letter from an owner to the board .. w/ permission
Officers of the Board
Aruba Ocean Club
Gentlemen:
I have recently read your letter to owners dated May 2009 and I am compelled to respond to several misstatements and efforts to mischaracterize well meaning actions of individual owner’s who are seeking nothing more than to have each of you and Marriott Vacation Club International do the honorable thing to cure misrepresentations, misstatements and an absolutely abysmal record of irresponsible governance.
As individual officers you have ignored the many complaints and letters from owners such as myself, pointing out the facts, not as you and your Marriott colleagues so often misstate them. So let me review them for you one more time:
FACT-Marriott sold owners a defective building with an aged structure and defective roof, windows and probably other structural issues which would
later account for the significant damage caused by last year’s hurricane. I first hand witnessed during year one of occupancy severe leaking of the roof into numerous rooms causing the front desk staff to move a number of owners into the hotel or dry quarters if they could find any at the Aruba Ocean Club. Having occurred in year one, the defective roof could not possibly have resulted from “ordinary wear and tear” of Aruba weather as you and your Marriott colleagues once contended.
Over the years this condition has gotten progressively worse with water pouring in from windows, buckets being placed throughout the lobby area to catch cascading water from the ceiling and Marriott sales people using waste baskets to catch the water leaking from the ceiling in the sales area. Portions of the ceiling in the sales area and in hallways have also collapsed. Notwithstanding many complaints to Marriott representatives and sales personnel, no action was taken to cure the roof, window, etc. defects until this Board under the leadership of Allan Cohen pressured Marriott and retained counsel and threatened to sue.
All Marriott did until then was to continue to knowingly sell units at the Ocean Club to unsuspecting purchasers without disclosing the roof and other defects.
FACT, the reward to Allan Cohen for standing up for owner interests was that you as officers working with your Marriott colleagues would revoke a previously passed motion to change the bylaws provision on term limits which would then give the owners the right to decide whether he (Alan Cohen) could run for another term. Taking that action, you could then get him off the Board. And who becomes President as a result of this abrupt change in position-why it’s Frank Knox!
FACT, you and your colleagues on this Board have continued to ignore complaints from owners about this situation and made a deal with Marriott to incur substantial expenses in renovations and charge owners special assessments before it was clear if the structure was sound and free of mold and whether these renovations were needed. Clearly, these renovations at the Ocean Club, characterized as bringing the Ocean Club up to Marriot standards ( Do Marriott standards include defective buildings?) could be a
financial windfall for Marriott if it were part of a Marriott plan to then role it out at other properties where Marriott can possibly reap financial gain from special assessments, higher maintenance fees or other benefits they might gain from suppliers of goods and services. You may not be aware, or may not even care, that Marriott had reportedly been sued several years ago by franchisees concerning failure to share payments from suppliers. Actually, as an owner of weeks at another Marriott property, I have first hand begun to see the Marriott “renovation” plan unfold at other properties.
FACT-working in concert with Marriott, you have done everything you could to deny owners the opportunity to exercise their rights to vote and or call special meetings to dismiss individual officers and Board members. Owners contacted you and Marriott and inquired several times about any requirements for calling a special meeting as defined in the owner documents. You ignored all these communications, never responding until you received a formal call for such a special meeting agreed to by over one thousand owner weeks and then you and Marriott allegedly discovered
some Aruba requirement concerning validation of owner consent and denied such request on that basis. Further insulting to owners is that you and Marriott have the owner list and information which you could have used to confirm the names on the list supporting the call for a special meeting but you refused. Just as you refused to respond to the requests about any requirements other than in the owner documents concerning a special meeting and just as you denied access to the names and addresses of owners to owners seeking to call a special meeting. Apparently, terms like fair dealing and good governance have little place in either your lexicon or that of Marriott’s.
In summary, do not make statements characterizing other persons conduct and actions as misrepresentations or misstatements when you and your Marriott colleagues are the ones who should be looking in the mirror. Owners overwhelmingly rejected the Knox administration in their votes and it was only Marriott casting votes for the first time for A (owner) members which they have never done before that kept you in office.
The facts speak for themselves-under your administration, owners have no role in any decisions and their right to vote guaranteed in the ownership documents is illusory as Marriott can and will overrule it at will to satisfy their own business goals. Every Marriott time share owner and any potential purchaser should be outraged at Marriott’s actions in nullifying owners
right to vote.
As a former corporate attorney and executive, and as one who has served on several Boards, I have never ever seen such outrageous conduct by individual Board members and a major corporation. Any “fear mongering and threats” lie with you and your colleagues at Marriott Vacation Club International. Nice job in jointly sullying the name of a once proud and well respected corporation and Resort. Your actions and that of Marriott are deserving of public scrutiny and any resulting recriminations.
Sincerely,