# BIG TROUBLE at Morritts Tortuga & Grand



## Caladezi

The following message is posted on the Morritts owners site which outlines some of the reasons for the troubles at the resort.  In a nutshell, what it says is that the develover,  David Morritt, has not paid his maintenance fees or S.A. on the units he owns for a couple of years and is in debt to the associations and has put the resort in a critical position.  Read the post .                                                                                                                                                                                                                                                                                                       Trouble in Paradise   

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This is difficult, but necessary. Difficult because of the fear and anxiety it might cause. Necessary, however, because it is only fair that Morritt’s owners and those who visit frequently know what is going on. 

In April, as a routine matter, I requested copies of the 2008 audits for the Grand and Tortuga Club associations, which any of us can do as owners. I really didn’t think much of it other than I like to have a copy of this information. But before it came, I received a call from one of our owner reps; they had decided they would contact anyone requesting the audits before sending them out. 

Before even seeing the audits, I was asked not to report about them on the forum as our owner reps sought to work through the problems those audits spelled out. I agreed to do this for a period of time, provided I at least be given some background on the situation and as long as it was deemed by them that progress was being made. The ultimate hope at the time was that David Morritt would agree to sell the resort to the associations (more on that later) and that an announcement would be forthcoming from Morritt’s management. 

That was three months ago, and obviously this post is going up because nothing has been resolved. 

The audits speak for themselves. As an owner at both resorts, I received the financial statements for 2008, both of which have a cover page explaining in clear detail that the developer owes the associations a hefty sum. 

The total at the Tortuga Club was $1.8-million. The total at the Grand was $975,000. Our owner reps did not learn about this until the January 2009 board meeting and did not see the audits until March of this year. As far as I know, no payments have been made to either of the associations for 2009. 

Is there a repayment plan in place? How long will it take? Will it mean that the 9,000 some owners will have to pay more in fees to make up for the shortfall? 

I do not know how these debts accrued specifically. Is it due to unpaid maintenance fees on the unsold inventory? According to the audit, the developer owned 496.5 weeks at the Grand as of Dec. 31 and 2,112 at the Tortuga Club. Is it because he borrowed money from the associations – a common practice according to previous audits – and didn’t repay it yet? And what does it say about this year? And next? 

I should add that I made this post available to our owner reps. After our initial conversation back in April, they have been unable to say much due to Cayman confidentiality laws as they have attempted to work through this very serious situation. And yet, if the developer had paid what he owed or worked out a viable plan for repayment, I feel confident I would have been informed so as not to have gone public. 

Needless to say, this is a huge shortfall for our associations. From what I was told at the time, our owner reps repeatedly asked for a re-payment plan, putting forth deadlines that were postponed or ignored. Finally, they came up with a plan to buy the resort from the developer. That is complicated, and they could not share details with me. But they put forth parameters of a deal that would take over ownership of the resort from David Morritt because there is concern he will be unable to repay the associations. If that money is not received, the resort would face the possibility of closing, because it is difficult to believe that it can operate with such a shortfall. The feeling was, I believe, better to come up with the money and run it ourselves than have to come up with it to keep him in charge. Harsh, but so be it. 

Recently our owner reps were required to sign a non-disclosure agreement preventing them from discussing details of the possible purchase of the resort and also to approve an announcement to the owners. There has been no confirmation that David Morritt has done the same. He appears to be holding out hope of keeping the resort running. While I admire his optimism, realism is another matter. Are there even enough time share sales in a year to cover his debt to us for 2008? We all know the state of the economy and the timeshare industry. What level of sales success would be necessary? Don’t we deserve answers to these questions before we pay another maintenance fee or have friends and family buy another week of ownership? 

And all of this sort of makes the idea of rebuilding the other Seaside building seem rather remote, doesn’t it? Meanwhile, according to the audit, there are 1,612 weeks in Tortuga that are not operational (the unbuilt Seaside) and yet they say it is sold out. That means all of those people are paying a maintenance fee for a building that doesn’t exist. 

Look at it this way: through our own maintenance fees, we are not only subsidizing the developer’s ability to live on property, but we are being put in the position of having to make up for the funds he has not paid. Either that, or there will need to be some serious cutbacks in amenities in order to function without such a huge part of our budget. Remember, if you or I are late with our maintenance fee payments, we get charged a fee and eventually repossession proceedings begin. The developer, meanwhile, gets to live on property with, so far, no repercussions and, apparently some 18 months later, no viable repayment plan. 
Now maybe you can see why Morritt’s has resorted to some of the things that have been complained about on this forum, such as the $2 drink coupons at the welcome party; or the hard-line on owner 10 percent discounts and the deadline to use certificates or maybe why the grounds don’t look as nice as you might have recalled. Remember last year after Hurricane Paloma? Someone wondered why they were going through the laborious task of having Morritt’s maintenance staff shovel sand out of the Grand pool without draining it, why they didn’t hire someone to come in and more quickly take care of the matter. Most likely, they couldn’t afford it. Frankly, it is by some miracle that the place remains open. They tell us all the time how tight our budget is, and yet well into our second year, we are functioning with approximately 20 percent less than what was budgeted. 

All of this made the annual owner’s meeting in October and the subsequent approval of the 2009 budget a farce, because unbeknownst to any of us at the time, including our owner reps, the developer had not paid his 2008 fees/assessments/loans. As an aside, and with hindsight, I am very distressed about the huge assessment Grand owners got in 2008. At the time, it was sold to us under the guise that this would be a hardship on the developer because he would be responsible for the same assessment on all of his unsold weeks. All the while, the developer sat in on meetings to approve this hefty assessment knowing he probably would not be able to pay it himself. 

I recognize that this post can create potential problems, which is why I have not said anything since I became aware of the information in the audits. But I understand why it was important to keep this quiet for the last several months. Lots of stuff going on that the owner reps wanted to work through without causing unnecessary fear. It made sense to see if things could be worked out. 

But an offer to buy the resort from the developer has been on the table since April, and as of this writing, after first saying he would do it, he has evidently decided to stick it out. So it is only fair that those who frequent this forum be made aware of the dire circumstances. 
Now, of course, I know what is coming. The typical “shoot the messenger’’ response that has become all too prevalent in negative matters that pertain to Morritt’s. I will likely be attacked for bringing this out and “hurting’’ the resort. My answer is this: the resort has been hurting for a long time and the people who support it deserve to know. It was made very, very clear in the audits – a separate letter on the cover page for each resort spelled out the problem in great detail. I simply started pushing for answers, pushing for full disclosure. I agreed to wait while our owner reps hoped this could be resolved in private without creating unnecessary issues. At this time, unless the developer has written a check for several million dollars, that does not appear to be the case. 

I would also like to add that our owner reps have been faced with far more than they signed up for. This has become akin to a full-time job. They – along with Dutch Hoffmann, the resort general manager – have been trying to figure out ways to stretch our dollars as best as possible. They have had to deal with numerous legal and government issues when it comes to the idea of trying to buy the resort. And again, they are going to be limited in what they can say, but obviously it appears that we are at a crucial time right now. 

Maybe Mr. Morritt would like to hear from some of his 10,000 “friends’’ on how they feel about what is happening.


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## Htoo0

Thanks for stepping up. After about getting my head handed to me last time I has debating on posting the news in a *public* forum.


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## Caladezi

This news has to get out.  Not only to the owners involved but to anyone who might consider buying there should wait till this is settled.  I love the resort and I am confident that once David is out of the picture, it will be what we remember it as it once was.  Perhaps a new name, but the same place.


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## ecwinch

Wow. 

I am not an owner there, but have a keen interest in timeshare governance and owner rights. I was planning on an exchange to Morritt's in the future.

I applaud you for taking this step. I understand that some people may take you to task for surfacing this issue on TUG, but I think those people are short-sighted. 

I for one, would have a significant trust issue if I had just bought into the resort, and then "after-the-fact" learned of the problem. 

When you say "owners rep" I assume you mean something comparable to a trustee or director on the resort's governing body? Well, it sounds like they are trying to make the best of a bad situation. Hopefully they have a contingency plan if the developer ends up sliding into bankruptcy with his decision to "stick" it out.

And I fear we will start to see even more of these types of situations in the future. Given the economic cycle, and owners walking away from their obligations, I think it just places more pressure on those developers that are heavily leveraged. And naturally it is the small independent resorts that still have large developer inventories that will bear the worst of it.

