Tuesday - July 18, 2023 12:30 pm
Fellow Kahlua Owners:
Some members of the Board of Directors had a call this morning with our general contractor. We had been anxiously awaiting this call because it has been a long time since the contractor started compiling estimates from the subcontractors for the renovation costs. As you will recall, if the costs of renovating the building exceed 50% of the value of the building, we would not be able to proceed under current code requirements. Unfortunately, the news was not what we wanted to hear for two reasons: (1) the estimated cost of the renovation project is REALLY close to the 50% threshold, and (2) the amounts were only soft estimates and not hard bids from the subcontractors. Since we are so close, and upon the recommendation of the general contractor, the board members on the call unanimously agreed to authorize the architect to prepare final plans which the general contractor will use to obtain “final” bids from the subcontractors. Sadly, that process could take up til the end of October, but both the architect and general contractor agreed to push this through as quickly as possible.
Upon receiving the final bids, we will know whether we can proceed with the renovations under the current laws. However, keep in mind that despite our ability to proceed (if we come in under the 50% threshold), the owners will need to vote on proceeding with the repairs and renovating Kahlua. The Board and staff are optimistic we will be able to proceed, so from now until we have the final bids from the contractor, we will be working to compile estimates for the other costs of rebuilding Kahlua, including the replacement of the exterior amenities. We will also be exploring options for offsetting or mitigating any potential assessments. Finally, while I hope it does not come this, we will also be obtaining estimated fair market valuations for the property – just in case we are unable to rebuild due to the costs exceeding 50% or if the owners vote to terminate the association. The goal, of course, is to have the vote on whether to continue the association as soon as we know if the costs come in under 50% of the building’s value. The contractor also needs us to do that quickly because some of the subcontractors bids will be valid for only a specific period of time.
I know I speak for the entire Board of Directors and staff by saying how thoroughly disappointed we are with how long this process has taken, but as the contractor told us again today, nothing is happening fast down there and everyone is doing their best. So, we need to remain patient while they take this final step in the construction process.