I went to the DVC Special Meeting

WebmasterJohn

Genius
Administrator
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
 

stenogoddess

DIS Veteran
Joined
Aug 11, 2005
John: Thanks so much for posting this. I'm not an OKW owner, but am at Wilderness. I am, however, in the legal community and was very interested to hear more about this. I'm glad the lien issue was cleared up as I did not like the way that sounded at all.

Again, thanks for your hard work and for following up on this. Y'all do a great job for us down there in Orlando.
 

DeeDeeDis

DIS Veteran
Joined
Sep 27, 2002
Thank you John I greatly appreciate the time and effort you put into finding out this information for us all.

I dont own at OKW (own at BC & BW) but am hopeful they will also offer this extension to both of those properties or at the very least BW.

have a wonderful evening and i look forward to your next podcast. - First listened last week and am now hooked
 
  • mommyceratops

    <font color=red>Covets Clown School<br><font color
    Joined
    Jan 12, 2006
    John you are awesome! Thanks for attending and telling us about it!!
     

    ADP

    <marquee><font color=red>I'm a huggin' fool</marqu
    Joined
    Sep 2, 2006
    A BIG THANKS John! This is great information and we appreciate your time and effort posting it.
     

    SamIAm21

    Mickey's #1 Fan
    Joined
    Aug 2, 2005
    This is just another reason why the DISUnplugged is a phenomenal podcast. Everyone is right there in Orlando and can get the straight scoop from meetings, ask the right questions to the right people, and get the best information possible for the listeners.

    John, thanks for the time and attention you put into this matter.

    sidenote: I really wished they had given you some scoop about the Contemporary. But, I feel they won't say anything about that for a while. A lot of people aren't crazy about Saratoga Springs or AK Villas and I think most of it has to do with their geographic locations, not the actual properties themselves. If Disney were to mention the Contemporary, many people like myself, would wait and then they'd be stuck with many units at SS and AKV.
     
  • dianeschlicht

    <font color=blue>DVC-Trivia Contest, Apr-2006: Hon
    Joined
    Nov 22, 2000
    Thanks for a great update! We still wont be taking DVC up on the offer to extend, but at least it looks like we don't have to pay it if we don't want to.
     

    castleri

    DIS Veteran
    Joined
    Jul 29, 2000
    I stopped after the meeting and asked what would happen if a person for whatever reason does not accept or reject the offer- specifically about the use of their points. Jim Lewis and the attorney both said that they are trying to make it as easy as possible for people to do one or the other. If they do not accept or reject and do not respond to addtional calls, communications etc. they (DVC) will be able to restrict the use of the points for those contracts until a decision is made and completed. He said that they had originally hoped to be able to just set a time frame for a person to accept the offer and make payments either in total or financed and anyone who didn't would be considered as not accepting it. Due to the laws and it being a real estate transaction this was not possible.

    As to comments about the contemporary he said that after the Eagle PInes announcement and then it not being carried out they will not make any more announcements that could put them in the same situation.

    It was an interesting hour and I was happy to have had the chance to attend.
     

    MikeScott8

    SSR-Poly DVC Member
    Joined
    Oct 15, 2001
    Thanks for posting this. Did they give any indication IF they will be doing the same for the other resorts? We own VWL, BCV, and SSR and am wodnering if VWL and BCV will be extended in future.

    I know that they said this CURRENT offer is only for OKW, but was wondering if anything came up for the other resorts in future.

    Mike
     
  • Cool-Beans

    <marquee behavior=alternate><font color=deeppink>F
    Joined
    Apr 24, 2006
    You forgot to address the most important issue. Were refreshments served or not?????
     

    MAGICX2

    DIS Veteran
    Joined
    Aug 17, 2004
    I just returned from a trip to the World from 9/19-9/24. On our first night we took a Wishes fireworks cruise. Our skipper gave us a great tour around the 7 Seas Lagoon giving us all kinds of "unknown" facts. (Although I knew most of it already.) He did mention the construction at CR and said that it was to be a horseshoe shaped building and it had been confirmed via company memo to employees that it would be a DVC addition. Take that for what its worth.;)
     

    SamIAm21

    Mickey's #1 Fan
    Joined
    Aug 2, 2005
    I just returned from a trip to the World from 9/19-9/24. On our first night we took a Wishes fireworks cruise. Our skipper gave us a great tour around the 7 Seas Lagoon giving us all kinds of "unknown" facts. (Although I knew most of it already.) He did mention the construction at CR and said that it was to be a horseshoe shaped building and it had been confirmed via company memo to employees that it would be a DVC addition. Take that for what its worth.;)
    I know it's just castmember "chatter", but dang that's exciting. :dance3:
    Once that announcement is made, I'll be up at Disney's Doorway to Dreams outside Chicago so fast, it will make your head spin.
     

    castleri

    DIS Veteran
    Joined
    Jul 29, 2000
    You forgot to address the most important issue. Were refreshments served or not?????
    Also got a DVC luggage tag on the way out the door -

    Jim Lewis did say that the reason this is being done is that in the past member meetings 65% of members have indicated an interest in extending their memberships beyond 2042. I didn't know if he also mentiioned anything about surveys being done. I believe he said something to the effect that this was another example of "you asked and we listened". Have never been to any other DVC member meetings so don't know how they got these numbers. I did find it interesting that they also pointed out that the $15 per point for the additional 15 years is less that what the original preconstruction cost was per year in 1991 since then the price was $51 per point for the 50 years.
     


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