TravelTalkOnline Forums Travel and Vacation Forums St. Maarten - St. Martin Simpson Bay Resort Update - Posted 2/14/18

Simpson Bay resort has provided an update on damage and reopening. You can find the details here (requires Member login): http://www.simpsonbayresort.com/membersarea/hurricane-updates.asp

Quick Summary:

- Caladium, Croton and Dieffenbachia buildings are damaged beyond repair and will not be rebuilt
- Owners in those buildings are allowed to move to the Royal Resorts point system free of charge -or- cancel their membership w/o penalty
- The assessment schedule has been released. Worst case is $428 per week if you own a penthouse

Information also posted on Simpson Bay Resort Member Facebook page (closed group): https://www.facebook.com/groups/SimpsonBayResort/

Wow, three buildings will not be rebuilt??

Correct. You can look at the site plan to get an idea of position each building.
http://www.simpsonbayresort.com/site-plan.asp

Based on what I was reading in the lead up to this, the damage was substantial, and I had a feeling that the may do away with at least the Diffenbachia building because it has lost its appeal since the Villa building obstructed its views.

They are the smallest buildings on the resort and the letter they published gives out all the details. I did not post it here because it is quite lengthy.

Wow is right!....I knew the damage was severe but somehow thought they would put it all back together again...sad for those "owners". I will add that a $300/week assessment for my upper B building weeks is less than anticipated.

SBR will not be an easy exchange minus those unit weeks....

Full text:

Latest update from Simpson Bay Resort:
Dear Members,

We hope you are enjoying a happy and healthy 2018!

First, we want to apologize for the delay in sending you this update. As you already know, the resort suffered serious and substantial damage in Hurricane Irma. We have spent the weeks since the hurricane assessing and making repairs as quickly as possible, and we felt it was important for everything to be as accurate as possible. After assessing the overall damage to the property as well as the individual damage to each building, we would like to report the following:

We are sad to report that the Caladium, Croton and Dieffenbachia buildings have not only suffered cosmetic damage, but also have severe structural damage. This is consistent with other concrete buildings in the area near the resort, such as the concrete block homes immediately next to the Caladium and Croton buildings, that were completely destroyed by the storm. It appears that the winds on that particular side of the hill were incredibly strong, and may have actually been compounded by tornados. Small tornados are known to form in hurricanes, and are usually the cause of the most significant damage. The winds were strong enough to stack cars on top of each other like blocks, and to cause structural damage to concrete structures, including the Caladium, Croton and Dieffenbachia buildings. The out-of-pocket cost to tear down and rebuild those buildings and spread the burden among the general membership makes repair of these buildings an extremely expensive proposition. Without considering these buildings, the total budget to repair all the other damage is US$5,523,073.00. Adding the cost of repair for the Caladium, Croton and Dieffenbachia buildings increases the total cost by US$15,000,000.00, as those buildings must be completely demolished and rebuilt to be safe.

The membership agreements for the Caladium, Croton and Dieffenbachia buildings contain "force majeure" clauses, which allow for the cancellation of membership agreements in the event of storms, acts of God and the like. This clause appears in the old Pelican Resort contracts as well as the newer Simpson Bay Resort contracts. It is clear that the Resort and its members cannot afford to rebuild these buildings and therefore must exercise its option to cancel the contracts, simply because there is no other legal option. This does not mean you will lose your piece of paradise! We want to ensure that members whose units were destroyed still have the opportunity to return to their St. Maarten home. Therefore, we have decided to offer members that have weeks in the Caladium, Croton and Dieffenbachia buildings the option to join the Royal Resorts Caribbean Collection ("RRCC") at no cost other than the continuation of payment of their current maintenance fees (and the payment of any points club fees, which go to the exchange company and not to Simpson Bay Resort). Each member will get an amount of points that corresponds with their type of unit and their membership week. In this way, even though the units were destroyed, these members will be able to return to the Resort if they wish. Affected members who wish to take advantage of this offer should contact Rose Blackwell and team by email at: rblackwell@simpsonbayresort.com, or by telephone at 1-888-852-8305. Members who do not wish to accept the RRCC offer should also contact Rose or a member of her team to ensure that they do not receive any additional billing. Members who have paid their 2018 maintenance fees and do not elect to accept the RRCC offer will have their maintenance fees refunded.

