MARRIOTT RIPPING OFF ARUBA OCEAN CLUB OWNERS

To all Marriott Ocean Club owners. I am not sure if you are aware but you are about to be hit with 2 assessments that could be $1,000 for each of the next 2 years. The reason is Marriott has to completely replace the roof and some of the supports due to poor construction.

How many of you realize that the building was bought by Marriott after it was partially completed? Of course you were never told that. Did you ever wonder why when ever it rained the building flooded? It seems there were problems to the roof from day one and Marriott ignored the problems until they could get the owners to pay a portion of the repairs. Marriott is requiring the Owners to pay a major portion of the repairs. So therefore the roof repair and regular refurbishing projects will costs us additional funds over our already high maintenance.

I have been in touch with the board and have gotten the details of what is taking place. A board member said to me if you find a lawyer who would like to take on a class action suit there would be many people who would be willing to be part of the suit.

I have been in touch with Marriott but they have refused to give me a satisfactory response except to agree to what I have mentioned here.

If you are unhappy about this you should contact customer care. Maybe if enough people speak up Marriott will do the right thing.

Let me know if you are interested in pursuing a class action suit against Marriott.

I honestly don't understand some developers .... in this time of major economic stress/crisis when many people will have a hard time even paying their yearly maintenance fees (much less a mortgage on a Marriott timeshare), Marriott comes along with a $2000 special assessment for roof repair .... evidently there are zero reserves at this resort ... who's handling the money I would ask?

If I were Marriott, I would patch the roof until better economic times come along.

All this on top of most Marriott resorts' tremendous rise in maintenance fees this year. When will it end, when people have to be rich to own a timeshare at all?

There should not be any charge to owners for this. THey need to repair the roof and structure at their cost due to the appropriate work when they bought the building. They tried to get away cheap and it has back fired on them.

This matter may very well be one of legitimate concern and interest to Aruba Marriott owners, but why was the original post ever placed in the "Timeshare Exchanges" forum in the first place --- particularly since a duplicate was posted in another (more appropriate topic) forum, specifically "Timeshare Companies"???

I have valuable information and extensive well documented proof regarding the existence of very toxic extremely poluted environment and many undesclosed information in connection with construction fraud at the Marriott Aruba Ocean Club.If you are interested let me know and I will give you my e mail address and telephone number.

I am interested. Drop me a note at live4sonnj@aol.com

A class action suit sounds like a great idea. Please be aware a substantial protion of the special assesment is going to a major renovation of the units and not just for the roof. There are also several other issues that should be included in that lawsuit that the board is currently investigating including rental of common space (the Marriott not passing the revenue on to our Association) and taking a portion of the special assessment off the top as a management fees (the audacity of making us pay for the faulty roof and then charging a management fee while our board hires someone else to oversee the roof repairs).

Bruce,

I agree with you. Marriott has taken advantage of Ocean Club owners for years. How much do you think we have spent since the place opened for the repairs due to leaks and floods.

Drop me an email and i will include you on the mailing list.

Here is the lame letter from the president. I will address the points in this letter on the next post. Sure does sound like he works for Marriott. And he dosent even address the forcing out of Allan as president.

