# Bluebeards?



## Steel5Rings (Oct 11, 2007)

Why am I seeing all these Bluebeards Castle resales for cheap cheap!!!

Are there serious problems here?


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## JoeMid (Oct 11, 2007)

Steel5Rings said:


> Why am I seeing all these Bluebeards Castle resales for cheap cheap!!!  Are there serious problems here?


There's a myriad of problems, including high maintenance fees and all sorts of problems/lawsuits between HOAs and management companies.  There are several or more HOAs in different phases of the resort.  I've also heard that on transfer the local government is charging transfer taxes based on the original purchase price!  I'd stay far away from there unless you know what you're doing.  Where's John?


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## johnmfaeth (Oct 11, 2007)

The Castle has many loyal owners and what some consider a good location between the shopping at the main cruise ship docks and downtown Charlotte Amalie. Also a great restaurant.

Here are the problems as I see them (not in order):

1) High delinquency rate and high MFs
2) 3 miles to the nearest beach
3) Ongoing litigation with Wyndham subsidiary (Equivest St. Thomas) which declared bankrupcy in July and will further delay any outcome by years.
4) Ongoing maintenance issues


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## GrayFal (Oct 11, 2007)

Steel5Rings said:


> Why am I seeing all these Bluebeards Castle resales for cheap cheap!!!


Not to be confused with Bluebeard's BeachClub - which is directly on a BEAUTIFUL beach.....


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## Tia (Oct 14, 2007)

We own at both Bluebeards and love both. 

It is true there are many loyal ts Owners of the Castle who are
are continuing a struggle with the current developer Wydham/FF/Equivest over $$ past and ongoing. (same developer of the Beach Club.)


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## JoeMid (Oct 14, 2007)

What's the latest on Beach Club expansion, I heard it's supposed to more than double in size?


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## JoeMid (Oct 14, 2007)

JoeMid said:


> I've also heard that on transfer the local government is charging transfer taxes based on the original purchase price! Is this true?


Where's John?


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## johnmfaeth (Oct 14, 2007)

While TIA is correct that Equivest/FF was the developer of the Castle, it's role has been reduced the last few years.

SPM resorts now manages 3 of 4 HOA sections of the resort and has taken over maintenance of the common grounds. Wyndham manages the units of one HOA where they still own a number. One unsettled issue is how much the HOA's and SPM will have to pay in rent for the common areas owned by Equivest.

The lawsuit over what has been reported as widespread financial abuse by the former Equivest prior to it's aquisition by Fairfield continues and will be delayed now for additional years as Equivest St. Thomas has declared bankrupcy as it cannot pay tens of millions owed to it's major creditor, guess who, Wyndham/Fairfield which owns it fully !!!

I checked 2 weeks after the bankrupcy was filled in the regional Federal Court and 59 motions had already been filed, many of which were each HOA and Equivest trying to get the other's lawyers removed for conflicts, etc. It is a royal mess which is being hard fought all around. Don't expect any outcome anytime soon.

The BBC and Elysian are at peace with Wyndham/Fairfield and luckily never suffered as the Castle seemingly did, under Equivest. One of the allegations is that Castle money was used to improve these two oceanfront resorts.


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## johnmfaeth (Oct 14, 2007)

Wyndhams plans for increasing the number of units at the Beach Club (now 84 units) seem to have been put on hold with the purchase of the former Renaissance (think that was the name) which will become a timeshare resort next year when it reopens. Meanwhile the privately held Wyndham Sugar Bay (name licensee) is working more in conjuction with Wyndham corporate and is planning 50 new units as well as a combined, island wide purchasing plan (supplies, etc.)

All of these new units are planned to be upscale designs.

So, for now, the Beach Club will stay sleepy and my favorite stool at the pool bar (last one on the right) will still be largely available. Let's hope they forget about us for a few more years...


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## johnmfaeth (Oct 14, 2007)

Ironically, when you go past the rock point in GrayFal's first picture you have the main beach at the Marriott (the hotel side), the Beach Club units are more basic than the Marriott, but the beach is the same.


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## GrayFal (Oct 14, 2007)

johnmfaeth said:


> Ironically, when you go past the rock point in GrayFal's first picture you have the main beach at the Marriott (the hotel side), the Beach Club units are more basic than the Marriott, but the beach is the same.


Yup, there is the Marriott (hotel) down the beach from us......the Time Share units are on the other side of the hotel in the harbor, not on the ocean.


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## kdrew (Oct 14, 2007)

*Never a dull moment*



johnmfaeth said:


> While TIA is correct that Equivest/FF was the developer of the Castle, it's role has been reduced the last few years.
> 
> SPM resorts now manages 3 of 4 HOA sections of the resort and has taken over maintenance of the common grounds. Wyndham manages the units of one HOA where they still own a number. One unsettled issue is how much the HOA's and SPM will have to pay in rent for the common areas owned by Equivest.



*Actually, SPM Resorts actually manages the entire resort as Wyndham/Fairfield has abandoned the property and is actually claiming they are bankrupt which not only effects the Castle but the sister resorts like the Beach Club and Elysian. I feel sorry for these owners but often big corporations do what they think is best for them.

With regards to the Shared Use Agreement (SUA), you are correct in that what exactly owners are to pay vs. the developer is up in the air. One issue is why should owners pay to foot the bill for big ticket items and yet not receive any compensation if the resort is sold. For example, Wyndham/FF wants the owners to pay to fix the pool (even though they build it and repaired it several times albeit poorly) yet owners pay their fees to use the pool and would not be compensated if the resort was sold. 

