Alert: Progress in Progress

We met yesterday to review "Permit Drawings".

David, Scott, Tom and I met yesterday for a long, 6 hour session. It was rough but I'm happy with the outcome. The drawings are complete enough for two purposes: accurate pricing and building permit.

The estimate I currently have is a ballpark that enabled me to get a loan. I've got the loan. Now, the fun starts. David will use these drawings and price each area accurately. If we're still in the ballpark, we're good. If the new pricing doesn't fit in the budget, we get to lower quality or remove items to make the project fit in budget. In the current economy, I'm a little nervous.

Of course, nothing moves without building permits. These drawings will go to the city folks for approval and permit so we can begin construction. Current plans have us starting work in 3 weeks.

It was hard writing this with my fingers crossed.

The Waiting is the Hardest Part

"Wait. Design. Pay Interest. Wait. Design. Pay Interest."

Queue Jeopardy music.....

"What is the progress stage of 308 West Main, Alex."

There seems to be progress but none to write about. We meet for our weekly Tuesday meetings and discuss material, elevation and other details of the floor plan. When complete, they go before engineering and the city for approval. Hopefully I then get permits and work begins. Until then, there's nothing much to write about.

The waiting is the hardest part
Every day you see one more card
You take it on faith, you take it to the heart
The waiting is the hardest part

Appraisal Returned

The appraisal came back today and was very near the amount that I needed it to be. This means the bank will loan me the money needed for construction. So, onward toward Building Permits and City Approvals.

The appraisal process was interesting: no buildings in the downtown core have been built, refurbished and then resold. So, what's the basis for the folks performing the appraisal to make their estimates? This posed some challenges. In the end, the building's appraised value = Purchase Price (approved during purchase loan) + Construction Cost.

I've been reassured that NO buildings for sale after refurbishment is a good thing for me as it shows the building is a good investment and will climb in value. I'll know in time.

Demolition is nearly complete. The visual impact of removing the "stuff" is significant. The space looks cool. Very cool. But it also looks empty and the task to make it seem like a home appears more daunting. I'll take some pictures this weekend.

Construction Loan Approved

Friday, I got the following from my banker:

Increasing the loan.....was approved contingent upon the building appraising......... I'll get (them) started on the appraisal tomorrow.

I guess I should be concerned the building won't appraise for the loan amount, but that would be valuable (though disappointing) news. So, I'm counting this note from my banker as a major milestone along the project path.

Harrington Bank has been convenient to deal with. These are uncertain times in the US regarding real estate loans. I'm finding Harrington cautious, which they should be, but also liberal. Not having a large governing board seems to allow them to process work close to the customer. I suppose it should always be that way but it isn't. Go Harrington!

Work Begins......sort of

Demolition contracts signed. Self-Help consulted and location for dumpster and toilets are confirmed. I'm added as an endorsement to the contractors insurance policy. City plans are being drawn up to decide what portion of the front sidewalk can be blocked for purpose of barricade once the front comes down.

The work that goes on behind the scenes to get to complete major milestones is significant. I'm glad Scott is so diligent and is working on my behalf.

Unknowns that must become knowns before the end of demolition phase.....

• Access to back entrance and rain water management
• Construction loan details
• Where (if) to move the loft space
  

It seems opportunity for tax credits will be reduced if I continue with the plan to cut-out the third floor near the front of the building. Historic preservationist are concerned the "loft" will be visible from the street (it will) which would conflict with the period look. So, I need make some decisions about tax credits and possibility to move the loft to another portion of the interior.

More soon when actual demolition begins.