Harbour Point Maintenance Charge Question? (Merged threads)

[Thinking]

My statement shows a charge of $115 for "20008 2007 Refurb Loan Payment". Does anyone know what this is for?
I already paid that huge $435 assessment just a couple years ago.
I have no clue on this new charge.
Can anyone help??

Much appreciated!!

 

[Thinking]

One more Harbour Point Question

Noticed the Mgmt Fee went up 69% from last year --- did anyone get a reason for that increase?

 

[Dave M]

If you look at the info that you received last year, I think you'll find your answer. There was an identical $115 charge which you paid for 2008. The 2007 refurbishment project was more extensive than originally planned. In that connection, read this excerpt from your summer 2007 Harbour Point newsletter:

The remediation and abatement work has been costly, as has the additional build-back work, with a projected cost overrun of between $2.2 and $2.5 million. This cost will NOT, however, be financed through another assessment. The Board approved last year’s assessment with great reluctance and with Marriott’s assistance has negotiated a loan with South Carolina Bank & Trust to cover most of the costs. The Board will secure a 5-year loan for $2 million to be retired through a surcharge added to the annual maintenance fee beginning in 2008. The amount of the surcharge will be between $100 and $115. Any surplus available in the Reserve Fund may also be used to pay off the note. It is hoped that early notification of this additional charge will help owners prepare and budget for it.

So you can probably expect a similar charge for the next three years.

 

[Thinking]

Thanks for the quick response.

I could not find my old letters on this topic.

Funny how they state they did want to do another assessment, but its ok to charge us $115 a year extra and call it a Loan Repayment.

Five years of this will be much more than the original assessment.

Management at that site is a joke.

 

[Dave M]

Noticed the Mgmt Fee went up 69% from last year --- did anyone get a reason for that increase?

My figures show as follows:

2008
Operating fee - $543.96
Reserve fee - $234.68
Loan repayment - $115.00
Property tax - $49.16

Total - $942.80

2009
Operating fee - $605.15
Reserve fee - $214.09
Loan repayment - $115.00
Property tax - $54.58

Total - $988.82

That seems like less than a 5% overall increase - and very reasonable - no matter what the individual components are.

 

[Thinking]

That is deceiving, as the reserve fee -- which is basically a variable charge that is not tied to the operating costs went down $20, which masks some of the operating cost increases.

The overall Operating cost is up $61, which is an 11.2% increase (61/544)-- much more than basic inflation adjustment.

When you look at the details of the operating budget the line item for Mgmt Fee jumps out at you at a 69% increase -- going from $33 per room per year to $56.

All I am trying to do is understand what happened to drive such an increase. I could assume they renewed the contract with Marriott for the management of the site, though I think they need some new negotiators as if I was able to arrange a 69% price increase to my customers I would be a very happy camper!!

 

[Dave M]

I don't own at Harbour Point, but the Spring 2008 HP newsletter discussed the management contract renewal and mentioned that it would cost more. An exceprt:

Harbour Point is in the final year of its current 10-year management contract with Marriott Vacation Club. Marriott Vacation Club has proposed a new contract which contains an increase in the management fee as well as changes in the way the fee is calculated. It is currently under review by a committee appointed by the Board.

 

[lovearuba]

be grateful you dont own at Marriott Ocean club

Our total cost for a 2 bedroom for 2009 will be approximately $2300...

 

[Thinking]

Thanks again Dave!

I guess they reviewed and found a 69% increase from Marriott to be acceptable.

And yes, I guess when compared to $2300 for Aruba things are not all bad. That said, it doesnt mean folks should gladly accept such cost increases in these economic times.