[ 2012 ] Special Assessment on the Horizon [Alii Kai II ]

[Kauai Kid]

Annual Alii Kai II owners can expect a special assessment approximately $2,500-$2,7000 for each week owned. Should arrive in the mail in April 2012.
Note: These are the Alii Kai II units managed by Grand Pacific Resorts.

I've seen one upgraded unit:

1. New Kitchen with Granite counter, recessed lighting, stainless steel appliances, new chairs and tables, remote control widescreen tv remote control ceiling fan.

2. Living room: New Leather sofa and chairs, new end tables, new art work, new coffee table, and new mirrors, remote control 60" tv
and remote control fan.

3. Guest bedroom: New bed, mattress, end tables, remote control ceiling fan, wall paper, art work. remote control 42" tv

4. Guest bath: Everything new has both shower and tub

5. The master bedroom has been moved from one side of the condo to the side facing the Pacific and is larger! All new furniture, King sized bed and mattress, remote control 60" tv and remote control ceiling fan. Built in high intensity reading lights in the king sized bed headboard.

6. The master bath furnishings are all new granite counter tops for the sinks with the highlight being the walk in shower with 3 nozzles, grab bars, and a sit down spot. Extremely elegant but words fail me. The bath tub has been removed and that is how they got the bigger master bedroom.

Compared to the $5800 special assessment at the Point at Poipu and what little the owners get the $2800 special assessment at Alii Kai II is a real bargain--you get a brand new condo.

There is new furniture for the Lanai also.

The pool and hot-tub have been completely redone and re-tiled.

We were so impressed with the improvements in the model we bought our third week from a private owner.

Sterling

 

[slip]

Sterling, How could I have forgot to mention , that I made it up there and they
Did let me check out a refurbished unit. It was after a long day in Hanalei and
We stopped and found it(never went by it before) on our way back to Kapaa.
I got there and the staff is great, really nice. They give me a key to a unit and we
Head up to check out the room. I got out my little video camera and the battery Died after a long day. I wanted to get some video and post it.

Boy are you right, you are getting your money's worth on this. Everything is
Brand new. The units look like new builds. I'm not kidding, they did a great job.
I recommend people to go up and check them out.

 

[ronparise]

I dont think you can compare whats was needed at Point at Poipu to new furniture and countertops...from what you say there is no structural work going on at Alii Kai II

You may be getting your moneys worth but Point at Poipu is getting a whole lot more

$150000 seems high to me for what you describe

 

[slip]

From what I' m reading about the P@P, for the cost of the SA, they may as
Well tear it down and start over. Plus, Sterling owns at each. you can ask him
Which one he's more happy with.

 

[Stressy]

Are the Grand Pacific Ali'i Kai II units on the ocean side? I have previously stayed in an Ali'i Kai privately owned unit and the views were unbelievable. Would I experience the same if I exchanged through GPX Vacations? (the Grand Pacific Exchange system) The updated units sound like they are magnificent.

 

[Kauai Kid]

I dont think you can compare whats was needed at Point at Poipu to new furniture and countertops...from what you say there is no structural work going on at Alii Kai II

You may be getting your moneys worth but Point at Poipu is getting a whole lot more

$150000 seems high to me for what you describe

Ron:

The only structural work at Alii Kai II is moving an interior wall to make the master bedroom bigger.

It does not need exterior structural work because unlike the Point at Poipu there are no water intrusion issues.

I've never received anything from Diamond about what folks are getting for their $5800 special assessment. If you know something please share it with the TUG community.

You're right about getting more from the Point:

Point Special Assessment: $5800
Alii Kai II SA: $2800

Point Maintenance Fee: $1400/wk
Alii Kai II MF: $850/wk

I can spend three weeks at Alii Kai for less than I'd pay for 2 weeks at the Point.

The $3,000 difference in special assessment is equivalent to three coach round trips from Texas to Lihue.