This is the fourth resort like this that I am aware of.


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## Carolinian

Who controls the board?  If owners were in control, they could just foreclose on the developer.  I assume the owners do not control the board, so the issue is what can be done to achieve owner control?


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## judyjht

Does any of this affect people trading into the Grand??  I am due to go there next March.


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## GrayFal

judyjht said:


> Does any of this affect people trading into the Grand??  I am due to go there next March.


Take trip insurance to cover your exchange costs and airfare together...and then pray you don't have to use it.

It is very unfortunate to read this...the board is developer (family) controlled.
Will follow to see what our options are for owners.

It also explains why in a 3 year period MFs went for $800 in 2007 to $975 :annoyed:  in 2009 (with a special assessment in 2008 of $285 for a refurbishment which WAS done) - over 20% - that should cover David's missing fees.


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## caddie

judyjht said:


> Does any of this affect people trading into the Grand??  I am due to go there next March.



It affects you if the resort is closed. .. or if it doesn't offer the amenities you are used to ... or if it is in poor condition. . . or any of a bunch of things that can happen if the associations are unable to pay their bills.


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## zzz_laura_zzz

*Thanks for telling us the truth*

Caladezi,

I am very grateful for all the time and effort you have put into this research and posting it here. Thank you for spelling it all out. 

I need to ask a very basic question; please forgive my ignorance.

Who holds David Morritt and the family run board accountable? Are there no laws governing this? I am not sure where the jurisdiction would be? Normally I think it's where the crime was committed.

I am just a normal hard-working person with a very full life who spends 8+ hrs /day in a cubicle, then it's off to a very packed schedule with family & ministry events - I would not have learned of these issues had it not been for you  (& even today I just stumbled over this post). So again thank you for all your time/effort you are putting into this.

zzz_laura_zzz


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## Topcat

Caladezi,

thanks for posting that here.  My company blocks the owners forum so I don't get on it much at home.
This information certainly explains some of the things I saw when I was there from July 11 to 25.  I will be checking the other site tonight to learn more if possible.


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## Tia

Regular Owners need to unite and get themselves on the HOA. Your lucky to find out sooner then later to put a stop to this.

 This sort of smells like what went on at Bluebeards Castle in STT. Our original developer sold out and it just got harder to follow the $ trail. The next developers all made false promises continuing business as usual. Our original developer sold to Kosmas, then came Equivest , then FF aka Wyndham. The same year Wyndham bought Equivest the ts Owners coordinated themselves and took over the HOA's. 

It takes knowledgeable owners working together to do what must be done.


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## Htoo0

I may not know what I'm talking about but I think the developer has owned    the most units so he controls the owner's association by default. I am sure the purchase agreement states all disputes must be settled in a Cayman court of law. (Although I've never understood with that being the case how they can pursue legal action in the U.S. to collect M.F.'s, etc.) What does it mean? Only time will tell. Seaside owners likely won't be seeing the 2nd building completed any time soon so it will probably be very difficult to get what we paid for. (I've heard they offer a poolside unit to replace it which is/was strictly forbidden by the terms of the purchase agreement.) This is assuming the resort doesn't collapse. Chances are (IMHO and I've suspected this for some time) we'll be seeing greater increases in M.F.'s, and Special Assessments. But again, these are just my thoughts and may have no bearing on reality.


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## Caladezi

The BOD consists of 5 members for each of the Tortuga Club and the Grand.  That means two owners reps elected by the owners (us) and two members appointed by the developer.  The fifth member is the developer.  So guess who controls the BOD.  If one of the members appointed by the developer strays off course, they can be fired on the spot and replaced with someone more in line with the developers wishes.   This is a very difficult situation to deal with and when faced with a situation like we now find ourselves in, calls for extreme action from all of the owners.  Can the resort survive?  I really don't know, but I hope so.  My hope is that the developer will realize that the best thing for everyone will be to just sell out to the associations and get out gracefully.


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## caribbean

Frank-

Come on now, do you honestly think this just started? Carol and I ran the numbers together back in 2005 and tried our best to warn everyone. We were convinced way back then that David had NEVER paid any MF prior to the storm. It smelled just like the Bluebeard's Castle fiasco. But all of the "Happy Crowd" put their heads in the sand and refused to help as we tried to organize a group to hire a lawyer. For the sake of the TS owners I sure hope this doesn't blow up, but I can't say I am the least bit surprised. Frankly, I thought it would have happened before now. Guess someone on the board wised up and hired a honest auditor, not someone that was in the back pocket to a certain former employee. 

Good luck. And please keep us informed over here. I suggest talking to Bob Harig.


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## tmbrit

Patty,   we all agree it started way back even before Ivan (04)  and we did try and get Bob Harig on the board.  We did finally get 2 wonderful owners on the board and yes thats why we finally are getting somewhere.  Yes we had a good auditor finally.  But when the votes are 3 to 2 always its hard.  We have come a long way and are still working to save our resort.


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## ecwinch

It is a long shot, but I would press the conflict of interest issue angle. 

Also is the HOA (or whatever it is called) a legal entity? 

Is there a members (shareholders) rights angle that can worked in that regard?


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## caddie

caribbean said:


> Frank-
> 
> Come on now, do you honestly think this just started? Carol and I ran the numbers together back in 2005 and tried our best to warn everyone. We were convinced way back then that David had NEVER paid any MF prior to the storm. It smelled just like the Bluebeard's Castle fiasco. But all of the "Happy Crowd" put their heads in the sand and refused to help as we tried to organize a group to hire a lawyer. For the sake of the TS owners I sure hope this doesn't blow up, but I can't say I am the least bit surprised. Frankly, I thought it would have happened before now. Guess someone on the board wised up and hired a honest auditor, not someone that was in the back pocket to a certain former employee.
> 
> Good luck. And please keep us informed over here. I suggest talking to Bob Harig.




Am certainly not defending the organization, as there is plenty of reason to be angry. But there was never any evidence in the past that the developer didn't pay his maintenance fees. Nobody hired a dishonest auditor. Why would any auditor want to risk their reputation and license to stick up for this guy? That is a reckless claim you have made there.

The fact is the place was flush with cash, the developer actually propped up the associations to keep the maintenance fees artifically low so he could sell more timeshare, there was loose budgeting and everyone was happy and hardly paid attention. . . It has only been since Ivan that these problems have surfaced, and only in 2008 that we learn there is a big deficit due to the developer not paying his share. The focus needs to be on now and what is wrong -- a huge association shortfall caused by the developer -- not on what somebody perceived to be a problem before we really had problems.


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## Caladezi

caddie said:


> Am certainly not defending the organization, as there is plenty of reason to be angry. But there was never any evidence in the past that the developer didn't pay his maintenance fees. Nobody hired a dishonest auditor. Why would any auditor want to risk their reputation and license to stick up for this guy? That is a reckless claim you have made there.
> 
> The fact is the place was flush with cash, the developer actually propped up the associations to keep the maintenance fees artifically low so he could sell more timeshare, there was loose budgeting and everyone was happy and hardly paid attention. . . It has only been since Ivan that these problems have surfaced, and only in 2008 that we learn there is a big deficit due to the developer not paying his share. The focus needs to be on now and what is wrong -- a huge association shortfall caused by the developer -- not on what somebody perceived to be a problem before we really had problems.




Caddie, you are correct in your assessment.  I have been very involved in what has happened since Ivan as well as before.  I have no reason to think that the developer did not pay what he owed back in the good times.  When Ivan hit the resort there was a huge difference of opinion on what should have been repaired and what should be replaced.  The long fight with the insurance company took it's toll on the developers resources.  One new building was built with borrowed money but the second, larger, seaside building was not.  The developer continued to smooth everything over and tell all of his "loyal friends" that all was well in paradise.  All the while he was "borrowing" association money and not paying his MF's or SA's on his inventory.  Since the BOD is controled by the developer he also controled the quality and quanity of information made available so everything was covered up and he acted as though he was Mr. good guy.  The economy has continued to get worse and sales have slumped which meant less income for the developer and more demand for money with increased MF's.  

