April 2020
Dear Fellow Virgin Grand Villas Owner:
The coronavirus emergency delayed our usual report to you, but here is an update on our resort.
Vacations in the Virgin Islands suspended
As you know, the travel and hospitality industries have been severely affected by the COVID-19 pandemic. There are confirmed cases of COVID-19 on St. Thomas. As of March 31, the governor of the Virgin Islands has extended the State of Emergency through May 12 and the Stay-At-Home order until April 30. These directives may be further extended if the pandemic continues. Timeshares, hotels, villas, etc. cannot accept, receive, check-in, or register any new guests during the period of the Stay-At-Home order. For official and up-to-date information please visit
https://usviupdate.com/department-of-tourism/.
To stay abreast of the latest property updates and reservation cancellation information, owners should visit
https://hub.vacationclub.com/. Information on this page will be updated as the need arises.
Annual and Board meetings on March 2, 2020
As your owner-elected members of the Board of Directors, we recently participated in the annual meeting of the Association and in the Board meeting that followed. This is our report, but if you want more details, you may request a copy of the draft minutes of the meetings by selecting “Governing Documents” in the “Owners Association” widget of your dashboard on vistana.com. Expand the “Association Information” section then follow the instructions provided in “Request Your Association Documents”. During these meetings, the members and the Board approved making the recordings of the meetings available to owners; however, not having had the opportunity to plan for such recordings in advance of the meetings, along with several audio and technical challenges throughout the meetings, the recordings that were rendered are fairly inaudible. Going forward, the management company will be able to plan for the technology and logistics necessary to obtain an audible recording and determine how it will make those recordings available to owners.
New General Manager Eugene Martin
Mr. Martin officially took up his post as the new General Manager on January 1, 2020 and he participated actively in the meetings. Many of you have met him as, every Tuesday at 8:00 a.m., he hosts a forum with owners who are at the resort. These forums have been very well attended, and if you haven’t gone to at least one of them, we recommend that you do so. We share the view expressed by many owners that Mr. Martin is an extraordinarily energetic and far-thinking general manager, and we are lucky to have him at the property. He goes the extra mile to make sure that problems are avoided or resolved. There are occasional issues, of course, including some lingering problems from the post-Hurricane Irma reconstruction (such as chandeliers in some units not centered over dining tables). If you discover a problem in your unit and Service Express cannot solve it quickly, please do not leave it unaddressed for the next person to deal with. Instead, leave a message for Mr. Martin at Extension 5000, and do not be shocked if he shows up in person at your doorstep to see for himself what can be done!
Mold remediation and reconstruction
In our last report, we described the mold problem that arose in several units because of poor work by contractors who installed the new HVAC equipment and ducting. In particular, 22 units were rendered uninhabitable for a few months, and others were identified by a remediation consultant, contracted by the Management Company, as having “moderate” water damage. Before New Year’s Day, the systems in the 22 most-affected units were rebuilt and remediated, and they were put back into use for owners and guests. The remediation consultant has re-inspected most or all of the other units, and after the pandemic ends, additional work will be done (a “Phase 2”) on any of the moderately damaged units that require it. The consultant has told management that all units are now safe for occupancy, and before Phase 2 ends, every unit will be certified by the consultant as free of both water damage and biological contamination.
As you know from our last report, we elected directors had a dispute with management about who would assume the cost of inspections and repairs and have the right to try to recover from the contractor based on warranty or other claims. The Management Company took the position that the owners association should initially bear the nearly $2 million cost; however, it did offer to split the costs 50/50 while hiring a 3rd party to assess financial responsibility. While this offer had some merit, we felt we could not accept it. After the 3 Developer-appointed directors outvoted the 2 owner-elected directors to require the Association to bear the cost, we elected directors retained a law firm to conduct an investigation of who was responsible for paying for the repairs. The Management Company then changed course and assumed financial responsibility for the repairs, provided that the Association assign to the Management Company any claims it might have against the contractors or insurers. We are satisfied with this arrangement and are currently in talks with the Management Company to memorialize the agreement in writing.
