[ 2014 ] Any Barrier Island Station Duck Owners - My husband is running this year

Hello. Last year I posted that I was volunteering myself for nomination to the Board of Directors at Barrier Island Station Duck - a 30 year old resort with a fabulous location on the Outer Banks, but one that had been neglected for years. Under SPM Management the resort is coming around and this year there was a more than $1200 assessment to try and get the resort back to the level it was when we bought. Last year, while my name was up for election, it wasn't on the official ballot (had to be written in) and while I received a far number of votes, it was not enough to overcome the wishes of the President who controls more than 150 weeks. I wrote all about this previously and don't want to bore anyone. Anyway, after making a suggestion at multiple owners meetings, that potential candidates be asked in advance of the notice of the meeting going out as to their interest in running, the Board finally agreed to this proposal made by my Husband and Myself. I haven't seen the letter announcing the meeting, but I have been told his name will be on there. Since I ran last year as well as the prior year, I am not running again this year because mathematically until things change, it is difficult for anyone who the President doesn't favor to win. However, my Husband has agreed to run - his name is Carmen DiGiovanni - and I am hoping that anyone who is a TUG reader and BIS Duck Owner will consider giving him their Proxy or even better, their vote at the Meeting. Please read his biography. The President has been in that office for more than 25 years and I think it is time for a change. Thank you.

I am bumping this up in case anyone didn't see it especially since I learned yesterday that the letter announcing the Owners Meeting will not include the names and biographies of those who are running for the Board. This is even though the forms indicating desire to serve were due a month ago and my Husband sent his in on time.

Instead I have been told that information will appear only on the SPM web-site. This doesn't make a whole lot of sense to me since everyone receives the letter and only some people know about the web-site. In addition Owners can't vote electronically and the meeting will not be held on SKYPE even though a number of people had suggested it. So it appears the Internet is used only when it serves to benefit the current Board. Doesn't seem fair to me. Hoping to reach some Owners and if you agree, try to attend the meeting in person or if you can't please name either Faye DiGiovanni (me) or Carmen DiGiovanni (husband is running for the Board this year) as your proxy.

It is a shame no one else is responding but I thank those who have looked at this. There is a Barrier Island Station Duck Facebook group - I realize a lot of people find Facebook too intrusive. But there is an owner with that group with a unit in the 800 building that will be listing her property in the last minute section on TUG. It is the week of October 19-October 26 so is perfect for someone who wants to attend the Owners Meeting.

I realize I am the only one posting here, but if there is an Owner here who wants to attend the meeting, but has no place to stay, there is a unit available in the 800 building starting late Thursday through Sunday, and the only cost is the cleaning. PM me.

Hi Faye, I sent a PM

I had a few questions and interest in the use of the time at BIS.

Thank you.

Hey Fay - I thought I had responded to your post. Anyway, I did write your husbands name on my proxy card ~ Ron

Egret1986 - I have a telephone message into you. Please call me back. And thanks Ron. Maybe you responded on another Board.

Thank you, Faye.

I look forward to the meeting on Saturday and much thanks to you and Judy for giving me the opportunity to stay on the Outer Banks for the weekend in order to attend the two meetings. A great time of year to be there!

I realized when I entered the unit on Friday morning that it was 30 yrs ago this week

that my husband and I stayed at BIS and bought our first timeshare week. We were young, poor and looking for a freebie stay on the Outer Banks. I had been going there for years with my grandparents and wanted to share the area with my husband. The BIS developers put us up in one of the whole ownership units for a 3 day stay. We were ga-ga over the place. We bought a late March week in the Penny Hill Station building, which hadn't been built yet. At the time, we had no idea what we were doing or how we would pay for it. Fortunately, I believe that salesman was a fairly good guy. He talked us into one of the smaller 2BR units that was a week 12, which was the final week of blue before the weeks turned white. He suggested that one day that week could become a white week. We owned that week for 25 years. We used it sometimes, but exchanged it most years for some fantastic vacations. I'm pretty sure that we paid $2600 for the week; a small fortune at the time for us. That timeshare week afforded us many, many vacations over the years. We're happy that we were convinced by the salesman to buy that week 30 years ago.

Yes, Barrier Island Station deteriorated over the years. I think that SPM taking over the management of the resort was a real positive. SPM also manages the only Gold Crown resort on the Outer Banks and has a good reputation in the industry. But as Faye has stated and attempted to infiltrate, it is long overdue for changes on the BOD. I look forward to attending today's meeting. Good luck to Carmen!

The weather is beautiful and I am so happy to have the opportunity to spend the weekend here. I was just going to make it a day trip. The unit is clean and well-maintained. This resort has been a part of my life for 30 years and I love coming here when I can. Thank you again, Judy and Faye, for the accommodations!

