[2008] Festiva is now managing my resort, how bad is it going to get?

[tombo]

An HOA president should never have this power unilaterally. The power should be vested in the entire board, which for a major renovation should consult the membership especially if it involves a special assessment. Several resorts I have owned at had provisions requiring a vote by the owners on any special assessment, which is the best control.

I agree 100%. If we are going to have to pay for renovations we should be able to vote on whether we want to renovate or not after receiving estimates and plans to help us make our decisions. The problem is that somehow Festiva has (according to them) 80% of the vote in Phase 2, so even if we vote to assess or not assess, they will win the vote and obligate owners who have no say to pay the assessments.

I assume the festiva points are Right to Use which gives the "members" no vote or ownership in the resort. Since the resort was sold out well before anyone ever heard of Festiva, RTU is the only way I can imagine that they bought the majority vote when they purchased the resort. If people were told that by swapping to Festiva points that they would have all the obligations that come with timeshare ownership without any actual vote or ownership in the resort, would anyone ever swap to the Festiva club?

 

[tombo]

. . . thereby continuing Fairfield / Wyndham's brazen conflict of interest.

What happened at Bluebeard's Castle is very good reason for timesharers to always work to end this slimy practice of management holding board seats.

A management company employee (or developer employee) can't be impartial and look out for what is best for the owners. Who is going to vote to change to a better mgt. company when doing so would cost them their job? If even one employee is on the board it is so much harder for the board to honestly discuss mgt problems with the mgr looking at you. I think it should be in every bylaw of every resort that there will not be any mgt or developer employees allowed to have a seat on the bosrd whether they own at the resort or not.

 

[tombo]

Not all Peppertree resorts followed that path. The HOA boards at Peppertree Outer Banks Beach Club and Peppertree Outer Banks Beach Club II kicked out Fairfield (before they became Wyndham) as management, and hired their own independent management company out of Myrtle Beach, SPM Management.. They also dropped the ''Peppertree'' from their names. SPM is doing a much better job there than Fairfield did.

I don't think it is possible for us to get rid of Festiva as our mgt company. In Phase 2 they have the majority of the board who are festiva employees and they allegedly control the majority of the votes, so how could we possibly boot them?

In Phase one I think they have 2 out of 5 board members who are employees (waiting for festiva rep's response to know for sure). If that is the case and they can get one board member on their side they can control that board too. However in phase one they don't control the vote. That is good for the owners if the board ever actually puts anything to a vote. If we instead get a letter saying your MF's are increasing and we are assessing most owners will simply pay up, sell, or deed their weeks back to the resort.

I own at a resort in Florida that SPM manages and I am pleased with the job they are doing. I am afraid that Festiva's Mgt/Developer/Sales deptartments are going to raise the MF's and assess as they have done at other resorts. So far Festiva Rep has said nothing to assure us that increases and assessments aren't on the way. Most new mgt companies would be doing everything they could to improve the resort while maintaining or decreasing MFs to show owners what a great company the board hired. They might raise them down the road, but not within the first 2 or 3 years. Festiva bought the Atrium and assessed and raised MF's soon after they took over.

I don't like how the mgt employees are geared towards helping Festiva sales more than helping owners.The other mgt companies (Fairfield,Wyndham) weren't activelly selling at our resort so they were very owner friendly. If you needed to sell your week they would keep a list of owners with weeks for sale and tell anyone who inquired. I actuall bought my first week there from an owner I was referred to by the manager. I called the resort asking questions and said if Festiva makes BRV an expensive place to own that I might get them to list my weeks for sale. They said they were told by Festiva that they were no longer allowed to help owners sell their weeks.

 

[tombo]

It has been talked about here that festiva settled with the Missouri attorney general's office to stop the lawsuit filed because of deceptive sales practices. It has also been talked about on this thread that the owners of the Atrium in St Maarten have filed a law suit against Festiva for the perceived wrongs they felt have been done to them since Festiva took over their resort.

I own a week in St Maarten(not at the Atrium) and I am a member of a St Maarten web site. This weeks issue had another frightening revelation about Festiva.

The following is a copy and paste paste from the web site JMB: St. Martin and St. Maarten Weekly News, Monday, July 28, 2008 :

"Our opinion on a critically important issue….

First it was a lawsuit by timeshare owners at Festiva Atrium Resort against that
resort’s developers for perceived wrongdoings.

