March 16, 2012

 

Dear Co-owner,

 

At the January 18, 2012 Annual Meeting of the Manors at Central Park Condominium Association, a Special Assessment election was held to approve funding for the paving of the final layer of asphalt on our roadways.   Owners of only 112 of the 166 units in the Manors participated in the election and that included all 47 incomplete units owned by the Carpenters Pension Trust Fund (CPTF). The meeting sign-in sheets show that 54 owners did not bother to either attend the annual meeting or submit a General Proxy.  By their inaction, those 54 owners effectively sided with the 19 co-owners who voted “no” against the Special Assessment.  Since a Special Assessment requires “yes” votes from at least 2/3rds of all 166 members in value, it narrowly failed to win approval.  

 

At their Feb. 22, 2012 meeting, the Board of Directors extensively discussed this issue.  The base layer of asphalt in some areas is already showing signs of wear and deterioration.  Co-owners who wish to sell or rent their unit want it to have nice “curb appeal”, but here in the Manors, our chipped curbs and exposed catch basins tell a different story [view photos]. It is unfortunate that the Township failed to secure the proceeds from their letter of credit while it was still valid, but that is outside our control.  It is equally unfortunate that the CPTF has taken the position that they are not financially responsible for finishing all of the remaining paving.  However, the CPTF is willing to pay their 47/166ths share of the total paving costs if the Association performs the final paving and levies the remaining paving cost against the other 119 units (they own 47 incomplete units and their share would be worth approximately $25,800).  The CPTF knows that the Association would have to file a lawsuit to get them to pay for the entire project and they also know that our Bylaws require that a Litigation Special Assessment be approved by 2/3rds of our members in value in order to initiate and fund such a lawsuit.  

 

Based on their discussion, the Board is of the opinion that:

a) pursuing a Litigation Special Assessment would be a waste of our members time and money and would cause the CPTF to immediately withdraw their offer to pay a 47/166ths share of the total project cost

b) it is unrealistic to expect that the Township will be providing any funds towards the final paving project

c) the final paving must be performed soon, otherwise it will only be that much more expensive to complete in the future.

 

Therefore, the Board voted unanimously to again seek approval for a Special Assessment to fund the paving of the final layer of asphalt on our roadways.  In response to comments received from co-owners following the Jan. 18th vote, the Board has made some changes to meet their requests:

a) the Special Assessment election will be held at a more convenient time and place to enable greater participation by the Association members

b) the Special Assessment election ballot will identify a fixed total cost instead of a maximum cost as well as the actual amount to be levied on each class of Units.

c) if approved, co-owners will be able to make multiple equal monthly payments instead of a lump-sum payment

 

Therefore, this letter is your notice of the following Special Meeting of the members of the Manors at Central Park Condominium Association:

 

Date: Saturday, April 14, 2012

Time: 10:00 AM

Location: 49997 Lexington East (inside the garage, bring your own chair if you need one)

Purpose: conduct a vote to approve a Special Assessment that would raise $85,507 to pay for the paving of the final layer of asphalt on our roadways

 

Members will be asked to approve a Special Assessment that would levy a total of $148.98 against each of Units 1 through 14 and $548.82 against each of Units 16 through 167 (there is no Unit 15).  If approved, co-owners would make six equal monthly payments of $24.83 and $91.47, respectively.  The value of each Unit’s vote and the amount levied against it are based on the percent of value assigned in the Master Deed to each Unit (0.17422% for each of Units 1-14 and 0.64185% for each of Units 16-167). 

 

The Special Assessment payments would be due on the first of each month beginning in May 2012 and late on the 10th of each month.  Co-owners would receive a booklet with six coupons to be used when making their Special Assessment payments. A $25 late fee would be levied on the 11th of any month that a co-owner is not current with their Special Assessment payments.  

 

The Board has decided to hold this Special Meeting on-site and on a Saturday so members will have the maximum opportunity for participating in the Special Assessment election.  Sign-in will begin at 9:30 A.M. and the meeting will begin at 10:00 A.M. sharp.  The 35% meeting quorum requirement can be met with the presence of the three Board members, the General Proxy they will be holding from the CPTF for their 47 Units and the presence of at least nine more co-owners, either in person or by general proxy.   

 

However, there is no reason why participation in this election cannot be nearly 100%. Each co-owner owns a percentage of the Manors at Central Park Condominium Association and along with that ownership comes the responsibility to participate in the Association’s decision-making processes.  If you will be out of town that day or otherwise unavailable, please sign the enclosed General Proxy and give it to a neighbor or Board member so that they may cast your vote for you.

