By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

PROPERTY owners at the Abaco Club on Winding Bay do not believe the development is worth “anywhere close” to the $28 million price tag its current owner, Marriott Vacations Worldwide, is asking for.

US attorney Todd Soloway, who is representing the homeowners, confirmed the group will forge ahead with their lawsuit for “at least” $10 million in damages against Marriott Vacations Worldwide despite the latter’s offer to sell it to them.

Confirming to Tribune Business that the offer had been made “in the last few weeks”, Mr Soloway said: “They have offered $28 million. I think that the property owners are considering the offer, but it’s their opinion that the property is not worth anywhere close that. That’s just their opinion.”

The existing Abaco Club owners say the offer was made after Marriott Vacations failed to give them an opportunity to acquire the property before it was placed on the market last year.

Marriott Vacations, in a 10-Q filing with the Securities & Exchange Commission (SEC) in mid-2012, had revealed: “We also recently made the decision to remove the Ritz-Carlton brand from one of our luxury properties, The Abaco Club at Winding Bay in the Bahamas, after concluding that global economic conditions have rendered the property unsustainable under the brand from a business perspective.

“Our plan, consistent with our overall strategy to sell excess luxury inventory, is to pursue a bulk sale of the entire asset.”

In their recently filed lawsuit, the Abaco Club homeowners are seeking a court injunction barring Marriott Vacations from selling the property, based upon their claimed rights with respect to acquiring lots/homes there.

The homeowners contend that in its $28 million offer notice, Marriott Vacations does not disclose deferred maintenance obligations; liabilities for membership deposits and underfunded reserves; or future capital injection requirements, which the members believe substantially affect the club’s marketability and value.

More than 30 owners are participating in the lawsuit against Marriott Vacations and The Ritz?Carlton Hotel Compan, alleging “desertion” of the property.

The legal action was filed in the Circuit Court of the Ninth Judicial Circuit in and for Orange and Osceola Counties, State of Florida in Orlando, on June 28, 2013. “Right now they’re seeking at least $10 million. It might be much higher than that,” said Mr Soloway.

According to a copy of the lawsuit obtained by Tribune Business, the homeowners allege that Marriott Vacations Worldwide Corporation, The Ritz?Carlton Hotel Company, The Abaco Club RC Ltd and the Abaco Club Association have failed to operate and maintain the club at a first ?class, five-?star level, as well as to deliver the high?-end amenities, including a golf course that would rank among the top 100 in the world.

The property owners claim that “in spite of defendants’ clear obligations to plaintiffs to maintain the Club, they have intentionally understated the Club’s annual expenses because defendants are the largest funder of the Club’s maintenance”.

The homeowners also allege that the club has been “left to fall into a state that is not commensurate with a five-star property and that jeopardises each plaintiff’s investment”.

According to the lawsuit, in or around early January 2013, Ritz Carlton’s flag and services were removed from the Abaco Club.

“The plaintiffs later learned that defendants’ decision to remove Ritz-Carlton was part of a larger plan to abandon the Club and attempt to sell it to the highest bidder without regard to plaintiffs’ right of first offer, and without regard to the promises of ‘barefoot luxury’ and casual elegance promised by defendants,” the lawsuit states.

Marriot Vacations has reportedly filed a motion to have the lawsuit dismissed.

The Abaco Club on Winding Bay is a 534?-acre private “island oasis”, which has been marketed as a luxury resort. The 18 ?hole golf course acts as the property’s centerpiece.