Bluegreen Annual Meeting Notice - Sept 25, 2007

[BoardGirl Senior Member Find all posts View Profile Close BoardGirl]

Before you dismiss all converted motels, visit Solara Surfside.

I don't want them to shed any that they own, but there are some affiliates like Player's Club that wouldn't upset me if they were to disappear. I would expect over time that affiliates may be discontinued as BG buys or builds their own in those areas. They're trying to offer choices, and I appreciate that.

I don't share your view about holding down value and perceived quality, or holding down resale prices since points can be used network-wide. I would rather BG remain affordable. I do, however, respect your point of view.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

They can't just eliminate associate resorts. Those weeks are owned by people like us and they have owner beneficiary rights associated with them. Bluegreen would have to buy them all out and then terminate the relationship with the resort. I don't see that happening.

[Bill927 Junior Member Find all posts View Profile Close Bill927]

Why would they have to buy you out? The deeded owners own the resort, not Bluegreen. I would be shocked if there wasn't an option for Bluegreen to sell the management of the resort to another company and then disassociate the deeded owners of the resort from BGVC. No compently run Corporation leaves itself boxed into owning particular assets. Corporations always leave themselves some way to sell off assets to either raise money or get out of an asset in case it becomes a liability. They also want the ability to shed assets to make themselves more valuable in case they decide to sell the corporation. I frequently see companies sell assets to improve their cashflow and make themselves become a more attractive take over target.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Why would they have to buy you out? The deeded owners own the resort, not Bluegreen. I would be shocked if there wasn't an option for Bluegreen to sell the management of the resort to another company and then disassociate the deeded owners of the resort from BGVC. No compently run Corporation leaves itself boxed into owning particular assets. Corporations always leave themselves some way to sell off assets to either raise money or get out of an asset in case it becomes a liability. They also want the ability to shed assets to make themselves more valuable in case they decide to sell the corporation. I frequently see companies sell assets to improve their cashflow and make themselves become a more attractive take over target.

Bill,

The owners own the points and the deeded weeks, NOT Bluegreen. THEY would have to decide to give up their owner beneficiary rights granted to them which are protected by Florida Real Estate law. Florida law is very consumer friendly. Bluegreen would need to pay dearly to kick them out. And, why should they? Because someone named Bill doesn't like them in the club? You can't just ditch a portion of your owners because a few want to boot them out. What if the board voted to kick out everyone with the name Bill? How would that make you feel? That is essence in what you are asking Bluegreen to do with resorts you don't like. The bottom line is if you don't like specific resorts, don't book them. That's your right. It is not Bluegreen's right to kick out owners for some arbitrary reason who spent good money to become part of the Club. And, it doesn't benefit them in any way. Why would they even consider it?

[Bill927 Junior Member Find all posts View Profile Close Bill927]

The problem with E-mails and posts is that they don't convey tone. Boca, please take this post in the spirit that it is offered, friendly discussion, not combat. Your expertise on BGVC is so far above anyone else's that I bow to the Master.

In my last post I was talking strictly from a point of view of the corporation, not the T/S owners. It was my understanding, apparently incorrectly, that we owned the deeds and that the points were not a true legal instrument. If the points have legal standing separate from the deeds, I was unaware of it. Thanks for correcting my misunderstanding.

Just for a intellectual discussion (again, not trying stir anything up) and to answer your question: Why would Bluegreen (or its sucessors) as a corporation want to get rid of a resort? A couple of hypothetical thoughts pop into my head:

a. How about a situation where a resort in the Bluegreen portfolio has a negative or low cashflow to Bluegreen? Perhaps the resort consumes a disproportional amount of overhead compared to the other resorts. To increase their balance sheet, Bluegreen might desire to get rid of it.

b. How about Marriot buys Bluegreen Corporation. Marriot might not consider certain resorts as fitting into the Marriot system. Marriot might want strip certain resorts out of the BGVC and incorporate them into their system, leaving the the remaining resorts by themselves in the BGVC.

c. 10 years from now Bluegreen gets into a cashflow crunch. They might want to sell assets to stay solvent.

Again, I am just talking about desires (not actions) of the Corporation.

Thanks in advance for your tolerance.

[crwisconsin Senior Member Find all posts View Profile Close crwisconsin]

Deletions from the Vacation Club

In response to Bill's questions, if Bluegreen the developer goes belly up, that legally doesn't affect the Vacation Club. If the Vacation Club is having financial problems, it simply raises maintenance fees and/or Club dues.

But, resorts can be deleted.

1. Let's say a resort is wiped out by a big storm or forest fire. The Trustee may elect to rebuild or buy another resort to replace it. If that is not done, the Trustee must divide up the insurance money received amongst the various members whose Owner Beneficiary Rights are based on that resort. Of course, they lose their points.

2. The resort may be taken by Eminent Domain. Again, the monies received would go to the various members whose Owner Beneficiary Rights are based on that resort. Of course, they lose their points.

3. If the term of the deed expires. Then the Owner Beneficiary Rights are deleted.

Note that the Trustee has to do these things to maintain the One-to-One Owner Beneficiary to Accommodation ratio.

I will refer you to your Multi-Site Public Offering Statement for more detail documentation.

Charles

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

The problem with E-mails and posts is that they don't convey tone. Boca, please take this post in the spirit that it is offered, friendly discussion, not combat. Your expertise on BGVC is so far above anyone else's that I bow to the Master.

In my last post I was talking strictly from a point of view of the corporation, not the T/S owners. It was my understanding, apparently incorrectly, that we owned the deeds and that the points were not a true legal instrument. If the points have legal standing separate from the deeds, I was unaware of it. Thanks for correcting my misunderstanding.