It gets worse: Festiva, a U. S. company, is itself in court, seeking to
invalidate a provision in its existing contracts with its SXM timeshare owners
which links the percentage by which it can increase Annual Maintenance Fees to
the area’s consumer price index. If the courts invalidate that contract
provision, every St. Maarten timeshare developer will be free to raise “AMFs” by
whatever percentage they choose, pricing many timeshare owners out of the units
they paid thousands for.

In this atmosphere, should anyone buy timesharing or even full-share condos in
St. Maarten? What do you think? "


This is a web site that doesn't focus on timeshares, it is about the restaurants, beaches, sights, deals on cars, rooms, packages, timeshares, and anything else to do with St Maarten. This is another nail in Festiva's owner appreciation coffin. If there is a contract in place when Festiva purchases the resort that Festiva doesn't like, they will obviously do anything that they can to change the rights the owners purchased even if it means that they have to go to court to do it. Because of Festiva's actions this web site is questioning why anyone should even consider buying a timeshare or condo in St Maarten. Festiva is trying to change the contracts that people have because there contract has a limit on the amount per year the MF's can be increased. Festiva wants to raise them much higher and much faster, so they simply go to court. Out of all the timeshare developers in SXM, Festiva wants to be the first and only developer going to court to set a precedent allowing festiva to invalidate current owner's contracts.

Dear Festiva Rep,

This will be a hard one to put a good spin on. I am ready for you to say the resort was going broke (why did Festiva buy it if it was a money loser?), the MF's were too low to keep the resort operating (once again why buy), and costs were going up faster than the consumer price index (surely Festiva knew about the wording of existing contracts). All of that is irrelevant. Festiva bought a resort where the owners had a contract giving them certain rights in exchange for the money they paid the developer when they purchased their weeks. Festiva buys the resort and sues to not have to honor the contract the owners purchased. That is wrong, and hopefully after court will still be ilegal.

I am going to carry the St Maarten web page poll of why buy a timeshare in St Maarten one step further. Why would anyone buy a Festiva resort when the company has shown that they will do anything in it's power to assess and raise MF's, even going so low as to try and overturn the owner's rights in court. At my resort are you going to try and take my fixed weeks and units away? That is what I bought, but Festiva doesn't seem to care about what people purchased unless it was purchased from Festiva. Who knows if Festiva will even honor what they are selling now in the future. I said I wouldn't trade my fixed weeks to get Festiva Points for free. Will you sue us to make us become Points owners even though we purchased fixed weeks?

Anyone anywhere who has their resort purchased by Festiva should feel very uneasy because of their treatment of owners at other resorts. Festiva Rep you are real nice and I appreciate you answering questions, but Festiva has not been good to existing owners at resorts they have purchased. I can, and from the looks of things probably will sell my BRV weeks when the assessments and increased MF's come. I am sorry that you have such a hard job. Putting positive spins on Festiva's actions is like trying to convince everyone that Enron and WorldCom were good companies to buy stock in. Their CEO's were great guys and just misunderstood. There were a lot of glowing statements issued by those companies before they lost so much of so many people's money. Eventually the truths will overwhelm the spin and everyone will know that the Emperor had no clothes.

 

[jercal10]

Is anyone here actually an owner @ St. Martin?? Do we have a budget showing where the MF is going?? Is it for the resort or in Festiva's pocket??
How low or hi was the MF to begin with?

Tombo, I'm worried about my resort too, as it's hard to get any data on how much money going to Festiva as a Mgmt fee.

Festiva Rep, maybe you can enlighten us as to some $$$ facts on the Atrium??

 

[tombo]

If you did not receive an Annual Report, you can contact the Owner Services department and they will send you one, or you can send an e-mail to myemail@festivaresorts.com to request one.

The reason we do not provide financial information in our annual report is because we are a privately held company and are not required to publish such information. Also, each year the maintenance fee invoice for each resort and/or club details how said fees are being spent.

The above is a previous response from the Festiva Rep. Several other resorts have had owners questioning where there money was going. One owner at a resort on the east coast said that they had no idea how much they are paying Festiva to manage their resort, and that they couldn't seem to get a straight answer. They said that before Festiva it was stated on the annual report, now nothing. Finding out what was spent and where from assessments and MF's have been hard to obtain according to several other owners. Many have complained that they can't get an annual report. I think Festiva's statement that they don't provide financial information because they aren't required to is typical of their smoke and mirrors approach to business. They begrudgingly release what little financial and management information they are required to release, and release very little (if any) information that they aren't required to release.

