# Seapointer - Special Levy ... "soon"



## HuskyJim (May 1, 2007)

For all Seapointer owners,

I just received my 2005/2006 Annual report for The Seapointer (aka “Le Petit Salon Share Block Limited") in the mail today.  Some not so good news, and at least an explanation about the issues with RCI …..

In it, in a letter dated April 11, 2007, the Chairman, SJ Lamont, spelled out some details about the need for a special levy, and the history of poor maintenance and deteriorating conditions of the resort, and the need for a “… total refurbishment of the entire resorts common areas and furnishings and fittings should be undertaken ….”.

Some other quotes:

“Shareholders are advised that although the exact costs of the whole project have not yet been finalized these are estimated to be in the region of between R7 million and R8 million”.

“The Board of Directors has therefore no choice but to implement a Special Levy to fund a refurbishment project”.

“As soon as the exact costs have been established the Managing Agent will be instructed to advise Shareholders of the Special Levy …”

“Currently we estimate the Special Levy including VAT will range between R5750 for a two bedroom unit and R5000 for a one bedroom unit.”

Also,
“Fortunately, RCI have indicated that they will have no hesitation in fully reinstating the resorts exchangeability once it has been completely renovated and refurbished”.

So, how long to fix it????

So who’s hanging around to see what happens?

I'm not good at the Rand conversion - how much is that in US Dollars?

Jim


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## rhonda (May 1, 2007)

HuskyJim said:


> “Currently we estimate the Special Levy including VAT will range between R5750 for a two bedroom unit and R5000 for a one bedroom unit.”
> 
> I'm not good at the Rand conversion - how much is that in US Dollars?


At today's R7 to the US Dollar ... the 2Br is $821 and the 1BR is $714.  The 2BR figure is higher than I paid originally for the week with 6yrs RCI.  Sigh.

Edit to add: Jim, thank you for passing along the info.  I hadn't yet received my update.


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## tonyg (May 2, 2007)

I expect this will greatly reduce the number of US owners- I already know of 2. The question will be-is the resort going to take deed backs or are they going to go with eventual foreclosure ?


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## Carolinian (May 2, 2007)

Sad, but not surprising.  This is standard operating procedure for Club Leisure Group (owners of Seapointer's management company, First Resort) and its leader Stewart ''Bullfrog'' Lamont.  The purpose is to get your weeks into the ownership of Club Leisure, which will ultimately sell off either some units or the entire resort for a big profit.  The entire board at the Seapointer seems to be made up of Club Leisure heavies, so they are in total control.

Please don't give your weeks back to these scoundrels.  That is very likely the reason they manufactured this crisis to begin with.  If you want to dump them, sell them on eBay or Bidshares for $1 or offer them free to other Tuggers.

For background on Club Leisure and the Bullfrog, see www.rimeshare.org/77.html and scroll through for Club Leisure, Lamont, and various of its tenacles like Club Resorts International (CRI), Flexi-Club, Star Club, etc.  There is even more material going back years in the archives.

A point to ponder is that Lamont and his shady cronies are the inventers of the multi-developer points system concept, and are in some ways some of the founders of RCI Points.  Lamont's South African CRI operation gave birth to CRI of Europe.  CRI of Europe was merged with RCI's GPN to create, you guessed it - RCI Points.  There are reports that Lamont's crowd helped advise RCI in setting up GPN.


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## Sandy (May 2, 2007)

*Knew something like this might be coming*

My first reaction is to just give it back.  After all, the prices they are asking are more than most of us paid for the units!

I am cautions because of what Carolinian posted about not giving back to shady people.  My 2008 week has not yet been deposited (because I can't, not because I did not want to) and I have already used the 2007 weeks. 

Carolinian also posted that we should consider DAE and other independents. Good suggestions, but that means paying the levies and maintenance fees. Ouch!

Since I don't have to make an immediate decision, I will wait a bit and read some other ideas here. 

Thanks for the update.