November 12, 2008 Dear Marriott’s Aruba Ocean Club Owner: Your Board of Directors just returned from the Annual Fall Board of Directors and Annual Meetings in Aruba; I would like to take this opportunity to update you on the status of a number of initiatives that affect us all. In addition to this communication, Resort Management will be sending a separate communication further detailing all the exciting changes taking place on the property. First, we are very pleased to have a new Aruba Ocean Club General Manager on the team, solely dedicated to our property. Corey Guest has been in the hospitality industry for over 20 years, working for Hyatt Hotels, PepsiCo, Wyndham Hotels and for the last five years, Marriott International. What is more important is that most of the past 18 years, Corey has lived in Aruba and is very familiar with the island and changes that have occurred. Corey has impressed us all with his attention to detail and “can-do” attitude - but most important he has been very visible, accessible and responsive to the Owners. As you will see further on in this letter, Corey and his staff have a daunting task ahead given the sheer number and scope of the projects they have already started and will continue to manage over the next 12 months. Undoubtedly you have read or heard about the challenges that we have faced with our roof over the past few years. I am pleased to report that a total roof replacement is well underway and should be completed by mid-December. Marriott Vacation Club International® contracted with a nationally recognized and respected roof engineer/expert to advise us on the replacement. Independently, the Board also contracted with structural and mechanical engineers as well as an environmental expert to cross-check and verify that the installation, condition of existing structure and any environmental concerns meet stringent approval standards. First, the roof is being replaced in its entirety using an industry standard design that has been modified for Aruba’s harsh sun and wind conditions. Second, we are pleased to report that there is no structural damage and while traces of water intrusion were found in areas that had sustained some water damage, it is easily remediated. There has been some erroneous information being circulated about the roof that should be clarified. First, the original roof was not defective; the building itself was constructed in the early to mid-90’s; later purchased by Marriott Vacation Club International and then completed and opened as the Aruba Ocean Club in 1999. The original roof is now past its useful life given the extreme conditions in Aruba; last year Marriott Vacation Club International agreed with the Board to pay a substantial portion or percentage of the cost to replace the roof based on the period of time prior when it was turned over to the Association. Recently the island of Aruba experienced some severe weather and power outages that negatively affected all businesses and homes. Most of us in the States heard very little, if anything at all, about Hurricane Omar which developed over a period of 36 hours just slightly to the north of Aruba during mid-October. Once developed the hurricane then took a north-easterly course and quickly passed by the Virgin Islands and then into the Atlantic where is dissipated. While it did not directly strike Aruba, heavy rains and tropical storm force winds for a period of a couple days caused more damage to the island than at any time since Hurricane Lenny in 1999. The Ocean Club, like many other properties on the island, suffered beach erosion, landscaping and water damage on the west side facing ocean front units. Most of the repairs are complete but the unexpected cost of repairs not covered by our insurance deductible must be paid by the Association. Everyone worked around the clock to re-establish services, clean up the water intrusion and remove the massive amounts of seaweed from the beach. On a side note, I would like to thank the many Owners who were in Aruba during Hurricane Omar for your assistance that helped the staff with beach clean-up. While no one can control ‘mother nature’, the staff did a tremendous job getting the facility back into working order as quickly as possible. The Board has been communicating with the Owners for the past several years regarding the anticipated 10-year renovation of the property. Let me assure you that we are extremely sensitive to the current economic conditions, but after walking through the entire property, we all agreed that our resort is showing very visible signs of its age and extremely heavy use (The Ocean Club averages over 94% occupancy year in and year out). For that reason, we are moving forward with the complete renovation of the property from the lobby to the hallways and on into each and every villa. Our goal is to get maximum value for every dollar spent to ensure that in the end we will all have a resort that we can be both comfortable in and proud of. The cost of this extensive renovation necessitates an assessment of the Owner. However, with the help of Marriott Vacation Club International we were able to split the assessment over a two year period. The first assessment will come in several weeks (with payment due in January) and will cover renovation expenses for 2009; the second assessment will come in 2010. Despite the fact that the Association will have collected only half the funds, the renovation will begin in July 2009 and should be complete prior to Thanksgiving. Marriott Vacation Club International is assisting us financially in two critical ways. The number of villas available to Owners during that period will not be reduced as villas that they control through exchange and/or rental will be used to offset the villas taken out of inventory during the renovation. Second, they are assisting us by basically advancing the second half of the funds needed for the project even though those funds will not be collected until five to six months following completion of the renovation. The Board is extremely appreciative for their cooperation in helping us accelerate the renovation, reducing our costs as Owners by over $ 1.5M and managing the renovation in such a way as not to inconvenience our Owners. This letter is the first communication of several; the next will be the management fall update of the resort followed by the annual billing which will include the first of two special assessments related to the upcoming renovation. The scope and cost of the renovation has been communicated in prior updates and the Board is still following the same strategy that has been laid out over the past couple of years. Aside from the renovation assessment, you will notice that your maintenance fee has increased from the prior year and the information regarding the factors necessitating the increase is included herein as well as in the operations update and the billing notice. After spending much time with the accounting staff, it is clear that the increase is driven almost entirely by inflation and the higher cost of electricity, water, labor and other goods and services on Aruba. As just one example, although our conservation efforts last year reduced electricity consumption by 5%, the cost of electricity on the island increased over 40%! Some of these increases are a result of higher oil prices but others are driven by a tight labor market and increased costs for shipping. I am honored and humbled to have been elected as President of the Association. We have a strong, dynamic and talented Board that has the experience and commitment to guide us through these issues. The challenges that lay ahead will demand the time and energy of the Board like no time in the past. However, our #1 priority will always be to make the right decisions for the right reasons and to be as efficient as possible as we allocate our funds for these projects. Our ultimate goal is to give all of us a resort that we can continue to enjoy and be proud of for many years to come. Sincerely, Frank Knox President Marriott Aruba Ocean Club Association

