Any TUGgers attending the KBV IOA conference call?

[bnoble]

I have a medical appointment during the call (9A HST/3P EDT). Is anyone here able to listen in and report back to the group? It sounds as though @jacknsara is also unable to attend.

If you are here to ask for an update at Kauai Beach Villas - read this thread first.

In the simplest terms - no one knows what is going on with the resort. The board has gone completely silent and is not responding to any inquiries. But, when we know something, we will post it here ASAP!

tugbbs.com

 

[TheHolleys87]

Although not an owner myself, I’m following this issue for my brother who received ownership from my dad. I’ll be traveling Wednesday morning too, so I’d really appreciate someone summarizing the meeting here after it occurs!

 

[schreff]

I have an appointment also thus will miss the conference call; however, I have asked Wyndham and the president for a recap of the meeting and also to the answer my submitted questions. I appeal to others to do the same.

Liane.Henderson​

​

Liane.Henderson@wyn.com

Larrywarner, President BOD​

​

larrywarner@gmail.com

Are the people I sent my request to.

Thanks much

 

[bnoble]

Depending on where you are it isn’t going to be morning…

 

[tl_traveler]

What is the dialup number or Zoom link? I can not find it in the online documents. Sorry if it's somewhere obvious, but I have never attended one before and would like to this time.

Thanks.

 

[bnoble]

I think you have to ask for it. From @jacknsara's post:

As of May 2023, Liane Henderson was handling these requests Liane.Henderson@wyn.com

 

[jacknsara]

Aloha,
A couple of years ago I asked the resort manager whether she preferred that I share the web connection info on TUG or provide the Wyndham point of contact to request it. Based on the answer then, I list the Wyndham point of contact.
Since I just received the web info for the next meeting from Liane Henderson, I can confirm that is currently an appropriate point of contact.
Jack

 

[tl_traveler]

Followup on my previous post. I sent an email to Liane.Henderson@wyn.com asking for phone number and Zoom link of the meeting and received a reply with answer for both.

 

[pafuson]

I have requested twice the zoom info for today's Board meeting. I also left a message at the resort and an email to Larry Warner.
Anyone attending please share meeting information.

 

[bnoble]

I was able to attend the first 25 minutes or so, which covered all of the formal meeting(s), but had to leave just as Q&A started.

Things that stood out:

1. Bad debt was about 13%, and higher than forecast. Honestly I thought that was a little low given the circumstances, but I also don't know how aggressive Wyndham has been at foreclosure/recycle, and that has probably helped.
2. Occupancy and turns are slightly higher than forecast.
3. They are progressing with some very modest updates to the interiors, replacing fixtures/outlets, adding baseboards, USB outlets, and some bathroom fixtures. They've also been fixing some leaks in the irrigation system. In other words: they aren't just letting things go waiting for the inevitable.
4. Grills at Building F have been replaced, D is next.
5. G and H are still closed, but lanais at G are being repaired for use. If I understood correctly H needs more work than G to be habitable.
6. The AOAO suit is progressing; first mediation meeting is next week.

So, the IOA is proceeding as if the resort will remain in service. I think that makes sense: keep going as if nothing has changed until something has changed. I still think termination is coming sooner rather than later, but in the meantime, I think the IOA Board is making the best of a difficult situation.

 

[tango]

Thanks for the update. I guess for now other than ocean front things go on. I wish I knew how quickly things would end, once it is decided that they should end.

 

[bnoble]

Did anyone stay through the Q&A? Anything interesting come up during it?

 

[Neelhon]

Reading thru the thread, am I correct in thinking that, even if the majority of the owners vote not to remediate, and even if they have functional condos that are not affected, the resort will be sold to a third-party at auction?? it’s sort of seems like a lose lose scenario…?

 

[bnoble]

The condos are "functional" in that they can currently be occupied, but they also require mid-6-figures (each) of remediation due to construction defects. They are all affected by some of those defects. For example, one problem is that many of the vertical beams are not flush with the foundations. That's Bad (tm), and it is not limited to Buildings G and H.

But yes, if 75% of the condo interests vote for termination, the entire resort will be sold under court-order. I don't think this is a "lose" at all, because the remediation costs as much or more as the condos are worth.

It's like when you have a $2,000 car that is more or less running, but needs a $2,500 transmission rebuild. What you have is not a $2,000 car; you have about 1.5 tons of scrap metal. You can drive it until it fails, but that's not going to be very long.

 

[schreff]

The condos are "functional" in that they can currently be occupied, but they also require mid-6-figures (each) of remediation due to construction defects. They are all affected by some of those defects. For example, one problem is that many of the vertical beams are not flush with the foundations. That's Bad (tm), and it is not limited to Buildings G and H.

