# Shell Island Beach Club No Longer Managed by HGVC



## dappledwilly (Apr 6, 2009)

Saturday (04/04/09) We visited Shell Island Beach Club Resort on Sanibel Island to see what it was like for future reference and to pick up some re-sale information. When I spoke with the Hilton Rep. there, she informed me that as of Tuesday 04/07/09, the resort would no longer be managed by HGVC . She was not sure of particulars but indicated that the HOA had elected not to renew the HGVC contract. I am not sure if this is new news or how it impacts current owners but I thougt I would post it for information. This is the only information that I have.

Dappled Willy


----------



## Bill4728 (Apr 6, 2009)

Many of the affiliates on the Gulf coast have many owners who have choosen not to affiliate with HGVC. So if most of the owners don't see a value to them to be affiliated with HGVC, it shouldn't be a surprise that the resort's HOA has taken this action.


----------



## ricoba (Apr 6, 2009)

I don't know if this will be a trend or not, but I can see that it will be a problem for HGVC which has chosen to expand by affiliation and not by building new resorts.


----------



## PigsDad (Apr 6, 2009)

ricoba said:


> I don't know if this will be a trend or not, but I can see that it will be a problem for HGVC which has chosen to expand by affiliation and not by building new resorts.


This is definitely a concern, but that only applies to affiliated resorts where HGVC membership is optional.  There are some resorts (Valdoro, for example) that are affiliates but HGVC membership is mandatory.  Those resorts would be much less likely to drop HGVC, IMO.  

It would be interesting to see statistics on percentage of HGVC members at the various affiliate properties.  For example, MarBrisa -- is being sold w/ HGVC membership, but there have been posts indicating that HGVC membership would not be allowed for resale purchasers.  Will be interesting to watch that one.

Kurt


----------



## alwysonvac (Apr 6, 2009)

PigsDad said:


> It would be interesting to see statistics on percentage of HGVC members at the various affiliate properties.




From an April 2006 post



awsherm said:


> I was reviewing some of the HGVC fine print last night and was interested in just how many units each of the properties have available to the club. It seems pertinant to the affiliate discussion so I'll summarize here. The data comes from "HGVC Disclosure Statement" dated *6/05*.
> 
> Affiliates:
> Plantation Bay Villas - 4
> ...


----------



## Talent312 (Apr 6, 2009)

ricoba said:


> I don't know if this will be a trend or not, but I can see that it will be a problem for HGVC which has chosen to expand by affiliation and not by building new resorts.



Perhaps if some more affiliates drop out, HGVC will actually "see the light" and build someplace new... and pigs might fly.


----------



## ricoba (Apr 6, 2009)

According to the statistics above there are 1342 affiliate units compared to 1051 HGVC units.

Our program would really "suck" big time, if all the affiliates disaffiliated!

Not saying it's likely to happen, but when is HGVC going to build stand alone resorts in different locations outside the big three?  Of course I have asking this question for a few years now. 

Looks like Talent & I posted about the same time.  Great minds think alike, eh!!!


----------



## mlsmn (Apr 6, 2009)

I'm an owner. Upset also at the news

I just sent an email to Kathy Schneider-Pres Board of Directors

sibcboard@bigfoot.com

will let you know her answer


----------



## dvc_john (Apr 6, 2009)

I wonder what they plan to do for insurance.

One of the big advantages for an affiliate on the gulf coast to be managed by HGVC is the insurance.


----------



## jestme (Apr 6, 2009)

ricoba said:


> According to the statistics above there are 1342 affiliate units compared to 1051 HGVC units.


Total real HGVC units is actually 2393. That total doesn't include Waikikian, and Kings Land, so it isn't as one sided as it looks. I certainly agree that other places would be nice though.


----------



## urple2 (Apr 6, 2009)

Yes, sad news... It is a great place to stay. Wonder how easy it would be to get in there thru HGVC via RCI.


----------



## mlsmn (Apr 8, 2009)

No answer this AM at Shell Island office
No answer to my email of 2 days ago

I called another HGVC affiliate on Sanibel and was told 

Board of Directors locked out HGVC people this AM
meeting at lawyers office tomorrow

I think this is all about roof repair from the hurricane a few years ago

My question is as owners why weren't we updated?


