Gurney's annual meeting bad news

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

I know that I can NEVER see Gurney's with my moderate trader, not even in the absolute depths of off-season winter.

[brother coony Senior Member Find all posts View Profile Close brother coony]

Most owners of winter season has turn there unit's over to Gurney's by just abandonment,
There are buyers for the property ,but they have to get 80% of shareholders to vote for it, summer owners wont go for it,to get financing its the same proplem as owners would also have to vote for it,
wackymother, gurney's is a seasonal resort from november to april the resort does not generate enought income to maintain itself
Still I think the Monte's want to raise MT.Fees and as more shareholders give up ther shares they get control, then sell the property,pocket some nice change, its a mess

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

Most owners of winter season has turn there unit's over to Gurney's by just abandonment,
There are buyers for the property ,but they have to get 80% of shareholders to vote for it, summer owners wont go for it,to get financing its the same proplem as owners would also have to vote for it,
wackymother, gurney's is a seasonal resort from november to april the resort does not generate enought income to maintain itself
Still I think the Monte's want to raise MT.Fees and as more shareholders give up ther shares they get control, then sell the property,pocket some nice change, its a mess

But out of 52 weeks in the year, there are only...well, eight high-summer weeks, let's say 10 weeks that are really desirable. And I'm being generous. That leaves 42 weeks' worth of owners who will probably vote as more or less a bloc.

Brother, I'm sure you're right that from November to April the resort isn't full or paying its way. It's very seasonal. (Although there are plenty of ultra-seasonal resorts that manage to struggle along with much lower maintenance fees...how about resorts in Cape Cod?)

But even in those low seasons, there are still owners paying their maintenance fees. And other resorts are pretty easy to exchange into during their low seasons. What is the deal with Gurney's that moderate traders can't get in there in, say, January? I could take that same trader and get into, say, the Sheraton Broadway in January...or the nicest resorts in Orlando in October/November...or Smuggler's Notch in April. Why is Gurney's so unavailable? The resorts get some money from RCI when an exchange is made, don't they? It does suggest that the Montes WANT the timeshare to fail so that they can get the whole place back....

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

Resorts do NOT receive money from exchange companies when exchanges are made.

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

Resorts do NOT receive money from exchange companies when exchanges are made.

They don't? Then what's the incentive to put HOA-owned weeks into the pool?

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

They don't? Then what's the incentive to put HOA-owned weeks into the pool?

HOA's on the OBX have done it for a couple of related reasons. One deposited about half of the weeks they had for sale during certain off season periods. They then offered a banked week as a sales incentive on buying weeks in that period. Two used them as ''make goods'' for owners unable to use their own weeks while the resorts were closed for hurricane repairs. One of those also used them as sales incentives. Resorts have also used them on an ''adopt a week'' basis for members who want an additional week to exchange and are willing to pay the m/f.

RCI policy, however, changed probably about five years ago, so that HOA weeks that were not actually taken as exchanges had their deposit credits cancelled. Since then, I have not been aware of any HOA's banking HOA weeks with RCI, although one or two have with DAE, which still gives an exchange credit that is not cancelled if not used.

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

Since then, I have not been aware of any HOA's banking HOA weeks with RCI, although one or two have with DAE, which still gives an exchange credit that is not cancelled if not used.

So what do the HOAs do with those weeks? They just sit empty b/c the costs are higher than the rentals, IF they're even able to rent them?

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

So what do the HOAs do with those weeks? They just sit empty b/c the costs are higher than the rentals, IF they're even able to rent them?

At Gurneys there is a real estate agent who has an office on the premises. She not only sells units, she rents them, as well. She is affiliated with Gurneys, I guess, but actually works for a couple of different real estate offices. She also handles Villa Roma, and some timeshare in St. Martin, etc.

