# Charter Club at Naples bay successfully removed sunset clause!



## TUGBrian (Dec 10, 2016)

this is the actual first confirmed report (although i am sure there are others) of a resort successfully being able to remove the "self destruct" or "sunset clause" which would result in the resort ceasing function as a Timeshare at a fixed date in the future. (in this case, 2020)

I received this email from a member today and am passing it along here as a post on the forums



> The Charter Club of Naples Bay had a self-destruct clause for Jan. 2020.  On Dec. 7th , 2016, at the Annual board meeting there was a greater than 50% proxy vote to update the covenants from requiring a vote in 2020 to renew the timeshare to the timeshare will automatically renew every 10 years.  I want to note that Diamond manages the resort and owns close to 50% of the units.



absolutely outstanding job by owners in accomplishing this!


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## TUGBrian (Dec 10, 2016)

for those that want to know more about sunset clauses (Which impact far more resorts than anyone would venture to guess)...here is a thread that details it:

http://www.tugbbs.com/forums/index....020-every-timeshare-owner-should-read.224998/


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## dioxide45 (Dec 10, 2016)

Sounds like Diamond was likely the big voter behind this. I doubt they would have met the quorum and 50% without DRIs near 50% ownership.


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## youppi (Dec 11, 2016)

50% owned by DRI ??? Where this number come from ?
The unsold inventory at Charter Club has been added to the US Collection when DRI acquired Island One in 2013.
From the 2014 Annual US Collection report, there was 8.2 units of the 33 units in the US Collection (around 25%).
From the 2015 Annual US Collection report, there was 5.8 units of the 32 units in the US Collection (around 18%). There is many strange number in the 2015 report.
From a list published a month ago on DRI Facebook Group by a DRI member, there is 460 weeks of the 33*51=1683 weeks in the US Collection (around 27%). I don't know why they use 51 weeks in place on 52 weeks. May be there is 1 week per year that the resort is totally close for maintenance.
So, how DRI can own 50% of the inventory at Charter Club ?


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## Sandy VDH (Dec 11, 2016)

youppi said:


> I don't know why they use 51 weeks in place on 52 weeks. May be there is 1 week per year that the resort is totally close for maintenance.


Many resorts only sell 51 weeks, allowing for out of service time for unit maintenance.  That is a better plan than 52 weeks, which is unrealistic from a maintenance point of view.


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## dioxide45 (Dec 11, 2016)

How much unsold inventory was there. Was Charter Club still in active sales? Also remember that DRI has an active deed back program that they can use to get additional weeks in to the trusts.


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## youppi (Dec 11, 2016)

dioxide45 said:


> How much unsold inventory was there.


From the 2014 report, 8.2 units or 8.2*51=418 weeks



dioxide45 said:


> Was Charter Club still in active sales?.


DRI sells points only



dioxide45 said:


> Also remember that DRI has an active deed back program that they can use to get additional weeks in to the trusts.


The US Collection is the trust and there is 27% of the weeks inside.
So, the only way that DRI can own 50% is if he doesn't add in the trust the deed back units and keep them for rental.


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## youppi (Dec 11, 2016)

I forgot the old Club Navigo (Island One point base system) that has been converted to DRI Florida Club Connection.
I don't know how many week from Charter Club is in this trust if this Club is a trust.
If there is 23% in the Florida Club Connection and 27% in the US Collection trust then this is how DRI could own 50% of Charter Club.


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## nuwermj (Dec 11, 2016)

Club Navigo was not a trust fund system. It was an "internal" exchange program among deeded owners.


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## Charter Club (Dec 11, 2016)

Diamond received all the unsold units from Island One, all the foreclosed units on an on-going basis, and all the deed buybacks.  I just calculated the approximate percentage that Diamond now owns at the Charter Club and it is 42%.  Jared Finkelstein, Diamond VP, stated in 2015 that Diamond wanted to continue the timeshare, but with the Apollo takeover and the value of the land at approx. $15 million we, the owners, were not sure how Diamond would vote.


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## DanZale2000 (Dec 11, 2016)

Charter Club said:


> it is 42%.



Does this number include the deeds owned by the US Collection?


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## Charter Club (Dec 11, 2016)

DanZale2000 said:


> Does this number include the deeds owned by the US Collection?


Yes, that does include the US Collection


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## youppi (Dec 11, 2016)

Unfortunately, the financial 2015 report of the US Collection doesn't say how many point DRI owns in the US Collection (DRI was owned 30,465,686 points).

But if I use the financial 2014 and 2015 report of Hawaii Collection as reference,
- In 2014, there was 237,576,495 points in the Hawaii Collection, DRI was owning 9,291,124 points
- In 2015, there was 294,690,580 points in the Hawaii Collection, DRI was owning 62,653,330 points
From 2014 to 2015, the number of point in the HI Collection increased by 57,114,085 points and DRI increased is owning points by 53,362,206 points. So, DRI sold 3,751,879 HI Collection points in 2015.

Those new points in the HI Collection came from :
- Adding the Monarch Cancun Resort, Las Vegas. NV in the HI Collection (39,640,170 points).
- Adding more units/weeks from the Monarch Palm Canyon Resort, Palm Spring, CA in the HI Collection (10,424,415 points).
- Adding more units/weeks from Polo Tower Villa, Las Vegas, NV in the HI Collection (2,110,500 points). Probably deed back units but can also be owners that have converted their deed to point.
- Adding more units/weeks from Point at Poipu, Kauai, HI in the HI Collection (3,291,500 points). Probably deed back units but can also be owners that have converted their deed to point.
- Adding more units/weeks from Ka'anapali Beach Club, Maui,HI in the HI Collection (1,647,500 points). Probably deed back units but can also be owners that have converted their deed to point.

