Festiva takes over resort

[somerville]

Elaine,

There are no Festiva employees on the board at Peppertree Atlantic Beach.

Are all of the board members interval owners? If not, what is their affiliation with the resort and/or Festiva?

 

[Sou13]

It seems to me that if an issue or complaint is so pressing that it must go to the AG, it would warrant the few minutes of time it takes to first print and mail a letter directly to the company. It doesn't seem that much more time-consuming than an e-mail if it is a serious issue. Personally, I would do both. It's not going to help your case if you do not first make an effort to contact Owner Services to address your complaints.

Director, Owner Services
Festiva Development Group, LLC
1 Vance Gap Road
Ashville, NC 28805

 

[tombo]

Are all of the board members interval owners? If not, what is their affiliation with the resort and/or Festiva?

Good question! Festiva slips in employees of the mgt company (either a division of Festiva or a 3rd party company hired and fired by Festiva) at the resort to positions on the board. Festiva also places employees of the 3rd party marketing company (also hired and fired by Festiva), and other people beholding to Festiva in one way or another to positions on the board. Sometimes it is actually Festiva employees they place on the board. No matter what their relationship to Festiva is, they shouldn't be on the board. The board should be composed totally of MF paying individuals who own at the resort!

 

[Sou13]

Found on another forum

Festiva goes to points and charges Thousands

--------------------------------------------------------------------------------

On July 3, 2006 we purchased a time share from Festiva Resorts LLC for $7900 plus $345 in processing fees, a total of $8245. At that time we were told by our sales rep Mr. King that we should invest in the Festiva time share because it did not deal with a point system. He said that on a point system you could never accumulate enough points to enjoy any other resorts other than your home base.
On May 14, 2006 not even a year later, we were visited in our home by Glenn Malone a representative from Outfield Marketing LTD. They represent Festiva to inform all owners that Festiva, effective June 15, 2007, is changing to the point system. In fact all of the best resorts were changing to a point system, Marriott, Hilton, Shell, Fairfield and Disney. Within the next few years Outfield Marketing will work with Festiva and would convert all of the Festiva resorts to the point system. “100%”
“Now as an owner you can not sue Festiva for changing there basic business concept,” we were told, “because we are offered the option to keep our current plan.” However you will have little or no chance to use your weeks as trade since all of the resorts and owners with Feativa will be converting to the point system.”
Glenn went on to say that he needs us to decide to switch right now because the owner of Festiva is offering a one time fee to switch of only $2990 plus a $195 in processing. We could call him on his cell phone at 417-231-3567 by 8am May 15 and he could hold this rate but he would need a check at that time. If we waited until June 15th when the change goes into effect it will cost us an additional $8950.
This sounds to me like a breach of the original intent of the agreement and blackmail. It is my opinion that if they want to change the way that we are to do business we should not be charged for the change. I am not an attorney but if you are a Festiva owner and would like to join me in seeking legal advice regarding our rights and any action we might take as a group please contact me.

There seem to be a lot of complaints about FAC on that forum!

 

[elaine]

yes, I would like to know which ones actually own weeks

which Boards members actually own weeks at Peppertree Atlantic Beach?

 

[FestivaRep]

Director, Owner Services
Festiva Development Group, LLC
1 Vance Gap Road
Ashville, NC 28805

That's correct, also:

Fax: 828-254-5297
ownerservices@festivaresorts.com

 

[FestivaRep]

which Boards members actually own weeks at Peppertree Atlantic Beach?

Elaine;

I will check with the general manager of Atlantic Beach and will let you know. You may even be able to contact someone at the resort to get a full list of board members with names and addresses, I will see who you can contact for that.

 

[FestivaRep]

which Boards members actually own weeks at Peppertree Atlantic Beach?

Elaine;

PAB has 5 board members, and they are all owners there.

 

[wmauryd]

Festiva Rep Questions

Does Festiva, Outfield Marketing, or the reps of either have an arrangement to operate onsite at Southcape? An earlier post mentioned a unit number. If yes, was this an arrangement okayed by Southcape's management, or board of trustees?

 

[FestivaRep]

Does Festiva, Outfield Marketing, or the reps of either have an arrangement to operate onsite at Southcape? An earlier post mentioned a unit number. If yes, was this an arrangement okayed by Southcape's management, or board of trustees?

Yes, Outfield Marketing does have an arrangement with Southcape's management to sell the Festiva Adventure Club on-site at Southcape.

 

[Sou13]

Voting rights

Originally Posted by Sanford
He was very nice and informative. Our conversation led me to believe that there is not as much going on negatively as has been presented or possibly assumed.

Mr. Hagberg seems to be a professsional and also indicated that he is a property owner at Southcape who stated that his interests are in making Southcape the best Southcaoe it can be.

He stated that there will be transparency in the budgeting and dealings, and that to the extent Festiva ends up with a Points system, it will be optional, and they will not have voting rights as the voting rights will remain with the deeded owners.

He stated that New England Vacation Services LLC of which he is one of four principals, or managing members, and the other 3 are principals of Outfield Marketing.

