Notice of Legal Action and key points raised by Presidents Newsletter

Notice of Legal Action and key points raised by Presidents Newsletter

 

We need to stress that the following comment in this month’s newsletter, “HRGR is just not suitable as a general holiday resort” is distasteful and really is no concern of the President or Committee on how individual owners decide to manage their personal investments. We strongly suggest that the President focuses on managing areas within his direct responsibility only, 

In addition, the following points also show we, as Sub Community Presidents and Owners are heading in a different direction to the President and Committee:

1.   Workers Compound and Golf Course

Owners are entitled to expect what was originally sold to them. The local authority land is, we are all now agreed, not approved to be used by any HRGR contractor.  It's clear from this month’s president newsletter that the Committee are continuing supporting the contractor’s illegal use of the area currently defined as the workers compound and the Committee have no intention of resolving this matter to the benefit of its fellow elected representatives and owners. Furthermore, Nigel Bradbury's message could incite angst against owners in phase 7 for seeking a resolution to an issue which materially affects the market valuation of their properties.

Accordingly:

• Any screen existing or improved would be pointless.
•  We will continue to seek legal address once the one months notice is up in two weeks time unless the Committee informs their gardeners employed under contract to HRGR to vacate this area. This will also mean that we will have to name and take proceedings against the HRGR President and individual Committee members as they are the responsible owners in charge of the Community and service providers.
•  As mentioned above the Committee have been fully aware of these issues and ongoing debates however we are legally informed that we also now need to give you, as our Phase President, formal and legal notice, so that you can take this personally to the President and Committee at next weeks Committee meeting. This is hereby given  and we hereby give 14 days notice that we demand that your contractors using the land authority land on phase 7 relocate to other locations by 28^th August 2013. Failure to comply with this request will mean that we will seek a court injunction naming and preventing the President, individual Committee members and any contractors engaged by HRGR from having access to this site or using this site for reasons other than those previously approved by the local authority.

 

For the gol company the formal Notice has been duly served. If the golf course closes then we see this as a long term benefit to the resort as the IRM bankruptcy will result in a fire-sale of the golf course assets with valuations probably at give away levels.  We have estimated the operating costs of the golf course at 336K euros which equates to 200 euros per apartment per year with no revenue expectation.

Our proposal would be to charge each owner a yearly fee of less than 200 euros and each owner would be entitled to special golf rates that would be significantly lower than the current tariffs.  In addition,each owner would be given special rates for their renters and friends using the resort. There would also be public membership at realistic competitive pricing.
At least two of our Sub Community Presidents as well as other owners are personally prepared to set up this operation as really it is a no brainer strategic solution.

If this purchase were to go ahead at these rates then we are very confident that a significant majority of owners would concur with the purchase strategy.  A significant number of our golfers have also informed us that the new climate would also drive additional revenues for the course thereby creating a lucrative cashflow stream for the community.

This would also drive key economies of scale by having one set of contractors including gardeners,  massively reduced maintenance for the course. allowing the community access to the lakes and eliminating the current no- mans land between the community and IRM.

2.   Debtors and Polaris Debts

The general feedback on what has been said in this month’s Resort Newsletter is what on earth is Nigel doing?

Does the Committee really want to define who owners rent their properties to? What happens when parents bring put their teenager children’s and friends, are these now looked down upon?

Surely fewer rentals will mean more debtors?

For Polaris, owners are outraged that the President and Committee are not following the defined debtor’s policy.  It is inexcusable that the Committee is prepared to force foreclosure of individual owner’s assets and at the same time are not driving the same process for its biggest debtor, Polaris.

Nigel Bradbury should be giving the community of owner’s options with facts and figures (costs) on pursuing Polaris for their debt. His newsletter is woolly at best and sounds more like the mad rants of a dictator.

In addition, as this approach affects the long term viability of the resort and is a significant material change from the approved policy, then it should be voted on by all owners.

 

Accordingly, as we operate an agreed separate debtor’s process to the majority of the community, then we will take actions to the next steps in order to recover our sub community fees expected from Polaris. If Resortalia are unable/unwilling to follow this direction, then we will arrange for EGM’s to be called for in order to remove them officially and appoint administrators that will follow the Sub Community Presidents direction.

3.   Costs

We have for a considerable period stressed that costs for the resort are not in keeping with market rates and conditions. In addition, the lack of basis financial information to owners is disgraceful and needs actioning immediately.

We again call for the quarterly cash burn rate for the last 2 quarters and the next 10 quarters outlook.

4.   Communications

When you were Resort President then issues like the ones identified in this correspondence could be discussed with hopefully mutual results produced for the benefit of all. We believe this is no longerpossible with the current Resort President and matters need to change quickly or we will need to look for additional regime change.

5.   Health & Safety

The Sports area has been clearly shown to be a H&S risk which is why it was announced this week to close this facility.

We hope the Committee reviews the H&S policy and issues an update in this month’s committee meeting to ensure compliance throughout the resort.

 

 

  6.  Planning

We do really need to understand the cost implications of any new changes as these will not be appreciated by owners if the changes are too complex, intrusive or costly.

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