Lemongrass restaurant
As of the March 2, 2020 meeting date, management was still in negotiations with a vendor—a company that has two other restaurants in the U.S. Virgin Islands—to take over operations at Lemongrass (and Snorkels as well). Management hopes to have Lemongrass open before high season next winter. Alas, no vendor was able to make money over an extended period in the more expensive restaurant space that was located above the now-destroyed former main lobby, so it is unrealistic to think that we will see a higher-end restaurant on the property again. On the bright side, the restaurant scene was booming in Cruz Bay before the pandemic hit. Restaurants across the country are struggling for survival, though, because of the COVID-19 crisis.
The “sun terrace”
We asked what plans were in the works for the unsightly and mostly unusable “sun terrace”, located where the former main lobby stood prior to the hurricane. The Management Company acknowledged that the area was too hot to sit at during the summer, but said that the ultimate use of that area was still under discussion and that no decision had been made.
The road up the hill above buildings 33 and 34
Marriott, as successor to Starwood, owns vacant land above buildings 33 and 34, where four or five single-family homes could someday be built. In recent months it has advertised that land for sale. Three inter-related issues regarding access to this land arose at the meeting:
(1) Marriott wants to terminate the easement agreement which it believes could allow the purchasers of houses on that property to use the road from the street up to buildings 33 and 34 for access to their houses. Many owners have long objected to vehicular traffic other than golf carts on that road, both because of noise and other pollution and because such traffic would pose a hazard to pedestrians, particularly children, who are walking to the hillside units. Terminating the easement agreement therefore seems like a good idea. Management published an advertisement for the sale of the vacant land that stated that the buyer would have access through the road that goes to our units, but it said that the advertisement was a mistake and would be corrected.
(2) In order to provide alternate access to people who buy those lots, management provided a working document for discussion that considered building a new road alongside the Guinea Grove Ghut (runoff stream) that runs between buildings 42 and 43 and the Mango Grove Apartments. We expressed concern, fearing that when the Guinea Grove Ghut flooded (as it has in the past), the water would flood over the road and cause damage to units in those two buildings. We asked that the Management Company hire engineers and hydrologists to study the potential impact on our units of a new road in that location, taking into account peak rainfall of the type that has occurred in the past. We suggested that a better solution might be to build a new road on high ground, entirely above the area where the hillside buildings are located.
(3) An owner pointed out to us that for a few yards, the bend in the existing road, just before the road turns uphill toward buildings 33 and 34, is actually on the property that Marriott plans to sell. Unless Marriott retains that bit of land on which the current road exists, the new owner could close our road and cut off access to those two buildings. This is an outcome that nobody would want, so the problem must be addressed.
These issues remain open and will be monitored and reported on as information becomes available.
Composition of our Board of Directors
Our Association’s governing documents were written in accordance with U.S. Virgin Islands law, and recorded in the public records in January 1988, by the initial Developer who is unrelated to the 4th subsequent and current Developer, WVC St. John, Inc. Our Association is an unincorporated U.S. Virgin Islands association. As permitted by our governing documents, the Developer has the right to appoint a majority of members of our Board of Directors so long as it owns at least one timeshare interest in the Association, which means that in practice it could maintain a majority on our Board forever. We asked why the Developer had not elected to give majority control to elected directors of our Association (or the Bay Vista association). Westin St. John Hotel Company, Inc., Developer of the Bay Vista association (a Florida not-for-profit corporation) has a similar right to retain control of that Board. Management acknowledged that our structure was “anomalous” among the Marriott associations but did not explain why the Developer has chosen to retain control of the Board, saying only that the Developer is doing what is allowed by the governing documents. The Coral Vista and Sunset Bay associations are U.S. Virgin Islands non-profit limited liability companies. Their organizational structures are entirely different and a bit complex; however, when the earlier of either 90% of all ownership points are sold or 5 years after their Operating Agreements are adopted, their Boards must expand from 3 to 5 members, comprised of 2 Developer-appointed members and 3 elected members. Coral Vista expanded their Board a few years ago and Sunset Bay will expand their Board this coming year.
