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I received this e-mail this morning:
Good Morning,
At the Annual Meeting of Members on June 10th, 2006, your Board of Directors discussed ongoing and significant communications with Harrah’s Entertainment, Inc regarding the redevelopment of the Las Vegas Resort. Since that time, a plan has developed that has received positive recognition from all parties involved.
Please review the most frequently asked questions regarding a plan to exchange our current resort for a 19.5 acre 658-unit condominium project directly next to us. The Desert Club is a beautiful, gated project. All suites have washers and dryers, fireplaces, dishwashers, private patios and spacious floor plans. The plan also calls for a complete renovation of this project before we would move in; it would look, feel and operate like brand new! We are excited at the possibilities!
The process and plan is not going to happen overnight. The Board will be sending out a formal announcement in the near future with more detail that will be specific to your ownership. Your Board has been extremely pleased with the direction of the plan and the protection and enhancement of the rights of the owners.
I am anxious to hear your comments, questions and thoughts. Please contact me at (702) 731-6100 Ext. 6408 or at lasvegasowners@summerbayresort.com
LAS VEGAS RESORT OWNERS ASSOCIATION
General Statement
There was a vote of the general membership in July 2002 to permit the redevelopment of the resort. It resulted in an amendment to the owners governing documents allowing for “redevelopment.” This amendment created “redevelopment rights” which were never clearly defined. In 2003 the previous developer filed bankruptcy. The bankruptcy court validated the existence of these redevelopment rights and sold them as part of the assets. Those rights are now owned by a company with is controlled by Harrah’s Entertainment, Inc.
Summer Bay and Harrah’s Entertainment, Inc. have been discussing these redevelopment rights for sometime. They have reached an agreement in principle, which is being supported by your Board of Directors which will involve the exchange of the current resort for a property known as the Desert Club. The Desert Club is located next door to our resort on Koval Avenue. We expect a final agreement with be signed and an official announcement to all owners will be made in the next several weeks.
Q: Does that mean Harrah’s owns the property?
A: Harrah’s does not own the property that the resort sits on. It is owned by each of the 25,428 owners (52 weeks x 489 units). Harrah’s owns the right to redevelop the resort. In order to exercise this right, they have to come to an agreement with the Las Vegas Resort Owners Association.
Q: Is Harrah’s going to buy my timeshare week?
A: A purchase of individual timeshare interest by Harrah’s is not part of the plan and there will be not option offered to the owners to “buy back” timeshare weeks. by Harrah’s. Selling the resort has never been part of any discussion regarding “re-development.”
Q: Will Harrah’s tear down the resort and build a new timeshare resort?
A: Tearing down what we have and re-building on the same location will not happen. There is not an incentive for anyone to bear those costs without charging the timeshare owners.
Q: Is there a possibility that we could move to another existing location?
A: Moving to the Desert Club is the plan. The agreement which is being prepared will provide for adequate funding to be paid from Harrah’s to your HOA to completely renovate that property to make it look, feel and operate like a new timeshare resort.
Q: What will be the costs to the owners?
A: There will be no costs to the owners. All costs of the acquisition, renovations, improvements and legal costs associated with the relocation will be paid by Harrah’s.
Q: Will I be able to sell my timeshare interest and make money?
A: We could not speculate as to whether or not anyone could or would be able to profit from the sale of their individual interest. The purchase of timeshare should never be made as an investment. The costs of sales and marketing make it highly unlikely, if not impossible, for an individual to make a “profit” on resale of a timeshare interest. Any buying decision should be made on the basis of the suitability of the product to meet you and your family’s vacation and travel needs.
Q: Will my rights to occupy and use my timeshare interest be interrupted?
A: Under the plan no one would suffer any loss of use at any time.
Q: What about the location, we are currently right next door to the strip?
A: The plan includes provisions to address access to the strip. We believe that the membership will be excited about new access and transportation provisions which will be addressed.
Q: I have a deeded week in the current resort, what will I be getting?
A: Your deed will be exchanged for a new deed for an interest in the new resort. This will be detailed in correspondence to you in the near future.
Q: Is this a “done deal”
A: No legal agreement is final until signed by all the parties. At this time we expect the agreement will be finalized, but we can make no final representations until there is a signed agreement.
Q: I feel I need additional information; who can I contact?
A: You can contact the Board of Directors through its secretary, Victor McElroy. He can be reached at lasvegasowners@summerbayresort.com or (702) 731-6100 Ext. 6408
This document has not been reviewed or approved by Harrah’s Entertainment Inc.