----------



## Beverley (Apr 8, 2009)

mlsmn said:


> No answer this AM at Shell Island office
> No answer to my email of 2 days ago
> 
> I called another HGVC affiliate on Sanibel and was told
> ...



BINGO! We should have been asked.  This should not be a "read it and weep" deal.    I am not too happy with the news and would like to know more about it too.  

There was some discussion somewhere (may have even been here on the board ... not sure) about some board members feeling that Hilton was not stepping up to some roof repairs from a hurricane a few years back.  It sounded like there was some "bad blood" developing, however, the board is to be acting on behalf of all the owners and dropping Hilton should not have happened without a vote from all of the owners.   

Beverley


----------



## timeos2 (Apr 8, 2009)

*The Board has the duty to operate the resort for the owners*



Beverley said:


> BINGO! We should have been asked.  This should not be a "read it and weep" deal.    I am not too happy with the news and would like to know more about it too.
> 
> There was some discussion somewhere (may have even been here on the board ... not sure) about some board members feeling that Hilton was not stepping up to some roof repairs from a hurricane a few years back.  It sounded like there was some "bad blood" developing, however, the board is to be acting on behalf of all the owners and dropping Hilton should not have happened without a vote from all of the owners.
> 
> Beverley



This seemingly comes up every time a Board takes action to change management - never an easy thing or decision to make. There is no time or reasonable way to have the whole ownership vote on this unless it is required in the documents (rare). No one knows better than your Board how the management is performing (or not) and is in the best position to evaluate other companies. Your vote is for the Board members who then have the right and responsibility to run the resort for the benefit of all owners. Part of that - a BIG part - is getting a responsive, capable and economic management in place. Trying to get all owners to understand the options and to vote intelligently on that type of operational decision is NOT in the best interest of the Association IMO.  Most resorts must agree as it is not a requirement that owners vote for the management but only for the Board.  Let them do their (unpaid) job and support them by attending meetings and actually reading what they send out.  And vote for qualified people.


----------



## PortableTech (Apr 8, 2009)

You mean they physicially would not allow owners there whom held HGVC memberships into the meeting?  I would think from a BOD perspective and owner is an owner, can they even do that?

Doug


----------



## Talent312 (Apr 8, 2009)

Doug said:


> You mean they physicially would not allow owners there whom held HGVC memberships into the meeting?



I don't think *mlsmn* was referring to owners, but to the managers.
"Board of Directors locked out HGVC people this AM" = why phones weren't answered...
"meeting at lawyers office tomorrow" = board members consulting on legal rights.


----------



## JonathanIT (Apr 8, 2009)

While this is bad news for owners of this resort... as an HGVC member it doesn't really bother me. I mean it's not like there are any shortages of Gulf Coast resorts to stay at.  Frankly, since I became a member I have always wondered why they have _so many_ resorts in that part of FL.  I mean in some places it looks like there are three or four right next to each other (I admit I've never stayed at any of them).


----------



## mlsmn (Apr 8, 2009)

Meeting is between HGVC and Bd of Dir. if i remember correctly

If you own at SIBC perhaps calling them to let them know your opinion would be helpful.

It seems that's the only number that you can talk to somebody.
They don't answer emails or phones at Shell island

lawyers can be reached at 1 800 462 7780
Becker & Poliakoff /Ft Meyers

I called at 12 noon never got call back
I'm going to try again tomorrow (Thurs.)

We get a number of benefits from being in HGVC so I want Hilton to remain.


----------



## Talent312 (Apr 9, 2009)

JonathanIT said:


> ... Frankly, since I became a member I have always wondered why they have _so many_ resorts in that part of FL...



The reason for this lies in how HGVC began.  Before HGVC was ever a twinkle in the eye of Baron Hilton, there was the Mariner Group (a Florida TS developer), which built [a bunch of]  SW-Florida resorts.  Then, in 1992, they partnered with Hilton Hotels to create HGVC.  They affiliated their resorts, and was Hilton's partner in the development of HGVC-Flamingo & Seaworld.  Later, they sold their interest to Hilton, and their resorts remained as affiliates... sort'a like step-children brought into a new marriage.
See: http://www.themarinergroup.com/vacation-ownership.asp


----------



## dvc_john (Apr 9, 2009)

JonathanIT said:


> I mean it's not like there are any shortages of Gulf Coast resorts to stay at.  Frankly, since I became a member I have always wondered why they have _so many_ resorts in that part of FL.  I mean in some places it looks like there are three or four right next to each other



While there are a lot of resorts near each other, they are all small, and together don't have as many rooms as HGVC Seaworld.
eg: Hurricane House: 15 units, Sanibel Cottages: 28 units, Tortuga Beach Club: 54 units, Casa Ybel: 74 units
Also, many owners do not belong to HGVC, so the number of unit/weeks in HGVC is even less.