Basically, it is a great deal for the developer. They want owners to keep up the entire property at owner cost and then the developer can sell it at a profit and not give any money to the owners. This is mainly due to poor original documents that do not turn over the resort to owners when sold out. Bottom line, owners are getting the shaft BUT have stood up to fight the developer for years of poor management.
*



johnmfaeth said:


> The lawsuit over what has been reported as widespread financial abuse by the former Equivest prior to it's aquisition by Fairfield continues and will be delayed now for additional years as Equivest St. Thomas has declared bankrupcy as it cannot pay tens of millions owed to it's major creditor, guess who, Wyndham/Fairfield which owns it fully !!!
> 
> I checked 2 weeks after the bankrupcy was filled in the regional Federal Court and 59 motions had already been filed, many of which were each HOA and Equivest trying to get the other's lawyers removed for conflicts, etc. It is a royal mess which is being hard fought all around. Don't expect any outcome anytime soon.
> 
> The BBC and Elysian are at peace with Wyndham/Fairfield and luckily never suffered as the Castle seemingly did, under Equivest. One of the allegations is that Castle money was used to improve these two oceanfront resorts.



*It gets even better since Wyndham/FF was caught with $3M that they were trying to hide yet they were found out. The judge is none too happy. Add to the fact that they are also fighting depositions (gee....I wonder why.....:annoyed: ) and owners will eventually win out here as the dots still connect back to the top. Also there is written proof that Castle money was used to fix the Beach Club and Elysian from not only Equivest but Wyndham/FF. 

As much as people do not want to see it, Wyndham/FF is dirty here as well. Go search and read the long posts John and I had a few months back. I owe him a drink!! 


Ken*


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## johnmfaeth (Oct 14, 2007)

Ken has a lot more involvement as I have never owned a Castle unit and he is a Castle board member. I defer to his more experienced knowledge of that part of the issue, he was there.

And I am eager to repay my debt via buying him a drink (or several).

And for the record, my heart goes out for the owners of the Castle and I support them in their fight for financial justice. I do not know all the facts, but they deserve better than legal wranglings which delay the outcome for additional years. I would love to see all parties sit down and achieve an equitable settlement for the owners. Each year too many are paying the highest MF's in the USVI for their units, and too many have walked away in disgust and doubt.

I am also glad that the Beach Club and Elysian continue to do well and improve constantly with Wyndham as our management company. Both resorts have a delinquency rate below the ARDA stated industry average. 

Both resorts have introduced the 2008 budgets and they were voted on yesterday in Massachusetts. Both have roughly 4% increases for 2008. That increase has been less than all other Caribbean resorts I own for the upcoming year and the past few years.


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## johnmfaeth (Oct 14, 2007)

Hi GrayFal,

Yes, the timeshare units are on the harbor side, not on the hotel/beach side. The Hotel side has the nicer beach. 

And the Marriott beachfront restaurant does have some of the best homemade bread french toast on the island  

John

PS. Forgive me not referring to you by your real first name but didn't know if you were using it here....


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## Gerie (Oct 14, 2007)

Hi Grayfal,

Great pictures.  Thanks for posting them.  Can you tell me when your pictures were taken?  I'm specifically interested in the last, which appears to me to be post-Dean this year.  The western end of the beach looks like it's completely water-logged, but I do see my engagement rock.  We were there during Dean in August and my heart sinks to see that favorite part of the beach under water.  

Gerie


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## GrayFal (Oct 15, 2007)

kdrew, I also feel for the plight of the Castle owners  


johnmfaeth said:


> Hi GrayFal,
> 
> Yes, the timeshare units are on the harbor side, not on the hotel/beach side. The Hotel side has the nicer beach.
> And the Marriott beachfront restaurant does have some of the best homemade bread French toast on the island
> ...


Pat is fine  
What is the name of the restaurant on the beach at the Marriott, my parents are going in November and I want to have several places to send them for dinner, a lunch place in town near/on the waterfront, also need the name of a reliable taxi driver - would like to arrange airport pick-up, grocery shopping and maybe several day trips. Boat trips are okay as long as it takes u someplace and you get off, mom couldn't spend the day on a rocking boat - and they would like to go to St John's to tour and dad would snorkel off the beach ...
It is fine to contact me via the email or pm on this site  
...and no more NJ????


Gerie said:


> Hi GrayFal,
> 
> Great pictures.  Thanks for posting them.  Can you tell me when your pictures were taken?  I'm specifically interested in the last, which appears to me to be post-Dean this year.  The western end of the beach looks like it's completely water-logged, but I do see my engagement rock.  We were there during Dean in August and my heart sinks to see that favorite part of the beach under water.
> 
> Gerie


So it seems I will see a different beach when I visit week 3, 2008. These pictures were taken week 3 of 2006 .... I will take a new set of photos for you in January but we could give John the job of taking cell phone photos to send to you when he returns in a few weeks. ...:whoopie:


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## johnmfaeth (Oct 15, 2007)

Hi Pat/Gerie,

I will take some photos and post them to the BBC Yahoo Group when down in November. 

Gerie, just remember that the sands may ebb and flow from around the rock you share with your John, but that the rock itself is firm and unmoving.

The oceanfront restaurant at the Marriott is located along the Frenchman's Bay Beach. If you start at the lower parking lot (along the beach) it is about 6 or 7 buildings to the west. The buildings you pass are all hotel units. The restaurant is in the building which has a lobby and other common areas. Can't miss it. Lunch there also looks pretty good. In general, the Marriott is always a good place for a meal.

I also love taking the a 4-5 PM ferry to St. John and eating in Cruz Bay after a little shopping. The last ferry back is at 11 PM so you have no fears of missing it. Highly recommend Zozo's or Stone Terrace as the best views/food on the island.

Suggest you post on our Yahoo Group for taxi recommendations. 

John


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