Just for a intellectual discussion (again, not trying stir anything up) and to answer your question: Why would Bluegreen (or its sucessors) as a corporation want to get rid of a resort? A couple of hypothetical thoughts pop into my head:

a. How about a situation where a resort in the Bluegreen portfolio has a negative or low cashflow to Bluegreen? Perhaps the resort consumes a disproportional amount of overhead compared to the other resorts. To increase their balance sheet, Bluegreen might desire to get rid of it.

b. How about Marriot buys Bluegreen Corporation. Marriot might not consider certain resorts as fitting into the Marriot system. Marriot might want strip certain resorts out of the BGVC and incorporate them into their system, leaving the the remaining resorts by themselves in the BGVC.

c. 10 years from now Bluegreen gets into a cashflow crunch. They might want to sell assets to stay solvent.

Again, I am just talking about desires (not actions) of the Corporation.

Thanks in advance for your tolerance.

Bill,

Sorry if I came across too harshly. I do that every now and then. My apologies. I want to see an open debate. Ideas should be free flowing.

Now I understand why you said what you did. That makes more sense to me now. It is true that the Bluegreen point system has been legally formed under what is called in Florida Statues Chapter 721.

Here is the Florida Statute that governs timeshares in the state of Florida: Florida Statutes Chapter 721.

There is a specific subchapter that governs multi-site timeshare plans. Most of these types of offerings are point systems at many locations.

Here is the Florida statute for that: Florida Statute 721.55

So, you see that Bluegreen's Public Offering statement has all the rules for how the Club operates, how resorts can be added and deleted and what it must cover to be properly and legally formed.

[jorgevalenzuela Junior Member Find all posts View Profile Close jorgevalenzuela]

BVC annual dues question

[QUOTE=BocaBum99;165608]Many Bluegreen Resorts are already dually affiliated with II and RCI. It's just that the new resorts are all RCI resorts. And, the RCI membership fee is built into the Bluegreen annual dues.


How much of the annual BVC dues go to RCI to pay for the RCI annual dues? We pay BVC and they pay RCI, or so we're told. RCI's dues say they're $89 a year, does Bluegreen pay RCI that out of our dues?

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

[QUOTE=jorgevalenzuela;170818]

Many Bluegreen Resorts are already dually affiliated with II and RCI. It's just that the new resorts are all RCI resorts. And, the RCI membership fee is built into the Bluegreen annual dues.


How much of the annual BVC dues go to RCI to pay for the RCI annual dues? We pay BVC and they pay RCI, or so we're told. RCI's dues say they're $89 a year, does Bluegreen pay RCI that out of our dues?

Yes, Bluegreen pays RCI, but I think they actually pay about $25/account. It's in the BVC income statement as a line item. I recall calculating it once and that is about the amount I recall. It must be a wholesale rate.

[Thirsty Senior Member Find all posts View Profile Close Thirsty]

I am waiting for some news from Jim about BG's annual meeting. There are so many things that COULD happen. I am also wondering if Vickie was elected to the board!!

[BoardGirl Senior Member Find all posts View Profile Close BoardGirl]

Highlights

Nope, incumbent won. That's how it goes - non-voters or those giving proxy to the secretary will prob'ly always outnumber the people I can reach online. Thanks everyone that voted for me. "Next time."

All points up for the board to vote on passed unanimously.

Two new levels have been announced, a 15000 and a 60000 but no word on bennies or effective dates. There could be a reorg of the bennies already offered such as early check-in that is negatively impacting the resorts. Paying maint with points is another they will be changing - the calculations

The Shells rumor is an inventory-sharing arrangement BUT it's a TP offering, and is only available to those purchasing thru BG since July 1, 2006. It will be an exchange model and will have a $49 transaction fee and specific reservation windows

New resorts/usages - Oddyssey in Wisc Dells, Vegas in 08, Patrick Henry Inn available now, and a wilderness club to be built @ Shenandoah, RV sites at Christmas Mountain

A fee to change anniv dates is proposed, $250, to cover the internal expenses and to discourage it's being done. This is not yet a done deal, but the board has voted to accept a fee being charged.

Extended contract with RCI thru end of June 09

Sales tax audit continues

May discontinue owner rental program and find a replacement for it - but not RCI

No increase in club dues for the 10th consecutive year

Some increases in maint fees; depends on which trust your deed is in, but the range is from 5 - 14%. Trust fund E is getting a special assessment of 4.2 cents/pt due to the real estate tax assessment on Fountains and a refurb at La Cabana

There have been huge increases in insurance costs almost across the board. Some are triple digit increases in one year.

That's the highlights!

[greenwagonmom Member Find all posts View Profile Close greenwagonmom]

Thank you for the update!

[rapmarks Moderator Find all posts View Profile Close rapmarks]

Shopgirl
I am curious abut new resorts/usages and listed is RV sites at christmas Mountain. They have had those sites for 20 years, so that is not new. is there a change in that you can use vacation club points for an RV site?

[vintner Super Moderator Find all posts View Profile Close vintner]

BoardGirl said:
The Shells rumor is an inventory-sharing arrangement BUT it's a TP offering, and is only available to those purchasing thru BG since July 1, 2006. It will be an exchange model and will have a $49 transaction fee and specific reservation windows
****
Your breaking my heart. I so hoped there would be wine country resorts from BG, but it sounds as anything will be so restricted, I won't ever get to use my points out there.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Vicki did a great job with the high points. It was a terrific meeting. I got a chance to meet a lot of the Bluegreen Executive team. They really do care about owner needs and listened intently to our input.

I'm excited about Shell. It'll give us a lot more options for using our points.