Any Las Vegas Polo Towers owners received an offer to repurchase?

[Hoc]

If they sell enough of those units into the trust, DRI will have voting control, will have complete control of the HOA/BOD and will be able to do anything they want with Polo Towers as the trust will hold a majority of the voting rights and you KNOW which way the trust will vote.

I'm sure that, legally, as a majority owner in the HOA, DRI will have fiduciary duties to act in the best interests of the remainder of the owners.

 

[MAZxxx]

I am not a lawyer but I don't think that your principles would hold much water in this case. My feelings are that DRI are perfectly within their rights in buying up any excess ownership rights and that they would be treated like any other multiple unit owner.
I think there's something going on here but I can't put my finger on it. Last year, I enquired about buying another week on the same floor as my existing unit, they came back with 2 quotes of $13,500 and $15,500. In April this year, they offered to buy back my unit for $7000 plus costs and there's no chance now of purchasing any extra weeks at the Polo Towers.
This buy back offer has now gone down to $3000 with no costs. I wish I knew what their long term strategy is!

 

[Hoc]

I am not a lawyer but I don't think that your principles would hold much water in this case.

As a general rule, legally, a majority owner in a corporation has a fiduciary duty not to use its power to the detriment of a minority owner. It can't just vote its shares as it wants. I'm pretty sure the same type of rule would apply in this instance.

 

[dougp26364]

As a general rule, legally, a majority owner in a corporation has a fiduciary duty not to use its power to the detriment of a minority owner. It can't just vote its shares as it wants. I'm pretty sure the same type of rule would apply in this instance.

The problem is and will always remain......is it worth it to take action. Essentially to take it to court in Vegas. I live in KS and many other owners are scattered across the country and a few around the world. Locating and pulling all those owners together to join and fight DRI as a group is a daunting and time consuming task. Finding the money and an attorny to take up the action may not be as cost effective as just selling and getting out.

DRI has a lot of little tricks written into their documents giving them the right to make these changes and owners signed over those rights with their original purchase. DRI has the written right to control the public spaces in Polo Towers. Thus, they were able to just close down the owners lounge and turn it into Stephen Cloobecks personal office space. Mr. Cloobeck has comlete control over all public spaces and can do with them as he pleases.

As I understand it, the height restriction can be sold for a set amount (low by today's standards but relatively high in the early '90's). I'm not even certain that it will take a vote of the owners. I believe the price per unit to sell out the height restriction is in the $2,000 per unit range. Most of this according to the company that would want to buy out the restriction. I'm not even 100% certain that DRI requires owner approval for this to happen.

To fight DRI, owners would most likely need to prove that there was intentional deception during the sales process.....ie: lying about always having a view. You'll need to get enough witnessess together to convince a judge or jury this took place. Getting that many people into a court room to testify about an event that took place in many instances over 10 years ago (assuming you can find that many original owners) would be difficult. Again, cheaper and easier just to sell out and let the next owner worry about it.

One other advantage to DRI would be to get enough units into the DRI Trust and keep control of the management contract. Essentially assuring that Polo Towers will remain under DRI management until DRI gets tired of managing the resort.

This is not an attractive situation for owners. That situation being the loss of control of the resort (as if owners ever had control) and just being taken along for the ride.

 

[Aussiedog]

Got the check today

So I am out of Polo Towers.

But I own Bluegreen, so maybe I will soon be back in ??

Wonder where they are getting all the money to purchase Bluegreen (offer to purchase at this point) when they must be spending a fair amount on buybacks, system integration, etc.

Ann

 

[malyons]

villa mirage offers?

just curious after reading all of this, so I thought I'd pose my question here so everyone has the background....It was mentioned that someone received an offer for repurchase of their Scottsdale Villa Mirage unit as well. Are these offers still out there? Is DRI done trying to repurchase units for now.....or at least until the credit markets clear up?

