A Detective Story: A six story building constructed in 1970 was given an award in 1997 by ASHRAE
for its healthy environment; however, in 1995 the HVAC system had been re-engineered to increase the supply of
fresh air. By 1997, the year of its award, it was already a sick building. People in one end of the building were
feeling ill and complaining periodically of chemical odor. A company was asked to look at the building, but it
appeared to have no problems: they found consistently low counts of viable molds, total spores and atmospheric
bacteria, and good temperature and relative humidity. They took samples indoors, outdoors, and in both the complaint
areas and non-complaint areas. There was no visible mold growth anywhere, although MVOC concentrations were
much higher in the complaint area. Then they inspected the HVAC system and found something that had been overlooked
in previous building investigations: mist from a chillier tower that was being drawn into a principal air intake
duct only 30' away, along with mist from a condensate pan beneath the chillier tower. The intake duct was damp;
still, no mold growth was visible from the outside. When they opened up the ducts, however, they found mold, yeast
and bacteria colonies inside- not on the duct surface, but on the joint adhesive. That was enough to explain the
contaminated air inside. (One is reminded of the original incidence of Legionnaires’ disease, where the hotel's
air intake was also located close to the cooling tower. The airborne bacteria from the condensate pan there were
also sucked up by the air intake and delivered to the hotel guests inside.)
Hotels provide more than comfort for travelers: San Diego 7/19/1999
Visitors are getting more than they bargained for at some hotels and motels across the country. In addition
to room service, cable television and luxurious suites, travelers may be exposing themselves poor indoor air quality.
The San Diego Union-Tribune recently conducted its own investigation of indoor air quality in nine hotels
across the country. They used petri dishes, placed in three locations in the rooms and bathrooms, to measure bacteria
and mold growth accumulated over a two-night stay. Testing was done by Associated Analytical Laboratories,
New York, which found that four hotels had higher bacteria counts in at least one dish than would normally be found
in a typical suburban home. One of the biggest culprits of mold buildup is the vinyl wallpaper used to decorate
many hotels. It is a preferred wall covering due to its luxurious appearance and durability, but it also traps
moisture in the wall. Other causes of poor indoor air quality are inadequately maintained air-conditioning systems
and the cleaning products or ozone devices some hotels use to remove smoke and musty smells. However, the Union-Tribune
reports that the hotel industry is working to solve indoor air quality problems, spending $3.2 billion last year
on renovation and remodeling projects.
April 1, 2002 -- A study by the American Hotel & Lodging Association showed that more than
$68 million is spent annually by its members to mitigate problems caused by mold and mildew.
Jun. 13, 2002 -- Industrial hygiene experts have been called to the Jordan Grand Hotel at the
Sunday River ski area in Newry Maine following an outbreak of mold inside the 4-year-old building, the resort said
Wednesday. "We have some mold-related problems at the Jordan Grand Hotel," said Susan DuPlessis, a Sunday
River spokeswoman. The Sunday River mold was found last month when workers were starting renovations on the hotel's
steam room and discovered mold growing behind a wall, DuPlessis said. They recognized the potential for trouble
and notified management. The Jordan Grand Hotel has 186 rooms, some of which are owned through timeshare arrangements,
and a conference center. It is separate from the resort's older Grand Summit Resort Hotel.
July 26, 2002 -- A major Waikiki hotel builds a new $100 million tower. Shortly after opening,
the hotel finds mold in the rooms, with a nasty smell. Experts tell the hotel it needs to correct a million-dollar
construction and design problem.
The site was the U.S. Army's Hale Koa Hotel, next door, ironically enough, to Hilton Hawaiian Village. Earlier
this week, Hilton removed all guests from rooms at its newly built 453-room Kalia Tower because mold was found
in many of the rooms. Hilton came out with a public announcement and brought in experts to investigate. Details
are sketchy, but Hilton's mold problem sounds similar to a mold outbreak that hit the Hale Koa seven years ago.
Feb. 18, 2004 -- Mold is ugly, damaging and hard to clean. But the fungus that invaded Hilton's
Kalia Tower may not be as messy as the fight over who's to blame for its growth in the new Waikiki hotel high-rise.
Last week Hilton Hotels Corp. unleashed a litany of construction defect claims against 18 firms and professionals
who helped design and build the $95 million hotel tower completed in May 2001.
January 2004, ARDA’s Developments Magazine, the naked manager -- MOLD RUSH, Neil Hutchinson,
RRP -- Mold. Just hearing the word can conjure up a slew of questions in one’s mind. Recently we encountered
a mold problem at one of the (timeshare) resorts our company manages. A slow water leak had caused mold to grow
in a pool house that had been closed for the winter season. It is safe to say, we have all encountered our fair
share of the garden-variety mold, the kind you find on bread or cheese in your fridge. This, however, was our first
encounter with the dreaded make-you-want-to-run-for-the-hills mold that has become the single largest cause of
litigation in the United States over the past two years.
NEXT
WARNING
May 4, 2004, ARDA’s Convention and Expo, Las Vegas, Nevada -- 3:15 pm - 4:30 pm
- Interactive Roundtable Session for Resort Management #2 – Lori Entwistle RRP General Manager Scottsdale
Camelback Resort – MOLD – An emerging epidemic of litigation.
