Letter to TAPRC

Simpson Bay Resort & Marinadelivered via email pelicanboard@gmail.com

February 28th, 2011

Mr. Jeff Borowick
CHAIRMAN
Tenant’s Association of Pelican Resort Club (TAPRC)
Billy Folly Road #37
Cole Bay, St. Maarten

Dear Mr. Borowick,

We are contacting you with important information concerning the reopening of the resort.  There are two important issues that must be addressed prior to being able to open the property.  It is important to insure the timeshare member’s future enjoyment of the resort with reasonable Annual Maintenance Fees (AMF).  Only through working with a shared objective can the resort reopen in the shortest possible time.

As we all know, labor has been a significant challenge for the resort for many years.  With the best intention, in 1996 TAPRC chose to continue employment of the workers of the original owner – Billy Folly Development.  This decision provided significant and expensive labor benefits for the workers and has been paid for by borrowing money and deferring needed maintenance.  These labor issues are being addressed now, so that going forward, competitively paid workers will provide reliable quality service. It is imperative to address these issues now in order to avoid having to continue borrowing money almost yearly to pay for the budget deficit and/or having to -on a short term- increase the annual maintain fees of the timeshare members.  We strongly feel that by addressing these issues the chance of having to make a special assessment within short is in any case significantly reduced.

We have taken note of your February 17, 2011 message that the sale of the resort did not include the movable assets such as the contents of the units.  Obviously these assets are critical for members and guests to enjoy the property.  We understand from your message that TAPRC is prepared to address this issue now and we suggest a speedy resolution to expedite the possible opening date.

A simple and fair solution exists.  The solution is for Simpson Bay Resort to waive collection rights of several million dollars of 2011 AMF collected and spent by Pelican Resort Club Owner Company N.V. (PRCOC) in 2010, and for PRCOC to assign the ownership of the movable assets to the resort.

As previously advised, it is the goal of Simpson Bay Resort to maintain the most efficient operation and with all realistic measures taken to avoid any additional fees to the timeshare members (such as increases in AMF and/or assessments).  The support and cooperation of TAPRC will assist in achieving this goal.

We propose a target date of Thursday March 3, 2011 to address this issue and to minimize the inconvenience to the timeshare members.  I stress that we have a common interest in solving this issue for the benefit of your fellow TAPRC Members and the interest of all parties.  We urge you to support this proposal and look forward to your prompt reply.

Sincerely,

SIMPSON BAY RESORT MANAGEMENT COMPANY

By: _______________________________

Rodrigo Gamboa
Corporate Coordinator
RR Management Company

authorized management agent for Simpson Bay Resort Management Company

c: Simpson Bay Resort & The Villas at Simpson Bay Resort Timeshare Members

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