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WE DO NOT NEED and CANNOT AFFORD THE COPPER CENTER

and ITS 22,000 SF TO HOLD and MAINTAIN. 

LET’S SELL IT and CREATE MORE AFFORDABLE SOLUTIONS !

NEW VOTE on the
Copper Center

Why re-consider the purchase of the Copper Center?

Read below for key reasons....

Information contained in this site has been documented and verified through meetings, chats, emails, board packets, committee reports, online sources and more. Please inquire if you need documentation or believe any piece of information contained in this site is invalid.

(Note: All names are redacted for privacy and legal purposes.)

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All price quotes on construction came from 2 Tucson commercial contracting design/build firms. One has been in contact with a board member.  More info. to follow.

Please attend the open resident meetings scheduled Feb 9th, 10th & 16th 

which will present alternative concepts with cost comparisons.

BRIEF SUMMARY:

 

1) WHY RE-CONSIDER THE PURCHASE OF THE CC BLDG.? 

It was based on mis-information. It was stated the WC would cost $4.6M to repair or replace and that the contents of the bldg. would need to move to the CC. But based on 2 engineer reports (one prior & one after the vote) the WC is sound.

2) WHAT AMOUNT OF SPACE IS ACTUALLY NEEDED?

The art clubs (including the Loan & Costume Rms.) are using 9400 sf. Subtracting service areas, there is 10,000 sf of un-used space in the 22,600 sf bldg.

3) WHAT’S WRONG WITH HAVING SOME EXTRA UN-ASSIGNED SPACE AT THE CC FOR POSSIBLE FUTURE NEEDS?

Additional space comes with additional costs to renovate and maintain. Its operating expenses are at $50K p/yr. alone. It has been stated that eventually 19,000 sf will be renovated. At the Assoc.'s recommended pricing of $180 p/sf that's $3.4M. Add this to the $4.5M purchase, that's a $7.9M prospect for less than a quarter of the  population of the community.

4) CAN WE AFFORD THIS EXCESS SPACE? NO, WE CAN'T.

We are 'in the hole' by $2M in our Capital Fund of which could grow to at a minimum, $4M+. Therefore our future potentially holds Special Assessments (of possibly $2K to $3K+ per household) and/or HOA Dues Increases. This negative balance also leaves no room for other future projects Residents may propose, for many years. I t was even stated by the Assoc. the work wouldn't start fo r 5 years.

5) ARE THERE REASONABLE ALTERNATIVES TO THE CC? YES.​

There are at least 3 alternative concepts and more may surface, which will cost less and saves the community money.

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WE CAN'T AFFORD THE CC BLDG. AND DON'T NEED IT.

SCOV Mgmt. had stated of the CC purchase (12/22 Q&A) : "If it doesn't work, we SELL the asset."

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LET'S SELL IT AND WORK ON MORE AFFORDABLE WIN-WIN SOLUTIONS.

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Click the button to hear the Jan 13, 2024  lecture by Board running Candidates about the current condition of SCOV's finances and why we cannot afford to keep the CC Bldg.

 

 

 

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Click the button to hear  the Jan 27, 2024 presentation on our HOA's finances, including the cash positions and its fund balances by a seasoned financial profession with over 3 decades of experience reviewing & analyzing corporate and business financials as an Executive in major US banks. This SCOV resident completed a cash flow forecast & analysis that illustrates the challenges we face after buying the Copper Center for $4.5 million. 

 

 

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1

WHY RE-CONSIDER THE PURCHASE OF THE COPPER CENTER ?

  • The $4.5M purchase of the Copper Center (CC) was based on needing more space and that our Welcome Center (WC) was in poor condition (warranting razing). It was stated the WC would cost $4.6M to repair or replace and that the contents of the bldg. would need to move to the CC. We have since learned that the WC is solid and has many years of useful life remaining. Based on 2 engineer reports (one prior and one after the vote) the WC is structurally sound. There was no need to replace its approx. 11,000 sf of space at the Copper Center.

2

WHAT AMOUNT OF SPACE IS ACTUALLY NEEDED ?

  • ​During the past year the CC Renovation Task Force (CCRTF) asked clubs what they needed & 'wanted', and (5) clubs requested approx. 7000 sf of space in the CC. The Loan & Costume Rooms were offered 1800 sf, totaling roughly 9100 sf. The CC has 22,660 sf in the bldg. Then a Community Room of 1600 sf was created, bringing the utilized space up to 10,700 sf. Subtracting the 3400 sf of service areas in the bldg. that leaves approx. 10,000 more sf than we need: almost the size of the 11K sf current Welcome Center.

3

WHAT’S WRONG WITH HAVING SOME EXTRA UN-ASSIGNED SPACE AT THE CC FOR POSSIBLE FUTURE NEEDS ?

  • Additional space comes with additional costs for renovation, maintenance and upkeep. (i.e., The CC costs $50K per/yr. for operating expenses alone.)

  • The CC's renovation has been estimated to cost  approx. $3.3M. The price per sq. ft. was figured at $180.

  • Note: $4.5M (cost of bldg.) + $3.3M = $7.9M, divided by 22,660 sq. ft. = approx. $350, its price per square foot (p/sf), which is a common current rate in commercial real estate. Therefore 10,000 sq. ft. of unassigned space x $350 p/sf = approx. $3.5M. So, to hold this excess/minimally used space, we will have an investment of $3.5 M.

  • And, since there is minimal parking at the site, this excess space may never be able to be used.

  • The total cost for the CC including its purchase & renovations is $7.9M. Adding in the renovations still needed at the Artisan Center @ $600K, the entire proposition costs $8.5M, for only a quarter or less of the population of residents in the community. Does that make sense, when such things as another pool and more room for hard courts are the number one requests from residents? (per may 2023 survey).

4

CAN WE AFFORD THIS EXCESS SPACE ?
NO, WE CAN'T.

  • At present our Capital Fund used for building and renovating is at a negative $2M+. Spending an additional $1.8+M* (minimum) on CC renovations, we will be left with a negative balance in our Fund of $3.8+M, but depending on current contractor prices p/sf for renovations in a medical building, it could become a negative balance of $6.6 M or more*.

  • No financial plan has been put forth to Residents as to where this potential $1.8M to $3.3M cost might come from. Leadership has reported it will take up to 5 or more years to replace the negative $2M in our Fund bringing it to zero. It has also been stated renovations won't start during that time either Thus, this leaves us to believe, substantial Special Assessments (possibly $2-$3K+ per household) and/or Dues Increases are in our future, if the plan is to move forward in the near term.

  • Note, this large negative balance will leave no room for any other Capital Improvement Projects (CIP's) for years to come, such as additional Hard Courts, Pool improvements/Additions or any other CIP's Residents may require.

  • click here to view a forecast of incremental costs

  • click here for the costs of the Copper Center

  • click here for the fund balances from SCOV Nov financials. Note the negative balance in the Capital Fund. This is before any renovations to the Copper Center.

5

Marble Surface

ARE THERE REASONABLE ALTERNATIVES TO THE CC BLDG.?   YES.

  • There are (4) potential alternative Plan Concepts that have been explored. They will be presented on Feb 9 &10 at open resident meetings.

  •  click here for info (to follow)

WE DO NOT NEED AND CANNOT AFFORD

the Copper Center building and

its 22,664 SF to hold and maintain.

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LET’S SELL IT

and create more affordable win-win solutions.

SCOV Mgmt. stated,

"If it doesn't work, we SELL the asset."

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If we do sell the CC our Leadership

can control who they sell it to.

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© 2024 Vote
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