bob ryan rpt 2004

PelicanNews

CHAIRMAN’S REPORT (Bob Ryan) – DECEMBER 7, 2004

Introduction

· Extend warm welcome to all owners, guests, Board Members, Royal Resorts Management, etc.

· Acknowledge husbands and wives of Board Members.

· Acknowledge Board members leaving the Board and Resort Manager Angel Estrada, and welcome new Resort Manager Luis Cabrera.

· A little refresher course in the history of Pelican Resort is needed. If we don’t learn from the past, we are doomed to repeat it.

· Mission Statement

- Protect our Collective investments
- Return Pelican Resort to Five Star / Gold Crown Status
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· In 1995 we had the Gonzcy scam and the Ad Hoc Board.

· June 1996, Five (5) Board Members were elected and conference called the first meeting.

· July 1996, the newly elected Board agreed to purchase Pelican Resort for $7.8 million.

· August 1996, the Board took over the day-to-day management of Pelican Resort.

· Billy Folly files for bankruptcy and the Trustees take over.

· On August 1, 1996, a letter was sent to owners asking for $9,700,000 for a Supplemental Maintenance Fee that was needed to purchase and run Pelican Resort and restore hurricane damaged property.

· October 1996, Letter of Intent with the Trustees is signed to take over Pelican Resort.

· Over next several months the Board interviews management companies to run Pelican.

· January 1, 1997, the Hollywood Store pulls the plug on Pelican creating a fiasco.

· January 1997, Keith Trowbridge is hired as a consultant for three (3) months. This did not work out.

· January 1997, Board approves of five (5) in-house managers to run the Resort.

· January 31, 1997, a deal is made with the Receivers to purchase property - $6.5 million mortgage. One (1) million down and one (1) million credit for operating the Resort. The total cost being $8.5 million.

· February 1997, ISCO stepped in to help us collect maintenance fees and supplemental fees.

For the next several months the Board members and the management team ran Pelican Resort. The Board felt we needed an outside management group that had experience in the timeshare business to take over the day-to-day running of the Resort.

From July 7, 1997 – July 11, 1997, Shaun Thompson, Len Matsunaga, our New York attorney, and I went to Cancun to perform due diligence on the Royal Resorts Group and their operations.

After a most favorable visit, on August 1, 1997, the Board initiated a 3 year contract with the Royal Resorts Group.

Subsequent to that date, a new management, marketing and member service agreement was signed by your Board and the Royal Resorts Group for ten (10) years, effective 11/01/2000.

If you check the dates on the contracts, you will see a lapse in the old contract versus the new contract. Royal Resorts Group ran the operations on a good faith basis until the new contract could be executed by both parties.

A lot has happened in this timeframe, but it is important to point out that Royal Resorts Group has had a positive influence on the success of the Pelican Resort. We have had 14 Board members serving you, the owners, since 1996, and yet the two constants we have are the employees and the Royal Resorts Group. The rest is history!

To those internet critics who are quick to judge and criticize and who create confusion by disseminating incorrect information, I say, “verify your facts”. We are going to respond to those critics with the facts.

As a final point here are the amounts owners have spent on Board expenses:

- Legal expenses $113.14 per owner for eight years, or $14.14 a year.

- Board expenses $31.39 per owner for eight years, or $3.92 a year.

Send mail to Judy@navnet.net with questions or comments about this web site.

Design - Roy Martin @ roymartininc@yahoo.ca