Sou13
newbie
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Festiva takes over resort
- Thread starter Sou13
- Start date
Sou13
newbie
From an "unhappy" deeded owner whose resort has been taken over by Festiva:
Isn't it nice that they can make themselves the mgt team, raise the management fees the resort charges the owners, and no matter how expensive they get you can't shop for a more efficient mgt company and get rid of them because they control the board and the votes. Not only are they making money as the mgt company, they are at the same time making money converting weeks to points, selling points, and renovating the resort (which they contract without sealed bids). They take over and make money everyway they can, and all of their profit comes on the backs of the current and future owners. Gee, why is Festiva so hated by owners?
Isn't it nice that they can make themselves the mgt team, raise the management fees the resort charges the owners, and no matter how expensive they get you can't shop for a more efficient mgt company and get rid of them because they control the board and the votes. Not only are they making money as the mgt company, they are at the same time making money converting weeks to points, selling points, and renovating the resort (which they contract without sealed bids). They take over and make money everyway they can, and all of their profit comes on the backs of the current and future owners. Gee, why is Festiva so hated by owners?
e.bram
Guest
Time for sub-prime weeks owners to BAIL!!!
Sou13
newbie
How do you do that?
Holly
TUG Member
I think that he's suggesting that you stop paying maintenance and ruin your credit rating. Advice worth about what you paid for it.
Sou13
newbie
An "unhappy" deeded Rangeley Lakes owner shared this about the Festiva takeover:
Rangeley purchased the inventory for pennies on the dollar. And then they too were the management company adding more to the budget (of course if they get the delinquent units that is income for the resort) We too had a very capable to say the least staff and although they have remained they are no longer employees of Rangeley Lake Resort but of Festiva Management, (we were not happy about that). Kevin Blocker from Festiva has been at the past 2 homeowners meetings with us and has actually been very decent. All that said we are very grateful we have a homeowners association with all owners on it. Granted the president is the one who jumped into bed (so to speak) with Festiva. I just don’t see the logic of Festiva Adventure Club. You can use their resorts if you buy into the club and relinquish your deed but they only have 30 resorts you can go online and see them. If you currently do any exchanging you will not be happy. The maintenance fees are higher than what people currently pay. Definitely worth listening to so you can inform others. Some people are jumping without knowing what they are jumping into.
Rangeley purchased the inventory for pennies on the dollar. And then they too were the management company adding more to the budget (of course if they get the delinquent units that is income for the resort) We too had a very capable to say the least staff and although they have remained they are no longer employees of Rangeley Lake Resort but of Festiva Management, (we were not happy about that). Kevin Blocker from Festiva has been at the past 2 homeowners meetings with us and has actually been very decent. All that said we are very grateful we have a homeowners association with all owners on it. Granted the president is the one who jumped into bed (so to speak) with Festiva. I just don’t see the logic of Festiva Adventure Club. You can use their resorts if you buy into the club and relinquish your deed but they only have 30 resorts you can go online and see them. If you currently do any exchanging you will not be happy. The maintenance fees are higher than what people currently pay. Definitely worth listening to so you can inform others. Some people are jumping without knowing what they are jumping into.
- Joined
- Jun 6, 2005
- Messages
- 34,717
- Reaction score
- 10,959
- Location
- The Centennial State
- Resorts Owned
- Wyndham Founder; Disney OKW & SSR; Marriott's Willow Ridge, Shadow Ridge and Grand Chateau; Val Chatelle; Hono Koa OF (3); SBR(LOTS), SDO a few; Grand Palms(SOLD); WKORV-OFC-4 ,Westin Desert Willow.
Just got an assessment for our Blue Ridge Village 2 bed week. The assessment is $570, $190 per year for 3 years. The place must be falling down! :annoyed:
Sou13
newbie
An "unhappy" Sandcastle Resort owner reported:
(His) father bought his one-bedroom and three studio deeds in the 1970s and used his weeks for family vacations. When he converted to Festiva, he paid a $2,000 sign-up fee and received 12,900 points. But when he now goes to Festiva to reserve a week at another resort, (he) says it costs 4,600 points for a two-bedroom unit. Under the previous system, owners could exchange their Sandcastle weeks for a larger unit than their deed called for if it was available.
