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suzanne

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I received a letter from The Plaza Resort in Reno, NV that they are ceasing operations as a timeshare property. I have owned 2 weeks there since the 1985.

They have given me the option of signing the weeks back over to them or selecting one of 3 resorts to transfer to by playing $325.00 transfer fee. I plan to return the weeks back to the as I don't want any of the selections offered in Tahoe.

They said that the building will be sold once all weeks are either returned to them or transferred to the resorts offered. They also said that after the costs involved in ceasing operations there will not be any funds left to pay out to members. That's the part that sucks to me. I have owned the 2 weeks free and clear and have always paid maintenance fees when due. I find it hard to believe based on property values that there will not be any funds left after the building is sold. Its prime property sitting along side the Truckee River, 2 blocks off the main strip in Reno. Its always been a Gold Crown Resort since RCI was started.

They have based closing on delinquent maint. fees and lack of unit sales over the past few years.

Thanks for listening to me rant.

Suzanne
 

vacationhopeful

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I smell a 'rat' ...

If you have any of those old financial statements ... like last year or three or so ... this debt (and slow payment of MFs would have to be shown).

Sounds like they (the management company) has received a offer (either inhouse or sweetheart deal) to take over the resort for another casino, full share condo or the LAND to build something.

Stand firm ... I would bet the "offered pot" will increase .. first takers will be the GLAD TO DUMP it crowd.

As for their 'comment' as "ceasing operations will use up all the funds" .... want to bet some BONUS CHECKs will be handed out to management along with sweetheart termination deals?

PS Older and underfunded resorts look and feel run down way before closing. Vacancy is high, lobby furniture is older than the stuff at grandma's, bed & sofas in the units been their for 20+ years, staffing is light & full of either recent HS dropouts or people on social security, no lobby plants & unpainted, no nice landscaping.

It is a SLOW and VISIBLE death of a resort.
 
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Ty1on

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I smell a 'rat' ...

If you have any of those old financial statements ... like last year or three or so ... this debt (and slow payment of MFs would have to be shown).

Sounds like they (the management company) has received a offer (either inhouse or sweetheart deal) to take over the resort for another casino, full share condo or the LAND to build something.

Stand firm ... I would bet the "offered pot" will increase .. first takers will be the GLAD TO DUMP it crowd.

As for their 'comment' as "ceasing operations will use up all the funds" .... want to bet some BONUS CHECKs will be handed out to management along with sweetheart termination deals?

PS Older and underfunded resorts look and feel run down way before closing. Vacancy is high, lobby furniture is older than the stuff at grandma's, bed & sofas in the units been their for 20+ years, staffing is light & full of either recent HS dropouts or people on social security, no lobby plants & unpainted, no nice landscaping.

It is a SLOW and VISIBLE death of a resort.
I know downtown Reno really well. There are no casinos interested in that property. Lots of defunct casinos have gone condo, and there is a project or two for new construction condos. It's all the rage there, so my guess is that this does in fact become another condo project added to the glut.

That said, I agree wholeheartedly with holding out....I don't believe they can just take an owners deed from them, and it will be interesting to see how they pull off getting owners to deed back to them and then pocketing 100% of the sale proceeds.

And, OP, I don't think they're telling you there will be no funds left after selling the property. I think they're telling you they're exhausting any association funds. Their clear intent is to have owners give them the deeds so they can sell the building and reap the proceeds.....A former owner wouldn't be due anything.
 
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Dori

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Something doesn't seem right to me either. Our home resort, Harbour Inn, Ontario, Canada, was facing many issues such as aging, older owner base, delinquent weeks, etc.

As a whole, the owners voted to sell the resort. After all dispensations, owners who were current with their MF's received a percentage of the net profit. We were very happy with the cheque we received.

This sounds sort of like what has happened in so many South Africa resorts. Stuart Lamont turned them into rental units. The only difference being we are expected to keep paying our MF's in hopes that our owned week will be rented out.

I would certainly investigate this further.

Good luck!

Dori
 

suzanne

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Thanks everyone for your advice. I have a call into the Plaza Management Group for more information. I also have to call RCI to find out if my deposits from 2015 and 2016 are going to be honored for future exchanges or frozen. At least that's what the letter stated from the plaza. It further stated no reservations for 2017 will be taken by the resort and any already reserved and deposited with RCI will be frozen and reservations made with RCI using 2017 deposits will be cancelled.

I will keep you updated on what I find out.

Suzanne
 

vacationhopeful

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Thanks everyone for your advice. I have a call into the Plaza Management Group for more information. ..<snip>

I will keep you updated on what I find out.

Suzanne
Suzanne ..

