LA Free Press, November 1994
Philippine Fiesta Village now on solid tracks; LA Free Press-Business; November 19-25, 1994
New owners vow to rank first Filipino resort in America a vacationer’s paradise.
Ray Novelli has a reputation for acquiring properties that have not experienced success and then turning them into viable, if not outright lucrative, business endeavors – employing a combination of his business genius and the midas touch in him. The president of Fiesta Resorts, Inc. is on top of 73 resorts which his company has acquired and transformed into world class vacationers’ destinations, thus proving to all and sundry that he, indeed is a giant in the resort and travel industry.
Recently, the Fiesta Resorts, Inc. acquired the Spring Creek Resorts (SCR), a.k.a. Philippine Fiesta Village (PFV). It is the first theme park resort in America that is Filipino. To carry the theme Philippines, PFV has introduced into the resort amenities and fixtures that represented Filipino culture, customs and traditions – the traditional thatched roofed cottages, miniature replicas of the Taal Volcano; and the Mt. Mayon a perfect cone volcano, considered one of the eight wonders of the world, to name a few.
Legal technical issues, however, momentarily stopped the SCR from continuing its work with the PFV – the California Department of Corporation has charged that the PFV was being sold as a security while it was not registered as such. A corollary case was also filed in the San Diego Superior versus SCR with a multi-million dollar demand for compensatory damages.
Two weeks ago, a satisfactory agreement was reached between the DOC and the SCR; a handshake settlement that has paved the way for the new owners to proceed with the PFV’s development and sale of memberships.
The judge has ruled administratively on the DOC case, which to some extent, rendered the San Diego ego case moot and academic, reason enough for the judge in the San Diego case to throw out the case, saying it was “inappropriate” as a class action suit. A proposed settlement agreement between the two plaintiffs in Dan Diego and the SCR was submitted for approval of the judge whereby SCR and the Krupp family, previous owners of the PFV would pay $5,000 each. Under the first agreement, the SCR agreed to reimburse the DOC of its investigative costs, as well as reimburse SCR members who wish to withdraw their membership.
“That is all behind us now and we want to proceed ahead with the development of this theme park for the Filipinos,” Novelli told last week’s press conference. “The place has a good potential and I am confident it will be a success.”