Talent312 said:


> The reason for this lies in how HGVC began.  Before HGVC was ever a twinkle in the eye of Baron Hilton, there was the Mariner Group (a Florida TS developer), which built all these SW-Florida resorts.  Then, in 1992, they partnered with Hilton Hotels to create HGVC.  They affiliated their resorts, and was Hilton's partner in the development of HGVC-Flamingo & Seaworld.  Later, they sold their interest to Hilton, and their resorts remained as affiliates... sort'a like step-children brought into a new marriage.
> See: http://www.themarinergroup.com/vacation-ownership.asp



While most Sanibel and Captiva resorts were developed by Mariner, Shell Island was NOT one of them.
Also, one resort on Ft Myers Beach that was developed by Mariner never did become an HGVC affiliate. It was originally called Mariners Boat House and Beach Resort (or something like that).


----------



## rickandcindy23 (Apr 9, 2009)

I wish HGVC would manage our Colorado resort.


----------



## mlsmn (Apr 9, 2009)

Just spoke to lawyers office.

They have been instructed not to say anything

I told them about the story being on TUG and that owners are upset and to tell the lawyer handling things for the owners assoc.

Phone at SIBC still going to voice mail at 11:12AM


----------



## timeos2 (Apr 9, 2009)

*Use your rights as an owner to get information from the right sources*



mlsmn said:


> Just spoke to lawyers office.
> 
> They have been instructed not to say anything
> 
> ...



Of course the lawyers aren't going to talk directly to the owners - your contact is through the Board. It is time to find out how your Association works, who your Board members are, why they feel a change is needed and more. But it all is internal and handled correctly through the Board /  Resort NOT through BBS postings (they are great for general information but not for specifics that may be limited to Owners) or third parties that are working for the Association (Lawyers/Management).  Get involved and find out what is going on. There may be many reasons why simply staying with Hilton may not be a good value for the owners. Or maybe there has been a problem and this is the result. But you have to be involved at an owner level.  Otherwise you have left the big decisions to your elected Board with little owner input and will have to live with whatever they decide. Remember they hold the keys are they alone are specifically charged with the duty of operating the resort for the owners.  You need to interact with them so they know what those owners desire. Good luck.


----------



## Seth Nock (Apr 9, 2009)

Shell Island Beach Club is the only Hilton affiliate that is made up of both whole ownership and timeshare intervals.  The Board voted to break their contract with Hilton, which I believe may be in violation of their rights.  I have been told that ALL HGVC owners who choose to remain members of HGVC Club, will remain and be able to deposit their weeks.  Hilton will review their rights, as the contract was believed to be terminated without due process (a vote from the all actual owners - not the board).  If all the Shell Island owners who are interested in keeping Hilton as manager would email me sethnock@sellingtimeshares.net with their names, phone #s email addresses and interval #s, I will put together a number of owners who can help keep Hilton as management.  This is the only Hilton affiliate that this affects.  This is the only Hilton affiliate with whole unit owners.


----------



## sandcastles (Apr 9, 2009)

Doesn't Casa Ybel have both whole and interval units?  Not saying they do, just asking.

I don't know enough about it to know what I think of HGVC as a manager, but I do know the insurance was great in the last hurricane.  We had no special assessment fees at all.


----------



## dvc_john (Apr 9, 2009)

sandcastles said:


> Doesn't Casa Ybel have both whole and interval units?  Not saying they do, just asking.
> 
> I don't know enough about it to know what I think of HGVC as a manager, but I do know the insurance was great in the last hurricane.  We had no special assessment fees at all.



Yes, Casa Ybel has 74 2-br units that are timeshare (in 6 buildings), and 40 1-br units (in 5 buildings separate from the timeshare buildings) that are wholey owned. I'm not sure exactly what, if any, the relationship between the wholey owned units and HGVC might be. But I do know that the 2 boards for the timeshare units (3 buildings have 1 board, and 3 buildings have a different board) have nothing to do with the wholey owned units.

