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[2008] Sandcastle Shift to "Festiva" Points [merged]

Sou13

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I've been advised by Sandcastle owners that the reporter did interview at least one Southcape owner but decided to focus on Sandcastle. I've also been advised by Lois Martin in the AGO that there have definitely been more than 34 complaints filed, and that they are currently being reviewed. Anyone who hasn't received an acknowledgment needs to contact the hotline to track down the whereabouts of the missing complaint.
 

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Interesting Lawsuits update: Florida AG and many players

March 11, 2010
Media Contact: Sandi Copes
Phone: (850) 245-0150


Attorney General Focuses Consumer Protection Initiative on Timeshare Resale Industry


~ McCollum announces 2009 was record-breaking year for consumer recoveries ~


TALLAHASSEE, FL – In continuing recognition of National Consumer Protection Week, Attorney General Bill McCollum today announced he is tackling growing abuses in the timeshare resale industry, beginning with the announcement of a significant settlement that could yield as much as $1.3 million in consumer refunds and the filing of a lawsuit against a major player in the timeshare resale industry in Florida. The Attorney General also unveiled ongoing investigations into at least 17 timeshare companies and their affiliates throughout the state for deceptive trade practices.

“Florida’s consumers are trying to make prudent financial decisions, but many timeshare resale companies are blatantly scamming people by promising sales or refunds and failing to provide services even after taking hefty up-front fees,” said Attorney General McCollum.

The statewide initiative was launched by the Attorney General’s Economic Crimes Division in 2009 in response to the growing number of timeshare resale complaints received by the Attorney General’s Office last year. Timeshare resale complaints have recently surpassed mortgage-related complaints as the most commonly reported consumer complaint received by the Office’s Consumer Hotline.

The lawsuit filed today against Resales Buy Owner.com, Inc. states the company engaged in a systematic pattern of deception that improperly induced consumers to pay up-front fees for timeshare resale services that were never provided. According to consumer complaints, the company would indicate it either had a buyer or renter interested in the timeshare and that there would be no problem renting or selling the timeshare within 90 to 120 days. According to the lawsuit, the company merely advertised the property listings, if taking any action at all, and allegedly charged consumers’ credit cards even after consumers opted not to do business with the company. The lawsuit seeks an order prohibiting the company from engaging in further deceptive conduct and seeks full restitution on behalf of victimized consumers, civil penalties and reimbursement for fees and costs. Two additional lawsuits are also pending against other companies.

The Attorney General’s Office also announced a significant settlement with Virtual Group, Inc., an Orange County company, resolving allegations the company failed to provide promised refunds to consumers. Virtual Group, which does business under the name Realty Trade, offered timeshare resale and rental advertising services to consumers looking to sell or lease their timeshare properties. As a result of the Attorney General's investigation, Realty Trade has already paid over $800,000 in refunds to 799 consumers. The company will also make another $500,000 available to consumers who make new refund requests.

Over the past year, the Attorney General’s Office has also reached settlements with six other timeshare resale companies obtaining total restitution to consumers of more than $298,000, with approximately $50,000 more in escrow to resolve future complaints in some cases. Several of these settlements contributed to a record-breaking $216 million in restitution for Florida consumers obtained by the Attorney General’s Office in 2009. Since 2007, the Attorney General’s Office has returned over $363 million in restitution for Florida consumers, several times more than the recoveries obtained over the previous four years.

In addition to the litigation and the settlement announced today, in recent months, the Attorney General’s Office has subpoenaed 17 timeshare resale companies and their affiliates over allegations of potentially deceptive business practices. Common complaints about timeshare resale companies involve the use of false and deceptive claims to entice consumers to pay up-front fees, including assertions that buyers are allegedly ready and willing to buy or rent the consumers’ timeshare. Companies also often allegedly fail to honor cancellation policies, misrepresent the actual services that will be provided to consumers, and fail to comply with elements of state and federal telemarketing acts.