Ok I have broken this down in pieces and will lay out the facts that Frank failed to tell us.

"First, we are very pleased to have a new Aruba Ocean Club General Manager on the team, solely dedicated to our property."

With all the rising costs, why at this time did the board decide to take on the added expenses of a dedicated resource? We could have reduced some of the fee for a period of time by continuing to share resources.

“Undoubtedly you have read or heard about the challenges that we have faced with our roof over the past few years.“

Challenges for the past few years, come on Frank speak the truth, we have had problems since the Ocean Club opened. It has leaked since day one and we the owners have paid to continue to repair the building every time it leaks and floods.

“First, the original roof was not defective; the building itself was constructed in the early to mid-90’s; later purchased by Marriott Vacation Club International and then completed and opened as the Aruba Ocean Club in 1999.”

If the roof was not defective why has it leaked since day 1. Why didn’t Marriott reveal to the owners before buying that the building was not built by Marriott and that the structure was already 5 or more years old? Sounds like a lack of full disclosure.

“The Ocean Club, like many other properties on the island, suffered beach erosion, landscaping and water damage on the west side facing ocean front units. Most of the repairs are complete but the unexpected cost of repairs not covered by our insurance deductible must be paid by the Association.”

Why did the Surf Club not experience the same kind of damage as the Ocean Club. They have ocean front units as well. The reason is the Ocean club was not properly waterproofed thus 120 rooms were severely damaged. All due to Marriott not properly fixing up the building they bought.

“The scope and cost of the renovation has been communicated in prior updates and the Board is still following the same strategy that has been laid out over the past couple of years. Aside from the renovation assessment, you will notice that your maintenance fee has increased from the prior year and the information regarding the factors necessitating the increase is included herein as well as in the operations update and the billing notice.”

Frank, why have you not told everyone about the increase amount? You come across as it is a minimal increase, when you are increasing the fees by 35%.

“The challenges that lay ahead will demand the time and energy of the Board like no time in the past.”

Frank, the reason you have the challenges that are demanding your time and energy is your lack of openness to the owners. When Allan was president he was open with the owners and was more than willing to discuss what was going on. Since you the board and Marriott forced Allan out, you have kept everyone in the dark. Why not share with the owners that you voted Allan out versus just saying there is a new president? Why are you and the board hiding behind the Marriott apron strings? Why not let the owners decide if you should be president or if we want Allan as president?

The letter sent to the owners is a pro Marriott letter and not an honest letter to the owners. We as owners need to demand more openness and the right to see how much we have spent over 9 years due to Marriott’s lack of due diligence and responsibility in the state of the Ocean Club.

Why are we hearing only in the last few months that Marriott did not build the Ocean club from the ground up? Give is answers not the leis you put in the letter. Why is this letter not posted on the Aruba Ocean Club website?

Hi I have cut and pasted this link to an email and sent it off to some class action lawyers with previous experience with lawsuits for timeshare organizations. I have requested them to contact the poster if they are interested in taking on this suit.

