DVC Club Level and Home Resort Survey

[Sandisw]

There’s a list of historic DVC surprises. When it comes to the trust and restrictions I can’t help but think they’re positioning to recapture the resale and rental markets. If DVC has a limit or saturation point, it makes sense DVD is looking for ways to survive the future. Why not take back control of profits being made on your own product?

Yeah, that makes sense. And given the number of units right now at different properties coming as new, the trust would be starting with a pretty decent set of rooms.

Those in the trust are the home resort priority and the access to all current DVC are fined as exchange agreement with BVTC at the 7 month just like the current DVC Resort agreement is set up.

 

[Mirabell Rose]

Interesting that it is not for profit. Maybe it’s going to be a shell company for some of the for profit ones and this is a paper/legal realignment.

 

[hhisc16]

What seems to be missing is the differences in the rights and privileges of Class A vs Class B owners. Of course, it ain’t detailed enough yet to know what properties will be part of it…..but, wow…just wow..

I hope DVC News and DVC Fan will look into this and dig around.
I am curious to see what they can find!

 

[pkrieger2287]

Thanks to those who have driven me to this conversation! - We will do some digging and see what we can find. It rings a bell with something I know was being considered some time ago, which actually would be pretty cool if it transpired!

 

[Cfabar1]

This is huge! and probably explains the cagey language.... Needed some wiggle room....

https://bisprofiles.com/fl/palmetto-trust-association-n23000009709

Officers: Bill Dierkson, Shannon Sakaske, Yvonne Chang.

Do we know that CFW has a new association yet? When are they hoping to begin sales?

 

[zavandor]

The DVC Management Company, which manages the resorts, and the Buena Vista Trading Company, which handles the exchanges between resorts, are non profit. I expect the Trust is similar: it manages the rules of the trust without making a profit. It's DVD which sells the points for the Trust that makes a profit.

 

[Minniemoo15]

I remember seeing a tweet about 6 months about from a Disney rumour guy who seems to get a lot of stuff right. He said “Major changes are coming to DVC later this year. I suspect we’ll start seeing new resorts pop up after they occur”. In response to someone asking for clarification, he said “I think the Grand Floridian project was the last under existing associations”.

I wondered at the time what that meant .. it seems to line up with this trust idea..

 

[TheDailyMoo]

Excuse me for being slow on the pickup but are we talking about DVC being two different products? Legacy DVC and new DVC?

 

[Cfabar1]

Excuse me for being slow on the pickup but are we talking about DVC being two different products? Legacy DVC and new DVC?

We don't know yet but the premise, if Disney goes this way would be something like this:

Legacy DVC - You buy a deed to a specific resort and an ownership interest. Say you own .00012% of Copper Creek until the resort expires in 2068. You get 11 months booking at this resort advantage, and can trade into other resorts in the BVTC that you are eligible to trade into at 7 months. You pay Annual Dues/Maintenance Fees that maintain and fund the operations of your specific resort and your ownership interest.

New DVC - You buy the right to use a certain number of points that are held "in trust" for you to access annually. All the points available to owners are pooled together, and able to be used. You do not have a "deed", nor do you "own" anything other than the right to access these points. You continue to pay annual dues/maintenance fees to offset the cost of maintaining all the points/resorts available in the program, averaged out by the needs of the organization. Most likely, this would be for new resorts/parts of resorts that are undeclared. (At the moment, imagine this to be Cabins, Poly 2 potentially, the undeclared parts of VDH, and RIV.). Others speculate that it may be possible for Disney to acquire points through ROFR, foreclosure, etc. at the current sold out properties and add them into this "new DVC" as well, but that isn't quite as settled among the community.

 

[tidefan]

Not to add a layer of complexity on this, but...

A number of other Timeshare systems actively sought (I know that Diamond Resorts did this, for instance) existing members to convert their memberships into the Trust. I wonder if Disney would do that?

 

[Cfabar1]

Not to add a layer of complexity on this, but...

A number of other Timeshare systems actively sought (I know that Diamond Resorts did this, for instance) existing members to convert their memberships into the Trust. I wonder if Disney would do that?

I can't imagine they wouldn't.... this is the best thing DVC could do from their perspective... and owners would be making a HUGE mistake to convert their fixed deeds to a trust.

 

[aceshigh73]

Not to add a layer of complexity on this, but...

A number of other Timeshare systems actively sought (I know that Diamond Resorts did this, for instance) existing members to convert their memberships into the Trust. I wonder if Disney would do that?

Same with Marriott Vacation Club. We bought back in 2003, and then a number of years ago, converted our week into a points system option. Im pretty sure (not 100%) that any newer direct MVC buyers buy into the trust as points.

 

[TheDailyMoo]

We don't know yet but the premise, if Disney goes this way would be something like this:

Legacy DVC - You buy a deed to a specific resort and an ownership interest. Say you own .00012% of Copper Creek until the resort expires in 2068. You get 11 months booking at this resort advantage, and can trade into other resorts in the BVTC that you are eligible to trade into at 7 months. You pay Annual Dues/Maintenance Fees that maintain and fund the operations of your specific resort and your ownership interest.