Victor McElroy
Secretary, Las Vegas Resort Owners Association
Resort Manager
Summer Bay Resort Las Vegas
Good Morning,
At the Annual Meeting of Members on June 10th, 2006, your Board of Directors discussed ongoing and significant communications with Harrah’s Entertainment, Inc regarding the redevelopment of the Las Vegas Resort. Since that time, a plan has developed that has received positive recognition from all parties involved.
Please review the most frequently asked questions regarding a plan to exchange our current resort for a 19.5 acre 658-unit condominium project directly next to us. The Desert Club is a beautiful, gated project. All suites have washers and dryers, fireplaces, dishwashers, private patios and spacious floor plans. The plan also calls for a complete renovation of this project before we would move in; it would look, feel and operate like brand new! We are excited at the possibilities!
The process and plan is not going to happen overnight. The Board will be sending out a formal announcement in the near future with more detail that will be specific to your ownership. Your Board has been extremely pleased with the direction of the plan and the protection and enhancement of the rights of the owners.
I am anxious to hear your comments, questions and thoughts. Please contact me at (702) 731-6100 Ext. 6408 or at lasvegasowners@summerbayresort.com
LAS VEGAS RESORT OWNERS ASSOCIATION
General Statement
There was a vote of the general membership in July 2002 to permit the redevelopment of the resort. It resulted in an amendment to the owners governing documents allowing for “redevelopment.” This amendment created “redevelopment rights” which were never clearly defined. In 2003 the previous developer filed bankruptcy. The bankruptcy court validated the existence of these redevelopment rights and sold them as part of the assets. Those rights are now owned by a company with is controlled by Harrah’s Entertainment, Inc.
Summer Bay and Harrah’s Entertainment, Inc. have been discussing these redevelopment rights for sometime. They have reached an agreement in principle, which is being supported by your Board of Directors which will involve the exchange of the current resort for a property known as the Desert Club. The Desert Club is located next door to our resort on Koval Avenue. We expect a final agreement with be signed and an official announcement to all owners will be made in the next several weeks.
Q: Does that mean Harrah’s owns the property?
A: Harrah’s does not own the property that the resort sits on. It is owned by each of the 25,428 owners (52 weeks x 489 units). Harrah’s owns the right to redevelop the resort. In order to exercise this right, they have to come to an agreement with the Las Vegas Resort Owners Association.
Q: Is Harrah’s going to buy my timeshare week?
A: A purchase of individual timeshare interest by Harrah’s is not part of the plan and there will be not option offered to the owners to “buy back” timeshare weeks. by Harrah’s. Selling the resort has never been part of any discussion regarding “re-development.”
Q: Will Harrah’s tear down the resort and build a new timeshare resort?
A: Tearing down what we have and re-building on the same location will not happen. There is not an incentive for anyone to bear those costs without charging the timeshare owners.
Q: Is there a possibility that we could move to another existing location?
A: Moving to the Desert Club is the plan. The agreement which is being prepared will provide for adequate funding to be paid from Harrah’s to your HOA to completely renovate that property to make it look, feel and operate like a new timeshare resort.
Q: What will be the costs to the owners?
A: There will be no costs to the owners. All costs of the acquisition, renovations, improvements and legal costs associated with the relocation will be paid by Harrah’s.
Q: Will I be able to sell my timeshare interest and make money?
A: We could not speculate as to whether or not anyone could or would be able to profit from the sale of their individual interest. The purchase of timeshare should never be made as an investment. The costs of sales and marketing make it highly unlikely, if not impossible, for an individual to make a “profit” on resale of a timeshare interest. Any buying decision should be made on the basis of the suitability of the product to meet you and your family’s vacation and travel needs.
Q: Will my rights to occupy and use my timeshare interest be interrupted?
A: Under the plan no one would suffer any loss of use at any time.
Q: What about the location, we are currently right next door to the strip?
A: The plan includes provisions to address access to the strip. We believe that the membership will be excited about new access and transportation provisions which will be addressed.
Q: I have a deeded week in the current resort, what will I be getting?
A: Your deed will be exchanged for a new deed for an interest in the new resort. This will be detailed in correspondence to you in the near future.
Q: Is this a “done deal”
A: No legal agreement is final until signed by all the parties. At this time we expect the agreement will be finalized, but we can make no final representations until there is a signed agreement.
Q: I feel I need additional information; who can I contact?
A: You can contact the Board of Directors through its secretary, Victor McElroy. He can be reached at lasvegasowners@summerbayresort.com or (702) 731-6100 Ext. 6408
This document has not been reviewed or approved by Harrah’s Entertainment Inc.
Victor McElroy
Secretary, Las Vegas Resort Owners Association
Resort Manager
Summer Bay Resort Las Vegas
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