A Florida based membership club that would provide members access to a global portfolio of luxury residences, exotic cars, and private jets, Grand Legacy Club planned to wholly own all of the club's assets.
According to the club's Frequently Asked Questions, "All club facilities and assets are owned by the Club without any debt or liens on any of the assets. The members own the Club exclusively and this structure ensures the perpetual longevity of the Club's existence and its proper management and operation. When accepted for the membership, each member receives a copy of a title insurance policy issued by TICRO Title Insurance evidencing their ownership of the club and the facilities."
For the $200,000 membership deposit and $11,000 in annual dues, members could access any of the club's amenities "24 hours a day, 365 days a year, subject only to maintenance requirements of certain facilities and adherence to the reservation procedures." The club planned to halt new membership sales after 280 equal memberships.
Unfortunately, the idiom "too good to be true" proved wise. The small print at the bottom of the club's website stated "Neither the information and materials described in this Website, nor any communication made or given in connection with any of the foregoing, may be deemed to constitute any representation or warranty or may otherwise be relied upon by any person or entity for any reason whatsoever."
As the club moved forward, it ran into a continual string of legal issues. In a court case against a local jet service provider, the club was called a "smoke and mirrors routine to lure investors."
Two of the club's executives, Thanos Papalexis and Daniel Gorman, both had significant legal problems prior to Grand Legacy Club including fraud. Several years before the club's launch, Gorman pleaded guilty to defrauding the Florida Citrus Commission out of $85,000 and Papalexis was allegedly connected to a vicious murder in 2000 while living in the United Kingdom.
Papalexis went on to help create Vita Luxury, another pseudo-destination club that offered the same type of benefits, but planned instead to not own any of the amenties available to members. Vita Luxury faced a similar fate as Grand Legacy Club and ceased operations after being unable to generate an adequate level of interest.
Clubs like Grand Legacy Club continue to exist on the periphery of the destination club industry, with their status as a destination club or not a destination club frequently debated.
MEMBERSHIP PLANS
One of a growing number of destination clubs that featured jet services and exotic autos just as prominently as they did the luxury accommodations available to members, Grand Legacy Club branded themselves as "a unique institution that exists to provide its owners the opportunity to live life on a grand scale, reminiscent of the golden days of opulence."
Widely marketing the fact that members were "owners" within the club, stating "Members of the Grand Legacy Club are the privileged few who are able to enjoy the many benefits of the Club and its facilities. Every member is an owner of the Club and its facilities and has use of the facilities at any time in accordance with the Club’s rules and regulations as contained herein."
Members were all equal and therefore the club only offered one singular membership plan. For a membership fee that ranged between $200,000 and $225,000 during the club's short tenure and annual dues that fluctuated between $9,500 and $11,750 per year, members could use all of the amenities available within the Grand Legacy Club. Members were "co-owners" of homes in Palm Beach, Florida, where the club was based, and the Bahamas, including furniture within the properties. In addition, they would own jets, Bentleys, and various watercraft.
Members could access any of the club's amenities whenever available, subject to the club's rules and regulations, and were only required to pay the associated costs of usage, such as landing fees for the private jet.
MEMBERSHIP PRICING
Structured so that members were "owners of the Grand Legacy Club," the Palm Beach based destination club was not in operation for long but did manage to change their pricing structure several times.
When the club launched, a key component of the structure was that all members would be equal and have equal access to the club's amenities, creating only one membership plan. At launch, memberships were sold for $225,000 with two different redemption policies in place. During their brief existence, memberships were also offered for $200,000.
This provided unlimited usage of any of the club's amenities, subject to the club's rules and regulations. Unlike other destination clubs, Grand Legacy Club did not focus solely on luxury real estate, but also exotic cars, private jets, and watercraft, all available exclusively to members.
ANNUAL DUES
One of the many destination clubs that failed to truly get off the ground and gain adequate traction within the industry, Grand Legacy Club provided members access to luxurious residences, but also to exotic cars, private jets, and various watercraft.
