Questions and Answers - Continue to Ask. We are here for you and want all residents to be fully informed before voting.

Questions regarding the designs presented by Loren Wegman

Q. “What if I don’t like the light fixtures or fabrics in the renderings?”

A. The renderings are concepts, not final selections. They are meant to show the overall style, layout, and feel of the renovated spaces rather than exact fabrics, fixtures, or accessories. Because the project will not begin until May 2027, we have intentionally not finalized specific items that may change in price or availability by then. Once we receive a YES vote from a majority of residents, the Design Committee will work closely with Loren Wegman’s team to select the final fabrics, finishes, and accessories within the approved budget. We are listening carefully to resident feedback and have already shared your comments and preferences with Loren’s team so the final design reflects what our community wants.

Q. “I didn’t see a rendering of the kitchen in the Social Room. What kind of finishes will be used?”

A. To stay within budget, we had to limit the number of rendered views, as each rendering carries a cost. Part of the kitchen can be seen in the bar rendering at the top left of the image. The kitchen will feature white or off‑white cabinetry with all new, cabinet‑ready appliances. We will continue to have two warming ovens, dishwashers, and a refrigerator to support catering needs. Due to code requirements, this catering kitchen cannot include a stove or standard oven. The kitchen is located to the left of the TV cabinet in the elevation drawing.

Q. Has technology for TVs and integrated web-based audio/visual (for Zoom meetings) been addressed?

A. Yes. Audio‑visual capability was one of the very first “wish list” items identified by Rich and the Design Committee. The plan includes three large TVs in the Social Room and one in the Card Room, each 72 inches or larger. We obtained bids from AV companies that specialize in commercial systems to ensure reliability and ease of use. The rooms will have Sonos‑type integrated speakers for music, movies, games, and meetings, and the system will be Zoom‑ready with microphones integrated into the setup. With the larger opening between the Social Room and the Card Room, residents will be able to sit in either space and still participate in board meetings, even when there is an overflow crowd. We will be able to Zoom on some TVs while streaming content on others, making both meetings and social events more functional and enjoyable.

Design and scope questions

Q. How did we arrive at the designer’s budget?

A. As a committee, we researched other buildings, toured renovated spaces, and discussed what worked well and what did not, focusing on needs specific to our building and residents. We interviewed multiple designers and compared their fees and fee structures. Our committee unanimously preferred the newly renovated Social and Card Rooms at Horizons, which were designed by Loren Wegman, a designer who specializes in commercial spaces like ours. After several meetings with Loren and her team, we refined the design concepts while staying cost‑conscious and negotiated a flat design fee that was included in our overall project budget. After receiving her initial plan, we worked with both Loren and our general contractor, EECON, to “value engineer” the project—reducing cost without sacrificing the overall design quality. If residents vote YES, we will continue working with Loren to finalize the next phase of the project while keeping within the budget presented at the Financial Town Hall.

Q. What will happen to the wood tones in the lobby?

A. The original honey‑colored wood has aged over time and now appears more orange. To update the look and coordinate with the new design, all wood surfaces in the upper and lower lobbies will be painted in a more neutral, gray‑toned finish. Painting the wood is significantly less expensive than stripping and refinishing it, which helps us manage overall project costs.

Q. What will happen to the marble floors in the upper and lower lobbies?

A. The existing marble floors will remain. The stone is timeless and high‑quality, and keeping it is both aesthetically and financially responsible. The floors will be cleaned, restored, and professionally polished at the end of the renovation so they look refreshed and aligned with the new interior design.

Q. In the lobby rendering, there is a light in the middle of the circular staircase. What will happen to the current sculpture?

A. The sculpture will be repurposed and placed in the exterior rotunda in front of the building. This allows us to preserve a familiar feature while showcasing it in a new, prominent location.

Q. Will we be keeping some furniture and accessories?

A. Yes, we plan on keeping the sofas and coffee table in the lobby. Most of the furniture in the current social room and card room will be replaced with more functional, comfortable and updated furnishings. We will be assessing each piece in other areas and either keep, re-purpose, sell or donate as we get closer to finalizing the selections for the designed look.

