Minutes of Part 2 of the Committee meeting held at 1000 on Tuesday 27 June 2023, via Microsoft Teams
Present
Committee members:
Andy Martin (AM) Chairman
John Dalglish (JD) Secretary
Colin Rayson (CR)
Peter Barnes (PB)
St Mellion Management:
Matthew Pressman (MP) Resort Director
Kirstine Hitchcock (KH) Operations Manager
Andrew Merritt (AMe) Finance Director, Crown Golf
Minutes of Previous Meeting
The previous committee meeting had been held on 17 February 2023; the minutes had been approved out of committee, prior to the Annual Meeting, held at St Mellion on 24 March 2023.
Purpose of This Meeting
The purpose of this meeting was to discuss proposals for consolidation of lodges, following the 5-year Exit Option deadline at the end of April, also to discuss a way forward for carrying out the required 10-year Review.
Consolidation Proposals
KH had provided the committee with an updated occupancy grid, detailing owners’ intentions. The key figures to note were 66 confirmed as staying, 64 leaving in 2022, 25 leaving in 2023, 13 debtors and 87 No Replies. A number of No Reply owners have changed that status to staying, which means that there are currently approx. 120 owners confirmed as staying (Kirstine – could you please confirm current exact number please).
AM kicked off the session by explaining that the committee had done some analysis of the data and proposed retaining 6 lodges, 1-5 and 7, handing back 6, 8 ,9 and 35 to the hotel. Would that be viable? AMe reported that his recent analysis showed that 5 lodges was the viable number and showed a chart on screen, detailing that analysis. He undertook to assess the viability of a scheme comprising 6 lodges. AM commented that the committee considered 5 lodges would be a bit of a stretch. AMe added that another factor in determining affordability would be the price set for the initial maintenance fee following the 10-year Review. In response to a question about the cost of electricity to the scheme, AMe explained that electricity has to be used throughout the year, even in vacant lodges.
10-year Review
This is inextricably linked to the issue of consolidation, as it will impact on the scheme’s finances. It was agreed that the review should be completed by October, before the absolute deadline of December, also that it would be handled jointly between the Time Share committee and St Mellion.
AMe advised that he had been in contact with the debt collectors, who would be sending letters to the outstanding 13 debtors. The leases need to be returned to St Mellion before the affected lodge weeks can be marketed again. Again, short term leases were discussed as an attractive option, something the committee has suggested before.
MP asked about the funding of refurbishments, if there was no money left over. AM replied that we should build this into the scheme, adding 10% as contingency. CR believed this sort of contingency had been applied before.
AM stated that we need a general communication to all owners with our agreed consolidation proposals, to seek their agreement. We should outline the scenario and stress the need for flexibility to ensure the long-term future and viability of Time Share at St Mellion. MP considers that this communication would be best received coming from the committee; in his experience St Mellion management have had issues in corresponding with owners. AM responded that we should do something jointly, since the St Mellion team represent the resort and management, whilst the committee is an advisory body only.Everyone agreed that the message to owners should be positive, noting that the outcome of the 10-year Review could have a negative impact financially.
CR emphasised that any owners being asked to move their week(s) should be offered an alternative within a similar time frame. On the face of it, this should be feasible, from an initial look at the figures. CR added that we should involve lodge owners early and the sooner we start the process, the better. Also, once we know which owners are directly affected, we should follow up the email with direct contact. Nor should we give owners too long a time to respond to the consolidation email. It was agreed that owners should be asked to respond by the end of August.
As a footnote to the meeting, MP informed the meeting that Greg Thomas, CEO, had left Crown Golf. He was the link to the Australian owner. No identity yet as to his replacement.
Actions Agreed:
1. St Mellion management to draft an email outlining the proposed consolidation plan, seeking cooperation from owners where required for a change of lodge and/or weeks. Text to be agreed with committee in order to be issued by end of July, with responses from owners required by the end of August.
2. JD to produce a summary of the committee’s review of the occupancy data, highlighting areas of conflict, e.g. where the number of future weeks exceeds the number of lodges available. By end of June. Secretary’s Note: see email of 29 June from JD. Action complete.
3. St Mellion to propose dates for carrying out the 10-year Review. By end of July.