Thank you. I would also forward this link to them

http://tugbbs.com/forums/showthread.php?p=602596&posted=1#post602596

Lot of info there

done

I would like additional information on this. dstutrud@aol.com

We Are Still Looking To Get Owners On The List To Recall The Board. Please Talk To Your Friends That Own Units And Have Them Send Me Thier Email Address And The Number Of Units They Own.

Thank You All

I am looking for a law firm that is interested in representing owners at DRI for different issues. Would you be willing to share the contact information of the law firms that you have found?

Laura

Laura,

ONce I find ones that are interested I will share with you.

mark

I just got an email from an owner who is in Aruba at this time. It seems there was a special board meeting held last Monday. This meeting was posted at the Ocean Club prior to the meeting. Why were the rest of the owners, who are not in Aruba, not notified of this meeting? How difficult would it have been to post it on the Ocean Club Website? According to Section 6.6 of the Governing Documents “All meetings of the Board of Directors, including special meetings in accordance with section 6.7, shall be open to all members. If the notice is posted only at the Ocean Club then all members have not been notified. Please let me know how this will be dealt with in the future to ensure all owners are aware of the meeting,

What was discussed in this meeting? When will we receive the minutes of this meeting and the general meeting? What is the board hiding from us? Are they trying to keep the owners from being informed or are they trying to hide information from us?

Unfortunately, I am not surprised by the actions of this board. Allan when he was president always kept the owners informed. What have we heard from the new board, nothing but a lame letter from Frank that has not addressed any of the owners issues. And now they don’t want to let owners know of special meetings that have an impact on our financial investments in Aruba.

The following letter has been sent earlier this week to the board of the Aruba Ocean Club and the Customer Care office of MVCI.

To all Board members,

I am sure you are all aware how I and other owners feel in regards to the outrageous fees you are trying to charge owners of the Ocean Club as well as your siding with Marriott on the costs of bringing the Ocean Club up to the standard it should have been when it was selling the units.

1) As for the increase in our annual fees. For the 1 bedroom units the increase amounts to 27%, this does not include the reserve fund fees. Based on the governing document you may increase the fees by 7.5% above the inflation rate, (which is an annualized 9.1%) without a vote by the owners. I am asking to know when that vote will occur, since you have exceeded the allowed percentage.

2) Marriott sold to all of us a defective building, it has leaked since day , due to a poor roof and lack of waterproofing of the building. Why is it now we are saying the roof needs to be replaced, when it should have been replaced prior to final construction? Why is Marriott not paying for this replacement since they did not fully disclose to the owners what they were buying? Why is Marriott refusing to pay for the entire roof?

3) Why have we the owners had to foot the bill since day 1 for all the repairs due to do the roof and lack of waterproofing of the building? Please provide to all of us a detail list of expenses the owners have incurred due to these issues.

4) Why is it the Ocean Club was the only building to sustain such extensive damage due to TS Omar? The Surf Club and hotel had no such damage.

5) You are representatives of the owners, yet you fail to respond to questions, emails and letters sent to you. This was not the way things were handled when Allan was President. Why are you not representing owners in the discussions with Marriott. I was at the owners meeting and there was a lack of respect to the owners and it was clear that it was a meeting supporting Marriott and not the owners.

6) Why have we not received fair payment for the space leased by Marriott and other vendors. Why does Marriott feel they do not have to pay a fair price for renting space in the Ocean Club. We the owners deserve to see the accounting of all payments by Marriott and the other vendors. Also a report showing how the revenues we are receiving compare to the average for other similar resorts.

7) Knowing we were having financial problems why would we increase our expenses by hiring a dedicated GM versus continuing to share with the Surf Club? This was not a fiscally responsible move and we should look to going back and utilizing a shared resource.

8) I am recommending that a group of owners work with the board to negotiate a fair and equitable agreement with Marriott for the roof costs, payment back to the Ocean Club for the repair work paid for by owners, and fair compensation for use of Ocean Club space.

I do believe that if the above items are addressed and resolved in an equitable way that the fees and assessments we are being asked to pay can and will be reduced.

I would hope we the owners will get the courtesy we deserve, having elected you to the board, with answers and actions to the questions listed above.

An owner of multiple units who is angry.

Mark