“They charge about 4,600 for a two-bedroom. So in order to get an exchange, my father has to use up a good portion of his points. We’d be lucky to get three weeks,” (he) said about the Festiva system.http://www.wickedlocal.com/capecod/...re-owners-consider-new-resort-policies-unjust
(His) father bought his one-bedroom and three studio deeds in the 1970s and used his weeks for family vacations. When he converted to Festiva, he paid a $2,000 sign-up fee and received 12,900 points. But when he now goes to Festiva to reserve a week at another resort, (he) says it costs 4,600 points for a two-bedroom unit. Under the previous system, owners could exchange their Sandcastle weeks for a larger unit than their deed called for if it was available.
“They charge about 4,600 for a two-bedroom. So in order to get an exchange, my father has to use up a good portion of his points. We’d be lucky to get three weeks,” (he) said about the Festiva system.http://www.wickedlocal.com/capecod/...re-owners-consider-new-resort-policies-unjust
I have a good news bad news post for you. The bad news is that we were assessed. The good news is that this assessment is for Phase One units which are controlled by an owner controlled board and vote. Be glad you own in Phase one because Phase 2 is 70% to 80% controlled by Festiva. I own both Phase one and Phase two weeks, and Phase two is newer, but you have no say in what is done since Festiva controls everything. The Phase one Board had to sue Festiva (and won) to get the common areas back in the hands of the owners rather than in having Festiva claim ownership of all common areas. The phase one board doesn't lay down, they fight against festiva for owner's rights. The phase one is owner friendly and if you call the phone number on the letter you can talk to the president and he can explain any questions you might have. If you have lost the letter PM me and I will give you his name and phone number. He is a really nice guy.
By the way, there is more good news. I talked to the president of the Board and he explained the assessments are for renovations being done to all buildings on a building by building basis. After being renovated all units will have granite counter tops, new furniture, new curtains, new paint, new flooring, etc.
- Joined
- Jun 6, 2005
- Messages
- 34,717
- Reaction score
- 10,959
- Location
- The Centennial State
- Resorts Owned
- Wyndham Founder; Disney OKW & SSR; Marriott's Willow Ridge, Shadow Ridge and Grand Chateau; Val Chatelle; Hono Koa OF (3); SBR(LOTS), SDO a few; Grand Palms(SOLD); WKORV-OFC-4 ,Westin Desert Willow.
Great news, Tombo. I don't mind assessments, as long as the board is in control, and not the management company. I will happily pay this assessment and will hopefully get to see the renovations next year. I don't plan to deposit our week.
Sou13
newbie
Ponzi scheme? Churning?
Posted to Southcape Resort P. 52:
NEVS bought on 9.4.2008 and now is selling to Festiva all the timeshare weeks on Units 32 thru 36. (5X52=260) These include all the 'red' weeks for these units, as well as the offseason weeks. In addition, they are selling an additional 290 timeshare weeks, mostly offseason, for a total inventory of 550 timeshare weeks.
Festiva representatives attending Southcape Resort and Club Community Association, Inc. annual meeting on 5.15.10: Rich Hartnett, Director of Sales operations, and Kevin Blockert, Director of Board Operations (the Timeshare Resort Operating Management)
Rich told us that Festiva currently owns positions in 30 resorts worlwide, and considers any property located on Cape Cod, as an attractive target. The aim of Festiva is to convert as many as possible of deeded timeshare weeks, into Festiva Resort Vacation Club Exchange Point membership. The point system works on a first come first served basis; those who register first, get a choice of the most desirable weeks. As the inventory of available weeks declines each year, club members get less and less desirable weeks.
There will be additional incentives for those who do not get desirable weeks; an additional week or two for free during the offseason weeks.
This enables the use of most of the offseason weeks, and solves a major problem for developers of deeded timeshare resorts. Vacation Club members pay an upfront fee, and an annual fee for as long as they remain as members. 30 or more resorts enables the operators greater flexibility in operating the resorts.
Every timeshare week owned by the Festiva Resort Vacation Club will pay the same maintenance paid by the other deeded timeshare owners.
