DeniseM
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A friend and KBV owner sent this email to me (and other KBV owners) today, and I have his permission to post it. He has been investigating the KBV situation. This is not official - but I found it very interesting:
So.....to get started, I'll tell you about some things that are NOT in the newsletter that are important to know. Our particular board (as well as the associated AOAO, which we're also a part of), since having been taken over by Wyndham-sympathetic members, has not been very transparent about what is going on at the resort.
1) The AOAO owners, which is comprised of whole condo owners (and us, as well, but their main voice is the whole, year-'round condo owners), have filed a lawsuit against the AOAO board and Wyndham Management for a number of things, including the lack of good maintenance of buildings F, G, and H (as most of the wholly owned condo units are in those buildings). Part of their complaint is the inability to make money from private rental due to their inability to use their condos because of the lack of good maintenance of the buildings.
As you may know, the AOAO has the contract for the Plan Manager that is responsible for the maintenance of the integrity of the buildings (The IOA holds the contract that is responsible for the maintenance of the interiors of the units). So when Grand Pacific was our Plan Manager, they were only responsible for maintaining the interior of the units as well as other things. They were the ones who also arranged to allow us the use of the hotels next door. Interestingly, part of the AOAO's lawsuit includes a complaint for the use of funds allowing us to use the hotel's pools. But the fault in this is that the ENTIRE funding allowing us to use the pools is exclusively through the IOA maintenance fees. NO funds from the AOAO are used in the agreement between the IOA and the hotel.
2) In the latest IOA newsletter, the IOA board blames the need for major renovations (totalling 56 millions dollars) on the original construction of the buildings. Ironically, Wyndham Management has been responsible for the maintenance of the buildings since at least 2005. One of the reasons that the AOAO many years ago were trying to replace Wyndham is that they discovered that they were not doing their due diligence with regard to building maintenance. But Wyndham got their people on the AOAO board, throwing off those who were trying to fire their management company, and were able to avoid getting their contract ended. The IOA at that time, fortunately were able to get rid of Wyndham, at least for a few years, and replaced that company with Grand Pacific. But as you know, Wyndham was able to successfully get their people on the board for essentially hostile takeover.
But don't let the IOA board tell you that the current problems with the buildings is due to the original build quality. Wyndham had decades to work on these buildings. Instead, they took short cuts and didn't do proactive work on them, instead pocketing the maintenance fees as profit.
3) The ~$8000 assessment? Man, that's pretty outrageous. And I don't trust this board. That they didn't even tell you about the AOAO membership lawsuit (Again, this is not the AOAO board's lawsuit. It's a lawsuit against individual members of the AOAO board and Wyndham) should say something to you. I own two other timeshares. When their is a lawsuit against the association, we hear about it.
If this were Grand Pacific telling me this, I'd put more trust in them. But part of me wonders if some of this money they're asking for is about helping to fund they lawsuit against Wyndham and the board.
I can't help but remember the conversation I had with an industry insider who works in Hawaii who said that the KBV resort property is the finest location in all of Kauai. It's hard to let go of. I still get good value out of trading the RCI Points when I do for the maintenance fee, even as current, but the ~$8000 assessment? I could buy a nice week at another resort for that, with lower maintenance fees. But at KBV? And what would stop Wyndham from asking for more down the line? Again, if this were Grand Pacific, I might seriously consider it. But I'm so skeptical, even cynical, as well as practical. Your mileage may vary.
4) Finally, and this is third-hand info (and I'm trying to confirm this, but the source is a good one), this whole situation has gotten so big that Wyndham is trying to get out of KBV. That's a laugh if it weren't so sad.
So what are your choices at this point? We can discuss it. You wouldn't be able to sell your deed at this point, since their is a lawsuit against the resort. You'd have to mention it to a prospective owner. Should you just decide to let it go and stop paying your maintenance fees? Could do that, although your credit might take a hit. At this point, Wyndham isn't going to take your deed back, I don't think.
I have written the attorneys who have taken up the AOAO body's lawsuit against the board and Wyndham. I gave them a rundown on the history of Wyndham at the resort and their attempts to take over the boards. One of the attorneys wrote me back, thanking me for the info and said they'd be in touch. [A former KBV Board Member], (who is also on this list and this email), has also been in touch with the lawfirm, more than I have, actually. (The lawfirm is Revere and Associates, terry@revereandassociates.com, with Terry Revere being one of the lead attorneys.).
