New Membership Q & A Meeting Outcome

Just back from the Q&A meeting at the Reunion Resort Grande (Osceola Suite) and we had a good number of our owners’ questions answered.

The meeting was extremely well attended, and many questions raised by the audience members, but the meeting ended with many of our questions unanswered. We will keep the list updated as we hear more from Kingwood.

NOTE THIS IS OUR BEST ATTEMPT TO ACCURATELY REPORT ON THE MEETING AND IS NOT NECESSARILY THE OPINION OF KINGWOOD.

Summary of Questions & Answers so far!

Q – Why did the Resort provide so little warning for such a major change
A – We’d wanted to do this 5 year ago

Q – Why didn’t the resort consult with owners and members first
A – Not answered yet

Q – Where are the new amenities going
A – The lagoon and tiered driving range are going on the existing land behind the grande, where the practice range is. Holes 1 and 18 will be relocated, (possibly using wetlands)

Q – What is the timeline for the new amenities
A – Not yet answered, apart from starting in summer of 2020 for the water park extension

Q – Why can’t the resort be respectful to owners that have invested in over $2bn in property within the resort.
A – Not yet answered

Q – We paid $15,000 for our membership and if we terminate the membership how much are we compensated for??
A – The terms of the membership agreement cover this. (Have to wait for the membership to be replaced)

Q – Are the historic membership deposits safe in ESCROW?
A – Not yet answered

Q – I’m a member and a secondary residence owner, am I still blocked from taking friends to golf & water park?
A – Although not directly answered, the understanding is technically they can’t access the amenities, but contact the membership office on a case by case basis

Q – We have a golf membership now and do receive a rental discount.  I read in one part it states we automatically become platinum members but than it also says we automatically get moved down to Silver status if we receive a rental discount on our monthly dues. Is that accurate? 
A – If you have a Golf Patron membership you will be grandfathered into your current membership level as a Platinum Member

Q – When does work start on the water park extension that was promised last year?
A – Summer 2020 hopefully

Q – Do you know if they are going to have a session for prospective members in the future?
A – A solution is being arranged

Q – When we purchased our properties in Reunion, we had a contract from the Seller that assured & guaranteed us when we sold that property, we could transfer our membership at Reunion to the purchaser with no initiation fee and no restrictions to their membership. 
A – This has not changed. If there is a waiver of the membership deposit / initiation fee attached to your property will be available to the purchaser of your property as long as your membership remains active.

Q – We want assurance that this contractual guarantee will be honored by Kingwood management of Reunion.  Will Kingwood honor this contract or will we have to file suit for this guarantee to be honored when we sell.
Please get Kingwoods written response to this question since we will not be in town for the meeting.
A – Not answered yet

Q – We live in England, do not rent and only spend 90 days at our house. But we pay the same as investors or residents. Will they consider a fee structure that recognises people who do not use the facilities or only have limited time.
A – Kingwood answered a similar question by saying that they have factored this into membership pricing

Q – Adding lots of properties means lots more people who will use the facilities – will it become over crowded. There is no actual cap or limit.
If there is no cap why cap memberships, forcing people to buy now or never. 
What about future owners of plots, do they have to buy now also. If not why penalise owners who built a property.
Many promises of facilities, but no dates. No plans where the extra properties are to be built, or the facilities  When they if they add facilities will not fees HOA not also go up ? 
Build a 3 bed or 13 bed house – same cost for an investor ?
A – None of the above were answered yet

Q – Seems like a huge hike in HOA fees as we received our new HOA bill today and fees went from $322 to $459 and that works out to about 42% increase and that seems a little absurd!!!!! Please ask what is going on???
A – Not answered yet

Q – I have been a homeowner and club member at Reunion Resort since 2005. Until two years ago my home was in the official Reunion Resort Rental Program. Switched to an outside Management Company as it was not in my best interest to remain in the Reunion Resort Rental Program.
As I am an original owner I was grandfathered and was granted 42 days of guest privileges per year. 
Apparently I will no longer be eligible for Houseguest privileges.
Not fair to remove houseguest privileges especially with only one weeks notice, should be grandfathered.
A – The point was issued to Reunion Resort’s membership team

Q – Could you please publish the questions and answers for those of us who cannot attend.
A – Absolutely

Q – Can a future buyer of our house, also buy a membership from Reunion? The initial statement suggested not.
A – Once the February 29th 2020 deadline is passed, Kingwood are currentylstating that the home will never be allowed membership.

Q – I think all would agree that the announced plans are very welcome and ambitious.

Which leads to two questions:

1.       Will Kingwood Int’l deliver on its promises?

2.       Considering the cost of construction and operation, are new members being enticed with attractive initial terms only to be hit with huge increases to pay for the upgrades/enhancements once they are in place? 
In other words, is there a reasonable, straightforward financial plan to finance and operate the “new” resort, assuming the membership goals are attained?

A – to the above, there’s no information yet.

