Manager Approval Criteria – Anyone Know What They Are?

BAW4.2So for those of you who have actually taken a look at Whistler’s Phase 2 covenant on this blog you will find that under the covenant the City is required to approve the management at the Nita Lake Lodge Project. See the Whistler City Covenant here.

By way of background, Whistler has almost 5000 Phase 2 units that have some form of the City’s covenant attached to it. In fact, some rather prominent developments are also Phase 2. Examples would be The Four Seasons, the Westin, the Pan Pacific and the Hilton. All of these developments, including ours, have a City of Whistler covenant attached to the property (see the list of Phase 2 properties here).  While we don’t know what each covenant says (there are apparently some variations from one project to the other) we’ve been advised that in general the RMOW is expected to approve the management at many Phase 2 developments.

Here’s why this matters….

We are a group owners who are locked out of our Phase 2 property by another owner who unilaterally took over management of our project, the Nita Lake Lodge, used our rooms for over a year and didn’t pay us. He claims we must make our rooms available to him, at the economics dictated by him all because of the Whistler covenant.

That must sound strange. How could somebody do that and get away with it you ask?

This opportunistic investor simply counted on the City of Whistler to do nothing to administer and enforce their own covenant. Thus far his strategy has worked. After using our rooms for a long periods without payment and threatening us with lawsuits, this manager convinced several owners to acquiesce to to his terms. Several others owners were foreclosed on.

Why does this happen? If somebody runs a project inappropriately, should they just get to keep doing so without question? What about the rules that should protect the interests of others?

Here are a few questions to consider;

  • Was this manager ever approved by the City of Whistler as is set forth in their Phase 2 covenant?
  • If so, why would Whistler ever approve this kind of manager?
  • And if not, why doesn’t Whistler just say the covenant can’t be enforced by an “unapproved” manager ?
  • Did this owner assume management with the participation and consent of fellow owners?
  • Did he adhere to the rental pool management agreements (RPMAs) that he assumed and then terminated?

Some additional questions:

  • Does anyone know if the City of Whistler (RMOW) has ever approved a manager? If so, who?
  • And does anyone know what the criteria for passing or failing might be? Our guess is no one really knows. If the City could enlighten us as to how this approval process works, that would be progress.

In the meantime we are locked out of our rooms by a manager who says the City’s Phase 2 covenant allows hims to do so. The City of Whistler, who is the owner of this covenant says this is none of their business.

This is an interesting response from a City that encourages visitors and investors from around the world.

Until the City of Whistler stands up, administers their Phase 2 covenant, and stops abuse by self appointed managers, please beware.

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