Aloha,
For various reasons with a critical one being the ready access to the membership register per Jan 17, 2018 email from
kbvinfo@gpresorts.com , I have decided to submit my name as a candidate for the Kauai Beach Villas (KBV) Board of Directors (BoD) once again. I have decided to re-use this thread from my prior two candidacies. At a minimum, anyone who wants to can assess my statements over that time frame.
Sara and I have already made arrangements to attend the May 2018 annual meeting in person.
I recently submitted my KBV candidate questionnaire. The following is extracted from the contents of that form:
KBV faces significant challenges. The proximate cause of high levels of bad debt for many timeshare resorts including KBV is the negligible or negative aftermarket value of timeshare units. If this were an easy problem to fix, many timeshare BODs would apply the fix. Consequently, it is a reasonable inference that it is not an easy problem to fix. Future success may require the active engagement of the majority of all the owners. Developing communities of common interest / action is the kind of challenge that I have thrived on in the past. Now that I am retired, I have the time and interest to help guide KBV to long term success.
Many of our owners are in or approaching a circumstance where it no longer makes sense for them to continue as owners (i.e. continue paying maintenance fees). It is not easy for these owners to find a buyer for their ownership. The impact of the KBV IOA competing to sell the non performing units it repossesses with current owners trying to get out needs to be carefully assessed. Solutions to this conundrum may require engagement of the majority of owners.
A key decision is whether the current ownership wants to realistically accept the challenge of remaining independent. Assuming they do, then the IOA (led by its BoD) needs to develop and implement strategies to increase the market demand to own KBV timeshares. To my knowledge, the IOA has never had a budget line for marketing.
However, if the majority of the owners do not want to financially commit to addressing the aftermarket challenge, then the consequences of that need to be fully communicated.
Regardless of one’s preferences, these challenges and ideas to meet them need to be communicated bi-directionally between the IOA board and the ownership base. Ultimately, the majority of the owners need to be sufficiently engaged that they actually vote their KBV ballots.
The last ten years of my Boeing career (2004-2014) were in the Office of Internal Governance / Global Trade Controls. I am quite familiar with reading regulations and assuring that plans and actions are compliant. Prior to that, I supported Boeing senior leadership in various tasks including strategic planning. Nearer the beginning of my 30 year Boeing career I was the manager of a group that was responsible for development of the long range capital plan and submittal of the annual capital budget (~$300M) for a major parts making division. I am well versed in the theory of constraints thinking processes which are integrated problem-solving tools based on rigorous cause-and-effect logic.
Mahalo,
Jack
Aloha folks!
Just to let you know that I have also thrown my hat into the ring to run for the IOA board.
I wanted to respond to Jack's remarks about KBV needing a plan for marketing.
As some of you may know, I have been researching, keeping a fairly close eye, on Wyndham's practices as manager since 2005. I have published articles and editorials about it in the publication, TimeSharing Today. I was instrumental in introducing Grand Pacific as a management company to the KBV board, after experiencing several of their timeshares (I don't own any, but stayed at a few and was really impressed compared to what I experienced at KBV via Wyndham.). Part of that research has been the gradual decrease in the sense of value of spending a week at KBV relative to the maintenance fees. That, and it can seem a bit shabby around the edges. Still, the location is awesome. Lack of use of the facilities next door, leaving only the smallish pool and jacuzzi at the rear of the resort, doesn't help. Last year, I started the Yahoo KBV Owners group (You're welcome to be part of that too, if you're an owner. If you're interested in being on that list, send an email to
kbvowners-subscribe@yahoogroups.com
1) Regarding marketing, a
major problem is that the hotel next door, with their relationship with Wyndham, has not allowed Grand Pacific to use any of their space to conduct on resort sales. That is HUGE. The most avid, motivated buyer will be the one that visits the resort and wants to buy in. With no physical space from which to conduct sales nor a model to show, that makes it hard to land the sale. I know I would have never bought a week without being on the property first.
Grand Pacific, furthermore, has done a GREAT job in increasing revenue from rentals. They raised over $800,000 last year. In comparison, in 2016, the last full year Wyndham was in charge of managing the timeshare resort, they did just over $100,000. So Grand Pacific has done really well to raise money to do upgrades (they are about to unveil internal unit upgrade plans as a result). But their hands are somewhat tied with regard to sales. Grand Pacific has been working big time on updating the owners list so that they contact deadbeat owners about paying their maintenance fees as well as making the list available for owners (for non-commercial uses).
And as a side note, Grand Pacific has also increased onsite activities to help make the experience of staying there more fun. They're also trying to organize off-site group trips, such as to museums and restaurants.
If I were to be elected, I would absolutely sure to make an upfront priority to figure out how to create a sales space for Grand Pacific (or whatever company manages our resort). As the units are upgraded (including more air conditioning in the units), and the overall resort experience goes up, there will be more demand to own. And the more paying owners there are, the more valuable your deed will be, and it will be easier to resell them. Furthermore, with more sales activity, it will allow Grand Pacific to help resell your deed. All the dominos, in effect, will follow.
2) On the front burner currently are negotiations, led by our General Manager, Clinton Owen (a Grand Pacific employee), to put in place an agreement between the hotel and KBV to allow KBV owners and guests to use the hotel facilities, including the pools and the workout club. The hotel board is supposed to be voting on the agreement (an agreement between their GM and our's has apparently been in place). Unfortunately, the board is not acting fast on voting on it.
Before any big time marketing is done, in any event, I think we would want it to be done when KBV's outside value is high. And again, with no physical facilities currently in which to close to deal, it's not optimal either.
Let me know if you have any questions.
Aloha,
Jeff Bellin