buyer & real estate collateral
hotelterrajacksonhole.com | 855.318.8707 3335 West Village Drive Teton Village, WY 83025
General Ownership infOrmatiOn Property Management As provided for in the Declaration of the Covenants, Conditions, and Restrictions for the Hotel Terra Condominiums (Declaration), the Terra Owners Association (HOA) has contracted the administration of condominium association business, maintenance, upkeep and operation of the building to Terra Property Management Company (Terra PMC) in accordance with the “Agreement for Administrative and Management Services Contract� for an initial 10-year period with appropriate performance standards.
Rental Management Terra PMC will operate the condominium as a full service hotel, subcontracting with a professional hotel management company to run the daily operations and sales and marketing program, providing you with first class service and amenities. Each Unit Owner has the option to contract with Terra PMC to manage their individual unit rentals, use a different company, or not rent their unit at all. Because of the condominium structure, owners are automatically members of Terra Owners Association and pay Common Expense Fees to cover the costs associated with maintaining the building, operating the facility, and funding capital replacements. These HOA fees are as follows:
a) General Common Expenses As described in the Declaration, General Common Expenses (GCE) are the costs associated with maintaining and operating the building on behalf of the HOA and are including, but not limited to, utilities, maintenance and cleaning of the common areas, general equipment maintenance and annual inspections, upkeep of linens, terry, and housewares, telephone, cable/premium television, property insurance, audit, HOA management, and accounting services. Our 2016 rate of billing will be estimated to be approximately $55/hour for maintenance and $35/hour for housekeeping.
b) Hotel Services Fee As described in the Declaration, the Hotel Services Fee is a required HOA fee and covers an allocated portion of the cost to provide standard hotel services at a four diamond level to all owners of Hotel Terra, such as Owner and owner guest reservations, front desk and concierge services, valet, food and beverage, spa, and general management.
c) The Reserve Fund (Reserve) The Reserve Fund is a capital reserve set aside for the replacement of all furniture and soft goods, as well as longterm maintenance items for the building and infrastructure. Items included are lobby and common area furniture, in-unit furniture as specified in the furniture inventory, draperies, carpeting in the Residential Units and common areas, and long term building maintenance items such as exterior paint, roof repairs, hot tub and pool, etc. This reserve is extremely beneficial because keeping the units maintained to an equal and specific standard ensures that there will be no issues related to wear and tear setting them apart from each other. The amount of the Reserve Fund will be determined on an annual basis and approved by the HOA. A portion of the Reserve Fund, currently estimated at 75%, will be assessed to the residential unit owners only for their in-unit furniture, soft goods, and carpet, with the remaining amount assessed to both residential and commercial unit owners for common area furniture and carpet and long term maintenance items. Commercial unit owners will be responsible for their own furniture replacement.
Quarterly Statements Terra PMC will provide quarterly financial statements to the owners, detailing unit usage and assessments, and, if the owner utilizes Terra PMC as their rental agent, rental income received during that period. If you are in the rental program, the final balance due or monies owed to the owner will be calculated after the deduction of the required HOA fees and other charges, such as owner housekeeping fees, maintenance fees, and in-house charges. If monies are owed to the owner, Terra PMC will mail the owner a revenue check. In the event revenues earned in the previous quarter did not cover the amount owed including HOA fees, Terra PMC will mail the owner an invoice for payment and owners are expected to pay that invoice within 20 days unless otherwise noted in the quarterly mailing. Terra PMC may, at its sole option and on a case by case basis, carry any negative balances forward to the following quarter depending on their cash reserves at the time.
Furniture Terra PMC, on behalf of the Terra Owners Association’s Board of Directors, will manage the replacement of all furniture in the building from the Reserve Fund, including the resale of the furniture when being replaced to further fund the reserve. Owners cannot remove or replace the Unit furniture without the written consent of the Association Board of Directors, per the Declaration. If an Owner sells the Unit, the furniture shall remain with the Unit and be sold with the Unit.