Sterling

 

[timeos2]

That annual fee for Alii Kai II MF: $850/wk should be higher as that would mean they could have planned for & collected the money needed for the upgraded units over the past 5 -7 years rather than a big $2,800 Special Assessment hit. Plus they should be raising the annual fee NOW so when the NEXT renovation is due in 5-7 years they won't need yet another SA. If they had the $1200 - $1400 range for the past 7 years then the SA would be moot.

We thought a $600 assessment in 2004 was outrageous and convinced our Board to never allow annual fee / reserves to be underfunded again. When I hear $2000 - $6000 Special Assessment numbers I can only see a Board that has been avoiding problems and keeping fees artificially low. Long term that is a bigger mistake than a reasonable increase in the base fee to allow for gradual collection over time of the money that will be needed one way or another. It is much easier to swallow in smaller bites than one big gulp IMO.

 

[klpca]

Are the Grand Pacific Ali'i Kai II units on the ocean side? I have previously stayed in an Ali'i Kai privately owned unit and the views were unbelievable. Would I experience the same if I exchanged through GPX Vacations? (the Grand Pacific Exchange system) The updated units sound like they are magnificent.

I'm curious about the views too. One of the reasons that we bought at Carlsbad Seapointe was to have access to the Grand Pacific exchange system. I see a lot of Alii Kai units available through them.

As far as the special assessment - I think that a lot of reserves are set at a level that allows for like-kind replacement, but it seems that many times the quality of the upgrades exceeds the original quality of the unit (granite vs. formica or tile for example). It seems like some resorts are upgrading instead of just replacing. Personally I'm all for an upgrade, but I can see how others would be fine with just replacing things as they wear out.

 

[timeos2]

As far as the special assessment - I think that a lot of reserves are set at a level that allows for like-kind replacement, but it seems that many times the quality of the upgrades exceeds the original quality of the unit (granite vs. formica or tile for example). It seems like some resorts are upgrading instead of just replacing. Personally I'm all for an upgrade, but I can see how others would be fine with just replacing things as they wear out.

Good point and if resorts are blindly following the bare minimum recommendations from reserve studies that would indeed be the case. They are well advised to add in at least some upgrades as items of 7+ years old in design aren't likely to be current or in many cases even made anymore for direct replacement.

But the level of annual fee at this resort would have fallen way short of even just a simple replacement of existing items. They have been woefully underfunding reserves to artificially keep annual costs "low". Now the owners will pay anyway & have to do it quickly in a big lump sum. Not good management or planning. But that is in the past so the current SA IS neede now. Lets hope they have learned from it and will raise the fees to a proper level in the next couple years so it won't happen again. Many Boards get lulled into the false assumption that since things are "new" again they can hold off on increasing reserves for too many years after the SA. It needs to be increased no more than a year or at the most two after the assessment.

 

[Kauai Kid]

I have no idea if the payment will be lump sum or stretched out over several years or discounted for a one time payment.

I'll keep TUG informed. Doesn't seem like there are many of us Alii Kai II owners on TUG.

I agree, in a perfect world, there never should be a special assessment. But the world is managed by imperfect humans so expect a special assessment occasionally.

So in the last two years we have had special assessments for all three of the Hawaii time shares we own: The Maui Schooner (failed because it is a democratically managed resort), Point at Poipu, and Alii Kai II.

The last special assessment I recall at Alii Kai II was a very reasonable $900 for roof repair because of damage caused by Iniki.

Here's a little blurb about that horrible storm:

