komosatp
TUG Member
Sisyphus here...fighting the fight that I have no expectation of ever winning.
Anyway, since we have a new board at HRA I thought I'd raise the issue that I raised in this post once again. I have more ammo on my side now that Atlantis publicly advertises that The Cove is the summa-cum-laude of Atlantis towers.
Here's the text of my letter:
I'm not a lawyer...but I could play one on TV. I'll keep you all updated on what happens.
Anyway, since we have a new board at HRA I thought I'd raise the issue that I raised in this post once again. I have more ammo on my side now that Atlantis publicly advertises that The Cove is the summa-cum-laude of Atlantis towers.
Here's the text of my letter:
Dear Directors:
I continue to be concerned about Harborside Owners & Guests being prohibited from accessing amenities in Phase III of Atlantis, Paradise Island. As you may know, Atlantis is restricting access to two pools on “PHASE III AMENITIES” land (as defined in Exhibit C of the “First Amendment to Use and Access Deed”, dated August 29, 2006). It is also claiming that the Cove Beach “is reserved” for guests of The Cove.
These two pools (Cascades and Cain) and the Cove Beach are located on land denoted with cross hatching in Exhibit C of the “First Amendment to Use and Access Deed”. It is clear that Atlantis is violating the terms of Use and Access Deed by restricting Harborside owner access, and that it is in the best interest of Harborside to vigorously assert our access rights to the entirety of Atlantis’ grounds.
In 2007-08, I alerted the board to my concerns about this issue. At the time, the board chose not to further escalate the matter for several stated reasons, though only one was legally significant: Atlantis’ position that rooms in The Cove had not replaced the “Royal Towers Rooms as the Atlantis Resorts’ premier luxury Hotel Rooms”.
New Developments
Since my letters in 2007-08, Atlantis has publicly changed the way it classifies The Cove amongst its hotel towers. Given the way it now classifies The Cove, it can no longer, in good faith, deny access to Harborside guests: Atlantis is now explicitly advertising The Cove as the unequivocally superior category of accommodations at the resort:
By virtue of the agreements between Harborside and Atlantis, Atlantis should be classifying Harborside owners and guests as if they are in the same category as Cove guests, and granting them access to the same amenities. While it is within Atlantis’ prerogative to re-classify hotel guests in any manner it sees fit, it is compelled by the agreements it made with Harborside to treat Harborside guests as if they were guests of “the Atlantis Resorts’ premier luxury Hotel Rooms”. Today, the premier luxury hotel rooms are indisputably at The Cove.
- On Atlantis’ website: Stylish and dynamic, The Cove offers the ultimate escape within the world of Atlantis
- In a pamphlet available at atlantismeetings.com: Most luxurious amenities and services
- In a TravelZoo August 2010 Promotion: $199 ... Royal Towers -- 4-star, in the heart of the action near the casino; $249 ... The Reef -- 4-star beachside studios with a kitchen; $349 ... The Cove -- 5-star all-suite resort with an adults-only area;
While access to two pool areas might seem to be a minor issue, the failure of the association to vigorously defend its access right might allow Atlantis to draw new lines in areas that are much larger (such as the Cove Beach).
Access Agreement and ‘Premier Luxury Hotel Rooms’
It is clear from the original “Use and Access Deed” (dated January 27, 2000) that the possibility of a higher level tower being developed by Atlantis was considered and integrated into the access deed agreement:
Section 1.1.4 of the “Use and Access Deed” specifically defines what Atlantis Guest means in the context of the agreement and assures Harborside owners that their access will always be a premier level of access were Atlantis to build a more luxurious tower than the Royal Towers:It is clear from these definitions that Harborside guests were always intended to have access rights equal to the highest group of accommodations at Atlantis. Atlantis did not reserve the right to re-classify Harborside guests to anything other than ‘premier’ status. And ‘premier’ now means guests at The Cove, not the Royal Towers.
1.1.4: Atlantis Guests shall mean any guests, invitees or licensees of the Atlantis Owners, occupying Hotel rooms at the Royal Towers at Atlantis (“Royal Tower Rooms”), or any such other Hotel Rooms as may be intended to replace the Royal Towers Rooms as the Atlantis Resorts’ premier luxury Hotel Rooms. [Emphasis added]Furthermore, the original “Use and Access Deed” and the “First Amendment to Use and Access Deed” (dated August 29, 2006) define what access Harborside Owners and Guests have to Atlantis’ facilities. These specific agreements insure that Harborside Owners and Guests have all the same access and use rights as Atlantis hotel guests in the ‘premier’ tower of the resort. In the original “Use and Access Deed”, section 2.1 enumerates the rights Harborside guest will have:
2.1: …when a Permitted User is in occupancy of a Unit or any portion thereof, such Permitted User shall have the right, liberty and privilege to access and use the Atlantis Amenities in common with, and upon the same terms and conditions, and subject to the same regulations, as shall from time to time be generally applicable to Atlantis Guests.
Implications
If Atlantis continues to unilaterally classify Harborside owners & guests, then the Harborside associations can no longer consider Harborside’s access ‘premier’, because the level of access would be subject to Atlantis’ prerogative. One would have to view the future of the relationship between Harborside and Atlantis as uncertain, and this significantly lessens the value of our asset at Harborside. In addition, owners who choose to rent their units cannot in good-faith advertise Harborside units as having complete access to Atlantis.
Furthermore, the spirit of the original agreement (and the amended agreement) between Harborside and Atlantis was intended to secure permanent premier access by Harborside to Atlantis’ grounds and amenities. Atlantis should be erring on the side of giving too much access to Harborside owners and guests, not restricting us from certain amenities. If they do not view the relationship this way, then that fact intrinsically indicates how important it is for the various Harborside associations to not allow Atlantis to act unilaterally on these matters.
Remedy
Fortunately, there is a simple remedy to this situation. Atlantis can grant access to these areas in the same manner as they grant them to Cove guests. Alternatively (and far more complicated), Atlantis and Harborside can re-negotiate the access agreement, refund a material proportion of the access fees paid since the opening of Phase III, and compensate owners for the diminished value of the access agreement.
If Atlantis no longer wants to classify Harborside guests as ‘premier’, I expect the associations’ boards of directors to act in the best interest of its owners, and seek appropriate compensation from Atlantis. Should Atlantis maintain the nonsensical position that the Royal Towers are still the ‘premiere’ accommodations at the resort, then I urge the board to resolve this dispute through litigation.
I'm not a lawyer...but I could play one on TV. I'll keep you all updated on what happens.