A call to Plaza Management Group will most likely be answer by a sweet, young thing who KNOWS NOTHING...thereby, can't tell you anything. And don't bother waiting for a more informed person to call you back ... their interest is getting a free and clear title from each timeshare owner.

I would call the planning commission where this property is located and ASK if anyone has been researching OPTIONS for converting to condos, demolishing structure or rezoning the property for a different use than timeshares. And call over several over several weeks to get different answers from different staff members.
 

rickandcindy23

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Linda of course is right! There is underlying value in the real estate and no one should benefit from your weeks, because you own the deeds.

You should definitely find out what entity is taking over the property and what the cash price for the real estate is.

Admittedly, the real estate value is not going to be nearly what you paid, because 52 weeks X developer purchase is a lot of money for a condo, and then there is the inflation on the money you paid. But you should get something.

They are definitely trying to get all weeks back without paying for them.

What management company is this?
 

suzanne

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UPDATE: According to RCI my 2015 and 2016 weeks are safe. They will not be frozen or cancelled. That's a relief. As many of you know I lost my beloved husband last November. Due to his long battle with cancer we were not able to travel and use those weeks like we normally would have.

Still nothing from the Plaza Resort. I will try finding out the information that some of you suggested.

Suzanne
 

baf99

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Apparently a lot of the older hotels in downtown Reno are being converted to condos. Some of them right around the Plaza Resort.
http://aroundcarson.com/2005/09/02/the_reno_condo_invasion/

I wonder if something similar is planned for the Plaza, or the property. I agree with others that it seems as if the management group is trying to get people to give up their deeds to avoid distributing proceeds from the sale of the property.
 

Bwolf

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Suzanne: Where is the Board of Directors in all this? You mention the management group but not a BOD. Is there no BOD representing the owner's interests?

Those who smell a rat are spot on.
 

suzanne

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UPDATE 2: One of the ladies on the Board of Directors did return my phone call. The Board has been trying to run the resort as they lost the last 2 companies that was hired to handle sales and marketing. Then the person that was trying to handle it at the resort moved away from Reno. They tried to get another group to take it on and they cancelled at the last minute deciding they would only do their on points based club and did not want to be involved with a weeks based resort. They have found a development company that is going to advance them enough funds to continue to operate thru the end of 2016 and cover the expense of recovering all of the weeks whether current or delinquent on the maintenance fees, plus cost of retitling all the weeks back to the Plaza. Once this is done then the Plaza will belong to them without any further cash payout. She said that this was not what they wanted but could see no other choice. They could not find any company willing to take it on as a weeks timeshare.

The Plaza was originally a hotel. It was converted to Studio for 4/2 timeshare units in early 1980's. It was remodeled and marketed as timeshare weeks. Somewhere in the fine print of the by-laws it states that they could cease operations in 2020 if the situation warranted it, and it could be changed by a majority vote by the board to do so earlier. The Board used this option as they did not have the money to continue operating until 2020.

She said the hard part is having to let people go that have worked there for years. All of the Board of Directors own weeks at the resort and have like me for years. The staff are like family members. She said its very difficult time for them all.

So this is all I know at this point. If anything further comes up I will let you all know.

Suzanne
 

Talent312

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As another poster said, once you release or transfer your TS, you are history and owed nothing. But if you hang onto your deed until after they shut-down, then you and any other hold-outs will likely become tenants-in-common with the company. You'll be a stake-holder with who they'll have to deal. Even if your share in the property is ridiculously small, I'd hang onto it until they put something on the table to be rid of you.

Note: I'm not a licensed Nevada lawyer, so this is based on general principles.
You should consult a Nevada attorney to determine your legal rights.

.
 
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Dori

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We also had a similar clause at Harbour Inn. Every 10 years or so, we, as owners would vote to keep it open or dissolve and sell the property. Did the owners not get a chance to vote on this?

Why can't the resort be sold as an entire entity? Harbour Inn is now a Knight's Inn. Somehow, the explanation you have been given seems suspect.

I agree with Talent 312 and others. Don't give up you deed until you and other owners see how this whole thing plays out.

Dori
 

Ty1on

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It may be that by the contract, the board can vote to dissolve the association without consulting owners. However, you still own n/51 of a unit in that building. I don't think they can vote to take your real property away from you, and I don't think they can vote to pledge real property you own to another company, whether they are advancing funds to the association or not. As mentioned above, you might want to see a RE attorney in Reno.
 

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Hopefully someone is getting a kick back in the situation you describe. Why bother to continue ad not just sell now?
 

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Plaza Resort

I own two units and just found out about the Plaza's situation in October.

What is strange to me is that this situation was never documented in the prior year's Annual Meeting Minutes. If they were working on a solution, it should have been discussed in the 2015 meeting.

My last email with questions to the Board have gone unanswered.