Major concerns:
1. Rich said he expected that the deeded titles to timeshare weeks 'owned' by delinquent owners (those who have not paid the maintenance fees, the special assessment, and the penalties), approx. 650 owners, will become the property of Festiva, and will become part of the Festiva Resort Vacation Club Point System. Those timeshare weeks are a part of the Southcape Resort and Club Community Association, Inc., and it definitely would not be in the best interest of the deeded timeshare owners to allow the current self-appointed Trustees, to vote for such action. This would give majority vote to Festiva, and is illegal as it does not represent the best interest of the deeded owners.
2. Kevin told us that management fees would rise from the current 10% (5% under Bob and Vince) of the operating budget, to 13%, excluding legal and accounting fees. We are adding a layer of management to our very capable existing staff.
This doesn't make sense. If Festiva wants weeks at Southcape, why underwrite a mortgage for twice what NEVS paid for Southcape and Sandcastle/Royal Coachman and enter into some sort of confidential contractual agreement with NEVMS and Outfield Marketing to sell conversions of deeded weeks to points? Why not just offer to take deeded weeks off the hands of delinquent owners or owners who want out of their deeds? I for one would have considered signing a quitclaim for $1 if Festiva wants my week badly enough to pay the registration fees.
Furthermore, by negotiating a "sale" of the 550 NEVS weeks, Festiva will have to pay not only the "sale" price but a State Excise Tax which in the case of the $1.2 million sale of the unsold Southcape and Sandcastle/Royal Coachman weeks was $6,840.00 and has been subject to a rate increase since then if I'm not mistaken!
So now Festiva has paid New England Vacation Services $1,000,000 for the 550 weeks and 6,120.00 Excise Tax as well as underwriting a $300,000 mortgage to NEVS!
BTW I was mistaken about the sale price of the 550 weeks. I thought I heard $700,000 but that must have been in reference to something else. NEVS paid $1.2 million for the unsold weeks at two resorts and was then able to sell off the 550 Southcape weeks for $1 million! Furthermore, there was no need for a $2.5 million mortgage, since the $400 special assessment for renovations and upgrades was put on the backs of the deeded weeks owners, while Clifford Hagberg collected a tidy sum from both resorts for "administrative" fees!
So there you have it. This is how Festiva takes over resorts, and how Clifford Hagberg operates.
Posted to Southcape Resort P. 52:
NEVS bought on 9.4.2008 and now is selling to Festiva all the timeshare weeks on Units 32 thru 36. (5X52=260) These include all the 'red' weeks for these units, as well as the offseason weeks. In addition, they are selling an additional 290 timeshare weeks, mostly offseason, for a total inventory of 550 timeshare weeks.
Festiva representatives attending Southcape Resort and Club Community Association, Inc. annual meeting on 5.15.10: Rich Hartnett, Director of Sales operations, and Kevin Blockert, Director of Board Operations (the Timeshare Resort Operating Management)
Rich told us that Festiva currently owns positions in 30 resorts worlwide, and considers any property located on Cape Cod, as an attractive target. The aim of Festiva is to convert as many as possible of deeded timeshare weeks, into Festiva Resort Vacation Club Exchange Point membership. The point system works on a first come first served basis; those who register first, get a choice of the most desirable weeks. As the inventory of available weeks declines each year, club members get less and less desirable weeks.
There will be additional incentives for those who do not get desirable weeks; an additional week or two for free during the offseason weeks.
This enables the use of most of the offseason weeks, and solves a major problem for developers of deeded timeshare resorts. Vacation Club members pay an upfront fee, and an annual fee for as long as they remain as members. 30 or more resorts enables the operators greater flexibility in operating the resorts.
Every timeshare week owned by the Festiva Resort Vacation Club will pay the same maintenance paid by the other deeded timeshare owners.
Major concerns:
1. Rich said he expected that the deeded titles to timeshare weeks 'owned' by delinquent owners (those who have not paid the maintenance fees, the special assessment, and the penalties), approx. 650 owners, will become the property of Festiva, and will become part of the Festiva Resort Vacation Club Point System. Those timeshare weeks are a part of the Southcape Resort and Club Community Association, Inc., and it definitely would not be in the best interest of the deeded timeshare owners to allow the current self-appointed Trustees, to vote for such action. This would give majority vote to Festiva, and is illegal as it does not represent the best interest of the deeded owners.
