Have a great summer

The auction was a success, with both participating owners and bidding renters expressing satisfaction with the outcome. Thanks to everyone for your commitment to this process to find a price that is fair to both renters and owners.


There is still some last-minute scrambling by those looking to rent as well as some owners looking for renters. Those are posted on our web site: www.rotonrentals.org.


In addition, there are some owners listing their units for sale along with those interested in buying. If you have a similar interest, let us know and we will add your listing.


Thanks,


Tom Morris on behalf or Roton Owners who License

2012 Season Licenses - Auction Coming Soon

A group of Roton Point owners who have units available for licensing (renting) in 2012 have decided that the Dutch auction (aka Open IPO) structure is the most reasonable way to list our units. It is the same auction style that Google used to make their initial public offering more fair to all investors. 

In this form of an auction, bidders offer the highest price they are willing to pay. Based on the number of units available to license, the price that "clears the market" is the price that all licensees pay and all licensors receive.  

Once all the bids are submitted, the available units are assigned to the bidders from the highest bids down, until all of the available units are assigned. However, the price that each bidder pays is based on the lowest successful bid. Therefore, even if you bid $11,000 for a unit, if the last successful bid is $10,000, you will only have to pay $10,000 for yours. 

In addition to the Google IPO, the U.S. Treasury and other countries use a Dutch auction to sell securities. The Dutch auction has been used by a number of other companies besides Google and is sometimes also called an Open IPO. Click here for the definition of a Dutch auction from Investopedia. Note that our Dutch auction follows definition 1. 

Imagine there are 3 units for rent and 4 bidders. The bidders all enter the following maximum offers:

a.   $11,000

b.   $10,500

c.   $10,000

d.   $ 9,500  

In this case, the price that "clears the market" (ie ensures that every available unit is licensed) is $ 10,000. One person is willing to pay $10k and two are willing to pay more. As a result of the Dutch auction, all three pay $10,000. 

What are the benefits of this?

1. All renters pay the same amount for a unit. Since all the units are essentially the same, it is unreasonable that some licensees currently pay vastly more than others for their summer licenses.
2. Licensees and owners are spared from the endless phone calls, advertising and negotiations that go into making arrangements for summer licenses each year.
3. The price paid by the licensees is determined in an efficient manner. Owners are not setting arbitrarily high prices and licensees are not making offers that do not reflect the demand for units.
4. The auction is conducted in a fixed period of time, so that licensees and owners quickly know where they stand with their summer plans.
5. It is ethically correct. 

We are finalizing plans for the auction, which will be held in the last week of February or first week of March. We are in contact with most of the owners who license their units and are hoping that most, if not all of those available units will participate in this auction.

Click on the appropriate section of the side bar of our new web site, http://www.rotonrentals.org/ to be kept informed of the auction date. We look forward to this efficient and fair process to allocate the remaining units available in 2012. 

Thank you,  

Tom Morris

on behalf of

Roton Point Owners who License 

Aerial view. Lots of sand, water, trees and tennis courts!

Little America's Cup veteran Kevin Simmons and his fabulous wife, Claire, sail their legendary C Class cat, Patient Lady III, out of Roton Point. Members of the Roton Point Sailing Association (part of the Roton Point Club) were consistent victors in the famous Little America's Cup Challenge.