Dear Valentines Homeowners,
Acknowledging the need of good communication and the importance of transparency, the Board of Directors of the Harbour Island Villas Merged Condominium Association Phase I and Phase II (the Board) has decided to convey all important news and information with newsletters and with the newly-created website valowners.com
Please refer to http://www.valowners.com for updates, legal documents, minutes of the Board meetings, contractors’ quotes, approved budgets, etc.
The website will provide answers to most of your questions. We encourage you to visit it regularly to keep up with the latest news.
After seven years since completion and two hurricanes, the Villas, the Common Areas and the units’ interior are in need of renovation.
The Board has therefore outlined an improvement a plan, to be implemented before the end of 2014.
INTERIOR
As per Rental Agreement: “Owner shall be responsible for all costs associated with maintaining the Unit (including furnishings, appliances, HVAC door locks, plumbing and electrical systems) in good clean working condition, as determined by the Company, and as otherwise required by applicable law as reasonably determined by the Company and the Owner.”
On January 23rd, 2013, an inspector from the Hotel License Board visited Valentines and compiled a list of mandatory improvements that need to be addressed in order for Valentines to continue to operate as a Condo Hotel.
This inspection takes place every year and has been done each of the past seven years. Every hotel in the Bahamas has to comply with these inspection notices. The resort was absorbing costs when repairs were made.
Since each unit has different issues that need attention, Mr. Dean Spychalla has compiled a detailed list of repairs for each unit – complete with cost of materials and labor – and will be contacting each owner directly about this matter.
Besides the repairs required by the Hotel License Board inspector, the units need several improvements.
After establishing a list of priorities, the Board has agreed on the following renovations:
PHASE 1 – 2013
- New Flat-screen TVs $ 800 to 1,600 – Many guests complain that the old ones are too small and difficult to operate. We recommend 42″ for the living room and 32″ for the bedrooms. If we buy LG from Wal-Mart they cost respectively $ 478 and $ 278. Number of TVs to replace depends size of unit. We recommend replacing at least the TV in the living room.
- New sofa bed $ 2,500
- New carpets (area rugs) $ 1,100 – Old and dirty. The number of carpets (area rugs) depends on the unit size. This price is for 2 carpets.
- Replace faulty microwave ovens $ 400 – (only where necessary)
Before any electronic upgrades, it is highly recommended that a Power-surge protector be installed in each unit since the recurrent power surges keep damaging the appliances. According to Chris Ritchie, the installed device will cost $ 870 per unit. He will require a deposit of $ 677.50 (100% materials + 50% labor) before starting the job.
http://www.valowners.com/public/20130222-SurgeProtection.pdf
Also, replacing your water heater is highly recommended. Recently some of them have leaked, causing expensive damage. Several options are available (tank-less, non-corrosive or electric) at different prices and installation costs.
Please refer to the website for the state of your water heater.
http://www.valowners.com/public/20130319-waterheaterFeb-2013.pdf
We have estimated that the cost of the listed improvements would vary between $ 5,700 and $ 6,500 (including S&H and 45% duty stamp for the items to be imported), but this cost may vary due to the different size and needs of each particular unit. The Board is working to contain prices by buying wholesale and shipping in a container.
The Board will provide a detailed list of the approved replacement items so as to ensure consistency.
The Board is also exploring the possibility to apply to the Bahamas Investment Authority for duty tax exemption in accordance with the Bahamas Hotel Encouragement Act.
Please consider scheduling all the updates at the same time to reduce the rental downtime of your unit.
PHASE 2 -2014
It will consist of updating throw pillows, pillow covers, bedspreads, etc. with more contemporary colors and fabrics.
A sub-committee is exploring various options to keep the cost low. Two units will be renovated according to the new design and used as models for the other owners.
Please be aware that a new interior wall color has already been selected and must be used from now on.
EXTERIOR
The Condominium Association is fully responsible for the maintenance of the Buildings Exterior and for 50% of the maintenance expenses of the Common Areas (depicted in green, pink and brown in the enclosed map).
http://www.valowners.com/public/20040319-MapCommonAreas.pdf
Repairs to the buildings:
- Flat part of roofs
- Gutters
- Stairs, landings, decks and railings
- Touch-up painting
Total estimated cost $ 90,000
Repairs and improvements to common areas:
- Irrigation
- Landscaping
Total estimated cost $ 12,650 (50% of $ 25,300)
Other extraordinary expenses:
- Legal fees $ 15,000
- Linens & Towels $ 19,000
- Project Management $ 20,000
(to Valentines Resort and Marina Ltd.)
- Kitchen supplies $ 4,200
Total estimated cost $ 58,200
Total extraordinary expenses $160,850 or approximately $ 3,900 per unit.
All these expenses are necessary and cannot be deferred. However:
- by budgeting them as Extraordinary Expenses we have been able to reduce the Ordinary Expenses of $ 119,600.
- by requesting competing bids for maintenance services and insurance, we have saved another $ 62,000
- the decision to pay 50% of the Common Areas maintenance is going to save an extra $ 14,280.
- All these savings have brought the Monthly Fees down to $ 267,129, which is very positive for resale value.
- We are still actively looking for more competitive quotes, which may reduce some of the current estimates.
Please notice that moving the savings to the Extraordinary expenses has allowed us to have the funds for the much needed exterior repairs and landscape improvement, but also for irrigation repairs, new white linens and towels, and kitchen supplies.
More importantly, some of the amounts budgeted for these repairs are based on preliminary estimations and quotes and therefore may vary since we are working on getting other quotes from different contractors.
Starting in April and for the next six months you should expect an extra charge to your monthly bill due to the Extraordinary Expenses.
Another good news is that – thanks to the Hotel Encouragement Act – we are already entitled to another 10 years of tax exemption.
- 5. The Government further covenants with the Promoters as follows:
- i) That for a period of Ten ( 10 ) years from the date on which the said Hotel open for business the said Hotel (and the buildings comprising the same and all additions thereto and the land upon which the same shall be situate) shall be exempt from real property taxes and any other taxes now or hereafter imposed on real property.
- ii) That for a period of Ten ( 10 ) years commencing on the First Day of the Eleventh Year after the date on which the said Hotel opens for business the said Hotel (and all buildings comprising the same and all additions thereto and the land upon which the same shall be situate) shall be exempt from real property taxes and any other taxes now or hereafter imposed on real property in excess of Twenty dollars ($20) per annum for every bedroom therein.
http://www.valowners.com/public/20040626-HotelEncouragementAct.pdf
The Board estimates that each owner should budget approximately $ 15,000 over two years for these renovations, plus the cost for the mandatory interior repairs to comply with the Hotel License Board notice.
We cannot expect Valentines to function without adequate funding.
The manager has informed us about overdue condo association dues. We encourage all owners to pay their dues in a timely manner because any delay hinders the management’s efforts to do its job properly.
As members of the Board and as owners we realize that we are asking you a big effort. After a time of discouragement and concern, we are finally seeing positive signs of change in the right direction and we are confident that, after this transition period, Valentines will be returned to a pristine condition, proving itself a valuable investment and an enjoyable vacation haven for all of us and hopefully for an increasing number of guests.
With confidence in your support
The Board