2. Kevin told us that management fees would rise from the current 10% (5% under Bob and Vince) of the operating budget, to 13%, excluding legal and accounting fees. We are adding a layer of management to our very capable existing staff.
This doesn't make sense. If Festiva wants weeks at Southcape, why underwrite a mortgage for twice what NEVS paid for Southcape and Sandcastle/Royal Coachman and enter into some sort of confidential contractual agreement with NEVMS and Outfield Marketing to sell conversions of deeded weeks to points? Why not just offer to take deeded weeks off the hands of delinquent owners or owners who want out of their deeds? I for one would have considered signing a quitclaim for $1 if Festiva wants my week badly enough to pay the registration fees.
Furthermore, by negotiating a "sale" of the 550 NEVS weeks, Festiva will have to pay not only the "sale" price but a State Excise Tax which in the case of the $1.2 million sale of the unsold Southcape and Sandcastle/Royal Coachman weeks was $6,840.00 and has been subject to a rate increase since then if I'm not mistaken!
So now Festiva has paid New England Vacation Services $1,000,000 for the 550 weeks and 6,120.00 Excise Tax as well as underwriting a $300,000 mortgage to NEVS!
BTW I was mistaken about the sale price of the 550 weeks. I thought I heard $700,000 but that must have been in reference to something else. NEVS paid $1.2 million for the unsold weeks at two resorts and was then able to sell off the 550 Southcape weeks for $1 million! Furthermore, there was no need for a $2.5 million mortgage, since the $400 special assessment for renovations and upgrades was put on the backs of the deeded weeks owners, while Clifford Hagberg collected a tidy sum from both resorts for "administrative" fees!
So there you have it. This is how Festiva takes over resorts, and how Clifford Hagberg operates.
If you call the resort or the HOA president they can tell you which buildings are scheduled to be renovated by what dates. They are doing one bldg, then another, then another, until all are finished, and they have a schedule and timeframe that each bldg should be fnished by. If you contact the resort or Board president you should know whether your building/unit will be renovated by the time you arrive next year. I love this resort and area, I just dislike Festiva.
If you have never been to Blue Ridge Village or have any questions about the area PM me and I will e-mail you a list I have compiled of things to do in the area. I love this area in the summer and winter, but summer here is my favorite. When it is a miserable 96 degrees here at home, the highs will typically be in the 70's in this area. It is a heat wave when it gets into the low 80's. You hike, picnic, swim, golf, do whatever outdoor activity you enjoy and you are comfortable, not passing out from the heat.If I was wealthy I would buy a summer home in the North Carolina high country and spend my summers here, with breaks spent vacationing at the beach, however after a week or 2 at the beach I would be returning to the cool,comfortable High Country climate to spend the majority of my summer.
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Sou13
newbie
Here is the link to the discussion of the changes at Blue Ridge Village:
http://www.tugbbs.com/forums/showthread.php?t=70318&page=12
This discussion (Festiva takes over resort) is about how Festiva takes over control. The earlier one is about what happens when Festiva takes over the management, which is what happened at Blue Ridge Village.
The post you ignored is my earlier post about what has happened at Southcape Resort and will probably be happening at Sandcastle, and how it was accomplished. Where does Festiva Development get the money to buy the unsold inventory at resorts that included Rangeley Lake in Maine and Southcape in MA? From the "pool" who have no control over MF increases, that's where!
http://www.tugbbs.com/forums/showthread.php?t=70318&page=12
This discussion (Festiva takes over resort) is about how Festiva takes over control. The earlier one is about what happens when Festiva takes over the management, which is what happened at Blue Ridge Village.
The post you ignored is my earlier post about what has happened at Southcape Resort and will probably be happening at Sandcastle, and how it was accomplished. Where does Festiva Development get the money to buy the unsold inventory at resorts that included Rangeley Lake in Maine and Southcape in MA? From the "pool" who have no control over MF increases, that's where!