Q. Will we keep lockers in the men's and women's spa?

A. While we won't keep all the lockers, we will most likely have 4-5 lockers available for residents. The upper lockers will be open shelves or cubbies, while below will be the lockers.

Questions on Scope of Project

Q. When will the elevators be done and are they part of the assessment?

A. We have asked Loren Wegman to design the elevator interiors, and the Design Committee will be involved in reviewing and approving those designs. Rich has contracted with Edge, a reputable elevator company. The elevator work will be completed before the Social Room and Card Room renovations begin. Importantly, the elevator project is not part of this special assessment.[1]

Q. Will the guest suites be renovated?

A. Yes. The guest suites will be updated using Loren Wegman’s design so that they coordinate with the rest of the building. To save on general contractor supervision fees, the guest suite work will be managed outside the main Social and Card Room general contractor scope. Rich will supervise this project.

Q. Why does this renovation project include so many areas? Why not break it up?

A. Every area included in this project is in genuine need of renovation. The guest suites, bathrooms, spa area, catering kitchen, and bar are original to the building from 2002. The Social and Card Rooms were projected for an upgrade in 2025, and the spa area and bathrooms are scheduled for 2027. It is significantly more cost‑effective to complete these related projects as one coordinated plan, with one general contractor moving efficiently from area to area under a single assessment. If we split the work into separate projects to lower the initial assessment, we would likely face a second assessment in a year or two, and per our general contractor, costs could increase by approximately 30% due to remobilization, inflation, and lost economies of scale.

Q. Why do the Spa area bathrooms cost so much?

A. In a commercial space, renovating large, tiled bathrooms with multiple showers, toilet areas, and other amenities, there is different cost basis than a residential renovation. Commercial spa work typically layers in higher code requirements, more durable finishes, and commercial plumbing/electrical specs, which pushes costs above upscale residential numbers, often toward or past 500.00 per square foot in premium markets. Our spa/ bathroom area is quite large at 1389 square feet. We were able to get a high-end design included in the entire renovation to the estimated price per square feet of $413. That is a total savings of $121,495 or 17.35%. If we wait to do this outside the proposed scope of work in other areas, we will be assessed more in the next 2 years for the same renovation. EECON estimated a 30% increase, which comes out to an additional $171,901 increase in cost for the same area.

Financing questions

Q. What are the payment options for the assessment?

A. The detailed financing options were outlined in Rich Dahn’s June 1, 2026 email, which also included the Wegman slide deck and the stack‑by‑stack assessment breakdown. That same breakdown is available under “Downloads.”

• Option 1: Pay the assessment in full by March 1, 2027.

• Option 2: Use a five‑payment, interest‑free plan from November 2026 through November 2027, with payments scheduled in months that alternate with HOA fees.

• Option 3: Finance through Cogent Bank on terms summarized in Rich’s email (rate equal to 5‑Year Treasury + 2.3%, fixed five days before closing; estimated at 6.5% as of today’s market; closing costs include 0.35% origination, 0.35% Florida doc stamps, a $100 UCC filing fee, and possibly attorney document fees if the loan exceeds $1 million; anticipated maximum term of 48 months on a $3.5M project).

Option 3 has prompted the most follow‑up questions, which we address below.

Q. Will we be able to deduct the assessment from our taxes.

A. No. But you will be able to deduct the amount against capital gains when you sell your condo to lower your capital gain impact.

Q. Does the Cogent Bank financing expose the Association or reserves to additional risk?

A. The Board’s intent is to structure the Cogent Bank financing so that the Association, its reserves, and non‑participating owners are not exposed to undue risk. While the Association will technically be the borrower, the obligation to repay is passed through to only those owners who elect this option as part of their individual assessment payments. The cost of using this option includes interest and closing costs, so we do not expect a large number of residents to choose it.

Sean from Cogent confirmed that under this structure:

• The Association is the borrower, not individual owners.

• No mortgages are placed on individual units.

• No owner credit checks are run.

• No personal guarantees are required from owners or Board members.