Other than Festiva Rep (who is paid by Festiva), I am still waiting to see a single owner who is glad that Festiva owns/manages their resort. I am sure that there are a few who like Festiva out there (I can't imagine why), but the vast majority of owners obviously are not happy with Festiva. Even the hated and much maligned Westgate hasn't sued in court to invalidate the contracts owners received when they purchased their weeks like Festiva is currently doing. We need 60 minutes or 20/20 to expose Festiva on national TV!

 

[ace2000]

Other than Festiva Rep (who is paid by Festiva), I am still waiting to see a single owner who is glad that Festiva owns/manages their resort. I am sure that there are a few who like Festiva out there (I can't imagine why), but the vast majority of owners obviously are not happy with Festiva. Even the hated and much maligned Westgate hasn't sued in court to invalidate the contracts owners received when they purchased their weeks like Festiva is currently doing. We need 60 minutes or 20/20 to expose Festiva on national TV!

tombo,

I for one, am happy to be a Festiva customer. I own at the Cabins at Green Mountain in Branson, and appreciate the uniqueness of the resort. I also appreciate the fact that I can rent the unit for a higher amount than the maintenance fees (including this year), and everytime I've rented, the customer has been very happy. I feel the resort has been extremely well maintained and the staff are great!

Scott

 

[bnoble]

To be honest, tombo, I've stopped reading your beat-the-drum posts, so I can't say whether or not "the vast majority of owners" are "obviously" anything.

As a Tamarack owner: so far, the mother ship is no less competent than Wyndham was in terms of deed transfers, MF payments/accounting, etc. Granted this is not a high bar, but still.

I do wait longer on hold with Festiva than I did with Wyndham. This is what speaker phones are for. On the other hand, it was easier to find the person at Festiva who could help me than it was at Wyndham. And, once I did, my problem was solved expeditiously.

My interactions with the sales staff likewise suggest not much has changed. Wyndham wanted me to buy points at Glacier Canyon. Festiva wants me to convert my fixed week to points. Both of them told me how worthless my midsummer Wisconsin fixed weeks were.

Wyndham never got what they wanted, and Festiva probably never will either.

The staff at the resort seem to be fine every time I call them. I'll know more when I return from my summer stay there next week.

I suppose Festiva could really screw things up. Until I have a reason to jump for joy, or drown my sorrows, I'm taking the wait-and-see approach, because my ownership here is still bringing me significant value.

 

[jercal10]

The above is a previous response from the Festiva Rep. Several other resorts have had owners questioning where there money was going. One owner at a resort on the east coast said that they had no idea how much they are paying Festiva to manage their resort, and that they couldn't seem to get a straight answer. They said that before Festiva it was stated on the annual report, now nothing. Finding out what was spent and where from assessments and MF's have been hard to obtain according to several other owners. Many have complained that they can't get an annual report. I think Festiva's statement that they don't provide financial information because they aren't required to is typical of their smoke and mirrors approach to business. They begrudgingly release what little financial and management information they are required to release, and release very little (if any) information that they aren't required to release.

Other than Festiva Rep (who is paid by Festiva), I am still waiting to see a single owner who is glad that Festiva owns/manages their resort. I am sure that there are a few who like Festiva out there (I can't imagine why), but the vast majority of owners obviously are not happy with Festiva. Even the hated and much maligned Westgate hasn't sued in court to invalidate the contracts owners received when they purchased their weeks like Festiva is currently doing. We need 60 minutes or 20/20 to expose Festiva on national TV!

Tombo --we know you hate them!!!!!

Is there anyone out there with some facts on the MF's at the atrium??

 

[FestivaRep]

A question for the Festiva Rep...as a fixed week owner, are we able to trade internally for other Festiva resorts? The website isn't clear if this is available to everyone under the Festiva umbrella or members of the points-based units. Thank you for taking the time to visit this forum and answer questions. DawnB

Hi Dawn;

The ability to trade internally is limited to points members only; therefore, fixed week owners do not have the ability to do this type of trade.

However, If you would like to stay at a Festiva property, as a member you are entitled to a discounted nightly rate of up to 50% off the current rack rate. These are NOT marketing/sales tours, you can book these by calling the resort(s) directly. The phone numbers can be found on our website.

 

[FestivaRep]

Jercal, what exactly do you mean by 'expanding' the resort at Tamarack?

Festiva Rep:
It is my understanding that Festiva got all the vacant land "up on the hill" as part of the purchase from Wyndham.
I am interested to see if there are plans to expand what seems to be an otherwise dying resort???[/QUOTE]

Jercal;
I will check and see if there are any confirmed plans for the undeveloped land at Tamarack. I'll let you know.

