5 units remain for sale in former Clover Ridge Timeshare Resort
Legal proceedings to dissolve the association began in early 2018.
Posted 10/6/20
By Susan Thompson
Lake Panorama Times
It’s been nearly two years since the decision was made to dissolve a timeshare vacation operation that had been at Lake Panorama since the late 1980s. As of late September, just five units of the original 22 owned by the Clover Ridge Interval Owners Association need to be sold before the final steps can be taken.
Legal proceedings to dissolve the association began in early 2018. At one time, the Clover Ridge Resort had about 1,100 owners from all over the United States. They purchased a particular week in one of the 22 units owned by the association and received a recorded deed.
While occupancy rates stayed strong, financial decline occurred because owners stopped paying annual maintenance fees. Changes in the way people travel led to fewer people owning timeshare weeks.
Barry Monaghan had been a Clover Ridge timeshare owner since 1991 and a member of the Clover Ridge Interval Owners board since 2000. He’s been president of the board since 2013 and has been managing the dissolution process.
“One of the great moves we made in the fall of 2018 was to enter into a rental agreement with Lake Panorama National. That helped us generate some income during the time before we could put the units on the market,” Monaghan says.
“Over the five months of that original contract, our net income was about $20,000 per month,” he says. “That made it possible for us to keep current on what was owed in LPA dues, and also to Panora Telco and the Guthrie County REC.”
Lake Panorama Realty began listing the units for sale in August 2020. Since then, all the two-bedroom units on the west side of Karen Drive have been sold, plus nine units on the east side. Those that remain include both three and four-bedroom units.
Monaghan is pleased with how many units have been sold over the past year.
“To be honest, I had no idea how long the process would take,” he says. “In the beginning, I was concerned about flooding the market. But the real estate company did an excellent job listing just four at a time, while still making it possible to see other units if someone was interested.”
Monaghan says the LPN has been great to work with.
“The staff there has moved people around on rentals to help make showings possible, which hasn’t been an easy process. Lake Panorama Realty also has been great. They’ve done most of the yeoman work.”
The demise of the Clover Ridge Interval Owners had an impact on the Clover Ridge Homeowners Association, which is made up of the private owners of townhomes and motel rooms along Karen Drive. For instance, timeshare association employees also handled Clover Ridge HOA maintenance. Since those jobs were eliminated in September 2019, the HOA had to make other arrangements.
In addition, the timeshare association paid about $84,000 per year to the Clover Ridge HOA in dues. Delinquent fees now are being paid to the HOA each time a unit sells, which average $6,000-$7,000 per unit.
Also brought up to date as timeshare units are sold are delinquent property taxes that haven’t been paid to Guthrie County since September 2018. Those payments are in the $7,500 to $10,000 range for each unit.
As units sell, there is less rental income to pay ongoing bills. So the federal judge overseeing the dissolution required an escrow account be established to hold the net sales proceeds. That account was used to create a line of credit so bills can continue to be paid.
The units sold so far are being used in a variety of ways. Some have become full-time residences, with others being used as part-time residences. Some have been enrolled in the lodging rental program with Lake Panorama National.
“We have gained four two-bedroom units and one studio unit, and we are expecting at least one more two-bedroom unit to enter our program,” says Royce Shaffer, LPN operations manager. The LPN already had contracts with private owners of four two-bedroom units and one studio unit, plus 27 guesthouse rooms.
“Having these units onsite is an important part of our sales pitch for stay-and-play golf packages. These groups like to come in for two or three days, play golf, eat, drink and not have to leave the property,” Shaffer says “With more of these units, we are able to book more of these packages, which increases revenue in both our golf and restaurant departments.”
Lake Panorama Realty is planning an open house Sunday, Oct. 18, featuring the remaining units. Everyone who tours the units that day between noon and 2 p.m. will be entered into a drawing for a free weekend stay.
Once the final unit is sold, a proposal will be presented to the judge to pay all legal bills, pay off the loan of more than $120,000 the timeshare association still owes for construction of the pool at the LPN, and pay off its current line of credit.
Once those payments are approved, any funds left will be shared between about 15 timeshare week owners who are considered in good standing, because they paid their 2019 maintenance fees.
