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Simpson Bay (Old Pelican) offering deedbacks for 1 month
- Thread starter 5finny
- Start date
We did that last year and were glad we did; to much upheaval and uncertainty for us. We paid next to nothing for it, enjoyed it for 10 years and got some fabulous trades with it. There is talk that Hard Rock may be purchasing the resort. Other talk says the courts have sided with the unions regarding keeping employees and their pay rates from Pelican and that the resort may close again because of it.
Was this a letter or an email...I did not get that?
Thanks.
I really need to read and catch up. it seems to me that someone whould buy it out. Its a nice property, but honestly, i really havent been keeping up. It sounds like I need to do some reading and get up to speed.
email today
Dear members,
As you likely know by now, Simpson Bay Resort is engaged in litigation with the WIFOL labor union. The core issue is whether Simpson Bay Resort should be forced to assume collective labor agreements entered into by the Tenant's Association Pelican Resort Club over a decade ago. On April 2, 2012, the local court in St. Maarten ruled that Simpson Bay Resort did, in fact, have to assume that labor agreement. This was the third time the local court had made such a ruling -- the previous two times, the appellate court overturned the verdict. In this most recent decision, the lower court in St. Maarten not only ruled once again that Simpson Bay Resort was forced to assume the labor agreement, but also ruled that nearly a million dollars in back pay and severance pay to workers must be paid immediately, plus an additional US$50,000.00 for supposedly "damaging" the labor union's reputation. The resort is also being fined US$5,000 per day for every day this amount is not paid.
As we previously informed you, we immediately appealed the verdict. In the meantime, we petitioned the appellate court to "freeze" this verdict. The reason for the freeze request was as follows: with an active verdict, the WIFOL union could immediately seize the operating accounts and other assets of the resort management company. Without operating accounts, the resort cannot operate, so any such action from WIFOL would cause the resort to close.
On April 26, 2012 the Appellate Court denied our request to freeze the lower court verdict. The court, in doing so, did not say our appeal was not valid. Instead, it pointed out that it was not permitted to review the entire file, and could only freeze the verdict if an obvious mistake appeared within the limited information the appeals court was allowed to review. Our main appeal case is scheduled for hearing on June 27. It is our opinion that the lower court ruling is, like previous rulings regarding the WIFOL labor union contract, deeply flawed, and we expect this latest ruling to be overturned once again.
However, until the appellate court considers the matter in June, we are in a precarious position. As mentioned previously, WIFOL could execute on its judgment and freeze the management accounts at any time, leaving the resort with no way to pay its workers, utilities, etc. WIFOL has also threatened severe "social consequences," and “industrial actions” which we take to mean that WIFOL will attempt to disrupt the operation of the resort.
The resort operates on a yearly budget. This year, that budget was formulated in 2011, and formed the basis for setting the current level of Resort Maintenance Fees (RMF) and the Budget Recovery Special Assessment (BRSA). The budget for the year did not include payment of salaries and severance under a decade old labor contract that Simpson Bay had never adopted. Neither Simpson Bay nor its owners have the funds to pay the WIFOL verdict. Therefore, to balance the budget, Simpson Bay has two choices: Assess the membership once again, or seek additional funding from outside sources.
We do not think it is fair to assess the membership again. First, another assessment will drive more members away, making it necessary to increase the remaining member's share of the fees just to keep the resort open. Under this scenario, the RMF will become unreasonably high. Additionally, if we assess the membership and subsequently win the appeal, there is no guarantee WIFOL or its members will ever return the funds paid to it, so your money will be lost.
Alternatively, we can seek outside funding. You may have heard about a purchase of the resort by the Seminole Tribe for establishment of a Hard Rock resort; however, the potential purchaser has indicated in writing that it will not purchase the resort while the labor issue is pending. We are seeking additional funding, but as you can imagine it is not easy to find funding for a resort that has gone through a foreclosure, a targeted negative publicity campaign by a former tenant board, and a major labor dispute all in the last 24 months!
We will continue to work to obtain outside funding and continue fighting the appeal. If the resort is forced to close because of the labor union's action, we will be able to give you at least two weeks notice, and possibly more notice than that. In addition, we are in the process of making contingency plans with the exchange companies so that everyone will have a place to stay if the resort is forced to close. The resort closed once before very abruptly, disrupting numerous members' travel plans and causing great expense to some - we are committed to making sure that does not happen again.
