Gatlinburg TS vs. Summer Bay Management

[Talent312]

The HOA Boards of Gatlinburg Town Square & Mountain Meadows apparently terminated their contracts with Summer Bay and hired a new manager, without notice to either owners or Summer Bay.

In a letter to owners, Summer Bay claims that it was all dueto a personality conflict and they've sued to enforce their contracts. "Summer Bay believes that our management agreements are in full force and effect, and we have filed a lawsuit to (among other things) be returned to our role as the manager of the resorts."

No doubt a letter from the HOA boards will be next. Of course, it will be the owners who will be hurt in all this.

ADDENDUM:
Tonight, I rec'd a call from a Summer Bay salesperp who tried to rook me into a sales presentation. When I said that I owned at GTS, whose board had thown them out and now in a lawsuit, the phone went "click." Alrighty, then.

[tombo]

I received a phone call from Summer bay last night and they told me they were still the mgt company and that the board had illegally tried to replace them. They tried to get me on a sales trip to Orlando or Missouri for 2 days and 3 nights. I said I might do Gatlinburg. They said Gatlinburg wasn't available even though they supposedly own the resort. i told them to hook me up with a free weekend at gatlinburg and we could talk but they couldn't do it. They said they are suing the board at GTS and that they would win. i told her in a law suit the owners will lose either way cause we will get billed for legal fees. it will be interesting to see how this turns out.

[dougp26364]

So who is the replacement to Summer Bay? So far this resort has had a couple of managment companies. I'm guessing there was the original developer, I know Sunterra had a hand in management as there is still access to DRI (formerly Sunterra) owners, then Summer Bay, now someone else?

I suppose it's good that the HOA has control over who the management company is but, it's to bad it comes as a shock to owners. Getting the resort in the middle of a lawsuit won't be good for owners & will likely increase MF's without much benefit. It probably would have been better to wait until the existing contract ended, then terminate but, I don't know how it was structured.

[Talent312]

Originally Posted by dougp26364

I suppose it's good that the HOA has control over who the management company is but, it's to bad it comes as a shock to owners... It probably would have been better to wait until the existing contract ended...

Reading between the lines, some board members got their panties in a wad over something that a Summer Bay flunky did or failed to do, and went off half-cocked without thinking it thru -- and without asking for legal advice. Now, the owners will pay the price for their personal vendetta.

[dougp26364]

Originally Posted by Talent312

Reading between the lines, some board members got their panties in a wad over something that a Summer Bay flunky did or failed to do, and went off half-cocked without thinking it thru -- and without asking for legal advice. Now, the owners will pay the price for their personal vendetta.

Then it's time to let those board members understand their positions are on the line. Perhaps it's time to remind them that the may have a legal fiduciary responsiblity to owners as well.

So who is the new management company that the HOA hired or, are they going without one for now? Sounds like a nasty mess that I'm glad we're not a part of but, I have two resorts in Branson that I fear could end up in a similar situation with one developer/management company filing bankruptcy and another one hired to replace them during the bankruptcy proceedings, which have been going on for maybe two years. I worry a little about what the HOA will do in the future and haven't got a clue how the current management contract is structured. There's not a lot I can do about it right now other than sit back, watch and hope it doesn't turn around and bite me in the hind end.

[singlemalt_18]

Originally Posted by Talent312

Reading between the lines, some board members got their panties in a wad over something that a Summer Bay flunky did or failed to do, and went off half-cocked without thinking it thru -- and without asking for legal advice. Now, the owners will pay the price for their personal vendetta.

Very interesting...

With all of the discussion about the need to take the control of boards away from "insiders" who are apparently in it only to rubber stamp for the management companies, it appears this is an item for the Be-careful-what-you-wish-for Department.

When the inmates from the asylum are let out of the rubber room and into the board room, the outcome seems to be the same. There is no telling what damage a group of "angry owners" can do.

We are going to Gatlinburg this October for the first time and we are looking forward to it.

[Talent312]

A recent letter from Summer Bay stated that they had won a temporary injunction which restored them to management status.

They asked that anyone who had made a reservation since January 1st, reconfirm their booking. They also announced the required annual members' meeting, which the newly hired manages had failed to do.