During the club's short foray into the destination club sector, Grand Legacy Club offered only one membership plan, making all members equal in the "ownership" of the club and usage of club amenities. Despite a universal usage policy across all members, the club changed their annual dues structure several times during their time in operation. Members paid between $9,500 and $11,750 per year in annual dues. According to club documents, annual dues would be used to pay for staff, servicing costs, insurance and taxes, maintenance, management fees, and contribute to "emergency reserves."
Members were responsible for paying for the associated costs of the use of the select amenities, such as landing fees associated with the private jet and cleaning costs of property usage.
A similar version of Grand Legacy Club, with executives from the club, emerged later in the form of Vita Luxury. The new club would have a similar concept, but never planned on owning any of the amenities available to members. Despite the different model, Vita Luxury suffered the same fate of Grand Legacy.
PROPERTIES
The Grand Legacy Club planned to ultimately provide members access to a collection of real estate, aircraft, cars, and yachts, all debt free. According to the club's Frequently Asked Questions, "All Club facilities and assets are owned entirely by the Club without any debt or liens on any of the assets. The members own the Club exclusively and this structure ensures the perpetual longevity of the Club’s existence and its proper management and operation. When accepted for the membership, each member receives a copy of a title insurance policy issued by TICOR title Insurance evidencing their ownership of the club and the facilities."
Based on club documents, Grand Legacy Club published two properties in their portfolio. "One is located at its privately owned property in the heart of exclusive Palm Beach Island in Florida, and the other on its own private island in the Bahamas."
- Palm Beach, Florida
- Legacy Cay, Bahamas
According to a release, the Palm Beach destination was "The Residences at Park Avenue," with 18 one bedroom suites. The Legacy Cay Private Island & Residences in the Bahamas featured 18 two bedroom, beachfront villas.
Grand Legacy Club never fully emerged and their model is widely contested whether or not it fits the definition of a destination club.
USAGE
"Members of the Grand Legacy Club are the privileged few who are able to enjoy the many benefits of the Club and its facilities. Every member is an owner of the Club and its facilities and has use of the facilities at any time in accordance with the Club’s rules and regulations as contained herein."
As stated in the club's literature, Grand Legacy Club members could access the amenities available to them at any time, subject to the rules and regulations. Unlike the vast majority of other destination clubs who focus exclusively on providing members luxurious vacation homes to enjoy, Grand Legacy Club would also provide members with private jets, top of the line autos, and yachts as part of their membership, all fully owned by the club.
Like the vast majority of destination clubs, reservations were segmented into long-term and short-term. Each member was allowed one long-term reservation and unlimited short-term reservations. While most destination clubs define their short-term reservation window between 30 and 90 days in advance of the first night of usage, Grand Legacy only allowed members to make their short-term reservations seven days in advance.
Prior to ever generating any sizeable momentum, the club ceased operations, never getting to fully test these usage regulations and policies.
MEMBERS
Limited to just 280 members, each with equal ownership in the club, Grand Legacy Club would provide members spectacular private residences, jets, watercraft, and automobiles all under one membership.
Members had anytime access to all of the Grand Legacy Club's amenities, subject to availability and the club's rules and regulations. Members paid a membership deposit to join the club and annual dues to access the club's benefits and "costs associated with use."
Like other destination clubs, the club broke reservations into two categories: long-term and short-term. Members were allowed to make one long-term reservation and unlimited short-term reservations. Most destination clubs have a similar reservation model, but Grand Legacy Club's short-term reservations were only allowed to be made seven days in advance. Most other destination clubs identify short-term or space available reservations between 30 and 90 days in advance, allowing for greater flexibility.
Every 30 months, Grand Legacy members could reconstitute the club and its Board of Directors. According to club literature, members could "alter the composition of the board (of directors), the composition of the Club's facilities or to change any aspect of the Club's operation as they as owners require, pursuant to the rules and regulations of the Grand Legacy Club."
The club never fully materealized and the small print on the club's website read "Until the final completion of the Club's facilities, the Club, reserves the absolute right to construct additional facilities and improvements within the Club properties and, from time to time, remove, add, modify, and change the boundaries, facilities, improvements, and the activities/services described in this Website. All improvements and amenities are subject to change without prior notice."
Grand Legacy ceased operations a short time after their creation, likely with only a select few members that made up the Board of Directors.