 

[FestivaRep]

Festiva Rep:
It is my understanding that Festiva got all the vacant land "up on the hill" as part of the purchase from Wyndham.
I am interested to see if there are plans to expand what seems to be an otherwise dying resort???

Jercal;
I will check and see if there are any confirmed plans for the undeveloped land at Tamarack. I'll let you know.[/QUOTE]

Jercal;

Got a response more quickly than I thought I would...There are plans being developed for expansion on the land at Tamarack, but they are still about a year away from getting started on anything. Let me know if you have any other questions about this.

 

[FestivaRep]

Tombo: I just talked with our President to clarify some of the post quoted below, but I'm waiting on the exact numbers of the percentage of Phase 2 that the Festiva Adventure Club owns. Here's what I have so far:

- There are no Festiva employees on the BRV Phase 1 board.
- Wyndham previously held 3 seats on the Phase 2 board
- Festiva assumed these seats and would have reduced that number if the owners had voted as such
- Festiva and the Adventure Club will indeed pay their share of assessments for any renovations that take place, as they do at any resort that has developer-owned inventory

I believe it was the president who made the statement that festiva could do what they want to in Phase 2 because Festiva owns 80% of the vote. I said "a CEO" because I couldn't remember what title he had, but I knew he was way up in Festiva's heierarchy. I will be glad to contact the HOA Board presidents to ask them the status of possible renovations and increases in MF's.

I know you said that you can't verify what was said at the annual meeting, but there were plenty of owners there who heard it. To get beyond semantics, can you please tell me if in fact 80% of the vote in phase 2 is controlled by Festiva. If so, how did Festiva gain majority control of a sold out resort in less than 2 years since you purchased it from Wyndham?

What scares me is if in fact it is true that Festiva owns 80% of the vote in Phase 2, then the owners can't stop renovations, MF increases, change mgt companies, or stop anything else Festiva decides they want to do. Of course Festiva won't have to pay for any upgrades or renovations festiva decides are needed at the resort, we the owners will. The president of Phase 2 has no real power or incentive to protect the owners. He was voted in by the 80% vote of Festiva (he might even be a Festiva employee), and he knows that he can be voted out (or fired) at any time if he doesn't tow the Festiva company line.

Festiva Rep, thank you so much for responding. I would really appreciate clarification on whether or not Festiva actually owns 80% of the phase 2 vote. Also which officers (i.e. president, secretary, treasurer, etc) of the Phase 1 and Phase 2 boards at BRV are Festiva employees? Finally how many board members in Phase 1 are Festiva employees, and how many in Phase 2?

Thanks,

Tom

 

[FestivaRep]

Just a brief digression here...I have taken several graduate classes specifically focusing on Internet media and how it is changing our culture. One of the most important things I've learned and that should be a mantra for anyone who uses the Internet is that anyone can post anything Online, whether it is fact, fiction or somewhere in between. This can be a wonderful thing, or a terrible thing. Personally, I am a huge fan of citizen journalism and all forms of Web media; however, it's important to be discerning when considering the source of the information.

For example, some of you may see me as a biased source since I work for Festiva, which is understandable. BUT, you should also see me as a valuable source because I can provide facts that are often misinterpreted, misunderstood or construed by someone who does not know our company so well and is not getting the information directly from our executives. How sure are you that people who author personal blogs and websites are presenting the information in its truest form? This forum certainly gives a valuable voice to owners; however would it be fair to disregard the voice of the company of topic?

That being said, there is a LOT of misinformation in the world of the Web about what has been happening in the courts in both Missouri and St. Maarten. Here's some information to clarify a few things...

In Missouri, Festiva signed an AVC (Assurance of Voluntary Compliance) involving about 60 owners. This was not a judgment against us, nor was it ever a litigation, per se, because the suit was filed by an agency rather than individuals. The MOAG suit was prematurely filed in 2005, but was put on hold for three years since standard procedures were not followed. This culminated in the withdrawal of the suit and the signing of a voluntary agreement. Festiva recognized a problem that owners had, and did what we needed to do to fix it. It has been resolved.

I will follow up later with more information about the Atrium as there are specific questions about maintenance fees that I need to research; however, one thing I can tell you that I know for sure about that resort is that there is no class-action lawsuit against Festiva in St. Maarten.