As people have stated...don't give up your Deed(s).

Too bad we cannot learn the names/email of the owners.
 

suzanne

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I received a letter from Mr Dreschler couple of weeks ago saying they had found a new management company and they would not be closing after all. I called this morning and spoke with a lady regarding his letter as I had sent an email to him 2 weeks ago requesting that the Plaza honor the letter regarding taking the weeks back or transferring ownership to another resort. Told her he had not responded to my email even though his letter said that was the preferred way to contact the Plaza. She said that they would honor the agreement and it would take 2 to 3 weeks for me to receive an email with the documents and I would need to print it off, take it to have my signature notarized and return it to the Plaza. If you would like the new customer service phone number send me a PM and I will send it to you.

Hope this helps.

Suzanne

I own two units and just found out about the Plaza's situation in October.

What is strange to me is that this situation was never documented in the prior year's Annual Meeting Minutes. If they were working on a solution, it should have been discussed in the 2015 meeting.

My last email with questions to the Board have gone unanswered.

As people have stated...don't give up your Deed(s).

Too bad we cannot learn the names/email of the owners.
 

TomWK

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Plaza Resort

The reason I just found out recently (October) about the changes is that I recently relocated and they failed to record my new address. It was only after I did not receive my Yr2017 reservations that I contacted them to find out what's happening. I now have their email and phone number.

I'll decide what to do in Dec/Jan when the new annual maintenance fees are announced. Even though they have a new investor to help the situation, I have a gut feeling the maintenance fees will increase greatly.
 

TUGBrian

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this is certainly a fascinating story, please keep us updated!
 

Kauai Kid

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Patience of Job a good virtue

My timeshare, NaPali Kauai Club, at Princeville is also going out of business. If your situation is similar don't expect things to move rapidly--Condo owners have deeds in 5 units and we should get paid our fair share this January 2017. There are four more condos to sell and it appears to take about a year to find a buyer and do the closing for each condo

The good news is that we are expected to receive about 90% of the monies we originally paid. :cheer:

The bad news the sales are so slow I may be dead before the last units sells. :hysterical:


Sterling
 

silentg

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Thanks everyone for your advice. I have a call into the Plaza Management Group for more information. I also have to call RCI to find out if my deposits from 2015 and 2016 are going to be honored for future exchanges or frozen. At least that's what the letter stated from the plaza. It further stated no reservations for 2017 will be taken by the resort and any already reserved and deposited with RCI will be frozen and reservations made with RCI using 2017 deposits will be cancelled.

I will keep you updated on what I find out.

Suzanne
Hi Suzanne, If you have your own RCI account then take this to the next level. Years ago I had a similar situation, my resort was dropped from RCI due to not keeping the resort up. I had been paying my maintenance fees and membership was up to date. RCI agent told me that since the resort was not affiliated I couldn't use my week for exchange. I talked to a supervisor said "I have kept up my part, why should I be penilized for this?" They let me exchange my week. The resort has since been reinstated but I no longer own there. The point is if you have kept your week current, you should be able to exchange. Good Luck!
Silentg
 

Sandy

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My timeshare, NaPali Kauai Club, at Princeville is also going out of business. If your situation is similar don't expect things to move rapidly--Condo owners have deeds in 5 units and we should get paid our fair share this January 2017. There are four more condos to sell and it appears to take about a year to find a buyer and do the closing for each condo

The good news is that we are expected to receive about 90% of the monies we originally paid. :cheer:

The bad news the sales are so slow I may be dead before the last units sells. :hysterical:


Sterling
Thanks Sterling.

I was just going to join in this discussion referencing our Na Pali Kauai units when I saw your post. Of course, we should not count our eggs until they hatch, but I am hopeful.

Apparently, after reading through this thread, this is becoming a more common occurrence. All in line with the shifting economy and the fact that baby boomers' kids enjoyed the ride, but do not want the future responsibilities. Plus us baby boomers ourselves not wanting the long term responsibility in the future, given our changing life stage.
 

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I received a letter from Mr Dreschler couple of weeks ago saying they had found a new management company and they would not be closing after all. I called this morning and spoke with a lady regarding his letter as I had sent an email to him 2 weeks ago requesting that the Plaza honor the letter regarding taking the weeks back or transferring ownership to another resort. Told her he had not responded to my email even though his letter said that was the preferred way to contact the Plaza. She said that they would honor the agreement and it would take 2 to 3 weeks for me to receive an email with the documents and I would need to print it off, take it to have my signature notarized and return it to the Plaza. If you would like the new customer service phone number send me a PM and I will send it to you.

Hope this helps.

Suzanne
Suzanne, did you ever receive the documents for transferring back your timeshare? I am in the process
of trying to turn my unit back and have not yet received anything.
 
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