Floridians who are considering listing their timeshare for sale or rent are encouraged to contact the Attorney General’s Office to inquire whether or not specific companies have complaints reported against them. Consumers can contact the Attorney General’s Citizen Services Division by calling the Attorney General’s fraud hotline at 1-866-9-NO-SCAM (1-866-966-7226) or by visiting the Attorney General’s website at http://www.myfloridalegal.com.

Pending litigation:
- American Marketing Group, LLC., located in West Palm Beach – lawsuit filed in January 2010
- Hicks, Inc., doing business as Universal Marketing Solutions and Creative Vacation Solutions, located in West Palm Beach – the Attorney General’s Office filed a lawsuit against these companies in October 2009. An Agreed Orders for Temporary Injunctive Relief was obtained against this company and its principals in January 2010, and further litigation is pending.

Companies subpoenaed:
- Executive Timeshare Marketing, Inc., located in Tamarac, Florida
- Coastal Timeshare Solutions, Inc., located in Boca Raton, Florida
- Worldwide Resorts Direct, Inc. and Worldwide Marketing Solutions of Palm Beach, Inc., doing business as Worldwide Timeshare, located in West Palm Beach, Florida
- TS Luxury Group, Inc., located in Lake Worth
- C& G Marketing Associates, LLC., doing business as Premier Timeshare Solutions, located in Palm Beach Gardens
- Nationwide Marketing Solutions, Inc., doing business as Magnum Advertising Services, Inc., located in Lake Worth
- International Resort Solutions, LLC., located in Lake Worth
- E.A.T. Sales LLC, located in Boca Raton
- Euroamerican Timeshare LLC., located in Boynton Beach
- Transatlantic Timeshare LLC., located in Boynton Beach
- Seabreeze Advertising Corp., also known as SBA, Corp., located in Daytona Beach
- Timeshare Market Pro, located in Davie
- International Marketing and Finance, located in Wellington
- Gold Crown Property Management, Inc., located in Dunedin
- Vacation Property Resales, Inc., doing business as BUYATIMESHARE.COM, located in Tampa
- Timeshare Only, located in Orlando
- PFS Concepts, Inc., doing business as US Vacation, located in Largo

Recent settlements:
- World Timeshares, Inc., located in Deerfield Beach – The Attorney General’s Office settled with this company in April 2009 and obtained $100,161 in consumer restitution.
- Timeshare Travels, located in Boca Raton – The Attorney General’s Office settled with this company in April 2009 and obtained $90,323 in consumer restitution.
- Vacation Property Trader, located in Deerfield Beach – The Attorney General’s Office settled with this company in May 2009 and obtained $8,447 in consumer restitution.
- Preferred Vacation Resorts, Inc., doing business as Preferred Property Services, Inc., Preferred Property Services.com, Inc., located in Clearwater – As a result of the Attorney General’s investigation into these companies, they ceased operations in April 2009, and the Attorney General’s Office obtained $36,000 in consumer restitution.
- D&D Vacations, Incorporated, doing business as United States Property Services,, located in largo – The Attorney General’s Office reached an agreement with this company last week and obtained $26,000 in consumer restitution.
- S.F.C. Group, Inc. doing business as TWA Resale, located in Orlando – The Attorney General’s Office settled with this company in March 2010 and obtained $37,226 in consumer restitution.

http://www.myfloridalegal.com/newsrel.nsf/newsreleases/705F60ACA911B5AB852576E300503590
 

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Mass. Attorney General lists Timeshare Resale scams top of complaints list in 2009

From Timeshare Users Group Guest Newsletter 3/25/2010:

"Mass. Attorney General lists Timeshare Resale scams top of complaints list in 2009

"Following Florida’s lead, the Massachusetts Attorney General reports that Timeshare Scams were at the top of their complaints list in 2009, this is becoming a countrywide epidemic! Hopefully it will spurn more Law Enforcement Agencies to begin going after these scams!"
 

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ANNUAL MEETING APRIL 24th, 2010 - NOON

Attention every Sandcastle Owner:

We have been told by Hagberg, after requesting the information, that the

ANNUAL OWNER' MEETING will be held on SATURDAY, APRIL 24th, 2010

at noon, at the SANDCASTLE RESORT.