 

[somerville]

Just a brief digression here...I have taken several graduate classes specifically focusing on Internet media and how it is changing our culture. One of the most important things I've learned and that should be a mantra for anyone who uses the Internet is that anyone can post anything Online, whether it is fact, fiction or somewhere in between. This can be a wonderful thing, or a terrible thing. Personally, I am a huge fan of citizen journalism and all forms of Web media; however, it's important to be discerning when considering the source of the information.

For example, some of you may see me as a biased source since I work for Festiva, which is understandable. BUT, you should also see me as a valuable source because I can provide facts that are often misinterpreted, misunderstood or construed by someone who does not know our company so well and is not getting the information directly from our executives. How sure are you that people who author personal blogs and websites are presenting the information in its truest form? This forum certainly gives a valuable voice to owners; however would it be fair to disregard the voice of the company of topic?

That being said, there is a LOT of misinformation in the world of the Web about what has been happening in the courts in both Missouri and St. Maarten. Here's some information to clarify a few things...

In Missouri, Festiva signed an AVC (Assurance of Voluntary Compliance) involving about 60 owners. This was not a judgment against us, nor was it ever a litigation, per se, because the suit was filed by an agency rather than individuals. The MOAG suit was prematurely filed in 2005, but was put on hold for three years since standard procedures were not followed. This culminated in the withdrawal of the suit and the signing of a voluntary agreement. Festiva recognized a problem that owners had, and did what we needed to do to fix it. It has been resolved.

I will follow up later with more information about the Atrium as there are specific questions about maintenance fees that I need to research; however, one thing I can tell you that I know for sure about that resort is that there is no class-action lawsuit against Festiva in St. Maarten.

Talk about spin and misinformation, I would strongly disagree that Festiva was not involved in litigation with the State of Missouri. Below is the 2005 press release announcing the filing of a lawsuit against Festiva in Taney County, Missouri. We all know that litigation progresses through the courts slowly. There is usually a discovery period and then settlement negotiations. It is only after the parties can't settle that a case goes to a jury or judge. Please tell us what "standard procedures" weren't followed. Why can't Festiva just fess up and admit what they did was wrong?

Nixon sues Branson timeshare broker for high-pressure and misleading sales tactics (11/28/2005)

Jefferson City, Mo. — Alleging high-pressure and misleading sales tactics, Attorney General Jay Nixon is suing Festiva Resorts L.L.C., which sells timeshares at the Cabins at Green Mountain, located in Branson.

In a suit filed in Taney County Circuit Court, Nixon says Festiva violated Missouri consumer protection laws by misleading customers into buying timeshares. The lawsuit alleges Festiva lured consumers by falsely promising to:

* Help them sell other timeshares they owned.
* Help them rent out timeshares they bought from Festiva.
* Help them get good deals on condo rentals in attractive locations.
* Help them get good deals on vacation packages.
* Give refunds to those dissatisfied with their purchase.

Nixon also says Festiva didn't give consumers enough time to make decisions, creating a sense of urgency and a high-pressure sales environment.

"Consumers buy vacation property because they want a place to relax. For these consumers, Festiva delivered anything but that," Nixon said. "Branson is one of the nation's most popular tourist destinations, and I want to keep it that way. This kind of lawsuit is intended to punish those who give Branson a bad name and put other abusers on notice that we're watching them."

In the lawsuit, Nixon is asking the court to order Festiva to refund more than $200,000 to consumers who were misled into buying timeshares from the company. The lawsuit also seeks preliminary and permanent injunctions, fines of up to $1,000 per violation of the law and reimbursement to the state for its investigative and legal costs.

 

[tombo]

Just a brief digression here...I have taken several graduate classes specifically focusing on Internet media and how it is changing our culture. One of the most important things I've learned and that should be a mantra for anyone who uses the Internet is that anyone can post anything Online, whether it is fact, fiction or somewhere in between. This can be a wonderful thing, or a terrible thing. Personally, I am a huge fan of citizen journalism and all forms of Web media; however, it's important to be discerning when considering the source of the information.

For example, some of you may see me as a biased source since I work for Festiva, which is understandable. BUT, you should also see me as a valuable source because I can provide facts that are often misinterpreted, misunderstood or construed by someone who does not know our company so well and is not getting the information directly from our executives. How sure are you that people who author personal blogs and websites are presenting the information in its truest form? This forum certainly gives a valuable voice to owners; however would it be fair to disregard the voice of the company of topic?

That being said, there is a LOT of misinformation in the world of the Web about what has been happening in the courts in both Missouri and St. Maarten. Here's some information to clarify a few things...

