Westin St. John [Master Thread]

[GeneNWendy]

Regarding reposession of units

Hi Carolyn,

I want to set the record straight on the repossession of units. According to Tom DeClemente, not one single unit at WSJ has been foreclosed yet. Forclosure requires attorneys on both sides and court dates to get it done. There aren't that many attorneys in the Virgin Islands to represent everyone who hasn't paid their MF's in a forclosure. Furthermore, the court dockets would be overloaded with all the people not paying their fees. Starwood may be able to lock one out if they don't pay their fees and rent the empty unit to somebody, but they can't sell it until the foreclosure process is complete. When Starwood says they can resell a unit within 6 months that's simply not true, particularly in USVI. The question still remains with the rental of units that were locked out, "Where is the money going?". Starwood is clearly acting in bad faith by not disclosing this information.

Once we file suit, they will be compelled by a judge to disclose it. A forensic accountant can then be ordered in to audit their books. Starwood is a publicly traded company that is regulated by the Federal Trade Commission and SEC. If their is any evidence of wrongdoing (i.e. - misappropriation of funds) their reputation will go down the hill, so they may be anxious to settle at that point.

Starwood can also hire the best attorneys money can buy. However that cannot change the fact that they violated the 2/3 ownership approval requirement in their by-laws by going ahead with upgrades in our units anyway. According to Tom, that was clearly illegal and a judge will see that. BTW, this case has Federal implications and will be heard by a Federal judge residing on USVI, not some local USVI judge.

Regards,
GeneNWendy

When we had our "owners update" in November(and I use that term loosely), we asked some hard questions about the increase in the maintenance fee. Of course the sales people play dumb and don't know what we are talking about so we pull out our letter and mf bill for our 1 BR Premium. After asking some tough questions we are told the mf increase is due to those owners not paying...duh! We were told that Starwood can "repossess" the unit in 90 days and it can be back in their system to resell in 6 months!! So we are just paying their ridiculous fees so they can make more money and resell these units. In the mean time they are also renting out these units....making yet more money while we, the fiscally responsible owners, are footing the bill for ALL of the maintenance fees.
Count us in on any class action lawsuit.

 

[GeneNWendy]

If WSJ wants to treat this like a condominium

Hi Dave and Robin,

Here's my view on the maintenance fees if Starwood insists on treating this like a condo. I happen to live in one. We pay $1,200.00 a month, which includes all utilities, parking, use of the gym, and pool. That's $14,400 a year. Granted, the Westin is a resort and it's in a climate that requires more maintenance than in the Northeast. Even if you tripled our maintenance, that would be $43,200 a year or $830.00 per week. I find it very interesting that many timeshares in Aruba that are just as nice (if not nicer) as the Westin charge that amount. Starwood constantly says we must treat this like a condomium and all owners share the costs. Well, I think $830 a week is more like what it should be. That should have sufficient replacement funds for major repairs like a roof. Now let's get to major upgrades. If you double the MF's for three years that's $1,660.00 per week or $86,320 per unit. At the Westin, it's now $3,400 per week for a 2-bedroom premium or a pool villa. Annually, that's $176,800.00 I don't know about you, but it doesn't take that much to do the upgrades and maintain the unit. The $64,000 question is where is the money going that's not being used for actual maintenance. Who's pockets is it going into?

If we are to be run like a condominum, we should have a board, composed mostly of owners who can control costs in the best interests of the owners. Part of what we're paying for is the costs of the Westin Hotel, which is now down to about 90 rooms after Bay Vista was put into place.

Regards,
GeneNWendy

So... I wrote a strongly worded email via MSC to WSJ Association Management concerning the 25% increase in base MFs (as well as a doubling of MFs over a 5 year period) - as well as the question regarding Owner deliquent MFs and defaults and the burden to WSJ Owners where we take all the loss but not the gain (e.g. villas being put into a rental pool that only benefits WSJ/SVN) - this was their response:
*******

Thank you for contacting Association Management.

The Board of Directors and the Association reviews and analyzes all avenues to achieve the lowest possible dues increase. Their goal is to bill out fees without sacrificing the level of amenity that you as an owner have come to expect. They must also ensure the resort continues to meet certain brand standards.

Unfortunately many items in the annual operating budget are not fixed expenses and are outside of the control of the Board of Directors. Many of these items include: utilities, insurance, and supplier cost. In addition, the cost of business in the islands has increased which has created a big impact in the amount billed annually.

