# Update on VCI trust



## geoffb (Mar 26, 2006)

We attended a meeting for VCI owners in Cancun last Tuesday. My understanding is that they will be having a meeting like this every week for some period of time.

The meeting was a presentation and Q&A with Roger Sherman (head of Royal Resorts sales and marketing) and Richard Sutton. I took the opportunity to thank Mr. Sutton in person for 29 great years at VCI after the meeting.

The presentation outlined the history of the trust and the proposal made in September 2005 to the members and then went on to describe a revised plan based on the survey that members received at that time. The stated goal of the plan presented is to offer "maximum value to members."

They stated that VCI will be offered for sale on the open market later in 2006 to guage the market value and see if the assessment done recently is accurate (approx. $40 million).

At the same time members will be asked to decide if they want to reinvest their residual rights and renew their membership at VCI for an addtional 30 years. If 75% of the 10,251 memberships reinvested the trust will be renewed and the remaining membership residuals will be paid in full. If not... the resort will be sold and all members will get approximately 45% of their residual rights in cash if the assessed value is accurate.

IF the trust is renewed for 30 years....

* based on owner feedback, the $20 million renovation to the property proposed in September 2005 will be reduced to an $8 million infrastructure upgrade. Members do not want major upgrades to the villas. Also, the resort will not be closed for 6 months for a further savings of $2.4 million.

* current VCI members who choose to renew will have first right of refusal for their current unit/interval and may be asked to make this decision as soon as April 30, 2006.

* current VCI members may also choose to purchase different units and intervals, and may also choose to purchase additional intervals. (How to do this fairly is being worked out now.) Members who want to change their unit and interval may be asked to make this commitment as soon as June 30, 2006, to lock in the 50% discount.

* all renewals and new purchases by VCI members would have any residual rights applied at 100% cash value and also a 50% discount on the list price of the unit. In my case this means I can renew my week 11 unit at VCI for 30 years for less than $2,000 after the discount and residual rights credit.

* members at other Royal Resorts are NOT eligible for the 50% discount.

* at the time of purchase/renewal the unit can be retitled. After that units may not be retitled until 2009 except in the case of death of an owner.

* VCI would remain a Royal Resort (probably with the same name, a suggestion by an owner at the meeting to change the name to The Royal Cancun was NOT popular). Maintenance fees would rise 3-10% due to new ammenities like heated pools.

It was acknowledged that the April 30 and June 30, 2006, deadlines may not be realistic and are subject to change.

*All VCI owners should watch the mail for a postcard with information for registering for updates on the trust online or by phone.* We were told that the mailing had probably gone out after we arrived in Cancun and some cards may need to be sent again because of an error by the mailing house.

This is a brief summary of the meeting from my handwritten notes, there was an extended discussion with the members present after the presentation. I do not speak for the Royal Resorts but I would be happy to try to elaborate or answer any questions if I can.

-G


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## Lenora (Mar 26, 2006)

How did you come to the conclusion that it would only cost you 2000.00 to renew your contract? Did they give you a price that your unit would sell for? $2000.00 for another 30 years is a great deal.


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## geoffb (Mar 26, 2006)

Yes, we were given a document with the set market price of our unit/interval and the value of the residual. The balance after the 50% discount and subtracting the residual was under $2,000.

So, if for example you had a unit valued at $25,000 and an $9,000 residual the math would be:

$25,000 x 50% = $12,500 discounted price
$12,500 - $9,000 = $3,500 reinvestment cost

I forgot to mention... they would take reinvestment payment in 12 monthly payments, interest free.

-G


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## Kola (Mar 26, 2006)

Thanks for a very useful summary. 
You said: "If 75% of the 10,251 memberships reinvested the trust will be renewed and the remaining membership residuals will be paid in full. If not... the resort will be sold and all members will get approximately 45% of their residual rights in cash if the assessed value is accurate."
Assuming that 75% of members will reinvest, do you know when and under what terms the remaining 25% of units would be offered to new applicants ?

Kola


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## geoffb (Mar 26, 2006)

I really have no idea when... probably not until after the original trust expires June 30, 2007. Between now and then they have a very complicated puzzle to put together as people choose to keep their original units, upgrade, etc.

We were told the new trust would be the same style as the Royal Sands, every membership would have an equal share rather than a residual with a dollar value.


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## JEFF H (Mar 27, 2006)

The 50% off list starting price is making this more attractive for members than the original plan floated.
This will be a really good deal for thoes that have units with high residual values.


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## Ellis2ca (Mar 27, 2006)

*Sensational !  An offer I cannot refuse...*



			
				geoffb said:
			
		

> Yes, we were given a document with the set market price of our unit/interval and the value of the residual. The balance after the 50% discount and subtracting the residual was under $2,000.
> 
> So, if for example you had a unit valued at $25,000 and an $9,000 residual the math would be:
> 
> ...



