# Disney: Old Key West Extending Land Lease By 15 Years: Meeting Today Sept 24, 2007



## Seth Nock (Sep 25, 2007)

THE PROPOSAL:

Disney had a special meeting to announce that they will be extending the land lease from the Jan 31, 2042 to Jan 31, 2057.  Current owners can choose to opt in or opt out.  Should an owner choose to opt in, there is $25 per point extension fee.  This fee is reduced to $15 per point if the fee is paid by Feb 29, 2008.  If they choose to opt out, there ownership will end Jan 31, 2042.

THE MEETING:

The meeting began at 2:05 pm.  It lasted for about an hour.  There were 53 owners/owner family members representing about 30 membership families.  There were about 20 Disney staff members.  They outlined the offering and accepted questions.  

PAYMENT:

Owners can choose to pay the "assessment" in 1 lump sum or finance it @ Disney's member financing rates.  All owners will be given a $30 credit on their maintenance fees to cover the cost of any notaries that they must get.  They will also be sent a Lithograph to commemorate the "extension event."

NEW DEVELOPER PRICING:

Developer pricing is changing from $92/ point for contracts ending in 2042 to $96/ point for contracts ending in 2057.  I would hate to have paid $92 and now have to fork over another $15/point!


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## Steamboat Bill (Sep 25, 2007)

Seth Nock said:


> They will also be sent a Lithograph to commemorate the "extension event."
> 
> NEW DEVELOPER PRICING:
> 
> Developer pricing is changing from $92/ point for contracts ending in 2042 to $96/ point for contracts ending in 2057.  I would hate to have paid $92 and now have to fork over another $15/point!



Will it commemorate OKW owners loosing $6pp???


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## Time2Ponder (Sep 25, 2007)

Shouldn't this thread be inthe "Point Systems" forum? DVC is not a hotel-based timeshare system.


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## Seth Nock (Sep 25, 2007)

Probably.  If a Moderator would move it, I would appreciate it.


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## OnMedic (Sep 25, 2007)

Time2Ponder said:


> Shouldn't this thread be inthe "Point Systems" forum? DVC is not a hotel-based timeshare system.



Does it REALLY matter?


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## timeos2 (Sep 25, 2007)

*Milk the owners. In this case renters.  Disney follows the pack.*



Seth Nock said:


> THE PROPOSAL:
> PAYMENT:
> 
> Owners can choose to pay the "assessment" in 1 lump sum or finance it @ Disney's member financing rates.  All owners will be given a $30 credit on their maintenance fees to cover the cost of any notaries that they must get.  They will also be sent a Lithograph to commemorate the "extension event."
> ...



And there were those that thought Disney was different than the typical, money grubbing timeshare sales operation. Welcome to the world of long term lease!  Makes timeshare and used car sales look principled.


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## JudyS (Sep 26, 2007)

Time2Ponder said:


> Shouldn't this thread be inthe "Point Systems" forum? DVC is not a hotel-based timeshare system.


I would say that DVC is both a Points System and a hotel-based system. Disney owns quite a few hotel rooms, and most of the DVC resorts actually share grounds and services with a Disney hotel.  I have often heard Disney described as a hotel-based system.

Seth, are you willing to speculate as to how this may affect the resale price of OKW points?


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## Seth Nock (Sep 26, 2007)

JudyS said:


> I would say that DVC is both a Points System and a hotel-based system. Disney owns quite a few hotel rooms, and most of the DVC resorts actually share grounds and services with a Disney hotel.  I have often heard Disney described as a hotel-based system.
> 
> Seth, are you willing to speculate as to how this may affect the resale price of OKW points?



My buyers and I have been debating the issue.  I am under the belief that certain people will only buy the 2057 expiration date units, and others will want to save $.  

The past sale prices for many of the units I was involved with of Saratoga Springs were about $81/point, Old Key West were about $69/point, Animal Kingdom were about 90/point, Beach Club were about $89/ point, Boardwalk were about $80/ point, Wilderness were about $78/ point Hilton Head were about $65/ point and Vero were about $60/ point. I am listing these prices, as most people are using higher figures for their calculations.  

Based on these figures, I am guessing that Old Key West will be about $81/ point for 2057 expirations.  Many of my buyers are guessing it will be roughly $77/point.  

I am just questioning which will be the more desired contracts, as I don't know how to advise my owners.


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## tomandrobin (Sep 26, 2007)

I have read that the reason for the extension of OKW is two part. One to sell-off excess OKW inventory and two help give DVC to sell since SSR will reach "sell-out" status in the first quarter of 2008. The new buildings for AKL won't be open until 2009, same as for the recently announced DL California location. 

I think the DVC was forced to offer the extension earlier then it had planned. There is still 35 years left on the orginal contracts! Most DVC buyers were not 21 years old when they bought. So I see this as only a resale benifit to DVC, not to the original OKW owners.


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