Rising fees at Horseshoe Resort have
timeshare owners accusing the resort's management of trying to force them out.
The increase has resulted in 792 empty
timeshare weeks for the 2011 year. Skyline International Developmenti s now asking current
timeshare holders to pay for those losses before the building is forced to close.
"This is our vacation property and we feel that it is getting taken away by a big corporation," 10-year
timeshare holder, Leah Connor said on Saturday. "Vacations are supposed to be all positive and happy. This is really taking away from that."
Skyline purchased the resort in 2008 for a reported $37 million.
Since then, those who hold leases with The Lodges
timeshare saw their per
timeshare week maintenance fees go from $435 in 2009 to $709 in 2010, rising to $1,108 in 2011.
The Lodges is comprised of 40 units, with two bedrooms each, located at the base of the ski hill.
More than 200
timeshare holders attended a special meeting on Saturday at Horseshoe Resort to discuss the situation.
"I think it's totally unacceptable. It's too much," said
timeshare holder Marge McCauley. "Many
timeshare holders are retirement people on fixed incomes. Where is that money supposed to come from? I'm very sad by the whole thing."
McCauley, of Brampton, has owned one week in July since 1982 when The Lodges first opened.
"There seems to be a lot of mistrust as to what's going on," she said.
Peter Cowley, resort general manager, explained the increased maintenance fee comes from a newly instated refurbishment fund to update the building, minimum wage increasing and lawyer fees related to a lawsuit.
The HST has also resulted in a $96 per
timeshare week increase. In addition to the increased maintenance fees, Skyline is asking for $913 per
timeshare week from the 933
timeshare holders in good standing.
When the 2011 budget was created, it was calculated based on having 1,725
timeshare holders dividing the maintenance, refurbishment and the
timeshare owner's legal fee, Kevin Toth, president of Skyline Hotel and Resorts, stated in a letter to the
timeshare holders dated March 23, 2011.
The cost was determined to be $1,108 per
timeshare week.
With 792
timeshare holders deciding not to use their weeks this year due to the increased fees, the 2011 fees had to be reassessed, Toth stated in the letter.
The reassessment required an additional $913 for each
timeshare week.
The Lodges costs nearly $1.3 million each year to operate.
Because 71.5% of the total budget is fixed fees, all 2011 maintenance fees will be depleted by June 17 if the additional $913 is not paid, Toth wrote.
Without the reassessment fees, Skyline, as the property manager, will have no funds to pay The Lodge's expenses.
"Without the funds, the property manager will be unable to provide any services or maintain the building, effectively being forced to shut down the Lodges," Toth wrote.
In 2009, the
timeshare holders took out a class proceedings act on Horseshoe Resort.The suit resulted in a settlement of how The Lodges was to be operated.
According to Skyline, the document says current
timeshare holders must divide up the maintenance costs.
Timeshare holders say this is being misinterpreted.
"I don't think the judge meant for the last person holding the bag to be paying for the whole building," said former
timeshare committee member, Kristin McKenzie.
McKenzie would like to see the settlement go back to the judge to clarify the decision.
Timeshare holders also accused Horseshoe Resort of not attempting to find new
timeshare holders.
Cowley says this is not the case.
The information is on the resort's website, was sent out on its mailing list and was put in every single hotel and
timeshare room.
"We did sell some," Cowley said. "We got a couple, maybe a dozen."
There have been "hours and hours" of discussion on how to sell more weeks, Cowley said.
When asked by The Packet whether Skyline had a plan to force
timeshare holders out, Cowley responded that The Lodges building is in the resort's master plan.
When Skyline purchased Horseshoe it spent $1 million developing a "massive" master plan.
The plan is to make Horseshoe Resort into a miniature Blue Mountain, Cowley said.
The Lodges building is included in that plan alongside a replica which would sit behind it.
"The feeling is we want to rip it down," Cowley said. "It's a big ass concrete building. To tear that thing down and build it again would be nuts."
However, "the master plan doesn't go into the detail of who's in the building," Cowley said.
Timeshare holders are a boost to Horseshoe.
"Kicking them out puts us in a worse place," Cowley said. "It's in our best interest to keep that thing rocking and rolling."
Cowley explained that during slow months of the year when the resort "can't even give away hotel rooms" the
timeshare owners keep the resort open.
"Having that building full all-year-round allows a revenue flow for activities in the spa and the restaurants. If The Lodges was full of people we would have more people employed."
Toth told the
timeshare holders that Skyline will be able to keep The Lodges open with current funding until September. Three months longer than he previously stated in the letter.
No definitive decisions were made at the meeting. The new
timeshare committee, named on Saturday, will be speaking with Skyline further on the concerns.