The renovation of the other buildings is on target with the Villas Building scheduled for occupancy by March 3, 2018, the delivery of Marina, Flamboyant Beaumontia and Bougainvillea by April 28, 2018, and delivery of the Allamanda building by the end of September, 2018. As stated above, the total budget to repair those buildings and the public areas is US$5,523,073.00. The members will pay approximately 40% of this amount via a proportional assessment based on the type of unit owned, while the Resort Developer will pay for the unsold weeks. A complete breakdown of the costs associated with repair of the Resort is in the member’s section at www.simpsonbayresort.com.

The assessment will be as follows:

RRCC members will be assessed the amount that corresponds to the type of unit available for reservation based on the number of points they currently hold and pay yearly fees on. Members in the 10-year program (points or fixed weeks) will pay the same assessment as regular members.

These assessments will be sent out in late February or early March, and will be due 90 days after they are invoiced. Any owner who owns three or more intervals will be able to elect to finance the balance due over 6 months, subject to a 15% administrative surcharge to cover administration of the financing.

We are very proud that the Resort was able to face the storm without any major injuries to our employees or guests, that no employee was dismissed or had their hours reduced on account of the storm, that we were able to host the military force as well as the red cross, and also that we were the only major resort of the island that continued to be opened for business travelers and also will hopefully be the first major resort to be reopen for tourism. We are very proud of all of our employees and we are very appreciative with all the members that continue to support the resort and their "island home".

Best Regards,

Simpson Bay Resort & Marina Management.

It actually is a total of 64 units removed counting the C lockouts as a unit

Wabid: Thanks for that info....

I can live with the assessment. I thought it might have been more. Feel bad for the owners of the C and D buildings they lost their home away from home. I can't wait for November.

I wonder what they are going to do with the space where those buildings were?

WOW, the pictures truly showed the damage! lots of timeshare owners must not be pleased right now. Since the Resort has NOT been full the last few years, except during some high season weeks...this is one way to reduce unused inventory.
In a way, I am SO glad we gave our weeks back several years ago. We still have places to go on SXM and get to see our friends.
Going in June, and November 2017.

Good question Carol...

That comment sounds a bit biased and full of assumptions and a way to justify your actions...

.

Yup and my friends are at SBR

AnnandSteve--Sorry, what pictures?

There were pics of the D building devastation that was kinda obvious that there would be major issues with reconstruction...



Lame

OK, I don't remember seeing them, but perhaps I saw them a long time ago.

My guess is that after demolition, in time, new buildings will be built and sold to new owners as new units. But I'm just a bit cynical.

The new Hard Rock Casino?

I don't think that's cynical at all. I'm sure it will take years to decide and eventually build SOMETHING there and probably better for those affected not to be held in limbo forever. I think the Hard Rock thing is history but I bet new accommodations will eventually rise

We are in a quandary. In 1984 we bought week 8 unit C11A&B in pre-construction, in 2012 we bought week 9 C11A from an owner. We chose the weeks and location of the unit - Heineken Regatta, sometimes Carnavale, views of Simpson Bay, sunsets thru the side opening, and lagoon from a private enclosed balcony.Over the past 33 years we endured the construction staging of the "B" buildings behind us, financial problems of Pelican Resort (including the last minute Resort shutdown), and the 1997 Hurricanes (which deprived us use of the C11A unit) for two years. Now the buildings will be demolished under the "force majeure" clause of contracts. We question whether the units were underinsured? The offer of points equal to the units clearly benefits the Resort, and provides it with land to build new buildings with a denser occupancy. What made the "C" and "D" buildings attractive was their footprint, amenities (smaller, quieter pools) and location (although partially obscured by the Suites building). Will future use now allow us to get a week of our choice in a low density structure - I think not! Our quandary is whether to accept the offer (and pay the rebuild assessment on a structure which does not exist) or opt-out and get a refund of our 2018 maintenance. BTW, we took advantage of the Resort's prior offer and "banked" weeks 8 and 9 with Interval. We are also owed points for week 8 C11B which we converted to points in 2016 and had booked a November 2017 visit.