RESIGNATION
According to the Grand Legacy Club documents, "any time after one year of Club membership, you may notify the Club and they can market your membership for sale. Your membership will be sold and you will be returned the greater amount of the price initially paid for your membership (less a marketing and transfer fee of 10%) or 80% of the "then" current offering price of memberships."
While Grand Legacy Club ceased operations shortly after their introduction into the sector, both of these different resignation policies have been used at various other destinations clubs.
Understanding the details of how a club's resignation policy works, the powers you have as a member when resigning, and the amount you can expect refunded to you are all of critical importance when making your decistion on which club is best for you.
EXECUTIVES
The Grand Legacy Club planned to own, debt free, a collection of vacation properties, exotic automobiles, luxurious yachts, and private jets. Members would co-own all of the amenities of the club and have the ability to "alter the composition of the board (of directors), the composition of the Club's facilities or to change any aspect of the Club's operation as they as owners require, pursuant to the rules and regulations of the Grand Legacy Club."
The Grand Legacy Club Board of Directors included:
Homer Marshman, Jr.
Board Chairman
Alain J.A. Grangé
Director
Alfred Dougherty
Board Secretary
Emmanuel Papalexis
Board Vice President
Grand Legacy Club's operations management company was Sisemen Management, LLC, a wholly owned subsidiary of Sisemen Developments LLC. Sisemen was also connected to a similarly structured destination club called Vita Luxury. Vita suffered a virtual identical outcome that greeted Grand Legacy.
NOTES FROM THE CLUB
The aspirations of the pseudo-destination club Grand Legacy Club were only matched by the level of service they hoped to provide their ultra-affluent members.
Not only did the club model to own a collection of luxurious vacation homes debt free, but also a fleet of private jets, exotic autos, and watercraft all under one membership.
"All club facilities and assets are owned by the Club without any debt or liens on any of the assets," the club's literature stated. "The members own the Club exclusively and this structure ensures the perpetual longevity of the Club's existence and its proper management and operation. When accepted for the membership, each member receives a copy of a title insurance policy issued by TICRO Title Insurance evidencing their ownership of the club and the facilities."
The club ran into legal issues with a local jet service provider calling the club a "smoke and mirrors routine to lure investors."
Grand Legacy failed to generate even a modicum of interest and quickly ceased operations. As such, no Notes From The Club are available.
PARTNERSHIPS
Grand Legacy Club's business model was to own a portfolio of vacation homes, a fleet of private jets, and a collection of exotic automobiles all available and co-owned by club members.
Planning to take care the jet and auto aspect of club membership internally, often areas that most other destination clubs outsource through extensive partnership networks, Grand Legacy didn't publish any partnerships or strategic alliances.
Although it did not publish any partnerships, it appears that they were using, or planning on using, a charter jet company, only to enter into a legal scuffle. Jet 1 Charter Inc. was sued by Grand Legacy Club, alleging that charter company was fraudulently leasing its plane to the club. Scott Phillips, Jet 1's owner, called the lawsuit a contractual dispute and that Grand Legacy had not paid its bills, going as far as calling the operation a "smoke and mirrors routine to lure investors."
Despite publishing that "all club facilities and assets are owned by the Club without any debt," it appears that Grand Legacy was at a minimum leasing a portion of their jet access.
Ultimately, Grand Legacy Club never managed to garner enough interest for the club to continue and quickly ceased operations before making significant headway on their 280 member goal.
PRESS RELEASES
Grand Legacy Club built their destination club around the concept that members would have unlimited access to a collection of meticulously appointed vacation properties, a stable of exotic cars, a fleet of private jets, and luxurious yachts and watercraft. Members would not only be able to use the amenities of the club whenever they wished, but would also be co-owners in each of the assets. Each of these fantastic assets would be owned debt free and members would have an equal say on the composition of the club.
While an inviting concept, the specifics to how the club would actually work was never fully explained and Grand Legacy failed to generate sufficient buzz regarding the club. Soon after their launch, the club ceased operations.
In a lawsuit filed by the club against a jet charter service based in Florida, the defendant called the club a "smoke and mirrors routine to lure investors."
Due to their brief appearance in the destination club industry, there were no press releases made from the club.