Saturday, October 21, 2023
Greetings Fellow Owners:
The Board of Directors held a meeting on Thursday, October 19th. We had over 150 owners join us via Zoom. For those of you who could not make it, a link to the recording of the meeting will be available soon on the KBC website. Below is a quick summary of some key matters that were discussed:
Budget for 2024: The Board of Directors approved the Budget for 2024. The maintenance fees will be $523 per week, which is down from $580 last year. We also approved a waiver of the reserves fee, which was $170 last year. So, owners will pay $227 less per week than last year. This amount does not include the taxes for each unit week. It is important to know that the budget discussion and forecasted costs are based upon the expectation that we will restore the property in 2024.
Delinquent Owners: The Board of Directors discussed delinquencies related to those owners who refused (or failed) to pay their 2023 maintenance fees. We have turned these accounts over to local legal counsel who is initiating the foreclosure process. We also voted in favor of suspending the voting rights of any owners who owe more than $1,000 and have been delinquent for over 90 days.
Construction/Restoration Update: We continue to wait for our contractor to secure final bids from the subcontractors for the restoration of the building. As you know, we need the final construction cost to restore the building to be under 50% of the value of the building structure (as of September of 2022 – pre-hurricane Ian). We expect to have this information before the end of the month and the Board will convene again at that time to discuss our options. We have diligently prepared for this moment by obtaining estimates for the other costs to restore the property, such as the costs related to replacing and fixing the exterior amenities. We are also actively working with the SBA and local banks about loan options, which we would use to pay for restoration costs exceeding our insurance policy payouts and allow owners to stretch the payment of any special assessments over period of a few years. We are also prepared to consider our other options if the constructions costs exceed the 50% threshold. Remember – we cannot proceed with any restoration or construction until we take a vote to continue the Association. That vote will occur within 60 days after the Board of Directors has compiled all the relevant information, we need to determine whether a special assessment is required and how much it would be. At this point, the final pieces of information we need in that process and analysis are the construction costs related to restore the building and finding out whether we can restore the ground floor units, office and lobby. As indicated above, we hope to have that information very soon.
Annual General Meeting: The Annual General Meeting will be held December 6, 2023, at 9:00 a.m. at Diamond Head Resort on Fort Myers Beach. The meeting will also be available via Zoom and instructions on how to attend will be made available prior to the meeting date.
As always, please contact the office or me by email with any questions.