This all came to light when a few of the owners requested copies of the audit a few months ago.  I do not believe that our elected owners reps (a minority on the BOD) had any knowledge of this before seeing the audit.  The developer now has written a letter saying he plan to present a repayment plan in August to the BOD.  What a joke---HE CONTROLS THE BOD.  Many of us feel that the only repayment acceptable is FULL AND IMMEDIATE.  Can he afford to do that?  Time will tell.  Very soon the 2010 fees will be due.  In the USA people are sent to jail for this type of behavior.  Should he sell the resort and get out of his problem?---I think so.


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## nerodog

*trip planned for Nov 09*

Wow, this is something else ! Have others been there recently on an exchange ? I am currently shopping around for airfare.... will I still have a place to stay ?? What's the latest for those who have stayed in the last month or so ?? Many thanks.


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## Rod in Louisiana

We no longer own at Morritt's, but we do have many friends who still own there, so we're very interested in developments at the resort.

I'm in total agreement with Caladezi that the information in his post needed to be made public.  However, I do have a possible issue with copying a post verbatim from the Owner's Section of the Morritt Owners Forum, which is supposed to confidential to Morritt owners only, to a public forum.  If the post was copied here with the permission of the author, then good for Caladezi.  If it was copied here without the permission of the author, then shame on him.  If the latter case is true, the information could have been reproduced and rephrased without copying the entire post.

Regarding the owners controlling the board(s), that will never happen.  There are five representatives on each board, and only two of these are elected by the owners.  The bylaws of each association (Morritt's Tortuga Club and Morritt's Grand) stipulate that the other three members of each board will be appointed by the "Developer" (David Morritt).  Get the picture?

I sincerely hope that this mess is eventually resolved to the benefit of the owners.  It was once and could again be a great resort.  The owners deserve better than this.


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## BocaBum99

Wow, this is a huge deal.  Hopefully the owners can get control of the resort and HOA to prevent insolvency.  I expect a lot more of this to happen to independent resorts that have an uncooperative developer who is in trouble due to a very bad economy.  Or, resorts that have owners defaulting on maintenance fee payments.

Another option for resorts is to work with a resort group that offers services to those resorts to help them operate.  Bluegreen, for instance, recently announced a program where they operate the resorts and offer sales and marketing support to move unsold units.  They use the resort developer business model.  But, the resort gains strength by becoming part of the larger resort group.  I think that independent resorts may have to resort to this model to survive.


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## shorts

nerodog said:


> Wow, this is something else ! Have others been there recently on an exchange ? I am currently shopping around for airfare.... will I still have a place to stay ?? What's the latest for those who have stayed in the last month or so ?? Many thanks.



We were just at Morritts 2 weeks ago.  Everything was in good shape maintenance wise, all activities were as scheduled and the restraurant specials at the resort were as good as ever!  

People should not hesitate to make exchanges or rent weeks to visit Morritt's. The actual resort is still running well and is a terrific place to vacation. :whoopie: 

As an owner, I am following the situation closely and hope that everything gets resolved without costing the owners too much.  The developer has stated that he has a repayment plan to present at the August board meeting, so I'm going to hope for the best.


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## Caladezi

Rod in Louisiana said:


> .
> 
> I'm in total agreement with Caladezi that the information in his post needed to be made public.  However, I do have a possible issue with copying a post verbatim from the Owner's Section of the Morritt Owners Forum, which is supposed to confidential to Morritt owners only, to a public forum.  If the post was copied here with the permission of the author, then good for Caladezi.  If it was copied here without the permission of the author, then shame on him.  If the latter case is true, the information could have been reproduced and rephrased without copying the entire post.
> 
> .



Rod:  Just to clear up your point.  This post was copied with the full permission of the author.  The only thing that I did was omit the name of the poster which was done at the posters request.  I do agree that nothing on a confidential forum should be copied and pasted unless it is done with the consent of the author.  I do have one question for you though.  Since you are no longer an owner, what are you doing on an owners only forum?  It would seem that if you are so concerned about ethics you would have yourself removed from that forum since you no longer have the right to be there.  Just a thought you might ponder.


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## ralphd

Caladezi said:


> Rod:  Just to clear up your point.  This post was copied with the full permission of the author.  The only thing that I did was omit the name of the poster which was done at the posters request.  I do agree that nothing on a confidential forum should be copied and pasted unless it is done with the consent of the author.  I do have one question for you though.  Since you are no longer an owner, what are you doing on an owners only forum?  It would seem that if you are so concerned about ethics you would have yourself removed from that forum since you no longer have the right to be there.  Just a thought you might ponder.



To clarify:

Both of the above two gentlemen have been around Morritts and its forums for many years and both have been a asset to the resort and contributed to the owners forums (there have been 2 previous forums). 
As Patty said above, the problems have been around for years. The current situation is not good and the owners will have to wait until the BoD meeting to see if the owner lives up to his obligations.
I do not think the BoD should have continued to withhold information from the owners after they were aware of the problem. They are responsible to the owners that elected them and not to management. By continuing to withhold information, they became part of the problem and not part of the solution. The intention was good, but ..........................
As we keep hearing from Washington - transparency.

The owners (current and past) do not need to attack other owners.


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## Rod in Louisiana

Caladezi said:


> Rod: Just to clear up your point. This post was copied with the full permission of the author. The only thing that I did was omit the name of the poster which was done at the posters request. I do agree that nothing on a confidential forum should be copied and pasted unless it is done with the consent of the author. I do have one question for you though. Since you are no longer an owner, what are you doing on an owners only forum? It would seem that if you are so concerned about ethics you would have yourself removed from that forum since you no longer have the right to be there. Just a thought you might ponder.


 
Frank, if you'll go back and read my post again, you'll see that I said I only had an issue if the post had been copied verbatim without the permission of the author. You clarified that with your response. I also paid you a compliment when I said that if you had posted with the permission of the author, you had done a good thing.

Regarding my posting on the Morritt Owners Forum, immediately upon our becoming non-owners, I notified the moderator that we were no longer owners at Morritt's and I posted the same information on the Owners Forum. My access to the forum wasn't terminated, so I continued to read about events at the resort. Should I have continued to notify the moderator that I still had access to the Owners Forum? Perhaps. How many times am I required to do that? I suppose I rationalized that I wasn't harming anyone if I confined my activities to reading and if I avoided posting. I did post on that forum today, realizing that my access would probably be terminated immediately. As you know, that post was to inform another owner that, contrary to his belief, the information had indeed been posted on a public forum. I fully expected that post to result in the termination of my access privileges but, as you noted in your follow-on post, some information just needs to be made available.

Over the years, you and I have been on opposite sides on some issues and on the same side on others. I've always respected your views, even when they differed with mine. I regret that you took offense to my post because it was not my intent for the post to be interpreted as a personal attack on you.


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## Caladezi

Rod in Louisiana said:


> Frank, if you'll go back and read my post again, you'll see that I said I only had an issue if the post had been copied verbatim without the permission of the author. You clarified that with your response. I also paid you a compliment when I said that if you had posted with the permission of the author, you had done a good thing.
> 
> Regarding my posting on the Morritt Owners Forum, immediately upon our becoming non-owners, I notified the moderator that we were no longer owners at Morritt's and I posted the same information on the Owners Forum. My access to the forum wasn't terminated, so I continued to read about events at the resort. Should I have continued to notify the moderator that I still had access to the Owners Forum? Perhaps. How many times am I required to do that? I suppose I rationalized that I wasn't harming anyone if I confined my activities to reading and if I avoided posting. I did post on that forum today, realizing that my access would probably be terminated immediately. As you know, that post was to inform another owner that, contrary to his belief, the information had indeed been posted on a public forum. I fully expected that post to result in the termination of my access privileges but, as you noted in your follow-on post, some information just needs to be made available.
> 
> Over the years, you and I have been on opposite sides on some issues and on the same side on others. I've always respected your views, even when they differed with mine. I regret that you took offense to my post because it was not my intent for the post to be interpreted as a personal attack on you.



  Rod, this is going to be a long and hard fight for the Morritts owners.  Yes, we have been through many issues and I too have always respected your views.  I have always considered you to be a very intelligent and informed person.  Your opion is important and should be included in any decisions made by anyone who might consider a purchase at Morritts.  The fact that you no longer own at Morritts will by default cause you to be removed from that forum.  This will be our loss, not yours.  I hope that through TUG you will continue to be involved and help with our cause in  any way that you can.