 

At 10:00 A.M., the president will call the meeting to order, explain the proposed Special Assessment, answer any questions, appoint election inspectors and then open the voting.  This will be a very short formal meeting followed by an extended voting period.  Once you cast your ballot, you will be free to go.  If you cannot make it for the start of the meeting, you may come and cast your ballot in person any time before 12 o’clock noon.  At that time or as soon as practical, the Board will close the voting and ask the election inspectors to count the ballots.  The election results will then be posted on the garage door at 49997 Lexington East and also on the Manors Blog at http://manorsatcentralpark.blogspot.com

 

The Board recommends a “yes” vote on this Special Assessment. If approved, the curb repairs and final layer of asphalt paving will be completed before the end of 2012.  Please read the attached fact sheet for more details.  If you have any questions, please contact a member of the Board.

  

Sincerely,

The Board of Directors of the Manors at Central Park Condominium Association

Mike Grobbel – President, 586-726-0317

Bhartan Amin – Secretary, 586-239-8082.

Larry Cybulski – Treasurer, 586-254-5089

Special Assessment Fact Sheet

 

At the April 14, 2012 Special Meeting, the Board of Directors will be asking members of the Manors at Central Park Condominium Association to approve a Special Assessment for the purpose of funding the

a)      Removal and replacement of 194 lineal feet of cracked concrete curbing

b)      Crack-filling and seal-coating of the asphalt paving in front of Units 16-22 and Units 166-167 that was completed in 2005

c)      Paving of the final asphalt layer on the remainder of our streets and private access drives.

 

A Special Assessment requires the approval of more than 2/3rds of all "members in value" (as opposed to "members in number"), since it is levied on the basis of the percent of value assigned to each Unit.   Per the Amended Master Deed, owners of Units 1-14 have each been assigned 0.17422 percent of value and owners of Units 16-167 (including the Carpenters Pension Trust Fund, which owns 47 incomplete units) each have 0.64185 percent of value (owners of all Units each have a vote that is worth 1/166 = 0.60241 percent when voting by number). 

 

Shelby Township had obtained a letter of credit in 2004 from Sable Realty Ventures to be used in the event that the company failed to install the final layer of asphalt paving.  However, the Township has recently discovered that their letter of credit is no longer valid.  The President and Secretary of the Manors Board of Directors presented a letter and addressed the Shelby Township Board of Trustees at their Feb. 7, 2012 meeting, asking the Township what they intend to do about the loss of their letter of credit and the completion of the paving at the Manors.  At the conclusion of the presentation, they promised to provide our Board with a written response within thirty days.  Five weeks later, that promise remains unfulfilled.  Attorneys for the Carpenters Pension Trust Fund maintain that they are not required to honor the legal agreement that Sable Realty Ventures made with the Township to provide the final paving at a later date. Therefore, the entire cost of the final paving will have to be paid by the owners of the complete and incomplete Units that comprise the Manors at Central Park Condominiums.

 

The Board estimates that the final paving project will cost $85,507.00 and therefore the Special Assessment levy will be $148.97 ($85,507.00 x 0.0017422) for each of Units 1-14 and $548.83 ($85,507.00 x 0.0064185) for each of Units 16-167. These levies may be paid in six equal monthly installments of $24.83 and $91.47 respectively, beginning on May 1, 2012. The Carpenters Pension Trust Fund owns (47) incomplete Units and they have agreed to pay the Special Assessment amount for each of their Units. 

 

The Board of Directors recommends a "yes" vote on the Special Assessment for the following reasons:

a)      The final paving is a capital improvement and therefore our Bylaws require that it be approved and funded via a Special Assessment instead of through our replacement reserve funds or the annual budget.

b)      The exposed, 2.5 inch thick, base layer of asphalt is already seven years old and was not designed to stand up to weather and traffic for that length of time; further delays could necessitate repairs that must be made before applying the final, 1.5 inch thick, asphalt wear surface layer, thus significantly increasing the total cost beyond the current level.

c)      The cost of asphalt paving has more than doubled since 2004 due to the increased cost of petroleum; further delays will likely result in a higher cost to complete the final paving project.

d)      Further delays could also result in the loss of participation by the Carpenters Pension Trust Fund; if this should happen, it would increase the currently proposed Special Assessment levy by $45 for each of Units 1-14 and by $165 for each of the completed Units 16-167.