No owner that our group is in contact with has received a notice of this meeting.

If you are an owner, or know other Sandcastle owner's

PLEASE plan on ATTENDING, and let other owner's know of the date and time.
 

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Attention every Sandcastle Owner:

We have been told by Hagberg, after requesting the information, that the

ANNUAL OWNER' MEETING will be held on SATURDAY, APRIL 24th, 2010

at noon, at the SANDCASTLE RESORT.

No owner that our group is in contact with has received a notice of this meeting.

If you are an owner, or know other Sandcastle owner's

PLEASE plan on ATTENDING, and let other owner's know of the date and time.

Again, this is incorrect. Notice of the Annual Meeting was sent to all owners in the newsletter that accompanied the maintenance fee bill.
 

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I Stand Corrected .... BUT

That letter, sent - when? - last October 2009 or November 2009 announced a meeting for April 24, 2010, well I guess I missed that reading the other lavish tales of the resort.

also said that a budget was included - it wasn't.

and it said owner's would receive a ballot in January 2010 - no ballot was received.

Also said a list of units for sale would be available to all owner's at the end of the year. Didn't receive that either. Or maybe you meant a different year?
Or maybe you don't have a license to sell them and you are waiting for that?

Certainly they are not on the website which is supposed to have sales info and an owner's page, since last summer,

but that isn't there either because the website construction has been dead in the water basically since it's first inception last June/July -
except for construction photos that get added -

wouldn't want owners to be able to contact each other.

Not really sure, what is real, what is not. Some things seem to be true, others appear to be just window dressing, pretend, a guessing game.
 

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More SANDCASTLE BS FROM NEVS

Today I received, in the mail, a letter from Sandcastle announcing new services/opportunities for vacationers:

It is 4 xeroxed pages (6 pg total if you count the backs)
So we paid for the paper and ink, envelopes, address labels
The personel time to address and stuff envelopes and the mailing
Cost $0.44 in postage o mail per owner

1) Contains letter of introduction about mgt plans for:
2) Menu for the Castle Grill - if they get a permit to reopen it
3) Food Survey for Fri night - leaving; or Sat arrival for would you want cookout/clambake/boxed lunches from the snackbar
4-5) Shopping service for groceries - 2 pages worth - ie. 2 liter Sierra Mist @ $3.98 or Cok 20 pz. $2.49. Hot dog buns $3.49 for 8, Jiff PB at $4.99, hot dogs, canned beans, spaghettios etc.
6) Activities page, what you might like ot be offered, sign up for - scuba, fly fishing, Whale watch, group wine tour, monument tour, tennis tournament, nightly movies, computer workstations, Wii game etc.


I wonder why this didn't include a reminder about the annual meeting?

I wonder why it doesn't contain a ballot for the annual meeting - ie. election of trustees, election of an owner to board of trustees which was supposed to be mailed prior to the meeting?

I wonder why it doesn't contain any information that owners have requested?

You have to pay postage etc to mail it back

Isn't that speciaal.

There planning computer stations and Nintendo Wii but cannot get the owner's section of the website working.

I wonder if this some requirement ordered by Festiva?????
 

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Sandcastle owners meeting reports

In anticipation of the Southcape owners meeting coming up Saturday, May 16 at noon I've compiled four reports from Sandcastle owners who were willing to share with Southcape owners. These reports are unedited so please don't fault me if there are typos:

Reporter #1:

I understand Cliff just stuck to his agenda during the meeting. To some questions he answered that he couldn't answer because he was not a lawyer. He says the association has a lawyer (I didn't know we had an association). He said we are the association. When someone asked who then is the association lawyer, he said he couldn't give out the name.
He passed out a financial sheet but the figures were all wrong.
He says Festiva only owns about 10% of Sandcastle weeks (hard to believe). Anyway, there was not much learned at the annual meeting. Much remains hidden.