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## asroberts

*cheap resale*

We are thinking of buying a resale unit..We were told that the MF was $750, now I read $975!!! Is that true?  What about 2010?  What would happen if the property goes under?
We were there in June and enjoyed the resort alot.
What do you guys think? 
Angela


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## jadejar

Angela,

The maintenance fees for a 1-bedroom unit are $750.  They are $975 for a 2-bedroom unit.  That is for 2009.  We don't know yet what they might be for 2010 if there is an increase.


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## caddie

asroberts said:


> We are thinking of buying a resale unit..We were told that the MF was $750, now I read $975!!! Is that true?  What about 2010?  What would happen if the property goes under?
> We were there in June and enjoyed the resort alot.
> What do you guys think?
> Angela



These are "right to use'' contracts at Morritt's, not deeds. So it is unclear to me what would happen if they "went under'' and the bank took it over. Does anybody really know? Do our contracts have to be honored by the bank or a future owner?


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## Jamerican71

This is worrisome for my Nov 2009 exchange to Morritts.  Will we be okay for our vacation?  Why does the Morritt's board have a separate section for owners.  This was done shortly after Ivan but it doesn't make sense to me.  While I feel for the owners there is another interested group of exchangers who also want the information.  In all the negative items I've read about Morritts, it seems that David's name is always involved.  Are there any viable solutions to correct this huge budget shortfall?


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## Htoo0

I believe the reason for a separate area for 'owners' on the *un-official* morritts site (morritts closed it's forum so this is an owner's site) is because some owners felt discussions of morritts problems should be kept out of public view. However, please let me stress this is only MY HUMBLE OPINION as to the the reason for the "owner's only" section. You would have to ask the site's creator for a definitive answer to your question. I personally would not be concerned about your exchange. David's name is always involved because he is morritts. According to the latest news I've heard he has a repayment plan in place. I believe you can go to wwwdotmorrittsdotcom and click on 'members services' to read the letter. Hope this helps.


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## caddie

He hardly has a replayment plan in place. He SAYS he will announce one at an Aug. 24 board meeting. That is a big difference. Why not announce it now? They've been asking him for a repayment plan since January, according to what we've read on the forum. He owes nearly $3-million. I wouldn't be so sure that the November trip is safe. It probably is, but who knows? That is the whole point of all this. Associations that operate (combined) on about $8-million a year cannot function forever without $3-million of it.


----------



## Caladezi

caddie said:


> He hardly has a replayment plan in place. He SAYS he will announce one at an Aug. 24 board meeting. That is a big difference. Why not announce it now? They've been asking him for a repayment plan since January, according to what we've read on the forum. He owes nearly $3-million. I wouldn't be so sure that the November trip is safe. It probably is, but who knows? That is the whole point of all this. Associations that operate (combined) on about $8-million a year cannot function forever without $3-million of it.



That debt could be approaching the $4 million dollar mark soon.  All that the audit covered was 2008.  Is there any reason to think that he has paid for 2009--I think not.  Soon he will owe 2010 fees and --well, you get the idea.  What the associations need is immediate payment in full.  A repayment plan in large sums could only work if all other fees were kept current and no other monies were "borrowed" from association funds.  The speculation is that the money just isn't there to do this.  How long can the resort survive under these circumstances?  I can't answer that and I imagine that there are only a few who can, but my best guess would be not very long.   Unless this debt is repaid and the developer is able to keep current, the others would have to face huge MF increases and perhaps another SA.  It that happens they won't stand for it and will walk.  That makes the problem even worse.  So, how safe is a November week?  Probably OK as things stand since progress moves slowly in Grand Cayman.


----------



## Jamerican71

I hope things work out for everybody involved. 

So, at what point do I put other plans in place....how does the process even work?   Some have said don't worry and I'm usually the glass if half full but this budget shortfall is gong to be difficult to close.


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## Htoo0

Sorry if my post(s) sounds too rosy. Anyone who knows me should know better. The question was about a November stay. My *guess* is the resort will be OK through 2009 but as far as long term health, that is an entirely different matter. I certainly am not claiming, "Have no fear, everything's going to be alright."


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## Caladezi

Jamerican71 said:


> I hope things work out for everybody involved.
> 
> So, at what point do I put other plans in place....how does the process even work?   Some have said don't worry and I'm usually the glass if half full but this budget shortfall is gong to be difficult to close.



That decision is one that only you and those going with you can make.  If it were me, I wouldn't change my plans.  There is some risk but I don't think that it will be a problem for a November trip.  Just my opinion.

One thing that I would advise you however, is that if you do go don't fall for a sales pitch!!  Wait awhile for that.


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## pharmlivin

*Maybe the Reef Resort will step in...*

make one big fabulous resort...just a wild thought.


----------



## billinwilliamston

Htoo0 said:


> I believe the reason for a separate area for 'owners' on the *un-official* morritts site (morritts closed it's forum so this is an owner's site) is because some owners felt discussions of morritts problems should be kept out of public view. However, please let me stress this is only MY HUMBLE OPINION as to the the reason for the "owner's only" section. You would have to ask the site's creator for a definitive answer to your question. I personally would not be concerned about your exchange. David's name is always involved because he is morritts. According to the latest news I've heard he has a repayment plan in place. I believe you can go to wwwdotmorrittsdotcom and click on 'members services' to read the letter. Hope this helps.


If I recall correctly, and I could be wrong, the owners only section was created at the "request" of individuals of a litigious nature.


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## billinwilliamston

caddie said:


> Am certainly not defending the organization, as there is plenty of reason to be angry. But there was never any evidence in the past that the developer didn't pay his maintenance fees. Nobody hired a dishonest auditor. Why would any auditor want to risk their reputation and license to stick up for this guy? That is a reckless claim you have made there.
> 
> The fact is the place was flush with cash, the developer actually propped up the associations to keep the maintenance fees artifically low so he could sell more timeshare, there was loose budgeting and everyone was happy and hardly paid attention. . . It has only been since Ivan that these problems have surfaced, and only in 2008 that we learn there is a big deficit due to the developer not paying his share. The focus needs to be on now and what is wrong -- a huge association shortfall caused by the developer -- not on what somebody perceived to be a problem before we really had problems.



I'm not so sure about the developer propping up the associations.  Yes, there were developer subsidies in the past, but how often where they more than the "management fee" and other moneys that the developer collected?  In other words, if you take a nickel from me in January and give me back a penny in December, are you really subsidizing me?


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## bdvorachek

*As an auditor....*

I wouldn't get too worked up about this announcement; it is common place in business for this to occur and the board will work out a suitable repayment plan for him.  People owe sums of money in business all the time; the audit is required to report but did they issue a going concern opinion on this issue or did this just present the facts?  If there is truly financial concern that the resort was going to run out of cash and shut down a going concern report would have been issued and referenced in the audit letter.  If somebody could be kind enough to send me a copy of the audit...I would appreciate it.

I also own one week there and the very thing that was a draw to me on the resale market was the maintenance fees.  While people think $975 is high, please try to find a comparable place to stay for less than $250 a night on the island.  I have tried after staying there with my company a couple years back...still a deal at $975....


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## ralphd

bdvorachek said:


> I wouldn't get too worked up about this announcement; it is common place in business for this to occur and the board will work out a suitable repayment plan for him.  People owe sums of money in business all the time; the audit is required to report but did they issue a going concern opinion on this issue or did this just present the facts?  If there is truly financial concern that the resort was going to run out of cash and shut down a going concern report would have been issued and referenced in the audit letter.  If somebody could be kind enough to send me a copy of the audit...I would appreciate it.
> 
> I also own one week there and the very thing that was a draw to me on the resale market was the maintenance fees.  While people think $975 is high, please try to find a comparable place to stay for less than $250 a night on the island.  I have tried after staying there with my company a couple years back...still a deal at $975....



The annual maintenance fee is not the subject of this thread.

Do you have information which the owners have not seen?

Are you employed by, friend of or related to the subject of the thread?


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## bdvorachek

*Not related...*

No I am not related nor have any other involvement with Morritts other than I own one week there.  I am, however, a CPA with 12 years of audit experience and know that things are always as bad as they appear when it comes to auditor's notes in the statements.  $3.0 million of debt, while I am sure meets disclosure requirements, would prompt a going concern by auditors if the issues were as major as people posting the demise of the resort.  Maybe I am a glass half full kind of person but I would wait on calling on the prophets of doom...