And I agree about the insurance. Both Casa Ybel and Sanibel Cottages had excellent coverage for the hurricane damage thru HGVC's insurance.


----------



## Seth Nock (Apr 10, 2009)

I think it is a seperate board, though.  I will check.


----------



## ecwinch (Apr 10, 2009)

dvc_john said:


> And I agree about the insurance. Both Casa Ybel and Sanibel Cottages had excellent coverage for the hurricane damage thru HGVC's insurance.



This might be more a factor of the relative claims history of the resort. Resorts with any significant claims in the last 10 years, probably were forced into a higher deductible with more exclusions and a coinsurance requirement on renewal. Property coverage rates in coastal areas with wind and flood exposure have increased drastically in the past 10 years. Particularly on older resorts that have less engineering to combat the effects of that those risks.


----------



## Seth Nock (Apr 10, 2009)

I have been told that Hilton's insurance is better than that of most of the other Timeshare companies'.


----------



## timeos2 (Apr 10, 2009)

*It's a volume not a brand thing*



Seth Nock said:


> I have been told that Hilton's insurance is better than that of most of the other Timeshare companies'.



Unless Hilton is running their own Insurance company (they aren't) they are using a broker and getting the best deals from large insurers just like every other company. The shear size of the business can help lower rates in some cases vs a single resort or two getting their own coverage. Thats most likely where the big savings came from.  Others like Marriott, Wyndham and even management groups like VRI should also get those benefits based on volume. The downside can be that loses in FL can have an impact on rates for other resorts in the master plan that are in less disaster prone areas.  It is important that all resorts review their coverage every few years and not just assume the group rate is the best.  Like everything purchased you have to shop around to assure the best value.


----------



## alwysonvac (Apr 10, 2009)

The HGVC Shell Island Beach Club website has been updated with the HGVC news



> *Important Update*
> _As of April 8, 2009, Hilton Grand Vacations Company no longer manages Shell Island Beach Club.
> If you have any questions or concerns regarding this news, please contact Hilton Grand Vacations Company_



Looks like there was some disagreements regarding roof ponding and insurance claims based on the last owner update provided by HGVC back in November 2008 - see http://www.hgvc.com/shellisland/pages/News.html



> From the November 2008 owner update - http://www.hgvc.com/shellisland/pages/Shell Island Letter UPDATED 11.18.08 FOR WEB.pdf
> _
> *Updates from Your Management Company*
> Hilton Grand Vacations Company would further like to take this opportunity to provide you with the latest information on two operational issues at your resort:
> ...


----------



## Talent312 (Apr 10, 2009)

Could this be a case of "biting the hand that feeds you," cuz they wanted a ham bone, but were only given a chew-toy instead?  What, no ham bone?


----------



## jd5504 (Apr 11, 2009)

*HGVC Shell Island New Management*

A few days ago I heard SIBC Board of Director's (BOD's) changed management companies. My concern is the way the BOD's did this. No owners were contacted that I know of. If the  BOD's did this with recklessness as it may appear to some, I am really concerned about the big decision they made on their own. This is a big decision and I always worry about big decisions made quickly with the possibility of certain  groups receiving perks. Hopefully SIBC owners can get together with one voice to at least question the BOD's regarding this process. I sent a letter to the SIBC Board at sibcboard@bigfoot.com protesting this process. 
I contacted the HGVC rep on site. Here is part of an email from the HGVC rep on site at SIBC:

If it makes you feel better you can write the BOD's but the way this was done I do not think the BOD's care what you think.  If they did, it would not have occurred in this manner. There is a small owners group that is banning together.  

I returned from California April 2. On April 3 I learned of the problem and by April 8 the board sent a locksmith after hours to change the office locks.  We had April 9 to clear out. The way the management company was treated by the board was not only unprofessional, but insulting to say the least.  They even had a security guard posted while we were clearing out.  The former Maintenance Man Ken Sandrick came back to help the board and supervise the dismissal of his former work mates of 10 years. They flew him in from Arizona on our dollar. No wonder they threw him a big retirement dinner and gave him $$$ before he left.  Again on our dollar and I let him know that when I saw him.  I couldn't make all this up if I tried.  It was so hurtful.


