Building Update

For those of you who do not have access to the Hawks Nest website, here are the latest postings from Treasurer Mike Oostmeyer and President Gary Tucker regarding the progress (or lack thereof) of our dealings with the insurance companies and repairs to the building.

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JUNE 1ST, 2018 UPDATE

A number of owners have called me to ask when the HN will be open. We have a number of projects (18) that need to be completed for that to happen. Our time estimate for those projects is about six months from when we start, and we have yet to start, and at this time we still do not have the funds for the repairs.

The Bank has yet to give us an answer on our loan application, but we did supply them with the last documentation they needed earlier this week.

Our Insurance Company did send us their initial offer ($23,801.17) and a statement that the damages we have were pre-existing (before the hurricane) and therefore are not covered. That email is included below.

From: Spears, Leon
Sent: Friday, May 11, 2018 3:57 PM
To: George Keys

Subject: Chubb Claim #KY17K2256826; Hawk’s Nest Condominium, Marathon, FL: VCI File #BOC17042940
Importance: High

George:

Please find attached the estimate prepared by Young & Associates for the repairs to the damages at Hawk’s Nest totaling $150,015.26. The current undisputed loss of $288,371.92 is derived after including the mitigation cost provided by your office of $138,356.66. A undisputed ACV claim of $23,801.17 is derived after subtracting the recommended depreciation of $11,667.10 and the applicable named storm deductible of $252,903.65.

We have prepared a proof of loss reflecting the pertinent information and a claim for the undisputed ACV claim amount. We are requesting that you provide the name or names of any mortgage holders, lien holders and/or additional loss payees applicable to the associations properties in the space by TITLE AND INTEREST marked with an “X” or write in “None” if there are no mortgage holders, lien holders and/or additional loss payees. Then, have the appropriate association representative sign the form before a notary, have the form notaries and return the form to our office. The signed form can be scanned and email to our office. Payment will be issued once the signed form has been received. Please provide mailing instructions where payment should be forwarded.

As you are aware, an inspection of the loss location was conducted with our engineer, Unified Investigation & Sciences on April 24, 2018. Unified is still in the process of completing their report. Once received, this information will be provided to the carrier for review. We will address this matter once the carrier has completed their review.

Please call if you have any questions.

Thank you,

M. Leon Spears, Jr.

This means we will have to file suit to reach a court ordered settlement, which we are in the process of doing.

Other than that, the Phone System should be up and running by the end of next week.

Gary Tucker also has a Note under the Presidents Message and it is included following this update.

As always if you have questions, please call me.

Mike Oostmeyer

231-745-7870

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PRESIDENT’S LETTER 5/31/18

This is to address the issues we are having with our insurance company and the procedures that will have to take place which up until now I didn’t totally understand (especially why we couldn’t start working on the building).

Mike Oostmeyer and I attended a teleconference call with George Keys and Mark Earle of Keys Claims (our public adjuster) to discuss the offer that was submitted to us by our insurance company which was $21,000.00 when our public adjuster is seeking about $5,800,000.00. The insurance company says the damages they saw were not related to the IRMA Hurricane. So as I understand, our next step is to file suit against them and start the arbitration procedures which will involve a third party such as a judge or someone of that stature. This person will only see what is presented to them in documents and will then have to decide what is true and fair. During this time the arbitrator might ask to come to the building and see the damages. If we have already repaired items that we are disclosing for loss, it could raise some questions that fall into a grey area. We have told our Public Adjuster that come July first we will be starting to look at moving forward with repairs even if it compromises part of our claim. We can no longer just sit back and wait. I have asked Mike Oostmeyer to add to this to his Hurricane update as well as comments from our GM, Gary Rumberger. I expect to have a budget meeting within the next two weeks and we will be discussing what we plan to do next.

Gary Tucker – President BOD

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