Q – A couple of questions if possible to get answered:
There was mention of discounts for services by in-house engineering…how do we even contact them to see what services are offered?
There’s also mention of a miniature golf discount…that doesn’t even exist yet does it?
Either way, communication has been extremely poor. We’re golf members and had to ask for info from the membership office because we’d heard rumor of membership changes!!
A – We’d recommend contacting the membership office directly

Q – Will preferred partner house guest details be used by the resort marketing team in any way whatsoever?
A – Not answered yet

Q – Can our membership be sold (transferred to new owners) with our property? 
A – Yes

Q – Are there costs associated with the transfer of membership to new owners?
A – It will depend upon the membership agreement for each property

Q – Are our membership deposits still intact and available to us?
A – Unanswered

Q – What gives owners the right to stop issuing house guest passes when it is part of the contract we signed with them?
A – Kingwood stated that the terms of membership were not to profit from membership access

Q – When will the preferred partners be announced and how will that operate, will there be additional costs?
A – By February

Q – Will members have to phone security every time we want to use the locked pools?
A – From recent communications, yes, until RFID cards or wristbands are provided to members

Q – As a residents who live in Reunion about seven months a year and don’t  rent while not there (and have no plans to), we don’t see any benefit in paying for a membership that we can’t use during our away time. Are there any plans to take these type of residents into consideration?
A – Kingwood stated that they priced monthly membership to take this into consideration

Q – We’ve seen mention of a bronze membership but haven’t seen details. Can the committee expound on this? 
A – Not yet answered

Q – As a resident in Reunion, this whole process seems very unwelcoming to non members. In addition, the fact that future owners of my property will be unable to purchase a membership, could potentially devalue my and others properties. Does the committee see that as a concern?
A – Kingwood suggested that owners buy memberships and prospective owners should buy homes with memberships

Q – The vast majority of members are absent owners for most of the year, why does the club not allow for that in setting policy, holding meetings and seeking consultation?  Seems odd in a world that literally buzzes with online communication and conferencing tools!
A – Not yet answered

Q – Will members face further changes to the pricing, access and fees once the amenities finally arrive?
A – Not yet answered

Q – Do guests that have booked through a preferred partner have to pay the resort fees ($55 per day)
A – Yes

Q – Are non member owners with one of the preferred managers, obliged to take out memberships as the email dated December 27th states?
A – Yes

Q – Are we correct in our understanding of the memo that if potential members do not procure a membership at any level by February 29, we will lose the ability to purchase one at any time in the future?
A – Yes that is definitely the case

Q – If we purchase a membership, but do not rent out our home, will anyone using our home in our absence be permitted to access all the membership amenities?  If so, how would that work? If not, why not? 
A – Not answered, but, contact the membership office for each individual case and try and obtain passes on merit?

Q – There is no information listed on the Bronze level membership? Since we only spend a total of 4-5 months per year ( not all at once; we’re not true snowbirds as yet! 😊) in our Florida home, we’re thinking the Bronze level may be right for us at this time.  Where can we find the info regarding the Bronze level?  Will we be able to upgrade our level at a future date?
A – Not answered yet

Q – Has Kingwood indicated a timeline for the construction projects they have planned, including a firm start date and a projected completion date? Have they indicated precisely where these new amenities, hotel and theater will be built? 
A – Not answered yet

Q – Does the $7,500.00 initiation fee apply to all levels of membership be it Golf inclusive or Social?
A – Yes the current $2500 discount will apply to either entry level though February 29th either as a platinum or gold member.

Before we could ask the following questions, the meeting was brought to a close, but we will raise them at the next session for prospective members.

Q – So you are saying that if a property owner doesn’t buy a membership before March 1st then that property owner will never be able to get a membership – and neither will the future purchaser of that property – that’s what you are saying?? 

Q – Reunion is saying that if someone comes into Reunion on March 1st (or after) and wants to build a home but wants a membership before proceeding with the build that Reunion is going to turn that customer away? To further this question, Reunion is prepared to walk away from a royalty fee on that build because a lot owner didn’t purchase a membership for $2,250? Seems crazy to us that the board would even consider this.  if that customer of reunion is not going to proceed with a build because he/she can’t buy a membership, that will result in lost revenue to the resort by less people playing golf, spending money in the restaurants, increased HOA fees on a built on property, and no royalty fees being paid to Kingwood. 

Q – is Kingwood aware that the previous owner of the resort tried this tactic and experienced no success? 

Q – what is the timeframe for these amenities to be built? i.e parking garage, amphitheater, wave pool, etc, etc.. (if kingwood gives anything close to an answer of “we are working out the details”, it should be said to them that the property owners should know the timelines before being asked to buy a membership pertaining to these so-called planned amenities. 

Q – A lot owner has no reason to own a membership because that lot owner probably lives abroad and probably does not own a house or a condo to be able to come down to and enjoy the amenities. They are passive investors. Thus, why would a lot owner ever buy a membership?

Q – many lot owners bought lots in 2004/05/06 when the lots were purchased for way more that the current market of these lots today. Why would a lot owner in the U.K or elsewhere in the world pay money to buy membership on a lot they are underwater on and won’t be using the amenities?

Q – When Kingwood states there aren’t enough memberships are they talking Social or Golf. If Social then what is limiting the number of memberships?  

Q – If everyone bought a membership by Feb 29th would there be enough memberships?  If yes then why would there not be enough memberships by March 1st?

Q – Why would a vacant lot owner benefit from a membership as they don’t use the facilities nor have any benefit from a membership. Would this not raise there carrying costs a distortion meant amount in comparison to homeowners?

Q – How has Kingwood contacted all owners on this matter to advise them of this massive change. ?? If answer is the Reunion Membership listing then what about all the people that are owners but aren’t on that list. ie- Vacant Lot owners and homeowners who aren’t members.?? They don’t receive the members emails ?  
A – A meeting for non members is being arranged

Q – It seems to cushion the mandatory Feb  29th date Kingwood has stated that their vision includes significant amenities and improvements including water parks, Amphitheater’s,Reataurants , Parking garages etc etc. Are there any site plans or drawings available to the membership on this?  If no why not. ? There must have been drawings made to show where all these amenities are going?  What is time frame for these?  What is estimated commencement date for these? 


One comment

  1. WOW! Thank you for taking the time to not only post the blog but also attend the meeting and represent those of us who could not. Look forward to seeing how this chaos is resolved.

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