July 2019
Dear Fellow Virgin Grand Villas Owner:
As your owner-elected members of the Board of Directors, we recently participated in a conference call meeting of the Board. We have only a little to report to supplement the longer communication that we sent after the Annual Meeting in March, but all of it is good news.
Progress at the resort
General Manager Sam Hugli reported to the Board that all of the Virgin Grand units were available for occupancy on schedule by May 4. All units now have a state-of-the-art fire safety and sprinkler system. The resort’s generators have functioned flawlessly during power outages. The fitness center is fully operational, the all-purpose court (for pickleball and basketball) is in use, and the tennis courts are expected to be resurfaced by the end of July. New, nonmotorized water sports equipment is available on the beach. New sand to replace what was washed away during Hurricane Irma should arrive by the end of July. The door on the freecycle shed will be repaired so that it closes properly and a new lock will be installed. Once completed, we encourage owners to put beach chairs, toys, swim equipment and unopened nonperishable food in the shed upon departure. Management will also stock the shed with a few beach chairs each year from recovered chairs following the storm. (If you also own vacation ownership interests in other parts of the resort, there is more good news for you as well; although the freecycle shed on the Virgin Grand side of the road is available only for Virgin Grand occupants, additional freecycle space is now available at the big pool and on the beach near the equipment rental area.)
Speaking of the freecycle shed, here is a new benefit: every morning, the Times Digest is being delivered to a mailbox next to our freecycle shed. If you look for a Times Digest there and don’t find one, Management will increase the number being delivered. Please call the Front Desk to let Management know that more copies are needed.
Two aspects of the resort will take a little longer to restore. There are regulatory issues affecting the reopening of the Lemongrass restaurant, which may delay the reopening until the end of the year. Meanwhile, Snorkels continues to serve three meals a day and, of course, the grills are operational at the hillside pools and in the pool villas. The new Sun Terrace (where the old lobby once stood) is still a work in progress. It will have comfortable seating and tables and be shielded from the sun by shade sails and umbrellas. A trellis is planned, but we can’t yet report an estimated completion date.
Beach towel system
Over the years, many Westin St. John beach towels have “disappeared,” and owners have to pay for replacements through maintenance fees. To reduce this cost, a new system went into effect on July 1. Beach towels are placed in each unit at the start of the week. To obtain a new towel, it will be necessary to exchange a used towel for a new towel at the pool hut.
Extension 5000
As your owner-elected representatives, we have received a few reports from owners about problems in particular units, such as missing cooking equipment or an overflowing Jacuzzi. Because of the total refurbishment of the units, there are bound to be some glitches in the first year of operation. Please direct concerns first to Service Express and if you don’t obtain prompt satisfaction, leave a message on Extension 5000. That line goes directly to the General Manager and the heads of all departments; they are the people who need to hear about any problems that aren’t quickly addressed by Service Express. Of course, you can contact us if there is a serious problem that Management does not seem to be addressing properly. We do want to know if there are any serious problems, but we are volunteers with other jobs, so we hope that you will contact us only if Management seems unable to resolve your difficulty.
Insurance claim
The insurance claim for property damage caused by Hurricane Irma is still being processed, but Management expects to close out the claim by the end of the calendar year. Meanwhile, there is tentative good news. As you will recall, eight years ago the Board voted to create a contingency reserve fund to protect owners from a special assessment in the event of a major storm, to cover the 5% deductible on the property insurance policy. The fund now has more than $2 million, and our share of the deductible is likely to be about $1 million, thanks to a clause in the (old) insurance policy limiting the deductible for all Vistana resorts to $10 million.
Unfortunately, the insurance company declined to include such a clause in the new insurance policy, which went into effect on May 1. As a result, should there be another major hurricane, our maximum liability for the deductible will be approximately $2.5 million depending upon the insured value. The changing global climate suggests that, sooner or later, there will be another such storm that passes over St. John. Therefore, the Board plans to continue to build up the hurricane contingency fund for several more years.
Developer repurchase
Pursuant to a standing agreement, the Association offered the developer an offer to purchase 36 vacation ownership interests that we owned as a result of foreclosures. The developer accepted the offer and has paid the Association $71,704 in accordance with the first amendment to the agreement. More importantly, the developer has paid the 2019 maintenance fees on those interests and will continue to do so until it sells them.
Reminder about maintenance fees
More than a hundred interests are currently unavailable to owners who have not paid maintenance fees. In most cases, the Association has put liens on the interests, and the Board has decided to send a large number of them to its collection lawyer to begin foreclosure proceedings. Please pay maintenance fees on time and don’t risk lockouts, liens and foreclosures, which can harm your credit rating.
Reminder about air conditioning
While leaving the air conditioner running at night and when you are not in your unit seems counterintuitive and wasteful, we want to remind you that this is actually a desirable practice. The brand-new dehumidification system depends on having the air conditioner running, and the cost of remediating mold in a unit (or of treating a health condition caused by mold) far exceeds the cost of running the air conditioner. So please let the system run all the time, and do not leave windows or screen doors open.
We look forward to meeting many of you at the resort.
Larry Pelletier
larrypelletierx@gmail.com
Philip G. Schrag
phil.schrag@gmail.com
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