So we had a spontaneous unofficial meeting yesterday in the food court at 7:30pm. Two directors were present as they explained each item on the budget and cleared up a lot of the confusion as to why there is such a huge increase. Around 35 people were present in total.
Basically:
In the first fiscal year (last year) Bazis did not make us pay 100% of the maintenance fees. They made us pay around 50% of the real fees then took the hit for the rest. This was to make the units look cheaper to maintain so the purchasers won't bail. This also made it more attractive for tenants to set up shop here. Once final closing ended they continued to take the hit and will stop doing so next month which is the start of the next fiscal year. All condo developers do this to make their units look more attractive and to minimize defaults. In reality if Bazis did not take the hit and we paid 100% of the real costs to maintain the mall it would be really a 9% increase, not 113%.
Bazis also signed us up for a really exploitative HVAC maintenance contract. Since Bazis was only going to pay the HVAC guys for one year, they left no limit as to how high the HVAC guys could increase their fees each year. So it is the second year of the 5 year HVAC contract and the guys increased their fees from 41K to 120K, a 300% increase. Reasons cited were that the HVAC system is old (3 years old). Terminating the contract would be very expensive and even if we do the new guys we hire will have to learn where everything is all over again since the system is hidden behind the ceiling. The board plans on hiring a lawyer to deal with this.
Bazis also cut a lot of corners especially with the HVAC system. The entire system needs to be redone. The board plans on hiring a lawyer to make them redo everything.
The second floor of Metro & LCBO is also shafting us on shared facility fees by making us pay more this year to maintain the escalator, loading docks(which only they can use) and second floor common areas. These fees went up from 182K to 346K. The board plans on hiring a lawyer to make them pay their fair share.
The biggest surprise we all faced was the 822% increase in hydro fees from 54K to 447K. Reasons given for this increase was that either someone was stealing our electricity or that the incandescent lights are costing us big money every year. The board plans on hiring an engineer to investigate. There are also plans to replace all the lights with LED. Some lights like the lights in the food court cannot be replaced by LEDs because the trees in the food court (which take 7K a year to water) need them to survive.
The doors actually do not cost 3K each to repair but actually 25K. Bazis did not install them correctly with the strong winds in mind so we will also hire a lawyer for this.
They also want to extend Bonnie's hours from 2 days/week to 3.5 days/week even though she doesn't do anything but send out emails about fire alarms.
My increase was small in comparison to some of the larger units. The Yonge street frontage units saw an increase of 2100/month per unit to a total monthly maintenance payment of 3600.
A lot of the business owners here when I told them the news replied that if maintenance fees were to increase by this much then they would close up. We plan on opposing this budget and may be ousting FirstServices residential in favor of another management company.