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## HuskyJim (May 2, 2007)

*More info from the Annual Report*

In another section of the Annual Report, there are minutes from the Annual Meeting held on May 26, 2005 (yes – 2005).  The only significant part of the minutes:

“The Chairman informed the meeting of the overall situation of the resort regarding the structure building and the cost of a partial refurbishment.  Mr. Ridl stated that he had employed an architect to give direction and advice on the resort.

The meeting was informed that RCI exchanges mostly used the resort and after an RCI inspection, which was due shortly, RCI would most probably disaffiliate this year.

The Chairman stated that there was three ways to go in order to upgrade the resort, these being:
1.	A partial touch up ay a cost of R1 million.
2.	A partial refurbishment at a cost of between R3 and R4 million.  If this was the route taken, a special levy would need to be raised.
3.	Redevelop the whole site and a total rebuild of the resort at a cost of R10 to R12 million.  This would equate to between R6,000 and R7,000 per owner.  If this was the course decided upon, a Special General Meeting would need to be called to obtain a directive from the Shareholders.  This would require 75% of owners needed for a special resolution.  The meeting was informed that documents would be prepared and sent to owners for feedback then a Special General Meeting would be called.”

So this happened in 2005, and RCI finally disaffiliated in early 2007.

Did anyone receive an Annual Report for 2005?
This one that I received is called the "Annual Report 2005/2006".

Jim


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## king1 (May 2, 2007)

"Please don't give your weeks back to these scoundrels. That is very likely the reason they manufactured this crisis to begin with. If you want to dump them, sell them on eBay or Bidshares for $1 or offer them free to other Tuggers."

People will line up to buy them for $1, won't they?


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## philemer (May 2, 2007)

king1 said:


> "Please don't give your weeks back to these scoundrels. That is very likely the reason they manufactured this crisis to begin with. If you want to dump them, sell them on eBay or Bidshares for $1 or offer them free to other Tuggers."
> 
> People will line up to buy them for $1, won't they?



Not if you are honest and inform the potential buyers of a "pending" Spec. Assessment.


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## Carolinian (May 2, 2007)

It would be nice to organize members to try to install an independent board and oust Club Leisure from control of the resort.  It may be that someone could make contact with members living in SA, and get they proxies from US-based owners.

Club Leisure made this mess, and they should go.


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## king1 (May 2, 2007)

"It would be nice to organize members to try to install an independent board and oust Club Leisure from control of the resort. It may be that someone could make contact with members living in SA, and get they proxies from US-based owners.

Club Leisure made this mess, and they should go."

Ousting Froggie would certainly be a noble goal, but the chances of success are even slimmer than giving away Seapointer weeks.  He probably already has a comfortable number of votes, and trying to organize resistance long distance will present major difficulties. 
 My friends who own there were about ready to bail  because of levy increases, and this will surely push them over the edge.  He'll pick up quite a few weeks like that on just the rumor of a special. Once that bunch gets control, the resort is likely doomed.  There will be a flood of deed backs, and then Lamont and Co will be majority owners.


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## Greg (May 3, 2007)

I just received my Seapointer annual report and wonder what "VAT" stands for in the Special Levy including VAT? (Taxes?)

Further, just to emphasize the state of repairs, there were black and white photos showing some of the rough edges.

Sounds to me as the resort would be closed until all work was completed.


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## grest (May 3, 2007)

I'm sure Lamont has all his ducks in a row...this plan did not come together overnight...
connie


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## Carolinian (May 3, 2007)

To control a board, one needs votes.  When there are no controversies, an organized effort to get proxies by management oftens succeeds because they are operating in a vacuum with no opposition.  Bring on some problems, and there is the potential to wake the sleeping giant, and send those proxies another direction.  All it takes is the organization, which for this resort would certainly take some leadership on the ground in SA.

