Mosaic at Blue Refurbishment

Why do we have to do anything?

The reputation and ability of Mosaic to meet guest expectations is diminishing. Increasing amounts of negative guest feedback and price resistance have all been factors in moving this project forward. With high prices come higher guest expectations.

This refurbishment will position Mosaic to meet and exceed the expectations of guests and permit BMR as your rental manager to continue commanding market leading rates for properties on the rental program.

Why do we have to do kitchens and bathrooms?

In addition to the previous answer, there is also a question of form over function. Even though an item may still function it is necessary to also ask if it is current in terms of guest expectations. Guests comment frequently on the dated nature of the bathrooms and kitchens. Guests are heavily influenced in terms of their experiences by the presentation of these components within a hotel. Guests actively compare unit fit and finish to what they have experienced elsewhere and in Canada even mid-scale urban and suburban properties are utilizing world class finishes.

Aside from a dated appearance, tubs are failing throughout the building and cabinet doors are showing significant signs of wear and tear in several units.

What if I do nothing or do not consent to the refurbishment?

Unfortunately, your unit will have to come off the Rental Program as it will no longer meet the hotel standard and it will be unable to generate revenue for you.

When will my unit come off the Rental Program?

Your unit currently meets the hotel standard for Mosaic and will remain on the Rental Program until project work commences in the building. Once this work starts, your unit will no longer be eligible to participate in the rental program.

Do I have to provide notice to BMR to come off the Rental Program?

Under these circumstances i.e., your unit not meeting the hotel standard, you do not have to provide us with notice. Closer to the commencement of the project we will provide formal notice to you along with guidance and information that explains the process for leaving the program.

Can I rent my unit myself or through someone else?

Once the project commences, units that are not proceeding will no longer be able participate in the Rental Program and generate any revenue. Owners appointed Blue Mountain as the exclusive rental manager at the time of purchase and are unable to rent any other way.

This aspect of the Rental Management Agreement (RMA) protects the interests of all owners and applies regardless of whether your unit is on the Rental Program. This provision supports the intended use of your property within a resort environment and protects the integrity of the hotel operation and its ability to drive revenues to the rental pool. This restriction is fundamental to the success of the resort and your revenues and as such this aspect of the RMA is embedded in your condominium corporation’s Declaration documentation.

If I do not refurbish, can I stay on the rental program or rent my unit privately?

The answer is basically no.

As referenced in the Declaration for your condominium, under the terms of the RMA, units must be maintained at a standard determined by the Rental Manager. That standard is derived from industry knowledge of what is required to meet guest expectations and one that positions the hotel in such a way that it remains competitive and consistent with comparable properties.

Once a unit no longer meets that standard i.e. when refurbishment begins, it would no longer eligible to be part of the rental program.

The RMA is clear that owners may not rent their units privately under any circumstances.

If I don’t refurbish what will the impact be on my ability to sell my unit?

Owners considering selling an un-refurbished unit in a refurbished building will generally find that such a unit will not command the same price as its market competitors and will spend more days on the market. Experience suggests an un-refurbished unit is a less attractive prospect to a potential purchaser because that unit’s ability to quickly generate revenue is compromised.

Why doesn’t BMR pay for half; they get half the benefit?

Blue Mountain has invested significantly into the overall viability of the resort in many areas of resort operations and capital infrastructure. Areas of considerable operational expenditure include housekeeping, maintenance, front desk, security, marketing, sales, IT, human resources, etc. Infrastructure investments in lift operations, activities, conference facilities and logistical infrastructure all benefit the rental pools.

BMR does not own assets within the condominiums (save for the administrative spaces) and is only retained on contract as Rental Manager. As such, it is unable to make direct investments in this area but does all it can to build the vitality of the resort (including the performance of the hotels) using BMR dollars through increasing the attractiveness of the resort as a destination year-round and across all demographics.

Can I decide to do the refurbishment later?

While we would make all reasonable efforts to accommodate, this may not be possible for some time (due to resource availability and other project priorities) and any efforts to do so will incur significant increases in costs over those estimates we have just provided. This is due to the loss of bulk purchasing discounts and diminished economies of scale for contractor pricing, etc.

A compounding consideration is that if an owner refurbishes late, the clock counting down to the next round of refurbishments has already been ticking. The refurbishment schedule does not start again at the time an individual unit refurbishes. Delayed refurbishment translates into a shorter period of utility and opportunity for return on the project; the more delay that is involved the bigger that disadvantage becomes.

When will the refurbishment take place?

The refurbishment is scheduled be completed in two phases. Proposed dates: Phase one (floors 3 and 4) to start September 2024 with a completion date of December 2024 and phase two (floors 1 and 2) to start March 2025 with a completion date of June 2025.

What happens to the old furniture?

All items being removed from the rooms are the property of owners. You will be given the option to pick up your items if it is your wish. You will be sent an owner pick up information package that will explain our standard process for managing owner pick-up.

I have further questions. Who can I speak to?

Homeowner Services is happy to take your call or receive your email. Please reach out to us at any time.