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HomeMy WebLinkAboutExhibit 4Exhibit No. 4 TIMESHARE OPERATIONS PLAN 00, 1,�-u r OPERATIONAL CHARACTERISTICS OF THE HYATT REGENCY NEWPORT BEACH TIME SHARES Overnight Visitor Accommodations Involving Ownership There are a variety of overnight visitor accommodations which involve some form of ownership: condominium hotels, fractional ownership hotels, limited use ovemight visitor accommodations, and time shares. These are frequently confused, for clarification purposes, time share development shall be defined as: a facility wherein a purchaser receives ownership rights in, or the right to use, accommodations for a specific interval on a recurring basis for more than one year. Operational Characteristics Hyatt Vacation Ownership Inc. (HVOI), or an affiliate, would operate the time shares pursuant to an agreement with the time share association. Ownership in the Hyatt time shares would be granted through a deed, subject to a lease. The minimum time frame that could be purchased would be for one week, with a maximum consecutive stay allowed of up to four weeks. No portion of the project would be converted to full -time occupancy such as condominiums, apartments, or any other type of project that differed from the approved limited term occupancy time share resort without approvals from the City of Newport Beach and an approved amendment to the Coastal Development Permit. There will be reciprocal easement agreements between the hotel and the time shares for all roads and utilities. In addition, the timeshare clubhouse will have access to additional parking spaces in the vicinity of the clubhouse, through an irrevocable agreement. There will be a revocable easement for use of all pools by both hotel and time share visitors. Purchasers of time share interests ( "Owners ") may reserve their inventory by contacting Hyatt at 1- 800 - GOHYATT or by making reservations on line. Owners may choose to use, trade, rent or allow a friend to use their inventory. Time share owners would check - in at a separate desk to be located in the Time Share Clubhouse, time share owners would have use of all amenities and be able to use the hotel's room service. The Time Share Clubhouse would not be available for use by a time share owner if that time share owner was not in residence. The general public would have access to the spa and the fitness center, as part of the spa. CC &Rs will be developed specifically for the time share development. 1��\ Maintenance The time share development would be maintained and operated separately from the hotel. The time share association will contract with a Hyatt affiliate to provide management services. Hyatt will have a fiduciary responsibility to manage the association's interest on an efficient basis consistent with the Covenants, Conditions, and Restrictions (CCRs) to which the property has been submitted. This may or may not include contract services provided by entities other than the Hyatt Regency Newport Beach. However, the CCR's will require that the property be maintained in a first class manner consistent with the quality of the Hyatt Regency Newport Beach. Rental of Units Developed, unsold time share inventory will be available for rent by the public. If time share owners choose to offer their respective unit for rent, they may enter into a rental agreement with an affiliate of HVOI to make their inventory available for rent. If time share owners choose to offer to rent their respective units through a parry other than HVOI, the time share owner and HVOI must comply with the following restrictions: Time share owners will not discourage rental of their unit or create disincentives meant to discourage rental of their unit. The unit owner shall inform HVOI of all rental reservations made independent of HVOI. HVOI shall book all unit reservations, including reservations solicited by unit owners who offer to rent their respective units through a party other than the HVOI in the reservation database, a service for which HVOI may charge the unit owner a reasonable fee. In the event, a time share owner chooses not to rent their unit, but rather invite a guest to use the time share free of charge during the period of time the owner would use the time share, HVOI must be notified and a guest fee assessed.