----------



## caddie

bdvorachek said:


> I wouldn't get too worked up about this announcement; it is common place in business for this to occur and the board will work out a suitable repayment plan for him.  People owe sums of money in business all the time; the audit is required to report but did they issue a going concern opinion on this issue or did this just present the facts?  If there is truly financial concern that the resort was going to run out of cash and shut down a going concern report would have been issued and referenced in the audit letter.  If somebody could be kind enough to send me a copy of the audit...I would appreciate it.
> 
> I also own one week there and the very thing that was a draw to me on the resale market was the maintenance fees.  While people think $975 is high, please try to find a comparable place to stay for less than $250 a night on the island.  I have tried after staying there with my company a couple years back...still a deal at $975....



Thanks very much for your input, especially coming from a person familiar with audits. But have you seen it? It points out quite bluntly that there truly is a financial concern. The board has been trying to work out a re-payment plan since Janaury with no success. It wasn't until this information was made public last week that the developer put forth that he will be announcing a re-payment plan. And while people may owe sums of money in business all the time, they typically don't keep it from the very people they owe. I wish I was able to have your optimism.


----------



## ralphd

bdvorachek said:


> No I am not related nor have any other involvement with Morritts other than I own one week there.  I am, however, a CPA with 12 years of audit experience and know that things are always as bad as they appear when it comes to auditor's notes in the statements.  $3.0 million of debt, while I am sure meets disclosure requirements, would prompt a going concern by auditors if the issues were as major as people posting the demise of the resort.  Maybe I am a glass half full kind of person but I would wait on calling on the prophets of doom...



Just like AIG, BoA, Citibank, Region Bank, GM, Chrysler and several other banks/companies.


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## Carolinian

In timeshare budgets there is one place that management / HOA's seem to invariably go to finance shortfalls, and that is the reserves.  The resort can keep going in the short run by failing to maintain reserves, but that will catch up with it in the end when renovations are due and there is no money for it, so they have to do a big SA.  I suspect this may be what you will find is going on at Morritts and if so it is a ticking time bomb.

You need to get the HOA out of the hands of the developer, and you probably need a local attorney to advise owners if and how this may be possible under local law.  An indepedent HOA could then sue the developer for the money owed, and probably end up with ownership as a result.


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## Htoo0

Well now, if morritts ever had a reserve, I would be surprised. People should keep in mind we're still missing an entire building from Ivan. As far as I know OF studio 'owners' haven't had their paid for units since 2005. I'm not sure what they are being given in exchange but I doubt it's Ocean Front.


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## Caladezi

The Tortuga Club had a big SA about a year or two ago which we were told was for renovations to the pool buildings and new furniture.  The SA was paid but the repairs and replacement is very far from done.  A very few of the units had some very minor work but nothing was really accomplished.  I can guess where the money went.  The Grand owners also had a SA to "build up their reserves"  this SA was paid by the owners except the developer failed to pay his.  Perhaps he thought that in this case it was a reverse flow of cash.  Someone who has done this type of thing should be in jail, not pretending to figure out a repayment plan.


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## Topcat

First I own 2 weeks at the Grand and can not really speak to the other buildings.

We were there from July 11 to 25.  I was really disapointed in the appearance and upkeep of the unit.  Tiles had been cracked and corners broken off and instead of fixing it correctly, they had just filled in with caulk.  There was 1 area on the brickwalkway around the Grand pool (side that is closest to the ocean) where the concrete retaining ring for the pavers was broken and missing, the sand had washed out from under the pavers and they had settled for a large area to the extent you had to be careful walking in the area.  

One thing I found real disturbing (maybe because I am a design engineer as my background) was the lack of building plans for the Grand since they are not that old.  We had water puddling on the floor by the front door the entire stay (between 1/8 and 1/4 inch deep for the entire hallway to the point housekeeping placed 4 towels for us to walk on).  They never resolved the problem.  First the said they had no plans so did not know what piping was leaking, maybe someone overfilled a tub above us?  Then the response was it is just condensation and to not run the AC!!   It also happened in 2007 and was found to be a cracked pipe in the unit above us then.

The point is if the developer does not pay his share immediately, the facilities are going to go to s**t real fast.  They have already started to decay due to lack of proper maintenance.  No way would I consider them as being near the level they were in 2004 when we purchased and I would be real suprised if RCI keeps them at the level they have been considered for the last couple of years.  Since his share is about a third of the entire budget, how can a budget that gets the grounds to the level expected be developed or even one to maintain them at their currently lower level?  If he has not paid for 2008 who honestly thinks he has paid for 2009?  Means the amount presented in the audit is really about half of what he owes.  AND will he pay his 2010 fees that are coming due in January?  What about the units that he took back from owners in 2008 and 2009 for not paying fees?


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## caribbean

A 2BR Morritts Grand just sold on eBay for $997. WOW!!! I saw one go for about $3000 about 6 months ago.
I sold mine for $20K in 2005 right after the resort announced the re-opening date. What a difference.
Out of curiosity, what are the retail prices on the units now?


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## Tia

Water leaks not repaired leads to mold... 




Topcat said:


> ...the Grand since they are not that old.  We had water puddling on the floor by the front door the entire stay (between 1/8 and 1/4 inch deep for the entire hallway to the point housekeeping placed 4 towels for us to walk on).  They never resolved the problem.  First the said they had no plans so did not know what piping was leaking, maybe someone overfilled a tub above us?  Then the response was it is just condensation and to not run the AC!!   It also happened in 2007 and was found to be a cracked pipe in the unit above us then.
> 
> ...?


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## Caladezi

There seems to be alot of "mold" at the resort both inside and outside of the buildings.


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## Floridaski

*Are you there now?*

Are you at Morritts now?


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## Caladezi

Floridaski said:


> Are you at Morritts now?



No, not at the moment.


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## Floridaski

*Did you personally see mold?*

OK, thanks for the straight answer - I appreciate your honesty.

Now if you could answer just a few more questions.  

Did you see the mold yourself?

If you saw it with your own eyes, when did you observe it?

Thanks for your patience, mold in a tropical environment is not a small problem.  It may not be a huge problem, mold on the exterior is easy - bleach and a power wash solves the problem.  Mold on the interior can be easy to get rid of or it can be a disaster. 

We live in South Florida and most if not all insurance policy now HAVE a mold clause.  So, if in fact there is a LARGE mold issue at Morritts, it is very possible that it would be covered by their current insurance policy.  Mold mitigation is a common problem in the tropics.  Thank you in advance for your clarity in the details.


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## Caladezi

Floridaski said:


> OK, thanks for the straight answer - I appreciate your honesty.
> 
> Now if you could answer just a few more questions.
> 
> Did you see the mold yourself?
> 
> If you saw it with your own eyes, when did you observe it?
> 
> Thanks for your patience, mold in a tropical environment is not a small problem.  It may not be a huge problem, mold on the exterior is easy - bleach and a power wash solves the problem.  Mold on the interior can be easy to get rid of or it can be a disaster.
> 
> We live in South Florida and most if not all insurance policy now HAVE a mold clause.  So, if in fact there is a LARGE mold issue at Morritts, it is very possible that it would be covered by their current insurance policy.  Mold mitigation is a common problem in the tropics.  Thank you in advance for your clarity in the details.



Flordaski:  The mold that I am refering to is not the same kind of mold that you are thinking about, which is why I have written it "mold".  What I am talking about is the "mold" that is deeply entrenched at Morritts which if not removed will destroy the resort.  I simply used the term which was used by a previous poster as a vehicle.  The "mold" that we have can not be washed away or bleached.  It will have to be removed somehow or Morritts will suffer.
I hope that our "mold" mitigation problem can be resolved and we can once again be the resort that we were pre Ivan.

As for the other more common type of mold, I'm sure that it has been taken care of by our maintenance staff.


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## Topcat

Caladezi said:


> As for the other more common type of mold, I'm sure that it has been taken care of by our maintenance staff.



Actually no it hasn't been.  I did notice some mold or mildew in corners and along the base of the interior wall.


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## Caladezi

Topcat said:


> Actually no it hasn't been.  I did notice some mold or mildew in corners and along the base of the interior wall.