- - - - - - - - - - -
On the homefront, fisticuffs nearly broke out at my neighborhood HOA annual meeting when a dispute over satellite-dish placement between the board and the former president became a hot topic. I nearly made some sarchastic comments but held my tongue.

[1950bing]

That place has been a mess since the eairly 80's when it was only a picture painted on plywood tied to a fence. It goes back to Berkley Resorts.
It's old, bad need of a complete make over. Needs new furniture, appliances, carpet, countertops, tile flooring, and painting. Parking stinks! The pool above leaks onto your car and all parking spaces are too narrow. No one there seems to be excited about working there. You almost can walk the stairs because the lift is so slow. It needs a lot of money put in it to bring it into the 21st century. Happy was the day I unloaded that place ! It is a money pit !

[dougp26364]

Originally Posted by Talent312

A recent letter from Summer Bay stated that they had won a temporary injunction which restored them to management status.

They asked that anyone who had made a reservation since January 1st, reconfirm their booking. They also announced the required annual members' meeting, which the newly hired manages had failed to do.

What a nightmare this is going to be for owners. The HOA sounds as if it's out of control and doesn't have a clue what it's doing. If they want to change management companies that's one thing but, they'd better learn how to do it properly. The only thing they seem to have accomplished is costing the owners more money with no return on the investment.

[Talent312]

[duplicate]

[Talent312]

Originally Posted by 1950bing

It's old, bad need of a complete make over. Needs new furniture, appliances, carpet, countertops, tile flooring, and painting. Parking stinks!

It could use an significant update. I would not mind an assessment for this purpose.
The annual MF's are too low to cover much in the way of renovation.

However, IME, the Summer Bay employees made an effort to keep it clean and functional.
The week we stayed, the lifts worked fine, the parking was suitable, and they painted a stairwell.
The employees we dealt with were quite considerate and helpful.
Without asking, they sprayed our folding chairs for an insect problem.

... and it is remarkably convenient to downtown ...

[tombo]

Originally Posted by Talent312

I agree that it could use an significant update.
I would not mind a special assessment for this purpose.
The annual MF's are too low to cover that.

However, IME, management (Summer Bay) and its employees make an effort to keep it clean and functional. The ones we dealt with were quite considerate and helpful. Without asking, they sprayed our folding chairs for an insect problem. The week we stayed, the lifts worked fine, the parking was suitable, and they were painting a stairwell.

I agree. I have never had a problem with rude uncaring employees at this resort. The MF's are very reasonable, the elevators work fine, the kitchens were renovated with granite counter tops etc in the last few years. Parking, spaces are narrow but there are plenty of spots. The location is great and the rooms are nice enough. There are only 2 timeshare resorts in Gatlinburg that are walking distance from main street, GTS and Holiday Inn next door. I love to park at the resort and walk to everything in Gatlinburg and back o the room. GTS could use some upgrades but it is still my favorite place to stay in Gatlinburg.

[Maple_Leaf]

Originally Posted by Talent312

A recent letter from Summer Bay stated that they had won a temporary injunction which restored them to management status.

GTS claims on their website that Liberte Management is their new management company. Who is actually managing the resort?

[Talent312]

Originally Posted by Maple_Leaf

GTS claims on their website that Liberte Management is their new management company. Who is actually managing the resort?

That's actually a new "HOA" website. The old Summer Bay website is still up.
http://www.gatlinburgtownsquare.com/

All I know is Summer Bay says that a Judge put them back in charge.
They noticed the owners for the annual meeting.

[Talent312]

Summer Bay retracted its notice of the annual meeting at the Board's attorney's insistence.
The attorney said that the meeding date has not been set by the board.
Summer Bay plans to file a motion with the court to compel the Board to set a date.

Summer Bay also says that the Board is interfering with employees by telling them to sign
contracts which say they work for the HOA, not Summer Bay.

Quoting Summer Bay's e-mail to the HOA President:
"Jim, you know that there is no such entity as 'Gatlinburg Town Square, HOA, a Tennessee
corporation'... [Y]our plan to somehow have [employees] work directly for the board/HOA
will be a violation of the court's order."

Quoting the Judge's Order:
"The management agreement between SBM and the Associations are in full force and effect,
and Defendants are restrained and enjoined from interfering with SBM in its management..."