Sou13
newbie
Happy Festiva takeover
I've heard from a long-time Southcape deeded week owner who spent week 25, a fixed "red" week, at Southcape since Festiva paid New England Vacation Services $1 million for the 550 unsold weeks. The price to convert to FAC has risen from $3185 to $5000 and the annual Club MF is $758 for a "red" week.
It is my understanding that the conversion cost is the same regardless of how many points your week is worth, but in the case of a "red" week it is worth 4300 points which is why the Club MF is higher than the MF for Southcape deeded weeks owners.
I checked the Town of Mashpee Assessor's Online Database to find out the assessed value of each of the 55 condo units (To do this, enter "950" in "LOC1" and "Falmouth" in "LOCATION"). If Festiva owns all of units 32-36 they paid $1 million for condo units assessed at $1.25 million, and that's not all they got for $1 million!
What remains to be seen is whether these units will be sold for points or year-round residence, which Barh and Woods had tried in the early 90s.
I've heard from a long-time Southcape deeded week owner who spent week 25, a fixed "red" week, at Southcape since Festiva paid New England Vacation Services $1 million for the 550 unsold weeks. The price to convert to FAC has risen from $3185 to $5000 and the annual Club MF is $758 for a "red" week.
It is my understanding that the conversion cost is the same regardless of how many points your week is worth, but in the case of a "red" week it is worth 4300 points which is why the Club MF is higher than the MF for Southcape deeded weeks owners.
I checked the Town of Mashpee Assessor's Online Database to find out the assessed value of each of the 55 condo units (To do this, enter "950" in "LOC1" and "Falmouth" in "LOCATION"). If Festiva owns all of units 32-36 they paid $1 million for condo units assessed at $1.25 million, and that's not all they got for $1 million!
What remains to be seen is whether these units will be sold for points or year-round residence, which Barh and Woods had tried in the early 90s.
e.bram
Guest
Is Festiva paying MFs on these 550 units bought from NEVS?
Sou13
newbie
Reply to e.bram
Festiva claims to be responsible for maintenace fees and special assessments in all the weeks they own or have been converted to the FAC. That may look good at first but is it really a good thing to have Festiva responsible for MFs for at least 825 weeks? There should be no more special assessments if all those MFs are going to be paid, but now we'll have all kinds of FAC members staying at Southcape because they can't use their points anywhere else, and with all that money in the reserve account, we'll be looking at renovations, upgrades, and all kinds of new ideas that will soon lose their luster when the bills come in or they don't prove to be keeping a lid on the operating expenses.
We also have new people contacting deeded weeks owners, this time by telephone before they ever set foot on the resort. It's still OK for Festiva to have the owners list that has been denied to owners who want to have a say in who has a say at Southcape!
Festiva claims to be responsible for maintenace fees and special assessments in all the weeks they own or have been converted to the FAC. That may look good at first but is it really a good thing to have Festiva responsible for MFs for at least 825 weeks? There should be no more special assessments if all those MFs are going to be paid, but now we'll have all kinds of FAC members staying at Southcape because they can't use their points anywhere else, and with all that money in the reserve account, we'll be looking at renovations, upgrades, and all kinds of new ideas that will soon lose their luster when the bills come in or they don't prove to be keeping a lid on the operating expenses.
We also have new people contacting deeded weeks owners, this time by telephone before they ever set foot on the resort. It's still OK for Festiva to have the owners list that has been denied to owners who want to have a say in who has a say at Southcape!
e.bram
Guest
Sou13:
Better to have Festiva paying than NEVS not!!!! Nothing could be worse than not paying, bad as Festiva might be.
Better to have Festiva paying than NEVS not!!!! Nothing could be worse than not paying, bad as Festiva might be.
Sou13
newbie
The Wrong Club is a “Strangler Fig”
There's an article in the July/August issue of Timesharing Today that compares these "points" clubs to a "Strangler Fig":
The Wrong Club is a “Strangler Fig” -
A marketing group selling club memberships in your association can be very beneficial. In the beginning they can be small and unassuming. Yet if they continue to grow without any control, you may find they are choking the original membership out of what they once had. If you’re involved with a club concept in your association, there are ways to know if they are good supporters or if they have other self-serving interests. . ..... Read More...
