Gloucester, VA Page Middle School Construction Information

We continue to receive more information on the Page Middle School decisions process.  We think everyone will find the information below very interesting.

"County records reflect the Page Middle School building, its contents and property in the open were insured for a total of $13,513,744 at the time of the April 2011 tornado.  At the end of the negotiation process, the insurance carrier’s settlement offer to fund returning the school to an upgraded and functional state was $8,235,687. Due to initial low estimates by the insurance carrier, the County contracted RRMM Architects to provide an in depth assessment and analysis of the damage.  In RRMM’s assessment and analysis packet they elaborate on their solid knowledge of the building and its general character due to an April 2009 contract with the County to do a study on conversion of Page Middle school into an Administrative Operations Center. This professional services contract was extended about a month prior to the tornado. (This makes it clearly evident of the County’s intent to keep the building and property long term.)  In their assessment RRMM noted several areas in which they disagreed with the insurance carrier’s assessment.  In all fairness to RRMM, the areas they disagreed with appear to be justified and would have enhanced the safety, quality and durability of the building significantly.  RRMM’s final estimate of damages was $9,994,355.  That is a difference of $1,758,668 with both estimates being under the $13,513,744 coverage limit. 

 

Because of its age it is only reasonable that the utility infrastructure servicing the building would have needed to be upgraded or replaced.   These costs would in no way have been as high as what it will now cost to install the same infrastructure to the school site on T.C. Walker Road.  The parking and driveway areas would have needed to be upgraded to compliment the rest of the re-construction.  For arguments sake, let’s say all of that would have cost $2,000,000. (Very high estimate)  Let’s say RRMM’s estimate turned out to be the correct cost to rebuild.  Let’s say the County kicked in another $2,000,000 to make the building even better and storm shelter capable.  That would have been a total of $5,758,668 that the County would have contributed to opening a fully functional school building.

 

How did this repair and reconstruct project that should have cost the County less than $6,000,000 out of pocket turn into a twenty plus million dollar project that is going to result in tax increases beginning next year and substantial loan interest payments for twenty years?"

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Hurricane Sandy America's Next Big Financial Boom And Bust- A Word To The Wise

NEW YORK, NY - OCTOBER 31: Firefighters stand among the remains of homes in the Rockaway neighborhood destroyed by fire during Hurricane Sandy on October 31, 2012 in the Brooklyn borough of New York City. With the death toll currently at 55 and millions of homes and businesses without power, the US east coast is attempting to recover from the affects of floods, fires and power outages brought on by Hurricane Sandy. JFK airport in New York and Newark airport in New Jersey expect to resume flights on Wednesday morning and the New York Stock Exchange commenced trading after being closed for two days. (Image credit: Getty Images via @daylife)

NEW YORK, NY - OCTOBER 31: Flood damaged streets are viewed in the Rockaway section of Queens where the historic boardwalk was washed away due to Hurricane Sandy on October 31, 2012 in the Queens borough of New York City. With the death toll currently at 55 and millions of homes and businesses without power, the US east coast is attempting to recover from the affects of floods, fires and power outages brought on by Hurricane Sandy. JFK airport in New York and Newark airport in New Jersey expect to resume flights on Wednesday morning and the New York Stock Exchange commenced trading after being closed for two days. (Image credit: Getty Images via @daylife)

Look out Henry, the wolves are already here and the vultures are already flying up above and more are quickly on their way.  While the North East was being hit by the devastating effects of hurricane Sandy, the wolves were already printing up new business cards and ordering new magnetic signs for their trucks.  The businesses?  Property recovery and contracting services.  Licensed, bonded and insured.  If you are willing to believe that.  Some just may be some or all of the above, however, not particularly in your state or area.  Others won't be at all.  With local contractors in devastated areas already being booked for months out already, your chance of getting a hold of a reliable and reputable contractor are going to be near impossible unless that contractor is a very close friend.

  Fortunes will be made from this travesty at all levels and fortunes will be lost that have not already been lost.  One may not have a choice as to whom they hire to get clean up jobs done.  The best advice we can give you is to check out each potential contractor out to the fullest and do not let them pressure you.  If they offer a lot of pressure, then let them move on and even help them to do so.  Check out where they are licensed, bonded and or insured.  Make sure that coverage also covers any job the potential contractor may do for you.  If you have no choice and there will be plenty of you who don't.  At least check out the backgrounds of the potential contractor and confirm where they presently live and get copies of their drivers license.