I hope that you pointed that out to Dutch (the GM) and that he has it taken care of.  When something like that is seen it doesn't do much good to mention it to the maids or sales people.  Take it right to the top and then if it's not corrected the owners have a very legitiment complaint.


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## Floridaski

*I guess the "mold" is walking around?*

So, if I understand you correctly - this "mold" can mitigate very easily, perhaps on 2 legs?  Thanks for the clarification!


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## Janette

When we exchanged in during March, they pressure washed the Grand with a clorox solution. We loved our stay there so I hope you can solve the problems.


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## Caladezi

Janette said:


> When we exchanged in during March, they pressure washed the Grand with a clorox solution. We loved our stay there so I hope you can solve the problems.



Janette:  Please check out:

http://morritts.17.forumer.com/viewforum.php?f=5


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## Topcat

Caladezi said:


> I hope that you pointed that out to Dutch (the GM) and that he has it taken care of.  When something like that is seen it doesn't do much good to mention it to the maids or sales people.  Take it right to the top and then if it's not corrected the owners have a very legitiment complaint.



Didn't tell Dutch as I couldn't find him the 1 day I decided to make a stink about the whole problem.  Where is his office for the next time I am down there?  Showed it to maintenance several times since they were in the room multiple times looking at the water on the floor.  See my previous post about that.  And yes I am an owner there so would not have a problem with taking it to Dutch.


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## Caladezi

Anyone at the front desk can point you to Dutch's office.  It is on the second floor in the main building.


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## Gadaboutgal

*Any Updates?*

So what's the latest word on Morritt's BOD meeting?  I am actually in GC as I write, and I only know that the meetings were from Monday to Wednesday of this week. Reading in other forums regarding Morritt's, the threads have all disappeared overnight.  So does anyone here know what "plan" of David's was presented at the meeting? Will we, the owners, be privy to the outcome?


----------



## Topcat

Gadaboutgal said:


> So what's the latest word on Morritt's BOD meeting?  I am actually in GC as I write, and I only know that the meetings were from Monday to Wednesday of this week. Reading in other forums regarding Morritt's, the threads have all disappeared overnight.  So does anyone here know what "plan" of David's was presented at the meeting? Will we, the owners, be privy to the outcome?



It is supposed to be posted on Morritts website sometime today.  I posed a question yesterday about why we could not be told the short version immediately and the details later and got no response.  May be interesting


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## Caladezi

We are being told that the information will be posted by 5:00PM today on the Morritts web site  http://morritts.com/.  The discussion was moved from the open section to the owners only section of the unofficial forum http://morritts.17.forumer.com/index.php?sid=6ca26671dbcf78e71d2342c3ee7d2e70.  A decision made by that forums moderator.


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## Topcat

Here is what was posted :annoyed: 

To all owners of timeshare interests at 
Morritt’s Grand Resort and Morritt’s Tortuga Club 

Morritt Properties Cayman Ltd (the “Developer”) wishes to announce that it will be listing for sale the Developer’s interests in the Morritt timeshare Resorts at East End, Grand Cayman as soon as marketing materials can be prepared.  

Mr. Morritt wishes to determine what interest there may be by any qualified group to continue the developments he started in Cayman more than 20-years ago.  Any prospective purchaser will of course have to abide by the timeshare plan and ensure that all rights of timeshare owners continue unabated. 

Earlier this year David Morritt engaged in discussions with the owner-elected members of the Board of Directors of both Morritt’s Grand Resort Ltd., and Morritt’s Tortuga Club Ltd., who had expressed an interest in the purchase of the Resorts by or for their Associations/members.  Mr. Morritt confirmed that he remains open to further discussions with that group or any other group of timeshare interest holders who make an offer competitive with other offers that may be made. 

Mr. Morritt confirmed that there are no proposed changes in operation of the Resorts during the period of any future sales negotiations and that the Resorts, which have consistently been in the highest occupancy bracket in the resort business in the Cayman Islands, will remain open for business as usual to their  thousands of members.


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## Caladezi

The FULL posting:
Management Update August 2009



The Morritt’s Tortuga Club, Ltd.  (MTC) and Morritt’s Grand Resort, Ltd.  (MGR) Boards of Directors met at the Global Resort Management, Inc. (GRM) offices in Largo, FL on Monday, Tuesday and Wednesday; August 24, 25 and 26. Present at the meetings were David Morritt, Dutch Hoffmann, and Mimi Morritt, representing Morritt Properties Cayman, Ltd. (MPC); Stephen Burger (GRM accountant), Chris Narborough (MPC attorney), Ursula Tripke (GRM, Operations Manager), and Jim Warmus, partner of Averett Warmus Durkee (independent CPA), Myron Holtz and Manfred Lissinna, owner reps for MTC; Les Graham and Daryl Thompson owner reps for MGR.

The purpose of the meeting was to review 2nd quarter financial operating statements and to discuss and approve the Proposed 2010 Operating Budget for each Association. Additionally and most importantly, the Boards were presented with an action plan prepared by the developer to address the financial issues apparent in the 2008 certified audits prepared by the independent CPA firm of Averett Warmus Durkee.

The financial issues, which were a major concern to the Boards of both Associations, were in the nature of the “Due To/From Developer” accounts. While it was a common occurrence in prior years for there to be balances in these accounts, the level of the “Due From Developer” accounts as of December 31, 2008 were of a magnitude that required an action plan from the developer.

2010 Proposed Budgets

The portion of the meetings dealing with the Proposed 2010 Operating Budgets resulted in the approval of a budget for each Association to be presented to the owners for adoption at the annual General Owners Meeting in October with no increase in maintenance fees over 2009.

Developer Action Plan

As to the Action Plan to focus on the “Due From Developer” accounts, from 2008 through June 30, 2009; David Morritt and his attorney, Chris Narborough presented a multi-faceted plan to address the concerns of both Associations. The plan, which was approved by each Board, consists of the following components:

·         An announcement by the developer, which will be posted on this web site, will be forthcoming that David Morritt has announced that he will be listing for sale the developer’s interest in both resorts. He is in the process of preparing marketing documents, which will be presented to all interested and qualified parties.

·         As the developer is aware that the Associations are interested in purchasing the resorts, he has agreed to provide a reasonable amount of seed money to be used by the Associations to explore the feasibility of such an acquisition.

·          The developer has provided the Associations with a Promissory Note at reasonable business terms and rates with weekly payments. The outstanding balance will be payable in full at the time of sale.

·         With the primary mortgage holder’s approval, the Promissory Note will be filed as a second charge (lien) against the property. 

·         Payments on the Promissory Note will be augmented by funds from the developer in the next few months.

·         The developer has committed to infuse funds to MPC to provide uninterrupted operation of the resorts during the sale process. The Board considered this to be the most critical component of the action plan. It assures all owners and guests that the resort continues to operate with all services.



Boards of Directors,

Morritts Tortuga Club

Morritts Grand Resort



To all owners of timeshare interests at 
Morritt’s Grand Resort and Morritt’s Tortuga Club 

Morritt Properties Cayman Ltd (the “Developer”) wishes to announce that it will be listing for sale the Developer’s interests in the Morritt timeshare Resorts at East End, Grand Cayman as soon as marketing materials can be prepared.  

Mr. Morritt wishes to determine what interest there may be by any qualified group to continue the developments he started in Cayman more than 20-years ago.  Any prospective purchaser will of course have to abide by the timeshare plan and ensure that all rights of timeshare owners continue unabated. 

Earlier this year David Morritt engaged in discussions with the owner-elected members of the Board of Directors of both Morritt’s Grand Resort Ltd., and Morritt’s Tortuga Club Ltd., who had expressed an interest in the purchase of the Resorts by or for their Associations/members.  Mr. Morritt confirmed that he remains open to further discussions with that group or any other group of timeshare interest holders who make an offer competitive with other offers that may be made. 

Mr. Morritt confirmed that there are no proposed changes in operation of the Resorts during the period of any future sales negotiations and that the Resorts, which have consistently been in the highest occupancy bracket in the resort business in the Cayman Islands, will remain open for business as usual to their  thousands of members.