 

[dougp26364]

just curious after reading all of this, so I thought I'd pose my question here so everyone has the background....It was mentioned that someone received an offer for repurchase of their Scottsdale Villa Mirage unit as well. Are these offers still out there? Is DRI done trying to repurchase units for now.....or at least until the credit markets clear up?

I HAD an offer recently to re-purchase our Polo Towers units and accepted it. I was suppose to receive the paperwork no later than last week. Now my E-mails go unanswered and the contact phone number has a fast busy signal.

At this point, I'd say the tight credit market has put a hold on all recent buyback offers. I'd also imagine that, with the astronical increases in MF's that DRI could be flooded with requests to buy back units. As it stands now, I plan on paying our MF's and finding a way to use our club points. I'll eventually sell our units but, after the latest legioniare's outbreak and increase in MF's, resale prices on E-bay seem to be in the toilet. Last week they were in the thousands, present auctions for 2 bedroom units appear they may close in the hundreds.

Looks like I made the wrong choice to believe in DRI. I should have saved my money joining THE Club and should have sold out when the offers where higher and they were actually following up on them. After 10 years of watching them mismanage (IMO) Polo Towers I should have known better. I should have sold out 6 months ago.

 

[richardm]

All buybacks not already funded have been cancelled!

I HAD an offer recently to re-purchase our Polo Towers units and accepted it. I was suppose to receive the paperwork no later than last week. Now my E-mails go unanswered and the contact phone number has a fast busy signal.

Looks like I made the wrong choice to believe in DRI. I should have saved my money joining THE Club and should have sold out when the offers where higher and they were actually following up on them. After 10 years of watching them mismanage (IMO) Polo Towers I should have known better. I should have sold out 6 months ago.

If you were involved in a buyback and have not yet gotten your $- it probably won't be coming.. Check with your closing agent for an updated status..

 

[timeos2]

Looks like I made the wrong choice to believe in DRI. I should have saved my money joining THE Club and should have sold out when the offers where higher and they were actually following up on them. After 10 years of watching them mismanage (IMO) Polo Towers I should have known better. I should have sold out 6 months ago.

It would appear history gives us a good picture as to how things will be in the future under the same regime. I also fear too much Sunterra culture may have also been brought over. That is also not a good thing. DRI seems to want to do whats right but poor followup and economics may be hitting them very hard just when they don't need it. It's tough for everyone but especially cash and sales intensive operations like they depend on. It may be a rough ride for awhile. I'm glad I don't have an obligation to any major fees/assessments in direct control of THE CLUB or a DRI managed resort. That's where the money will come from for the foreseeable future if I'm reading things correctly. As it is the simple annual CLUB fee has already spiraled out of control but at least its something I can drop at will with virtually no loss. Not so easy if its a resort or an investment in THE CLUB. Too bad you seem to have missed the buy out opportunity.

 

[MAZxxx]

I started this thread back in April when I received an offer from DRI to buy back my 2 bed unit for $7000.00 plus they'd pay all closing costs. I declined because I had only bought the unit a year earlier. I became curious and, in July, asked them if their offer was still available, they said that now they could only offer me $3000.00 plus I'd have to pay closing costs.
I enquired again last month and now they are not buying back any units for any price. Sometimes I think I should have accepted their first offer but I have just come back from my week there and I really think that its a great unit. I have a centre strip view and a high floor and, although the MFs are relatively high, I still think that its good value for the size and view I've got (I recently stayed in a hotel in L.A. and got a view of the back of a shopping centre for $350.00 a night).
I think, once the new development opposite opens, P.T. timeshare values should go up as any new development usually attracts more people, more buyers, more tourists, etc. and that can't be bad for the P.T.

 

[richardm]

The true value is found in the usage!

I have just come back from my week there and I really think that its a great unit. I have a centre strip view and a high floor and, although the MFs are relatively high, I still think that its good value for the size and view I've got (I recently stayed in a hotel in L.A. and got a view of the back of a shopping centre for $350.00 a night).