Sensational!  That's a GREAT offer and much better than I, or I think anybody else, expected.  It is better than what I outlined many years ago, or than what I had been saying we would get.  I had expected I would get my residual back, or I might pay an amount about the same as my residual.  If it is about the same as Geoff's example, I will only pay less than 15% of the market value to extend for 30 years... or I will get my full residual back in cash when the week is sold to somebody else.  That's a bargain... AND IT'S  GOOD FOR OUR INTEREST because it raises the value of our week, which means the rents should go up also.

In essence, we get a 50% discount on a revalued property (which increases our net worth, too) or our full residual back, and if we renew we get heated swimming pools and a property with a higher value property that we can sell at a profit, (after they are all sold) or rent... and I won't miss my weeks in 2007, they will just go on the same.

I accept, and I hope more than 75% of us will accept... but what is the mechanism for those who want their residuals back?  I have three weeks... (51 C and 52 C with $14,000 and $14,500 residuals, which I bought in 1977 for $4950, for both weeks; and 52 B which I bought 2  years ago for $6,000 with $6000 residual, because I was so sure it would be like winning the lottery again...)   For example, I could renew two of them and ask to receive the residual on one of them, and I could end up with 2 weeks and money in my pocket... But it's a good investment for me to renew all three of them... they are very easy to rent, and they pay for themselves very easily.

GREAT!  I am VERY HAPPY with what you wrote, and with the plan.  I am in Can Cun, at the Royal Mayan this week (A 702), and I will be sure to attend the meeting.  If anybody has questions to ask, ask them while I am here, I will try to get the answers.  I have a few myself, so I will clear them up while I am here.

I will bet that most of us will see this as an offer we cannot refuse, and the 75% will be reached without a problem.  Actually, I know there is no problem even if 100% of us want our residual value back... they could sell it to 10,000 new members in a few years, without any problem.  This is a great offer.  

What did you decide to do, Geoff?

I think that is very fair, to also put it up for sale on the market and see what is the real value.

Thank you, Geoff, this was very good news... and a great report.  - Ellis

P.S.   I don't like "The Royal Cancun" but I would like "The Royal Vacation Club International"... so people realize it is a Royal Resort... "The Royal V.C.I."  I will suggest they survey the members to see if we want the name changed.


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## nana7 (Mar 27, 2006)

I would like to know how to find out what our units are worth?  Week 7 and 8 beach front C villas.   So far I was not able to find this out!  I was told they would mail the values to everyone.  But have not recieved anything.   Any one know?????


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## geoffb (Mar 27, 2006)

Ellis2ca said:
			
		

> what is the mechanism for those who want their residuals back?  I have three weeks... (51 C and 52 C with $14,000 and $14,500 residuals, which I bought in 1977 for $4950, for both weeks; and 52 B which I bought 2  years ago for $6,000 with $6000 residual, because I was so sure it would be like winning the lottery again...)   For example, I could renew two of them and ask to receive the residual on one of them, and I could end up with 2 weeks and money in my pocket... But it's a good investment for me to renew all three of them...



You should inquire about this while you are in Cancun... if all of those units are under one membership number I do not know if you can make a partial reinvestment or if it is all-or-nothing. We sold all but one of our units a long time ago so I have a very simple scenario of one unit and one interval now.



			
				Ellis2ca said:
			
		

> I am in Can Cun, at the Royal Mayan this week (A 702), and I will be sure to attend the meeting.



Ask your rep. about the meeting to confirm the time and location on Tuesday. They should be able to get you financial documents for all your units by the end of the week also.

I look forward to your observations about the meeting.



			
				Ellis2ca said:
			
		

> What did you decide to do, Geoff?



We originally indicated in September that we would not reinvest but this proposal has made us reconsider. I'll never get a chance at a March week at a Royal Resort for such a low price again.

I would also like to see the word Royal in the resort name. VCI can be the forgotten Royal Resort at times.

-G


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## geoffb (Mar 27, 2006)

nana7 said:
			
		

> I would like to know how to find out what our units are worth?  Week 7 and 8 beach front C villas.   So far I was not able to find this out!  I was told they would mail the values to everyone.  But have not recieved anything.   Any one know?????



Best advice I can give you is to watch the mail for the postcard we were told about and use the 800 number on the card to inquire.


