Press on to rebuild Westgate condos

John Howell
Posted 3/26/15

Two weeks ago today, a crane was piling up the remains of Building C of Westgate Condominiums as the victims of the previous day’s fire looked on and wondered what the future would …

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Press on to rebuild Westgate condos

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Two weeks ago today, a crane was piling up the remains of Building C of Westgate Condominiums as the victims of the previous day’s fire looked on and wondered what the future would hold.

Yesterday, William Herendeen, secretary of the Westgate Condominium Association – who also lost a condo in the blaze – disclosed that architects are already in the process of designing a new Building C to be built on the footprint of the one consumed by fire.

Depending of permitting, which could involve revisions to the existing two buildings, Herendeen thinks construction could start as soon as June and be completed in 10 to 12 months. He said a 36,000-square-foot building with 38 condos is planned.

Herendeen said Liberty Mutual insures the building for the full replacement value at $11.6 million. He observed that the new building would be required to meet the stricter fire codes implemented since Westgate was built in 1975 as apartments. In addition to sprinklers and firewalls, he thought the building might also be required to include elevators to meet other code requirements. He put the cost to rebuild at about $5 million.

What Herendeen had to say in an interview yesterday had been spelled out in a two-hour meeting with condo owners Tuesday night at the Crowne Plaza Hotel. The meeting was restricted to condo association members and closed to the news media.

Herendeen said the meeting was closed because some of it was spent gathering personal information such as whether an owner carried homeowner’s insurance and amounts, and addressing questions such as how, as owners, someone would sell their unit if they chose. There were also questions as to the level of protection being provided to the remaining two buildings – which Herendeen couldn’t answer – and when owners of units in Building C might gain access to the site in hopes of recovering items.

“The architects are already working on it,” Herendeen said of plans.

There’s good reason for the rush. As owners, even though their property has been lost to the fire, they are responsible for monthly condo fees ranging from $280 to $320, plus city taxes. The faster the building is up, the sooner owners are paying for tangible benefits.

“We’re going to move forward right now,” he said.

Herendeen, who is a vice president with Churchill & Banks, the property management company retained by the association to oversee the project, is also working to obtain what relief is available for the owners. He has been in contact with the Federal Emergency Management Agency and said owners may be eligible for low-interest loans from the Small Business Administration. He is also seeing what might be done to lower association fees as Building C is no longer tied into water and sewers, and that would generate savings shared by all 114 association members.

There may also be some relief from city taxes, according to City Assessor Christopher Celeste. He said the city has a “pro-rated” statute that enables the assessor’s office to value properties other than on Dec. 31 in certain situations, as the customary practice. In the case of the destroyed Westgate condos, he said the site would have to be cleared and leveled before that new valuation is applied.

But, nonetheless, owners are going to be faced with expenses even though they are without a home. What happens if they don’t pay?

Herendeen said this was an issue raised at Tuesday’s meeting, and one for which he is still seeking an answer. Under association bylaws, the association has the power to attach a lien on the property. The city likewise has the power to place a lien on the property, even though, at this time, there’s nothing “but air.”

Yet that “air” has value, and Herendeen notes owners have the ability to sell. What the buyer would be getting is the promise of a new condo when it is completed.

Herendeen said the association is exploring the possibility of obtaining a low-interest loan that would enable it to provide bridge loans to owners so that they wouldn’t be forced to turn to speculators looking to scoop up good deals on future condos.

The association has retained legal counsel and a public insurance adjuster to work through the process.

Herendeen said that once the city and state fire marshals and public insurance adjuster release the site, the association would work out a schedule for owners to pick through the rubble and retrieve belongings. He pointed out that it is critical that access to the site be controlled, and that items removed are the belongings of those taking them.

As of yesterday, the state fire marshal had not released a report on the fire. Mayor Scott Avedisian said Tuesday officials were seeking to interview one more owner of a third-story unit where the fire started before finalizing the report.

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