When I look at the OBX, I see a history of succesful owner revolts against management.  The four First Flight resorts over the space of about a year each organized, took their HOA boards away from the developer, and then ousted the developer as management.  At Dunes South, some real mismanagement that led to a special assesment of about $100 for the pool led to an organized owner revolt that elected one of the two directors up that year and almost elected the second.  Dunes South now finally has a board that is not under the thumb of management.  Unfortunately while there has been quite a bit of grumbling, there has not yet been enough of a spark to ignite an organized effort to depose the developer/management dictatorship at long sold-out Barrier Island Station Duck and Barrier Islands' Ocean Pines.


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## Carolinian (May 3, 2007)

Greg said:


> I just received my Seapointer annual report and wonder what "VAT" stands for in the Special Levy including VAT? (Taxes?)
> 
> Further, just to emphasize the state of repairs, there were black and white photos showing some of the rough edges.
> 
> Sounds to me as the resort would be closed until all work was completed.



VAT is Value Added Tax, something common in Europe as well as other parts of the world.  It is a sales tax hidden in the price of the goods or services rather than added on at the end where one can see it like our sales taxes.


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## Sandy (May 3, 2007)

*Fight or Flight?*

I am reading with great interest here.  I guess for me it will boil down to what I have versus what I give up.    

The HAVE - has always been great as a trader.  Many of you see similar results and I have posted some of my fabulous trades.  I never actually planned to go and stay at Seapointer.  I have been to Capetown twice, but when I go again I will stay in a more central location, especially given what I know about the condition of the resort.  So for me, the main bang-for-the-buck was the excellent trading with RCI.  

The HAVE - Carolinian and others suggested trying Trading places or DAE.  I have not done either and to do so I would first have to pay both my 2008 maint fee as well as this new special assessment.  I am not sure this is an economical way to get an exchange, considering I have other weeks and points to travel with. 

The GIVE-UP - I would lose bragging rights on the most frugal exchanges I have ever gotten.  But I believe I could still get some of these resorts, but they might "cost" a bit more by using points or other weeks I own. So self-satisfaction and bragging rights (even if only in my own head) are an intangible benefit 

The GIVE-UP - If I give the unit back, I am no longer obligated to the Seapointer group.  I don't owe any money on the cost of the unit, so my only obligation is for future use. They probably can try to collect the future maint fees, but why?  If I am giving the resort back to them and that is what they are after... 

The GIVE-UP - I don't believe a sale would be ethical or feasible.  Anyone buying would be told about the special assessment and that makes a good deal less than possible.  Plus, there are many more good timeshare buys right now without all of the international hassle or fighting.  If I were buying again today, I would not buy Seapointer b/c there are other resorts available.  

So, as my thoughts progress, I guess this is the best place to vent them out with you guys, other interested Seapointer owners.  Plus, I benefit from hearing your feedback and other thoughts. 

Thanks for sharing.


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## Sandy (May 3, 2007)

*Tried to edit my thread*

But it wouldn't work. 

I just wanted to add that the cost to pay the special assessment for my two units, each one bedroom, would be over $1500 USD right now.  That is NOT going to happen!  I would then have to pay the MF on top of that, and then the exchange fees.......

NOT - I can do this much cheaper.  Looks like I am getting closer to a resolution, talking myself into/out of it.


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## king1 (May 3, 2007)

Sandy,
I'm advising my Seapointer owner friends to do exactly that same thing.  It will be easy to pick up good trading weeks for less than Lamont wants to squeeze out of them for specials.  AND then they won't have to worry about those big levy increases all the time.  Sure it plays right into the crook's hands, but what else can you do?  You just have to console yourself with memories of all those good trades, and then move on.  SA is still a great game, just a different one with different rules.  I've made over 60 SA trades, and thought more than once that it was all over.  So now it's still going strong, just at a slightly higher price point.


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## Carolinian (May 3, 2007)

You might try selling it on the South African auction site www.bidorbuy.co.za , giving full info on the special levy, of course.  Yon never know, a South African who can go there, might bid a rand on it!  That is better than giving it to Lamont.