If you subscribe you get access to all previous online issues, which should give you access to this article by the next issue if not before.
There's an article in the July/August issue of Timesharing Today that compares these "points" clubs to a "Strangler Fig":
The Wrong Club is a “Strangler Fig” -
A marketing group selling club memberships in your association can be very beneficial. In the beginning they can be small and unassuming. Yet if they continue to grow without any control, you may find they are choking the original membership out of what they once had. If you’re involved with a club concept in your association, there are ways to know if they are good supporters or if they have other self-serving interests. . ..... Read More...
If you subscribe you get access to all previous online issues, which should give you access to this article by the next issue if not before.
Sou13
newbie
"Concierge Services" now telemarketing for Festiva
One evening this week while I was watching primetime TV I got a call from "Concierge Services" calling on behalf of "Festiva" whatever. I said "No, thank you!" and hung up, not even giving the caller a chance to explain how he got my telephone #. I later regretted that I hadn't given the caller the time of day (primetime TV) because I try to at least find out how the caller got my #.
This a.m. I was expecting a call from someone else but when the caller identified herself as "Concierge Services" I asked how she had gotten my telephone #. She suggested that I may have attended a timeshare seminar in the past, and I acknowledged that I had. She went on to try to interest me in a 3-day 2-night stay at a resort and free airfare to get there. What was the cost of this "free" trip? I'd have to book a 90-minute seminar at a resort at 950 Falmouth Road, Mashpee, MA. I didn't get to the part about how soon I'd have to attend this seminar because I stopped her and asked what the requirements are for qualifying for the free trip. She gave me the three requirements:
If I'm married, my spouse must attend with me. If I'm not married, someone in my household has to attend with me.
My household must have an income of at least $50,000 per year.
I must be between the ages of 25-70.
I didn't ask the name of the resort because I knew that I don't qualify. But of course I recognized the address as that of Southcape Resort.
I tried to find out more about "Concierge Services" but that's too common a name to track down on the Internet. One of the sites was "adult-only" content.
She also asked me whether I'd ever used the services of a company whose name has slipped my mind (my notes aren't here with me). Having used that service was not one of the three requirements.
Has anyone else received a call from "Concierge Services"? What's the catch? Is it worth the trip to "Southcape Resort, a Festiva Resort" in Mashpee?
One evening this week while I was watching primetime TV I got a call from "Concierge Services" calling on behalf of "Festiva" whatever. I said "No, thank you!" and hung up, not even giving the caller a chance to explain how he got my telephone #. I later regretted that I hadn't given the caller the time of day (primetime TV) because I try to at least find out how the caller got my #.
This a.m. I was expecting a call from someone else but when the caller identified herself as "Concierge Services" I asked how she had gotten my telephone #. She suggested that I may have attended a timeshare seminar in the past, and I acknowledged that I had. She went on to try to interest me in a 3-day 2-night stay at a resort and free airfare to get there. What was the cost of this "free" trip? I'd have to book a 90-minute seminar at a resort at 950 Falmouth Road, Mashpee, MA. I didn't get to the part about how soon I'd have to attend this seminar because I stopped her and asked what the requirements are for qualifying for the free trip. She gave me the three requirements:
If I'm married, my spouse must attend with me. If I'm not married, someone in my household has to attend with me.
My household must have an income of at least $50,000 per year.
I must be between the ages of 25-70.
I didn't ask the name of the resort because I knew that I don't qualify. But of course I recognized the address as that of Southcape Resort.
I tried to find out more about "Concierge Services" but that's too common a name to track down on the Internet. One of the sites was "adult-only" content.
She also asked me whether I'd ever used the services of a company whose name has slipped my mind (my notes aren't here with me). Having used that service was not one of the three requirements.
Has anyone else received a call from "Concierge Services"? What's the catch? Is it worth the trip to "Southcape Resort, a Festiva Resort" in Mashpee?
Let's think this out...Festiva is going to pick up airfare and give away a free weekend for listening to a 90 minute pitch?