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## Ellis2ca (Mar 29, 2006)

*More Update on VCI*



			
				Kola said:
			
		

> Assuming that 75% of members will reinvest, do you know when and under what terms the remaining 25% of units would be offered to new applicants ?
> Kola


 
We are being asked to tell them as soon as possible if we WANT to renew or if we DON'T want to renew... This is to the advantage of the people who DO NOT want to renew, as well as those who DO want to renew because YOU WANT this plan to go forward so that you get 100% of your residual, and not about 50%...  So... The people who DO want to renew should advise them as soon as possible, and starting on May 1 we can request to make changes, for example a different week, or the same week but a different location, etc.    We can also buy more weeks, WITH A 50% discount.   Also... anybody with a week at V.C.I. who has a week but does NOT have residual value can ALSO buy a week with 50% discount from List Price.   So... the answer to your question is that starting May 1 you can buy or exchange or shift into the weeks or Villas that those who do not want to renew are giving up.   Initially there are about 500 weeks that do not have residual values, so these are all in the pool for us to shift or exchange to.



			
				nana7 said:
			
		

> I would like to know how to find out what our units are worth?  Week 7 and 8 beach front C villas.   So far I was not able to find this out!  I was told they would mail the values to everyone.  But have not recieved anything.   Any one know?????



Nana, roughly, figure about or less than $2000 per week if you have "high" residual value, or figure about $4000 per week if you have a "low" residual value.  If you will tell me what is your residual value, and Villa and Week no. I can try to get you exact figures, or it will soon be mailed to you.

I think the power point presentation is up or will soon be up at 

http://www.royalresorts.com/vci​


			
				geoffb said:
			
		

> We originally indicated in September that we would not reinvest but this proposal has made us reconsider. I'll never get a chance at a March week at a Royal Resort for such a low price again.
> -G



Given that we have residuals, and that we will continue to have even more residuals with this plan, this is an extremely good offer... it is less expensive to buy now than it cost you or me to buy 30 years, in 1977, and the value of our property is being revalued, ie, our net worth is going up.  

For example, one of my weeks is going up from a residual value of $14,000 to a list price of about $30,000, which will cost me let's say $2000 to extend.

After two years, I can ask them to sell it for me... for which they charge 25%... so if I extend now for about $2000, after July 2009 I could list it for sale for $30,000, they charge me $7500, and I still receive $22,500 net... up from $14,000 to $22,500.   

Or it rents like a property that costs $30,000 per week, which means it will rent for much more than it does now.

It is an offer I cannot refuse.

We are also going to be able to change the names of the titles, so we can add or remove our new or old wives, or children, etc. at no extra cost.

Each of us will have 1/10251 of the resort when (and if) it is sold in 2037.   The developers are giving us the entire resort from now on, that is, they will not be half owners as they have been until now.

We will not be able to change titles or to sell our timeshare through them, for two years... until after July, 2009



			
				geoffb said:
			
		

> if all of those units are under one membership number I do not know if you can make a partial reinvestment or if it is all-or-nothing.
> -G



If you own multiple units, then you can decide on each one.  But if you own two weeks that have not been split up, then you have to decide for both of them, so you extend both, or you ask for your residuals for both.

We were told that until now, about 70% of the members surveyed at V.C.I. have indicated that they will extend, so my guess (I am never mistaken about the Royals) is that the plan is going to fly for certain.  I mentioned to Richard Sutton that I don't see why they are saying that 75% minimum has to accept to extend, because if they open the offer of 50% discount to members of all the other Royals there is no doubt in my mind that it will be 100% sold in a flash... he agreed with me that he thinks that it is an offer too good to refuse, and yet some people have indicated that they want their full residuals... so he wants everybody who wants full residuals to get their full residuals.      

Talk about perfection... 30 years running the perfect timeshare, and at the end of 30 years he still wants everybody to be happy.  Now it is going to be my turn to rub it in about "NUMEROS MAGICOS" etc.


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## geoffb (Mar 29, 2006)

Ellis2ca said:
			
		

> Initially there are about 500 weeks that do not have residual values, so these are all in the pool for us to shift or exchange to.



Those owners all have the right to reinvest also assuming they don't mind paying a higher price since they have no residual rights credit.


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## nana7 (Mar 29, 2006)

How will members wanting different weeks/units be handled?   I mean if you want to change your week to another villa or week....who gets first chance at it?  Example:  we own 2 weeks but in different villas...could we trade for the same weeks but into the same villa (so we don't have to move)?   Who gets it?


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## geoffb (Mar 29, 2006)

At the meeting I attended they said they were working on a fair process for owners to select new units/intervals. I don't know what they will come up with but I got the sense that it would not be first come, first served.


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## Ellis2ca (Mar 29, 2006)

*Who gets first chance at it?*



			
				nana7 said:
			
		

> How will members wanting different weeks/units be handled?   I mean if you want to change your week to another villa or week....who gets first chance at it?  Example:  we own 2 weeks but in different villas...could we trade for the same weeks but into the same villa (so we don't have to move)?   Who gets it?



Whoever owns it now gets first option on it, of course.  For you to be able to get it, it has to be available.  

If you decide to continue and start making payments by May 1, 2006, then starting on May 1, you can start to exchange with what there is "on the table".   Of course everybody has first choice on their own week.   If 100% of us want to extend our membership, then there can be no possibility to change, except for the 500 Villa-weeks that don't have any residual value and which are "on the table." (I suppose the persons who have a week with no residual value can also reserve them, before May 1.)  