As you know your Association has been adversely impacted by the current economy. The increase in owner delinquency has created a shortfall in the Association's cash flow. The Board will continue to reinforce collection efforts to recover lost funds. Those owners who default on their payment will loose their usage benefits for the year. We will also continue to send delinquent notifications and interest and late fee will be assessed to delinquent accounts. In addition the Board of Directors has implemented cost savings initiatives to minimize any shortfall which includes energy audits, compact-fluorescent bulbs, and a reduction in the maximum hours hourly employees can work. A working capital reserve fund is being added to insure that the association doesn't run out of funds in the future. Unfortunately reserve funds cannot be used to make up for a deficiency in operating funds.

The Association will also consider different alternatives to gain revenue such as unit rental.

Being a condominium, all Owners share the responsibility for ensuring that the Association meets these obligations. As the economy improves and delinquencies eventually decline, allowances will be re-evaluated for a potential reduction. However for now, we must all share in ensuring expenses are fully paid and uncollectible accounts provisioned.

We hope this gives you a better understanding of the situation. If you have any other questions please feel free to contacting Association Management at 1-800-729-8246/407-903-4670.

Sincerely,
XXXX {Note: I removed name since I am unclear about policy here...}
SVO Association Management

 

[DavidnRobin]

I agree. I sent you a PM.
I am less perturbed about the refurbish (because our villa needed it), but more interested in 2 main issues (for all of my SVO VOIs): Is the MF monies being spent wisely and in an accountable manner (transparency), and importantly - for the deliquent owner VOIs - transparency on reimbursment to the HOA for SVO/SVN/WSJ usage (rent, SVN-II-RCI-SPG exchange, hotel-TS switching).

The last point is where I see major issues to legal action for SVO/WSJ.
I know that Tom's focus is in regards to the refurbish vote - if that gets SVO/WSJ to listen - so be it. But on the surface - most Owners wanted a refurbish, but due to the archiac proxy system - it couldn't get done (and it needed to) - if they did not spend efficiently, the that is an issue. But the bigger issue for me is too force transparency in Opertaions and Processes (for all of our VOIs).

 

[whitebeachsand]

At the Westin, it's now $3,400 per week for a 2-bedroom premium or a pool villa. Annually, that's $176,800.00 I don't know about you, but it doesn't take that much to do the upgrades and maintain the unit. The $64,000 question is where is the money going that's not being used for actual maintenance. Who's pockets is it going into?

To me this is the big issue. In this economic downturn there have been an unbeleivable number of ponzi schemes and corruption unconvered throughout the US mostly in the realestate sector. In my rural area grain dealers were running a multi-million dollar fraud ring that would have carried on if it were not for the economic fallout. Google ponzi schemes and you won't beleive all the "bad" realestate deals going on accross the country. Too many to report. I'm in finace and realestate. The numbers just don't add up. Look at the quote above. When it's somewhat reasonable and customary we just look away. But when fees just double over a short period of time it just doesn't add up. If it looks like a rat and smells like a rat it must be a rat. My suspicion is that someone somwhere is making a killing on this thing. The whole system of timeshares make this a fertile hotbed for fraud, greed, and corruption. While I want to keep this somewhat short I don't beleive us filing a lawsuit against the SVO is a great idea as we would essentially be suing ourselves. We need to have SVO audited by either us as a community or have the feds step in. My initial reaction is that we would be best to flood a federal agency in the state where SVO operates and force somekind of audit. That audit then would unfold as necessary. I know the FBI has been the investigating agency of some realestate fraud cases.

 

[kdrew]

I would be glad to share the experience I had with Equivest/Fairfield/Wyhdam at Bluebeard's Castle in St. Thomas, USVI. I spent over 6 years fighting and eventually recovered a settlement for owners on the order of $23M which is leading the refurbishment of the resort now.

See http://bluebeards-castle.com/news/news/weekly.html

e-mail me at kenneth_drew@hotmail.com and we can swap phone numbers off list.


Good luck.....


Ken

 

[DavidnRobin]

WSJ Tax Info/Update

Seems like the HOA BOD is finally getting active... {I wonder why...?)

Following is an email copy regarding USVI Taxes:
{hurry up and wait... - or in the USVI - slow down and wait...}

*****
Dear Virgin Grand Villas-St. John Owner,

As you may be aware, since 2006 the United States Virgin Islands (USVI) has not billed taxpayers for their 2006 and subsequent years’ property taxes. The intent of this letter is to inform and update you regarding your property taxes at The Westin St. John Resort & Villas.

