Urgent - Hyatt Lake Tahoe Owners

[tahoeJoe]

I have learned that the Board of Directors is meeting next week to discuss a huge dues increase to completely redesign the bathrooms. The new bathrooms will lose that “Tahoe look” and adopt a generic, urban, modern Hyatt look. I’m not sure what they are thinking. IMHO this is completely unnecessary; they could accomplish their goal by a more modest “finish” update, that is new lighting fixtures, new plumbing fixtures, new flooring and paint. They are considering moving walls, moving toilets, and moving expensive plumbing lines.

All this will cost owners handsomely, $200-$300 increase in their annual maintenance fees (MF). This increase brings all us closer to the point when renting is cheaper than annual MFs; this tipping should be avoided at all costs.

Also, bronze and copper weeks already have very low value, and this increase may force more of those owners into walking away or giving away their units. This scenario is bad for everyone. Call or write your board to voice your input; PM me for their numbers or e-mail addresses.

 

[DeniseM]

Sounds like this is management driven to me....

 

[tahoeJoe]

Driven to what?

Drive resale prices lower, more units picked up on ROFR for Hyatt to sell twice? That's Marriott's business model.

 

[twinmommy19]

Seems odd that they wouldn't just do a one time assessment rather than increase the maintenance?

 

[lizap]

As a new owner, I'm still assessing how I feel about this. MFs would still be relatively low for a property of this caliber.

I have learned that the Board of Directors is meeting next week to discuss a huge dues increase to completely redesign the bathrooms. The new bathrooms will lose that “Tahoe look” and adopt a generic, urban, modern Hyatt look. I’m not sure what they are thinking. IMHO this is completely unnecessary; they could accomplish their goal by a more modest “finish” update, that is new lighting fixtures, new plumbing fixtures, new flooring and paint. They are considering moving walls, moving toilets, and moving expensive plumbing lines.

All this will cost owners handsomely, $200-$300 increase in their annual maintenance fees (MF). This increase brings all us closer to the point when renting is cheaper than annual MFs; this tipping should be avoided at all costs.

Also, bronze and copper weeks already have very low value, and this increase may force more of those owners into walking away or giving away their units. This scenario is bad for everyone. Call or write your board to voice your input; PM me for their numbers or e-mail addresses.

 

[lizap]

Have had a little more time to think about this... I don't mind the remodel, if it needs to be done. Bathrooms do need updating from time to time. But I do agree that it should be a special assessment. Most bathroom remodels are around $10,000, so it should be around $200 per week. Remodels are not a recurring expense and should not be included in MFs. I don't like MFs any more than anyone else, but they are necessary to maintain the quality of the property. In terms of resale, this property is maintaining value better than most.

 

[ivywag]

Board Meeting

When and where is the meeting? I'm going to be there next week (starting Tuesday) and would like to attend. First, why is there not enough in reserves to do the project? Second, why would this be a forever dues increase instead of a one time assessment if they need more money just for bathrooms? It should be one time not every year! As I recall, they had extra money last year and replaced lots of items which were not planned because of there being a surplus. There should at least be a vote of the membership for an increase of that magnitude. I'll try to find out more next week.

 

[csxjohn]

.... There should at least be a vote of the membership for an increase of that magnitude. I'll try to find out more next week.

Since you elect members to a board to make decisions for you, don't hold your breath waiting for this to happen.

This is how governing by representatives works.

The OP has people up in arms and the meeting hasn't even been held yet. And it is very possible that who ever said this was going to cause a permanent increase in MF probably mis-spoke. But as always, I could be wrong.

 

[tahoeJoe]

Meeting July 9, 8am

When and where is the meeting? I'm going to be there next week (starting Tuesday) and would like to attend. First, why is there not enough in reserves to do the project? Second, why would this be a forever dues increase instead of a one time assessment if they need more money just for bathrooms? It should be one time not every year! As I recall, they had extra money last year and replaced lots of items which were not planned because of there being a surplus. There should at least be a vote of the membership for an increase of that magnitude. I'll try to find out more next week.