Timeshare can be a very fickle mistress... Rest assured (I'm confident most of the frequent posters in this forum will agree with me) that the intention of these threads is not to disparage anyone about the value of their ownership. As with any luxury item- the only real test of value is the usage an owner gets.. If you use and enjoy your week- you'll get a return (albeit an intangible one) on your ownership regardless of what you originally paid....

Use and enjoy your vacations- you are in good company!

Rich

 

[dougp26364]

If you were involved in a buyback and have not yet gotten your $- it probably won't be coming.. Check with your closing agent for an updated status..

Closing agent? Heck, I never even received the papers to sign.

It's not that the deal is most likely dead that bothers me. It's the way the apparent cancelation of the deal has been handled. As per the norm for DRI, if it doesn't involve tooting their own horn there's little to no communication. This is especially problematic as I must make vacation plans and plans to pay the 2009 MF's in the next couple of weeks.

All it would take, even if it's not the greatest news, would be a little COMMUNICATION. In this ecomonmic environment I would certainly understand why DRI couldn't complete the agreed upon deal. I might not be overly joyed about it but I could understand it. Rather than be upfront with everyone it certainly has the apperance that they'd prefer to stick their head in the sand and just leave everyone hanging.

Just one more reason for my negative bend towards this particular company and how it does business.

 

[dougp26364]

I started this thread back in April when I received an offer from DRI to buy back my 2 bed unit for $7000.00 plus they'd pay all closing costs. I declined because I had only bought the unit a year earlier. I became curious and, in July, asked them if their offer was still available, they said that now they could only offer me $3000.00 plus I'd have to pay closing costs.
I enquired again last month and now they are not buying back any units for any price. Sometimes I think I should have accepted their first offer but I have just come back from my week there and I really think that its a great unit. I have a centre strip view and a high floor and, although the MFs are relatively high, I still think that its good value for the size and view I've got (I recently stayed in a hotel in L.A. and got a view of the back of a shopping centre for $350.00 a night).
I think, once the new development opposite opens, P.T. timeshare values should go up as any new development usually attracts more people, more buyers, more tourists, etc. and that can't be bad for the P.T.

With better management, Polo Towers could be one of the top timesharesin Vegas with the best location. It's unfortunate that the management company is inept at best. While the timeshare itself if very good and the location is great, the way they handle the owners money is extremely poor and owners don't really play a part in the decisions that are made.

Cases in point:

The owners lounge was closed without notice given to owners. This was a HEAVILY sold benefit to owners during active resort sales. Once sales were done, it became to expensive for the developer to maintain (I thought MF's were suppose to pay for amenities? Where'd my money go?)

The promised family water park was paid for by an SA imposed and collected without an owner vote or owner approval. They had to have a vote retroactively to approve it. That SA was also suppose to pay for a new water treatment plant to avoid a second outbreak of legioniare's at the resort. The family water park was 2 or 3 years overdue when it was started and a second recent outbreak of legioniare's sheds light on the fact that the promised and paid for water treatment system was most likely never actually installed.

Polo Towers MF's are among the highest in Vegas but, the reserve funding is among (most likely is) the lowest in Vegas. This means if anything goes wrong, like the recent outbreak of legioniare's disease again, there likely won't be enough in reserve for the necessary expenses to fix the problem I anticipate another SA in the next year or two.

The Skyview units were sold preconstruction with a promised build out date that was missed by either 2 or 3 years. The promised resort exchange certificates were given out only 1 year. After that, you had to call and complain to get them to deposit an unused and often less desirable developers week into I.I. for you to use. I guess those that didn't know enough to call and complain were just screwed.

Polo Towers could be one of the best timeshares in Vegas if only it were managed while keeping the owners interest rather than the developers interest in mind. Until then, it's going to be a very nice timeshare with a great location and a management company that's determined to ride it's owners into the ground. Then they'll sell off the property and leave owners twisting in the wind.

 

[dougp26364]

Recieved official word that, as of Oct. 1st, any deal that hadn't been paid out was rescinded. If you had a deal but haven't recieved a check, sorry.