From Wikipedia, the free encyclopedia
Formed September 5, 1992
Dissipated September 13, 1992
Highest winds 1-minute sustained:
145 mph (230 km/h)
Gusts:
230 mph (370 km/h)
Lowest pressure 938 mbar (hPa); 27.7 inHg
Fatalities 6 direct
Damage $1.8 billion (1992 USD)
Areas affected Hawaiʻi (particularly Kauaʻi)
Hurricane Iniki (play /iːˈniːkiː/ ee-NEE-kee; Hawaiian: ʻiniki meaning "strong and piercing wind")[1] was the most powerful hurricane to strike the U.S. state of Hawaiʻi in recorded history. Forming on September 5 during the strong El Niño of 1991–1994, Iniki was one of eleven Central Pacific tropical cyclones during the 1992 season. It attained tropical storm status on September 8 and further intensified into a hurricane the next day. After turning to the north, Iniki struck the island of Kauaʻi on September 11 at peak intensity; it had winds of 145 mph (235 km/h), and was a Category 4 hurricane on the Saffir-Simpson Hurricane Scale. It was the first hurricane to hit the state since Hurricane Iwa in the 1982 season, and the first major hurricane since Hurricane Dot in 1959. Iniki dissipated on September 13 about halfway between Hawaii and Alaska.

Iniki caused around $1.8 billion (1992 USD) of damage and six deaths. At the time, Iniki was among the costliest United States hurricanes, and it remains one of the costliest hurricanes on record in the eastern Pacific.

The Central Pacific Hurricane Center (CPHC) failed to issue tropical cyclone warnings and watches for the hurricane more than 24 hours in advance. Despite the lack of early warning, only six deaths were attributable to the storm. Damage was greatest on Kauaʻi, where the hurricane destroyed over 1,400 houses and severely damaged over 5,000. Though not directly in the path of the hurricane's core, Oʻahu still experienced moderate damage from wind and storm surge.

I remember talking story with one man from Lihue who told me it was 13 months before he was able to get a drink with ice cubes!!


Sterling, Hurricane Katrina survivor thanks to the Good Lord, US Coast Guard, and numerous Southern Baptist Churches that fed over 750,000 meals to the hungry folks of New Orleans.

 

[dougp26364]

I'm amazed that anyone would find an SA of $900 followed by another SA of $2,500 to $2,700 reasonable. I'd be extremely worried about my ownership if both of these SA's occured under the same management/HOA/BOD.

 

[pedro47]

Will all the units be redone?

 

[ronparise]

Ron:

The only structural work at Alii Kai II is moving an interior wall to make the master bedroom bigger.

It does not need exterior structural work because unlike the Point at Poipu there are no water intrusion issues.

I've never received anything from Diamond about what folks are getting for their $5800 special assessment. If you know something please share it with the TUG community.

You're right about getting more from the Point:

Point Special Assessment: $5800
Alii Kai II SA: $2800

Point Maintenance Fee: $1400/wk
Alii Kai II MF: $850/wk

I can spend three weeks at Alii Kai for less than I'd pay for 2 weeks at the Point.

The $3,000 difference in special assessment is equivalent to three coach round trips from Texas to Lihue.

Sterling

Thats my point exactly, the one property is essentially being re built, the other is getting a little more than replacements (which as has been pointed out, should have been covered by reserve funds)...ie the folks at Point at Poipu are getting a whole lot more work done (structural)...of course its more expensive (Im not saying I would like it, only that I understand why one is more than the other)

You cant compare these two special assessments..one wasnt anticipated and there is no insurance coverage and no reserves to cover it. the other should have been anticipated, and there should have been reserves to cover it.

 

[T_R_Oglodyte]

I've never received anything from Diamond about what folks are getting for their $5800 special assessment. If you know something please share it with the TUG community.

I assume you've reviewed the material at Point at Poipu owners website?

 

[Kauai Kid]

No I haven't.

Thanks,

Sterling

 

[T_R_Oglodyte]

No I haven't.

Thanks,

Sterling

OK. They do have a whole section of the HOA website devoted to the Water Intrusion project.

