I received a phone call from the new GM of the property this morning (48 hours after contacting Corporate) and I have to say that I was more that impressed with his candidness when discussing their shortcomings and his pledge to improve the situation by the end of the year.
I received a full refund for the rack rate what was charged in error, a refund of the 7K SPG points that I was charged and as a goodwill gesture another 7K SPG points plus a small additional amount credited to my Amex. Well I am satisfied with the outcome, I will not be returning to the property anytime soon.