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San Clemente Inn News

Harry

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We just received our newletter. Apparently the title dispute with a private developer of the old gas station on the corner of the resort, has been resolved. The new developer will build a building on the property with underground parking for 9 spaces. That parking lot will face SCI main driveway. The developer will pay SCI $65,000, provide safety devices for ingress and egress to their property (which apparently will use our driveway), and guarantee title of the driveway to SCI.
Separate from this information, it was reported the Board has authoized from the reserves over 1 million in improvements to the property including the lobby, and recreation area and over 2 million for refurbishment for Building 2. I think this is really great news to an old timeshare project that has been IMO greatly underestimated.
 

T_R_Oglodyte

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Harry said:
We just received our newletter. Apparently the title dispute with a private developer of the old gas station on the corner of the resort, has been resolved. The new developer will build a building on the property with underground parking for 9 spaces. That parking lot will face SCI main driveway. The developer will pay SCI $65,000, provide safety devices for ingress and egress to their property (which apparently will use our driveway), and guarantee title of the driveway to SCI.
Separate from this information, it was reported the Board has authoized from the reserves over 1 million in improvements to the property including the lobby, and recreation area and over 2 million for refurbishment for Building 2. I think this is really great news to an old timeshare project that has been IMO greatly underestimated.
Who's responsible for cleaning up the contamination left by the old gas tanks? If the resort acquires title to the driveway and the area under the driveway is contaminated, the resort also acquires the liability for cleaning up the property. Doesn't make any difference that the resort never operated the gas station.
 

nightnurse613

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My OM says whoever caused the contamination is responsible for cleaning it up. Now if I could only persuade my sons!
 

T_R_Oglodyte

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nightnurse613 said:
My OM says whoever caused the contamination is responsible for cleaning it up.
When I was in California I made a nice living working for people who erroneously believed that. TUGger Kal still does. And I'm pretty sure that a TUGger who I haven't seen post for a while, toxicesq, also has done quite nicely in that line of business as weel.

Unless the a property owner qualifies for an innocent landowner defense (which won't work here because an old gas station is known to have existed), the poperty owner owns the contamination along with the property. The liability is strict, joint, and several. That means that the property owner owns the liability along with everyone else who owned the property or who conducted the activites on the site. And that any one of the parties can be held liable for the entire cleanup cost, regardless of the size of their contribution.
 
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Harry

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It has been cleaned

This goes back awhile, but I believe the station was an Exxon. The station closed in the early1980's, while SCI was still selling. At that time, the Ca. Costal Commission was extremely powerful and they made sure EXXON cleaned up the tanks etc. Also the CA State Enviornmental people monitored the process. I believe California is really good about cleaning up potential hazzard areas compared to many other states. They filled in the parcel with dirt, and it has been weeds ever since. It was for sale for many years and finally sold I believe back in 1999. At any rate, a big problem concerning title insurance and the boundary lines developed. The association had budgeted litigation expense and hired an attorney. As the attorney indicated, the association was trying to be a good neighbor and things were not working out. Finally, it looks like it is resolved. I believe the property will be a small condo project.
 

skimble

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I'm a new owner at the resort. We loved it there so much the two times we stayed, we decided to buy. And, in talking to people who own there, we found other reasons to want to purchase.
I'm curious to know about the overall financial stability of the resort. One of the reasons we bought there was their relatively low maintenance fees. We love the beach, and we own a few timeshares, but the MF for some are getting outrageous. In talking the the SCI front desk, they said the refurbishment $$ was already in the coffers, so they didn't think there would be an additional incurruance on the owners.
Is SCI in good financial condition?
 

Harry

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SCI financially sound

One of the great things about this resort is that they have been managed very well. I do not credit VRI so much as I do the board of directors over the years. I am one of the original owners (#33 overall) and the reserves that have been built over the years are impressive. You can obtain a complete financial report from Lisa the general manger, and will see why they will be able to do the things they are proposing.
 

T_R_Oglodyte

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Harry said:
One of the great things about this resort is that they have been managed very well. I do not credit VRI so much as I do the board of directors over the years.
I think that comment is exactly correct. I think VRI is a good management company, but the leadership needs to come from the Board.

VRI merely provides the tools for running a resort. The board is the one that wields the tools. If the Board is effective, they can accmplish much with those tools. If the Board is not effective, it's a bit like giving a fancy joiner to an inept wood worker. If the drawers don't fit and the ends don't match, it's not the joiners fault.
 
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