I think it would be useful if we start to list what we have that we offer for trade, and what we look to trade for.  I think TUG already has such a service in the free classified ads "Direct Exchange"... if not, maybe it can be created before May 1st.  (It would be great for TUG to offer this service to everybody, because people who are not subscribed might get to know TUG and decide to subscribe.)  

To get the ball rolling, I just placed an ad for each one of my three weeks into the "DIRECT EXCHANGE" ads, listing what I have, and what I am looking for... It would be better if the form could be slightly modified and called "VCI SWAP DATABASE".

On May 1st, the exchanging begins.  All the weeks have a list price, and 50% discount, and you can apply your full residual values against them, however you wish... but do not downgrade, that is don't change a $10,000 residual In March for  a week in October, minus 50% and ask for money back.  (but you could ask for your full residual, and buy the week in October for $8000... but that would be AFTER those who have extended have decided they don't want it.)  

(All List prices are going UP, so if you extend your membership, you will owe a little on your own week.)  But you can change two weeks for three weeks, use up your residuals, and pay a difference.  And if you have TWO or three residuals, you can use one up, and ask for return of residual value for the other one, or two, etc.

It is on a first come, first serve, basis.  That is, if you extend on May 1, and I don't decide whether I am going to extend until May 15, well that is a bit too late for me if I would have wanted a week that you also wanted and you already reserved.  THE FASTEST WAY TO DO THIS IS THROUGH THE INTERNET, at http://www.royalresorts.com/vci   It will be like a shopping cart: you have what you have, you pick what you want and put it into you basket, then you pay for it, either with cash or you deposit your villa/weeks and pay for it with 100% residuals.   

This is why it is very important that you should decide before May 1, whether you stay or go... and if you decide you go, it is also important that you should decide by May 1, because it makes it more possible for everybody to be satisfied, and for you to get 100% of your residuals.  

If you start paying, it still is not certain that the plan moves forward.   If the plan does NOT move forward, they will return your money PLUS INTEREST before June 30, 2007.

But this simply is not going to happen... erase it from your mind... there is no way that the plan is not going to go forward, in my opinion.  I predict that more than 90% will choose to extend.  The Power Point presentation says that the AVERAGE cost to extend will be $3500.  That is much less than we paid when we bought, and I think everybody will see this is a great deal for us. 

You can see the same and entire Power Point Presentation that is being presented at the V.C.I. meeting at: 

http://www.royalresorts.com/vci​
You need a VCI personal id number, and a pin number to get inside, and once you are in they first ask you to verify your name and address and e-mail and phone numbers... you can get the personal id number and pin number over the telephone by calling 1-800-791-4409 if you don't already have it, where you can also update your contact information.  

I am anxious to start to study a list of what is available, and what it will cost to exchange... this WILL BE available, but it isn't, yet.

- Ellis


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## geoffb (Mar 30, 2006)

Ellis what is your source of information that says trading will take this form and begin on May 1st? Only a week ago I was told by Roger Sherman that they had made no decisions about how they would handle the process for people who want to change unit/interval.


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## Ellis2ca (Mar 30, 2006)

*My source of information...*



			
				geoffb said:
			
		

> Ellis what is your source of information that says trading will take this form and begin on May 1st? Only a week ago I was told by Roger Sherman that they had made no decisions about how they would handle the process for people who want to change unit/interval.



My source of information is Roger Sherman and Richard Sutton, at the meeting at V.C.I. on Tuesday... and they mentioned that this is new, so you are right, they didn't mention it at the meeting that you went to, but they did mention it at the meeting that I went to.  

And... I quote from slide #33 of the Power Point presentation, which you can see at

http://www.royalresorts.com/vci​
F.A.Q.: "By when must I decide to renew my membership?"

We will start receiving payments from those VCI members who have accepted first right of refusal for their existing Villas/Intervals on May 1st, 2006.

Members who have then chosen to renew will then have immediate access to the inventory of units available for switches or additional purchases.

First right of refusal on your existing Villas/Intervals is expected to continue until mid-August 2006.


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## geoffb (Mar 30, 2006)

Thanks for clarifying that, we got our PIN number today so I'll go through the online version of the presentation to look for other changes.


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## Carolyn (Apr 22, 2006)

Any other updates on this?    Anxiously awaiting......

Carolyn


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## Ellis2ca (Apr 23, 2006)

*May 1st, postponed to May 15...*



			
				Carolyn said:
			
		

> Any other updates on this?    Anxiously awaiting......
> 
> Carolyn



According to slide #33 of the V.C.I. presentation which can be viewed on the internet (if you are a VCI owner) at 

http://www.royalresorts.com/vci 

I note that the date when we will have access to the inventory for switches has been changed from May 1 to May 15. Slide #33 now reads as follows:

"By when must I decide to extend my Membership?"