 

[Bill4728]

Thanks for the up-date, Doug.

 

[pgnewarkboy]

Don't feel all alone. The economic crisis is doing a number on almost everyone. Check out the marriott group on TUG and you will see that Marriott no longer exercises its right of first refusal thus allowing re-sale prices to drop like a rock PLUS they restructured their point system by devaluaing owners points.

 

[dougp26364]

Don't feel all alone. The economic crisis is doing a number on almost everyone. Check out the marriott group on TUG and you will see that Marriott no longer exercises its right of first refusal thus allowing re-sale prices to drop like a rock PLUS they restructured their point system by devaluaing owners points.

We own Marriott as well. Devaluing MR points isn't new. It happens every couple of years. As far as dropping the ROFR that only affects me if I want to buy/sell units on the open market. I can still sell my DRI ownership on the open market if I choose to do so.

DRI has made offers and, in some cases signed paperwork and then backed out of the deal without so much as letting the selling party know the deal is dead. They just shut the phone lines down and stopped answering their E-mails.

 

[pgnewarkboy]

I think that as a general principle DRI does not have the legal right to back out of a signed deal. They bought back my timeshare in Maui with no problem or hassle. I don't recall what the contract said but breach of contract, if that is the case, is a serious matter. People in a situation with a signed contract should consult an attorney on the matter.

 

[PeelBoy]

I am not an owner but a DRI Club member.

Just spent the week across the street at Marriott Grand Chateau. Not to offend anyone here, I thought for the whole week why there is such an old and ugly building at the middle of the strip. Years ago, I thought Polo Tower was great but now it is surrounded by attractive modern high rise.

I heard there is a plan to redevelop the strip malls across the City Centre, so wonder whether DRI may have a plan to sell Polo Tower and the adjacent parking lot for big money.

 

[MAZxxx]

I agree that it doesn't have the sharp glassy edge of the new builds but I quite like it, I think it has character. I had also heard a rumour that the land at the front of the P.T. has been sold to a developer. Various stories have been circulating and, in the current climate, I'm not sure whether any of them will actually materialise.
Perhaps that's why they've stopped the buy back scheme. If they plan on selling some time in the future, they wouldn't want to shell out any more cash on buy-backs.
Doug, what do you think? Also, if the resort was sold, what do you think us owners will get out of it? They are currently selling these newly renovated 2 bed units at the front tower for nearly $30,000, if this is their current market value do you think that's what they'd have to pay out?
I know I'm getting ahead of things here but I was just curious.

 

[dougp26364]

I am not an owner but a DRI Club member.

Just spent the week across the street at Marriott Grand Chateau. Not to offend anyone here, I thought for the whole week why there is such an old and ugly building at the middle of the strip. Years ago, I thought Polo Tower was great but now it is surrounded by attractive modern high rise.

I heard there is a plan to redevelop the strip malls across the City Centre, so wonder whether DRI may have a plan to sell Polo Tower and the adjacent parking lot for big money.

According to the company that now owns the land in front of Polo Towers, DRI has a plan to sell out the height restriction and allow the view of Polo Towers owners to be blocked. The adjacent parking lot, the land that the Travel Lodge and Harley Davidson Cafe occupies and all the land down to Smith and Wollensky is owned by the same company.

Presently the announced plan is to build and Elvis themed casino. It will never happen IMO. Especially now that the credit markets have gone south. Eventually, something will be built there and my bet is S. Cloobeck will be more than happy to sell out the owners view for a little pocket change. If he's going to do that I'd prefer the whole darn thing be sold and give back a little cash to the owners.

I'm personally not interested in any "owners rights" to access the amenities of any new build. Look what's happened to Jockey Club and Cosmopolitan. Yes Cosmo will be built but it won't be by it's original developer. Lord only knows how everything will work out there and, in the meantime, they've had to put up with all that construction noise AND lose their view to the south.