Owner Use An owner may use their unit whenever they like. Owner calendars are mailed annually to offer owners the ability to reserve their unit and to share with owners the Peak Demand Periods associated with levels of high occupancy for the Hotel. Terra PMC will then ensure that the unit is prepared for your owner stay.
Charging Privileges When an owner arrives at Hotel Terra for an overnight stay they are required to register at the front desk to initiate their charge privileges and receive their keys. Charges made during an owner stay will be billed to the room and can be settled up upon departure or applied to the owner’s account and billed quarterly. For times when not in residence, owners will be issued a Terra Resort Group Owner Card. Owners may use the card to charge purchases at any time in the Osteria CafÊ, restaurant, spa, or retail shop. The restaurant, Il Villagio Osteria, and the ski/snowboard shop, Jackson Treehouse, are operated by third parties and do not accept the TRG Owner Card at this time.
Housekeeping During an owner stay, including that of an owner guest, housekeeping services will be provided daily in accordance with the cleaning guidelines determined by Terra PMC. Owners will be charged a daily rate, as well as a check-out rate. If an owner chooses to forgo housekeeping service one day, the fee will still apply. Deep cleans are conducted every spring and fall at a minimum and include, but are not limited to, cleaning of the slate flooring, complete dusting, a full appliance clean, and dry cleaning of all linens and draperies. Deep cleans do not include carpet cleaning which is based on the condition of the unit. Carpet cleaning, inside each unit, if needed, is billed separately to each owner. The 2016 schedule of fees for required housekeeping and linen services costs by unit type is detailed in the following chart. All housekeeping fees are reviewed and adjusted annually, and are billed directly to each unit owner.
2015 Housekeeping Files 2016 Terra Housekeeping Files Room Type
Daily or Midstay
Check-out
Deep Clean
Terra Guestroom
$35
$69
n/a
Studio - Full Kitchen
$35
$80
n/a
1 Bedroom / 1 Bath
$52
$104
$300
1 Bedroom / 2 Bath
$69
$122
$315
2 Bedroom / 3 Bath
$122
$156
$455
3 Bedroom / 3 or 4 Bath
$156
$224
$595
Technology In order to provide state of the art service to owners and guests, Hotel Terra integrates advanced technology with the televisions, internet, and telephone services. Flat screen televisions appoint every room and through a contract with Guest-Tek, Owners and guests may enjoy countless movies “On Demand,” as well as other advanced technologies. Internet based telephones offer many expanded services. Wireless internet is available throughout the hotel, and owners receive a VIP password for high-speed access upon arrival. terra property management company
Hot Tub/Fitness/Spa The entire sixth oor of Hotel Terra is dedicated to the Chill Spa. Chill Spa offers 6 treatment rooms, the Sky Lounge, men’s and women’s locker and steam rooms, and a rooftop hot tub and terrace for the exclusive use of Owners, owner guests, renters of units, and spa guests.
Parking Hotel Terra has the right to use 30 parking spaces in the main Jackson Hole Mountain Resort lots. There are 19 heated indoor parking spaces on the lower level of Hotel Terra, 15 of which were sold to individual unit owners. Spaces owned will be designated as a Limited Common Element—Parking, and will be licensed to the unit and, as such, will run with the land in the event of a transfer in ownership of the unit, and they will be managed by Terra PMC on behalf of the owner. The remaining indoor parking spaces will be Limited Common Elements as de ned in the Declaration and will be managed by Terra PMC on behalf of the HOA so that we can offer valet services to both guests and Owners. Valet service will be provided to Terra owners and guests when in residence, and renters.
Additional Owner Benefits As an Owner at Hotel Terra, we are pleased to extend the following benefits: 1. 2. 3. 4. 5.
Discounted hotel rates at Terra for friends, family, and referrals 20% discount on Terra retail items 20% discount on treatments in Chill Spa 10% discount on entire Terra Café Bill Discounts on multi-day ski lift tickets when 14 days advance notice is provided, 6. Private owner locker at Hotel Terra for skis, bikes, clothes, or large items, 6. Complimentary valet parking while in residence, for owners only 7. Complimentary ski valet while in residence. Owner benefits, HOA Fees, and Housekeeping/Maintenance Fees are subject to change and are reviewed annually.
