What will the project cost?
The South Deck Pool area is projected to cost each owner approximately $9-$12k. Though the Board likely has authority to vote and approve the South deck as proposed as well, it will seek owners input and may consider a polling or balloting of the ownership. The Board wants the owners input on the project as much as possible and has sought this for the past 3 years in countless meetings and discussions and forums. There is concern that the Board will meet opposition from certain owners who do not wish to invest in the property until the property is totally failing to the extent as the north deck was and we again would incur a larger premium for delaying a project to the point that the pool structure completely fails or an endless stream of repairs are initiated to repair what we have leaving us with an out of date repaired money pit with no warrantee and simply kicking the can down the road just as the North Deck was addressed and costing us far more down the road as well as losing the enjoyment and property valuations all owners should be entitled to. However, as maintenance is deferred, the entire project may soon reach a critical stage and the Board will have the fiduciary duty to become proactive and avoid claims that it was negligent in its failure to address the issues. On the other hand, the Board may have a fiduciary responsibility to be proactive and address many of the numerous deficiencies of the south deck or risk liability and be held negligent for failure to address structural, electrical, mechanical, and utility concerns while they are known and before they escalate as the north deck already has. Ultimately the decision rests on the ownership at large to make the best decision yet the Board may have to exercise its fiduciary responsibilities to the building at large. This website hopes to provide all the facts to assist in that decision.
If the North and South Deck projects were performed simultaneously as a single event the projected cost would have been far less. It must be noted, as the projects were phased and the South Deck Pool area was deferred to a later date the costs are since estimated at 20% more than they were in 2013 when this was first discussed. This was the consensus of the owners though.
Why?
Joining the projects would have allowed the contractor to pull a single permit for the entire project, for the engineers to oversee and orchestrate the entire project at once, and eliminates the duplication expenses of legal, engineering, staging and mobilization, demolition, and demobilization. In addition, as the economy continues to pick up contractors are in higher demand and prices of labour and materials has continued to escalate.
Other factors to consider?
In all major projects when the project logistics provides encumbrances and inconveniences to owners use and enjoyment of their properties, a loss of use should be considered and should have been factored into all decisions. Owners that rent their units may also have significant issues with tenants finding these conditions untenable for a paid rental. To phase the project over 2 consecutive projects has burdened ALL owners twice enduring these same loss of use periods (whether realized or not).
What is my return on my Investment?
The Ad Hoc Hardscape Landscape Committee consulted with an outside real estate professional who specializes in our oceanfront marketplace and has consistently over the past ten years, been a top seller of units in 3000. It is this brokers professional opinion that unit values would increase as a direct result of the proposed north and south deck projects combined.
It was further pointed out that our building has superb and superior floor plans yet sells at a lower multiple than its peers. We obviously recognize each buyer makes a purchase decision through their own unique and complex filtering system weighing numerous factors and aspects of a major purchase as a condominium and building security, reserves, maintenance costs, floor plans and hundreds of other factors are considered.
Our main focus should be on the improved enjoyment and benefits this project offers the owners and their guests and restores and secures the integrity of our pool and deck structure for the next 20-30 years, yet it is comforting to know when properly performed, an expense can actually be transformed into an investment with a substantial potential ROI by incorporating valued and desired and improved amenities and additions into the project.
The South deck in itself adds a very high multiple to the project ROI, maybe as much as 10 fold. This reality should not be ignored nor overlooked despite all pessimisms. Pencils should be sharpened here.
Will there be financing options?
At this time the Board of Directors have not presented financing options but this does not preclude owners from preparing for the assessment individually or privately through numerous low interest equity options available in the financial marketplace. The Board of Directors explored this option 2 years ago in March and after meeting with bankers and proposing funding options and putting out for a vote, the owners declined and preferred paying directly without any outside funding.
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