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## Sandy (May 3, 2007)

Carolinian said:


> You might try selling it on the South African auction site www.bidorbuy.co.za , giving full info on the special levy, of course.  Yon never know, a South African who can go there, might bid a rand on it!  That is better than giving it to Lamont.



Good idea, again, Carolinian.  For now, I am waiting and watching.  Perhaps I will be ready to make a move soon, but not right now. 

However, don't you agree that the financials make little sense to keep it and pay even as a tiger trader?


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## Sandy (May 5, 2007)

Ok, further thoughts. 

I mentioned this scenario to my friends, some who own timeshare.  The unanimous recommendation is to keep the Seapointer. Here's why:

I showed them the many trades I have gotten since ownership in 2002 (Manhattan Club, Houses Summer Bay, Morrits Grand Cayman, etc.)  Showed the initial low entry cost for my two units, each one bedroom. 

They said "you must be crazy to give this tremendous trading power up..." or words to that effect.  The ones who own timeshare complain about not getting what they want through RCI.  They would "die" for trading power such as this. 

I guess my real dilema right now is that I have too many weeks/points to effectively use, and I don't want to be at the mercy of the Seapointer HOA for future insane special assessments. 

But I wanted to present the sentiments of my friends who would definitely keep a Seapointer if they had one.  BTW, these are some of the same friends who did NOT buy Seapointer when I first told them about it.


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## Carolinian (May 6, 2007)

Maybe these people would be interesting in buying cheap the weeks of those who want to bail out.


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## grest (May 6, 2007)

The more I think of this, the more worrisome it becomes...if such a total refurbishment needs to be done, will the resort indeed need to shut down for a period of time?  And if so, our weeks won't even be available to us, though we will be paying maintenance fees plus special assessment...and who knows how long any of this will take.  
As others have said, this has been a good ride, but it may be over for me...
Connie


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## akfoy (May 6, 2007)

If someone did want to give away there Seapointer, what would be the best way to go about it. I would be will to give mine back to the resort if they would take it and just write me off.


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## Sandy (May 6, 2007)

Carolinian said:


> Maybe these people would be interesting in buying cheap the weeks of those who want to bail out.



You are quite correct, Carolinian.  My friends surely would take mine off of my hands, and they mentioned to me that if anyone wanted to offer a giveaway or a $1 item, they would be interested. 

Again, I am not sure which way I will go at this point in time.  I have not yet even received my packet with the info on the Special assessment.


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## Carolinian (May 6, 2007)

akfoy said:


> If someone did want to give away there Seapointer, what would be the best way to go about it. I would be will to give mine back to the resort if they would take it and just write me off.



Why don't you email Sandy and see if one of his friends wants it.  That is much better than letting Lamont get his grubby hands on it.


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## Sandy (May 6, 2007)

Carolinian said:


> Why don't you email Sandy and see if one of _*his *_friends wants it.  That is much better than letting Lamont get his grubby hands on it.



Actually, it is a HER (Sandy!) BTW, Carolinian - guy or gal?


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## Carolinian (May 6, 2007)

Sandy said:


> Actually, it is a HER (Sandy!) BTW, Carolinian - guy or gal?



Sorry, one of my colleagues named Sandy is a guy.

I am a guy.


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## king1 (May 7, 2007)

Sandy,
If you do sell your friends those Seapointer weeks, you may have to look for new friends in the future.  Just dump them now before you or anyone else gives those crooks more money.  JMHO of course, worth all it cost you.


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## Sandy (May 7, 2007)

king1 said:


> Sandy,
> If you do sell your friends those Seapointer weeks, you may have to look for new friends in the future.  Just dump them now before you or anyone else gives those crooks more money.  JMHO of course, worth all it cost you.



Hi King1, 

Do you mean that there might be more special assessments? Or other surprises in store I have not thought about?


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## king1 (May 7, 2007)

That management group has a bad reputation, so you can expect them to figure out some way to enrich themselves at the expense of the owners.  Hopefully things will go well after these improvements, but it's very likely that the whole special thing is just a ploy they manufactured to pick up weeks on the cheap.


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