Rental PRogRam oveRview Your Choices Hotel Terra will be operated as a full-service luxury hotel, providing you and your guests with all of the amenities you would expect from an upscale, four diamond lodging facility. These operations will be provided by Terra Property Management Company (Terra PMC) in conjunction with Noble House Hotels. As an owner, you have the opportunity to capitalize on this hotel structure by placing your Unit in a rental program. You have the option to contract with Terra PMC, utilize another rental company, or not rent out your Unit at all.
Management Noble House Hotels is a family-owned & operated hotel group with a portfolio of 16 independent, boutique properties nationwide. Noble House Hotels manages the reservations, concierge, valet, sales, maintenance and housekeeping, food and beverage, information technology, Chill Spa, and daily operations of Hotel Terra with years of industry expertise and knowledge. In addition, Noble House brings wide-spread marketing reach, robust sales platform, and strategic revenue generation models. All Noble House Hotels, including Hotel Terra, operate at AAA, 4-diamond + levels.
Summary of Services In order to provide hassle free membership for you, Terra PMC and Noble House Hotels offer many benefits: • • • • • • • • • • • • •
Director of Property Management and an Owner Relations Manager acting as the Owners’ personal liaison. Corie Bauman and Anne Jones are available to review the rental contract with you, take your personal reservations, show you their favorite ski runs, and of course answer any questions you may have. Hotel management offices located in the same building as your valuable vacation home. Noble House Hotel’s experienced hotel management company to operate Hotel Terra efficiently while providing exceptional customer service and quality standards. Knowledgeable reservations staff available seven days a week to book the units for Owners and guests, utilizing the latest information technology, revenue management strategies, and sales and marketing outreach to maximize unit rental revenues. Enthusiastic, savvy hotel sales and marketing staff to represent Hotel Terra worldwide and to further maximize the revenue potential of your unit. Terra PMC will provide all Owners with concise, easy to read quarterly rental statements with quarterly balances as well as a quarterly newsletter update. Regular inspections and electronic locks to ensure the safety of your investment. Full concierge services for Owners and guests. 24-hour bellman and valet services in season. Daily maid and linen service for Owners and guests. Charge privileges for Owners. 24-hour front desk with check-in, check-out service on a year-round basis unlike other local management companies.
Fees Paid by Terra PMC As outlined in the Declaration, all Owners pay the following Condominium Association Common Expense fees: • • •
General Common Expense Fee – Costs associated with maintaining the building, such as property insurance, management and accounting fees, utilities, linens and housewares, maintenance and cleaning of the common space. Hotel Services Fee (HSF) – An allocation of the costs associated with providing a base level of service and operations, such as the front office, concierge, valet, Chill Spa, Terra Café, administrative and general, and property management. Reserve Fund (Reserve) - The Reserve is money set aside for the replacement of all common area and in-unit furniture and soft goods, and carpeting, as well as long-term maintenance items.
If an Owner signs a Unit Rental Management Agreement with Terra PMC and makes their entire Unit available to rent 275 days or more per calendar year, Terra PMC will cover the costs associated with the Hotel Services Fee and 35% of the Reserve Fund on their behalf. However, the portion of the annual Hotel Services Fee paid by Terra PMC shall be reduced incrementally for owner usage if an Owner uses his or her unit more than 14 days during Peak Demand Periods (as such periods are defined annually by Terra PMC to be high occupancy periods). Please consult the Unit Rental Management Agreement, Article 4, Section 4.5, for additional details regarding Owner usage during Peak Demand Periods. As defined in the Unit Rental Management Agreement, the HOA Board, with the assistance of Terra PMC, will set the Reserve amount each year. The guidelines for establishing the Reserve amount will be a ramp up formula based on a forecast of future replacement costs and will be based on industry standard levels. If you prefer to not make your entire Unit available for rent 275 days or more, you may still utilize our services, however, you will be responsible for all of the above condominium fees, per the Declaration.
