PelicanNews
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PelicanNews
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PELICAN RESORT CLUB T.A.P.R.C. 4th QUARTERLY MEETING 2007 December 4, 2007
The following people took part in the 4th Quarter Board Meeting. Board Members: Jeff Pray, Chairman; Jerry Luke, Treasurer; Judy Young, Secretary; and Tom Hoshall, Legal Liaison. From Royal Resorts were: Richard Corso, COO; Luis Cabrera, Resort Manager; and Rodrigo Gamboa, Caribbean Division Coordinator. Also taking part in the meeting, were Frank Roozen, Antillean counsel, and Len Matsunaga, US counsel. Also present was owner Joseph Costa. 1. FIP (Friendly Island Properties) Joseph Costa reported on his meeting, the previous day, with Richard Sutton and Richard Corso concerning the FIP votes. He inquired if there could be a date to give back the FIP votes. The language for the Marina Residence states that the date to provide voting rights to owners of the Marina Residence would be when the mortgage and/or any debts have been paid, approximately July 1, 2020. (Until the debts are paid to lenders on PMR, no one may cast votes from PMR, and they will never be controlled by anyone but the villa owner.) Note: On July 21, 2000, FIP bought all the unsold weeks at Pelican Resort and resold them but kept the voting rights. This enabled the Resort to have funds to stay open and for owners to still have the use of the Resort and not fall into bankruptcy again. The issue of the actual status of 558 unit weeks that were in default in 2006 was questioned. (Upon verification, there were only 471 FIP unit weeks in default). Mr. Costa questioned that if the units were in forced resale, do the units go back into the regular inventory with voting rights? During his meeting with the Board of Directors on Dec 4th, 2007 prior to the AGM, Mr. Costa asked if FIP is a member “not in good standing,” by not paying the fees on these foreclosed weeks. If this is the case the Resort has not collected the maintenance fees; this causes the Resort to borrow money to balance the budget. Joseph Costa told the Board during their meeting that he would bring this up at the AGM meeting the following day. Joseph Costa proposed to the Board that a statement be obtained from FIP. Mr. Costa asked that when there are no debts outstanding on the Marina Residence, in approximately July 2020, could the FIP units in forced resale be given voting rights when they revert (sold) to a new owner? Joseph Costa also asked that the current defaulted weeks would not be voted by FIP, once they are in forced resale. Mr. Coast asked that these weeks would go back to TAPRC Board and the Board would hold these votes. Joseph Costa stated that the goal is the recovery of all FIP votes. Next goal would be the gradual recovery of the FIP votes overtime. Mr. Costa proposed that all 4004 FIP votes of record that are in good standing when the debts are repaid (any date) go to the new purchaser of a foreclosed week or to the TAPRC Board. In response to Mr. Costa’s proposals, the Board was informed that Quantum, (the group lending funds to the Resort), was advised by their lawyers that the loans are given on the basis of Royal Resorts managing the Resort. PRC currently has approximately $US 30,000,000 in loans outstanding from Quantum. The Board has been informed that once all debts which rely on Royal as the management company are satisfied, FIP intends to initiate a process to turn over all 4,004 votes to the owners of record in good standing. Before Mr. Costa left the Board meeting, Richard Corso thanked Joseph Costa for taking the time and money to come to the Resort and express his views and ideas. 2. Marina Project Update The Marina Project was started on March 14th, 2006. The lobby and phase one will be ready by Week 50, 2007. The planned building is an 8-story structure, consisting of 83 apartments with 3 levels of central common facilities, being constructed at Pelican Resort on Pelican Key. Other facilities include a sea wall, swimming pool, parking facilities, mechanical rooms and retaining walls. a. Current Progress The effective date of the report was 10th October 2007. In building 1 the rough structure is complete for the building, and patching and plastering has been completed. Priming and painting of exterior walls is in progress and is about 85% complete. Finishing works are being finalized in building 1. Levels 1, 2 and 3 are at the handover stage. On level 4 repairs are being made to tiles. Levels 5 and 6 are at the inspection stage, and on level 7 the contractor is preparing for inspections. Electrical and plumbing are complete, and the sliding glass doors have been installed. Exterior railings have been completed on the front of building 1 only, and installation is 70% complete on the rear of this building. In building 3 (center section) the structure is 100% complete including the motor lobby. The entry and exit ramps are in progress. The finishes have commenced in building 3 with preparation of walls and partitions and ceiling framing in lobby, restaurant and gym levels. In building 2, the structure is 95% complete. The contractor is waiting for the client supplied floor tiles. Finishing is in progress with tiling on Level 0 to 4, and sheet-rock framing and boarding on levels 0 up to 6 are in progress. Sliding glass doors are