Annual Meeting, Scottsdale Pinnacle Owners Assn. (SDO)

[Quiet Pine]

I attended on October 10 and took notes. There was a buffet just outside with coffee, muffins and fruit. There were a little fewer than 50 owners in attendance. The meeting was called to order by Bill Bailey from Vistana in Florida. It moved along quickly to the election of Directors. President Jody Lee and Treasurer Steven Meyer were reelected to 3-year terms.

Association Update:

1. New TVs will be installed to allow upgrading from analog to digital cable.
2. Dishes, wine glasses, duvets, decorative pillows, washers/dryers were/will be replaced.
3. Elevators are being renovated and outdoor benches are being replaced.
4. There are a number of new games and events.

Financials are good and a big improvement from 5 years ago. MF collections are up from 80% to 94%, driven by renovations that attract new owners who DO pay MF. 1,500 accounts were in arrears 3 years ago, now down to about 600. Revenues are up and expenses are down. They will take back deeds in lieu of foreclosure.

Questions & Answers:

1. Pinnacle Association owns 20 unit weeks. It sells some acquired weeks to the developer (Vistana) and the HOA keeps some of the money in accord with the “inventory repurchase agreement.”
2. ILG owns Vistana & Interval International & Hyatt Vacation Ownership.
3. Why do we receive only $300 when we sell a week to Vistana since they resell it for much more? Can we make a better deal and get more for a week? President Jody Lee says we get $500 for each week plus all MF in arrears plus Vistana pays ongoing MF until the week is sold. In addition, there was a $450,000 upfront fee we received for Vistana having the right to sell weeks.
4. After major renovations, MF dropped $30. This year MF was up $17. The Board projects it to be flat going forward. But there is inflation, plus upward wage pressure, so nothing can be certain.

I had to leave before the meeting concluded, so there are further questions I didn’t get.

 

[grgs]

Thanks for the update! Glad to hear the financial situation has improved.

 

[bizaro86]

Thanks very much for posting this, I really appreciate it!

 

[dioxide45]

I suspect new buybacks by Vistana from the HOA are going in to the Sheraton Flex trust? If so, the MFs will always be paid going forward and will remove the chance of delinquency. If a flex owner goes delinquent, the other flex owners pay to make up the difference, but the HOA stays whole.

 

[Sugarcubesea]

I still love my SDO, it was the first TS I purchased and it’s been a winner for me. I love having the 2 bedrooms.