Club La Costa attempting to close Las Farolas resort

Started by terence_oldham@hotmail.co, January 16, 2011, 08:38:24

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Suebe

Quote from: rakuso66 on March 22, 2011, 15:27:26
i am also a member at las farolas and have also been asked to move my mebership to MDS. i bought the week at las farolas because i liked the resort and it was more quite than MDS.
i have been offered the oppotunity to give my timesahre back to club la costa but i must give it back by august.
if i do not return all paperwork back to club la costa by august i will have to pay another years maintainence fees.
i would rather wait to see what happens about the sale of las farolas and what else club la costa may offer as i am not willing to move my week to MDS or anywhere else.
what would be the best thing to do????
Rav


I am going to a committee meeting on Monday re Las Farolas so may be able to find out more about the future of LF.  The last figures I had showed that around 60% of the fixed week owners had agreed to transfer (remember that a lot of these are people who own to exchange not to go to LF) and some had given up their weeks, leaving around 40% who had not taken up the offer of a free transfer to MDS (including myself and the other elected committee member). 
I will post what I can later in week.

Sue B

Suebe


An update on the Las Farolas situation.  CLC Resorts Development Ltd, who now are responsible for a good many of the LF weeks, have called for an SGM which has been organised for mid-May.  It is to be held in Spain although myself and the other elected committee member asked that it be held in UK.  Information will be being sent through the post to all members about the resolutions that CLC Resorts have put together to be presented at the SGM.  Those that cannot attend can vote by proxy.

The remaining fixed week owners who have not accepted the transfer to Marina Del Sol, will be offered a tranfer to Las Farolas Royale, as there are sufficient apartments there to accommodate the remaining 250 fixed week owners during the year - more or less, this freeing up the LF units.  The letter will explain this in more detail.  The resolutions proposed by CLC Resorts give very little choice - accept the LFR transfer or you will be automatically transferred to MDS.  The majority of remaining owners do a lot of exchanging rather than use the resort themselves, so it might be quite an acceptable offer.  The resolution also contains clauses stating that owners will waive all rights to the LF apartments that they will be disposing of (ie selling we are told).  For those that want neither transfer there seems to be nothing else offered, although I have been assured that individual cases will be looked at.  Members will need to decide what they want to do after reading the information being sent out.  As CLC has a majority vote, it is more or less a done deal.  >:(

I will be going to the SGM and can act as a proxy if you so wish, or can take comments/questions to the meeting.  I have also been in touch with the trustees to discuss this whole issue, but they have no problems or concerns with what is being proposed.   We did have a discussion on how much fixed week owners might get from the proceeds of the sale of apartments if they were able to this.  I was quoted some recent examples when resorts closed where members were getting, after costs, tax etc, about 500 euros per week owned.  A friend of mine who owned at a resort where a decision was made to close got 1800 euros for two weeks (2-bedroom apartment).

Sue
Sue B

Suebe

Below is a short report I prepared whilst waiting for my plane at the airport the next day.  I am not sure when the official minutes of the SGM will be issued.

Las Farolas SGM at Club la Costa complex, Costa del Sol

The special General Meeting requested by Club la Costa Resorts (one of the two founder members) was held yesterday, Wednesday, 11 May. There were representatives of four memberships present, as well as the committee, a representative from the trustees and Richard Fletcher representing the Founder members and acting as their proxy.

It is no surprise to say that the two resolutions proposed were passed with the required percentage of the votes. Of the 250 members who had not taken the earlier offer of a transfer to one of the Marina del Sol resorts, only about 50 had sent in a proxy form to indicate how they wanted to vote. Of those, and with the votes of those present around 60% voted for Resolution 1 (to change to a floating week/apartment system) and around 66% voted for Resolution 2 (to accept transfer to Las Farolas Royale). The vote of Club la Costa Resorts, who once again have 'possession' of the majority of weeks at the resort, ensured that both resolutions were carried.
It was a sad days for those members who regularly use their LF weeks, who feel it is a 'home from home' and have been going there for a number of years - although many of the original purchasers have given up their weeks over the years (these are the ones that were then used to underpin the Vacation Club Points system and became part of their inventory - another big profit for CLC). Of the membership that remain a high percentage use their LF weeks to exchange and feel no allegiance to the resort at all and may never have ever stayed there.

A number of members had written in to CLC make their feelings known. There are some members who are angry at the proposals submitted by CLC Resorts and adamant that they don't want to move - they want compensation for their original purchase. Other members did not want to change to a floating week system although a floating apartment week system has been in operation since 2004. Some LFR members were not happy that LF owners were being offered a free transfer to LFR when they had originally paid a higher purchase price for their units. Other concerns were linked to the reduction of facilities at the LF complex and whether GC status would be retained at LFR.

Some members have actually arranged a transfer to CLC resorts in other countries. As elected committee members, Penny Onions and myself have been assured that those members who are not happy with what was proposed in the resolutions will be dealt with on an individual basis and CLC would hope to come to some kind of amicable joint agreement. Despite what was written in the resolutions, there seem to be more options on the table. We are still being told that Club la Costa want to try to do their best for every existing member. The trustees are responsible for the disposal of the LF apartments and will be overseeing this process. Whatever plans there are for LF apartments, they are being kept close to someone's chest. LF will continue to operate until October/November 2011 - although some members will have transferred already. Those members who did not respond to the letter sent out will be contacted by Member Services to see what they want to do.

Whilst at the resort, I did go round to see the apartments that are on offer for transfer. In the resort of Marina del Sol (at the top of the complex) townhouses were being offered. These are on two floors and are bigger than the LF apartments. One member who was going to attend the SGM went to see them and decided to transfer there and then. If anyone wants more information on these please get in touch.

The Gold Crown apartments offered to LFR members who wanted to transfer were nowhere near as nice as LFR apartments in both size and position. I did not see the Marina Dourada apartments unfortunately, but an LFR owner who went to see them said they were the most comparable to LFR but still did not tempt her to change. I was very impressed with the LFR apartment - they are very large, furnished in a Spanish style still (not the CLC modern style that they used to refurbish some of the LF apartments).
If anyone has any specific questions/comments, please contact me.

Email address: susan.beetlestone@gmail.com
Telephone No: 01792 873953
Sue B

Suebe

Sue B

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