He stated that the special assessment would raise sufficient funds in his professional opinion to upgrade and make neccessary repairs and improvements and taht there would be a budget and source and use of funds sheet prepared and distributed.

He stated that the Board of Trustees of Southcape was contemplating establishing an advisory council of selected owners to particiapte in decisions and assist in distributre information to other owners etc.

Further that the similarity between Southcape and Sandcastle were such in that he is the owner of a different entity that is involved in that. http://www.tugbbs.com/forums/showthr...004#post679004

If voting rights belong only to deeded owners, what becomes of the voting rights of converting members? If all Intervals at Southcape were sold there should be approximately 55x51 votes. But if deeded owners convert, they are no longer deeded owners.

Furthermore, as deeded owners convert to Festiva points, does Festiva pay Southcape $593.88 per converted owner? If not, how can Southcape keep its deeded owners from unfair MF escalation and Special Assessments if the pool of deeded owners is shrinking thanks to Outfield Marketing and the Festiva Adventure Club?

 

[somerville]

If voting rights belong only to deeded owners, what becomes of the voting rights of converting members? If all Intervals at Southcape were sold there should be approximately 55x51 votes. But if deeded owners convert, they are no longer deeded owners.

Furthermore, as deeded owners convert to Festiva points, does Festiva pay Southcape $593.88 per converted owner? If not, how can Southcape keep its deeded owners from unfair MF escalation and Special Assessments if the pool of deeded owners is shrinking thanks to Outfield Marketing and the Festiva Adventure Club?

I imagine for those intervals where Southcape owners have converted to Festiva points, the deeded owner will be the trustee of the trust that holds all of the timeshare intervals of Festiva Adventure Club, and the trusteeswill vote those intervals.

 

[FestivaRep]

Furthermore, as deeded owners convert to Festiva points, does Festiva pay Southcape $593.88 per converted owner? If not, how can Southcape keep its deeded owners from unfair MF escalation and Special Assessments if the pool of deeded owners is shrinking thanks to Outfield Marketing and the Festiva Adventure Club?

When deeded owners convert to the FAC and the week then becomes part of the FAC inventory, the Club then pays the maintenance fee to the resort on that deeded week just like any other owner. It does not become the responsibility of other deeded owners.

 

[ecwinch]

Festiva Rep:

In a couple of the posts in this thread, it mentions that lower m/f and protection from special assessments is one advantage of converting a deeded SC week into the Festiva Adventure Club.

Since the underlying Trust has to pay m/f and assessments for the units that are converted, on the surface the ability to shield FAC points owners from these increases would seem to be difficult.

However, based on the fact that the underlying Trust owns units at multiple resorts, I can speculate how the Trust that might be able to do that. But could you expand upon that advantage of the FAC?

 

[FestivaRep]

Since the underlying Trust has to pay m/f and assessments for the units that are converted, on the surface the ability to shield FAC points owners from these increases would seem to be difficult.

However, based on the fact that the underlying Trust owns units at multiple resorts, I can speculate how the Trust that might be able to do that. But could you expand upon that advantage of the FAC?

If there was a special assessment at a resort where FAC owns weeks, such as with Southcape this year, FAC is responsible for paying the assessment for all of the weeks owned by the Club. That cost would be shared by all 13,000+ FAC members, not just members who used to be owners at Southcape.

 

[FestivaRep]

Converting to the FAC

Some of you had questions about Southcape owners giving up their deeds to convert to the FAC versus joining the FAC without giving up your deed.

Southcape owners can convert to FAC without giving up their deed; however, because of the nature of our contract with Outfield, this cannot be done through Outfield. Owners would have to visit one of our other sales centers where Festiva actually has a presence, the closest of which is Portland, ME.

 

[somerville]

Some of you had questions about Southcape owners giving up their deeds to convert to the FAC versus joining the FAC without giving up your deed.

Southcape owners can convert to FAC without giving up their deed; however, because of the nature of our contract with Outfield, this cannot be done through Outfield. Owners would have to visit one of our other sales centers where Festiva actually has a presence, the closest of which is Portland, ME.

That is a very important detail to know. If you want to keep your deed, you should NOT convert through Outfield. You should also ask Festiva if you give up your right to vote when you convert to Festiva but retain your deed. Under Equivest, Charter members who converted deeded weeks to points retained their deed, but gave Equivest the right to vote their deeded interest. Retaining voting rights in your resort's HOA should be an important consideration.

 

[ecwinch]

If there was a special assessment at a resort where FAC owns weeks, such as with Southcape this year, FAC is responsible for paying the assessment for all of the weeks owned by the Club. That cost would be shared by all 13,000+ FAC members, not just members who used to be owners at Southcape.

Thanks for clearing it up - I thought that is how it might work. So in the current environment at SC where assessments are pending, the owner converting to FAC would not feel the full effect of special assessment, as it is spread over 13000+ FAC members. And the FAC would have a similar impact on m/f, if SC m/f are higher then the current m/f of the FAC system.

In essence, it is a zero sum game. Some FAC owners pay a higher m/f then their converted resort, some pay less then their converted resort. It depends on the m/f at their current resort vs current FAC m/f. Today it is an advantage to the SC owner as their m/f are higher than FAC, and they have special assessments pending.

