It isn't easy to overcome the stigma caused by a bankruptcy, especially one that involved hundreds of Sweetwater timeshare owners, but thanks to reorganization and hard work by Owners' Resorts and Exchange Inc. the bad memories are just a thing of the past.
Colleen C. Freeman, ORE president, said each of 17 resorts is out of debt, renovation at some of the resorts has been completed and other refurbishing projects have been started. She said overcoming negative publicity has been a long process.Founded in Utah in 1969, Sweetwater was one of the first companies to offer vacation ownership at multiple locations, selling everything from limited partnership interests to deeded intervals. In the 1970s and early 1980s Sweetwater grew to include resort properties in Utah, California, Hawaii, Texas, Wyoming and Mexico.
Sweetwater ran into financial trouble in the early 1980s although the money was flowing in at a rapid rate. Apparently, the company overspent and made no provisions for money needed in the future, Freeman said.
In September 1983, Sweetwater filed for reorganization under federal bankruptcy laws, Freeman said, and the court later approved a plan to recognize owners' rights through a Master Homeowners Association, which represented homeowners associations from each resort.
From June 1984 to October 1987, Sweetwater attempted to provide management and marketing services at the resorts, but later officials determined they could no longer perform the duties for the MHA and defaulted on the plan. MHA officials entered into a settlement and purchased the records and computer system from Sweetwater, and ORE set up shop at 404 E. 4500 South on Nov. 2, 1987.
Freeman said it was a difficult time managing the resorts to see the timeshare owners got the required services during the changeover period. Now, ORE has 20,000 weeks of vacation time at 17 resorts to administer and it does it through four area managers, each of whom is responsible for several resorts in the area and reports to an operations manager.
Each timeshare owners association has a delegate to ORE. "It's like managing 17 different corporations," said Freeman, but the present management structure is doing fine. Each association can make a special assessment to its owners or obtain a special loan to raise money to refurbish the resort units.
For example, the homeowners at Park City recently completed a $1.2 million renovation for their units, there will be a major renovation at the resort in San Diego and work has started on a $500,000 remodeling project in St. George.
"The most difficult aspect of this business is managing the money," said Freeman, mainly because her comptroller prepares 17 financial reports every month, one for each resort. Her personnel manager not only deals with people, but oversees the collections and owner records department.
A data processing manager runs a modern computer system that tracks each of the owners and the weeks they have reserved at each resort. A vacation services manager uses the computer to track bonus time and make exchanges and trades at various resorts. She also handles customer service and produces the ORE "Time to Share" magazine.
Freeman said ORE doesn't get involved in sales and noted that most of the vacation time at the resorts is sold. "Time to Share" has a section where people advertise to sell their timeshare.
In order to prevent a repeat of the Sweetwater situation, Freeman said ORE belongs to the American Resort and Residential Development Association, which requires certain standards of its members. Freeman is a member of the group's management council and meets three times per year with others in the industry.
"We work on a code of ethics, quality, high standards and consistent marketing," Freeman said.