The HPP slice will not go away at Sunset Harbor , just as it has not at Aspen. This is about stopping the HPP growth before control is gained, which has been discussed in this thread. What has also been discussed in this thread is that halting ROFR was part of the Aspen settlement in exchange that existing HPP rights will not be diminished. It seems reasonable that the same leverage will work for Sunset Harbor also.
I don't have a dog in the fight, but I'm interested in how much difference terminating Hyatt-as-Manager and Hyatt-as-Club will actually accomplish the goals.
I would hope that the Sunset Harbor board should have an actual answer to whether stopping Portfolio growth is 'reasonable', but a few things:
1. I don't think control is an issue, if that's 50% of the unit-weeks. We know that there are 40 units, so 40 x 51 = 2,040 unit weeks:
Portfolio originally took in 127 of those unit weeks:
And then added 95 unit weeks as of 2021, over the four years of ROFR:
That's a pretty slow roll to controlling 1020 unit-weeks.
2. Aspen's Condominium Declaration had a stipulation that Hyatt's ROFR only existed until 2015 (for ten years), presumably to comply with Colorado Law:
There was no need for an agreement because Hyatt-as-Developer hasn't had ROFR for 7 years. In my California addendum above, there were no further Aspen unit-weeks added, for example.
3. Sunset Harbor's Condominium Declaration does not have a rights expiration (thanks
@dioxide45 for posting it first), presumably because it wasn't required in Florida:
The important excerpt being here: "
In the event an Owner desires to sell, transfer, assign or hypothecate his or her Unit or Unit Week and for so long as the Developer has interests to sell in the Condominium, the Developer shall have the right of first refusal to purchase the Unit or Unit Week under the same terms and conditions as are offered to or by a bona fide third party, including financing, for so long as the Developer has any interests to sell in the Condominium." (my emphasis)
4. We know that Hyatt-as-Developer still "have interests to sell in the Condominium" even though they sold nearly all the unit-weeks to Hyatt-Portfolio in 2017, because they still execute on ROFR in 2022, per
this post.
So while it may seem at first reasonable that terminating Hyatt-as-Manager and Hyatt-as-Club might get rid of Hyatt-as-Developer's ROFR, I think there's enough questions here in the Condominium Declaration and Hyatt-as-Developer's behavior in 2022 that, if I were on the Sunset Harbor BOD, I would want to provide membership a definitive legal answer on this question prior to vote.