Loop Calhoun has experienced significant damage caused by the construction of an apartment building on the neighboring property. The damage is limited to certain units and instability to many balconies on the west side of both buildings. A spreadsheet of the damages identified to date of units and balconies is available upon request from the property manager. The Association has demanded that the owner of the neighboring property and its contractors repair that damage, but these entities and their insurers have failed to do so to date. To expedite this process, the Association has sued the owner, its general contractor and excavation subcontractor for recovery of the cost of these repairs. The Association intends to complete these repairs in 2016. It has received bids for that repair which indicate that the cost of repair will be approximately $1.8 million. To pay for this work, the Association intends to borrow the full amount needed to complete these repairs and will be levying a special assessment in an amount needed to service the monthly debit (principal and interest). The net recovery from the lawsuit will be used to pay down the loan. Starting August 1, 2016, the Association will special assess homeowners for cost of the loan’s debt service divided among units by their percentage of ownership, and payable in monthly installments. A $1.8 million loan has been approved and locked down with the monthly principal and interest payment for the next 10 years is $18,923.28. Any and all funds recovered from the lawsuit will be used to pay off (or down) the loan. If necessary, the Board of Directors will further address the repayment of the remaining balance of the loan once the lawsuit is settled. I can add that the interior work is complete. The exterior work is 95% completed. It will be completed this spring when the weather is better.
MARION SLOCUM, AMS Association Manager FirstService Residential Loop Calhoun 3104 West Lake St. | Minneapolis, MN 55416
Direct 612.777.8300 | Fax 612.777.8301 Email firstname.lastname@example.org www.fsresidential.com
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