What happens to Old Key West afterr 2042? I own a 2057 contract.

[CarolynFH]

@Mouseforward its important to recognize that when the documents refer to a “unit,” they mean a Residential Unit as defined in Florida’s statutes regarding condominium associations (and possibly timeshare resorts, I’m not sure). DVC owners are deeded a percentage of that unit - they own that much of the physical building. I don’t know what the percentages look like at OKW, but I can tell you that our ownership at BWV is well less than 1% of each of the two RU our two 150-point contracts come from.

At OKW, each building is a separate Residential Unit, and there are probably thousands of owners of each building. If some of them own 2042 contracts and some own 2057, in 2042 the former percentage will revert to DVC but the percentage owned by 2057 contracts will remain with those owners. As Sandi says, DVC can’t add a unit (RU) to the trust unless they own the entire unit, so at OKW it means DVC can’t add an OKW building to the trust unless they own the entire building.

DVD specifically reserves the right to increase or decrease the size of a given Unit in itssole discretion prior to adding the phase in which the Unit is located to the Lake Buena Vista Resort.

This quote pertains to when OKW was in initial sales and inventory was being declared into the condominium association in phases. It means that DVD could have changed the size of a given RU before it was declared into (added to) the condo association - but not after it was added. So in 2042, DVC can’t put the 2042 percentage of a given RU into the trust and leave the 2057 percentage in the condo association, because that would change the size of the RU.

 

[Mouseforward]

@Mouseforward its important to recognize that when the documents refer to a “unit,” they mean a Residential Unit as defined in Florida’s statutes regarding condominium associations (and possibly timeshare resorts, I’m not sure). DVC owners are deeded a percentage of that unit - they own that much of the physical building. I don’t know what the percentages look like at OKW, but I can tell you that our ownership at BWV is well less than 1% of each of the two RU our two 150-point contracts come from.

At OKW, each building is a separate Residential Unit, and there are probably thousands of owners of each building. If some of them own 2042 contracts and some own 2057, in 2042 the former percentage will revert to DVC but the percentage owned by 2057 contracts will remain with those owners. As Sandi says, DVC can’t add a unit (RU) to the trust unless they own the entire unit, so at OKW it means DVC can’t add an OKW building to the trust unless they own the entire building.


This quote pertains to when OKW was in initial sales and inventory was being declared into the condominium association in phases. It means that DVD could have changed the size of a given RU before it was declared into (added to) the condo association - but not after it was added. So in 2042, DVC can’t put the 2042 percentage of a given RU into the trust and leave the 2057 percentage in the condo association, because that would change the size of the RU.

I’m well aware of how the units are constructed.

1. Can a trust buy a contract in DVC? Yes

2. In 2042 does DVC get back approx 75% of the contracts. Yes

3. Can DVC sell the 75% of the now 2057 contracts to Palmetto Trust or one like it? Yes

Once this happens what is stopping them from selling them as points in the trust ?

 

[Sandisw]

I’m well aware of how the units are constructed.

1. Can a trust buy a contract in DVC? Yes

2. In 2042 does DVC get back approx 75% of the contracts. Yes

3. Can DVC sell the 75% of the now 2057 contracts to Palmetto Trust or one like it? Yes

Once this happens what is stopping them from selling them as points in the trust ?

The Palemtoo Trust is not set up to buy anything so it can’t buy the OKW inventory from DVD.

It is a vehicle set up to hold inventory that DVD, the developer, owns and wants to sell under a RTU plan vs the way they have always sold it.

That seems to be the part you are missing. The CFW cabins are are not owned by the Palmetto Trust.

They are owned by DVD and will remain owned by them.

Any inventory added as a component site to the trust must be defined…and there would be no way for DVD to add rooms that are owned by others, regardless of how much of the resort they own.

As I mentioned, the same inventory can not be part of two associations. They can only be declared to one.

So, to move rooms to the trust, they need to remove them from OKW because they are declared already into that association.

 

[AstroBlasters]

What will happen to Old Key West between 2042 and 2057? I understand that 20-30% of the resort's members have contracts that expire in 2057, while the rest end in 2042. How will DVC manage the resort over the next 15 years? Will DVC make an attractive last-minute offer to encourage everyone to extend their contracts to 2057? Is that even legal? Could Disney automatically change the end date of all contracts to 2057? After the 2042 contracts expire, would Disney sell new contracts with a 15-year life at a reduced price? What will happen to maintenance costs during this period? We don't know what DVC will decide, but I would like to understand what Old Key West resort, looks like, My contact which expires in 2057.

No one knows and anything that people write is just a guess. The people who will make that decision are likely not even out of college yet…