In Missouri, Festiva signed an AVC (Assurance of Voluntary Compliance) involving about 60 owners. This was not a judgment against us, nor was it ever a litigation, per se, because the suit was filed by an agency rather than individuals. The MOAG suit was prematurely filed in 2005, but was put on hold for three years since standard procedures were not followed. This culminated in the withdrawal of the suit and the signing of a voluntary agreement. Festiva recognized a problem that owners had, and did what we needed to do to fix it. It has been resolved.

I will follow up later with more information about the Atrium as there are specific questions about maintenance fees that I need to research; however, one thing I can tell you that I know for sure about that resort is that there is no class-action lawsuit against Festiva in St. Maarten.

This is an article saying that Festiva had to pay $339,000 on the Voluntary agreement which most people call a settlement. Please read all the way down to see responses from owners at the Atrium.

http://www.news-leader.com/apps/pbcs.dll/article?AID=/20080625/BREAKING03/80625030/-1/newsfront2

the official Missouri Attorney general web site
http://ago.mo.gov/newsreleases/2008/Agreement_with_Festiva_Resorts_LLC/




Please read the atrium owners web site and you can join the law suit if you are an owner there. The contact e-mail address is there along with some news.
http://atriumowners.com/index2.html



"430 owners representing 710 weeks have joined our legal action


It's time that the owners of The Atrium Resort had their own online presence! For now, our focus must be on addressing the assessments, fee increases, and tactics of the manager of the resort, Festiva. Increasingly, we are united in litigation against its arbitrary and anti-contractual administration. The heart of this site will be in the 'News' section where we hope to keep you posted on the litigation initiated by Rowie Percoco and joined by a very large number of owners. To add your name to the lawsuit, contact RowieP@aol.com - it's painless and immensely satisfying! "


I agree that not everything you read on the web is true. However I have read many articles detailing the Bankkruptcy of Festiva N V which is a St Maarten company owned by Festiva. The official Festiva response was that the company had no assets so no big deal. The articles about the MOAG agreement are numerous and they all say that festiva had to pay $339,000, a lot of money for an action where proper procedures weren't followed by the Attorney General's office. Festiva didn't seem to want to do what was needed to fix the owners problems until the MOAG got involved. The law suit by Festiva in St Maarten filed by Festiva to change owner's contracts is well documented too. I do appreciate you answering questions and explaining the company line, but I don't for one second believe that all the spin from Festiva is true while the articles on the web are false. Some think that I am a Festiva hater and that is fine. I have not posted a single thing that I don't feel is true from my experience, from news articles, and from other Festiva Owner's posts. I have not found a single post or newspaper article exonerating Festiva of any of the above or disputing any of the above. I am activelly exposing the facts I find so that Festiva might think twice before they start the assessments and MF increases at my resort. An ounce of prevention beats a pound of cure.

 

[jercal10]

Tombo: thanks for the link to ther Atrium. Here's what I found for "08 MF's

Studio: 2008 Maintenance Fee per unit $447
1 Bedroom: 2008 Maintenance Fee per unit $551
2 Bedroom: 2008 Maintenance Fee per unit $676
3 Bedroom: 2008 Maintenance Fee per unit $910
Penthouse: 2008 Maintenance Fee per unit $967

I could not get the spl assessment data to copy so here's a synopsis:
Total =$4.5 M

repay cash advances $827 K
upgrade to gold crown status$1.6M
BAD DEBT SESERVE $657k

The remainder being for identified projects like new refrig's etc..


I'd like to hear from the Festiva Rep as to the first two items. I assume the developer was feeding the reort cash to continue op's, and the "upgrade to gold crown " was for common areas, but would like to hear.

 

[tombo]

Knowledge is power. There are many, many Festiva owners at different resorts posting their displeasure on numerous web sites, not just a few here on TUG. The ability of all of these owners to post on all of these web sites allows the rest of us to be forewarned. Please read through all of these posts and look for any owners coming to Festiva's defense with good reviews or happy owner's stories.

Festiva bought the Atrium in 2005, and we can easily see how well that is working out for the owners there. Festiva only recently acquired peppertree/Wyndahm and is about to begin renovations, assessments, etc. at many of our resorts. You can be proactive and let Festiva know that we won't lay down and be assessed to death, or you can stick your head in the sand secure in the knowledge that the benevolent Festiva would never do that to the owners at your resort. The best predictor of future actions are one's past actions.