On December 23, 2009, the USVI adopted new rules for computing the value of timeshare real property. These new rules are a result of negotiations between the USVI Government and the American Resort Development Association (ARDA) and are estimated to save USVI timeshare owners a total of $1.5 million in property taxes each year.

There are a number of items that must be completed before the USVI will resume property tax billings. One of these items includes the resolution of a pending court case on this issue. Also, the Tax Assessor’s office is working to develop an implementation strategy for issuing new bills and creating a schedule of when taxpayers are responsible for payment of their 2006 and subsequent years’ property taxes. We anticipate the USVI Government will establish a series of due dates for the property tax bills from 2006 to present. Finally, there have been some recent personnel changes impacting the Board of Tax Review and, while not official, it is likely the USVI Government will not have the opportunity to assemble a new board and issue the property tax bills until late 2010 or possibly early 2011.

Based on this recent information, it is our recommendation that you continue to delay paying your property tax bills until further notice. We will keep you informed of further developments regarding these taxes.

If you have questions or need to speak to an association management agent, please call us at 1.800.729.8246 or direct at 407.903.4670.

 

[DavidnRobin]

FYI - and while I am at it... here is a link discussing WSJ and a recent mailing from the WSJ HOA BOD regarding the refurbish:

http://www.tugbbs.com/forums/showthread.php?t=115606

 

[ocdb8r]

Based on this recent information, it is our recommendation that you continue to delay paying your property tax bills until further notice. We will keep you informed of further developments regarding these taxes.

I am not a WSJ owner but I have looked at and considered resale here several times...I am curious, does this statement mean that WSJ owners have been receiving tax bills since 2006 and some of them may have been paying those bills?

The main thing that has been holding me back is settlement of this issue as the outstanding taxes could be quite hefty. I am wondering if there might be sellers out there that have just been paying the tax so I wouldn't necessarily have to wait to jump on a good deal if I saw one.

 

[DavidnRobin]

That is correct - someone is ging to be on the hook for taxes all the way back to (and including) 2006. be aware that at the last assessment (which was unsuccessful) the predicted increase in TS tax bill for STJ was going to double. For example - a 2Bd/3Ba TH (week 23 - Hillside) was going from $140 to $280 per year.

I had the sellers compensate me for the back taxes in my purchase - since I trusted them - we did our own deed transfer - with the help of a USVI Attorney (Tom Bolt and Assoc)

 

[kdrew]

ARDA is a joke!!!!!!!!

ARDA did not help owners. They helped developers. Owners are getting screwed by the USVI as units for week #12 are taxed at rates higher than week #11, for example. There is no sense in what was done and ARDA is funded by developers, works for developers, and does not care about timeshare owners.

Why do I say this? They did nothing to help owners at Bluebeard's Castle even though they were begged to look into the situation. You see, timeshare owners don't fund their existence...........

Do not believe a word regarding property taxes on the USVI..........

Ken

Seems like the HOA BOD is finally getting active... {I wonder why...?)

Following is an email copy regarding USVI Taxes:
{hurry up and wait... - or in the USVI - slow down and wait...}

*****
Dear Virgin Grand Villas-St. John Owner,

As you may be aware, since 2006 the United States Virgin Islands (USVI) has not billed taxpayers for their 2006 and subsequent years’ property taxes. The intent of this letter is to inform and update you regarding your property taxes at The Westin St. John Resort & Villas.

On December 23, 2009, the USVI adopted new rules for computing the value of timeshare real property. These new rules are a result of negotiations between the USVI Government and the American Resort Development Association (ARDA) and are estimated to save USVI timeshare owners a total of $1.5 million in property taxes each year.

There are a number of items that must be completed before the USVI will resume property tax billings. One of these items includes the resolution of a pending court case on this issue. Also, the Tax Assessor’s office is working to develop an implementation strategy for issuing new bills and creating a schedule of when taxpayers are responsible for payment of their 2006 and subsequent years’ property taxes. We anticipate the USVI Government will establish a series of due dates for the property tax bills from 2006 to present. Finally, there have been some recent personnel changes impacting the Board of Tax Review and, while not official, it is likely the USVI Government will not have the opportunity to assemble a new board and issue the property tax bills until late 2010 or possibly early 2011.

Based on this recent information, it is our recommendation that you continue to delay paying your property tax bills until further notice. We will keep you informed of further developments regarding these taxes.

If you have questions or need to speak to an association management agent, please call us at 1.800.729.8246 or direct at 407.903.4670.