--------------------------------------------------------------------------------


----------



## JRS

These issues always peak interest, if it is my resort or another.  I am confused about one issue - maybe I overlooked the answer because of speed reading.  Anyways just getting back to basics.  IF these are RTU leases, does mgmt "really" need to get owner feedback (if they're leased the owner is not the lessee). regarding the budget ?  Who in fact is the owner ?   I am a member of another resort (one a RTU one deeded), have not received ONE financial statement, and wonder if I have any right to receive it .....   the deeded property I suspect I have more rights to this request .....


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## Floridaski

First thanks for  keeping us all posted, I personally do not care if someone is an owner at Morritts or not.  I just want truthful and factual information from any source that is available to provide that information - I think most owners would feel the same way.  So if you are a non-owner and have info - please share it!

Big question, how exactly does David Morritt expect the current HOA to purchase the property.  We know he will try to get the highest amount of money as possible, I am sure the property value is in question and then you have the credit crunch on top of the Hurricane issues.  It all just rolls up into one big problem.

Does anyone know who holds the notes on the property currently?  There is always this reference to London - but the offices are in Florida.  Who knows perhaps the US Government may own a "piece of Paradise" with the huge bank bail outs?  This is all speculation - bottom line, none of us really know the whole story.

I think Morritts will continue to operate, I am not sure David will really sell - because I think he will hard pressed to find somebody that will pay him what he "thinks" the resort is worth.  We all know that folks that build from a "dream" tend to over value their properties worth.  

I guess time will tell - in the mean time, please share any info you may have!


----------



## tselios

*any updates on Morritts?*

Just wondering if there were any updates on this situation?
Has anyone been there recently?  
Is the maintainence being kept up at the resort?
Thanx for any info,
we are looking to exchange into this property for 2010.


----------



## Caladezi

tselios said:


> Just wondering if there were any updates on this situation?
> Has anyone been there recently?
> Is the maintainence being kept up at the resort?
> Thanx for any info,
> we are looking to exchange into this property for 2010.



I was at the resort in September and had a great time.  There are a few maintenance issues that were apparent to someone who has been there many times over the years but would not even be noticed by most people.  The place for the most part looks great and I'm sure that you will have a great time.  The staff, as always, is wonderful and will go out of there way to make your stay be beyond your expectations.

As far as the resort internal problems, they are still on going.  The developer is paying back the money owed to the associations on a regular basis and has listed the resort for sale with a real estate company.  None of this will have any effect on your stay at the resort and you will have no indication that there is any problem.  There is absolutely no reason that you should not have a wonderful vacation at Morritts.  Enjoy, and have a great time.


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## judyjht

I am going to the Grand in March for the first time - can't wait!!


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## pefs65

I am going to the Grand on a DVC RCI exchange for March 2011:whoopie: 
I cant wait to go either


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## Noni

We'll be at Tortuga Seaside in June, 2010 for our annual trip.  Whatever minimal problems we may encounter, it never interferes with our vacation.  

Have fun.


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## LisaH

Which week in June will you be there? We will be at Morritts Grand from June 13 to 20.


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## Noni

We'll be at Kaibo Beach Resort June 12-June 19 and then Seaside from June 19- 26.  

Joan


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## nazclk

*Morritts*

Now I know why there are no takers on E-Bay for these listed at $1


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## Caladezi

The trouble has not gone away!!!  Now the owner/developer of the resort AKA David Morritt who took money from the association account without the knowledge of the owners, who also failed to pay MF's on the units that he owns, who has put the resort up for sale at a super inflated price just to spite the owners asssociation offer to buy the place, who has put the resort on a path to closure,and shows no intrest in those current owners who he claims as his "dear friends", has struck again.  He has notified the owners reps on the BOD that the board meeting scheuled for next week will be canceled.  David controls the board vote with a 3-2 balance since he appoints two members plus himself and the 10,000 owners get to appoint two, so there is nothing that our reps can do about it.  This was to be a meeting that would let our reps know how David is doing on meeting his obligations on not only the debt owed, but his current MF obligation.  With this type of action on the part of the developer, only the worst can be thought.

I hope that any tuggers visiting this resort will be aware of the dire situation that exists before investing their hard earned money.  When you visit, your stay will be wonderful and you'll love the place.  Just beware when you get the sales pitch.


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## judyjht

Geez - we are going March 6th - 13th.  Do you think it will be OK - I had no intention of buying anything anyway.


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## Caladezi

judyjht said:


> Geez - we are going March 6th - 13th.  Do you think it will be OK - I had no intention of buying anything anyway.



You will have no problem.  The resort looks great and the staff will treat you wonderfully.  Have a great time and enjoy your vacation.  The problems at the resort are between the developer and the owners.  I wish that I were a visitor and could leave the problems there when I returned home.


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## kevinc1014

Caladezi,

      Let me start by thanking you for keeping us abreast of this situation. I have been an owner since "96" and going down to Morritt's since "92" and love it. It was great back then, but, we have notice changes. Until reading your posts, I was unaware of what has been happening, like other owners I'm sure. I will be heading there in May, and looking forward to it as always. Let me ask, in your opinion, how worried should we as owners be, and, how do you see this playing out?

     Thanks,
                Kev


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## Caladezi

Kev:  The problem at the resort could go many different ways, but in my opinion, unless there is a drastic change it will be just a matter of time before it will be forced to close.  The economy hasn't helped the situation and has to bear a large part for the decrease in sales, but the developer has caused major problems which were discussed earlier in this thread.  In the short term things will go on as usual and people visiting will throughly enjoy their stay.  How long this will last is the big question.  If the economy turns soon and there is a 180 degree change of attitude, AND actions, on the part of the developer there could be a chance.  Honestly, I don't see that happening.  The best thing for all concerned would be a sale of the resort to either the owners association or another party who would run things above board in a fair, open and honest manner.


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## Tia

This is sad.... and sure does not sounds like the developer is going to do what is right.


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## caribbean

David Morritt do what is right??? HA HA  You must be kidding. That would never enter his mind. 

For Frank's and everyone elses sake, except DM, I sure hope they can find a buyer and be free. But as Frank says, due to the economy and DM's pricing, the odds are not good. 

Frank- As always...thanks for keeping us informed.


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## pefs65

Well as a visitor to this resort on an exchage for April 2011, is there any chance the resort will close over the next year?


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## SashaPasha

*New here - with questions re this thread*

Hi all,
I just joined the forum today - basically because I ran across this thread on the web and have been wondering if something was going on at Morritt's.

just to give you a background - we traded thru RCI in Aug. 2009 and spent a wonderful week at Morritt's - being fortunate enough to get put in a Grand ocean front room - 2 bedrooms/ 2 baths - fantastic! AND we loved the property. We have travelled extensively but never to the Cayman's and since we usually go to Puerto Vallarta, my husband who is a diver - fell in love with the place and got back into scuba after several years.
SO - although we said we never would, we ended up buying a re-sale from Morritt's at what we thought was a good price. Due to our budget - we had to purchase in Tortuga and ended up with a 1 bedroom - every other year.
Anyway - we are planning to go back this August (have a week booked) and I happened to come across a re-sale website that was offering the same unit that we stayed at in the Grand (ocean view, 2 bed - the whole works) for as low as 5K!!!

We have been e-mailing back and forth with the company but are a little suspicous and when I contacted the resort directly their prices are still very high. SO that is why I started surfing the web to see why there were so many cheap re-sales. Plus when we were there they talked about breaking ground for the 3rd property but there is no construction on that now.

I guess my main question is - is everyone dumping their properties - and even if the resort changes hands - is it just basically a BAD idea to own here.

We have backed off on proceeding with any purchase but are still going in August and also hope to use our bonus week at the same time. And I still don't feel bad about our original purchase.

any information or opinions would be welcome - we really enjoyed our holiday and the main reason we purchased was due to the 1 in 4 year rule.

thanks,
SashaPasha


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## Caladezi

Sasha:  My advice is to review this thread and then check out the unofficial Morritts owners site at http://morritts.17.forumer.com/index.php.  Make sure that you ask for access as an owner so that you can view the owners only section and then take the time to review the threads.  From there you can make up your own mind.  I have already expressed my view point.  If you really want to go to Morritts, be aware that you can rent a week almost any time of the year from an owner for nothing more than the yearly maintenance fee, without having to pay the cost of ownership or having the obligation to pay every year even if you don't use your week or want out.

