This Is our Village

Thursday, November 3, 2016


I don't understand why my friend Gary Olman insists that replacing the Clubhouse air-conditioner is obviously a capital improvement (and thus a WPRF expense) and not a "repair" (which apparently according to our Triple-Net Lease, UCO must fund). He's very tough on Dave Israel on this issue, who Gary claims has effectively sold us down the river.

I'm not an attorney and I am not an expert on our Triple-Net Lease, but to me a capital improvement is when you add something new or intrinsically significantly better. If the Clubhouse DIDN'T HAVE air-conditioning and we added air-conditioning, that would be a capital improvement. If your condo's roof needed replacement after 18 years, and you replaced it with essentially the same kind of roof, that would not be a capital improvement.

Am I wrong?


  1. Hi Lanny,

    This matter was submitted to the UCO Attorney, Rod Tennyson.
    In short, his opinion is that the replacement of the Cooling Towers (NB we are not replacing the entire HVAC), is not a Capital Improvement.
    It is a "Refurbishment, Replacement, Repair" per the Millennium Agreement.

    One of our Residents is threatening to sue...quelle surprise.

    We in UCO, must act on professional legal and technical advice; this is the basis of our decision.

    This item, the cooling towers, was debated and passed by the UCO Operations Committee.

    Dave Israel

  2. Just about what I expected. It makes sense. Thanks, Dave. "Quelle surprise' about the threat of a suit is right, although I'd have thought the chances of such less by a factor of one.

    1. Good point Lanny, the silly suit happy duo is now a single.


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