But yes, if 75% of the condo interests vote for termination, the entire resort will be sold under court-order. I don't think this is a "lose" at all, because the remediation costs as much or more as the condos are worth.

It's like when you have a $2,000 car that is more or less running, but needs a $2,500 transmission rebuild. What you have is not a $2,000 car; you have about 1.5 tons of scrap metal. You can drive it until it fails, but that's not going to be very long.

bnoble states, " The condos are "functional" in that they can currently be occupied, but they also require mid-6-figures (each) of remediation due to construction defects. " Am I correct that if the total cost were $ 520,000.00 (mid 6-figures each) then the cost to each weekly owner would be
$ 10,000.00 plus regular maintenance fees and if financed plus interest? What would be the cost of 1 unit if the entire resort would be torn down and the condos would be built as new construction? If the units were closed and torn down, how much would the land be worth? Would it make sense for the units to be torn down and the land equity be sold with the proceeds given to the owners? Just questions for thought.

 

[bnoble]

The cost to a 2BR owner, if billed as a direct special assessment, is estimated at about $8900 per week owned. That's about $445K per condo (assuming 50 weeks), give or take a few thousand. (In my book, that qualifies as mid-six figures.)

Bulldozing and rebuilding is probably not going to be significantly cheaper, nor will it be fast. How many owners will keep paying on a property that they can't use for a few or maybe even several years?

And that's why the termination vote was proposed: Sell the whole thing, lock stock and barrel to someone else, and distribute the proceeds. To me, it is the only option that makes any sense at all--at least for the interval/timeshare owners. The calculus may be different for whole owners, but that's going to vary by individual.

 

[schreff]

I agree sell the resort and distribute the proceeds but the question is all about control and not necessarily what is best. This is the option that make sense to me also but does it to the majority? It appears that Wyndham is the majority thus all we owners can do is sit back and wait. How many owners are not going to pay the next maintenance fee if they don't know what's up? If the proposed sale vote fails, then what? The possibility of unaffordable, never ending special assessments and blind maintenance fees are real. And the fact remains we have no control, no information, and nothing other than to wait and see what Wyndham wants and not what is best financially for us, the small time owners. Where does the BOD stand on all this and has their fiduciary responsibility " gone with the wind ", does anyone have a clue?

 

[pafuson]

I agree sell the resort and distribute the proceeds but the question is all about control and not necessarily what is best. This is the option that make sense to me also but does it to the majority? It appears that Wyndham is the majority thus all we owners can do is sit back and wait. How many owners are not going to pay the next maintenance fee if they don't know what's up? If the proposed sale vote fails, then what? The possibility of unaffordable, never ending special assessments and blind maintenance fees are real. And the fact remains we have no control, no information, and nothing other than to wait and see what Wyndham wants and not what is best financially for us, the small time owners. Where does the BOD stand on all this and has their fiduciary responsibility " gone with the wind ", does anyone have a clue?

The following message was sent to the IOA board ! I hope that it makes the board communicate with all of this !! If they expect us to pay
maintenance fees in January 2024 they will need to communicate. This message was sent by the owners since 2000.
Dear KBV Board,

After six months of no communication after you cancelled the vote meeting and the annual meeting, gave us no annual report, and basically have left all the owners hanging, my husband and Jay want an update now on KBV.

After seeing the closed buildings in November, 2022, and seeing the unbelievable damage to the balconies of F,G,&H, we saw the culmination of Wyndham's lack of proper maintenance from all our assessments from 23 years of being a deeded owner to a 2BR in Building F. Of course, this lack of maintenance is reiterated by the lawsuit of the year-round owners.

Needless to say, we no longer want this poor investment. Many others share this opinion.

We saw that Outrigger acquired Kauai Beach Resort, furthering investment in Hawaii.

https://www.hawaiinewsnow.com/2023/...ai-beach-resort-furthering-investment-hawaii/

After talking to numerous people at Wyndham over the last month, we found out that Wyndham representatives have no idea what is happening at KBV.

As owners we expect an immediate update update, answering these questions:

1. What was the vote from all the electronic voting?
2. Why was the annual meeting cancelled?
3. Why has this Board not given us an annual report from 2022 and an update on KBV in six months?
4. What is the meaning of the Outrigger purchase adjacent to KBV?
5. Where are the 2023 newsletters for KBV?

Thank you for an immediate response!

