# Humongous $2200 per week 2020 assessment for Barrier Island Station Duck: A 50 Million dollar theft



## biswassb (Aug 1, 2020)

Barrier Island Station Duck owners just received a notification for a $2200 per week per unit special assessment.   For 500+ condos, it will be $50 million fund.   This is over and above $900 maintenance fee.  My unit in the resort is simply not taken care of in many years.  We had a special assessment only a couple of years ago which I paid but I did not see any change in the condition of the resort or my unit.  I think board members stole the money.  With 50 million dollar assessment it is going to be  a day robbery.    I ask every member to withhold payment of any assessment as well as maintenance fees until an independent legal investigation on this assessment is done because there is a huge potential theft ensuing in this resort.


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## geist1223 (Aug 1, 2020)

Please be aware of the penalties/civil judgment for libel/slander


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## escanoe (Aug 1, 2020)

If what is above is untrue, this forum is a good place to inform people or make additional information available. That would likely serve a higher purpose than posting a legal threat.

Seriously, if the board or decision makers sued an owner for simply putting this on TUG .., but did nothing to explain what was going on could they in good faith say they were carrying out their fiduciary duties? What would the reaction of rank and file owners be?




geist1223 said:


> Please be aware of the penalties/civil judgment for libel/slander


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## RX8 (Aug 1, 2020)

What do the annual financials show?


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## RonB (Aug 1, 2020)

The OP who sez nothing was done with the first assessment must be keeping their eyes closed when at BIS. The exteriors have been completely redone. I thought at the time that the first assessment for exterior renovations would not be the last because of the lack of interior work for many years. While not happy with this, I do understand why it's necessary and mgt did explain how/where the money would be spent. I look forward to the long overdue interior renovations and intend to pony up the money. Prior mgt and HOA members is where the blame belongs. We enjoyed low maintenance fees for too many years, and the end result are these assessments. 
The OP also needs to check their math. Total 2020 maintenance fees divided by the 2020 MF gives just under 4100 weeks. And if you multiply that by the assessment, you get just over $9 million. The assessment letter clearly states how that money will be spent, and why it's necessary.
I don't want to pay it, but I will, and I look forward to the improvements to come.


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## billymach4 (Aug 1, 2020)

biswassb said:


> Barrier Island Station Duck owners just received a notification for a $2200 per week per unit special assessment.   For 500+ condos, it will be $50 million fund.   This is over and above $900 maintenance fee.  My unit in the resort is simply not taken care of in many years.  We had a special assessment only a couple of years ago which I paid but I did not see any change in the condition of the resort or my unit.  I think board members stole the money.  With 50 million dollar assessment it is going to be  a day robbery.    I ask every member to withhold payment of any assessment as well as maintenance fees until an independent legal investigation on this assessment is done because there is a huge potential theft ensuing in this resort.


Can  we have more facts... Understand the emotional distress. 
Take a step back and present this issue with more background rather than mob style vengeance.


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## geist1223 (Aug 2, 2020)

escanoe said:


> If what is above is untrue, this forum is a good place to inform people or make additional information available. That would likely serve a higher purpose than posting a legal threat.
> 
> Seriously, if the board or decision makers sued an owner for simply putting this on TUG .., but did nothing to explain what was going on could they in good faith say they were carrying out their fiduciary duties? What would the reaction of rank and file owners be?



I am not a Member of the BOD. I do not even own at that timeshare. So no threat. However going around accusing people of criminal conduct without proof can lead to consequences.


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## RLS50 (Aug 2, 2020)

I am not even sure how to respond to the comments made by the OP, beyond the fact that I have no idea where the numbers came from.

Any owner at BIS-Duck can read the many documents available online to all owners explaining in detail the budget history of the resort year by year, along with the many Owner updates of the past 5 years, as well as a most recent 9 page document explaining the current special assessment of $2,200 in detail.   The assessment is planned to raise somewhere between $8M-$8.5M total, and owners have the option to pay that $2,200 amount in installments over the next 4 years.   The current HOA Board has been discussing the need for a Special Assessment for at least the last 3 years previously.    So this assessment should have been no surprise to anyone (at least not anyone paying attention).

