANIZE THE TIMESHARE OWNERS. THE ONLY WAY THAT WE CAN GET CONTROL OF OUR TIMESHARE THAT WE OWN IS TO BE UNITED. THAT IS EXACTLY WHAT THE MANAGEMENT DOES NOT WANT. I AM ACCUMULATING A LIST OF E-MAILS SO THAT I CAN KEEP YOU ALL INFORMED. PLEASE SEND ME AN E-MAIL ADDRESS WITH YOUR NAME SO I MAY ADD YOU TO THE LIST. IT IS URGENT THAT WE ORGANIZE NOW AS THEY ARE PLANNING SOMETHING SOON.

While I am an attorney licensed in New York, New Jersey and Florida specializing in real estate and corporate law, I am NOT representing anyone or any committee but am acting solely as concerned shareholder. I spent one year of my life in 2001-2002 trying to get information from the board to share with the timeshare holders. I reviewed tons of documents that I obtained from other sources, not the board and I think I know a lot about Gurney’s Inn. Other shareholders have asked me to get involved again and to become a member of the Committee for Financial Alternatives that wants to save Gurney's Inn. We have had three meetings to come up with alternatives to save Gurney's.


We have requested a shareholder's list, in compliance with the NY corporate law, in order to communicate directly with the timeshare owners. Ed Leggio, our only director, who supposedly represents us, told us that we would never get the list. We drafted a letter to send to you, the timeshare owners, and were told by Paul Monte and Gurney's Inn’s corporate attorney that they would send our letter out, unedited. The next meeting when we presented our letter, they refused to send ours out . We spent the whole meeting redrafting our letter with them and their attorney retyped it at the meeting. We all agreed on the changes, all responses were to come to timeshare owners e-mail addresses and one owner's post office box. Paul Monte, who sat there all day as we together rewrote our letter, then said he had to take it and spend more time. We all objected but they said it should be done in a day. It took almost two weeks for them to send the committee a revised draft and it was totally changed. It was not our letter. They also removed all the timeshare owner's e-mail addresses and post office box and put only Mr. Leggio's e-mail address at Gurney's Inn. This was not Mr. Leggio’s letter it was the committee’s.

This is so typical of management. They do not want us to get together and organize. We must organize and get control of the board, as we are the true owners of Gurney's Inn. Any sale, termination or a Master Renovation Plan must come from us, not them. The Monte family controls the board of directors of Gurneys because they hold a mortgage on the property of approximately $2,895,318 million dollars. (It was only $2,700,000 when we came out of bankruptcy but how that happened will be another of my e-mails to people on my list).The Monte family appoints two of the three board members. They do not OWN Gurney’s Inn. I have a lot of information to share but I need e-mail addresses to send it to. There are over 2700 shareholders and I cannot contact them one at a time. I will read your responses but I am one person and I have taken on a massive job so I won’t be able to respond to you individually. I also recommend that you write letters, not e-mails, to the Attorney General of New York, Andrew Cuomo, Real Estate Financing Division, 120 Broadway, NY, NY 10271.It is urgent to involve them now and the more letters they receive the greater their response should be.

Don’t let them divide us because together we are very powerful.

[Smietana]

I just saw that you are forming a Gurney's Timeshare owners organization. Please provide any information. I am extremely upset over this excessive special assessment.

[je&jjcain]

Well, the liquidating trust mortgage was over $20 million before the bankruptcy. It now could be paid off for an accessment of roughly $850 per owner ($8.50/sh) and the owners could control the board. (And I think there is a $6 million balloon payment for other debt coming up in 2010. That might be an accessment of $1800. We do live in interesting times.)

My thoughts are that we should sell the Inn, pay the debt, and split whatever is remaining and be done with it. The current management does not know how to run the property. As for the current accessment, we will not pay until we see a better plan for Gurney's. I may write Paul Monte and tell him.

[LLcactus42]

I've reviewed the report sent out by Gurneys and in response to your post- aside from getting email notes from everyone, what do you propose as an action plan once you get the emails? Money has to come from somewhere to pay for debt and make the necessary repairs and upgrades to the property.

There are many people on fixed incomes who won't be able to pay the assessment as indicated in the most recent letter. It seems to me that assessment will only go higher once more owners bail and forfeit their weeks - It's getting to the point where the costs associated with the assessments, plus annual fees seem to out weigh the value of the timeshare. The assessment could end up costing double or triple the amount quoted in the letter per 100 shares.

Obviously, you have been involved directly w/ the management group and board so have way more insight into what's going on but I have to say, I am leaning toward the position that Gurneys should be sold as recommended in the report. I think the assessment will be out of reach for many owners to pay and most will not.

If you'd like to share more information about what plans you might have to save Gurney's for the owners, I'd be open to listening, but it just seems that so much capital is required to bring the property to a point where it needs to be, that it's not worth it to the owners for their "week" every year.

[je&jjcain]

Mr. Leggio---
I have read the 3 sets of meeting notes of the Advisory Committee on Financial Alternatives.

A lot of talk centered on increasing revenues by marketing to guests and TS buyers. I think we have to give the management credit for good marketing to guests, and that increased guest revenue is not likely. TS buyers are not out there.

Some on the committee want to keep the Timeshare Resort viable for another 24 years.

If this is to happen, we must reduce expenses in a drastic way. I propose for consideration the following----

There are less than 3400 TSO unit weeks and all of these could be compressed into an 8 month year. Gurney's could close for 4 months (Dec, Jan, Feb, Mar). This could reduce costs by 30%. I am sure TSO's with winter weeks would welcome a week in better weather. The changes should probably be made without additional costs to TSO's; the owners of winter weeks have been paying a larger percentage of their unit value as maintenance.

Assuming the above can be worked out, the major flaw is how revenues will be affected. Will guest revenues still amount to 80% of the total. I would guess not because almost all units during the 8 month year will be owned by TSO's. Management will have to give some input on estimated revenues using past revenues only from TSO units during that 8 month period. (Do many rent some of their unit week now? We do.)

This major change may reduce maintenance payments going forward. If not, then we certainly cannot be a timeshare resort any longer.

That being said, I think we should sell the Inn, pay the debt, and split whatever is remaining and be done with it. From a simple point of view--- if the Inn is sold for $50 million, and debt of $8.9 is paid; over $40 million can be split up. If there are 5100 unit weeks, this is over $8000 for each week. Adjustments must be made for units with more than 100 shares and splitting the Ltd unit shares equitably.

[Robbie S]

I am an interested timeshare owner at Gurney's Inn. Thank you for your efforts in looking after the interests of timeshare owners. Please add me to your list of interested parties. Thank you