----------



## Talent312 (Apr 11, 2009)

The Shell Island OA's Articles of Incorporation and Bylaws likely vest authority to contract for management services in the BOD.  The Board would otherwise be responsible for management and maintenance, themselves.  So it seems that individual owners who disagree with the BOD are SOL, unless enuff of them organize to force a special meeting to replace the BOD, or replace them at the next regular meeting.

I'm guessing that the next step in this drama will be HGVC terminating or non-renewing SIBC's affiliation, casting its HGVC-participants adrift, but that would be a separate issue.


----------



## mlsmn (Apr 12, 2009)

Here's the email I got from Pres. Bd of Dir and below that my email
-terrible the way they have handled it.
-no regard for the owners -especially the ones that had a relationship with HGVC.

Richard,

The SIBC Board of Directors' e-mail policy with owners is to try to respond within 24 hrs. to any comments.  I apologize for the delay.  The reason for the delay is that the Association attorneys have demanded confidentiality related to Board member comments.  The law firm has requested that e-mail responses to owners be reviewed by them.  I am sorry I cannot respond to your questions at the moment.

As you may know, the HGVC management agreement has been terminated for cause as of April 7, 2009, and, today, April 9, 2009, a new management agreement with Kenoyer Real Estate Corporation of Sanibel, a full-service time share management firm, has been approved.

Specific details regarding Kenoyer, the benefits to owners and the SIBC Association as well as insurance information will be communicated with owners very soon.

Kathy Schneider, President
On behalf of the SIBC Board of Directors

 -------
 In a message dated 4/6/2009 3:49:12 P.M. Central Daylight Time, :
Ms. Schneider,

What's going on?
I have to hear about Hilton being dropped as of tomorrow as manager on TUG.

(Saturday (04/04/09) We visited Shell Island Beach Club Resort on Sanibel Island to see what it was like for future reference and to pick up some re-sale information. When I spoke with the Hilton Rep. there, she informed me that as of Tuesday 04/07/09, the resort would no longer be managed by HGVC . She was not sure of particulars but indicated that the HOA had elected not to renew the HGVC contract. I am not sure if this is new news or how it impacts current owners but I thougt I would post it for information. This is the only information that I have.)
----------------------------------------
When was board of directors going to inform us?

Why didn't the owners have a chance to vote on this?
If this happens I for one will be very upset with the board. 

I like being with Hilton
I know you had problems with hurricane repair, but if you read both the directors statement and Hilton's theirs sounded more believable.

Please inform all owners about what's going on otherwise it looks like something fishy is going on.

I'm waiting for your answer before I comment on my website ( pointswizard.com ) or TUGbbs.com timeshares users group or timeshareforums.com


----------



## Steve (Apr 12, 2009)

On the positive side, I used to own a week at Sanibel Beach Club II.  While I was an owner, the resort changed management companies.  The new company that they hired was Kenoyer Real Estate.  It's a locally owned company on Sanibel Island, and I think they did (and do) an excellent job.  

I understand the frustration that owners of Shell Island Beach Club feel in regards to the lack of communication from the board and the loss of the Hilton affiliation, but this might not be all bad.  Kenoyer is a good company and I suspect that they charge lower fees for their services.

Steve


----------



## Bwolf (Apr 12, 2009)

I'll support Steve's comments.  We almost bought a SBCII managed by Kenoyer.  They do well.  We stayed at Caribe Beach Resort, also managed by Kenoyer.  Very well run.


----------



## cavs (Apr 12, 2009)

*Shell Island Owners Web Site*

There is a new website that has been launched by a very involved time share owner at Shelll Island.  All owners are being invitied to register on this website.  So far there has been a lot of information gathered regarding this withdrawal from HGVC.  This is an opportunity for the timeshare owners to stay updated on current events and contact other owners of Shell Island.
http://shellislandbeachclub.ning.com/


----------



## timeos2 (Apr 12, 2009)

*Affiliation should not be affected*



Talent312 said:


> The Shell Island OA's Articles of Incorporation and Bylaws likely vest authority to contract for management services in the BOD.  The Board would otherwise be responsible for management and maintenance, themselves.  So it seems that individual owners who disagree with the BOD are SOL, unless enuff of them organize to force a special meeting to replace the BOD, or replace them at the next regular meeting.
> 
> I'm guessing that the next step in this drama will be HGVC terminating or non-renewing SIBC's affiliation, casting its HGVC-participants adrift, but that would be a separate issue.