"We will start receiving payments from those VCI members who have accepted first right of refusal for their existing Villas/Intervals on May 15th, 2006.  (was: May 1st, 2006)

Members who have chosen to renew will then have immediate access to the inventory of units available for switches or additional purchases. 

First right of refusal on your existing Villas/Intervals is expected to continue until the end of August, 2006. (was: mid August) "


I called ISCO and they told me not to worry, I will get first right of refusal to renew my three weeks, even if I signed a non-binding statement saying that I would only renew two, and not three, weeks when I was at a meeting at VCI in Can Cun a few weeks ago...  

I wanted to start paying, and he said they are not accepting money yet, but they are getting ready to do that, and I will be notified through the e-mail address that I have registered with them, and probably also by slow mail.   

I think they will start to accept payments on May 15, and not before.

- Ellis


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## KarenLK (Apr 23, 2006)

Wow, Ellis, that screws things up for me. I leave for Europe on May 14 for nearly 4 weeks, and won't have my normal internet access. 
it was great to meet you for breakfast at the Sands. it is nice to put a face to conversations!


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## Ellis2ca (Apr 23, 2006)

KarenLK said:
			
		

> Wow, Ellis, that screws things up for me. I leave for Europe on May 14 for nearly 4 weeks, and won't have my normal internet access.
> 
> It was great to meet you for breakfast at the Sands. It is nice to put a face to conversations!



Hello Karen... I am sure you can get onto the internet in Europe at any "Internet Cafe" and you won't have any problem to renew at all.  You have first right of refusal, so no problem with that... but if you want to switch or upgrade your Villa, it is best if you do it as soon as possible.  

I went to Europe for three weeks in 2004, and it was "business as usual" for most of my customers, and even for my forum... they had no idea I was in Europe.   I was even in Canary Islands, which I thought might not have coverage, but I even could receive phone calls there from anywhere in the world... I was discussing growth hormone and answering questions and fixing complaints, and nobody knew I was so far away unless I told them... I couldn't believe it myself, but it's true...  so I am sure you will not have any problem renewing, if that's what you want to do.  

So... I assume you intend to renew, is that right?  

It would be interesting if we can do an informal TUG survey to see what percentage of the people who answer intend to renew, and how much residual value, to see if it is over or under 75% ... or over 90% as I predicted it will be.  Is there any way to do a survey on the TUG BBS? 

For the record: I am going to renew three out of three weeks, for a total of 100% of my residual values, which is about $34,300 residual values.  I would like to upgrade my B Villa, which I bought in 2004, to a C Villa if possible... I'll find out if I can on May 15, and if not, I will live with a B Villa without any problem.

It was very nice to meet you, too, and I hope I'll see you and others on future trips to the Royal Resorts.  - Ellis


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## Carolyn (Apr 23, 2006)

I am an owner but when I got my postcard there wasn't a pin # so I called the number I was suppose to (ISCO?) and they took my e-mail address and saif they would e-mail me any new info...haven't heard a word.  What should I do?

Carolyn


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## Ellis2ca (Apr 23, 2006)

Carolyn said:
			
		

> I am an owner but when I got my postcard there wasn't a pin # so I called the number I was suppose to (ISCO?) and they took my e-mail address and saif they would e-mail me any new info...haven't heard a word.  What should I do?
> 
> Carolyn



I got this from http://www.royalresorts.com/vci

"It has been brought to our attention that due to an error in the printing process, some of the postcards were printed without the Personal ID. If you do not see a six-digit number above your name on the mailing address as shown in the example below (picture of postcard address, first line is ID) please call (800) 791-4409 and one of our member service representatives will assist you. We apologize for any inconvenience this may cause."

Call them again and insist on getting an ID and pin number.   You can call them to 1-800-791-4409 from the U.S. or Canada, or 01-800-712-0544 in Mexico.


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## KarenLK (Apr 23, 2006)

Hi, Ellis, Yes I will renew. What I am not certain of is if I will renew both weeks. I have a 13 C unit and a 14 B unit. I may keep the C unit, apply the residuals from both to pay for that unit (though I may be out 1,000 dollars that way, and then plan to exchange in via II for the week before or after 13. I was hoping to find 2 consecutive weeks in the same unit. If that happens, anything goes!!


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## Ellis2ca (Apr 24, 2006)

KarenLK said:
			
		

> Hi, Ellis, Yes I will renew. What I am not certain of is if I will renew both weeks. I have a 13 C unit and a 14 B unit. I may keep the C unit, apply the residuals from both to pay for that unit (though I may be out 1,000 dollars that way, and then plan to exchange in via II for the week before or after 13. I was hoping to find 2 consecutive weeks in the same unit. If that happens, anything goes!!



Hello Karen... Could you give us the details of your two weeks?  What is the residual value of each, and how much do you have to pay to renew each week?  This will also help others to understand how we are being treated at V.C.I. now, so they will understand how they will be treated when it is their turn to decide, someday.

