As you know, the Ilikai Hotel – i.e., its current owner, iStar – has ZERO representation on the current Board. Not even one Director (of the nine Directors total). Is it fair? This is despite the fact that the Hotel/iStar’s stake at the Ilikai amounts to 28%. Not only that, but our Hotel is so important to all of us, since so many of us chose the Ilikai precisely because of the presence of the Hotel with its hotel atmosphere. For those owners who rent their units, the presence of the Hotel and its hotel atmosphere is believed to contribute positively to the rental income.
iStar did try to get one person, Leslie Love (who is iStar’s Senior Vice President), elected to the Board. In the fall (of 2009), there were vacancies in our Board of Directors. To fill those vacancies, the remaining Board Directors were the ones to vote. Leslie Love attended the meeting, talked about iStar, presented her case. The Board voted Leslie Love down. Instead, they chose Lavonne West and Bill Lawrence to fill those Director vacancies. Is it fair? It was like a massive slap in the face of iStar and our Hotel. What were they thinking? Parenthetically, Lavonne West then left on a cruise for over two months and wasn’t even here to contribute. The current Board Directors would claim that they did so so that they have “votes” for key Board decisions. But what have they accomplished or even try to accomplish since then? - Nothing.
What is my point? My point is that the current Board failed to be supportive of the Hotel and failed to show good will towards our Hotel and iStar. In fact, their refusal to allow even one iStar representative on the Board (despite iStar’s 28% stake at the Ilikai) most likely had a negative effect on the relationship between the AOAO and iStar. It is not fair to treat people like that.