Hello everyone - nice to meet you virtually at least. We purchased 18 months ago because Powderwood was affordable and we love the location. For us there is huge appeal to being on the lower end amongst caring homeowners. We are not wealthy nor investors - we just needed a place for our son to continue his ski training. We still have original cabinets, carpets, sloping floors, drafty sliders, etc.
I am in favor of necessary renovations to keep the property in good repair (siding / windows / decks / stairs and landings / front doors that actually fit their frames / carports / lighting).
Like everyone who responded via Email before we were pointed toward this web site suggestions page, I am not in favor of any upgrades that raise our status into resort territory.
That said, my concerns and opinions for any renovation:
a) Keep it reasonable, affordable, understandable, and necessary. If we have someone on the board with construction expertise who could be our "everyman / everywoman" reality checker with no agenda, that is beneficial.
b) Escrow / loan / pay-as-you-go This project involves over 200 units in 14(?) buildings. It could take years to complete all buildings. I do not want to pay into a pot "now" and wait 4 years until my building is up for renovation. This sounds snippy, but it's not meant to be. What I mean is - life happens. We could sell before our building gets attention, and I don't want to be out the money for a project that I did not benefit from. (We got burned by this exact scenario many years ago in a different association. We paid our portion of an important-but-not-critical project, then sold the property. We received no use benefit of the project, and we could not recoup our "investment" because of market conditions.)
You can't charge a buyer $15,000 more for the pre-reno unit as-is just because there is $15,000 tied up in the renovation pot, and "eventually" the unit will be renovated.
I'm jumping the gun, but I'd like a way to segregate any unit's funds that are paid in advance, so if we sell our unit before it is renovated, the new buyer is obligated to reimburse me for those funds. Ie., the new buyer has to "buy" my cash that's already been set aside for his/her future benefit.
c) Valuation - Renovation should boost the overall property values long-term, or at least keep them from declining. But it also means our condo fees will likely increase because we'll have newer stuff and want to take care of it, and the Powderwood insurance policy is also likely to increase. For renters, rates will go up. This is not necessarily a good thing because we now compete with other complexes.
Monthly CASH FLOW is real, whereas "equity" and "property value" are just market concepts that may or may not get realized. I am far more concerned with cash flow than valuation. The "Vail Effect" will continue to help the valuation of all of Park City, but does nothing for my cash flow.
Short-term (during construction) it could be a disaster due to the inconvenience of daily construction crews, parking issues, debris, noise. Not to mention anyone trying to buy or sell during this period (trust us... in 3 year's you'll love it :^)
c) Clubhouse - I'm generally not a fan. I know many people use the pool, but the clubhouse itself - in my opinion - has little perceived benefit. It is a good location for the on-site property manager, but in my 18 months and dozens of visits to the office, it is always vacant. I do not want to invest much in the beautification or up-scaling of common areas beyond necessary repairs and upkeep.
Chris Mega, 10-I
From: Dave Mashaw
Sent: Tuesday, April 26, 2016 12:47 AM
Subject: Powderwood Capital Improvement Plan I am completely in agreement with Mr Krancer on the following points . I am for competitive bidding on request for proposal (RFP) from consultants/contractors . I am for appointing someone on the board that understand construction . I am against spending a lot of money to develop plans to be an “upscale condo resort”
We are always going to be the cheap seats and there is nothing wrong with being the entry level investment. We do not need to chase a fantasy that we cannot afford or realize.
When I tried to attend the board meeting on line( and failed ), I contacted our manger Joe at PMS to get updated on what happened at the meeting. After hearing his comments, it sounded like someone currently on the board is pushing this agenda hard for reasons that I do not totally understand.
We have owned in Powderwood since 2005, it was our first purchase in the Park City market. We have since purchased properties in Crestview (2 Units) and in Lodges at Bear Hollow. At the risk of offending other owners, I feel it is important to do a reality check. We (Powderwood) are the low man on the pole. All of our competition is newer with vastly better amenities. Garages, secured building, heated underground parking, elevators, newer better amenities, and did I mentioned newer buildings?
Joe mentioned to me an example of a property in Park City that has gone through an improvement process and has seen increased values. My response to this example was simply “location, location, location” the first rule of realty investment. We are not in a good location, we are buildings that are over 30 years old, poorly designed and constructed. Fortunately or unfortunately that is true for the majority of the complexes built with regard to constructions, there competitive edge is that are much newer designed better. We are probably not even up to standard for the current building codes. In addition to this we have 1 hot tub for 12 buildings the worse ratio of any of our competition and unfortunately hot tubs and pools in facilities that are well kept and new are a huge draw for nightly rentals.
Our priority should be to fix the construction defects and maintenance issues that need to be addressed, and done in a manner that will not break the current owners. If our property management company does not agree with this, then we should replace them. Anyone who thinks we can transform our buildings into a competitive complex that will increase hugely in value is not facing reality. Our increases in value will be due to us being pulled up by the surrounding values in Crestview, Bear Hollow, Canyon Creek, Red Stone Plaza area and others in our market. Our biggest increase may well come from being adjacent to the new Whole Foods Market being built.
We should only be using requests for proposals (RFP) to control costs. Spending any money on trying to face lift, should only be done if it is a small incremental increase to repairs that have to be done.
Sincerely David Mashaw and Mae Lon Ding
Owners Powderwood 2 A