Reporter #2:

Sandcastle had their annual meeting this past Saturday, about 70 owners were present. Following is a brief summary of the meeting:

The meeting lasted a little over three hours, net result was a range of next to nothing to zero.

The Advisory Committee was introduced, only a few at meeting. Then, by some owners the fire of “they were hand picked by Hagberg” who stated they were all volunteers. * was present and took some mouth by a few members of crowd. In reality, the Advisory Committee is the only real representation we have to getting our questions answered from the Trustees. So why are they being picked on by the unit owners? I believe that started some time ago with *.

Hagberg was personal enough, conducted a good meeting and was even complimented by a few people at the end of meeting. A lot of rehashing with no result and on difficult questions like: Special Assessment – why wasn’t the fee allocated between interval unit sizes as is the annual maintenance fee? when will a new election for Trustees by unit owners take place? How can the Trustees make property improvements and Special Assessments without the approval of the time share unit owners? Answers, THAT’S A LEGAL QUESTION FOR ATTORNEYS TO ANSWER. Hagberg stated the Attorney used by the Trustees is the unit owner’s attorney, and then Hagberg was asked, why isn’t he here to answer the legal questions. Answer, Blab Blab Blab.

Met * at meeting, very knowledgeable and easy to converse with. She passed out copy of unit owner contract, sale of deeded week for points, she was attempting to help owner get back deeded week which had been exchanged for points. Title of contract “NEW ENGLAND VACATION SERVICES FESTIVA ADVENTURE CLUB MEMBERSHIP APPLICATION”!!


Reporter #3:

The same old same old, Cliff a bit more secure with himself, so a bit less flamboyant, able to allow simple questions about the agenda he printed out, but not able to stretch himself beyond. Also, he's not a lawyer so he can't understand anything else to answer.
He will save the most important info for last when everyone is bursting out of their seats to be finished.

Reporter #4:

Here are my notes from the annual meeting. I tended to concentrate on the areas of my own self interest, so I didn't get every piece of information. I also didn't stay for the entire Q&A after the meeting.

Here are my notes:

Cliff opened the meeting by saying that it couldn’t be taped. He had an agenda and indicated that he would take questions on the agenda but anything else would not be answered until after the meeting adjourned.

First item of business was the Owner Advisory Committee. * recommended that the named be changed to Management Advisory Committee because the members were not elected and Cliff accepted this suggestion.

Financial Report

2009 Budget

For 2009, the actual figures were close to the projected figures except in the case of collections. Delinquenices are in the range of $3.5-4 M. Cliff thought he would collect $100,000 from delinquent accounts but only collected $27,624. 30-35% of units are delinquent. Collections have been turned over to Monterey Financial Services in CA. I googled them and they seem to be a pretty shady company.

Salaries and wages were $604,772.

General and Administrative costs were $209,963.

Total expenses were $1,455,321.00 and there was a profit of $41,345.77.

The 2010 Budget was presented but there was a lot of confusion because it became clear that the math was all wrong. The budget said that there was projected income of $25,000 from telephone reimbursement but the actual income from last year was only $410. Cliff tried to explain this as better efforts at collecting reimbursement until he figured out it must be a typo.

With numerous people asking questions about the outlandish telephone income and the math errors, Cliff made half hearted excused and then quickly moved the discussion on by saying "I'll send a corrected budget." We did move on ..... and never questioned him about the estimates on the income from maintenance fees which he projects are going to decline by an astounding 30%! Last year Cliff claimed income of $1,396,793 from maintenance fees. This year he is projecting only $948,000 due to "the economy and aging ownerbase." This is a decrease of $428,693 or 30% of last years total. Doesn't this have serious implications for the viability of the resort? Where did all the owners go in one year? Were there huge numbers who defaulted due to the special assessment? Couldn't it mean that our MF will increase by another 30%? It is hard to believe that we were so confused by the budget errors that Cliff was able to quickly present this and move on with only a few questions that got lost in the shuffle. I would not put it past Cliff to have manipulated this portion of the discussion by deliberately creating confusion.

