New KBV Ballot in the mail [separated from older thread]

[waginger]

Was there a board meeting yesterday? Did they put out any new information?

 

[benoma88]

Have you learned anything new about the proposal? Janet Torres

Would you elaborate on new proposal?

 

[magmue]

Would you elaborate on new proposal?

As an owner you should have gotten a snail mail letter with ballot. See the pdf in post #6 of this thread for full text.

 

[PAD]

Who do you think are the members of the Apartment Owners Association, if not the owners of the various apartments?

Apologies but IDK who owns what units, or the degree that AOA includes Wyndham corporate ownership.

My understanding (please correct me) as applicable:
1. Wyndham corporation owns a part of the resort AND operates with a majority on our Board of Directors.
2. This duality appears to be a conflict of interest ... a Board which may be operating to advance Wyndham Inc interests more than a Board operating to advance our individual owner interests.

So unless this conflict of interest appearance is resolved for me (someone can show me where I'm mistaken on our Board's conflict of interest), I'm voting "No". I would like to see a non-profit-operated Board that's dedicated to advancing individual owner interests ... not one set up to shield Wyndham's current interests.

 

[bnoble]

My point is that we are all part of the AOAO, because we own (part of) a unit. So "screw those guys, I hope they get what's coming to them" is of limited value.

 

[PAD]

My point is that we are all part of the AOAO, because we own (part of) a unit. So "screw those guys, I hope they get what's coming to them" is of limited value.

Yes, we all have skin in the game.

Reading from your last comment (you put in quotes), I can say that is not my attitude, or my opinion.

My point: we don't have to accept a recommended Board vote as a "one shot" opportunity, or as "take it or leave it".

For example, if we all voted "No" to the proposal (until/unless our Board Members' conflict of interest is resolved by demanding Wyndham's agents resign from the Board of Directors) THEN our Board can reissue the vote and expect to receive our"Yes' on the proposal.

In other words, we shouldn't just grant non-profit protection to a Board (with a "Yes" vote) without assurance the Board will cease operating in Wyndham's interests over our interests.

 

[bnoble]

I don't believe that will ever happen. So, I'm voting in what I believe to be my best interests, not in hopes of a hypothetical universe that is vanishingly unlikely.

 

[mklaus1]

I asked ChatGPT a couple questions on incorporating.

“My timeshare association wants to incorporate, why would they want to do that?”

Incorporating a timeshare association can provide several benefits, including:

1. Legal Protection – Incorporation creates a separate legal entity, reducing personal liability for board members and protecting individual owners from lawsuits against the association.
2. Tax Benefits – Depending on the state and tax structure, incorporation may provide more favorable tax treatment. It can also make it easier to comply with IRS requirements.
3. Clear Governance & Structure – Incorporation establishes formal bylaws, governing documents, and a legal framework for decision-making, ensuring consistency and transparency.
4. Easier Contracting & Financial Management – A corporation can enter contracts, hold assets, and manage finances independently of individual owners, which can be useful for securing loans or negotiating vendor agreements.
5. Improved Continuity & Stability – A corporation continues to exist beyond changes in board members or owners, ensuring long-term governance and stability.
6. Enhanced Credibility – Being a legally recognized entity can improve the association’s credibility with banks, vendors, and potential buyers.
7. Compliance with State Laws – Some states may require timeshare associations to be incorporated to enforce rules, collect assessments, and operate legally.

“Does it make it easier or harder to sell the development?”

Incorporating a timeshare association can have mixed effects on selling the development, depending on the circumstances:

How Incorporation Can Make It Easier to Sell the Development:​

1. Clear Legal Entity – A properly incorporated association provides a structured governance model, making the development more attractive to buyers, investors, or management companies.
2. Liability Protection – Buyers may feel more comfortable knowing that legal and financial risks are separated from individual owners.
3. Financial Stability – A corporate entity can hold reserves, collect dues, and manage finances more effectively, making the property more appealing to potential buyers.
4. Streamlined Contracts & Ownership Transfers – Incorporation can simplify the process of transferring ownership of common areas, amenities, and assets.

How Incorporation Can Make It Harder to Sell the Development:​

1. Additional Legal and Regulatory Requirements – Some buyers may see incorporation as adding complexity due to required filings, bylaws, and compliance obligations.
2. Potential Tax Implications – Depending on how the entity is structured, there could be tax consequences that make the sale less attractive.
3. Board and Member Approval – If the timeshare association is incorporated, selling the development may require approval from the board or a majority of owners, adding an extra layer of complexity.
4. Perceived Bureaucracy – Some buyers may prefer a more flexible, informal ownership structure rather than dealing with a corporate governance framework.

If the goal is to sell the development, the impact of incorporation depends on the buyer’s perspective and how the association is structured.

 

[DeniseM]

@mklaus1 - Weird first post. If you are a spammer, don't bother.

 

[mklaus1]

@mklaus1 - Weird first post. If you are a spammer, don't bother.