More likely than not they have "hired" a company to try and generate some leads for them. The company will dissolve if any legal suits come out of it and Festiva will claim "oh, that was not us...that was concierge...blah, blah" just like it can claim it was not them to blame at for defrauding owners at Southcape, it was NEVS and NEVS can claim it was improperly trained Outfield Marketing sales people...even though NEVS, Outfield and Festiva have been the key players in this game from the get go and most likely training the "sales" people.
I really hope some AG can connect the dots on this scam and hold people accountable before they decide to move their circus of mysterious relationships and companies that shift and dissolve overnight to other timeshares.
For a hint of how Festiva uses these outside companies check out this link. http://festiva-resorts.pissedconsumer.com/festiva-resorts-rip-off-20100806192761.html
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Sou13
newbie
I checked my notes for the location of Concierge Services" which is Omaha, NE, but am still unable to locate this operation because of the ambiguity of the name.
The last question, whether I'd ever used the services of "Paradise Destinations" led me to three possibilities.
Here's another puzzler. I've heard a rumor (supposedly from an "insider") that Festiva Resorts has declared bankruptcy and is now operating under the name of "Festiva Hospitality Group" but I'm unable to verify this.
The most pressing issue is whether Festiva club members are paying MF for the 102 weeks the Festiva Development Group is using Units 32 and 33 for "sales" which are not sales of the 540 weeks but of "conversions" of deeded weeks to points.
The last question, whether I'd ever used the services of "Paradise Destinations" led me to three possibilities.
Here's another puzzler. I've heard a rumor (supposedly from an "insider") that Festiva Resorts has declared bankruptcy and is now operating under the name of "Festiva Hospitality Group" but I'm unable to verify this.
The most pressing issue is whether Festiva club members are paying MF for the 102 weeks the Festiva Development Group is using Units 32 and 33 for "sales" which are not sales of the 540 weeks but of "conversions" of deeded weeks to points.
Sou13
newbie
Update on WBZ-TV report
Festiva Resorts gave us a statement saying complaints at the Sandcastle are largely related to the actions of Cliff Hagberg and Outfield Marketing, not
Festiva. The company did say, however, that it will return property deeds to any Sandcastle owners who feel they were pressured to join Festiva. http://wbztv.com/local/time.share.investigation.2.1826266.html
Festiva has said that they did not get any of the $3000+ fees that people paid for Festiva points. Per Festiva this money went to Outfield Marketing. Cliff Hagberg (NEVMSLLC) has admitted that NEVS was the agent so if this is accurate, NEVS has profited a lot from shaking down owners. That's the kind of trustee that Southcape and Sandcastle owners could trust! Festiva now has 500 units at Sandcastle. At over $3000 per unit, that is $1.5 M. Members of the Sandcastle owner's advisory group have been asked to ask Cliff who got the proceeds from these sales. So far he has failed to answer the question. We know that NEVMSLLC has access to this site, so perhaps this will be the motivation he needs to answer the question.
Until he was confronted with paperwork at the Sandcastle owners meeting this April, NEVMSLLC kept saying that the companies were completely separate and he had nothing to do with the sales. When the paperwork was passed out at the annual meeting he was forced to admit that NEVS was an agent for Festiva.
Some major discrepancies with the paperwork used to transfer deeds to Festiva have been uncovered. Many were illegally notarized in Denton TX by a notary who swore that she witnessed the signatures. Several people have been identified who now believe that their paperwork may have been forged.
If you bought Festiva points, email:
ownerservices@festiva.travel
and demand that they send you the documents that prove that you transferred your deed.
If you were surprised to find out that you relinquished your deed, this may explain why. The paperwork is very clear and anybody that legitimately signed it would know what they did.
All of this has been communicated to the Attorney General.