I feel sorry for the whipsawed employees.
.

[Maple_Leaf]

Originally Posted by Talent312

I feel sorry for the whipsawed employees.
.

Yes, and I also feel sorry for the confused owners. They will be the ones that ultimately pay.

[resort]

Your Home Owners board works for YOU. If your resort is managed by the developer you can bet the money will be spent to his advantage not YOURS. Town Squares fees are out of control.Look at the budget you received with your maintenance fee bill. see the fees catagory. Summers Bay is ripping you off. I call the board members. they are owners just like you. They know what is going on. Read your purchase paperwork. The board is supposed to call the annual meeting not the management company. Summers Bay acts like they are the boss. It is you owners who are supposed to be the boss, because your association is the owner controlled. Support your board. Your association will save hundreds of thousands of dollars. Summers Bay is getting about $700,000 in fees and add ons evey year. it is just not what you see in the fees category. I am an owner of 3 weeks at Town Squares and I talk to the board and the workers. I can tell you it is not those people from Orlando who made this place look so much better it is the manager Linda ? and her workers. I hate to see this going on. Owners go to www. GTSHOA and tell them what you think. Get behind the board. Dont let those people be in charge of your money. The board needs your support,

[timeos2]

Resort - I applaud you & the Board for their stand for the true owners! Best of luck to you all. If it is Liberte Management you are bringing in they are a owner friendly group that is totally above board. You will be very well off with them. Far better than any overpriced Developer based/owned management such as Summer Bay. Good luck to you all.

[tombo]

Originally Posted by resort

Your Home Owners board works for YOU. I am an owner of 3 weeks at Town Squares and I talk to the board and the workers. I can tell you it is not those people from Orlando who made this place look so much better it is the manager Linda ? and her workers. I hate to see this going on. Owners go to www. GTSHOA and tell them what you think. Get behind the board. Dont let those people be in charge of your money. The board needs your support,

I also own 3 weeks here. I am 100% for the board and 100% against Summerbay running the developer sales and the mgt of the resort. We need a mgt company that is hired by the HOA and who can be fired by the HOA if they don't provide good service for a good price. Thanks for the link to the HOA. I have been told by Summerbay that they WON the law suit and are irrevocably in place as our mgt company. I get letters from both sides and don't know what is true. Hopefully the board can oust them. Hopefully legal fees will not cost us too much. Hopefully MF's will remain low. Wishful thinking? Probably. If the HOA wins over Summerbay it can be more than wishful thinking. Keeping my fingers crossed.

[timeos2]

tombo - It cost us over $220,000 to oust our entrenched management in 2001. We saved that plus much more in under a year of independent management and was money extremely well spent. I hope your Board is successful for as little cost as possible.

[Maple_Leaf]

Originally Posted by tombo

We need a mgt company that is hired by the HOA and who can be fired by the HOA if they don't provide good service for a good price.

Now I'm really confused. If the HOA can't fire the management company, who can? If the management company cannot be fired by anyone, then aren't they governing the resort? Shouldn't the management company then fire the HOA?

[tombo]

Originally Posted by Maple_Leaf

Now I'm really confused. If the HOA can't fire the management company, who can? If the management company cannot be fired by anyone, then aren't they governing the resort? Shouldn't the management company then fire the HOA?

They fired the mgt comany. The developer/mgt comany filed suit saying they had a contractual right to be the mgt company. The developer (Summerbay resorts) said they won in court and will remain the mgt company. The HOA seems to think they can still remove summerbay. We will wait and see who wins.

[Maple_Leaf]

Originally Posted by tombo

They fired the mgt comany. The developer/mgt comany filed suit saying they had a contractual right to be the mgt company. The developer (Summerbay resorts) said they won in court and will remain the mgt company. The HOA seems to think they can still remove summerbay. We will wait and see who wins.

I've never heard of a contractor that couldn't be fired for cause, so I guess the HOA just needs to demonstrate cause, then send Summerbay packing.The HOA should have wrapped this case up with a bow before they pulled the trigger on Summerbay.

[retailman]

I was there the first of May, and Summer Bay sales dept are still running sales tours. So they must be in charge.

[AbelowDS]

Does this affect all Summer Bay resorts? Or just Gatlinburg?