I feel your pain. I hope someone who knows the ends and outs of the point system answers your post. We didn't go with the points because we use our weeks every year. As far as the insurance. Our maintenance fees would be astronomical if we were fully insured. You need to find out, I don't know how, what the likelihood of using your points weeks 8 & 9. Also look at the different websites that owners use to rent out their units and see if that is an option. That option may dry up with 60 plus units less at the resort. Just my 2 cents worth. Good luck.

Week 9 is normally Heineken Regatta, which is one of the highest occupancy weeks, other than holidays like Christmas/New Years/Easter, so I would think it would be difficult to get that week with points.

As a 20 year fixed week owner at the Flamingo we have resisted the pressure by the company to switch to the their point system and are glad.
Many have changed to the point system there and have regretted it. Often times the points owners can't get a reservation and then find out someone was able rent a week or two. The other problem is that there are more people that want the prime weeks than there are prime weeks in the inventory.
Right now we are in the middle of our nine week rental at the SBR. Our friends had to rent here too, and they are owners of four weeks here.
Go figure !!

We are Flamingo fixed week owners too and will never convert to the point system. Many people we have talked to have regretted doing so but have talked to a few that are happy with it. Difference between what works for individual needs.

My first reaction was sad for the owners followed quickly by glad we gave our rooms back!!

I understand your pain. Fortunately, our weeks are all in units which are being repaired.

We added the points option three years ago. We selected the option which allowed us to keep our fixed weeks and convert them to points if needed or desired. It also adds free II access for the banked weeks if needed.

We have weeks in non-prime periods and have been able to bank our weeks and switch to other weeks or units to allow us to move our summer weeks around. They have been very accommodating and it has worked well for us, but we are not trying to get into the high demand weeks. We have banked all of our 5 weeks for this year into points and have not yet decided how to use them.

Does anyone know the outcome of the LeAqualine massage business? Mark said they were going to court on Thursday trying to stop the eviction of his business from Simpson Resort.to make room for another "spa".

I for one will not pay any assessment. I will either abandon or sell my weeks. I however do not know if I am subject to the assessment since I am not a point member! Dosen't the managment company have any insurance and if not they should be terminated.

I believe the assessment is for everyone. You are going to walk away rather pay less than $400.00. I thought the assessment was reasonable. The Atrium paid $750.00 a week regardless of the size of the unit. There is always a deductible with insurance and I assume that is what the assessment covers. Didn't you also just pay a sizable renovation fee. I know I paid $4000.00 a week and had one year of enjoyment so I'm not ready to walk away.

The question for the "owners" of the "C" and "D" buildings is - on what will we be paying the special assessment? Our units are being demolished. Under the proposed offer we will have points on what - a random week at a ghost building, and would be obligated to pay for repair of a unit and building which no longer exist. As stated in my previous post, we chose a specific fixed week during the prime season and specific unit for which we could use or trade for a like unit through a third party. As also noted in our original post, we were "pioneer" owners purchasing and supporting with additional assessments our pre-construction units through the Pelican financial crises, the 1997 hurricane and its repairs, and the recent renovation.Since the resort will undoubtedly build on the newly vacant land at some future time (the land is too valuable), "owners" of the demolished units should receive preferential fixed week buy-in prices within the "new" structures based upon the pre-Irma values of their now demolished units. The rebuilt units will in most probability exceed the number of 67 units lost by the demolition of the "C" and "D" units,bringing in "windfall" revenue to the resort when completed. Where is that promised Timeshare Protection Act which the SXM politicians keep touting?