The bottom line is that their is no inherent ability of FAC to provide lower m/f. It simply depends on the situation at your current resort.

 

[Sou13]

How many votes does FAC have at Southcape?

I imagine for those intervals where Southcape owners have converted to Festiva points, the deeded owner will be the trustee of the trust that holds all of the timeshare intervals of Festiva Adventure Club, and the trusteeswill vote those intervals.

FestivaRep hasn't answered this one. How many votes does FAC have in the affairs of Southcape Resort?

This is important info for Southcape owners. Inviting other resorts into the "family" takes away the uniquesness and independence of Southcape owners. And just as FestivaRep has informed us that all FAC club members share in the $400 special assessment at Southcape as well as all other special assessments in all the resorts in the ever-growing family, Outfield Marketing in engaging in deceptive sales practices (surprise! surprise!) by presenting lower MFs and no special assessments as an advantage of joining the Club.

At the same time that I appreciate the info being provided by FestivaRep here, I would also appreciate keeping the focus on Southcape Resort and Outfield Marketing. I should have realized this when I launched the discussion. (I just noticed that the subject title has been changed. However that happened, it was something I wanted to do!)

Am I the only one willing to share what Outfield Marketing offered me?

 

[FestivaRep]

FestivaRep hasn't answered this one. How many votes does FAC have in the affairs of Southcape Resort?

The FAC has one vote for each week owned (just like any other owner). The number of weeks owned by the FAC depends directly on conversions of SC owners.

 

[tombo]

The FAC has one vote for each week owned (just like any other owner). The number of weeks owned by the FAC depends directly on conversions of SC owners.

FAC gets to vote the weeks that owners have converted to FAC plus the weeks and Equivest points that Festiva bought from the resort that were unsold, reposessed, or deeded back to the HOA. We also know that the number of Festiva Adventure Club votes at Southscape will increase every time an owner converts to FAC.

What Somerville keeps asking is what is the number of votes currently owned, controlled, and voted by Festiva at Southscape.

 

[somerville]

...

The bottom line is that there is no inherent ability of FAC to provide lower m/f. It simply depends on the situation at your current resort.

You are correct. There is no ability of FAC to provide lower maintenance fees. Usually, the points clubs have higher fees. In preparing a budget each year, the board of a timeshare resort must factor in a certain percentage of owners who will default on their maintenance fees. Maintenance fees must be adjusted higher so the resort can collect enough fees to run the resort for the year. An aggressive collection policy can help keep the number of defaults down.

In addition to the resorts at which FAC owns intervals including additional amounts to cover defaults, FAC must also increase its annual membership fees by an amount that covers its additional administrative costs and its defaulting members. This year's FAC budget included a budget line item that factored in a nearly 10% default rate. 10% is very high, and makes me question their collection policy and the credit worthiness of the consumers that they are selling points to.

With points, it is almost like fees on fees. In the long run, I do not see how any points system can be less expensive than owning a deeded week, unless the developer is subsidizing the points system fees.

 

[ecwinch]

Outfield Marketing in engaging in deceptive sales practices (surprise! surprise!) by presenting lower MFs and no special assessments as an advantage of joining the Club.

I would disagree with the characterization you present. Based on what FestivaRep presented, there would be no special assessments, as those are blended into the m/f. And those amounts are diluted by spreading the cost over all FAC members.

And as noted earlier, m/f's should be lower - at least in short term. But that might not be true in the long run. IMHO that is just sales spin, not deceptive sales practice.

 

[tombo]

I would disagree with the characterization you present. Based on what FestivaRep presented, there would be no special assessments, as those are blended into the m/f. And those amounts are diluted by spreading the cost over all FAC members.

And as noted earlier, m/f's should be lower - at least in short term. But that might not be true in the long run. IMHO that is just sales spin, not deceptive sales practice.

If you own Festiva Points at a resort that doesn't have an assessment, you will be paying more than non FAC owners at your resort since you are subsidizing assessments at all of the resorts Festiva owns. So far I haven't been assessed at Blue Ridge Village, so FAC members at Blue Ridge Village are paying more to subsidize the assessments at Southscape and other Festiva resorts with current assessments than I am paying as an owner at Blue Ridge Village. I don't like any assessments, but if I am going to pay them I only want to pay assessments at the resort I own and use. If the socialist model where everyone shares fees sounds like a good deal, then you one would love subsidizing other things they don't own like AIG. You will get the same chance to vote and give input on Festiva's assessments and MF increases that you had on the AIG bailout, NONE!!

 

[ecwinch]

I understand that - I think that was the essence of my point a few posts back. But until recently this thread was about SC. For a current owner, FAC will:

1. Protect them from special assessments. FAC apparently does not have special assessments, as they build them into their m/f.

2. At least right now at SC, the m/f is lower.

For certain owners (i.e. someone on a fixed income), protection from an unexpected bill (i.e. special assessment), is a valuable benefit. While IMHO the benefit received is not a good value, for some it may have value.

So, at least for current SC owners, these selling points are true. So, not deceptive sales practices. Based on what you are saying, the same representation to a Blue Ridge owner would be a blatant deception.