Egret1986 - thank you for attending the meeting in person and for your report. I am so happy to report that my husband was elected to the Board and the last remaining representative of the original development team was voted out. This was a long struggle - took three tries - but hope to see BIS Duck back near the level it was when we purchased 20 years ago. Unfortunately at the time I knew nothing about TUG and we paid a full $15K for our Week 34 unit in the 100 building. We sold that a number of years ago for about $6K (we would never get that today) but thanks to TUG, the remaining three weeks we own were all purchased resale. And to anyone on TUG who sent in a proxy designating Carmen or I, thank you so much..

Fayeoctober said:

Egret1986 - thank you for attending the meeting in person and for your report. I am so happy to report that my husband was elected to the Board and the last remaining representative of the original development team was voted out. This was a long struggle - took three tries - but hope to see BIS Duck back near the level it was when we purchased 20 years ago. Unfortunately at the time I knew nothing about TUG and we paid a full $15K for our Week 34 unit in the 100 building. We sold that a number of years ago for about $6K (we would never get that today) but thanks to TUG, the remaining three weeks we own were all purchased resale. And to anyone on TUG who sent in a proxy designating Carmen or I, thank you so much..

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Congrats - make sure my week gets redone first ~ Ron

Congratulations!

Fayeoctober said:

Egret1986 - thank you for attending the meeting in person and for your report. I am so happy to report that my husband was elected to the Board and the last remaining representative of the original development team was voted out. This was a long struggle - took three tries - but hope to see BIS Duck back near the level it was when we purchased 20 years ago. Unfortunately at the time I knew nothing about TUG and we paid a full $15K for our Week 34 unit in the 100 building. We sold that a number of years ago for about $6K (we would never get that today) but thanks to TUG, the remaining three weeks we own were all purchased resale. And to anyone on TUG who sent in a proxy designating Carmen or I, thank you so much..

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This is a fortunate turn of events for current owners, IMO. Congratulations! Now go spend that special assessment wisely and get the maintenance fees right to sustain the resort.

Congratulations, Carmen and Faye, and Thank You for your efforts in initiating change

Maple_Leaf said:

This is a fortunate turn of events for current owners, IMO. Congratulations! Now go spend that special assessment wisely and get the maintenance fees right to sustain the resort.

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"....get the maintenance fees right to sustain the resort."

The original developer let this resort go downhill by putting money into another resort up the road that was still in active sales. The buildings are very unique in design at BIS Duck. There were many years of deterioration and right now those SAs are going towards structural and exterior work. The interiors will be done once all that is completed if there's money left over.

They mentioned at the meeting that the maintenance fees would be kept the same as last year for several reasons. I don't remember if those reasons were given. I do understand that there was a special assessment at both BIS Duck and their sister resort, Ocean Pines. BIS Duck, any size unit (up to 3BRs) is $645 and at Ocean Pines (2BRs), it's $506. I question if these fees will indeed sustain the property.

The renovations have begun on the 100 Building! Next will be the 300 building, and if time allows before the season starts, the 500 building will be done. I am very hopeful.

BIS-Duck sustainability?

Egret1986 said:

BIS Duck, any size unit (up to 3BRs) is $645 and at Ocean Pines (2BRs), it's $506. I question if these fees will indeed sustain the property.

The renovations have begun on the 100 Building! Next will be the 300 building, and if time allows before the season starts, the 500 building will be done. I am very hopeful.

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Good luck, but hope is not a strategy. FYI, we own at Royal Dunes in Hilton Head, also a SPM-managed property. Our units are all 3BR/3BA, 1460 sq. ft. Our operating budget alone is $595 per unit. On top of that our capital budget is $240. I would expect your 3BR units at BIS-Duck to require a similar long-term commitment.

I have my doubts about the current maintenance fees being sufficient as well but for now they are staying as is in 2015. Unlike some timeshares, some of our units are two bedrooms with or without a lock-out feature, some are three bedrooms, etc. There are all different configurations and it was my opinion that those owners with units containing three or more bedrooms whose weeks fall between 23-33 should pay higher maintenance fees or at least a higher share of the special assessment since they are using the services more. No one supported that idea and I am not sure whether the by-laws would allow it, but I have not understood the rationale for two bedroom winter weeks paying the same fees as three bedroom summer weeks. Once RCI made some changes as a result of a 2009 court case, it isn't that all red weeks trade the same. I think some people still think that is the case. Well anyway, I have dropped that idea but I still think that those that use more, should pay more.

Curious about what other people think.

Cross-subsidization

Fayeoctober said:

I have not understood the rationale for two bedroom winter weeks paying the same fees as three bedroom summer weeks.

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2BR owners are subsidizing 3BR owners, since they pay the same maintenance fees but any housekeeper or maintenance man will tell you that it costs more to clean and maintain a 3BR. 3BR owners should be allocated a correspondingly greater percentage of the operating and capital budget than 2BR owners. It's not just fair it's good business.

I agree and that's the way MFs are charged at some of my other resorts.

