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May 20, 2013 By Robert Wilder Comments 3
News
07.06.2011
4 Comments
At the same time, many of the services that were selling points for the community dropped, Mathew says.
"Lunch and dinner were cut from six days a week to four," Mathew tells SFR. "Gym and fitness services were completely eliminated. Van transportation (to the Albuquerque airport) was curtailed."
As this was happening, RainbowVision Santa Fe started using club fees for its overall expenses, something the condo owners were unaware of.
As a result, many of them, including Gayner, stopped paying the fees. When a group of owners filed the arbitration case, they sought damages for "overpayment of services," according to the ruling. The arbitrator eventually came in their favor, ruling that each owner is "entitled to the difference between the amount paid" and one that "best estimates the value of the services actually received."
But the filing for Chapter 11 will likely drag out the process of any payback.
Jane Steinberg, a spokeswoman for RainbowVision, wouldn't comment on the dispute other than saying that "prices do go up over time."
But Kenneth Boiarsky, an attorney who represented RainbowVision Santa Fe during the arbitration process, says the ruling isn't good for either of the parties involved. He points out that the club membership agreement must have a reasonable relationship between the fees charged and the cost of the services.
"The whole crux of the opinion is that the membership agreement is tied to services, not costs," he tells SFR. "The decision doesn't look at cost — instead it adopts a standard that has nothing to do with cost."
Condo owners up in arms over RainbowVision Santa Fe
The condonunium development, which owes its owners money, filed for Chapter 11 last week
By Joey Peters
Last week, LGBT-focused retirement community RainbowVision Santa Fe filed for Chapter 11 bankruptcy protection, citing "nonpayment of contractually-required fees" by some of the condo owners as a reason in a press release.
It also points to a recent arbitration ruling as a cause. The ruling, made on June 2, says RainbowVision Santa Fe owes condo owners compensation for breaching a contract with them.
The condo owners are in dispute with the condominium development over rising service fees. The problem, they say, is that as service fees went up over the years, their actual services went down.
"That's a cyclical thing that goes on here at RainbowVision," Jan Gayner, a resident, tells SFR. "They give you things and then they take them away."
Frank Mathew, a lawyer representing the condo owners, says bad business decisions since its 2006 opening led to this moment.
"The developer was relying on a rising real estate market and a healthy rental market," Mathew tells SFR.
At the same time, many of the services that were selling points for the community dropped, Mathew says.
"Lunch and dinner were cut from six days a week to four," Mathew tells SFR. "Gym and fitness services were completely eliminated. Van transportation (to the Albuquerque airport) was curtailed."
As this was happening, RainbowVision Santa Fe started using club fees for its overall expenses, something the condo owners were unaware of.
As a result, many of them, including Gayner, stopped paying the fees. When a group of owners filed the arbitration case, they sought damages for "overpayment of services," according to the ruling. The arbitrator eventually came in their favor, ruling that each owner is "entitled to the difference between the amount paid" and one that "best estimates the value of the services actually received."
But the filing for Chapter 11 will likely drag out the process of any payback.
Jane Steinberg, a spokeswoman for RainbowVision, wouldn't comment on the dispute other than saying that "prices do go up over time."
But Kenneth Boiarsky, an attorney who represented RainbowVision Santa Fe during the arbitration process, says the ruling isn't good for either of the parties involved. He points out that the club membership agreement must have a reasonable relationship between the fees charged and the cost of the services.
"The whole crux of the opinion is that the membership agreement is tied to services, not costs," he tells SFR. "The decision doesn't look at cost — instead it adopts a standard that has nothing to do with cost."
Photo courtesy of grayprideparade.com
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I am appalled to read that Mr. Boiarsky, an attorney representing the Rainbow Vision LLC, contends that Judge Hall's arbitration decision is "not good for either od the parties involved." As an Independent Owner at Rainbow Vision since 2007 I beg to differ. I applaud Judge Hall's decision.
As to Mr. Boiarsky's contention that the Judge's decision "doesn't look at cost" is absurd. Obviously with so many services eliminated or cut, the cost to members should not have increased over 60 percent. Independent Owners who stopped paying fees did so only as a last resort after two years of failed meetings and mediation.
In addition, the membership fees of Independent Owners constitues only a small portion of the company's indebtedness. The Independent Owners who are the heart of the Rainbow Vision community, are hardly responsible for the management's poor business plan and financial decisions.
My impression of Rainbow Vision during five-week visit in 2009 was that the management and administration were sloppy, when not just plain chaotic. With the revolving door staffing pattern and the cult of personality management atmosphere, it is amazing that it has taken this long to fold. A great shame for those residents who believed that they were part of a solid, seriously managed business venture.
Both parties agreed to abide by whatever decision was reached by Judge Hall in the arbitration proceedings. Is one side now trying to evade that agreement? Ms. Steinberg has made statements to the press which were, to put it charitably, misleading. I hardly think the Independent Owners can be called the "bad guys" here, by any stretch of the imagination.
I thought of buying into the condo complex for retirement. But monthly fees in excess of $1200!?! Ridiculoous. And mandatory payment of meals when the units have full & modern kitchens... Not good business to attract residents. I watched the sell-job the original developers foisted on the city. It's a wonder they lasted this long.