New DVC - You buy the right to use a certain number of points that are held "in trust" for you to access annually. All the points available to owners are pooled together, and able to be used. You do not have a "deed", nor do you "own" anything other than the right to access these points. You continue to pay annual dues/maintenance fees to offset the cost of maintaining all the points/resorts available in the program, averaged out by the needs of the organization. Most likely, this would be for new resorts/parts of resorts that are undeclared. (At the moment, imagine this to be Cabins, Poly 2 potentially, the undeclared parts of VDH, and RIV.). Others speculate that it may be possible for Disney to acquire points through ROFR, foreclosure, etc. at the current sold out properties and add them into this "new DVC" as well, but that isn't quite as settled among the community.

So this would be Disney's version of a do over...blowing it all up and starting again...only the blowing up happens slowly until 2068 or so and the new DVC happens concurrently?

And I understand the trust system but how would that work with everyone clamoring to get the best rooms at the best resort at the best times of the year?

 

[aceshigh73]

We don't know yet but the premise, if Disney goes this way would be something like this:

Legacy DVC - You buy a deed to a specific resort and an ownership interest. Say you own .00012% of Copper Creek until the resort expires in 2068. You get 11 months booking at this resort advantage, and can trade into other resorts in the BVTC that you are eligible to trade into at 7 months. You pay Annual Dues/Maintenance Fees that maintain and fund the operations of your specific resort and your ownership interest.

New DVC - You buy the right to use a certain number of points that are held "in trust" for you to access annually. All the points available to owners are pooled together, and able to be used. You do not have a "deed", nor do you "own" anything other than the right to access these points. You continue to pay annual dues/maintenance fees to offset the cost of maintaining all the points/resorts available in the program, averaged out by the needs of the organization. Most likely, this would be for new resorts/parts of resorts that are undeclared. (At the moment, imagine this to be Cabins, Poly 2 potentially, the undeclared parts of VDH, and RIV.). Others speculate that it may be possible for Disney to acquire points through ROFR, foreclosure, etc. at the current sold out properties and add them into this "new DVC" as well, but that isn't quite as settled among the community.

This is pure spitballing here, but my wife and I were discussing having a "Moderate" DVC where it wasnt a 1-for-1 with the current Deluxe DVC properties.... I wonder if this would be what starts it.... Having Moderate resorts only in a Trust system (Coronado, Port Orleans, CBR, Cabins?).

 

[TheDailyMoo]

This is pure spitballing here, but my wife and I were discussing having a "Moderate" DVC where it wasnt a 1-for-1 with the current Deluxe DVC properties.... I wonder if this would be what starts it.... Having Moderate resorts only in a Trust system (Coronado, Port Orleans, CBR, Cabins?).

Now something like that I would absolutely buy into in addition to the legacy resale points I have. Look at me already calling my points legacy...

But seriously I've always held a soft spot for POR. Something about that resort always appeals to my sense of quaintness and nostalgia. They could take just the mansion buildings and make them DVC and leave the Bayou cash or vice versa.

 

[JGINPL]

This is pure spitballing here, but my wife and I were discussing having a "Moderate" DVC where it wasnt a 1-for-1 with the current Deluxe DVC properties.... I wonder if this would be what starts it.... Having Moderate resorts only in a Trust system (Coronado, Port Orleans, CBR, Cabins?).

This would be an interesting idea. I really enjoy my home resorts and booking at 11 months. I hope this would affect any of that. I will be keeping an eye on this thread going forward.

 

[Tatebeck]

I could see something like this happening, they could just declare and "sell" the contracts/rooms at new resorts that aren't selling, and ROFR their way back into older resorts. My guess is that there would be a list of resorts that have plenty of points (New resorts, OKW, HHI, VB, SSR, etc) that they can book at any year, then for the resorts with limited points that they have to get back slowly with ROFR or expirations, they could just limit 1 booking at one of those resorts every X number of years for each member, so the same members can't game the system for the hard to book resorts with limited points in the trust.

I just wonder what effects this would have on current owners booking availability. Or if they would start offering swaps. IE Give us your 100 pts back and we'll give you 110 points in the trust or something to get points back faster without costing themselves money up front. So many options.

 

[pangyal]

Would people who bought into the trust points own those in perpetuity? I’m curious as to how expiring ground leases would be handled or whether that would stop being an issue since no real estate interest would be changing hands?

 

[kneely58]

Article IV, Section 2 of the Amended and Restated Articles of Incorporation of Palmetto Trust Association, Inc. states that ownership in the Trust Association would be deeded. What would they be deeding to each owner of points if it's the type of trust we are talking about here?

 

[Tatebeck]

Would people who bought into the trust points own those in perpetuity? I’m curious as to how expiring ground leases would be handled or whether that would stop being an issue since no real estate interest would be changing hands?

Once they expire, they just revert to Disney. More points for the trust! lol

Article IV, Section 2 of the Amended and Restated Articles of Incorporation of Palmetto Trust Association, Inc. states that ownership in the Trust Association would be deeded. What would they be deeding to each owner of points if it's the type of trust we are talking about here?

I don't think the buyers would be owners of anything. The trust would own everything and just set up long term/perpetual point rental agreement possibly?