Unless HGVC wants to "punish" resorts / members there is no reason that existing contracts for affiliation cannot continue to be honored (or grandfathered in as it is often called).  There could be no new conversions but those that joined HGVC while the resort was under HGVC management would continue to be HGVC members and trade their units / weeks with HGVC. It has been that way for many resorts that have changed management.  The whole idea of non-developer based management will continue to grow as resorts age and owners, who pay 100% of the upkeep and operations, look for better value than high overhead systems such as HGVC or Marriott or whoever to handle management. 

It should not be a requirement that the resort be managed by group XXX to be part of an affiliation.  What if RCI had to manage your resort to be part of the RCI exchange system? Crazy of course but the same idea that HGVC must manage for owners to participate in HGVC.  It is just another exchange system affiliation - nothing to do with resort management. Mixing unrelated services leads to higher costs and less value for the annual fee dollar spent. Wise Associations handle things as separate functions. Get a good management. Affiliate with the exchange companies / systems desired. But don't mix the two as one company is seldom the best at both.


----------



## JonathanIT (Apr 12, 2009)

timeos2 said:


> Unless HGVC wants to "punish" resorts / members there is no reason that existing contracts for affiliation cannot continue to be honored (or grandfathered in as it is often called).  There could be no new conversions but those that joined HGVC while the resort was under HGVC management would continue to be HGVC members and trade their units / weeks with HGVC. It has been that way for many resorts that have changed management.  The whole idea of non-developer based management will continue to grow as resorts age and owners, who pay 100% of the upkeep and operations, look for better value than high overhead systems such as HGVC or Marriott or whoever to handle management.
> 
> It should not be a requirement that the resort be managed by group XXX to be part of an affiliation.  What if RCI had to manage your resort to be part of the RCI exchange system? Crazy of course but the same idea that HGVC must manage for owners to participate in HGVC.  It is just another exchange system affiliation - nothing to do with resort management. Mixing unrelated services leads to higher costs and less value for the annual fee dollar spent. Wise Associations handle things as separate functions. Get a good management. Affiliate with the exchange companies / systems desired. But don't mix the two as one company is seldom the best at both.


So would other non-owner HGVC members still be able to book into Shell Island for use with HGVC pts?


----------



## Sandy VDH (Apr 12, 2009)

There are already many resorts that are not managed by Hilton but are part of HGVC points.  The Grand Pacific resorts, the Club Intrawest resorts, Sunset Cove Resort, The Fiesta Americana Resorts, and the Explorean Kohunlich are all NOT managed by HGVC but have some units that participate in HGVC.  

Now units are likely limited at some of these resorts, so you do not have access to every unit interval, but only those who's owners participate in HGVC.  You can only trade into any of these resorts if an owner or management representing the owner makes inventory available.  I say management, because likely at the group resorts (GP, CI, FA) someone likely manages the trade balance between the two systems, and it is likely not done on an individual owner level.


----------



## ecwinch (Apr 12, 2009)

mlsmn said:


> As you may know, the HGVC management agreement has been *terminated for cause* as of April 7, 2009, and, today, April 9, 2009, a new management agreement with Kenoyer Real Estate Corporation of Sanibel, a full-service time share management firm, has been approved.
> 
> 
> She was not sure of particulars but indicated that the HOA had *elected not to renew the HGVC contract*.



If I was an owner, I would be concerned about which one it was: a non-renewal or a termination for cause.

And given how the transfer occurred (locks changed, security guard posted), it certainly sounds like a termination for cause.

If it was termination for cause, HGVC may have recourse. I would want to make sure that the BOD had a solid legal opinion supporting their action.

And no matter how competent the new mgt company is, you still have to question the BOD taking this action - which clearly has some impact on the owners who valued the relationship with HGVC - without owner input.

It will be interesting to see how it plays out.


----------



## Talent312 (Apr 12, 2009)

timeos2 said:


> Unless HGVC wants to "punish" resorts / members there is no reason that existing contracts for affiliation cannot continue to be honored (or grandfathered in as it is often called).



IMHO, anyone from whom HGVC accepted a membership activation fee has vested interest in the HGVC club, as long as they pay their annual membeship fee.  But I'd take odds that Hilton will at least review their affiliation contract with an eye toward refusing new memberships and keeping other HGVC'ers from booking there.