Third Party Fees Third Party Fees are defined as any travel agent fees, credit card fees, and third party booking fees that are charged to the property for booking reservations. There will be many reservations booked by third parties, including travel agents, travel wholesalers, group meeting planners, commission-based internet sites, etc., as well as many reservations paid with credit cards. A pro rata share of Third Party Fees will be deducted from Gross Rent, as described in the Unit Rental Management Agreement.
Rental Management Fees Owners who contract with Terra PMC receive 50% of the Adjusted Gross Rent generated by their unit rental proceeds. Adjusted Gross Rent is all gross unit room rental revenue less the pro rata share of Third Party Fees as specified in the Rental Management Agreement. Terra PMC will retain the other 50% as a management fee, which will be used to pay the following expense to operate a full service hotel at high occupancy levels. These include but are not limited to: • • • • • • • • • • • • •
Reservation department staffing, Marketing, advertising, promotional, and event sponsorship costs, Revenue management training and services, Housekeeping for guest rentals, Employee Uniforms Daily operations, including the Chill Spa and Osteria Cafe Hotel management fee and overhead, Ongoing management training, Information Technology infrastructure, upkeep, and software license fees, Replacement of hotel operating inventories, All hotel personnel wages, salaries, and benefits, All office and back-of-house expenses associated with a hotel, and Overhead and profit.
The benefit of owning a unit in a full-service hotel is that your revenue goals are more consistently achieved through the sales force and reservation system utilized by the hotel management company. We take care of the costs associated with running an operation like this so that your ownership experience is seamless. Our fees are extremely competitive when compared to typical management companies and we cover a majority of your costs, including the reserve payments, in most cases, with a much higher level of operating services.
Owner Use and Reservation Policy An owner in the Rental Management Program has the right to reserve their Unit for use by the owner, the owner’s family, or non-rent-paying guests. The owners must advise Terra PMC in writing annually when they want to use their unit and when it will be available for use as a rental. These requests will be handled via a calendar, which the owner will then fill out and return by the requested date. Terra PMC will then mail, e-mail or fax a written confirmation of the dates requested. We recommend owners confirm that the dates reserved are accurate. Terra PMC may rent the Unit for all periods the Owner has not reserved. If no notice is given to the Property Management Company, Terra PMC may accept reservations for all time periods. All reservations made by Terra PMC to third parties for time periods not specifically reserved by the Owner must be honored by both Terra PMC and the Owners. Owners that have lock-off units may reserve one portion of the Unit and rent the other portion simultaneously. Terra PMC will make every reasonable effort to facilitate the Owner’s request for additional personal usage if the Unit is not previously booked. If their Unit is already reserved with a confirmed reservation, Terra PMC has no obligation to move the reservation to a different unit.
Hassle Free Terra Property Management Company was established to provide our Owners with complete ease of Ownership. Terra PMC will handle all the accounting, bill paying, cleaning, maintenance, and furniture replacement associated with your Unit. You simply receive your quarterly statement and rental check and we do the rest. The only two expenses that you administer separately are your individual liability/contents insurance policy and real estate taxes. In addition, you will have round-the-clock representation in the form of on-site employees who will ensure that any problems will be resolved for you and your guests. Our Property Management department will work as your personal liaison with Noble House Hotels and will take care of your personal Unit reservations and requests.
For More Information For more details on the Terra Property Management Company and our rental program, please contact either Corie Bauman (corie.bauman@tetonresorts.com), Director of Property Management and Private Residences or, Anne Jones (anne.jones@tetonresorts.com), Owner Relations Manager.
Terra Owners assOciaTiOn 2016 Monthly HOA Fees Unit Type
Typical 1 Bedroom
Typical 2 Bedroom
Typical 3 Bedroom
General Common Expense Fee
$1222
$1816
$2554
Hotel Services Fee(1)
$2381
$3539
$4979
Reserve Fee
$246
$365
$514
(2)
Heat and Electric
Included
Water and Sewer
Included
Air Conditioning
Included
IP Telephone System
Included
Property Insurance
Included
Pool and Spa Fee
Included
Cable and Guest-Tek Fees
Included
Building Maintenance/Management Fee
Included
Accounting Services
Included
TOTAL MONTHLY DUES (For Non-Rental Program Units)
TOTAL MONTHLY DUES (For Units IN the Rental Program)
$3717
$5557
$7908
$1367
$2083
$2989
Notes: 1. An owner is under no obligation to rent his/her unit with Terra Property Management Company. If an owner elects to rent his/her unit with Terra PMC, the PMC will pay the Hotel Services Fee and the Reserve Fee on behalf of the Owner 2. The fees represented above reflect typical Terra Units. Actual HOA dues are based on the square footage of the individual unit.
