In 2003 the owners voted in favor of a plan to tear down our buildings and put up a new resort approximately four times larger. The owners had architectural drawings and a detailed explanation of the plan. One part of this election was the owners voting to amend each building's HOA's CC & Rs to read, "Declarant [developer has the] right...to expand the Project any time by undertaking one or more of the following actions: (a) adding addtional property thereto, (b) by redevelopment of the Project and/or (c) expanding the Property and/or the Project." The amended CC & Rs also gave the developer an easement to occupy our timeshare property for construction.
The original developer who presented the detailed plan to our owners went bankrupt. In the court-ordered bankruptcy liquidation of assets of this developer, one item for bid was the redevelopment rights. A bidder bought all three parts of our timeshare that was for sale at the court-supervised auction: the management contract, the unsold inventory and the redevelopment rights. This bidder sold the unsold inventory and management contract to Summer Bay, and only retained the redevelopment rights.
The court made a finding that the redevelopment rights do not include the detailed architectural plan voted on by our owners. The redeveloper is only bound by the recorded CC & R amendments cited above.
Eventually, the winning bidder of the redevelopment rights sold those rights to a company that is controlled by Harrah's.