----------



## wrxdoug (Apr 12, 2009)

"If I was an owner, I would be concerned about which one it was: a non-renewal or a termination for cause."  We are week 15 owners at Shell Island and came back yesterday from there where we attended several informal meetings by owners as well as going to the law office where a meeting was being held.  It was *not* non-renewal but supposedly termination for cause.  Interestingly enough the board could have non-renewed in December of 2008 but would have had to put it up for member vote.  Instead they allowed the contract with HGVC to renew which began Jan. 1, 2009, and proceeded to terminate for cause now which involves legal fees.  December they would have had to inform owners and explain as well as put it up for a vote now, of course, they hide behind confidentiality issues due to lawyers.  Whatever issues resulted in termination for cause was evident four months ago so this way of handling things by a board that supposedly represents all owners has me very suspicious as to their true intentions.  This has me, as an owner, very concerned how they chose to proceed.  I was told that two board members who owned wholly owned units had the units for sale and sold them right before this took place.  Doug


----------



## Seth Nock (Apr 12, 2009)

Information I have been given about the board meeting.

1. The board as of the December meeting was made up of 5 whole ownership units and 2 timeshare owners.
    ( 7 seated board members )
2. Two of the whole ownership members seated had their units up for sale and 1 had a pending contract.

3. Two board members sell and the board now runs with  3 whole owners and 2 timeshare owners.

4. A BOARD of 5 Members Terminate Hilton Management.  

5.  FACTS. The whole owners only represent 12 units with approximately 660 votes.

6. Timeshare owners represent 44 units with approximately 2,200 votes

7. If this went to vote as it should have by law, there was a good chance that the board would not have been able to pull this off.


----------



## timeos2 (Apr 12, 2009)

Seth Nock said:


> 7. If this went to vote as it should have by law, there was a good chance that the board would not have been able to pull this off.



There is no Fl law or statute requiring an Owner vote to hire/fire a management company. Unless the resort documents call for that process the Board is within their rights as the legal operator for the owners to change management.


----------



## Talent312 (Apr 12, 2009)

timeos2 said:


> There is no Fl law or statute requiring an Owner vote to hire/fire a management company. Unless the resort documents call for that process the Board is within their rights as the legal operator for the owners to change management.



For the insanely curious, the SIBC Articles of Incorporation and Bylaws are online here: http://www.hgvc.com/shellisland/pages/News.html
Article IV, Section 12, of the Bylaws vests the BOD with the authority to contract for management services.  Interestingly, there are also provisions for recall of the directors.


----------



## wrxdoug (Apr 13, 2009)

*Owners need to get involved!*

The board for the association does have the right to change management companies but they could have just not renewed with hilton in Dec. 2008 instead they renewed starting Jan. 2009 and proceeded to contact lawyers after they terminated for just cause right after the renewal date.  This has been in the works for months so we (owners) made a poor choice by voting board members in who were not up for the challenge it seems.  I have to be concerned about judgement if someone enters into a termination of contract for cause with an organization as large as hilton/hgvc without exploring options.  They have a reputation to keep and it would be logical they would chose a legal battle over terminating their contract for cause.  Not to renew on the other hand, what could they do really legally? That action would be the same result and would be unlikely to result in legal battles.  All the factors that would lead to change of management were present in December 2009. Why take an adversary approach only a month or two later and violate a contract with hilton (cause or not) when you could have just not renewed?  All owners please check out the site one of the previous posters mentioned to stay updated on current events and contact other owners of Shell Island. Register and read information at http://shellislandbeachclub.ning.com/ We now have a responsibility to stay informed and get involved.  Then, decide if these board members are acting in our best interests and vote differently as soon as we can if we decide they are not.  We have a great resort with low maintenance fees compared to other sanibel island timeshares (particularly hgvc managed ones) and this may be changed if we owners do not start getting educated and involved.


----------



## kter (Apr 17, 2009)

*I want HGVC*

I am a one week owner and like the HGVC option-- in fact it was the only reason I purchased here. I am disgusted with the direction of this board. I first learned of this by getting a letter from a lawyer.  No prior notification!  If this was all above board why so secretive? Seems to me something this critical should be presented to all owners for input. I thought the place was pretty well maintained and managed.  Can someone explain what happened and who was behind this mess? Was it whole owners and not the TS owners?