Basically in a nutshell, BIS-Duck owners enjoyed 30+ years of maintenance fees that were significantly lower than the national average.   The total underpayment cumulatively was in the neighborhood of $12M-$18M.    In the years from 1990 to 2015 the resort seems to have never had any regularly scheduled Soft goods (every 5 years) or Hard goods (every 10 years) replacements the way a more professionally managed resort would have attempted to provide.    Looking at the financials there were many years where the Reserve budget was funded at totals under $50k, and definitely under $100k.  That was the Reserve budget line item planned and assessed for the ENTIRE year.   Imagine owning at a resort that did that for decade after decade?   The reality is that a resort the size of BIS-Duck should have been assessing annual maintenance fees that would have funded and maintained a Reserve line item of somewhere between $800K-$2M. 

In 30+ years, even though the annual budget was significantly underfunded by maintenance fees kept unreasonably low, owners were only hit with 2 Special Assessments in that time frame (which occurred in the last decade).   Frankly owners at BIS-Duck should have been hit with a series of staggered special assessments starting 20 years ago to start bringing the resort up to acceptable standards.

Unfortunately current owners are now stuck paying for the numerous mistakes made in the past.   But the positive is that at least Owners should finally be able to look forward to saying goodbye to couches, carpets, etc from the 1980's.


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## pedro47 (Aug 2, 2020)

The $2200 assessment per unit is to be paid at one time or over a period of years.


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## pedro47 (Aug 2, 2020)

escanoe said:


> If what is above is untrue, this forum is a good place to inform people or make additional information available. That would likely serve a higher purpose than posting a legal threat.
> 
> Seriously, if the board or decision makers sued an owner for simply putting this on TUG .., but did nothing to explain what was going on could they in good faith say they were carrying out their fiduciary duties? What would the reaction of rank and file owners be?



What happen to Freedom of Speech ?


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## Sandy VDH (Aug 2, 2020)

What is the number of units at this resort?  Could be the OP is just bad at math.


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## pedro47 (Aug 2, 2020)

biswassb said:


> Barrier Island Station Duck owners just received a notification for a $2200 per week per unit special assessment.   For 500+ condos, it will be $50 million fund.   This is over and above $900 maintenance fee.  My unit in the resort is simply not taken care of in many years.  We had a special assessment only a couple of years ago which I paid but I did not see any change in the condition of the resort or my unit.  I think board members stole the money.  With 50 million dollar assessment it is going to be  a day robbery.    I ask every member to withhold payment of any assessment as well as maintenance fees until an independent legal investigation on this assessment is done because there is a huge potential theft ensuing in this resort.



I hope you retain a copy of that special assessment that occur years ago and what were to be completed using the owners assessment funds . That is your starting point.

Finally, I can bet you someone from your resort HOA are monitoring this website. IMHO. I am not an owner and have never visited this resort.


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## Sandy VDH (Aug 2, 2020)

pedro47 said:


> What happen to Freedom of Speech ?



There is a difference between freedom of speech and libel/slander.


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## pedro47 (Aug 2, 2020)

500 units X $2200.00=$1,100.000.00 Dollars. off top my head. please check my numbers


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## RonB (Aug 2, 2020)

@pedro47  - check my post above. I have done and redone the math...

Edit to add that it is the total number of weeks, not units that count as the MF applies to each week and there are 50 weeks for each unit.

I could still be wrong though.


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## Sandy VDH (Aug 2, 2020)

pedro47 said:


> 500 units X $2200.00=$1,100.000.00 Dollars. off top my head. please check my numbers



@pedro47  you are using intervals.  500 units is far different from 500 intervals.  

Assuming there a 51 intervals per units, permitting 1 week per year for Maintenance, that means there are less than 10 units at this resort if there are 500 intervals. 