Administrative costs are projected to be only $118,615.00 compared to $209,963 last year. No explanation for this.

Expense for real estate taxes is increasing due to the change in the accounting system from fiscal to calendar year (3 payments will be posted for 2010 instead of 2 but will go back to 2 payments per year after that). Cliff expects increased rental income ($210,000 for 2010 up from $60,000 last year) because he will be renting units that are delinquent even if they haven’t been foreclosed. He also expects $50,000 income from renting the Annex.

Cliff projected a profit of $4026 but it looked like it would be wiped out when math errors were corrected. Cliff said he was not a math whiz. He will send a corrected budget. Cliff claims that Festiva pays all maintenance and special assessments on their units. Out of a total of 4600 units Festiva owns about 500. Cliff said that NEVS does not pay MF and assessments on their units because the previous owners never did (although as we know the Condo documents say they should.)

Renovations. Royal Coachman building has been shingled, new roof, decks and railings. The Annex and Sunset room are scheduled to be completed within the next couple of weeks. Total expenditures to date are $1,193,657 which is $73,000 under budget. Interior reovations will be scheduled for after this season.

The cost of the septic system is less than anticipated. The $100,000 upfront cost to the town isn’t necessary. The total cost (about $850,000) will be paid over 20 years and added to the annual maintenance fee. Cliff said anything money left over would go into a reserve fund so that there would not have to be special assessments in the future.

Question was raised about how the special assessment was calculated. Cliff once again said it was divided by 3300 because that is about how many people he expected would pay the assessment. Point was raised that according to the Condominium documents this in no way conforms to the way the assessment is supposed to be calculated . Cliff he was not able to comment on this because it was a legal point and he is not a lawyer. Question was asked why the lawyer wasn’t there. Cliff said no need for the lawyer to be there. He would not give the name of the lawyer (who according to Cliff is the lawyer for the Association) because he doesn’t want people calling due to the expense. Cliff completely stonewalled on this issue.

Delinquent Units: Cliff has a plan to go to Small Claims court and get ownership of delinquent units. There are 300 summer units that are delinquent and this is valuable property. He plans to auction them in blocks to big companies (would that be Festiva?)

Cliff also hopes to make a deal with owners of the restaurant who are deeply in arrears to get that unit back without having to pay them anything. He estimates it is a $400,000 piece of property.

Cliff has plans for increased activities and amenities such as a Tiki bar, clam bakes, cookouts, etc. All will have fees attached and be self supporting or make a small profit.

Suggestions were made for ramps to the beach. I pointed out that this would be an improvement and needed approval of owners. Cliff referred to me as "Ms Lawyer."

Cliff brought up the fact that off season units only pay half the annual maintenance fee and he would like to change this as he doesn’t think it is fair. Attendees with off season units noted that the fees can’t be changed for current owners and Cliff agreed but he would like to change the Master Deed so that fees would be higher for new people buying units. (I have an off season unit so I am particularly interested in this. It seems like the off season units are a thorn in Cliff's side and perhaps losing money overall. There were only about 6 people at the Royal Coachmen when I was there in the 3rd week of Oct.)

I only stayed for a portion of the question and answer session following the meeting. I once again raised the question of the special assessment and once again Cliff refused to concede that the special assessment was calculated incorrectly. I told him I had sent two certified letters that he failed to respond to and asked what I should do next. Cliff said “Get a lawyer.”

I also confronted Cliff with the documents that verified NEVS involvement in selling Festiva Points. Cliff admitted that NEVS was an agent for Festiva in the sales of Festiva points but that they were separate companies. (I believe that in the past, Cliff has denied that NEVS was involved in sales of Festiva Points.)

Cliff maintained that anyone could make an appointment to view all the records and denied that he had refused to make appointments with the Soparkars last year despite many attempts on their part. "Not true" according to Cliff.

At this point, I felt the Q&A was going no where so I left. I would love to hear from anyone who stayed.
 