Rental Program Frequently Asked Questions How are units prioritized in the rental program? Is there a procedure for equalization? Our goal is to equalize room night usage among units of similar type. Our reservation system is programmed to calculate room nights and prioritize them for booking purposes. However, when there are special requests such as location and bedding configuration, our reservation agents cannot rely on the system above to equalize usage. Therefore, we also monitor room nights on a monthly basis manually to ensure room night equalization to the best of our ability. Owner and owner guest stays are included within the room night total. The more you stay in your unit the less paid usage your units will receive, particularly during Peak Demand Periods. This should be taken into consideration when determining your personal usage patterns relative to any rental revenue goals you may have.
Is there pooling of rents? There is no pooling of rent. All rents are derived from actual unit occupancy and posted to the unit Owner’s account accordingly.
Will my unit be made-up and ready to go once I arrive? Yes, Owner Calendars are distributed once a year, and will be mailed on March 15th. Once you have made a reservation with Terra PMC, we will take it from there. Our job is to make sure your unit is fully stocked with all dishes, kitchen equipment, fresh linens, etc., and that your unit is heated and ready for your arrival and enjoyment.
How does housekeeping work? When you stay with us, your condominium will be automatically cleaned daily and upon your departure. There is nothing that you need to worry about. All housekeeping services are provided on a set-fee basis, as outlined in the General Ownership Information. You may request to not have service during your stay, but the housekeeping fees will be applied to your account regardless of the receipt of service.
How does maintenance work? Terra PMC is responsible for the upkeep of the condominiums including all required maintenance, administering maintenance requests, and performing annual preventative maintenance inspections and required unit repair. Unit owners are billed for all maintenance performed in their unit.
How are damage and/or theft treated in the unit? If there is any damage to your unit, Terra PMC will take care of repairing the damages and will make every effort to charge the rental guest accordingly. With daily housekeeping services provided to all rental guests and our relatively exclusive rate structure, we expect very little unit damage or theft; and to the extent it does occur, we expect to be immediately aware of it. If the money cannot be collected from the guest for any reason, Terra PMC will arrange for damage to be repaired and assure it is repaired expeditiously at the Owner’s or Owner’s insurance expense.
What kind of insurance do I need? Liability and contents insurance are required as per the Declaration (Article X Insurance, Section 10.1a and 10.1b). The liability insurance is there to cover you in case an injury occurs in your unit. The contents insurance is meant to replace your furnishings in the event of theft and/or damage due to casualty. On your liability insurance, Owners need to name Terra Property Management Company and Terra Resort Group as additional insureds, and provide Terra PMC with a copy of their insurance certificate.
Can we add personal items to our unit? The Declaration requires any modification to the unit furnishings to be submitted to the approval of the Owner’s Board of Directors. Such items are not included in the replacement reserves and we cannot be held responsible for theft or damage due to participation in the rental program. If you would like to have any personal items when occupying your unit, we suggest you arrange with us to store them in your Owner’s storage area when you are not occupying the unit.
Are we allowed to bring our dog to Hotel Terra? Yes, for owners only, but additional cleaning fees will apply during your stay.
How many lockers do I have and where are they located? Each unit is guaranteed one long-term storage locker located on the garage level. Please contact us on your first visit to be assigned your long-term locker.
If I sell my unit, can I take my furniture? No, these items run with the Unit. In other words, furniture and the reserve is part of the unit and will ultimately be sold as part of your unit to the buyer.
hotelterrajacksonhole.com | 855.318.8707 | 3335 West Village Drive Teton Village, WY 83025 HotelTerraJacksonHole
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