FRANK'S BLOG

RUMOR ABOUT A PP II ASSESSMENT

For your information:
There is a story going around here, and by e-mail, about an
Assessment by the Pelican Pointe II Association that needs
clarification. To set matters right: there was a Board interview
with a prospective buyer of a unit on July 28Th which was done
on a very short notice as an accommodation to the parties
involved in the potential sale to expedite the paperwork involved
in the sale. At that interview, among many, many things he was
told about Pelican Pointe, the prospective buyer was also advised
that there was a possibility of an Assessment in the order of
$10,000 relating to hurricane repairs. It was explained that this
might be the case if we do not get the SBA loan soon. Because of
all the work being done here to rebuild from the hurricane damage,
we have expended the $1,739,000 from the Insurer (which is
$100,000 less than they admitted they owed our Association at the
meeting in the church) and the $297,000 raised by the only
hurricane related assessment of $1,650 per unit made last
year. We have had to use Association reserves for purchase of
shingles for the remaining roofs on the worst damaged buildings,
which are now being re-roofed, and for shoring up slab foundations
undermined by runoff from the roofs on units where the
downspouts were blown away in the Hurricanes. Thus, if we do not
get the SBA Loan money soon there may be a need to assess to
raise needed funds. As we all well know, the Association has only
two basic ways of legally obtaining funds, to borrow or to assess.
There was no mention of a $15,000 assessment made at that
interview! This number was mentioned to me later on Saturday
July 30Th by the prospective sellers and two of the Real Estate
people representing them who unexpectedly came to
my door (none of these people were present at the interview with
the prospective buyer) and I told them that this number was not
what we thought we would need and in fact we did not, at this
time, know precisely what, if anything, the Association would need
to assess as it depended on the SBA loan. In fairness to this
prospective buyer, and any others that come along, we will give
them a precautionary warning of a possible assessment so that
they are not "blind sided" if we are forced to raise money for your
association in this manner. As any unit owner who has seen the
damage here can understand, we must get all the units "buttoned
up" before we get hit with another major storm. The latest
official forecasts for an unusual number of powerful storms this
season are not reassuring to any of us, particularly those who are here.
In retelling what occurred at this interview by people who were not
there it appears that the story did not come through as clearly as it
should have. Since this story is now spreading rapidly as a rumor
here, as unfortunately does all bad news, we are putting this up as
a notice on the bulletin board and are posting this message on this
Pelican Pointe II Blog Website.
I am pressing the SBA for an early release of the $1,500,000 loan.
After sending them the notebook full of documents they required
two weeks ago, they asked for more specifics on the scope of
work to be done here. So we have sent them the complete book of
cost estimates (280+ pages) which has great unit by unit detail
on the work to be done here. This information has been turned over
to their Loss Verification Engineering people for review. The
SBA attorney in California I have been working with by telephone and e-mail over the past months is now in Atlanta with the three thousand files transferred
to the Atlanta SBA Office for processing and has taken our file up
to the Senior Loan Officer with an explanation of our plight. (To
make matters worse, the SBA attorney advises that 7000 more
files have been transferred to Atlanta from other SBA offices for
handling.) He asked me to call him again onThursday which I will
do. It is impossible for us to predict when the SBA will release the
Loan Monies, but I can assure you we will keep tactfully, but
aggressively, pressing them. The Attorney at SBA has told me not
to get discouraged. I am not, and hope no one else will be
disheartened either. No one has ever said that getting a loan of
this magnitude and nature from a Government organization would
be simple or speedy. We all must continue to bear with this
difficult calamity brought about by mother nature and exercise
extreme patience. The Insurance company's tactic is to try to
wear us all down and get us weakened so that we will cave in to
their inadequate claim offer. We must and will prevail if we stick
together!
When the release of funds is a fact , we will advise the membership
promptly. We hope this adequately answers questions that this
story has raised among the membership and gives a better
understanding of the actual situation facing your Association.
Frank Marshall, on behalf of the Board.
PELICAN POINTE OF SEBASTIAN II
CONDOMINIUM ASSOCIATION, INC.
BOARD OF DIRECTORS:
PRESIDENT~BOB CONLEY
VICE PRES.~FRANK MARSHALL
VICE PRES.~DAVE ROBERTSON
SECRETARY~KITTY WHIDDEN
TREASURER~SUE KEANE 8/3/2005