Document Change Presentation 4/1/2022

Q&A From Presentation

QUESTION 1

From Joanne to Me (Direct Message) 12:01 PM

Will you be opening up the chat so the entire group can see any questions?

ANSWER – We have taken all the questions from the presentation and posted them here with answers. The volume of owners and the detailed nature of some questions, makes this the most effective way to communicate clearly and accurately.

QUESTION 2 

From Barb Riley – MT to Me (Direct Message) 12:04 PM

does that mean there will be no open Q&A during this Zoom call?

ANSWER – We have taken all the questions from the presentation and posted them here with answers. The volume of owners and the detailed nature of some questions, makes this the most effective way to communicate clearly and reliably.

QUESTIONS 3-7

From Joanne to Me (Direct Message) 12:11 PM

How is “abandonment” defined? 

ANSWER – Abandoned intervals are those which are severely delinquent and whose owners are deceased, missing, or have otherwise deserted or attempted to relinquish their ownership interest.

Presumptive “Abandonment” is defined in Paragraph (15)(a)(2), as follows:

The Owner’s failure to respond to three (3) demands for payment of the amounts due and owing under this Agreement; under the Declaration of Covenants, Conditions and Restriction of Meadow Lake Country Club Estates; or

The Owner’s response to a demand for payment that fails to prove a justifiable reason for the Owner’s failure to pay the amounts due and owing.

How is “delinquent” defined?

ANSWER – Intervals that are at least two quarters past due are considered delinquent.

It is important to maintain an “no animals” policy due to additional cleaning costs and allergy issues.  Is this still the plan?

ANSWER – The proposed changes to the governing documents leave the question of pets up to the owners of individual units.  Using a UNANIMOUS vote, owners of any unit may choose to allow pets.  Any interval owner has the right to VETO the proposal to allow pets in their unit.

What is the Viking Ship interval noted in the presentation?

ANSWER – Viking Ship is the industry terms for predatory companies that charge fees to “take” deeds from time share owners.  There is a variety of schemes, but they are generally not an avenue out of ownership, and instead cost owners fees.  As a rule, owners are not able to actually exit ownership using these types of shell companies.

How does ROFR impact legacy to children?

ANSWER – MLDC’s right of first refusal applies only to non-family member third parties.  With respect to family member transfers, MLDC requires notice of those transfers and notice that the family member transferee is aware of the transfer.  MLDC has experienced several instances where transfers have been made, either by devise in a will, or simply by deed where the transferee had no knowledge of the transfer and did not want the interval.  That has resulted in the transferee’s refusal to acknowledge ownership and refusal to pay assessments.  The notice provision is there to avoid those issues.

How does this work if you want to “gift” your interval to friends?

ANSWER – Although “gifting” is not specifically addressed, MLDC would simply require notice of the “gift” and the transferee’s acknowledgment and acceptance of the interval with the accompanying benefits and burdens.

QUESTION 8

From Barb Riley – MT to Me (Direct Message) 12:11 PM

Currently, the owners who are local have 24/7/365 access to all amenities, regardless of their dates/times of their weeks.  It appears that this is going to change to remove this benefit.  What is the additional cost for continued access year-round?

ANSWER –  The proposed changes to the governing documents create the ability for MLDC to enact policies regarding access to these amenities.  While access has been allowed for many years, the governing documents state clearly that amenities are for owned weeks, only.  Instead MLDC will create policies that balance the usage of amenities for owner use outside of owned weeks, with those of owners during their owned week.

QUESTION 9 

From Lynda & D’Arcy Kavanagh to Me (Direct Message) 12:13 PM

Please define a graceful exit.

ANSWER –  The proposed changes will give MLDC the ability to consider deed backs on an individual basis.  The current documents require MLDC to absorb all expenses associated with any individually held deeds.  This makes taking back deeds impossible for a large subset of owners where potential income does not offset the annual fees.