"A grosso modo" I do not think that what you intend to do, as you described it, is to your advantage.  If week 13 and 14 have MORE residual value than you need to renew only week 13, then you should PAY for week 13 with residual and cash, and ask for the return of your residual value for week 14.  That will put money in your pocket, although in the meantime you will be paying for week 13, and waiting to receive residuals for week 14.  

Or find two weeks in the same unit, as you said you would like to do, but either use up all your residuals or ask for them to be paid back to you.  But according to the rules of the game as I understand them, you can't ask for "change"...  

But maybe you could pool your residuals with mine and I would use your residuals and I would pay you the change...  but I'm not sure if that can be done... and all my reinvestment is about $9400 for my three weeks... so this won't work if your residuals for week 14 are greater than $9400.

How happy and comfortable are you with your B Villa, as compared to your C Villa?  (B Villa is 2 bedrooms and 1 bath on one floor about 1000 square feet, C Villa is a duplex with two bedrooms on two floors with about 1400 square feet.)   

I find that I am quite happy with my B Villa, because FUNCTIONALLY it is practically the same as a C Villa (most of the extra 400 square feet is wasted space for the stairs going UP and DOWN, plus a second bathroom...)  but a C Villa RENTS out to a third party more easily, and I like to rent out and travel with the money.  I have a nice ocean view from my C Villa and a nice lagoon view from my B Villa.  And I mean it, both views are very nice... either one of them is much nicer than the view of buildings that I have from my apartment in Mexico City.

I THINK you will be able to find two weeks together in the same Villa because Vacation Clubs was originally sold in two week intervals, so MANY members own two consecutive weeks.  So I think you have a good chance to find two weeks together... 

But you should do your exchanging early in the morning on May 15, because it is first come, first served.  If you are flying and you want me to help you with this, I will be glad to help you.   Give me precise instructions of what you want, and I will be glad to try to get it for you (if you won't be able to get on the internet early on May 15.)    London is 5 hours ahead of New York, and Paris is 6 hours ahead of New York, so that helps.

Let me know if I can help you.  - Ellis


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## geoffb (Apr 24, 2006)

I exchanged email with Roger Sherman at Royal Resorts today and he sent me the following information:



> We have made some revisions to the original timeline for the VCI Trust termination proposal in order to make sure that we can provide the most up-to-date and accurate information to all our valued Members.
> 
> Based on the proposal being made to current VCI Members and which is available for Members to view in its entirety on-line at http://www.royalresorts.com/vci/
> 
> ...


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## KarenLK (Apr 24, 2006)

Thanks for the update. I really think that the June 1 date may be too soon, as it seems there must be many members still in the dark. The sign is quite prominent as you enter VCI, but many members did not even notice it!!


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## geoffb (Apr 25, 2006)

Well if they do get a mailing out to all members in the next week or so that should get the ball rolling hopefully. Obviously having the right of first refusal extend to August 31st is critical since it will take time to get everyone to respond.


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## Carolyn (Apr 25, 2006)

Just spoke with ISCO at 1-800-791-4409 as I didn't know the value of my unit since it was a resale.  I do have the Residual figure.  I was told they will be sending a mass mailing to all the members around May 10th that has everyone's individual figures and what it will cost to buy back your unit with the discounts.  I will anxiously wait.

Carolyn


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## chicagobob (Oct 14, 2006)

geoffb said:
			
		

> I exchanged email with Roger Sherman at Royal Resorts today and he sent me the following information:


Hi. I am new to the forum and NOT a member of VCI.  However, my family has been vacationing at VCI since 1984 and we love the place.  So, I am VERY interested in purchasing a 1 or 2 week time share in August.  Could you tell me what the current status of the resale of the trust is?  Is there any hope for an 'outsider' to purchase a time share?  Is there any URL that I should to to in order to obtain current information?  Sorry for all the questions... thanks for your time and help,
Bob


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## tonyg (Oct 14, 2006)

Bob, try: www.royalresorts.com
for official information
The Royals do have a resales department.


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## chicagobob (Oct 15, 2006)

*Thanks*



			
				tonyg said:
			
		

> Bob, try: www.royalresorts.com
> for official information
> The Royals do have a resales department.


Thanks tonyg---
However, the 'VCI information' option requires a login as a member.


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## geoffb (Oct 15, 2006)

The current status is apparently still undecided. Earlier this month VCI members got an email that said the first right of refusal deadline for current members has been extended "for a limited time." First Right of Refusal was originally set to end on August 31, 2006.

Once first right of refusal expires all unreserved units should be made available for sale to any VCI member for a period of time. After that any unreserved units would be offered to members at other Royal Resorts. But the dates for those offers are not known now.

My understanding of the plan is that no sales would be offered to non-members until and unless the trust is renewed. Since the trust would be renewed with only 75% of the membership reinvesting their residual rights there would certainly be some amount of inventory available for sale.