Future flexibility for exchanges
Marriott manages many vacation properties besides those in the Vistana exchange network. Its goal is to expand exchange opportunities so that owners at the Westin St. John and other Vistana properties will be able to vacation in as many places as possible. However, there are many logistical and legal hurdles before the exchange system can be built out, so it may be some time before new exchange possibilities arise. Through vistana.com, however, it is already possible for owners to exchange options for certain hotel stays and cruises.
Owner posting board
Two very qualified owners volunteered to manage the owner posting board in the future, taking over the work from Teri Castleberry, our Board president, who has done this work in addition to her day job since the posting board was created, allowing owners to exchange, rent, or sell their unit weeks to each other. We accepted one of those offers, and we thank Ms. Castleberry for her many years of effort to create and maintain the posting board.
In addition to the posting board, an owner has started a listserv for owners who want to register and share information with each other. If you want to join, send an email to
virgingrandvillas@gmail.com.
Staff appreciation
The Management Company has a “Way to Go” staff appreciation program in which you can participate. You have the opportunity to express appreciation for particular staff members who do a great job, and for every 15 expressions of appreciation from owners and guests that a staff member receives, the staff member will receive a $50 award and other recognition.
Tables in pool villas
After the hurricane, the large round tables on the pool villa decks were replaced with small square tables that seat only four people, preventing a group of six or eight from dining together on the deck. Mr. Martin has made it a top priority to replace the small tables with large round or oval tables with a single umbrella.
Freecycle shed news
The freecycle shed is at the intersection between the road to the hillside villas and the road to the pool villas. The door and lock have now been repaired, and the door opens with your room key. Look in the shed for such items as beach chairs, pool toys, and books; please return them to the shed and resupply the shed with items that you buy on the island and don’t want to take home. There are two items of news regarding the freecycle shed. First, the availability of beach chairs is uneven; on some days the shed has many chairs and on some days it has none. If you need beach chairs and there are none in the shed, call Mr. Martin because he has some in storage. Second, there is a mailbox in front of the shed. Every day, the New York Times Digest is delivered to that mailbox. Feel free to take one to enjoy with your morning coffee.
Foreclosure procedure
When an owner has not paid maintenance fees for the year, the owner is locked out of the unit and, after a short period of time, the unit week will have a lien placed on it. If the owner still does not pay overdue maintenance fees, the Association begins foreclosure proceedings so that owners who are paying their fees don’t have to pay a higher proportion of the Association’s fixed costs. The cost of foreclosure is borne by the Association, and after we foreclose, we offer to sell the recovered unit weeks to the Developer. If the Developer buys our inventory (as it has done in the past), it pays maintenance fees in full on the unit weeks it buys until it resells them. We have suggested to the Developer, however, that the process should be simplified. When we are ready to foreclose, we would like to assign our rights to the Developer, which would pay the costs of foreclosure and would own the unit weeks as soon as foreclosure was completed. The Developer is considering the proposal but had not made any decision about it by the time of our annual meeting.
Dogs and smoking on the property
An owner asked for a reiteration of the dog and smoking policies. Except for authorized service animals, dogs are not permitted at the Westin St. John, and smoking is allowed only in designated areas, not on the beach. Mr. Martin is asking his staff to enforce these policies.
Resort fee
For the last several years, individuals who rent units from the Developer have paid a $40 resort fee in addition to the rental. Owners and guests do not pay a resort fee. The proceeds from this fee have been paid to the associations and are reflected on their budget as Resort Services Revenue. Several state attorneys general have considered challenging the validity of resort fees. The Management Company announced that if litigation is initiated, the associations that benefit will have to pay for the cost of defending the lawsuits. It has been reported that prior lawsuits on the mainland have focused on disclosure issues in charging these fees, which does not appear to be an issue at our resort, but we will continue to monitor and report if further developments arise.
Recycling returning
Since the hurricane, there has not been recycling at the resort because the Virgin Islands has not had the capacity to deal with recycled materials. However, in the near future, recycling for aluminum cans will begin again at the resort.
In conclusion
The resort looks beautiful and, with the exception of an operational restaurant in Lemongrass, it has largely been restored. When travel resumes, come down to St. John and enjoy it!
Larry Pelletier
larrypelletierx@gmail.com
Philip G. Schrag
phil.schrag@gmail.com
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