Have representation June20/2013 Hearing
The financial proposal of the new developer of Sunchaser Vacation Villas , Northwynd Resort Properties (Northmont), is patented unfair to all lessees and , pertaining to the fee for cancellation of lease, is very presumptuous that the developers wholly owned Resort Villa Management Ltd. will be the manager for the next 20 years.
The developer (Northwyn, Northmont) deals with selling time share and the manager (Northwyn Northmont) deals with operating the resort.
How did we get in this position. The Vacation lease gives the manager (Owned by the developer) 15% of monies spent from the refurbishment account and the operating account. There is the incentive to spend more to make more. The lessees are then charged more each year to increase the income of the management company (Developer).
The lessees have been contributing to the refurbishment account on inception of the development and it should have adequately covered unit furnishing replacement. A large amount was spent on other projects outside of the mandated uses. I suspect, in the past, to build more villas instead of sales revenue. One multimillion dollar expenditure to repair the foundation of the 7000 block should have been partially covered by the architect and construction company that performed the faulty work. Is the construction contractor and the developer one in the same? The $630,000 spent to replace the deck on #500 villa is questionable. The list goes on as the developer gets 15% of monies spent. When Northwyn took over in 2010 they gave a concession of only charging $1,000,000 instead of the 15%. The money tree had been shaken too hard but since then it has been 15%. The lessees have had no oversight from a lessees association since the 1990s.
We now have a proposal from the developer (Northmont) to renovate the resort (not refurbish the existing) and every like lease pays the same regardless of years left on their lease (Patently unfair). The exit proposal charges lessees to cancel their lease based on lost revenue to the developers management company (Again presumptuous on behalf of the developer that its management company will manage the resort for the next 20 years).
The BC court hearing June 20th , deals with the Trustee cooperating with Northmont on the restructuring and renovation. The trustee holds title of the lands on behalf of the lessees and Northmont. The trustee should represent our interests but is in conflict with the developer interests. The affidavit by Kirk Wankel (Representing Northmont and Northwynd) April 16,2013 states that they have the right to unilateral change based on Modification of Lease clauses in the lease agreements. This is debateable and could halt the proposal but if not, the lessees may get some adjustments to the amounts demanded based on years left on the lease. For those who want out it can be pointed out that it takes 51% of the owners to remove Resort Villa Management Ltd and therefore their claim to 20 years of management fees as a payout to cancel the lease is frivolous. It may take a separate application to court to order all proceeds from the renovation charges be spent on the timeshare units and common use facilities but our lawyers should make the point. The developer would love to have you pay for renovation of properties he is taking out of the Resort. The charge for paying past loans should be denied. Bank loans for past refurbishing and maintenance costs should be carried as normal course of business expense.
Bottom line, get a lawyer to represent you at the hearing.
More revelations are appearing daily on TUG that fill in the blanks.