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## chicagobob (Oct 15, 2006)

Thanks geoffb.  I guess I'll just have to wait (a long time?).
Bob


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## geoffb (Oct 15, 2006)

Not sure how long. But the current trust expires in mid-2007 so there will have to be some sort of announcement in the first half of the year.


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## KarenLK (Oct 16, 2006)

I had traded weeks and a while ago tried to log on to see what had happened with the weeks I had given up. One looked like it hadn't been "scooped" up. The last 10 or so times I have tried to log on I get a logon error and I know I have the correct IDs, so I don't know what has happened with the website.


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## njsueb (Oct 26, 2006)

*50% of owners have not re-bought*

I called VCI last week and they indicated that they still are not at the 75%-80% mark.  If owners are interested they need to contact royal resorts right away.  They are encouraging owners to tell their friends about the resort and the fact that if their friends buy under their name they'll receive the 50% off the price.  Otherwise, other Royal members will be allowed to purchase at the full sale price (not at 50% off).
It's a great deal, we've thought of buying under a friends name but already owning 4 weeks (3 in Cancun, 1 in Curacao), we think enough is enough...........but still a tough deal to walk away from.

I hope for all you owners that you make the 75% and have another 30 great years at VCI.


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## KarenLK (Nov 9, 2006)

*It's a deal*

It was posted on another thread as well, but I got the official postcard, and the e-mail indicating that the Board of Directors met and agreed to continue for 30 more years.


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## Jim in Cancun (Nov 10, 2006)

I have 2 weeks and chose to take the residual money of $9,100 for both. They will be giving me the money in 5 payments by check as follows:

August 2007: $1,820
Feb: 2008: $1,820
Aug: 2008: $1,820
Feb 2009: $1,820
Aug 2009: $1,820

Interesting.


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## tonyg (Nov 10, 2006)

Perhaps the delayed and partial payments are more in line with expected cash inflows. It would be a liittle tough to just pay out $ 30 million (rough estimate) in residuals before sales of those units were possible, particularly with ongoing construction outflows to the south..


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## nana7 (Nov 10, 2006)

Jim,  How do you know when and how the payments will be given back?   We have not recieved one word about payments.  Interesting that you found out so soon.


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## JEFF H (Nov 11, 2006)

tonyg said:
			
		

> Perhaps the delayed and partial payments are more in line with expected cash inflows. It would be a liittle tough to just pay out $ 30 million (rough estimate) in residuals before sales of those units were possible, particularly with ongoing construction outflows to the south..




I agree it would be pretty hard to pay out full residuals to the owners befor the units were resold.
This seems like a good compramise plan to get the residual payments flowing right away to all owners who choose to opt out.
under The original proposal they floated owners would not have received residual payment untill the specific interval was resold.
Owners were also responsible for yearly maintenance fee payments and would retain week usage untill the interval actually sold.

Under this new residual payout plan I would assume owners who opt out are also now excused from making maintence payments and lose the usage rights untill the unit is sold.


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## JEFF H (Nov 11, 2006)

double post deleted


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## Jim in Cancun (Nov 11, 2006)

When asking about the payment of residuals my secretary was told that I would personally "...need to contact the Club International Desk at 1-800-791-4408 to give his final decision." When I called they asked for my pin number or something and then I gave them my contract numbers and they said they were aware that I wanted my residual money and they gave me that schedule of payment.


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## chicagobob (Dec 5, 2006)

*current status for an 'outsider'*

Could anyone help me with the current information on purchasing a time share for an 'outsider', ie... someone who is NOT curently associated with the time-share system at Club International.  My family really wants to become a member and purchase a two-week time slot.  Will the BOD open up the available units for 'public' comsumption?
Thanks for your time and help,
Bob


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## tonyg (Dec 5, 2006)

My guess would be as soon as the extension is rejected by the current owner, but since the membership contractually ends on June 28,2007, they may not be offering them for sale until then. Best bet would be to call ISCO at 1-800-930-5050 and inquire, perhaps asking for whatever weeks you are interested in. If you go that route, let us know the results.


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## KarenLK (Dec 5, 2006)

I am not sure about this, but I thought that once the "open season" for VCI members ended, it was going to open to other Royal members. I don't know how long that period would last.


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## JEFF H (Dec 6, 2006)

chicagobob said:
			
		

> Could anyone help me with the current information on purchasing a time share for an 'outsider', ie... someone who is NOT curently associated with the time-share system at Club International.  My family really wants to become a member and purchase a two-week time slot.  Will the BOD open up the available units for 'public' comsumption?
> Thanks for your time and help,
> Bob



If you do call ISCO ask about resale units available at the other royals as well. You can also look for Royal resales online.
My understanding members will no longer share in the resturant and store profits that have help reduce maintenance fee costs.
Maintenance fees are expected to rise and come into line with fees being paid at the other Royals.
For me VCI  has too many drawbacks compared to the other royals.
Some however really love VCI for what it is and If its what you really want
you should have no problem getting units next year.


