# Not good!



## Carolyn (Nov 22, 2010)

The entire Pelican Resort Club, buildings and marina, is scheduled to be auctioned on Thursday, December 16!!  Really?

http://www.thedailyherald.com/islan...t-slated-to-be-auctioned-off-in-december.html

Any TUG owners have any insight into this?


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## PamMo (Nov 22, 2010)

Wow! How sad. Thanks for posting the link. We were just in SXM - at the Flamingo Resort next to the Pelican.  We got a sales pitches every time we walked by the resort. They were pushing the Pelican Marina Residences pretty hard.


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## Greg G (Nov 22, 2010)

It remains to be seen whether the judge rules in favor of the recent filing by TAPRC (the HOA).  Also based on the last paragraph below it appears even if the worst should happen and the ownership of the resort is lost, the current unit owners would not lose their rights to use, rent, exchange, or sell the use their timeshare intervals, although what maintenance fees would at that point is uncertain.

The following is from the BOD Nov 17 update

— Board of Directors November 2010 Update —


In response to the foreclosure action filed against the Resort by our lender, a company controlled by Richard Sutton, who also owns our management company, the TAPRC (the Tenants' Association) filed for injunctive relief from the court on St. Maarten.  Our motions were heard last Friday, November 12, 2010.  We were represented in court by Mr. Gerrit Van Giffen, of Curacao, and by Mr. Sanders McNew, of our U.S. firm, Proskauer Rose LLP.  Our Chairman was in attendance on behalf of the TAPRC.  



The judge will render his decision on November 26, 2010. 

TAPRC requested that the Court do the following: 



Order our lender, QIT, to accept delinquent payments which their affiliated company, Royal, chose not to pay when they came due; 

Order QIT to discontinue its efforts to accelerate the obligation to repay outstanding loans since the alleged default was actually provoked by Royal; 

Order QIT to discontinue its efforts to foreclose on the Resort; 

Order Messrs. Sutton and Corso to stop making untrue statements to third parties regarding the authority of the Board to levy special assessments; 

Order Royal to add 2 board signatories to each resort funding account to provide control over expenditures; 

Order Royal to enforce collection procedures against defaulting intervals; 

Order Royal to commence immediately with the billings of maintenance fees of the PMR; and 

Order Royal to provide the Board with the owners' database. 

Contrary to a recent article in the Daily Herald, the Court committed to address these issues and the TAPRC feels confident that the self dealing and other misdeeds by QIT and Royal were quite apparent to the Court.  The TAPRC is disappointed with the continuing efforts by Royal to mislead owners by suggesting that foreclosure will not impact owners.  Unfortunately, this is not at all the case.  A buyer at foreclosure, possibly controlled by our management company or lender, will inevitably raise assessments dramatically and continue to milk our Resort until current owners walk away and leave them with a clean slate to redevelop and sell at a huge profit.  



The TAPRC believes that through our legal actions in St. Maarten and Florida, we are in an excellent position to defeat Royal and QIT, as well as their principals.  We do, however, continue to need your assistance in paying the recent special assessment.  If you have already done so, we thank you.  If you have not, please note that the assessment was due on November 15, 2010.  
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In the Nov 6  update from the BOD
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Our Dutch/Netherlands Antilles attorney advises that if the worst should happen and we lose our ownership of the Resort, laws on the island will, nevertheless, protect timeshare owners.  However, we would lose the ownership of our Resort and would no longer have the rights afforded us by our Articles of Organization, which include representation by a Board, voting rights, and the right to set our maintenance fees. Although we would not lose our rights to use, rent, exchange, or sell the use of our timeshare intervals, the financial and other terms associated with our timeshare interests would be governed by a new owner.  It is reasonable to anticipate that annual maintenance fees would increase, perhaps substantially.

Greg


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## miamidan (Nov 23, 2010)

This whole deal seems so strange to me.  Royal in Mexico seems to be one of the best run operations in the world and the Pelican is (from what I read here) just an absolute mess.  Does not make sense.


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