----------



## Seth Nock (Apr 19, 2009)

I spoke to Cory from San Francisco Exchange program.  He agreed to give all Shell Island Beach club owners a free 3 year Platinum membership in San Francisco Exchange program as well as a $699/ $899 bonus certificate.  Any Shell Island Owner interested, please email me sethnock@hotmail.com with your name, address unit owned and week and I will forward it to him to get your membership set up.


----------



## ecwinch (Apr 20, 2009)

I think the first question I would ask is what has the BOD budgeted for legal expenses in 2009. Obviously this could become a large unusual expense, and I think it would be sad if a special assessment was required to fund legal expenses related to the termination for cause.


----------



## mlsmn (Apr 20, 2009)

I can't wait to get this BOD out

The lack of keeping owners informed was a big mistake.


----------



## JPETERS (Apr 21, 2009)

*Lawyers and the board*

As an owner and working at Shell Island Beach Club, I can honestly say this board did not act on behalf of the timeshare owners.  Actions speak louder then words. 
 The board made up of whole owners had an agenda, and with the help of the attorneys, created loop holes to leave the timeshare owners in the dark. 
 If I were a fly on the wall....I bet all 12 of the whole owners knew in advance what was going to happen.
 :annoyed:


----------



## alwysonvac (Apr 21, 2009)

JPETERS said:


> As an owner and working at Shell Island Beach Club, I can honestly say this board did not act on behalf of the timeshare owners.  Actions speak louder then words.
> The board made up of whole owners had an agenda, and with the help of the attorneys, created loop holes to leave the timeshare owners in the dark.
> If I were a fly on the wall....I bet all 12 of the whole owners knew in advance what was going to happen.
> :annoyed:



For those who don't know, Joanne is a HGVC resale agent for Sanibel, Marco, Fort Myers Beach and Hutchinson Island. 
Here's an old post regarding Joanne - http://www.tugbbs.com/forums/showpost.php?p=218998&postcount=1


----------



## Talent312 (Apr 21, 2009)

mlsmn said:


> I can't wait to get this BOD out.



It'll take some very motivated TS owners to overcome the inertia that typifies most OA's.  From what I've seen, most TS owners don't have the time or inclination to become involved.

In my neightborhood, residents do little more than complain about the BOD's.  The "Grounds Director" seat wasn't filled at the last election, 'cuz no one volunteered to serve, and I not proud to say, neither did I.


----------



## Twinkstarr (Apr 22, 2009)

Talent312 said:


> It'll take some very motivated TS owners to overcome the inertia that typifies most OA's.  From what I've seen, most TS owners don't have the time or inclination to become involved.
> 
> In my neightborhood, residents do little more than complain about the BOD's.  The "Grounds Director" seat wasn't filled at the last election, 'cuz no one volunteered to serve, and I not proud to say, neither did I.



Sounds like my sister's group in her neighborhood. She's got a meeting tonight of her BOD, they are more concerned about unauthorized statues in the flower beds than getting some of the dead beats to pay their dues on time. 

It will be interesting to see the turn out, we have an over/under bet going. Loser has to buy dessert at the local ice cream place.


----------



## kter (Apr 30, 2009)

*Shell Island HGVC has value*

Joan- I am glad you are stating your views as an owner, since you are or were on site you have a good idea of what was going on.  The current board has run amuck.  I purchased at Shell Island with your assistance several years ago because it was a HGVC managed resort.  I feel there is value in having the HGVC management. 

New owners web site:
http://shellislandbeachclub.ning.com



JPETERS said:


> As an owner and working at Shell Island Beach Club, I can honestly say this board did not act on behalf of the timeshare owners.  Actions speak louder then words.
> The board made up of whole owners had an agenda, and with the help of the attorneys, created loop holes to leave the timeshare owners in the dark.
> If I were a fly on the wall....I bet all 12 of the whole owners knew in advance what was going to happen.
> :annoyed:


----------



## JPETERS (May 6, 2009)

Thanks KTER.  I would like to urge any Shell Island Owner to join the Web site that you mentioned.

The owners are really doing a good job coming together to get this board removed.  It has become very clear looking back that this was planned with the help of an expensive attorney.


----------