That is why I was asking how many units there are.  My guess is about 80 based on @RonB numbers.


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## RLS50 (Aug 2, 2020)

Sandy VDH said:


> That is why I was asking how many units there are.  My guess is about 80 based on @RonB numbers.


I believe there are about 110-115-ish total units?   Of which I believe about 73% of owners are paying their maintenance fees.   The Special Assessment was based on the expectation that about 65%-70% of the owners would pay it.    I can get the exact numbers from the documents posted online.


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## Sandy VDH (Aug 2, 2020)

@RLS50  Thanks that is fine.  I was just trying to figure out how the OP got to 50M.  Bad Math is the answer. 

There are likely collecting for 500 intervals, NOT 500 units with 51 intervals each, which is where the math went wrong.  

If it is more like 110 units X 51 intervals X 65% participation rate.   That is 8 -9 M.  Not the 50 M that the OP said. 

So about 1/3 of the owners they figure will not pay, and the other 2/3 who will pay have to make up for the 1/3 that won't.  So they are each really paying for about 1.5 SP to make up for the rest.


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## rickandcindy23 (Aug 2, 2020)

I think that when owners aren't paying MF's, the remaining owners should be allowed to book those units at reduced rates.  We do that at Val Chatelle because owners are paying extra to cover the fees for those who have walked away.  There is no resale value to most timeshares, and those with seasons that are not worth anything, owners should be able to rent for a minimum amount and then do what they want with the weeks.  Use them, deposit them, rent to friends, etc.


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## RonB (Aug 2, 2020)

And about half of the total assessment is for work to keep two of the buildings from being condemned by Duck for lack of sprinklers.


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## Kozman (Aug 4, 2020)

pedro47 said:


> 500 units X $2200.00=$1,100.000.00 Dollars. off top my head. please check my numbers


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## bbodb1 (Aug 4, 2020)

pedro47 said:


> What happen to Freedom of Speech ?


It is clearly a target of the woke crowd these days.


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## bbodb1 (Aug 4, 2020)

Sandy VDH said:


> There is a difference between freedom of speech and libel/slander.



_The truth is a valid defense. _


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## bbodb1 (Aug 4, 2020)

A few years back, we were hit with a special assessment at La Costa BC.  The parallels of the two resorts were similar - past neglect in terms of keeping the resort updated and attractive finally caught up to the present and when a hurricane hit the area, it was found the insurance was lacking.  I certainly was not happy about the assessment but it appears the resort has been on much more solid footing since the assessment was made and long needed improvements made.  If these actions were not taken, there was a question of the ability of the resort to continue to function.  I'm not sure what happens to owners when a resort they own in shuts down permanently but I'm happy we did not have to find this out.


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## tschwa2 (Aug 4, 2020)

Who is the manager of the resort now a days?


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## Sandy VDH (Aug 4, 2020)

bbodb1 said:


> _The truth is a valid defense. _



It is indeed.  But calling the board thieves was likely not a truthful statement.   OP stated "I think board members stole the money."


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## RonB (Aug 4, 2020)

I'm not a lawyer, and haven't stayed at a Holiday Inn recently either, but isn't adding "I think" to a declarative statement different legally? 

BTW - I don't agree with what the OP said either way.


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## Maple_Leaf (Aug 4, 2020)

tschwa2 said:


> Who is the manager of the resort now a days?


VRI


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## Nolathyme (Aug 5, 2020)

The notification letter from the Board mentioned the sprinklers were incorrectly installed, improper materials were used, and scheduled maintenance was not performed. Is there normally a warranty/guarantee period for this type of work?
The cost for sprinklers will be 1.2 Million dollars.


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## Fayeoctober (Aug 6, 2020)

VRI is the Manager of the BIS as of last November and this is the first time I am seeing this or I would have replied earlier.  Thank you for your comments
*RLS50*

The comments made by the poster are simply not true,  so the comment about "the Truth being a valid defense doesn't apply".  My husband is the Treasurer but no one on the Board touches the check book.  This is a pack of lies and I have just forwarded it to our Board and probably will have more comments tomorrow.

