The Simpson Bay Renovation Project calls for the complete renovation of the 337 units in the original part of the resort (formerly known as Pelican Resort Club) over a four-year period. Each year, approximately 84 units will be renovated, beginning in 2012 with the Allamanda, Croton, Caladium and Dieffenbachia buildings. Among other improvements, each unit will receive:
- New high-grade appliances
- Granite countertops
- New premium tile throughout the unit
- New furniture
- New high-grade cabinets
- New televisions
- Upgraded air conditioning, including extension to non-air conditioned areas
- New paint, finishing and related repairs
The effect of the Simpson Bay Renovation Project will be threefold. First and most importantly, members will enjoy a much better vacation experience in a unit they will be proud to share with family and friends. Second, the renovation will enhance the value of members' units far beyond the renovation cost (the units are currently deteriorating, with nearly 10% not suitable for occupancy). The resort anticipates that interval values will increase significantly over their current market value following renovation of the resort. Finally, renovation will enhance the exchange power of members' intervals, providing them with an opportunity to exchange for other five-star intervals around the globe.
Annual Fee Increases, Budget Recovery Special Assessment and Renovation Costs
Based on recommendations from VerSant – an independent accounting firm hired to assess the resort's prospective finances – Simpson Bay Resort & Marina has implemented a 10% annual fee increase in both 2012 and 2013. This previously announced increase is designed to bring fees in line with the actual costs of a streamlined and efficient resort operation. Previously, annual fees were kept artificially low, depriving the resort of required operating capital.
The annual fee increase will not cover any current renovation costs, but is projected to eliminate the need for maintenance-related special assessments in the future, as the resort will finally collect enough capital to operate and perform routine maintenance. The fee increase should also eliminate the need to borrow every year to keep the resort open. Members have already received a bill for their annual fees reflecting the 10% increase for 2012.
Simpson Bay Resort has also previously announced a Budget Recovery Special Assessment for 2012 in order to recover approximately $2.7 million in annual fees intended for use in 2011 but actually used by the previous owner to cover 2010 shortfalls. The Special Assessment will be used exclusively for budget recovery and required emergency repairs, such as roof replacement for all original resort buildings and emergency elevator replacement. The resort owner has assumed responsibility for approximately $1.5 million of the total $5 million assessment. Members have also recently received a bill for this assessment.
As the annual fee increases and Budget Recovery Special Assessment will not raise enough money to pay for renovation of 337 units, the owner company and members will share the cost of renovations. The renovation cost is estimated to average $1,300 per interval; however, the actual cost will vary by the size and type of the unit. The owner company will be responsible for the renovation cost of each un-owned interval and will pay the same rate as members.
Members will only be asked to cover the renovation cost for their intervals in the year their unit is scheduled for renovation. Members in the newer Villas building (formerly known as the Pelican Marina Residences) will not be asked to contribute to the Simpson Bay Renovation Project as their intervals are in new units that already enjoy five-star status.
Renovation expenses can be paid all at once, financed over a six-month period at 6% interest or deferred for a year or more by relocating to a unit of equal or lesser value scheduled for later renovation.
The Simpson Bay Resort revitalization project promises to usher in a new and exciting era for the resort. The resort will enjoy an enhanced image, greater stability, superior exchange power and increased financial value well into the future.
Details of the revitalization project will be released as they are finalized. Member's can contact Simpson Bay Resort & Marina with any questions or comments at 800-550-7088 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..