Discussions of assessments etc:

http://stmaartenstmartin-jeff.blogspot.com/2008/03/st-maarten-timeshare-owners-alert.html

Bankruptcy references:

http://www.timeshareforums.com/foru...nces-timeshares/68903-festiva-st-maarten.html

A forum with more happy Festiva owners:

http://www.tripadvisor.com/ShowTopic-g44160-i200-k808313-Festiva_Resorts-Branson_Missouri.html

Another Forum expressing joy of Festiva:

http://www.traveltalkonline.com/forums/showflat.php?Cat=0&Number=870722&Main=866789

Another forum discussing the 200% assessment. A commercial and residential property manager (on down in the posts) expresses his opinions on their handling of assessments, renovations, etc based on years of experience:

http://www2.gobeach.com/sxm/read.php?1,61769,page=3

This forum discusses how Festiva contacted people's companies who had posted complaints from their company e-mail address. Festiva figured they could get them in trouble at work since they couldn't defend themselves with facts. Nice tactic to contact someone's employer trying to get them in trouble or fired simply because owners are upset with your mgt of their vacation resort.

http://festiva-resorts.pissedconsum...o-rat-on-complaint-filers-20080221113613.html

 

[jercal10]

Tombo: Most of us bought TS with the expectation of going to nice places. I expect to be able to take my firends and family with me and not be embarrased.

Reasonable maintence and reserves for future expenses are required by many states. Condos have the traditonal battle of "build reserves now or pay later" Of course old people like myself want to pay later.


My concern is with Tamarack taken over a year ago in the Wyndham deal. Wyndham inherited a resort that was "bleeding " badly due to non payment of MF's . They had a spl assessment, but board still didn't raise MF's significantly.

I'm dead set against high fees to the" developer" or "owner"(festiva owns the recreational facilities), but all for reducing expenses to that required to operate and maintain a first class resort, and setting MF's to reflect those costs.

Anybody have expeience in MF's etc at Festiva managed USA fixed week resorts??

 

[FestivaRep]

This forum discusses how Festiva contacted people's companies who had posted complaints from their company e-mail address. Festiva figured they could get them in trouble at work since they couldn't defend themselves with facts. Nice tactic to contact someone's employer trying to get them in trouble or fired simply because owners are upset with your mgt of their vacation resort.

http://festiva-resorts.pissedconsum...o-rat-on-complaint-filers-20080221113613.html

This simply is not true. I've already posted about this situation, here it is again in reference to the person who made the posting on pissedconsumer.com:

This was a member of Peppertree/Equivest who was approached for an upgrade and ended up demanding back the money he had spent with Peppertree/Equivest years ago. Obviously, Festiva could not compensate for his purchase with another company; however, he chose not to accept our answer.

While he didn’t directly threaten physically harm to anyone, he threatened to “report” us and engaged in personal attacks against several employees, mostly via e-mail. He threatened to have the government monitor all of our communications with him. He claimed our e-mails were being monitored as he works for the government in his county of residence. His complaints escalated, and he complained to the NCAG and the MOAG making outlandish and incorrect statements.

I can vouch for this as I personally received an e-mail from him. I had never spoken with him or had any other prior contact with him. I did not even know who he was or what was going on when I received the e-mail. He found my contact information Online and sent me an abusive e-mail from a government e-mail address, to which I did not respond.

In response, we provided factual information to the member and both AG offices in writing. Both the Missouri and North Carolina AG offices consider the complaints ‘closed’ or resolved. Our General Counsel wrote a letter to both the County Manager and County Attorney in county where the member resides and works. The County Attorney was very concerned about what the member was doing, particularly using county property and threats, and they did a secret investigation of him. We do not know what, if any, disciplinary action has been taken against him, nor are we involved in any legal actions or disputes with him. It was shortly after this that the post in the Yahoo! group about our lawyers going to members' employers appeared.

 

[FestivaRep]

Atrium

Most of the misinformation that is out there right now is regarding the Atrium.

I have already posted about the bankruptcy announcement of FRI NV and how that was completely unrelated to both the Atrium and the court action that is taking place with certain Atrium members.

While there is talk all over the Internet about "hundreds" of Atrium members being involved in the "litigation," there is actually no litigation, and we are only involved in court action with four Atrium members. One of these members has gotten a few hundred others to follow him; however, the court is not recognizing a litigation against us or any kind of class action suit.