So.....to get started, I'll tell you about some things that are NOT in the newsletter that are important to know. Our particular board (as well as the associated AOAO, which we're also a part of), since having been taken over by Wyndham-sympathetic members, has not been very transparent about what is going on at the resort.
1) The AOAO owners, which is comprised of whole condo owners (and us, as well, but their main voice is the whole, year-'round condo owners), have filed a lawsuit against the AOAO board and Wyndham Management for a number of things, including the lack of good maintenance of buildings F, G, and H (as most of the wholly owned condo units are in those buildings). Part of their complaint is the inability to make money from private rental due to their inability to use their condos because of the lack of good maintenance of the buildings.
As you may know, the AOAO has the contract for the Plan Manager that is responsible for the maintenance of the integrity of the buildings (The IOA holds the contract that is responsible for the maintenance of the interiors of the units). So when Grand Pacific was our Plan Manager, they were only responsible for maintaining the interior of the units as well as other things. They were the ones who also arranged to allow us the use of the hotels next door. Interestingly, part of the AOAO's lawsuit includes a complaint for the use of funds allowing us to use the hotel's pools. But the fault in this is that the ENTIRE funding allowing us to use the pools is exclusively through the IOA maintenance fees. NO funds from the AOAO are used in the agreement between the IOA and the hotel.
2) In the latest IOA newsletter, the IOA board blames the need for major renovations (totalling 56 millions dollars) on the original construction of the buildings. Ironically, Wyndham Management has been responsible for the maintenance of the buildings since at least 2005. One of the reasons that the AOAO many years ago were trying to replace Wyndham is that they discovered that they were not doing their due diligence with regard to building maintenance. But Wyndham got their people on the AOAO board, throwing off those who were trying to fire their management company, and were able to avoid getting their contract ended. The IOA at that time, fortunately were able to get rid of Wyndham, at least for a few years, and replaced that company with Grand Pacific. But as you know, Wyndham was able to successfully get their people on the board for essentially hostile takeover.
But don't let the IOA board tell you that the current problems with the buildings is due to the original build quality. Wyndham had decades to work on these buildings. Instead, they took short cuts and didn't do proactive work on them, instead pocketing the maintenance fees as profit.
3) The ~$8000 assessment? Man, that's pretty outrageous. And I don't trust this board. That they didn't even tell you about the AOAO membership lawsuit (Again, this is not the AOAO board's lawsuit. It's a lawsuit against individual members of the AOAO board and Wyndham) should say something to you. I own two other timeshares. When their is a lawsuit against the association, we hear about it.
If this were Grand Pacific telling me this, I'd put more trust in them. But part of me wonders if some of this money they're asking for is about helping to fund they lawsuit against Wyndham and the board.
I can't help but remember the conversation I had with an industry insider who works in Hawaii who said that the KBV resort property is the finest location in all of Kauai. It's hard to let go of. I still get good value out of trading the RCI Points when I do for the maintenance fee, even as current, but the ~$8000 assessment? I could buy a nice week at another resort for that, with lower maintenance fees. But at KBV? And what would stop Wyndham from asking for more down the line? Again, if this were Grand Pacific, I might seriously consider it. But I'm so skeptical, even cynical, as well as practical. Your mileage may vary.
4) Finally, and this is third-hand info (and I'm trying to confirm this, but the source is a good one), this whole situation has gotten so big that Wyndham is trying to get out of KBV. That's a laugh if it weren't so sad.
So what are your choices at this point? We can discuss it. You wouldn't be able to sell your deed at this point, since their is a lawsuit against the resort. You'd have to mention it to a prospective owner. Should you just decide to let it go and stop paying your maintenance fees? Could do that, although your credit might take a hit. At this point, Wyndham isn't going to take your deed back, I don't think.
I have written the attorneys who have taken up the AOAO body's lawsuit against the board and Wyndham. I gave them a rundown on the history of Wyndham at the resort and their attempts to take over the boards. One of the attorneys wrote me back, thanking me for the info and said they'd be in touch. [A former KBV Board Member], (who is also on this list and this email), has also been in touch with the lawfirm, more than I have, actually. (The lawfirm is Revere and Associates, terry@revereandassociates.com, with Terry Revere being one of the lead attorneys.).