For those who are interested, we have 115 units and each unit was sold for 51 weeks.  From when the resort opened in the mid 80s until 2014, a member of the Developers Team basically ran the Board.  Until SPM came on in 2010, there were no Audited Financial Reports that I am aware of.  Now we have them for every year starting in 2009  (2019 will be available shortly.  With VRI we are going from a largely cash to a more widely accepted accrual accounting system so there has been some delay.)  Fees were kept way too low for too long while BIS Realty was still trying to sell units.  There were not sufficient funds to establish a Reserve account.  When it became apparent that work was needed on the Exteriors, an assessment was made for $1,290 per week and it was hoped that any remaining funds could be used for interiors.  No funds remained and, in fact, a second smaller assessment of $200 had to be made.  Owners were all made aware of this if they took the time to read the documents that were made available to them.

This assessment, which is $2,200, was built assuming a slight increase to our current delinquency rate and assuming some owners will take advantage of a discount, rather than paying it over a four year time period.  I noticed that the person who posted it is a member of TUG, but I don't think that should give him the benefit of posting what are basically untruths. 

By the way we were required to replace the sprinkler systems in two buildings.  I think they are about 30 years old so they wouldn't have been covered by any type of guarantee.


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## Fayeoctober (Aug 6, 2020)

The individual who posted said our maintenance fees are $900.  For 2020 they were $830 and for 2019 they were $780.  If anyone is interested I can post other years, but for way too long they were way too low and they are still below the National average.

I want to add that in the past few years, there have been some improvements.  Three or four years ago, the Internet was upgraded to a high speed state of the art system because Owners indicated that was very important to them.  This year the mattresses were replaced on the master bedrooms.  In addition, a walk-way to the beach is under construction in order to accommodate our Owners with disabilities as well as those who want to use wheeled carts so they don't have to climb up and down stairs.  All this information has been well communicated.  While I am not sure since the name is not provided, I think the poster is simply a disgruntled Owner who was removed from one of our Facebook groups and has also been writing nasty comments on a lot of places.


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## pedro47 (Aug 6, 2020)

IMHO, this resort is in a very nice location on the beach in OBX.  Please do not shoot me. This is my opinion only.


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## RonB (Aug 6, 2020)

pedro47 said:


> IMHO, this resort is in a very nice location on the beach in OBX.  Please do not shoot me. This is my opinion only.



I agree - it's a great location. I just wish it had been kept up. If I remember correctly, it used to be a Gold Crown resort...


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## Tia (Aug 8, 2020)

Fayeoctober do you know why the board chose to replace SPM with VRI? 



Fayeoctober said:


> VRI is the Manager of the BIS as of last November and this is the first time I am seeing this or I would have replied earlier.  Thank you for your comments
> *RLS50*
> 
> ............ Until SPM came on in 2010, there were no Audited Financial Reports that I am aware of.  Now we have them for every year starting in 2009  (2019 will be available shortly.  With VRI we are going from a largely cash to a more widely accepted accrual accounting system so there has been some delay.) ............


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## 47vampire (Aug 8, 2020)

I owned a Hawaiian timeshare that was poorly maintained for many years with low fees and a lack of regular replacement of goods. I received the unit thru a trade for goods with a customer. Once we stayed there, I never went back until after the special assessment (about 10 yrs ago and $2400 for a one bedroom). The board moved to a new management company and greater emphasis on maintenance and replacement.  I have stayed at BSI and the units were horribly date. None of us like parting with our money but reading the reports and updates quarterly and annually let's you know what is being done.


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## bbodb1 (Aug 8, 2020)

Okay, sorry for the derailment here but @47vampire - I have to ask!  
What is the story with your name?