installed on levels O, 1 and 2. The sea wall is complete, with a concrete retaining wall and rock revetment in front along the full length. The stub columns are in place along the full length. The retaining wall along the side of the main road is complete, and the Mechanical Room structure is complete. The pool base and walls are complete and pool bar structure is complete. The pool tiling is in progress. The concrete pool deck and landscape walkways are in progress. The air conditioning chiller units are on site and installed. The generator is on site. The sewage treatment plant structure is complete, and the pumps are on the island. No elevators have been installed in this section. b. Financial Status - Marina Residence- The Valuations are based on a Contract Value at 1st July 2006 and the original Contract amount of US$25,300,752.00. - There have been a number of additions and reductions to the original contract amount, amounting to a slight increase at present. - Certificate #15 indicates completed to date of US$20,448.618.80 including extra works. - Retention of 5% is now being applied and total payments to date amount to US$19,733,598.60 - The balance due on the Contract is US$ 7,359,141.90 - The work completed to date amounts 74% of the contract. 3. Marketing The Sales Management has appointed Jozef O’Neil interim sales manager. The Sotheby’s contract has been cancelled. The Sales Office plans to put the list of units for sale on the Pelicanresort.com web site. 3. Resort Insurance Insurance for the Pelican Marina is being negotiated. 4. Legal Update Our lawyer continues to negotiate with L’Aqualinge for a new contract. The Board was informed that the contract was finalized and signed in December 2007. 5. Concessions Report Los Gauchos Restaurant and The Pelican Bistro reports were submitted. Aqua Mania negotiations are on going. The contract Pool & Beach Bars DK&C, N.V. has been signed. Gym, pool bar and lobby bar: It has been proposed that the PRC buy outright these facilities from the PRC-Royal Resorts venture in order that the total net income derived would come exclusively to the Resort. A payment plan was discussed. This proposal was approved by the Board. The Old Doctor’s Office: will become a French Pastries and Coffee Shop and a contract was signed for 3 years, with no automatic renewal. Casino Hollywood: Parking agreement is under negotiation. 6. Financial Information The financial information for the Resort as of October 31, 2007 can be found on the pelicanresort.com web site in the Member’s Room. 7. PCIP We have not reached the US$4,000,000 in investments in this program but we are closing the gap. The Board discussed raising the cap for additional deposits by owners. 8. Operations Report “B” corridors are finished Beach Bar Sundeck is completed Old Lobby Remodeling finished Wireless Internet & Surveillance Cameras are in-process Original Lobby Remodeling finished Villa remodeling Program continuously in process 9. Turn Over Tax Refund Through the efforts of the management company, the Resort has requested that the government refund the turnover tax paid in the years 1999-2005. Since turnover tax is not due in the event that the room tax has been paid on the room revenues, the tax authorities agreed to this request. The tax authorities have the policy that refunds will be made as of the year 2001. The following negative assessments (refunds) in favor of PRC the Owner Company NV will be issued: 2001 ANG. 51.077,79 2002 ANG. 45.035,82 2003 ANG. 41.004,91 2004 ANG. 44.308,50 2005 ANG. 46.620,65 Total refund: ANG. 228.047,67 10. Other Issues It is proposed by Tom Hoshall and seconded by Judy Young that the Board appoint Jerry Luke to fill the Board one-year term position left vacant by Dan Menniti. Mr. Menniti resigned due to a conflict of interest. Mr. Menniti’s wife has signed a contract to run bar concessions at the Resort. Judy Young asked that Management look into a product called Stonehard for the floors in Pelican Resort buildings. During the AGM owner meeting on Tuesday morning Dec 4th, Henry Lesser suggested that the Board look into an owner being able to transfer from one type of unit to another type of unit for the transfer fee (approximately $150). If the units are not of equal value, the person transferring would pay the difference in value at the time of the transfer. A formal plan will be posted on the Internet early in 2008. An owner had questioned the Board about payment of the AMF (annual maintenance fee) over time instead of the due date of January 15th each year. The response is that Resort still needs the money up front at the moment, but would like to eventually like to be able to have owners pay 90 days before their time at the Resort. Another question at the owners meeting on December 4th to the Board was the availability of a wheel chair at the Resort. The Resort Management informed the Board that two wheel chairs have been ordered and should arrive before the end of December 2007. Meetings for 2008: Conference Call on April 23; Pelican Resort meeting on July 30; Conference Call Oct 16; and the AGM on December 2 & 3, 2008 Positions for 2008: Jeff Pray - Chairman; Tom Hoshall - Legal Liaison; Jerry Luke - Treasurer; Judy Young, Secretary; and Gene Albrecht. Judy Young, Secretary December 4, 2007
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