This past week owners at Disney’s Old Key West Resort began receiving information from DVC regarding the rumored contract extensions.
The mailing included a cover letter from Jim Lewis along with a single page “Notice of 2007 Special Meeting of the Board of Directors and Members of Disney Vacation Club Condominium Association.” This meeting notice included the resolution that they intend to pass at the special meetings scheduled for 2pm on Monday, September 24th at Disney’s Contemporary Resort Convention Center. Portions of the Notice read as follows:
RESOLVED: That the Association is hereby authorized to enter into an agreement with DVD in which DVD will agree to extend the Ground Lease until January 31, 2057, thereby extending the Disney Vacation Club Condominium, the Vacation Ownership Plan and each Member’s Ownership Interest in the Disney Vacation Club Condominium, an additional 15 years to January 31, 2057, in exchange for the payment by the Association to DVD of $25.00 per vacation point (the “Extension Fee”);
FURTHER RESOLVED: That the Association is hereby authorized to, and shall levy and assess, against each Member of the Association a special assessment in the amount of $25.00 per Vacation Point for payment of the Extension Fee. The special assessment and collection of this assessment shall be governed in all respects by the Association’s process for collection of annual assessments. The special assessment shall be a personal obligation of each Member and the Association shall have a lien on each Member’s Ownership Interest to secure payment of the special assessment. The Association shall promptly mail special assessment notices to each Member and the special assessments shall be due and payable on or before February 29, 2008;
FURTHER RESOLVED: That for those members of the Association who desire not to extend their Ownership Interest beyond January 31, 2042, they may satisfy their obligation to pay the special assessment by executing a deed (with the formalities required by Florida law) conveying to DVD their Ownership Interest for the period January 31, 2042, to January 31, 2057.
The above resolutions effectively describe how all OKW deeds are being extended through January 31, 2057. All owners will be assessed a fee of $25 per point in return for the extension, unless they refuse the extension. Those who refuse the extension will likely be required to complete paperwork which expressly transfers ownership of the 2043 through 2057 points to DVD (Disney Vacation Development.)
Note that there has been no official mention of the rumored $15 price point for extending contracts.
We will keep an eye on further developments regarding the OKW contract extensions and share details as they emerge.