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## Fayeoctober (Aug 8, 2020)

Tia -  First I want to say that this is not an "official" Board response.  Just like it appears the original poster is unlikely to be successfully sued for Libel, this is my understanding based on material provided at last year's Owners Meeting.  The contract with  SPM (now Capital Vacations) was coming to the end of its 5 year renewal period and before an extensive upgrade project was started, they wanted to make sure they had the right management company.  An RFP was prepared, I think five companies replied, and after doing extensive research they felt   VRI possesses

A very high competence and professionalism in the resort management field.
VRI has  stabilized and turned around failing resorts
They have elevated the resorts they manage to higher levels of service and performance
They have successfully managed termination and renovation projects at multiple resorts
VRI is the company that is best positioned to help us meet our tactical and strategic goals

In addition in developing the contract with VRI, there was a significant savings because there would be no additional Management Fee related to the Assessment.  I don't think SPM  was willing to agree to this.  I making my comments I don't want to get into my belief that SPM's performance deteriorated in the later years of the 10 year contract.


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## 47vampire (Aug 8, 2020)

My parents married in 47. The vampire was probably something I was watching the day I had to create the password. I don't really care for vampires.


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## oceanliner1 (Aug 8, 2020)

as an owner at BIS with two units let me say first they sent an email notifying owners that a letter would be coming in the mail and that we could see the entire nine page letter online now if preferred. It CLEARLY stated all the reasons for the assessment and to the person that said half of it was for the sprinkler system in two buildings - that is incorrect. There are three issues - first - the sprinkler failure that caused the shutdown of two buildings - they virtually need to be demolished to replace them as they cannot be repaired - that was more than $1 million. Second was the receation center - it was determined it is setling into the ground and that the walls/ceiling have support issues and it must be demolished and replaced - that contains the indoor pool, sauna, game room, etc. That cost is more than $1 million. Third is the interior furnishings which have long been a concern and the Board has made members aware in the past that this would require a special assessment. That is more than $4 million. The remainder is to have a fund in place for future repairs. The developer, who left five years ago...likely in an effort to keep maintenance fees low and entice people to buy never budgeted any funds for future repairs - so the current owners - many of whom have owned for a lot of years are left to make up the funds the developers neglected to assess. They are likely ponying up more as well due to the minority that will not pay and enter foreclosure (yes - I understand there is a pandemic and people have lost their jobs - but arrangements can be made in those situations). The other past special assessment - and I should say there have only now been TWO since I have owned starting in the 1990s - made an amazing change to the property as previously stated - all the exteriors were replaced and it looks beautiful. They are constantly working every day and send out a monthly newsletter which among other things details exactly where our money is going - what improvements and upgrades have been done every month. With this upcoming work we can get back to higher status with RCI being directly on the beach and take advantage of better trades if desired, a new rec center and all new furnishings. I intend to pay my share - if paid in a lump sum you get $200 off and if desired a special vacation package at a low rate for doing so. I must say I am very surprised that people have posted things like $50 million and half goes to the sprinklers and wanted to set the record straight.


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## 47vampire (Aug 8, 2020)

bbodb1 said:


> Okay, sorry for the derailment here but @47vampire - I have to ask!
> What is the story with your name?


My parents married in 47 and I was probably watching tv about a vampire when I had to create a user name.  Nothing really special.


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## bbodb1 (Aug 8, 2020)

47vampire said:


> My parents married in 47 and I was probably watching tv about a vampire when I had to create a user name.  Nothing really special.


Thanks!  Curiosity was getting the better of me and the possibilities were endless!