 

[ocdb8r]

ARDA did not help owners. They helped developers. Owners are getting screwed by the USVI as units for week #12 are taxed at rates higher than week #11, for example. There is no sense in what was done and ARDA is funded by developers, works for developers, and does not care about timeshare owners.

Why do I say this? They did nothing to help owners at Bluebeard's Castle even though they were begged to look into the situation. You see, timeshare owners don't fund their existence...........

Do not believe a word regarding property taxes on the USVI..........

Ken

I have mentioned before...I think there is a real need for an "Interval Owners" PAC. ARDA is exactly what the name suggests...it acts in the interests of the resort developers. That SVO automatically adds a $5 contribution to the group is absurd.

In my opinion NOW is the time for a bit of organization on our part. It's not something that would be easy, but there are a lot of resources that I think are going wasted. The surge of lawsuits against developers provides us with an opportunity to expose how far many have gone to extract money from our pockets.

 

[DavidnRobin]

Do not believe a word regarding property taxes on the USVI..........

Ken

I believe what you mean here as 'not believing a word' in that... do not believe that WSJ/SVO/ARDA is telling you about their efforts/success to keep property taxes down. The USVI Gov't is not only screwing (or intends to) TS owners (like Maui), but also property owners on STJ (so a double whammy for WSJ Owners). Whether ARDA kept them from being tripled or doubled - we will likely never know... but bottom-line is that they are going up... I expect them to double... (IMO, IMO, IMO)

What I wrote is regarding property taxes is correct (as well as the facts stated in the email from WSJ/SVO.
They haven't been paid since 2005 and due from 2006 on - will become due at some point (although I do believe the letter that it will take some time if my interpretation of USVI newspapers accounts is correct - which I read at least weekly - and they have series of lawsuits and US Govt intervention to deal with). And do not send your property taxes to the USVI Gov't until this is resolved.

I do think that WSJ has a reason to attempt to counter the proposed property tax since they are still selling VOIs at the BV section (as well as some for the VG section) - and they own a large portion as well.

 

[Tia]

I.....
I do think that WSJ has a reason to attempt to counter the proposed property tax since they are still selling VOIs at the BV section (as well as some for the VG section) - and they own a large portion as well.

Maybe it's why your maint. fees are increasing to help pay their taxes?

 

[DavidnRobin]

Maybe it's why your maint. fees are increasing to help pay their taxes?

I wish that were the case, but... Taxes are paid outside of the MFs, and taxes have not paid since 2005. (2006 taxes were billed at one time, but a court order rescinded the billing as they were illegal).

 

[DavidnRobin]

USVI Tax Article

http://www.virginislandsdailynews.com/index.pl/article_home?id=17643913

Still at a stalemate...

 

[DavidnRobin]

Article on New Restaurant at WSJ (Cruz Bay Prime)

http://barnako.typepad.com/news_of_st_john_usvi/2010/02/cru-prime-review.html#more

Cruz Bay Prime replaces C&B at the WSJ

 

[GeneNWendy]

Take action against Starwood for their outrageous maintenance fees

As many of you know, the owners at the Westin St. John are planning a class-action suit against Starwood for breaking many laws and using the owners of it's Virgin Grand Villas as ATM machines. We are also planning to launch a negative PR campaign against Starwood. The last thing they want is for their reputation to be tarnished, especially with the FTC and SEC watching over them in these post Bernie Madoff days. I suggest that people with rising fees at all Starwood resorts look at the string we created in Yahoo Finance. See below how to access it. Propective buyers of Starwood stock will read this. This can only hurt them. Maybe enough of this will get them to change their ways with respect to their timeshare owners.


I posted the string in yahoofinance.com. It would be helpful to let the folks know on the website that they can go to www.yahoofinance.com. Get a stock quote for HOT(Starwood's exchange acronym), which will bring up the Starwood trade history and message board on the left side. Click on that and look for the string "possible legal against starwood" and post a comment.

 

[Tia]

Did you see this one?

http://www.virginislandsdailynews.com/index.pl/article_home?id=17637390
a July article on this topic.

Tina

http://www.virginislandsdailynews.com/index.pl/article_home?id=17643913

Still at a stalemate...

 

[TimW1]

I am getting confused. My apologies. To the topic of MF, how many years were the increased assessment fees supposed to be according to everyone's letter from the association?

I finally found my letter back from October 2008 and it states that they were only temporarily going to be raised for 3 years. Am I correct or did someone get something different?

Believe me I am more upset about them going ahead with the refurbishment without the 2/3 vote necessary and costs that weren't transparent to all of us before they just went ahead with the process.