Thank you for your continued patience and support in these difficult times
Dear members,
As you likely know by now, Simpson Bay Resort is engaged in litigation with the WIFOL labor union. The core issue is whether Simpson Bay Resort should be forced to assume collective labor agreements entered into by the Tenant's Association Pelican Resort Club over a decade ago. On April 2, 2012, the local court in St. Maarten ruled that Simpson Bay Resort did, in fact, have to assume that labor agreement. This was the third time the local court had made such a ruling -- the previous two times, the appellate court overturned the verdict. In this most recent decision, the lower court in St. Maarten not only ruled once again that Simpson Bay Resort was forced to assume the labor agreement, but also ruled that nearly a million dollars in back pay and severance pay to workers must be paid immediately, plus an additional US$50,000.00 for supposedly "damaging" the labor union's reputation. The resort is also being fined US$5,000 per day for every day this amount is not paid.
As we previously informed you, we immediately appealed the verdict. In the meantime, we petitioned the appellate court to "freeze" this verdict. The reason for the freeze request was as follows: with an active verdict, the WIFOL union could immediately seize the operating accounts and other assets of the resort management company. Without operating accounts, the resort cannot operate, so any such action from WIFOL would cause the resort to close.
On April 26, 2012 the Appellate Court denied our request to freeze the lower court verdict. The court, in doing so, did not say our appeal was not valid. Instead, it pointed out that it was not permitted to review the entire file, and could only freeze the verdict if an obvious mistake appeared within the limited information the appeals court was allowed to review. Our main appeal case is scheduled for hearing on June 27. It is our opinion that the lower court ruling is, like previous rulings regarding the WIFOL labor union contract, deeply flawed, and we expect this latest ruling to be overturned once again.
However, until the appellate court considers the matter in June, we are in a precarious position. As mentioned previously, WIFOL could execute on its judgment and freeze the management accounts at any time, leaving the resort with no way to pay its workers, utilities, etc. WIFOL has also threatened severe "social consequences," and “industrial actions” which we take to mean that WIFOL will attempt to disrupt the operation of the resort.
The resort operates on a yearly budget. This year, that budget was formulated in 2011, and formed the basis for setting the current level of Resort Maintenance Fees (RMF) and the Budget Recovery Special Assessment (BRSA). The budget for the year did not include payment of salaries and severance under a decade old labor contract that Simpson Bay had never adopted. Neither Simpson Bay nor its owners have the funds to pay the WIFOL verdict. Therefore, to balance the budget, Simpson Bay has two choices: Assess the membership once again, or seek additional funding from outside sources.
We do not think it is fair to assess the membership again. First, another assessment will drive more members away, making it necessary to increase the remaining member's share of the fees just to keep the resort open. Under this scenario, the RMF will become unreasonably high. Additionally, if we assess the membership and subsequently win the appeal, there is no guarantee WIFOL or its members will ever return the funds paid to it, so your money will be lost.
Alternatively, we can seek outside funding. You may have heard about a purchase of the resort by the Seminole Tribe for establishment of a Hard Rock resort; however, the potential purchaser has indicated in writing that it will not purchase the resort while the labor issue is pending. We are seeking additional funding, but as you can imagine it is not easy to find funding for a resort that has gone through a foreclosure, a targeted negative publicity campaign by a former tenant board, and a major labor dispute all in the last 24 months!
We will continue to work to obtain outside funding and continue fighting the appeal. If the resort is forced to close because of the labor union's action, we will be able to give you at least two weeks notice, and possibly more notice than that. In addition, we are in the process of making contingency plans with the exchange companies so that everyone will have a place to stay if the resort is forced to close. The resort closed once before very abruptly, disrupting numerous members' travel plans and causing great expense to some - we are committed to making sure that does not happen again.
Thank you for your continued patience and support in these difficult times
Thanks so much....so what us everyone thinking? I am tempted because we just don't use the week.....I deposit it almost very year but since I have other weeks, that we go to, I don't need the trades. I hate to part with it. It's a good trader since it's Christmas week, but this seems like an easy way to move on.
I gave mine back a couple of years ago including Xmas week studio unit which traded for 2BR gold crown resorts, but with constant maintenace fee increases, special assessments, resort closings and constant drama I am sooo glad I got rid of this plus another week i owned there. Paid next to nothing for it right before Royal Resorts took over management and figured they were a good company that would do right by the owners.
Never did turn out that way so I tossed in the towel after about 8-10 years of great trades.
Get out as quickly as you can cause I doubt that it will ever be a place without all that turmoil, no matter who takes over. Just look at the 25 year history of this resort where owners have been screwed over multiple times by whoever was in charge.
Excellent for you. I will call them. I got that email today and all the updates,but I just dont recall the one about the deed back. I will call on Monday and see what I can find out. i am current on everything so hopefully its simple.
Best,
Cheryl
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Deed back complete!
Thanks so much for the post. Why I never thought to do that before, I don' t know. I was current on all my payments, so I literally just signed the letter and it was done in a bout a 10 days. Thanks!
Thanks so much for the post. Why I never thought to do that before, I don' t know. I was current on all my payments, so I literally just signed the letter and it was done in a bout a 10 days. Thanks!