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## Ellis2ca (Dec 24, 2006)

*Update on V.C.I. trust... prices UP 40%*

I have been out of touch for a while... I didn't know that V.C.I. has officially announced that it extends the resort for another 30 years, until I called on Friday to confirm if my week 52 was rented through the Club... (it was rented...)

So... now I come to TUG to see what's going on, and I find that there have been some big changes already... I logged on to www.royalresorts.com/vci
and I did a search for ALL available Villas... and... the inventory available is 6733 VILLA-weeks!!!  Wow!  that is 65% of a total of 10,251 Villa-weeks.  

However... they confirmed and you have confirmed too that it is being extended for 30 years... that means that 65% of the membership decided to ask for their money back!!!  

Well... too bad for you, those who did not renew... Prices, I see, have jumped up 40% from what we were being offered a few months ago...  So that means I now have a net worth about $15,000 more... That is, they have ended the 50% discounts, and now are offering us 30% discount... so my property is now worth 40% more ((70-50)/50)... The instant somebody buys at 30% discount, everything is worth the new prices.   They are going to sell out, with 30% discount, or less discount.

I suppose, by the discussion I am reading on TUG bulletin boards, that sales have still not opened up to the rest of Royal Resort members, but I suppose January 1 is as good a day as any to open them up... So maybe this is just a transition screen that I am seeing... 

Maybe you thought it was a fake, that the 50% was not a real discount.  Well... now you know, it is a real discount... unless you think the 30% is not a real discount either... well... just you watch how long it takes for them to sell out V.C.I.

Jim, I hope now you believe in the Royal "numeros magicos..." magic numbers.

Ellis


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## chicagobob (May 29, 2007)

*General sales??*

Well, it's almost JUNE.  I am still ready to purchase a time share at Club International.  Does anyone have any current information on VCI opening up some general public sales?
Thanks,
Bob


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## geoffb (May 29, 2007)

I am not sure about public sales. Other Royals Members got an offer in the mail about 3-4 weeks ago offering them discounted prices for a limited time.

I can only assume that the intent is to eventually offer the remaining inventory for general sale after that but I don't know when that would begin... it probably depends on the response they are getting from other owners.


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## leonmwilson (Aug 18, 2007)

*No money for old members Vacation Club International*

This is what I received from Gene Magilocco.

The trust expired for VCI after interval 26/2007.  The new resort CIC (Club International) opened for new memberships interval 27/2007, a decision was made not to sell the resort but rather keep it open for new memberships.

I thought that the owners were to split the money between to current owners and the old Air Force Colonel's that started ISCO.

I have not received any new information from ISCO, since they tried to sell me a new memberships to VCI for $12000.

Leon


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## leonmwilson (Aug 20, 2007)

*From Gene Magliocco on residual rights*

Mr. Wilson, 

By the tone of your e-mail, I believe there is some confusion.  You asked about the sale of VCI which an explanation was given.  Now you are mentioning assets.  All members had the option to either cash out their residual rights (if applicable) and receive 5 checks at 20% of the value over the next two years (Aug 2007, Feb 2008,  Aug 2008. Feb 2009. Aug 2009) or apply their residual rights (100%) towards the purchase of unit(s) for the next 30 years.

Per the resort’s financial records, your membership (# 24023) for villa B923 / interval 47  had $ 0.00 residual rights.   A dated letter of March 09, 2007 (attached) was mailed informing you of this and was mailed to:


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## KarenLK (Aug 20, 2007)

A small percentage of VCI owners did not have residual rights and therefore were not entitled to a share of the pie. You were probably one of those few without residuals. Those were members who bought when the resort did not have residuals; when they changed that, previous owners were offered the opportunity to buy in or not. Or if you bought resale from someone who did not have residuals, the same was true. If your contract states that you HAVE residuals then you need to  follow up. Otherwise, you are in fact entitled to what you got --.00.


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## leonmwilson (Aug 23, 2007)

*Residual Right at VCI in Cancun*

Karen

Your are Right, I have no Residual Rights.

My reply.

So this is what you are telling me that when my father bought this unit in 1992; it has no residual Rights. 

Member: LEWIS R WILSON JR
                 & MADELINE M WRIGHT

Villa  B923
Membership Investment (U.S . Dollars)          $3500.00
Residual Rights Value    (U.S. Dollars)                  $0.00

So this unit sold in 1992 has no residual right. I just wish my father was alive to tell me what the salesman (Lester) told him. He always told me that the sale of VCI was the split between the old Air Force Colonels  and the owners. I also believed that my father knew the gentlemen; after all  he has been going to Cancun since 1968.

Just wish someone would have explained this to me in 2000 after my father died;  I would have given this unit back to ISCO.

Gene I do want to thank you for the information.

Leon


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