OUR PLAN
Our plan is simple. It is difficult. It will be costly, but cheaper if we don't allow the incompetent amateur current leadership to keep business as usual.
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We have a +/- $4.5 million dollar problem. We have less than 10% of that in cash, maybe less. We should have a reserve of at least 6 months gross cash flow ($600K) and an emergency fund equal to two times our annual gross revenue ($2.4 million). That equals $3 million in reserves. As stated, we only have $400K (estimated because of secrecy).
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The building is fundamentally insolvent/broke. It does not have the ability to pay for what has become critical and must be paid for now (unfunded liabilities)... like the new fire panel, the sprinkler system mandate, the elevator rebuilds/replacements, and other less critical but serious matters regarding our landscape, trees, common area maintenance, signage etc.
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To recap our needs: elevators must be updated/upgraded at a cost of $1.5 million. Fire panel and Sprinkler installation $1.4 million, addressing the leaking rusting windows-preventative repaint of the building and resealing-landsape-upgrade entry doors and common areas upgrades $1.6 million.
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We can assess ourselves out of our predicament, but that would disrupt those on fixed incomes who live here. We can special assess ourselves which is even more disruptive. Or we can borrow our way out of this mess and pay the price called interest charges. Either way it is going to be painful and expensive. This is the direct cost of allowing amateurs to run the building for years, especially those more interested in control and self serving cost cutting measures to defer expenses until later.
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Our plan calls for borrowing approximately $4 million dollars which will impact every condo in the building with 1/154th of the loan repayment. If our calculations are correct, we believe the loan could be serviced with nominal increases in assessments...offset by the expenses we would no longer need to be reactive with our maintenance by constantly having to manage emergency repairs.
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This is an oversimplification of the financial reality we are facing. But face it we must. The elevators (down to one operating out of three) is critical. The fire code mandate is set in stone. The fire panel is not operating as it should and exposes us to serious danger,legal risk and impacts whether we can be insured. The cost of deferred/ignored maintenance has caught up with us.
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This is going to take experienced turn around talent to emerge from this mess, and that talent resides in the building. It is going to take a lot of money, and it is going to be painful. Let us hear from you, and stay informed by visiting these pages often.
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