# Festiva Peppertree MF inc



## jercal10 (Sep 23, 2009)

Just learned of next year's 18.8% increase in MF @ Peppertree@Tamarack.
This follows last years 11.8% increase.

I sure am happy that Festiva took over!


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## Lynn (Sep 23, 2009)

*Church Street Inn Maintenance Fee*

After three years of hefty increases, I'm pleased to say that Festiva's Church Street Inn only went up by 4.4%. I hope this means they have the maintenance fee at a level that supports current operations and future reserve requirements, so that future increases can be more in line with normal inflation. For an urban location that is undergoing a very nice looking refurbishment program, the 1 BR rate of $715 does not seem out of line to me.


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## jercal10 (Sep 24, 2009)

Seems pretty hi to me!


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## tombo (Sep 24, 2009)

Lynn said:


> After three years of hefty increases, I'm pleased to say that Festiva's Church Street Inn only went up by 4.4%. I hope this means they have the maintenance fee at a level that supports current operations and future reserve requirements, so that future increases can be more in line with normal inflation. For an urban location that is undergoing a very nice looking refurbishment program, the 1 BR rate of $715 does not seem out of line to me.



$715 for a one bed room is way out of line from my experience. I own at 15 different resorts and I only have one resort that has annual MF's of over $700,that one is a 2 bed 2 bath ocean front in the Caribbean, and it costs $745 annually (recently increased) which I think is ridiculous. I am probably going to sell it for no other reason than they have failed to control MF's. I own a 2 bed room 2 bath ocean front on the Gulf of Mexico which only has annual MF's of $475. My average one bed room week has MF's of about $500 and my average 2 bed room units average $600 annually. I was going to buy at Church Street Inn because I like the resort and love the location but I won't pay $715 MF's for a one bed room. I can trade a week with $500 annual MF's and $164 RCI exchange fees and stay there for $664 a week as a guest.

I too own at a Festiva acquired resort and they put in their own mgt team and they raise MF's everywhere they acquire. All of the resorts they acquire were fiscally sound when Festiva took over and all were operating on reasonable MF's while paying the insurance, the electricity, the taxes, the employees, the upkeep, maintenance, etc. Then when the wonderful Festiva Mgt team takes over they always have to implement double digit MF increases for several years just to be able to pay the bills, they must assess to upgrade because they claim the resorts are in disrepair and about to be downgraded by RCI, and/or they must assess because the resorts have no reserves. Why can every resort operate on lower MF's until Festiva takes over? If Festiva was a good Mgt company they would find ways to keep MF's low rather than send out the same excuses at every resort they take over explaining why the resort can't operate unless MF's are increased. It is a systemic scam to fleece owners at every Festiva acquired resort IMO.

Festiva makes money selling points but they also make money assessing owners, they make money managing the resorts they acquire, and they make more money managing resorts by charging higher MF's and paying themselves higher Mgt fees and salaries. They don't bid out upgrades to get the best deal for owners using sealed bids from at least three companies like most good businesses do, they just pick their favorite contractor. Can you say possible kickbacks or brother in law contractors (IMO)? They take over the boards with mgt and employees so they can spend as they see fit. At other resorts if a mgt company doesn't control costs and keep MF's in line the mgt company is fired and a better more efficient company is hired. Not at Festiva resorts because they control the board and you can't fire them. 

I love many of the Festiva resorts (including the one I own), but I don't like Festiva's business model or the way they fleece the owners when they take over a resort. I hope Festiva goes broke so somehow the owners at these resorts can regain control of their HOA's and hire some Mgt companies who will run their resort for reasonable costs and reasonable annual MF's.


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## jercal10 (Sep 24, 2009)

UR right @ Tamarack they voted their club units as a block--got rid of the traditional board, and installed puppets!


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## tombo (Sep 24, 2009)

jercal10 said:


> UR right @ Tamarack they voted their club units as a block--got rid of the traditional board, and installed puppets!



As they have done at Blue Ridge Village (my resort), The Atrium, Church Street Inn, etc, etc, etc. They know how to take over a resort totally from within using the weeks/points they buy and the weeks they get owners to give them (plus cash) to join Festiva Adventure Club. They vote in a block and they also mail out ballotts with their candidates listed with impressive resumes so even many of the real owners end up voting for Festiva's hand picked board. Of course the Festiva Club members own nothing so they have no vote and Festiva votes those for their candidates in a block along with their unsold inventory. The end result is that Festiva controls the board and the board will vote for any MF increases, assessments, and any other thing Festiva wants them to vote for. That is why MF's at Festiva resorts are so high, the board is looking out for Festiva, not the owners.


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## Sou13 (Oct 10, 2009)

*Have you read the Sandcastle owner's advisory committee report?*

Have you read the Sandcastle owner's advisory committee report?  It's at http://www.tugbbs.com/forums/showpost.php?p=801803&postcount=121

Sandcastle is not yet included in the "Festiva Family of Resorts" but has acquired more than 500 weeks and Sandcastle owners got walloped with more than $880 per week special assessment in addition to an annual MF increase of more than 5% as a result of the unholy alliance between NEVS and the FAC via Outfield Marketing.


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