I had originally emailed Global Calgary to do a story on it and this was the reply I sent to Tony in regards to the "angle" of the story:
Hi Tony
I appreciate you investigating this issue but I think the angle in which Northwynd has responded is a total snow job.
As with the calculations I made below - $4200 x 50 weeks is $210,000 (This is allowing for 2 weeks to be unaccounted for yet). You can go out and buy a 1200 sq ft condo for $200,000 in smaller communities without a problem and that includes the cost of the land and profit for a condo builder. Let's assume that Northwynd is being truthful about the pipes needing to be replaced (there is a 15% management fee built in, so 85% of $210,000 = $178,500), it's going to cost about $178,500 to replace pipes ? Does that not sound excessive from doing the simple math ? How much were these timeshares to build in the first place not including the land ? I'm sure it did not cost them $200,000 for building costs alone.
This is the other thing that does not make sense : there is a separate part of the Fairmont resorts that are not part of Northwynd, called Fairmont Mountainside - these units I believe were the first to be built by Fairmont and are managed by a different company than Northwynd. Their maintenance is LOWER and there is no plans for a major overhaul. Riverside, Riverview and Hillside were built after Mountainside by the same developer. If these problems exist to the extent that they are claiming, I would expect the following :
1) Mountainside would need the same renovations
2) Mountainside's maintenance fees would be closer to ours, but they are in fact lower every year
3) How does Mountainside manage with lower maintenance fees every year and we were supposed to pay 300-400 more per yr as Northwynd claims, yet our buildings are in financial difficulty ?
4) The quality of construction to be generally the same/similar in all four developments.
These four sections / buildings are all part of the same resort, how can one run so well on lower fees and no renovation overhaul but the other three are in shambles ? If they need such a huge renovation, would we not expect the resort to be in very non-livable conditions if $178,500 in renovations is required ? I personally have not been to the resort, but if the resort was in THAT POOR OF CONDITIONS, how do we not have complaints from those staying at the timeshare ? Shouldn't there be a flood of complaints that the place is run down and needs a major overhaul ?
Please note that in our year maintenance fees there is a build in reserve fund of 15% that they collected every year, so how can it be that so much is needed ?
The release fee is not something that is part of the original contract of purchase people signed. In fact, all of them state that if they are 16 months behind in payments, it is deemed that the owner has sold it back the to resold at a fraction of the price. It does not state anywhere that an owner must pay a fee. If you surrender the unit, the unit would be removed from the timeshare trust and NOT renovated - so what happens to the unit and land ? It becomes the property of Northwynd and what do you suppose they are going to do with it ? Fix it up and sell it as a condo probably with a fraction of the money from the renovation fee. $3300 x 50 = $165,0000. I think that will be easily done for less than 5 % of that cost for what each unit may need.
Anyways, I think Northwynd has spun this to whitewash the real facts. I am not in construction, but the numbers don't add up to me.
If you would reconsider the angle with an update after further investigating, that would be appreciated as all of these facts can be easily verified.
Thank you
On 2013-05-27, at 3:57 PM, Tony Tighe wrote:
I am doing a news story about this.
Please send me a phone number so we can talk.
Tony Tighe |Consumer Reporter/Global TV | (403) 861-8129
tony.tighe@globalnews.ca
222-23rd St NE |Calgary, Alberta |T2E 7N2|
-----Original Message-----
Sent: Monday, May 13, 2013 5:05 PM
To: CICT News Tips
Subject: Timeshare Fraud ?
Hello
I was wondering if your station could do a story on timeshare fraud ? Currently there is a situation with Sunchaser Villas in Fairmont BC where the management company Northwynd is trying to give every deed owner a special assessment of $4200 per week for renovations that they are "planning" to do on the resort. On a simple math basis -
$4200 x 50 weeks = $210,000 to renovate a 2 br unit (approx 1200 sq ft ?)
The amount seems excessive and at this amount, you can re-build the whole complex from scratch. Owners are not being given a choice and they are being forced to pay this or pay $3200 and you can walk away from your deed. For those surrendering their units, Northwynd plans on applying to the BC Supreme Court to change the terms of the contracts that allows them to remove units from the resort and make it smaller. It seems that if they can get enough to surrender their units, they can still use the $3200 per week to do some minor renovations and try to sell the units individually or create another timeshare possibly.
Many of the owners paid anywhere from $15,000-$35,000 for their units in the first place plus yearly maintenance which is about $950 per year (this includes a reserve fund already). There is no provision in the contracts for a renovation as they are contemplating.
The issue is that they have done this before and run off with the money leaving many timeshare owners with nothing :
http://www.tripadvisor.com/ShowTopi...as-Puerto_Vallarta_Pacific_Coast.html#6019510
http://www.redweek.com/forums/messages?thread_id=17251
http://www.complaintsboard.com/complaints/rancho-banderas-c3151.html
There is a huge discussion thread about the renovations and a class action suit :
http://www.tugbbs.com/forums/showthread.php?t=182857
Here is the Sunchaser site detailing the renovation project
http://sunchaservillas.ca/renovation-program/
Do you think this is something Global would look into a bit more closely ?
Thank you