QUESTION 10 

From Barb Riley – MT to Me (Direct Message) 12:13 PM

Owners should have the ability to rent privately without MLDC influence, as well as the ability to sell their units. If MLDC wants a 1st right of refusal, then that should be placed Up Front before any sale is discussed.

ANSWER –

Paragraph 7(C) requires that all rentals go through a rental platform approved by the Managing Agent, currently MLDC.  That requirement is intended to provide uniformity for rentals and allows the Managing Agent to assure that renters fully understand their rights and obligations.  Direct owner to renter arrangements often do not address those issues resulting in renter misunderstandings regarding their rights and obligations.

Paragraph 6 requires that notice of MLDC’s right of first refusal be noted up front by the seller:

”All intended third-party sales or offers to sell must be accompanied by a notice to the intended purchaser that the sale or intended sale is subject to MLDC’s right of first refusal.  With respect to any such intended third-party sale, MLDC shall have five (5) days from the date it receives notice of the intended sale within which to exercise its right of first refusal granted herein.”

QUESTION 11

From Joanne to Me (Direct Message) 12:13 PM

Will these changes impact my ability to use RCI points for other resorts?

ANSWER –  The proposed changes will not impact your RCI programs, points, or abilities.

QUESTION 12

From Lynda & D’Arcy Kavanagh to Me (Direct Message) 12:13 PM

How many more properties in ML need to go through this process before everything has been approved?

ANSWER –  Two associations have already passed the amendments.  There are two others currently voting.

QUESTION 13

From Joanne to Me (Direct Message) 12:13 PM

Why wasn’t the zoom call interactive?  Would have been great to “see” you and have some dialogue.

ANSWER –  These types of meetings can get quite large.  In order to keep the presentation streamlined and useful to other owners in the future, while they seek information related on the topic, we kept the questions in a written format.  This also helps us provide thoughtful and accurate responses.

QUESTION 14

From Michelle J to Me (Direct Message) 12:14 PM

Does that mean you are only answering questions after and posting them?

ANSWER –  Yes, the volume of owners and the detailed nature of some questions, makes this the most effective way to communicate clearly and reliably.

QUESTION 15

From Greg and Joanne Derby to Me (Direct Message) 12:14 PM

Hs there been any progress on golf course use?

ANSWER –  We have been in communication with the management at the golf course and we are pursuing all available options to protect your rights.  We will advise as these legal proceedings evolve.

QUESTION 16

From Barb Riley – MT to Me (Direct Message) 12:14 PM

This Zoom meeting was misrepresented as a Q&A opportunity for owners who still had questions.  I’m very disappointed!!

ANSWER –  We are so sorry to hear you are disappointed by the Q&A.  It seems the best way to get accurate answers, as well as the best way to keep the presentation precise.  We also wanted owners that were unable to attend, to find value in the posted link and formal questions and answers. 

QUESTION 17

From John Heffer to Me (Direct Message) 12:14 PM

How will I exit, legally, quickly, and gracefully?

ANSWER –  The first step is approval of the document changes discussed here.  Once that is completed, MLDC will create a program that allows for individual negotiations with owners wishing to exit the resort.  The timeline is not yet set, but the vote is the largest hurdle.

QUESTION 18

From Joanne to Me (Direct Message) 12:14 PM

If my unit starts allowing animals, it will be unusable to us due to family health concerns.  We purchased this unit knowing no animals were allowed.

ANSWER –  We have had tremendous feedback on this issue.  Remember that ANY owner can VETO any pet proposal for their unit.  Therefore, this is not an issue for your situation.

QUESTION 19

From Greg and Joanne Derby to Me (Direct Message) 12:15 PM

Why do multiple unit owners not get multiple votes?

ANSWER –  The resort is set up with one vote per interval.  There may be more than one owner on each deed, but every interval gets one vote.  If you own multiple intervals, you have multiple votes.

