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A dark cloud hangs over Gurney’s Inn
An August 1, 2008 letter to the resort’s timeshare owners from, Paul Monte, General Manager, C.E.O Gurney’s Inn Resort, Spa & Conference Center, Montauk , N.Y., said, the resort is "facing yet another significant financial challenge." The letter goes on to say that timeshare shareholders are being hit with a second special assessment this year of $624 per 100 shares owned.
Another communication was sent on August 1, 2008 to owners by Edward J. Leggio, Member of the Board of Directors, on behalf of an advisory committee formed to provide Leggio with input from timeshare owners about "their ideas, concerns and feelings about the future of Gurney’s and to explore possible financial alternatives." The notice by the Committee on Financial Alternatives stated that the conclusions of a consulting firm hired by the Board found that, " the existing timeshare model at the Gurney’s Inn is simply not viable any more, and that it is highly predictable that the current model cannot economically sustain itself through the end of the lease term in the year 2032." The Board and management said that the resort will need to spend about $20 million over the next five years that would cost shareholders $6,000 per 100 shares owned or seek out other alternatives such as: Finding a third party buyer, securing additional/alternative financing, operating as status quo without the $20 million expenditure, reducing operating expenses to survival mode, resuming sales of timeshare previously retired to generate income, delaying the sale of the resort for several years until the current market improves, considering having owners use their units for a few years but less than the term of the lease and having timeshare owners buy out the existing second mortgage and the unsold shares and then assume control of the property.
In the midst of all this discouraging news, some committee members are disputing the accuracy of the letter sent out by Leggio, claiming it was not approved by all the members. These members also said that they wanted the notice to express the committee’s desire to maintain the current timeshare ownership but never recognized that a major infusion of capital would be required to maintain a successful, attractive resort including the existing amenities, as Leggio's letter implies. The letter only gave Leggio's email address to which owners could respond, omitting email contact information for committee members. Some committee members would like to find a way to save the resort from being forced into a sale and from the imposition of the substantial special assessments that are forcing owners to turn back their weeks.
Further, New York State Laws governing cooperatives provide that any shareholder is entitled to receive a list of names and addresses of all the shareholders within five days of such a request. Pat Boffa, a committee member who requested the list in order to communicate with shareholders, said that over 30 days has elapsed since she made the request and no list has been conveyed to her by the Board. Boffa asks that any shareholder reading this article, send an email to her patboffa@aol.com
TimeSharing Today sent an email to Edward Leggio with a copy of the above article requesting his comments. We did not receive a reply. Readers wishing to express their views about the status of Gurney’s Inn should write staff@tstoday.com Subject: Gurney’s Inn
A dark cloud hangs over Gurney’s Inn
An August 1, 2008 letter to the resort’s timeshare owners from, Paul Monte, General Manager, C.E.O Gurney’s Inn Resort, Spa & Conference Center, Montauk , N.Y., said, the resort is "facing yet another significant financial challenge." The letter goes on to say that timeshare shareholders are being hit with a second special assessment this year of $624 per 100 shares owned.
Another communication was sent on August 1, 2008 to owners by Edward J. Leggio, Member of the Board of Directors, on behalf of an advisory committee formed to provide Leggio with input from timeshare owners about "their ideas, concerns and feelings about the future of Gurney’s and to explore possible financial alternatives." The notice by the Committee on Financial Alternatives stated that the conclusions of a consulting firm hired by the Board found that, " the existing timeshare model at the Gurney’s Inn is simply not viable any more, and that it is highly predictable that the current model cannot economically sustain itself through the end of the lease term in the year 2032." The Board and management said that the resort will need to spend about $20 million over the next five years that would cost shareholders $6,000 per 100 shares owned or seek out other alternatives such as: Finding a third party buyer, securing additional/alternative financing, operating as status quo without the $20 million expenditure, reducing operating expenses to survival mode, resuming sales of timeshare previously retired to generate income, delaying the sale of the resort for several years until the current market improves, considering having owners use their units for a few years but less than the term of the lease and having timeshare owners buy out the existing second mortgage and the unsold shares and then assume control of the property.
In the midst of all this discouraging news, some committee members are disputing the accuracy of the letter sent out by Leggio, claiming it was not approved by all the members. These members also said that they wanted the notice to express the committee’s desire to maintain the current timeshare ownership but never recognized that a major infusion of capital would be required to maintain a successful, attractive resort including the existing amenities, as Leggio's letter implies. The letter only gave Leggio's email address to which owners could respond, omitting email contact information for committee members. Some committee members would like to find a way to save the resort from being forced into a sale and from the imposition of the substantial special assessments that are forcing owners to turn back their weeks.
Further, New York State Laws governing cooperatives provide that any shareholder is entitled to receive a list of names and addresses of all the shareholders within five days of such a request. Pat Boffa, a committee member who requested the list in order to communicate with shareholders, said that over 30 days has elapsed since she made the request and no list has been conveyed to her by the Board. Boffa asks that any shareholder reading this article, send an email to her patboffa@aol.com
TimeSharing Today sent an email to Edward Leggio with a copy of the above article requesting his comments. We did not receive a reply. Readers wishing to express their views about the status of Gurney’s Inn should write staff@tstoday.com Subject: Gurney’s Inn
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