 

[Yamahey]

I dont think you can compare whats was needed at Point at Poipu to new furniture and countertops...from what you say there is no structural work going on at Alii Kai II

You may be getting your moneys worth but Point at Poipu is getting a whole lot more

$150000 seems high to me for what you describe

You could not be more wrong. The units at Alli Kai are being taken down to the studs. They are then being completely rewired and rebuilt to the new specifications. This includes new tile flooring in the kitchen, living room, and baths. Completely new baths and kitchens. New carpets in the bedrooms. New window treatments that are really quite ingenious. All new top of the line furniture and TVs, and more. The first unit cost about $170,000 to complete. They hope to reduce the price on the rest by using a different local contractor. When done they will be as nice or nicer than any units on the islands. It seems to me in Poipu when all is said and done they will have exactly what they thought they were buying to begin with. They shouldn't have had to deal with shabby workmanship that caused the problems. At Alli Kai we are getting beautiful new condos for a very reasonable price. And all for an initial price that was less than half what it costs at Poipu and a yearly fee that is much much lower.

 

[Kauai Kid]

I have yet to get anything official on the special assessment cost for the Alii Kai II units. Have been putting monies into the savings account every pay day to prepare for the special assessment.

I sold our two oceanfront units at the Point less than a year ago.

In a perfect world the maintenance fees would never increase, there would be no need for special assessments, you could sell your time-share at a profit, there would be no more war, no hunger, no poverty, and no more disease.

Unfortunately, the world isn't perfect.

Sterling

 

[Kauai Kid]

That annual fee for Alii Kai II MF: $850/wk should be higher as that would mean they could have planned for & collected the money needed for the upgraded units over the past 5 -7 years rather than a big $2,800 Special Assessment hit. Plus they should be raising the annual fee NOW so when the NEXT renovation is due in 5-7 years they won't need yet another SA. If they had the $1200 - $1400 range for the past 7 years then the SA would be moot.

We thought a $600 assessment in 2004 was outrageous and convinced our Board to never allow annual fee / reserves to be underfunded again. When I hear $2000 - $6000 Special Assessment numbers I can only see a Board that has been avoiding problems and keeping fees artificially low. Long term that is a bigger mistake than a reasonable increase in the base fee to allow for gradual collection over time of the money that will be needed one way or another. It is much easier to swallow in smaller bites than one big gulp IMO.

Boy do I hope you are wrong about renovations every 5-7 years.

Sterling

 

[dougp26364]

Boy do I hope you are wrong about renovations every 5-7 years.

Sterling

He's not wrong. On average a timeshare should plan for a soft refurb every 5 to 7 years and a full renovation every 10 to 15 years.

Soft refurbs include new carpet, furniture, beds and linens and paint. Full refurbs include all new appliances, fixtures, lamps, tables, window treatments et.... Essentially a totaly redone unit. Without planning for full refurbishments, units become dated and old. New technology keeps moving forward. Units can't stand still. Otherwise it would be as if you're own home was still living in the 50's, 60's, 70's or 80's. HOA's must plan on moving forward.

IMO, SA's are a sign of poor management. An SA of this size is a sign of very poor management.

 

[daventrina]

Boy do I hope you are wrong about renovations every 5-7 years.

Sterling

With GPR running the resort .. you an likely plan on it...

 

[Kauai Kid]

Thats my point exactly, the one property is essentially being re built, the other is getting a little more than replacements (which as has been pointed out, should have been covered by reserve funds)...ie the folks at Point at Poipu are getting a whole lot more work done (structural)...of course its more expensive (Im not saying I would like it, only that I understand why one is more than the other)

You cant compare these two special assessments..one wasnt anticipated and there is no insurance coverage and no reserves to cover it. the other should have been anticipated, and there should have been reserves to cover it.

How big were the special assessments in New Orleans after Hurricane?


Sterling

 

[Kauai Kid]

I'm amazed that anyone would find an SA of $900 followed by another SA of $2,500 to $2,700 reasonable. I'd be extremely worried about my ownership if both of these SA's occured under the same management/HOA/BOD.

Those are the only special assessments that have occurred over the last 30 (thirty) years. There never has been a need for a recurring 5-7 yr special assessment

 

[Kauai Kid]

Will all the units be redone?

Yes all units will be redone

 

[Kauai Kid]

Those are the only special assessments that have occurred over the last 30 (thirty) years. There never has been a need for a recurring 5-7 yr special assessment

Compared to the Point at Poipu Special Assessment they seem reasonable.