So I understand that they need a full unit to add to any RTU plan - but can they do this even at OG resorts if full units become available? Do the existing documents for the current DVC associations prohibit this?
Also, is there anything preventing them (besides needing at least one full unit) from setting up tiers or different pricing for different RTU plan options? For example could they set up plans where you have multiple pricing/flexibility options like the following:
A) buy RTU only for the Cabins
B) RTU plan for Cabins PLUS Lakeside
C) RTU for Lakeside plus Riviera (using this since it isn't sold out yet)
D) RTU for all currently selling DVC
If it's based on needing current units then they could potentially tailor the options so that all of the possible configurations get included correct? I don't know anything about other companies who use RTU based systems so I'm curious how they typically handle it.
Once units are declared into a condo assocation for sale, they would need to remove them before adding them to the trust.....so, first they would have to try to take back ownership of one....which they can only do via ROFR, foreclosure, etc. and then once that full unit was owned by them, remove it...which, I don't even think they legally can. Plus, when DVD sells units, they keep their share of ownership in each one, which means they sell around 98% of every single one to others...
The way the trust is set up is that they can have as many RTU plans as they want and the units can be at different component sites....they add inventory to the trust and then that inventory gets activated for use in a speicfic plan...right now, there is only one plan....the Cabins Resort Use plan...
Now, if DVD wanted to sell a resort different ways, it would not have added PVB tower to PVB or they would have put undeclared units from RIV into the trust....since they did not, it tells you that creating a complicated situation like you suggest is not something they want or even can do.
The key with the way this trust is set up is that they have options that they didn't with a strict leashold condo distinction.....it allows them to keep each resort as its own like now, but sell as a RTU vs. leashold....system would function though just like now.
Or, they can activate different component sites into the same RTU plan...like making DLL and CFW one resort complex....and sell togheter...
I could see down the road them doing the same with say, BWV/BCV, when it expires...now one resort complex that you buy with access to both as home resorts.
While they could put everything all in one big RTU plan, I honestly do not see that happening...but who knows what and how they will use this in the future....until something else is added, its all just speculation but I think that with DLL back on the table as a project, it does seem that it will follow the CFW model, especially since CFW is selling so poorly and they don't seem to be increasing incentives to pull up those numbers.