  We know what you are about to go through and these words are based on actual experience.  We had no choice but to hire a rogue contractor who said he was local and as it turned out later, he was from Florida.  He was supposed to remove a tree from our property before it fell and hit our house.  To make a long story short, we didn't have to worry about the tree falling on our house, the contractor made sure that it did.  While cleaning up the mess and removing the tree he dropped on our house, he and his crew were dropping tree branches on our new Lincoln Town Car.  We had the car for less than a month.  We had to sell it for scrap a few weeks later as it was beyond repair.  Of course the contractor gave us a ton of false information and we were never able to recover our loses.  Our insurance company even tried to help us find him to recover anything at all possible.  The guy just fell off the face of the earth.

  The insurance fraud that is about to be committed by many would be folks seeking gain from this travesty are going to be everywhere.  The insurance companies know this and there will be a good amount that gets paid out even though the insurance companies know of the potential fraud.  Higher premiums for us all.  Not to feel all that bad for the insurance companies, they to are going to be playing some serious games and many people are going to wake up to see just how bad their policies really are.  The insurance companies will claim higher payouts than actually paid, and will pay out smaller claims than they will actually state.  This is just the nature of life these days.  Rates for property insurance will go up all over the nation to help recover the payouts claimed by the insurer's.  Prices on many goods will also go up due to claims of loss and the loss will be lower than the claims stated.  Plus there is the real issue at present of transportation in and out of distressed areas that will raise costs temporarily.

  There will be a serious credit crises arising out of all this as many people will stop paying their consumer credit, instead opting to pay rent and for food instead.  Many are now homeless and there will be a good number who will remain homeless because of this storm.  Both car loans and home mortgages will be highly stressed as many will walk away from the payments and just let the banks or insurance companies take the hit on the loss.  Some will rebuild but it's only some who will be able to afford to rebuild.  The overall costs that hurricane Sandy will hit us with will be in the hundreds of billions if not well over a trillion dollars.

  And we have yet to discuss all of the vehicles that have been damaged by the flood waters.  Many of these vehicles will end up having their titles washed and cleared and these cars will be chopped, cleaned and resold as clean at the highest values that can be had.  Those stuck with the purchase of these vehicles will end up with a vehicle that has a very early ending or very high repair bills.  The gas tanks, gas lines, brake lines and fuel intake all need to be cleaned and in many cases replaced.  This simply will not get done.  Within the next year there will be a flood of slightly used cars all over the country that are not fit to be bought, but how will you know?  When your wallet is drained you will know and there won't be any recourse.

  The auto manufacturers should be gearing up for increased output as many people will need new transportation.  Entire fleets will need to be replaced.  Look for increased shipments into the northeast within the next three months.  Used goods of every kind will hit markets on line such as eBay and Amazon being sold as new or slightly used that came out of flooded areas and will be less than desirable.  The tremendous amounts of food being thrown away even as you read this could feed a third world country for probably about an entire year.

  Yes there are a lot of profits to be made on all of this.  Devastation is good for business.  The more the merrier.  Wait, what about the coming tax increases to offset the cleanup costs the local, state and federal government are going to have to pay.  Yes that is coming to.  And do not forget about your friendly IRS man who will be highly scrutinizing returns and claims for losses.  What each of you can do to help make it through this mess?  Help thy neighbor and also seek help from thy neighbor.  Learn to trust and respect one another again.  Don't look for or wait for the handouts.  Your going to be disappointed when they are either not there or you do not qualify or you just missed the boat or it's no where near close enough to even be considered help.

  Come together as a community.  Put your faith and trust back into God and each other once again.  Those who do will succeed.  Others will complain for years to come and still do nothing.  For one last idea.  There are opportunities waiting.  Recovery services can be a very big business.  If you can recover wood, doors, paneling, or any other useful building materials in a honest fashion without taking advantage of another's misfortune, then you could help build a business and a tremendous service to others.  What can come out of this experience can either be good or bad,  What will you make it?