Also, to twist the knife in our side a little more. The MF this year was $200 more than last year. At least for a 2BR TH.

 

[TimW1]

News article about taxes

Government may offer a deal on property taxes

Governor John de Jongh told the VI Senate the government could be out of money by June. One way to weather the storm is to issue property tax bills.

The Territory's chief executive told the Senate a deficit of $170 million is looming. To reduce it, de Jongh said, there will also have to be expense cutting and a new $100 million bond issue.

He said there will not be "drastic actions like government-wide layoffs, pay cuts, or furloughs," according to the Virgin Islands Daily News. Which is of little comfort for tens of thousands of unemployed Islanders and their former employers.

The Governor also finally cried 'Uncle' on the property tax. While the territory has not collected property taxes for four years, hoping to levy them at grossly higher values set by a VI-wide reassessment, the need for dollars is critical. But Federal courts have again told the government its tax appeal system is inadequate and, until it's fixed, the new valuations can't be used.

So the Governor told the Senate he wants to issue tax bills for 2006 and 2007 at the old rates. This could bring in an estimated $80 million. For many property owners, the difference between the old and the new valuations is thousands of dollars.

 

[DavidnRobin]

I am getting confused. My apologies. To the topic of MF, how many years were the increased assessment fees supposed to be according to everyone's letter from the association?

I finally found my letter back from October 2008 and it states that they were only temporarily going to be raised for 3 years. Am I correct or did someone get something different?

Believe me I am more upset about them going ahead with the refurbishment without the 2/3 vote necessary and costs that weren't transparent to all of us before they just went ahead with the process.

Also, to twist the knife in our side a little more. The MF this year was $200 more than last year. At least for a 2BR TH.

3 year special assessment - we are in year 2 (one more payment due with the2011 MFs)

The base MF for 2010 was ~$2000 for a 2Bd TH - It was ~$1600 in 2009 (base MFs w/o SA) not $2000 (around a 25% increase.

 

[TimW1]

3 year special assessment - we are in year 2 (one more payment due with the2011 MFs)

The base MF for 2010 was ~$2000 for a 2Bd TH - It was ~$1600 in 2009 (base MFs w/o SA) not $2000 (around a 25% increase.

2008 Year Balance Details

Maintenance Fee(s) $ 1,521.17
Tax - If Applicable $ 0.00
Membership Fee - If Applicable $ 109.00
Other* $ 0.00
Interest $ 0.00
Late Fees $ 0.00
Sub-Total
Total Prior Year Charges $ 1,630.17






2009 Year Balance Details
Maintenance Fee(s) $ 2,465.82
Tax - If Applicable $ 0.00
Membership Fee - If Applicable $ 109.00
Other* $ 0.00
Interest $ 0.00
Late Fees $ 0.00
Sub-Total
Total Prior Year Charges $ 2,574.82



2010 (Current) Year Charges
Maintenance Fee(s) $ 2,866.05
Tax - If Applicable $ 0.00
Membership Fee - If Applicable $ 109.00
Other* $ 0.00
Interest $ 0.00
Late Fees $ 0.00
Sub-Total
Current Year Charges $ 2,975.05
Less Payments*** $ 2,975.05

2011 Projected Fees for Next Year $ 2,975.05


Sorry about that, David.

In the letter it stated back in October 2008:

"A Fiscal Balance
The current enrichments are being funded with the association's capital reserves, which were infused several years ago with a $1.2 million contribution from Starwood Vacation Ownership. To complete the additional sought-after restorations, a short-term, one-time increase in maintenance fees is needed. This increase, an average of $625 per vacation ownership week, will affect your 2009, 2010 and 2011 maintenance fees."



The word "average" I guess is loosely used and our increase not only went up from 25% but up to 45% for two years.

 

[DavidnRobin]

Hi Tim - in the letter - they are talking about the Special Assessment - not the base MFs (w/o SA). I found error in their math in this letter - and thought I posted this a while ago. I have a spreadsheet that breaks down the MF bill by year at home. I will dig it up and post.

Also recall that in one of the years they added a doubling of the replacement reserve (pre-SA) to the MFs

 

[DavidnRobin]

New GM at WSJ

http://www.stjohntradewindsnews.com/

whats the over/under for his stay - 8 months?

 

[DavidnRobin]

USVI Lt Gov recommends Prop Tax at 1998 rate

for 2006-2007

http://www.virginislandsdailynews.com/index.pl/article_home?id=17644326