HomeMy WebLinkAboutPermit Correspondence 1986-8-5
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OLD DOMINION BODY & FRAME, LTD.
2380 riA I N
SPRINGFIELD, OREGON 97477
AUGUST 5, 1986
R. mKE FWDIA
WORKER'S COMPENSATION DEPARTMENT
LABOR & INDUSTRIES BUILDING
SALEM, OREGON 97310
SUBJECT: FIRM NO.: 539775-7
CITATION NO.: P5823-024-85
DATE ISSUED: JUNE 19, 1985
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'SEVERAL CIRCUMSTANCES HAVE OCCURRED THAT ARE MAKING IT IMPOSSIBLE FOR
US TO KEEP OUR SEPTEMBER I, 1986 COMPLETION DATE FOR EXPANSION OF OUR
FACILITY WHICH INCLUDE THE UPGRADE OF THE SPRAY PAINTING AREA. AFTER
SEVERAL TRIES WITH THE CITY OF SPRINGFIELD, AND OUR ARCHITECTS, WE
FINALLY RECEIVED OUR BUILDING PERMIT ON JUNE 24, 1986. AT THIS TIME, WE
HAD TO HAVE ALL OF THE SUBCONTRACTORS RESUBMIT NEW BIDS FOR CONSTRUCTION
BECAUSE THE BLUEPRI~rS HAD HAD SOME MAJOR CHANGES IN THEM TO MEET CODE.
MOST OF THE NEW BIDS ARE IN, HOWEVER, WE HAVE ENCOUNTERED A NEW PROBLEM.
AFTER MEETING WITH THE BANK, WE FOUND THAT IN THIS FINANCIAL CLIMATE OF
LOW INTEREST RATES THAT THE BANKS ARE NOT PREPARED TO LOAN ANY MORE
THAT 65 TO 70% OF THE FINISHED PRODUCTION SPACE. THIS DOES NOT INCLUDE
THE UPGRADING OF MUCH NEEDED PARKING, AND BUILDING FRONTAGE.
AT THIS TIME, IT APPEARS THAT WE ARE GOING TO HAVE TO CONSIDER CUTTING
BACK ON OUR ENTIRE UPGRADE PLAN TO FIT THE FINANCING AVAILABLE, AND NOT
SACRIFICE BRINGING PRODUCTION SPACE UP TO CODE. THIS MEANS THAT WE WILL
HAVE TO RESUBMIT BIDS FOR THE THIRD TIME TO OUR SUBCONTRACTORS TO HONE
THIS PROJECT INTO SHAPE.
EVEN IF WE WERE READY TO BEGIN CONSTRUCTION AT THIS MOMENT, WE WOULD
HAVE TO GO THROUGH AN APPRAISAL BEFORE THE BANK WOULD GRANT US A LOAN,
AND THAT WOULD TAKE APF~OXIMATELY 60 DAYS BECAUSE ALL OF THE APPRAISERS
ARE BOOKED SOLID. THIS FACT WOULD DELAY CONSTRUCTION UNTIL AROUND
OCTOBER 1, 1986, AND WE ARE HEADING INTO BAD WEATHER. WE ESTIMATE THAT
CONSTRUCTION WOULD TAKE BETWEEN FOUR AND SIX MONTHS TO COMPLETE WHICH
WOULD PUT US AT A FEBRUARY TO APRIL COMPLETION DATE, IF ALL WENT WELL,
AND THE WEATHER WAS COOPERATIVE.
IT WILL PROBABLY TAKE ANOTHER 30 TO 45 DAYS TO ROUND UP THE NEEDED THIRD
ROUND BIDS AND MAKE THE APPROPRIATE CUTBACKS TO BRING THE PROJECT IN
LINE WITH AVAILABLE FINANCING, AND THEN CALL FOR THE'APPRAISAL. IF THIS
GOES AS PLANNED, CONSTRUCTION COULD COMMENCE ABOUT NOVEMBER 1, 1986
AMID BAD WEATHER. THIS PUTS US AT THE THRESHOLD OF THE ICY WEATHER OF
WHICH THE WORK LOAD PICKS UP AND MAKES PARKING A PREMIUM, AND WE WOULD
BE TRYING TO WORK AROUND SUBCONTRACTORS TRYING TO DO THEIR WORK.
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MEANWHILE, WE HAVE INSTITUTED STRICT CODES FOR SAFETY WEAR AMONG OUR
EMPLOYEES AS A RESULT OF THESE DELAYS. WE REGRET THAT WE HAVE BEEN
NOT ABLE TO MOVE MORE RAPIDLY ON THIS PROJECT, HOWEVER, EACH ENTITY
INVOLVED HAS HAD THEIR OWN TIME COSTLY PROCEDURES.
DUE TO THE ABOVE STATED FACTS, WE WOULD LIKE TO PROPOSE A MAY 1, 1986
STARTING DATE ON CONSTRUCTION WHICH WOULD PUT US AT THE THRESHOLD OF
COOPERATIVE WEATHER AND PROPOSE A NEW CDMPLETION DATE OF SEPTEMBER 1,
1987. WE CERTAINLY DO NOT LIKE THIS SITUATION AT ALL BECAUSE WE COULD
USE THE ADDITIONAL PRODUCTION SPACE TO SERVE OUR GROWING CLIENTELE, BUT
IT SEEMS THAT WEATHER AND OTHER PROCEDURES ARE PUTTING US IN THIS
POSITION. WE WOULD LIKE TO COUNT ON YOUR CONTINUING COOPERATION IN
THIS MATTER, AND WE REMAIN READY TO COOPERATE. PLEASE ADVISE.
ENCLOSED FOR YOUR FILE ARE PHOTOCOPIES OF THE BUILDING PERMIT AND
BUILDING PERMIT RECEIPT FOR YOUR FILES.
RESPECTFULLY,
k~1
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DEAN CALDWELL- PRESIDENT
CC: MONTE C. MCKEEH~N, P.C.
SALTER, MCKEEHEN, & RABINE
59 E 11TH AVE STE A
EUGENE, OR 97401
CC: LORNE PLEGEF:
CITY OF SPRINGFIELD
DEPARTMENT OF PUBLIC WORKS
SPRINGFIELD, OREGON 97477
CC: R.K. SHORT & ASSOCIATES
BUSINESS CONSULTANTS
895 COUNTRY CLUB ROAD, STE A200
EUGENE, OREGON 97401
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