Maple_Leaf said:

2BR owners are subsidizing 3BR owners, since they pay the same maintenance fees but any housekeeper or maintenance man will tell you that it costs more to clean and maintain a 3BR. 3BR owners should be allocated a correspondingly greater percentage of the operating and capital budget than 2BR owners. It's not just fair it's good business.

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By the size of unit. 1BR, 2BR and 3BR each have corresponding maintenance fee amounts. At one resort where I own, the dedicated 2BR units have a much lower maintenance fee than the 2BR lock-outs, which are two complete 1BR units when locked out. The dedicated 2BR (slp 6) MF was about $560, while the 2BR lock-out (slp 8) is double the 1BR (slp 4) MF at $980.

I'm not sure that I have heard of any resorts charging MFs by the color designation. I can see where it could be a positive for the off-season week owners, but I don't see that ever happening.

Lockoff units

Egret1986 said:

At one resort where I own, the dedicated 2BR units have a much lower maintenance fee than the 2BR lock-outs, which are two complete 1BR units when locked out.

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Not surprising, since it makes sense that cleaning, maintaining and renovating two kitchens (in a 2BR lockoff) costs more than the one kitchen in a standard 2BR. It's only fair that 2BR lockoffs pay a higher maintenance fee than standard 2BR.

I agree but have gotten nowhere with this suggestion at Barrier Island Station. I ran for the Board in 2012 and 2013; hubby ran this year and won. But one owner said she wouldn't vote for me because I made this suggestion. I feel it makes good economic sense but won't be pursuing it for awhile.

Sounds like a good strategy

Fayeoctober said:

I agree but have gotten nowhere with this suggestion at Barrier Island Station. I ran for the Board in 2012 and 2013; hubby ran this year and won. But one owner said she wouldn't vote for me because I made this suggestion. I feel it makes good economic sense but won't be pursuing it for awhile.

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Your husband may want to avoid rocking the boat too much at first, it pays to pick your battles on these HOAs. I would spend my political capital pressing for completion of these renovations and collection of special assessments. You have to be willing to foreclose on delinquent accounts and recycle the units through a resale agent to new owners. I know Palmetto Marketing handles resales for many SPM properties, but I think you may have someone else at BIS-Duck. Nevermind, you just need an efficient process to get the units out of the hands of delinquent owners and into the hands of new owners that are willing to support the new direction of the resort. If you can't do this successfully, BIS-Duck will have ongoing financial and political problems so it's important to focus on upgrading the resort and cultivating an ownership base willing to support the improvements.

Thanks for the input Maple Leaf.

How is the renovation going?

Egret1986 said:

The renovations have begun on the 100 Building! Next will be the 300 building, and if time allows before the season starts, the 500 building will be done.

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Has the change in the Board moved the renovation forward? Also, has anyone heard of a company called Capital Resorts nosing around in any delinquent inventory the HOA may have?

I'm heading down to the Outer Banks for the OBX Taste of the Beach mid-March

Maple_Leaf said:

Has the change in the Board moved the renovation forward? Also, has anyone heard of a company called Capital Resorts nosing around in any delinquent inventory the HOA may have?

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I'm staying in Kitty Hawk at the "new" Beachwoods resort. I hope to get down to Duck and look around, maybe take some pictures. I haven't heard anything about Capital Resorts.

After seeing and listening to what was going on at Barrier Island Station Kitty Hawk, where I am also an owner; I have to believe the Duck resort probably needs someone to come in and infuse the resort with a big chunk of money like Gold Key Resorts did with Kitty Hawk. I just feel that the special assessment at BIS Duck is simply a small bandaid. It is such a great property, but needs so much to sustain it and get it back on track.

I'll report back when I get back from the beach.

What info do you have on Capital Resorts?

Not much...just connecting a few dots

Egret1986 said:

What info do you have on Capital Resorts?

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A tugger posted that his friend bought some "Capital Points" from Capital Resorts, a points vacation club that grew up overnight like a mushroom. Evidently they pitched him the idea that they had access to inventory at SeaScape down your way in Kitty Hawk, managed by SPM. It also appears that Capital Resorts now has access to inventory at Hollywood Beach Tower and La Costa Beach Club, both managed by SPM, and both subject to big special assessments. Now BIS Duck has a big SA and another SPM-managed property, Atlantic Terrace in Daytona is getting ready for a big SA as well. It's just speculation, but I'm connecting dots and starting to see some fuzzy images. I suspect SPM has a new business model for reinvigorating resorts. The HOA declares a big SA, panicky owners default on their units, those units go into Capital Resorts' big sausage-making machine and come out as "Capital Points" to be sold as a vacation club with another shiny new resort in its portfolio. Just speculation at this point, but interesting.

Egret1986 said:

I'm staying in Kitty Hawk at the "new" Beachwoods resort.

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just became an owner appreciate any updates. any news when sales will begin? prices?

Stephen