My theory is all unsold inventory and deed back go to the Collection and DRI owns the points associated to those units/weeks.

So, if I apply this theory to Charter Club then all unsold inventory and deed back/foreclosed units are put in the US Collection and we know that the US Collection owns 27% of the Charter Club then DRI can't own 42% of Charter Club because DRI owns only a certain number of point in the US Collection.

How do you calculate your 42% ?


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## dioxide45 (Dec 11, 2016)

Doesn't DRI hold the voting rights for the weeks held in the trust collections? It doesn't matter if DRI still owns the points or not.


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## youppi (Dec 11, 2016)

dioxide45 said:


> Doesn't DRI hold the voting rights for the weeks held in the trust collections? It doesn't matter if DRI still owns the points or not.


I suppose that it is the trust Collection board of director that vote in each HOA based on the number of week hold in the trust and not DRI directly.

Weeks deposited in the trust are converted in point and the trust own the deed. The voting right in the Collection is based on the number of point owned (DRI has 3 votes per point in the HI Collection if they own at least 20% of the total HI Collection point. Otherwise, 1 vote per point like all members). In general DRI control the trust Collection board and most board directors are DRI employees. So, indirectly DRI votes for the trust in each HOA because DRI controls the trust.


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## dioxide45 (Dec 11, 2016)

youppi said:


> I suppose that it is the trust Collection board of director that vote in each HOA based on the number of week hold in the trust and not DRI directly.
> 
> Weeks deposited in the trust are converted in point and the trust own the deed. The voting right in the Collection is based on the number of point owned (DRI has 3 votes per point in the HI Collection if they own at least 20% of the total HI Collection point. Otherwise, 1 vote per point like all members). In general DRI control the trust Collection board and most board directors are DRI employees. So, indirectly DRI votes for the trust in each HOA because DRI controls the trust.


So could this explain the 42% DRI ownership? I suspect that DRI really doesn't own many weeks. They only own weeks for a short period of time before they are conveyed to the collection trust. They consider trust/collection ownership to be DRI ownership?


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## nuwermj (Dec 11, 2016)

youppi said:


> My theory is all unsold inventory and deed back go to the Collection and DRI owns the points associated to those units/week



I suspect that DRI holds in a collection only enough points to meet their planned sales and holds the remainder as deeds. First, holding deeds is less expensive. The MF on deeds is about 25% less than points, on average. Second, I think Diamond may have more flexibility in the rental market with deeded inventory than they have with point inventory.


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## Charter Club (Dec 11, 2016)

Please feel free to verify it from the Collier County Clerk's web site https://www.collierclerk.com/ for the weeks now owned by Diamond.  My or


youppi said:


> Unfortunately, the financial 2015 report of the US Collection doesn't say how many point DRI owns in the US Collection (DRI was owned 30,465,686 points).
> 
> But if I use the financial 2014 and 2015 report of Hawaii Collection as reference,
> - In 2014, there was 237,576,495 points in the Hawaii Collection, DRI was owning 9,291,124 points
> ...




Please review the Collier County Clerk's web site https://www.collierclerk.com/


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## youppi (Dec 12, 2016)

nuwermj said:


> I suspect that DRI holds in a collection only enough points to meet their planned sales and holds the remainder as deeds. First, holding deeds is less expensive. The MF on deeds is about 25% less than points, on average. Second, I think Diamond may have more flexibility in the rental market with deeded inventory than they have with point inventory.


This is an interesting  possibility.
So, if all numbers are correct, the 42% including the trust said by Charter Club and the 27% posted by you on Facebook then DRI owns 15% (42%-27%). We are far from the OP affirmation (50%).
Yes, DRI controls the trust board of US Collection and indirectly control the 27% of the Charter Club in the trust. When we add its 15% then DRI controls 42% of the Charter Club but DRI owns only 15% not 50% nor 42%.
If a point member owns nothing (the trust owns the deed) then DRI owns nothing too inside the trust (DRI owns only points in the trust and the trust owns the deed). But with its multi voting points, DRI is able to control the trust and indirectly, it looks like DRI owns more than in reality.


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## dioxide45 (Dec 12, 2016)

youppi said:


> This is an interesting  possibility.
> So, if all numbers are correct, the 42% including the trust said by Charter Club and the 27% posted by you on Facebook then DRI owns 15% (42%-27%). We are far from the OP affirmation (50%).
> Yes, DRI controls the trust board of US Collection and indirectly control the 27% of the Charter Club in the trust. When we add its 15% then DRI controls 42% of the Charter Club but DRI owns only 15% not 50% nor 42%.
> If a point member owns nothing (the trust owns the deed) then DRI owns nothing too inside the trust (DRI owns only points in the trust and the trust owns the deed). But with its multi voting points, DRI is able to control the trust and indirectly, it looks like DRI owns more than in reality.


I think the 50% referenced in the OP isn't literally the deeds that DRI owns, but rather all the sources you indicated above.


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## rapmarks (Dec 13, 2016)

last night the answer to a Jeopardy question was "what is a sunset clause"


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