QUESTION 20

From joyce to Me (Direct Message) 12:15 PM

We have two separated weeks.  We do not use the winter week but do use the summer week.  How under the new documents would we get out of the winter ownership?  Specifically please. 

ANSWER –  This question could be interpreted as A) one deed with multiple weeks, or B) two individual intervals with independent deeds.

1. A) If you own in interval that is comprised of multiple weeks, you first need the proposed document changes to pass. Once that happens, you should expect to work with MLDC to go through a process of setting up the intervals as independent deeds.
2. B) Any owner may put a deed into the RCI exchange program, rent the unit through MLDC, or sell on the open market, recognizing MLDC’s right of first refusal. The value of the interval is usually determined by the desirability of the week on the calendar.

QUESTION 21

From Joanne to Me (Direct Message) 12:15 PM

Will excess inventory continue to be available through RCI?  If other platforms are used, does this not impact the value to RCI?

ANSWER –  Owners can choose to partner with RCI to amass points and visit other RCI properties.  That relationship does not preclude owners or MLDC from putting other intervals to work through other channels.

QUESTION 22

From Doug to Me (Direct Message) 12:15 PM

If I want to rent out my week one year, how will this be handled?

ANSWER –  Owners that wish to rent their units must be enrolled in the rental program.  Please contact Karen Carter at Owners’ Services at (406)892-8738.  Remember that you cannot be part of RCI and the rental program with MLDC at the same time.

QUESTION 23

From Lynda & D’Arcy Kavanagh to Me (Direct Message) 12:15 PM

How easy will it be to divest ourselves of properties?

ANSWER –  Intervals at Meadow Lake Resort may be sold like any other real estate asset, recognizing MLDC’s right of first refusal.  Intervals can be transferred via sale to new owners the same way you would sell a home or land.  Owners that find there is not a market for their interval and still wish to exit the resort should understand that the first step is passing the proposed changes to the governing documents.  After that occurs, MLDC will be designing programs where deeds may be transferred back to the development company.  The details are not completely settled, but owners should expect individual negotiations, regular titling and administrative fees, and an otherwise smooth transfer.

QUESTION 24

From Lynn Dempsey to Me (Direct Message) 12:15 PM

TO EXIT AN UP-TO-DATE MAINTENANCE FEE UNIT, WHAT IS THE PROCEDURE AND ANTICIPATED FEES, IF ANY?

ANSWER –  Intervals may be sold like any other real estate, recognizing MLDC’s right of first refusal.  Certain intervals can be transferred via sale to new owners depending on the desirability of the calendar week interval.  Owners that find there is not a market for their interval and still wish to exit the resort should understand that the first step is passing the proposed changes to the governing documents.  After that occurs, MLDC will be designing programs where deeds may be transferred back to the development company.  The details are not completely settled, but owners should expect individual negotiations, regular titling and administrative fees, and an otherwise smooth transfer.

QUESTION 25

From Lynda & D’Arcy Kavanagh to Me (Direct Message) 12:16 PM

How do we vote? Can’t find it on website.

ANSWER –  Each association has a separate link to the voting platform.  Check your email account for an email from Survey Monkey.  Otherwise, email us directly and we can provide a link.  wsteck@meadowlake.com

QUESTION 26

From Joanne to Me (Direct Message) 12:16 PM

When will the new documents be effective?  Will we have an opportunity to review each iteration to provide feedback?

ANSWER –  Voting is still open for Spyglass and Glacier Village associations.  Once completed, the accounting processes will go into effect immediately.  Other parts of the project will take more time for programs and policies to be created.  There is not an anticipated series of revisions at this time, although it is possible.

QUESTION 27

From Ken Lewis to Me (Direct Message) 12:18 PM

And how does MLDC get a Deed From a missing or uncooperative owner without foreclosure?

ANSWER –  Part of the document refresh project is aimed at dealing with intervals that have become non-productive.  The proposed changes would grant MLDC limited power of attorney to make the deed transfers more simple and more economical than traditional foreclosures have been in the past.