- Joined
- Dec 17, 1999
Hey Gang
Just wanted to give you an update on the meeting held at the Contemporary today about the extenstion of contracts for Old Key West DVC members to end in 2057 versus 2042. I will be talking more about this on next weeks pod cast (not tomorrow's show as that has already been recorded).
It was a well run meeting and they did allow the attendees (of which I would guess there were between 30 & 40 people) to ask questions. They explained what the extension of the contract meant, how it would be presented and then they voted to pass all resolutions pertaining to the meeting.
Here are the highlights:
- All Old Key West DVC owners will receive a letter of offer to extend the ground lease of their vacation ownership from ending 1/31/2042 to ending 1/31/2057. Meaning that the property OKW sits on will be leased from the Walt Disney World Company for an additional 15 years.
- The price will be $25 per point to extend current contracts for 15 years. However if you accept the extension before 2/29/2008 Disney Vacation Developement will pay $10 of that $25. Making the final cost to the owner $15 per point of you act before 2/29/2008. If you act after that the price will be $25 per point.
- There is no cost to the owner at all if they choose not to do this. All that happens is they will assign their vacation ownership back to DVC for the period of 2042 - 2057.
- This can be done per contract with DVC - so if you are like me and own multiple contracts you can choose to do one or both of your contracts. But each contract must be done for the full value of the points.
- This only being offered at OKW for now.
- No effect on current annual dues.
- If you choose to take the offer you will receive a special "Lighthouse Memory Capsule" (don't ask me what that is) as well as a special lithograph.
- If you choose not to take the offer you will get the lithograph but not the lighthouse thingy.
- There will be no closing costs associated with the extension.
- Since DVC recognizes that there will be cost and time involved (paperwork will have to be notarized) even if you don't accept the offer they are going to credit every owner $30 on their December 2007 dues to cover the costs.
- It can be financed with DVC - current terms = 10.75% for 10 years. It can also be financed on your own, or paid in full or charged to a major credit card.
- Price of OKW points purchased through DVC prior to the resolutions being passed was $92 per point and ending in 2042. After the resolution passed OKW points are now $96 each and will end in 2057.
- I specifically asked about a 'lien' being placed on our contracts and was told no (and looked at like I was crazy). However later on they read the resolutions and number 2 said that a lien would be placed on all current contracts in the form of special assessment for the extension of the ground
lease. My understanding is the lein is satisfied by either accepting or rejecting the extension.
- One person asked what if you do not fill out the paperwork due to illness or death or just forgetting and was basically told that DVC will do everything in their power to contact every owner to get the paperwork done, whether you accept or reject the extension.
- One person asked what if they reject the extension offer now will they be able to accept later on and was told no - this was a one time offer. Another person asked what if they rejected the current extension and in 20 years they make another offer for a further extension could they take advantage of that. While they would not commit to specifics they seemed to indicate that would be allowed.
After the special meeting a general meeting was held. No big news there but here are some highlights:
- They confirmed the new Vacation Club property in CA (although that press release is out already).
- They would not confirm or deny that a Vacation Club property was in the works at the Contemporary resort.
They answered some other general questions and the meeting was adjourned.
John
Just wanted to give you an update on the meeting held at the Contemporary today about the extenstion of contracts for Old Key West DVC members to end in 2057 versus 2042. I will be talking more about this on next weeks pod cast (not tomorrow's show as that has already been recorded).
It was a well run meeting and they did allow the attendees (of which I would guess there were between 30 & 40 people) to ask questions. They explained what the extension of the contract meant, how it would be presented and then they voted to pass all resolutions pertaining to the meeting.
Here are the highlights:
- All Old Key West DVC owners will receive a letter of offer to extend the ground lease of their vacation ownership from ending 1/31/2042 to ending 1/31/2057. Meaning that the property OKW sits on will be leased from the Walt Disney World Company for an additional 15 years.
- The price will be $25 per point to extend current contracts for 15 years. However if you accept the extension before 2/29/2008 Disney Vacation Developement will pay $10 of that $25. Making the final cost to the owner $15 per point of you act before 2/29/2008. If you act after that the price will be $25 per point.
- There is no cost to the owner at all if they choose not to do this. All that happens is they will assign their vacation ownership back to DVC for the period of 2042 - 2057.
- This can be done per contract with DVC - so if you are like me and own multiple contracts you can choose to do one or both of your contracts. But each contract must be done for the full value of the points.
- This only being offered at OKW for now.
- No effect on current annual dues.
- If you choose to take the offer you will receive a special "Lighthouse Memory Capsule" (don't ask me what that is) as well as a special lithograph.
- If you choose not to take the offer you will get the lithograph but not the lighthouse thingy.
- There will be no closing costs associated with the extension.
- Since DVC recognizes that there will be cost and time involved (paperwork will have to be notarized) even if you don't accept the offer they are going to credit every owner $30 on their December 2007 dues to cover the costs.
- It can be financed with DVC - current terms = 10.75% for 10 years. It can also be financed on your own, or paid in full or charged to a major credit card.
- Price of OKW points purchased through DVC prior to the resolutions being passed was $92 per point and ending in 2042. After the resolution passed OKW points are now $96 each and will end in 2057.
- I specifically asked about a 'lien' being placed on our contracts and was told no (and looked at like I was crazy). However later on they read the resolutions and number 2 said that a lien would be placed on all current contracts in the form of special assessment for the extension of the ground
lease. My understanding is the lein is satisfied by either accepting or rejecting the extension.
- One person asked what if you do not fill out the paperwork due to illness or death or just forgetting and was basically told that DVC will do everything in their power to contact every owner to get the paperwork done, whether you accept or reject the extension.
- One person asked what if they reject the extension offer now will they be able to accept later on and was told no - this was a one time offer. Another person asked what if they rejected the current extension and in 20 years they make another offer for a further extension could they take advantage of that. While they would not commit to specifics they seemed to indicate that would be allowed.
After the special meeting a general meeting was held. No big news there but here are some highlights:
- They confirmed the new Vacation Club property in CA (although that press release is out already).
- They would not confirm or deny that a Vacation Club property was in the works at the Contemporary resort.
They answered some other general questions and the meeting was adjourned.
John