Also note that the 4 in 1 rule only applies to RCI trades and not rentals from owners.


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## SashaPasha

thanks caladezi,
I will review that and I do understand what you are saying about the rentals - we have been considering that option already as an addition to our own unit.


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## jadejar

There is a board meeting this morning - maybe we'll get some good news from our board reps.


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## GrayFal

No SashaPasha,
Everyone is not dumping their units.

Now that the financial situation has been publicly revealed, it can not be swept under the rug again.
The developer might wish that the HOAs will go away but we will not and we will triumph in this situation.
We own 80 % of the resort - both of them - and I suspect when this is over, it will be 100%

The daily running of the resort has not been affected and as a visiting guest, you certainly are not aware that there are any problems behind the scene.

Many older,original owners feel disappointed in the developer who passed himself off as a 'friend' to all owners - and it is very hurtful to be let down by a friend. I am a resale owner of 4 years so do not have that history, I see the resort for what it is - a beautiful, tranquil setting with friendly people and nice units located right on the beach. I had several friends who purchased resale weeks here this year after visiting last year.

I have great faith that our 4 owner reps will continue to do a good job in keeping owners informed.

The developers actions are not acceptable but he is now publicly exposed in many venues such as this and on his beloved Cayman Islands.
Are some owners hurt and just want out - yes there are, but this is not unique to this property. 

Thanks Caladezi for keeping the information out there


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## Caladezi

GrayFal said:


> No SashaPasha,
> Everyone is not dumping their units.
> 
> Now that the financial situation has been publicly revealed, it can not be swept under the rug again.
> The developer might wish that the HOAs will go away but we will not and we will triumph in this situation.
> We own 80 % of the resort - both of them - and I suspect when this is over, it will be 100%



It's true that everyone is not dumping their units, but many can still be had for one dollar or even free for paying the transfer fee.  Much of this can be attributed to the current economy and the fact that we have no buy back program.  Once you become an "owner" you are obligated to pay your fees when due unless you can transfer that ownership to someone else.  Other "owners" are just fed up with the developer and his actions and don't want anything further to do with him.  Unfortunately, the vast majority of the "owners" do not keep up with what has happened to their investment and have no idea what is going on or what they might be in store for.

Your statement that we own 80% of the resort is totally incorrect.  We actually own NOTHING other than a RIGHT TO USE  and the obligation to pay our MF's and Special Assessments as they may be levied.  The developer, David Morritt owns, and always has, 100% of all buildings, ground, equipment and everything else.  That is the reason that when I write owners it is written "owners".  While our reps for the association have been able to call David out on his financial issues, they have very little power to control him.  The BOD is controled by David 3-2 (the 2 being the owner reps.)  The only way that we will ever be actual owners is if David can no longer afford to continue operation of the resort and is forced to sell to the association.  It is my hope, and that of many others, that that situation will come shortly and we will become the owners rather than seeing the resort close and all of us losing our investment.


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## SashaPasha

Well if I could get something for a dollar - or only the xfer fee - I would certainly purchase another unit!!


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## GrayFal

Caladezi said:


> It's true that everyone is not dumping their units, but many can still be had for one dollar or even free for paying the transfer fee.  Much of this can be attributed to the current economy and the fact that we have no buy back program.  Once you become an "owner" you are obligated to pay your fees when due unless you can transfer that ownership to someone else.  Other "owners" are just fed up with the developer and his actions and don't want anything further to do with him.  Unfortunately, the vast majority of the "owners" do not keep up with what has happened to their investment and have no idea what is going on or what they might be in store for.
> 
> Your statement that we own 80% of the resort is totally incorrect.  We actually own NOTHING other than a RIGHT TO USE  and the obligation to pay our MF's and Special Assessments as they may be levied.  The developer, David Morritt owns, and always has, 100% of all buildings, ground, equipment and everything else.  That is the reason that when I write owners it is written "owners".  While our reps for the association have been able to call David out on his financial issues, they have very little power to control him.  The BOD is controled by David 3-2 (the 2 being the owner reps.)  The only way that we will ever be actual owners is if David can no longer afford to continue operation of the resort and is forced to sell to the association.  It is my hope, and that of many others, that that situation will come shortly and we will become the owners rather than seeing the resort close and all of us losing our investment.


Yes, you are corrrect -I mistated 'own' as it is a RTU - and people like you and I have 80% RTU right now with the developer owing fees on his 20% RTU units.

There are many bitter people as I stated above who really feel betrayed by David - hopefully a resolution will happen soon. It is out in the open and under the scrutiny of many including the the local press; I hope it will be resolved in the next few years.


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## CassieD

*Buy now at Morritts?*

I have been reading this thread and what has been going on.  Is it a good idea to buy a cheap resale now at Morritts Tortuga considering everything?  Will there be anymore SA or will the resort even close?  Any thoughts are appreciated.
Thanks!


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## Tia

With what Caladezi said last I'd just rent and not buy into the mess.


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## caribbeansun

I have to admit, given what's been posted here I was very surprised to receive a notification from the Cayman Planning department about a new proposed apartment building owned by Moritt Properties (Cayman) Ltd. across the street - I'm assuming beside or near the strip mall.

Anyone know what's up with that?


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## Caladezi

caribbeansun said:


> I have to admit, given what's been posted here I was very surprised to receive a notification from the Cayman Planning department about a new proposed apartment building owned by Moritt Properties (Cayman) Ltd. across the street - I'm assuming beside or near the strip mall.
> 
> Anyone know what's up with that?



I have not seen or read anything about this, nor has anything been in the Cayman papers as far as I know.  Would you please post this notice or supply a link?  If an apartment building is being built by Mottitt Properties while there is no money to build the still missing Seaside building, there is a problem.


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## caribbeansun

Here's a  link to a pdf  of the document I received.  I've blacked out private information. 



Caladezi said:


> I have not seen or read anything about this, nor has anything been in the Cayman papers as far as I know.  Would you please post this notice or supply a link?  If an apartment building is being built by Mottitt Properties while there is no money to build the still missing Seaside building, there is a problem.


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## phillip

I am just wondering if there has been any update in this matter?

I still see some quite affordable units for sale and am interested.


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## Caladezi

The only thing new is that the GM Dutch Hoffman is no longer employed at the resort.  No formal announcement has been made yet since this happened very recently.  It also appears that much of the sales force has been reduced and the sales mangers bio is no longer on the company site.  Hopefully, some information will come from the BOD meeting next week, but it doesn't seem like this is good news for the resort.  Make of it what you will.  There are also quite a few owners who are getting to the end of their witts with the developer, who has still made no advances in getting the missing Seaside building construction started, even though the building has been sold out for over 4 or 5 years, and the owners have been forced to compete for a much smaller available inventory of rooms.


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## phillip

I posted a while back on the Morritt's forum inquiring about the recent BOD meeting and it would seem like things are on track.

Simplifying the issues at hand:
1) the hotels seem to be operating well (guests wouldn't know there're are any problems between owners and developers)
2) the developer is reconciling the amounts due ahead of schedule
3) the developer at least intends to offer his interest for sale
4) the developer has expressed interest in entertaining offers to buy the resort(s)

I would say these are improvements and making ownership here look better than perhaps it has been in the recent years, though I am admittedly looking at the very face value of what I'm told. 

Am I missing anything that should sway one against wanting to own at Morritts?


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## riverdees05

We have an exchange via RCI for the first week of April, 2011 and are in the process of looking for airline tickets - they seem high.  We did buy the RCI Insurance.  Should we look at possible cancellation or go ahead and get our airline tickets - what is your best guess?


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## Floridaski

*Go ahead and enjoy your vacation*

We have owned at Morritts for 15 years, and yes it has seen it's share of problems, but it is not closing down.  

Would we buy it all over again - no, but then we would not buy any of our timeshares again - not even the Hyatt points.  

I say this because you can rent almost anywhere for what the fees cost owners.  But, we have gotten great vacations from our orginal purchase and we rent what we cannot use.  We do not lose money with our annual fees.

Go ahead and buy your plane tickets, the resort is beautiful, the people wonderful.  You will go and come back, it will make you wonder why you were ever worried.  

Have a great vacation!


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## jadejar

The first week of April will be a wonderful time to be at Morritt's.  I wish I was able to go with you!  You will enjoy it there.


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