• Cogent’s security is a UCC lien on the Association’s assessment revenue, not on individual units.

Attorney Response to Owner FAQ in regard to the Estancia Renovation Project.

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Q- Whether the Association is providing any direct or indirect guaranty, credit support, or financial backstop to the bank for owners who elect financing;

A- The Association will sign a promissory note for the loan and will be obligated to pay the bank. The Association will have the right to initiate collections actions against owners who elect the financing option.

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Q- Whether the Association is obligated to continue remitting payments to the bank in the event participating owners’ default on their obligations;

A. Yes. Per answer to the above question, the Association will have the right to initiate collections action against delinquent owners. In the same way, the Association is obligated to pay all of its vendors, even if some owners are delinquent in paying assessments to the Association, whether regular quarterly or special assessments. The financing option should reduce the likelihood that such owners would otherwise default in paying the special assessment for the renovation project. In addition, if an owner elects the finance option and sells the unit, the buyer will be permitted to assume the remaining installments of the special assessment, which should also result in fewer delinquent owners.

Q. Whether the Association’s statutory assessment collection powers under Chapter 718 are being pledged or otherwise relied upon by the bank as collateral support for the financing structure;

A. Yes.

Q. Whether reserve accounts, operating accounts, or other Association assets are subject to any pledge, offset rights, or cross-default provisions in favor of the bank; All operating accounts and assessment/collection rights, but not reserves.

A. Yes, with respect to offset right and cross-default provisions as is generally customary for commercial loans

Q. What legal review has been performed regarding potential exposure of non-participating owners to risks associated with participating owners who finance their assessments?

A. Attorney has verified that non-participating owners are not providing a guarantee directly to the bank. The Association cannot record a lien with respect to the renovation special assessment against non-participating owners if they pay the renovation special assessment. In general, all owners, whether participating or non-participating, are obligated to pay any special assessment to the Association if there is a shortfall in revenue, whether caused by the loan or any other Association expense. Finally, as explained above, if an owner elects the finance option and sells the unit, the buyer will be permitted to assume the remaining installments of the special assessment.

Q. Whether the proposed replacement of the existing Finemark line of credit includes any broader banking relationship requirements, financial covenants, or restrictions affecting the Association.

A. Yes, the bank providing the loan will require that the Association deposit its accounts with that bank

Q. Whether the Board has considered the potential impact this financing structure could have on unit marketability, particularly given the number of units currently listed for sale;

A. No. However, many condominium associations finance renovation/repair projects with loans. Our counsel has told us that none of his clients who have taken out loans to finance renovation/repair projects have informed him that there was any adverse impact on marketability. The potential impact on unit marketability will not be any different than if the Association required all owners to pay the special assessment without the finance option.

Q. Whether prospective purchasers and their lenders may view the arrangement as creating additional contingent financial exposure within the condominium association structure.

A. See answer above.

Q. In addition, I would appreciate clarification regarding units currently involved in probate or estate administration matters. Have not been notified of any planned estates at this time.

For example: Would executors or personal representatives be permitted to elect the financing option on behalf of an estate-owned unit; If they have such authority under the legal documents authorizing them to act as executors or personal representatives.

A. If financing is elected during probate or estate administration, would heirs, beneficiaries, or subsequent purchasers automatically assume those obligations. That would depend on the applicable probate/estate planning documents.

Q. Would future purchasers of such units become responsible for repayment obligations tied to financing decisions made by prior owners, estates, or executors.

A. Yes, if not settled at closing with the current unit owner.

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Q. Has counsel evaluated whether these arrangements create any disclosure or title-related issues during resale transactions.

A. The Association’s counsel has not made such evaluation. If owners have any questions with respect to disclosures to buyers, they should consult with their own counsel.

Q. Can we change our vote?

A. Yes. If you voted no and decide that it is in the best interest of the building to go forward with the proposed plan, you can change your vote before the voting closes on July 3, 2026. See Rich Dahn.

Know that this is an aging building and something will need to be done in the near future even if we don't get the majority yes votes. Doing nothing costs more in the end whether it is splitting the project, or delaying the project.