Warning!
Angels Camp, California 1997 -- 17.56.060 Transient occupancy tax applicable.
All time-share projects shall be subject to the provisions of the city's transient occupancy tax ordinance.
For the purposes of this chapter, the rent deemed payable on account of time-share occupancy shall be the rental
value of the unit or room(s) which accommodated such occupancy, which rental value shall be computed by determining
the pro rata share of the total purchase price of the time-share right or entitlement (whether or not involving
an estate or any ownership in real property) which share is allocable to the period of transient occupancy currently
involved, and adding thereto the total applicable operating costs including, but not limited to, the applicable
real and personal property taxes, plus the total amount of any and all fees, assessments, charges and expenses
(not including the previously referred to taxes) charged by the operator as attributable to the time-share occupancy
of the transient by whatever name such fees, assessments, charges or expenses may be denominated, whether occupying
fee, management fee or like name or otherwise. In making the computation referred to above of the pro rata share
of the total purchase price, in any case wherein the time-share right or entitlement is in perpetuity or for life
or otherwise not for a definite or ascertainable term, such pro ration shall be made upon an assumed term of thirty
years. (Ord. 356 §3, 1997)
December, 1998 State of Hawaii, Department of Taxation – Transient Accommodation Tax on Timeshare Occupancy…
Effective January 1, 1999, Act 156, Session Laws of Hawaii 1998, provides that the transient accommodations tax
is imposed on the occupant of a timeshare unit at the rate of 7.25 percent on the unit’s fair market rental value.
The Legislature found that timeshare interval owners are similar to transient individuals occupying hotels for
tax purposes.
February 2, 1999 Newport Beach, California Resolution No. 99__ A proposed resolution to establish the
ad hoc committee on resort tax policies.
BACKGROUND: In recent weeks, Council members have inquired about the manner in which the City levies
its Uniform Transient Occupancy Tax or "TOT." Council Members have raised the following questions:
Can the City collect TOT on "timeshare" or privately-owned resort units? If not, can the City determine
another way to collect non-property tax revenue on these types of resort uses? What percentage of timeshare units
is typically placed in a nightly rental pool and therefore subject to TOT? How can the City maximize TOT revenue
from these nightly rental pool uses. Is the City's 30-day "maximum stay" definition of a transient (subject
to transient taxation) appropriate? Can or should the 30-day definition be extended to 45 days or another period?
September 01, 1999 - Sharing Time in Vacation Ownership
– Mel Weinberger- Washington, D.C.: Having
originally begun in Europe in the 1960s, the timesharing concept quickly attracted the attention of developers
in the United States, many of which were operating under performing hotels or motels or unsuccessfully attempting
to sell "whole" ownership condominium units. By further legally subdividing condominium units into 52
"unit weeks" or "intervals," such developers were often able to sell a unit in timeshare increments
at a far greater aggregate profit than would have been realized through the sale of the "whole" unit
to a single purchaser who received a recorded deed, title insurance, and other indicia of real property ownership.
While the word "timesharing" normally conjures up images of tropical beaches and magnificent ski slopes,
any property, no matter where it is located, can be sold on a fractional or timeshared basis, unless local law
prohibits such use. Timesharing has typically been regarded as a vacation product targeted to the leisure traveler;
some urban timeshare developers are also attracting businesses that must frequently procure hotel accommodations
for their out-of-town visitors. Urban timeshare projects do face a unique set of legal and practical challenges,
including the need to establish a consistent methodology for allocating taxes, utility costs, insurance premiums,
and other amounts between the typically two or more separate uses of the single building in which the timeshare
project is located. Furthermore, zoning and transient occupancy tax issues can dramatically affect a developer's
plans to develop a timeshare project in a market that has experienced little, if any, timeshare development in
the past.
August 11, 2003 INDIO, California The Desert Sun, By Xochitl Peña. Land is currently
being cleared at Landmark Golf Club to make way for a 455-unit timeshare-like resort. City officials say
it’s the first of its kind in Indio and will help make Indio a tourism destination. "It gives the city … another
icon. Here’s a first class resort within the city of Indio," said Ken Weller, assistant city manager. He said
the money expected from the transient occupancy tax would give the city a financial boost. City officials have
projected making $15 million off the project from the tax over the first 10 years. While the project is referred
to as a "timeshare" resort in city documents, city officials are quick to point out that it is not a
traditional timeshare resort. Weller said people who buy into the company are able to use any of the company’s
resorts located nationwide. "It’s not a typical timeshare where you get a two-week stay. And it’s not considered
a hotel. It is a resort and they are homes, people are coming in and out on a per night (basis)," Weller said.
Based on the occupancy history with other resorts, Trendwest, the marketing company that helps develop the resorts,
anticipates an occupancy rate of 75 percent or more over the first 15 years. Since the project is not technically
a hotel, it is not obligated to pay the tax. However, under an agreement with the city, it will pay the tax and
officials are excited about the extra revenue. "The kicker to the whole deal is the applicant is not obligated
under (transient occupancy tax), under law, and this is something where they came to us and said we’re willing
to pay you TOT," Mayor Mike Wilson said. The city, however, will reimburse WorldMark, which will own and operate
the resort, 45 percent of the tax revenues collected for the first 10 years.