People were wondering why they’d incorporate. I think it’s a completely on topic post. But to each their own.

 

[DeniseM]

So you are an owner at this resort?


Sent from my iPhone using Tapatalk

 

[jacknsara]

People were wondering why they’d incorporate. I think it’s a completely on topic post. But to each their own.

Aloha and welcome to the KBV owners public square (even if you are not an owner).
The following link https://tugbbs.com/forums/threads/w...visiting-this-site-for-the-first-time.291693/ contains some history.

I'm guessing this was not your first inquiry to ChatGPT but that doesn't matter. The question you posed "“My timeshare association wants to incorporate, why would they want to do that?”" was focused on the wrong entity. It is not the timeshare Interval Owners Association (IOA) that is proposing to incorporate. It is the Association of Apartment Owners (AOAO) - which is equivalent to a condominium's home owners association.

Since the BOD of the AOAO and IOA and I want the partition vote to succeed I'm willing to accept whatever reasonable proposal they make.
Jack

 

[Lowry]

We've been talking about this lawsuit pretty much since it has been filed. I do think people should read the documents, as they are interesting. It is worth remembering that they are not statements of fact, but assertions by each side, so neither side is necessarily completely (or even mostly) correct in their contentions.

Having paid at least semi-close attention to the lawsuit more or less since it was filed, here's my otherwise uninformed, speculative, and "I am not a lawyer" take on the current state of play: the Defendants' strategy is to starve the whole owners while continuing to limit the possible amount they can receive, to get them to give up and go away.

This is from memory, because the site is down at the moment, but here's what I remember:

• The IOA (the entity that represents the timeshare owners) was removed from the defendant list by summary judgement.
• The plaintiffs failed in their attempt to certify as a class.
• There is a draft summary judgement order removing Wyndham as a defendant; I don't think that order has been filed yet, but can't check to be sure.

If I am interpreting things correctly, that pretty much leaves only the AOAO and individual Board Members as defendants. I think there might be another entity or two in the defendant list, but I can't remember---maybe they are trying to bring in the original developer, but I'm not sure that entity exists anymore.

This vote is to limit the amount that the whole owners can possibly extract from the AOAO. Even if this vote fails, the AOAO is just "the people who own the apartments". Wyndham is one of those "people", but so are all of the rest of us. If that petition for summary judgement removing Wyndham as a separate entity (apart from their existing ownership) with liability succeeds, then the prospect of the whole owners having access to anyone with deep pockets gets very small very quickly.

At the same time, the AOAO has moved forward to levy special assessements against each apartment. They chose to do this in three installments. Conveniently, this puts each invidual timeshare week owned under the $5K "action limit" that was previously reported by one of the two Boards, even if they choose to pay neither this year's fees nor the special assessment.

By contrast, the whole owners will be well above that number---and will have to come up with low-six-figures or be subject to a lein, and eventually foreclosure. That's a long row to hoe, but if that's what the AOAO has to do, it seems like they'll be wiling to do it.

So, it seems to me that the defendants are moving as many levers as they can to get us closer to the ultimate end game for the resort, which is to partition it from the condo site plan and sell it at forced auction.

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

I will be the first to admit that I'm biased and have a stake in the outcome, because I currently own a couple of weeks here. But, I've read the engineering report describing the problems with the buildings and the remediation plan, and as far as I can tell most (if not all) of the problems are structural. They are due either to failures during construction, or design elements that maybe were not the wisest choices in an oceanfront environment. For example, maybe using steel pre-tensioned concrete in a corrosive coastal marine environment wasn't the smartest idea. In contrast, few if any of the problems seem to be due to negligent maintenance, and I definitely don't see the case for "only the oceanfront buildings were neglected" seeing as how all of them share most of the same problems.

So, I think the whole owners' claims, as presented, are probably more or less without merit. Why are they pressing? Because unless they can get a chunk of money via a Hail Mary lawsuit, they are well and truly f*****. They have an "asset" that two years ago was worth mid-six figures, and now is worth significnatly less than that---namely, whatever we end up getting at auction. Given Kauai County's stance on development, particularly outside of established tourism zones, that's probably not very much. At all.

How many of you could lose half a million dollars overnight without losing much sleep? If you were facing such a loss, how far would you go to try to get some of it back, even if it wasn't very likely to succeed?

That's where we are.

Thank you for your detailed commentary of the ongoing issue with KBV… the board has never been open or willing to detail the ongoing issue with the resort …
My post was to
comment on the Ballot mailing received January 30.
We own even and odd years . Have paid the 25 maintenance fee, family will be staying at the resort in June . Our hope, the litigation will be settled this year, partition of the property move forward .. the uncertainty and the extra added cost has been very stressful, especially for those of us that are retired and have limited income. Continued ownership with the possibility of ongoing costly assessments We will be casting two
No
votes..
PS can anyone please explain the value of the IOA being incorporated ?

 

[DeniseM]

Go back and read this whole thread for that info,