With only a few units left to sell, these owners are getting closer to the day when they find out if their gamble paid off.
By Susan Thompson
Lake Panorama Times
It’s been nearly two years since the decision was made to dissolve a timeshare vacation operation that had been at Lake Panorama since the late 1980s. As of late September, just five units of the original 22 owned by the Clover Ridge Interval Owners Association need to be sold before the final steps can be taken.
Legal proceedings to dissolve the association began in early 2018. At one time, the Clover Ridge Resort had about 1,100 owners from all over the United States. They purchased a particular week in one of the 22 units owned by the association and received a recorded deed.
While occupancy rates stayed strong, financial decline occurred because owners stopped paying annual maintenance fees. Changes in the way people travel led to fewer people owning timeshare weeks.
Barry Monaghan had been a Clover Ridge timeshare owner since 1991 and a member of the Clover Ridge Interval Owners board since 2000. He’s been president of the board since 2013 and has been managing the dissolution process.
“One of the great moves we made in the fall of 2018 was to enter into a rental agreement with Lake Panorama National. That helped us generate some income during the time before we could put the units on the market,” Monaghan says.
“Over the five months of that original contract, our net income was about $20,000 per month,” he says. “That made it possible for us to keep current on what was owed in LPA dues, and also to Panora Telco and the Guthrie County REC.”
Lake Panorama Realty began listing the units for sale in August 2020. Since then, all the two-bedroom units on the west side of Karen Drive have been sold, plus nine units on the east side. Those that remain include both three and four-bedroom units.
Monaghan is pleased with how many units have been sold over the past year.
“To be honest, I had no idea how long the process would take,” he says. “In the beginning, I was concerned about flooding the market. But the real estate company did an excellent job listing just four at a time, while still making it possible to see other units if someone was interested.”
Monaghan says the LPN has been great to work with.
“The staff there has moved people around on rentals to help make showings possible, which hasn’t been an easy process. Lake Panorama Realty also has been great. They’ve done most of the yeoman work.”
The demise of the Clover Ridge Interval Owners had an impact on the Clover Ridge Homeowners Association, which is made up of the private owners of townhomes and motel rooms along Karen Drive. For instance, timeshare association employees also handled Clover Ridge HOA maintenance. Since those jobs were eliminated in September 2019, the HOA had to make other arrangements.
In addition, the timeshare association paid about $84,000 per year to the Clover Ridge HOA in dues. Delinquent fees now are being paid to the HOA each time a unit sells, which average $6,000-$7,000 per unit.
Also brought up to date as timeshare units are sold are delinquent property taxes that haven’t been paid to Guthrie County since September 2018. Those payments are in the $7,500 to $10,000 range for each unit.
As units sell, there is less rental income to pay ongoing bills. So the federal judge overseeing the dissolution required an escrow account be established to hold the net sales proceeds. That account was used to create a line of credit so bills can continue to be paid.
The units sold so far are being used in a variety of ways. Some have become full-time residences, with others being used as part-time residences. Some have been enrolled in the lodging rental program with Lake Panorama National.
“We have gained four two-bedroom units and one studio unit, and we are expecting at least one more two-bedroom unit to enter our program,” says Royce Shaffer, LPN operations manager. The LPN already had contracts with private owners of four two-bedroom units and one studio unit, plus 27 guesthouse rooms.
“Having these units onsite is an important part of our sales pitch for stay-and-play golf packages. These groups like to come in for two or three days, play golf, eat, drink and not have to leave the property,” Shaffer says “With more of these units, we are able to book more of these packages, which increases revenue in both our golf and restaurant departments.”
Lake Panorama Realty is planning an open house Sunday, Oct. 18, featuring the remaining units. Everyone who tours the units that day between noon and 2 p.m. will be entered into a drawing for a free weekend stay.
Once the final unit is sold, a proposal will be presented to the judge to pay all legal bills, pay off the loan of more than $120,000 the timeshare association still owes for construction of the pool at the LPN, and pay off its current line of credit.
Once those payments are approved, any funds left will be shared between about 15 timeshare week owners who are considered in good standing, because they paid their 2019 maintenance fees.
With only a few units left to sell, these owners are getting closer to the day when they find out if their gamble paid off.