It doesn't sound like you were a happy camper before the storm if a $214 (studio) $304 one BR or a $428 (penthouse) assessment sends you over the edge. I thought the assessment would be much higher and I have no issue with my $304. Probably a good idea just to move on and use this as your reason BUT the renovation assessment should have bother your more. Again, I looked at that as getting a whole new interior for the unit and view that I enjoy.

...and the latest update is very clear who is being sent the assessment bill

Edit: missed the post above mine...I would be TOTALLY disappointed if I had a unit in the C or D buildings....with that said If I was looking for a reason/way to get out this is it. I would probably not go for the points deal unless I recently bought the unit AND paid a decent price for it AND didn't want to just abandon that purchase. Difficult decision.....Not a big fan of points.

Anything the SXM politicians have touted is doubtful at best.

jrr--SXM politicians will pass that timeshare protection act, right after they do something about the dump. (Oh and by the way, you refer to a 1997 hurricane. I assume you mean Luis, which was in 95, not 97. Your unit might have been unusablel from 95 to 97)

Correct. When the politicians will not even look out for their own, how does one really think Timeshare Legislation is even a thought now?

Carol you are correct - it was Luis and our upper unit was unusable in 96 and 97 because of window and roof damage. C11b (the lower unit was usable and we stayed in it. As for my comment about the Timeshare legislation, it refers to the pre Irma era where they would frequently
talk about the issue and do nothing. It is obvious that this issue will now be on the bottom of their list - they have enough problems with rebuilding the island.

The amount of special assessment does not "send me over the edge". What does is the fact that the "points" that are being offered are based on what physical units? We had previously converted one of our units (week 8,C11B) to the "points system" with the option that we could either use it or utilize the points. The points were still based upon a physical unit - not a "ghost unit" after demolition. We were ,in fact, very happy campers with the fixed unit weeks 8&9 C11A. Now all is changed and access to that physical unit will not occur again, but rather a unit and week not of our choosing. Weeks 8&9 are high season - week 9 is Heineken Regatta (which in normal years results in a high demand for any accommodation on SXM) and the view from unit C11A was only partially obscured by the Villa Building. Again the "leverage" of high season for the C and D buildings was beneficial in fixed week or point trades. Will trades of "ghost units" have the same priority?

I know we can all look at the same thing and each of us take away a different recollection. Perhaps I’m misunderstanding the situation but I think I would walk if I was forced to accept having to pay a special assessment and then only end up with points instead of a lovely prime week Unit that I chose for my own personal reasons. Many are ever so happy with their points but I want to know there is something real and that its mine for the time I chose to be there rather than crossing my fingers and hoping a nice points Unit would be available and I would get it over all the other points owners. Just too ‘pie in the sky’ for my personal taste and there are so many great rental properties across the island available if you aren’t hooked on a specific location. But that’s just me......

I agree...I would most likely bail out also..not because of a $300 assessment but the fact that I would still have to pay my AMF every year and, in return, only receive a chance of getting a decent unit in return MAYBE in an acceptable season...and have to rinse and repeat every year.

I can accept the uncertainty of an exchange into a resort but not as a permanent replacement for the comfort of having a definite, stable, familiar place to vacation

My thoughts exactly. Perfectly expressed.

Pat. It's happened again. Total agreement. It's how I feel about our fixed weeks at the Flamingo.

Omg! That’s what - about three times now over about 18000 cumulative posts between us? 😊😊

Kidding aside, we chose our timeshare many years ago pre-construction and we absolutely love our unit and it’s exact location at the Towers. The view is spectacular and the suite is spacious and though it’s dated, so are we and it’s home to us when on the island. One of our units, our personal favorite, is a two bedroom and sadly, buying pre-construction, we only bought the one week. Once it was built and we stayed there for the first time the Fall before it officially opened for guests, we tried to buy a back to back week in this unit and to this time, thirty years or so later, we’ve never been able to. At one time years back, we were offered a somewhat comparable back to back one bedroom unit for two weeks in exchange for our one week in the two bedroom and DH turned it down. He loves our unit that much.......so I definitely would be very pi$$ed if the points situation as previously mentioned were to be imposed upon us and we were forced to lose our unit.