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## pedro47 (Aug 8, 2020)

oceanliner1 said:


> as an owner at BIS with two units let me say first they sent an email notifying owners that a letter would be coming in the mail and that we could see the entire nine page letter online now if preferred. It CLEARLY stated all the reasons for the assessment and to the person that said half of it was for the sprinkler system in two buildings - that is incorrect. There are three issues - first - the sprinkler failure that caused the shutdown of two buildings - they virtually need to be demolished to replace them as they cannot be repaired - that was more than $1 million. Second was the receation center - it was determined it is setling into the ground and that the walls/ceiling have support issues and it must be demolished and replaced - that contains the indoor pool, sauna, game room, etc. That cost is more than $1 million. Third is the interior furnishings which have long been a concern and the Board has made members aware in the past that this would require a special assessment. That is more than $4 million. The remainder is to have a fund in place for future repairs. The developer, who left five years ago...likely in an effort to keep maintenance fees low and entice people to buy never budgeted any funds for future repairs - so the current owners - many of whom have owned for a lot of years are left to make up the funds the developers neglected to assess. They are likely ponying up more as well due to the minority that will not pay and enter foreclosure (yes - I understand there is a pandemic and people have lost their jobs - but arrangements can be made in those situations). The other past special assessment - and I should say there have only now been TWO since I have owned starting in the 1990s - made an amazing change to the property as previously stated - all the exteriors were replaced and it looks beautiful. They are constantly working every day and send out a monthly newsletter which among other things details exactly where our money is going - what improvements and upgrades have been done every month. With this upcoming work we can get back to higher status with RCI being directly on the beach and take advantage of better trades if desired, a new rec center and all new furnishings. I intend to pay my share - if paid in a lump sum you get $200 off and if desired a special vacation package at a low rate for doing so. I must say I am very surprised that people have posted things like $50 million and half goes to the sprinklers and wanted to set the record straight.


Your post gave a better understanding of the reasons for a special assessment of all the problems at the resort. Your location in Duck and on the beach and in OBX, is worth the cost of the special assessment   IMHO. I hope the resort again, can be a Gold Crown resort, with RCI  in the near future


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## iowateach (Aug 8, 2020)

This is probably a bad week to list BIS in the Bargain Basement ads.


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## avad88 (Aug 8, 2020)

We don’t own at BIS Duck but exchanged there twice about 5 or so years ago. The beachfront location is great and they have a beautiful outdoor pool. The outside was being redone when we were there last and it was nice. However, the interior of our units both times was horrible, not only old uncomfortable  and outdated furniture but worn carpets, mold in the bathroom etc. We never returned.
We owned BIS Kitty Hawk for many years. BIS Duck and BIS Kitty Hawk were originally owned by the same developer but BIS Kitty Hawk was purchased by Diamond Resort, who hit owners with a huge assessment and raised yearly fees exorbitantly, so we sold. 
BIS Duck owners should be glad they still have reasonable yearly fees. If the units are redone, we will gladly return.


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## callwill (Aug 8, 2020)

pedro47 said:


> What happen to Freedom of Speech ?


With freedom of any kind there is responsibility.  If you cannot backup what you say with evidence you may be subject to the libel charges and also sued for damages.


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## Larry M (Aug 9, 2020)

pedro47 said:


> What happen to Freedom of Speech ?


Freedom of Speech is a restriction on the government, not other individuals, employers, organizations, or other corporate bodies. The latter three can restrict speech in any manner they choose.


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## joestein (Aug 11, 2020)

pedro47 said:


> What happen to Freedom of Speech ?


Freedom of speech is protection against prosecution by the gov't for what you say.     It doesn't protect you against citizens or businesses.


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## Pat Kunder Wismann (Aug 11, 2020)

pedro47 said:


> The $2200 assessment per unit is to be paid at one time or over a period of years.


This assessment can be paid in full @ $2,000 with bonus week option or over 4 years with installments for a total of $2,200.  I have owned since 2017 and purchased knowing full well to expect this assessment.  As mentioned, information about the resort's history is readily available.  Many owners enjoyed this property with no real increase in MF's for years, yet they are the ones who are unhappy about this assessment.   Everyone had the right to vote on the improvements to the resort and approved doing a full interior renovation over a partial update to units.  Every owner has had the information about the budget and that MF's needed to be increased in order to move forward with proper ongoing resort maintenance.  I have found this board to be hard working and upfront about on what is going on as well as willing to answer owner questions.


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