Thanks for the replies, folks! Here is the actual letter on the website under Pollard Brook. There are other pieces of info on there specific to this as well. It's 7/10 and I still haven't received the letter via mail. Yes, the letter indicates they need the monies to continue with the upgrades. The Maintenance Fee letter addresses this every single year and it goes up every year to account for these. But the letter goes into the financial burden that Southern Peaks which I am assuming is South Mountain has created and this is the real issue, I think. No one else is being assessed this in the 7 resorts of InnSeasons. And I am a deeded, one week, one bedroom owner. The SOP's etc. say they can charge for upgrades etc. to your specific unit and common area. The state RSA's support this as well. But is it legal to do it because of over development and the fact that poor management decisions have put Pollard Brook at risk as a result? They call this whole thing: Pollard Brook Resort, Southern Peaks at Pollard Brook, LLC in the letter, I've never seen that referenced on anything I have. I bought in 1995. There were 2 buildings and they never indicated they were planning the massive expansions they have done. Read and interpret for yourselves....I am consulting the AG's office and that will answer my questions I hope.
July 1, 2009
Dear Pollard Brook Owners,
Today’s general economic environment has taken a toll on the operations of Pollard Brook Resort, as it has with many businesses. The good news is that your Board of Advisors two individual owners to ensure that owner’s interests are represented, has been working on a long-term plan for the resort which includes focus on operating efficiencies and upgrades of the facilities. Unfortunately, in the short term the cash that your Association requires to operate and upgrade the facilities is in short supply, and an additional assessment on the ownership of each Pollard Brook unit is required to operate the property properly and fund your capital reserve requirements.
Like other industries that rely on periodic payments by consumers, your owners association has experienced an increase in the number of owners who default, and this reduces the cash available to operate the resort. The Association and its management company work with owners to assist them in meeting their commitments, and the vast majority of our more than 6,000 owners pay their assessments in a timely manner, but collection default percentages are up an average of 5% over the budgeted amount. Previous years have trended up an average of 2% over budget, but the 5% figure presents a significant increase. The Association and its management employ a variety of collection agents and processes to collect these funds, but in the present environment the cost of pursuing claims against these owners through foreclosure or similar actions would significantly diminish the net revenue obtained. Although some of that is expected to be recovered, this assessment seeks to provide approximately half that amount for current year operations.
The economy and lending conditions have also had a substantial impact on the current developer of Pollard Brook Resort, Southern Peaks at Pollard Brook, LLC, and its ability to meet its commitments for the payment of assessments on the nearly 1,200 unsold intervals it owns at Pollard Brook. In the past, it was able to meet those commitments by renting those units and, if necessary, supplementing any deficiency from other funds. Unfortunately, the rentals generated from those intervals have fallen far short of what is required to make up for these shortfalls and the downturn in the economy has impaired its ability to make supplemental payments.
Although Southern Peaks intends to continue to work to sell the remaining intervals at the resort and to meet all current and future obligations to the resort and to the Pollard Brook Homeowners Association, the region’s economic conditions simply do not permit it to do so at this time. Southern Peaks’ sales are down nearly 70% compared to two years ago, and a key line of financing that it had relied upon to meet other obligations has not been renewed. Southern Peaks has told the Board that it continues to seek new sources of financing and qualified institutional purchasers for the unsold intervals, and believes its prospects are good. Unfortunately, no such solution is likely to be completed in time to address our immediate cash requirements.
Finally, although nearly $1,000,000 has been spent over the past 5 years on repairs, upgrades and improvements to the original five phases of the resort and to the Common Areas, we have not had sufficient funds to bring the older units up to the quality level that Pollard Brook owners expect, and to address some of the major repairs needed to the older infrastructure, such as the swimming pool. We have included in this assessment approximately $1,200,000 to address these issues and to make sure the Association has sufficient reserves to address future reserve and replacement costs. A description of the items to be paid for from these additional reserves is enclosed and available online.
We, as members of the Board of Advisors for the Pollard Brook Unit Owners Association, understand that this additional assessment comes as an unwelcome obligation, at a time where finances are stretched. We have directed the management company to offer a range of payment options, including a monthly payment option, and to be as flexible and accommodating as possible in its efforts to collect the funds from every owner. We will also work diligently with the Association’s CPA firm and management staff to ensure that every dollar is spent only on the specific items outlined herein. We have also directed management to give owners tools to track the resort’s financial and operational progress, as described below.
In an effort to lessen the impact of this supplemental assessment, you may elect a single payment with a 10% discount, a 2-payment option with a 5% discount or a small initial payment with the balance paid over an 18 month period. Please see the enclosed invoice for your specific payment options.
To assist you in tracking the results of this project, we will be posting overviews and updates of the refurbishments into an information library within the on-line owner’s area of the InnSeason website,
www.InnSeason.com. If you have not yet created an on-line account, please take this opportunity to do so now as it is the best and most current source of information about your resort, and on-line communications are far more cost effective than printed and mailed documents. Registration is simple; just visit
www.InnSeason.com and click on ‘Log in” in the upper right corner. In the near future, the monthly financial statements for the Association that are provided to the Board will be posted online, as will be the annual statements prepared by the Association CPA firm, Shepherd & Goldstein, LLP.
If you have questions regarding this assessment or to discuss your payment options, please call InnSeason Management’s Owner Services department at 877-553-0681. Should a representative be unavailable to take your call, voice messaging is available and a management representative will gladly return your call.
This was not an easy decision for your Board to make, but after reviewing all the facts and exploring options, the final decision was based on what is best for the Pollard Brook Unit Owners Association in the long term. Your Board and Management are confident that the supplemental assessment made by each interval owner will be rewarded not only by refurbished units and a renewed resort, but by increased resale values, improved ability to acquire good exchanges as a result of higher exchange company ratings, and increased owner enjoyment and pride of ownership. Thank you for your support!
By direction of the Pollard Brook Board of Advisors, InnSeason Management, Inc. Managing Agent for the Pollard Brook Condominium Unit Owners Association
CC: Bill Scanzani, President, Owner Representative
Joanne Nichols, Secretary, Owner Representative
Dennis Ducharme, Treasurer
William Curran, Director
Scott Macgregor, Management Representative