Festiva Resorts gave us a statement saying complaints at the Sandcastle are largely related to the actions of Cliff Hagberg and Outfield Marketing, not
Festiva. The company did say, however, that it will return property deeds to any Sandcastle owners who feel they were pressured to join Festiva. http://wbztv.com/local/time.share.investigation.2.1826266.html
Festiva has said that they did not get any of the $3000+ fees that people paid for Festiva points. Per Festiva this money went to Outfield Marketing. Cliff Hagberg (NEVMSLLC) has admitted that NEVS was the agent so if this is accurate, NEVS has profited a lot from shaking down owners. That's the kind of trustee that Southcape and Sandcastle owners could trust! Festiva now has 500 units at Sandcastle. At over $3000 per unit, that is $1.5 M. Members of the Sandcastle owner's advisory group have been asked to ask Cliff who got the proceeds from these sales. So far he has failed to answer the question. We know that NEVMSLLC has access to this site, so perhaps this will be the motivation he needs to answer the question.
Until he was confronted with paperwork at the Sandcastle owners meeting this April, NEVMSLLC kept saying that the companies were completely separate and he had nothing to do with the sales. When the paperwork was passed out at the annual meeting he was forced to admit that NEVS was an agent for Festiva.
Some major discrepancies with the paperwork used to transfer deeds to Festiva have been uncovered. Many were illegally notarized in Denton TX by a notary who swore that she witnessed the signatures. Several people have been identified who now believe that their paperwork may have been forged.
If you bought Festiva points, email:
ownerservices@festiva.travel
and demand that they send you the documents that prove that you transferred your deed.
If you were surprised to find out that you relinquished your deed, this may explain why. The paperwork is very clear and anybody that legitimately signed it would know what they did.
All of this has been communicated to the Attorney General.
e.bram
Guest
500 units: P.T. Barnum was right!
lefty88
newbie
Yeah right
How can you believe that Festiva didn't receive any portion of the $3000.00 that was paid for Festiva Points. In all business transactions everyone receives a percentage. Why would they agree to nothing and then have to pay Maintenance and Assessment Fees on 500 units. This is a typical push the blame game and your falling for it.
How can you believe that Festiva didn't receive any portion of the $3000.00 that was paid for Festiva Points. In all business transactions everyone receives a percentage. Why would they agree to nothing and then have to pay Maintenance and Assessment Fees on 500 units. This is a typical push the blame game and your falling for it.
Sou13
newbie
lefty88,
I'm inclined to believe that Festiva contracted with Outfield Marketing to sell conversions and that is how they take over resorts. They don't have to "develop" anything but a "club"! The resort is fully developed and the deeded owners get assessed for upgrades so that "The Club" (FAC) gets upgraded without Festiva having to invest anything! FAC members get the use of the weeks that are converted to points and the MF paid to the resort is actually lower than the FAC members' club dues except possibly in the case of the most undesireable off-season weeks which nobody wants. Eventually, though, FAC club members will have to use those undesireable weeks or not get to use their points for the year even though they have to pay the MF to "The Club"!
The $1.5 million that NEVS made from selling conversions at Sandcastle is less than 1/2 of the total they made on the deal. At Southcape they made more than $1.5 million between the $1,000,000 Festiva paid NEVS for the 540 weeks and the more than $750,000 they made from selling conversions of deeded weeks to points without paying any MFs or SAs, not even for the two units they used for sales! And NEVMSLLC raked in more than $100,000 per year for "managing" the Southcape Resort management!
If there's nothing illegal about this, there oughta be a law!
I'm inclined to believe that Festiva contracted with Outfield Marketing to sell conversions and that is how they take over resorts. They don't have to "develop" anything but a "club"! The resort is fully developed and the deeded owners get assessed for upgrades so that "The Club" (FAC) gets upgraded without Festiva having to invest anything! FAC members get the use of the weeks that are converted to points and the MF paid to the resort is actually lower than the FAC members' club dues except possibly in the case of the most undesireable off-season weeks which nobody wants. Eventually, though, FAC club members will have to use those undesireable weeks or not get to use their points for the year even though they have to pay the MF to "The Club"!
The $1.5 million that NEVS made from selling conversions at Sandcastle is less than 1/2 of the total they made on the deal. At Southcape they made more than $1.5 million between the $1,000,000 Festiva paid NEVS for the 540 weeks and the more than $750,000 they made from selling conversions of deeded weeks to points without paying any MFs or SAs, not even for the two units they used for sales! And NEVMSLLC raked in more than $100,000 per year for "managing" the Southcape Resort management!
If there's nothing illegal about this, there oughta be a law!