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ChrisH

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Get your facts straight

"The Advisory Committee was introduced, only a few at meeting. Then, by some owners the fire of “they were hand picked by Hagberg” who stated they were all volunteers. Marie ? was present and took some mouth by a few members of crowd. In reality, the Advisory Committee is the only real representation we have to getting our questions answered from the Trustees. So why are they being picked on by the unit owners? I believe that started some time ago with Chris ."

To Ele/SOU 13:

I have not had any problems with Marie and I think she is doing her best despite adversity she has faced. Nor have I 'picked' on her.

If you're going to use my name, get your facts straight.

ChrisH
 
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Sou13

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In anticipation of the Southcape owners meeting coming up Saturday, May 16 at noon I've compiled four reports from Sandcastle owners who were willing to share with Southcape owners. These reports are unedited so please don't fault me if there are typos:
I've compiled four reports from Sandcastle owners who were willing to share with Southcape owners. These reports are unedited!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
 

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I have not had any problems with Marie and I think she is doing her best despite adversity she has faced. Nor have I 'picked' on her.

If you're going to use my name, get your facts straight.

ChrisH
You and anyone else who was at the meeting were asked to post your own reports.

These reports are of special interest to Southcape Resort owners in anticipation of the Southcape owners meeting coming up Saturday, May 16 at noon! That's 2 weeks from today!

Since I was not at the meeting I have no way of knowing what happened, can only copy and paste what reports I've received.
 

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If you don't know the facts - Don't use my name

You and anyone else who was at the meeting were asked to post your own reports.

These reports are of special interest to Southcape Resort owners in anticipation of the Southcape owners meeting coming up Saturday, May 16 at noon! That's 2 weeks from today!

Since I was not at the meeting I have no way of knowing what happened, can only copy and paste what reports I've received.

TO: Eleanor/Sou13

As you admit, you don't know the facts, weren't there etc. then you have no right to post accusations with a name attached unless you can confirm it.

Simple courtesy. Ought to know better.

ChrisH
 
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Classylassy523

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Caution should have been used

Ele, your eagerness to demonstrate your ability to have an 'in' on the happenings at Sandcastle, you forgot or didn't think it important to verify your information, especially information that was used in a pointing finger, accusatory manner.

Maybe you should stick to reporting on the happenings at Southcape and leave reporting Sandcastle issues to those who own there. I don't understand why you felt it necessary to garner information to post here on a Sancastle thread. There are Sandcastle owners, who if they felt it necessary, could have posted their own thoughts and opinions, and not have their words filtered through you.
 

Classylassy523

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You and anyone else who was at the meeting were asked to post your own reports.

These reports are of special interest to Southcape Resort owners in anticipation of the Southcape owners meeting coming up Saturday, May 16 at noon! That's 2 weeks from today!

Since I was not at the meeting I have no way of knowing what happened, can only copy and paste what reports I've received.

If these reports are so important to Southcape owners, then why are they not posted on the Southcape thread or why didn't you email them directly to the owners on your Southcape list?

What was your purpose of posting them on this Sandcastle thread?
 

Sou13

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I've requested that Southcape owners or interested parties post to the Southcape Resort discussion rather than rely on me to keep it going. These discussions are open to all TUG members and guests and are public.

I regret any reactions that have been caused in my haste to get them out into the public domain, which is where they belong.
 

ecwinch

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If these reports are so important to Southcape owners, then why are they not posted on the Southcape thread or why didn't you email them directly to the owners on your Southcape list?

What was your purpose of posting them on this Sandcastle thread?

Perhaps because the information might be of interest to Sandcastle owners, and to other TUG members who are interested in the tactics that developers use when owners attempt to organize.

Not sure why you seem to be critical of her doing so. What purpose is furthered by her NOT posting the reports?
 

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Thank you!

Thank you, TUGBrian, for editing those offensive posts!

Thank you, ecwinch, for your continued interest and contributions to these discussions!

Thank you, most of all, to the Sandcastle owners who were willing to share their observations or reports of the 2010 meeting!

There are many observations which should prove useful to Southcape owners in preparation for the upcoming meeting May 15. I'll have to direct attention to them by posting a link.
 
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