Good morning fellow Seawatch owners,
Yesterday, I spent the afternoon at Seawatch with our Resort Director, Chip Fosth. Driving the Island, north to south, there is still a tremendous amount of clearing and demolition to be accomplished. And, while I noted some familiar names on building sites as far as contractors are concerned, there is little to no evidence that any actual reconstruction has started. Since November, many lots are now empty, and several of them have for sale signs. Like last visit, Estero Island is NOT yet a vacation destination or a place where you would want to take a family vacation.
The resort has not changed from the last set of pictures. Our building is ready for the reconstruction, and we are trying to get started. The major obstacles in front of us are getting our electrical system rebuilt and functioning, starting the replacement of our elevators, as well as replacing our fire alarm system. The later two items are long lead time items and essential to the re-opening of the resort. While at the property, we visited with a representative of Young and Associates who indicated that they are trying to get to the point of reconstruction, however, getting quotes from contractors is very challenging. Young and Associates is a consulting firm that has been hired by our insurance carrier to review bids for accuracy and price. The local building officials are re-writing building codes by the third week of January and as a result, they are not reviewing or approving any reconstruction building permits until then. Contractors are reluctant to release quotes, not knowing the requirements of the new codes. Lee county is enforcing the 50% rule, that is, if a structure is damaged, the cost to rebuild it (excluding things like permits, fees, parking and patio areas, pools, spas, and landscaping) cannot exceed 50% of the MARKET VALUE of the STRUCTURE. In many jurisdictions, Lee County will not issue any permits until the property owner can present a complete scope of the reconstruction work and the total cost of it, showing that the total cost will not violate the 50% rule. This documentation requirement appears to apply to anyone applying a permit, including us. If the costs exceed 50%, then the structure must be brought up to current building codes or be demolished. While we should not have an issue with this rule, the rule will impact the older structures built without any elevation above the ground because new codes require structures be elevated.
Prior to Ian, we received a permit to replace our building generator. After Ian occurred, we were notified the permit was missing a signature. We have finally obtained the approval of the permit and the generator is scheduled to be removed and replaced the week of January 9, 2023. The electric meter issue has not changed, the building has no electricity at this time. Chip has made a complete assessment of drywall, cabinetry, flooring, and carpeting, unit by unit. He has presented this information to Abbey Floors who has sufficient material in stock to replace our damaged LVT flooring and new carpeting. While on property, I toured some of the first-floor units. In summary, most of the flooring was lost on these units that end with 02, 03, 04, and 05. Drywall damage is scattered throughout all seven floors of the building, and some of the kitchen and bath cabinets/counters had to be removed to dry out the area behind them, however, it appears we have almost no loss of cabinetry. The pool can be re-piped and repaired, a pool company is working on a proposal.
Chip has also been very proactive in reaching out to various vendors including patio furniture, pool bar cabinetry, landscapers, drywall companies, plumbers, fence companies, glass and door companies, and landscapers. He is soliciting local contractors for bids while First On Site (our Construction Manager) is contacting their contractors. For those of you that do not know, First On Site is a Construction Manager that is owned by FirstService Company, a Toronto stock exchange company that is a property manager, just like HGV. They own various companies like First On Site whose operations compliment their business model, property management.
In summary, we are hopeful that we will be able to give you a much better update in the next month once the issues with Lee County resolve and we can move closer to the permitting process. In the meantime, if you have any questions, concerns or comments please email me and I will respond to you. Tim Pellerin