The board meeting is tomorrow,Tuesday July 9 and starts at 8am. I'm not sure where this item is on the agenda. If you can't make it please e-mail the board and let them know your thoughts on this important issue.

Yes, the board is elected to make decisions on our behalf, BUT that doesn't mean they vote however they personally feel. They should solicit our input and consider our comments and input when voting. They represent US and should represent our position on this issue, SO MAKE YOUR THOUGHTS AND OPINIONS KNOWN TO THE BOARD!!!

 

[lizap]

TJ,

Would appreciate your letting us know the outcome of the Board meeting vote.

 

[lizap]

Just found out that the Board voted to raise MFs to approx. $1150. My understanding is that the bathrooms will be modernized and enlarged, with jacuzzi tubs being removed. I'm ok with it, as MFs are still relatively low for this quality property.

 

[stacylee]

why would this be an increase to the annual MF of $600,000 and not a one time special assessment?
That doesn't seem to add up to me.

 

[lizap]

Was told that reserves were not sufficient and MFs had to be increased to make up for the insufficiency.

why would this be an increase to the annual MF of $600,000 and not a one time special assessment?
That doesn't seem to add up to me.

 

[ivywag]

Fees

The increase is 14%. That hefty. I think that the value of the low points weeks
will plummet even further and we have lots of those. Who would buy 1100 points or even 1300 with a maintenance fee of $1150-$1200 per year? Also, the cost of a capital improvement (such as bathrooms) should come from the reserves. If there is not enough in reserves, why not? That should be explained to the members. I also agree that if there is a need for additional funding, it should be in the form of a one time assessment, again, explained to the owners. A 14% increase just raises the basis for future increases. Then, next year if there is another 14%, it is 14% of the higher amount for this year. It will keep compounding.

 

[lizap]

I don't understand why it wasn't done as a one time assessment either. How do MFs compare to Highlands Inn? Compared to most Westins, it's a bargain.

The increase is 14%. That hefty. I think that the value of the low points weeks
will plummet even further and we have lots of those. Who would buy 1100 points or even 1300 with a maintenance fee of $1150-$1200 per year? Also, the cost of a capital improvement (such as bathrooms) should come from the reserves. If there is not enough in reserves, why not? That should be explained to the members. I also agree that if there is a need for additional funding, it should be in the form of a one time assessment, again, explained to the owners. A 14% increase just raises the basis for future increases. Then, next year if there is another 14%, it is 14% of the higher amount for this year. It will keep compounding.

 

[DAman]

Jacuzzi tubs seemed awkward to me in their location. I am not a fan of them in general but here they should give way to make more room in master bedroom. I don't understand why this wasn't a special assessment. I feel bad for the people who own mud weeks.

I am in Squaw now at OVI and it is absolutely beautiful. I am sure it is similar at Incline. Forgot how nice Tahoe is in summer. Kayaking at Kings Beach with my kids tomorrow.

 

[ivywag]

Carmel dues are around $1400, but all units carry 1880 points or more. They are still not sold out and some of the resales are pretty low. I would think that the maintenance fees have an impact.
That said, I agree that the jacuzzis at High Sierra are a waste of space. We store suitcases and fishing gear in them!!!

 

[lizap]

Looks like the jacuzzis are going away. MFs are still a little lower than Carmel - still curious why this wasn't a one-time assessment.

Carmel dues are around $1400, but all units carry 1880 points or more. They are still not sold out and some of the resales are pretty low. I would think that the maintenance fees have an impact.
That said, I agree that the jacuzzis at High Sierra are a waste of space. We store suitcases and fishing gear in them!!!

 

[lizap]

Are there other Tuggers who own here? Would be interested to know if you have any more details.

Looks like the jacuzzis are going away. MFs are still a little lower than Carmel - still curious why this wasn't a one-time assessment.

 

[MaryH]

Is Steve Dallas still on the board of the HOA?

 

[lizap]

Looks like several who use to post no longer do so..

Is Steve Dallas still on the board of the HOA?