east-end timeshare operation.

And Tourism Minister David Dodwell announced yesterday that he felt the proposed sale of the St. George's Club to Great Vacations Resorts was "a positive step in the right direction''.

The news came yesterday from Mr. Dodwell after a Government appointed inspector reviewed the financial status of Real Estate Development Co. which owns the club.

The inspector was called in when timeshare owners objected to increases proposed by Mr. Woolf.

He had sent a notice to them in May announcing a special assessment fee they would have to pay to help the club meet its operating deficit. He also proposed hiking their annual maintenance fee up by 55 percent.

St. George's Club has suffered operating losses since 1991 which accumulated a projected deficit of $2.9 million. The operations side of the timeshare was expected to lose over $820,000 this year.

Mr. Woolf told club members that Real Estate Development Co. gave $1.1 million to the timeshare's operations to cover its cash flow requirements over the past few years.

The inspection commenced on June 21 and the confidential report was submitted to the Minister of Finance and the club's developing owner Alistair Woolf on August 15.

Mr. Woolf gave permission to share the following portions of the inspector's report with club members who are represented by the Member's Advisory Council (MAC).

The inspector made the following observations: "Based upon my investigation, the records of the company and club operations appear to be adequate''; "Based upon my investigation, no mismanagement of funds has been identified, and the company appears to be in compliance with the provisions of the Companies Act 1981''; and "Based upon my investigation, the company and its officers appear to be in compliance with the provisions of the Timesharing (licensing and Control) Act 1981.'' The inspector also commented on the issue of club operations and the special assessment.

"In accordance with the St. George's Club rules and regulations, club members are responsible for all expenses of operating and maintaining the club.

"Each year the managing agent can assess each club member an amount to cover the operating expenses and net replacement expenses.

"Based upon my investigation ... nothing has come to my attention that would lead me to believe that the amount currently being assessed is not materially correct.'' Mr. Dodwell said Mr. Woolf had made a formal application to Tourism director Gary Phillips to charge a special assessment. His original plan to charge the fee was considered premature because he had not applied for this approval.

"On the basis of the findings in the inspector's report, and following consultation with the other Government Ministers, I have instructed the director to approve retroactively the special assessment in an amount which relates solely to the shortfall of income over expenditure incurred since the current developer bought the company.'' Mr. Dodwell said he had been assured that the assessment -- $1,023.25 for two bedroom units and $682.16 for single bedroom units -- did not include any element of the debt which existed when Mr. Woolf took over the company.

Turning to the issue of the proposed sale of the club to Great Vacations resorts, Mr. Dodwell said he had met with the principals of that company who were involved in active discussions with Mr. Woolf.

"It would appear that the sale of the St. George's Club is a positive step in the right direction.'' TOURISM TOU REAL ESTATE RE