[brother coony Senior Member Find all posts View Profile Close brother coony]

Yep. most winter weeks sit empty, at the last shareholders meeting at the end of april, it was suggested to have shareholders pay the maintenance fees and use them,but Paul Monte state that maintenance fees does not cover the cost of the room and there would be no profit, and no profit would not be helpful,You would figure there is fix cost and the maintenance fees would help there,
The latest is that the board will be siting down with colsultant and informing shareholders of where Gurney's is heading
A one week studio unit is 100 share, and Special assessment for the next 5 years are $6,ooo or $60 per share to cover the $21,431,408.00 needed to bring resort up to date

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

Yep. most winter weeks sit empty, at the last shareholders meeting at the end of april, it was suggested to have shareholders pay the maintenance fees and use them,but Paul Monte state that maintenance fees does not cover the cost of the room and there would be no profit, and no profit would not be helpful,You would figure there is fix cost and the maintenance fees would help there,
The latest is that the board will be siting down with colsultant and informing shareholders of where Gurney's is heading
A one week studio unit is 100 share, and Special assessment for the next 5 years are $6,ooo or $60 per share to cover the $21,431,408.00 needed to bring resort up to date:cry2:

Yikes, that is high, I don't blame you for crying. I'd have gone through a box of tissues already.

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

Maintaining proper reserves for keeping the resort updated is a fiduciary duty of the board. One would expect that they have errors and ommissions insurance coverage. Owners may want to ask some pointed questions about that. You might want to set up a concerned owners committee to look over what is going on, because it sounds like this may be a developer-controlled board, which is the worst kind, especially in circumstances like this.

Owners do not need to sit on their hands. They need to organize and demand to see the books, which state corporate law will allow in every state I am aware of. Don't be caught napping.

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

Yep. most winter weeks sit empty, at the last shareholders meeting at the end of april, it was suggested to have shareholders pay the maintenance fees and use them,but Paul Monte state that maintenance fees does not cover the cost of the room and there would be no profit, and no profit would not be helpful,You would figure there is fix cost and the maintenance fees would help there,
The latest is that the board will be siting down with colsultant and informing shareholders of where Gurney's is heading
A one week studio unit is 100 share, and Special assessment for the next 5 years are $6,ooo or $60 per share to cover the $21,431,408.00 needed to bring resort up to date

This just sounds soooo awful and so suspicious, sorry to say. Six thousand dollars! And then, after they do the renovations, then what? How do they plan to keep the timeshares going, if they've managed to get into such a state with $1K-plus maintenance fees?

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

This just sounds soooo awful and so suspicious, sorry to say. Six thousand dollars! And then, after they do the renovations, then what? How do they plan to keep the timeshares going, if they've managed to get into such a state with $1K-plus maintenance fees?

I am not entirely surprised at much of this. The T/S units compromise a very small portion of the rambling property itself, but sounds like they are being asked to foot much of the bill. End result will undoubtedly be a sale of the property. Sigh.

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

I am the person who sent the first e-mail about Gurney's Inn. I am on the committee and am trying to save it. The Monte's do NOT own Gurney's. We do . The keep control by the second mortgage which is ludicrous in this day and age. There are a lot of things we can do . Send me your e-mail addresses and I will keep you posted. PatBoffa@aol.com

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

Gurney's Inn Resort and Spa

Gurney's Inn is controlled by the Montemanaro family and has been for 27 years. They control the board of directors because they have 2,700,000 Class B shares. They have these shares because they hold the majority interest in the Gurney's Inn Liquidating Trust which has a $2.7 Million dollar loan on the property. Until this loan is paid off they get to control the board. They control the board that decides whether or not to pay off the mortgage so the mortgage will never get paid off by them and they will never give up control. All of the property, spa restaurant etc is owned by the timeshare owners. We timeshare owners hold approximately 350,000 Class A shares. We get to elect one director and they elect two. In my opinion our director is also their director as he never tells us what is really going on and has never helped us get the books and records. I tried for a year in 2002 and am trying again now but a lawsuit may be the only way to force them. Owners should write the Attorney General of New York about this situation. I am organizing shareholders to fight them. Please contact me at Patboffa@aol.com