OPEN LETTER TO HOMEOWNERS CONCERNING CONSTRUCTION PROGRESS IN THE PHASE II BUILDING AND PENDING SALES:
November 6, 2000
Dear Homeowner:
In our previous resort report to you in the Fall of 1999, as well as individual discussions with many of our owners during their annual visits here, the Board of Directors has been pursuing the problem of moisture behind the stucco exterior of our buildings.
Our investigation found that there was an on-going class action lawsuit against several of the stucco manufacturers concerning the very type of problems we were having. We joined in the lawsuit and in settlement discussions over this past winter, the various manufacturers offered an across the board settlement to all residential owners of buildings that were constructed during certain periods of time. As a result, we recently received a settlement and began redoing the exterior of several of the units in Phase II.
In these photos, we see the removal of the old exterior and the repair of the building.
Once the stucco was removed and the plywood sheathing and the studs exposed, we found that we had moisture damage to various parts of the building, mostly within 8' of grade. The original design of the stucco system, which the stucco manufacturers recommended, had an EIFS (Exterior Insulation and Finish System) which is basically the same composition as the Styrofoam in a coffee cup. An EIFS 1" thick board was applied to the plywood sheathing, followed by a primer and finish coat of the acrylic stucco. In redoing the system now, the EIFS board has been eliminated and, after all damaged studs and plywood sheathing were replaced as necessary, a 1/2" thick cement board with fiberglass reinforcing was installed over a vapor barrier. This was then followed by a primer and finish stucco application.
One of the critical factors in the acknowledgment of financial responsibility by the stucco manufacturers was that when the stucco and insulation board extends below grade, it is almost impossible to stop moisture and termites from going up through the insulation board and causing damage. In the new system, the stucco cladding stops six inches above grade and a cement stucco is applied directly to the foundation so that any signs of termite activity can be detected visually. Two of our Board Members, Paul Walker and Chuck Kronenwetter, were with the contractors every day to assure that the new system and repairs were carried out in a proper manner. Phase II Building has been completed and the bottom of the old existing stucco system has been completely removed from just above grade down one foot around the entire Phase I Building. We also installed a complete drainage system around both Phase I and Phase II Buildings to get any rain water away from the buildings quickly. The new stucco system has a ten-year guarantee from the stucco manufacturer (Bonsal Company) and totally matches the existing look of our buildings. It is a far superior system and the building looks better than new.
Newly refinished exterior of Phase II.
We have also pursued a claim against the metal roofing manufacturer because some of the roofing paint has blistered and faded. After much discussion, research and letter writing, the manufacturer has agreed to fix the roofs during the month of November. To avoid lawyer fees and time-consuming litigation, we have agreed to contribute approximately $7,000.00 of the $35,000 to get all the roofs completely repainted.
We will need some additional money to complete the remaining stucco repairs in Phase I Building. Since the amount of damage underneath the stucco can not be adequately determined prior to removal, we can not, with any certainty, say how much the total repairs will cost. With this in mind, the Board of Directors has discussed several options, including assessments and/or sale of the 250 plus weeks that the homeowners own in Phase II.
As most of you will recall, back in the early '90's when this project had its lender forced out of business, which effectively stopped the planned completion of the future phases, the bank and developer deeded over (free and clear) the remainder of the unsold timeshare inventory. Four or five years ago we attempted to sell this inventory but were unable to do so, probably due to pricing the weeks too high. In the interim, we have used these unsold weeks as rentals to generate revenue for the homeowners to offset our operating expenses. The Board of Directors has recently approved the selling of inventory at wholesale prices. The owners, of course, will be the first ones that will be offered the chance to reserve their choice of weeks prior to release to the general public or timeshare resellers. If this is successful, it would not only pay for any additional costs we may incur from stucco repair, but to purchase the clubhouse outright as we have the option to do, thus saving us the yearly rental fees now paid. This would also stabilize our maintenance fees and preclude the need for any assessments.
Please contact Golf Coast Realty for unit/week availability.
Now that the exterior of the Phase II building and the rear of the clubhouse has been resurfaced with new exterior stucco, we are having the same type of repairs done to our Phase I building. This involves removal of the damaged exterior sections and replacement by a new type of exterior stucco which allows for water to weep from behind the new material. The new stucco system is far better than the older stucco material and its application, which caused us problems in the past. We expect to repair the Phase I exterior by year-end, 2002. See the problem and the repair and replacement process.
Update 11/27/2002
The rear of the Phase I Building was repaired this past October. Some areas of the building were stripped of the exterior stucco so that structural repairs could be made to the building where water damage had occurred. The dining room sliding glass doors were replaced with windows and the newer version of the exterior stucco was applied to the repaired areas.
Update 1/20/2005
The Phase I Building began a major exterior renovation in January, 2005 funded by a Special Assessment to repair and replace the damaged areas. The damaged exterior synthetic stucco material was removed along with the building substructure sheathing to reveal the structural components. Some repairs were made to structural members, but most of the repairs will be focused on the substructure to the exterior and the finished stucco siding. These photos show how damaged the building really is:
Update 3/1/2005
Repairs to the Phase I Building have progressed to the point where we have completed the structural repairs and are now finishing the building with the newly engineered stucco exterior. The new exterior will make the building look new again. we will post photos of the building exterior as soon as we have completed the work. These photos show the recent progress, up to the first week of March, 2005:
Update 6/30/2005:
The Phase I Building repair and construction has now been completed. Here are some photos of the building, which look great!