 

[schreff]

The following message was sent to the IOA board ! I hope that it makes the board communicate with all of this !! If they expect us to pay
maintenance fees in January 2024 they will need to communicate. This message was sent by the owners since 2000.
Dear KBV Board,

After six months of no communication after you cancelled the vote meeting and the annual meeting, gave us no annual report, and basically have left all the owners hanging, my husband and Jay want an update now on KBV.

After seeing the closed buildings in November, 2022, and seeing the unbelievable damage to the balconies of F,G,&H, we saw the culmination of Wyndham's lack of proper maintenance from all our assessments from 23 years of being a deeded owner to a 2BR in Building F. Of course, this lack of maintenance is reiterated by the lawsuit of the year-round owners.

Needless to say, we no longer want this poor investment. Many others share this opinion.

We saw that Outrigger acquired Kauai Beach Resort, furthering investment in Hawaii.

https://www.hawaiinewsnow.com/2023/...ai-beach-resort-furthering-investment-hawaii/

After talking to numerous people at Wyndham over the last month, we found out that Wyndham representatives have no idea what is happening at KBV.

As owners we expect an immediate update update, answering these questions:

1. What was the vote from all the electronic voting?
2. Why was the annual meeting cancelled?
3. Why has this Board not given us an annual report from 2022 and an update on KBV in six months?
4. What is the meaning of the Outrigger purchase adjacent to KBV?
5. Where are the 2023 newsletters for KBV?

Thank you for an immediate response!

Great post but is this is only a few of the question that need to be answered by the AWOL BOD. One thing is clear and that is the BOD has failed to fulfill their fiduciary duties to we the owners. I have attempted to contact them numerous times without an answer. The only communications that have been returned have been from Wyndham which resulted in little to no new information. Reading between the lines it sure does seem that Wyndham is keeping a great deal of known information from us. I do know that when it is black and white and smells like a skunk it sure isn't the white horse of truth.

 

[bianchicycle]

I agree with the distress of all of the owners and I have read the above comments but.... has anyone talked to an attorney regarding this? Has anyone contacted the State of Hawaii regarding this?

 

[bnoble]

has anyone talked to an attorney regarding this?

(Some of) the whole owners certainly have. That's why the vote was delayed.

When the suit is resolved, we'll go back to moving forward with the vote to terminate, and then see what happens. I'm not sure what else anyone hopes to accomplish by rattling sabers. Unless we think the Board is lying to us, we know the state of the buildings is precarious, and that repairing them is prohibitively expensive. And, if the Board is lying, the whole owners will figure that out in the process of discovery in their lawsuit.

It's like the old Heinz commercial.

 

[bianchicycle]

OMG... "unless the Board is lying to us?" REALLY? The law suit is because the year round owners say a lawyer and are fighting.We are sitting here hoping that something good will come along. What happens when the maintenance fees come due, are you going to throw your money away or... do you hope that not paying them will not kill your credit rating.

 

[bnoble]

The suit exists because the whole owners are absolutely f'ing screwed. The best case for a whole owner is that they own something free-and-clear that they thought was worth mid-six-figures, but is now worth approximately zero dollars thanks to recently discovered but decades-old construction defects. Most of them are probably significantly worse off. Most of them probably have mortgages with substantial balances on that property, and may well have to declare bankruptcy unless somehow there is some miraculous salvation. The lawsuit is their attempt at salvation.

I'm not sitting here hoping something good will come along. I am sitting here hoping that the suit is resolved quickly so that we can vote to terminate and move on. I don't see the point in trying to add another lawsuit to the mix that is probably going to go nowhere and delay the wind-down of the resort even longer. The people at fault (those who built the resort) are long gone.

In the meantime, when maintenance fees come due on my weeks, I am going to pay them, because the resort is still open. While that's true I plan to use my 2024 weeks for vacations. That's not throwing money away any more than it ever was. When the vote to terminate happens--and it will eventually happen--I want to be able to take part in any potential liquidation proceeds. I have pristine credit, and expect to keep it, so I won't be defaulting.

I expect there will also be some costs in the wind-down process after the resort is closed, but before liquidation happens. I will evaluate those when we get there. But that's also not "throwing money away" because only those still in the game are in line for any liquidation proceeds. I figure if I'm lucky I'll come out with enough for a good deep dish pizza or two.

 

[jacknsara]

. . . . I figure if I'm lucky I'll come out with enough for a good deep dish pizza or two.

At the P-Bell? Does it still exist?

 

[bnoble]

It didn't, and now it does again!

Well, sort of...

Looking back at photos of the original Pretzel Bell restaurant

Lena, and its basement sister restaurant and bar Habana, closed Saturday night after a little more than three years at the corner of Main and Liberty Streets - one of the highest-profile corners in Ann Arbor's downtown area. Now work...

www.mlive.com