 

[FestivaRep]

Talk about spin and misinformation, I would strongly disagree that Festiva was not involved in litigation with the State of Missouri. Below is the 2005 press release announcing the filing of a lawsuit against Festiva in Taney County, Missouri. We all know that litigation progresses through the courts slowly. There is usually a discovery period and then settlement negotiations. It is only after the parties can't settle that a case goes to a jury or judge. Please tell us what "standard procedures" weren't followed. Why can't Festiva just fess up and admit what they did was wrong?

Yes, that is a press release from 2005. The initial lawsuit filed was withdrawn after being on hold for 3 years because it was filed prematurely by the MOAG (that being the standard procedure that was not followed by the MOAG). However; Festiva signed the Voluntary Agreement, and those 60 or so owners involved are getting their money.

I'm not sure why those who are not even involved in this particular situation and are not owners at this resort are so concerned about Festiva paying restitution to owners...

 

[FestivaRep]

I'd like to get back to specific issues and questions that have not already been resolved by the parties directly involved.

Jercal, what is your exact question about the Atrium SA? I will try to find answers for you.

Also, Jercal, in response to your query about our US resorts, we actually do not have any fixed week resorts, they are all based on the floating week system.

In 2005, we had a Special Assesment at our Church Street Inn resort in Charleston, and it took many people by surprise. However, when Festiva purchased that resort, it was on the verge of bankruptcy and may not have survived if we did not take action. At this point, half of the units have been completely renovated and we have gotten nothing but positive feedback from owners on the renovations.

Phase 1 of our Ellington resort had a small special assessment a couple of years ago due to owners' requests for improvements and interior renovations. Those units were renovated, and again, owners have been nothing but pleased.

You seem to understand what can happen to a resort when the money is not spent to keep it up to certain standards, or when owners do not pay maintenance fees, and unfortunately not everyone sees that. I have not yet heard of any plans for SAs at Tamarack, nor do I know what the '09 maintenance fees will be, but if there's anything else I can find out for you, please let me know.

 

[jercal10]

Festiva Rep:
Tamarack is a fixed week resort.

Thanks for all your inputs

 

[tombo]

Tombo: I just talked with our President to clarify some of the post quoted below, but I'm waiting on the exact numbers of the percentage of Phase 2 that the Festiva Adventure Club owns. Here's what I have so far:

- There are no Festiva employees on the BRV Phase 1 board.
- Wyndham previously held 3 seats on the Phase 2 board
- Festiva assumed these seats and would have reduced that number if the owners had voted as such
- Festiva and the Adventure Club will indeed pay their share of assessments for any renovations that take place, as they do at any resort that has developer-owned inventory

Thanks for your response. I am glad to know that there aren't any Festiva employees on the Phase 1 board since I personally don't think any board should have any developer's employees or mgt company employees on the board due to obvious conflict of interest.

You said that Festiva assumed the Wyndham seats (which I didn't agree with either) which doesn't have the same ramifications because Wyndham wasn't activelly selling or expanding Blue Ridge Village as Festiva is.
You then state that Festiva would have lowered the number of seats if the owners had voted as such in Phase 2. Phase 2 is the part of BRV that Festiva's officer (president I think) stood and said "We can do anything we want to in Phase 2 because we own 80% of the vote". After saying that at the annual meeting we can feel sure that the owners can't remove festiva members from the board because the owners who have Festiva Points aren't allowed to vote, Festiva votes because they actually own the points. To suggest that somehow the 20% of owners in phase 2 who have votes could unseat Festiva Board members elected by the 80% Festiva majority is laughable. As your president (or other officer) said at the annual meeting, you can do whatever you want with 80% of the vote.


Finally you make it sound like Festiva will pay a large share of the assessments Festiva levies. If one reads through the spin, your last statement sums it up, you will only pay assessments or MF's for the limited amount of DEVELOPER OWNED INVENTORY. BRV has been sold out for years so the members and owners who own almost all of the inventory will carry the weight of any increases or assessments. Festiva's inventory is mainly reposessed weeks, weeks deeded to or given to Festiva by owners wanting out, or trade in weeks given for points. Festiva votes to assess because the members can't, and then the members have to pay without ever having a say in the process. I would love to know what percentage of the total assessment at the resort that weeks owners and points members at phase 2 who will actually have to pay versus the percentage of the total assessments that festiva will pay on it's limited Developer Owned Inventory. The poor Festiva Points members won't even own anything after they pay for the renovations, Festiva will. I would like to have some work done on my house if anyone would like to pay for it, of course you won't own any percentage of my house but you can spend some time here (based on availability).