Increased Restrictions:
Park Avenue Condominiums are subject to the building codes and planning regulations of Park City, UT. For two decades the modification to individual units (See Comparison of Originals vs Modified Units) were not scrutinized by local authorities. However, this has changed.
Atruim Issues:
As housing prices began rising in the 1990's local authorities become tougher with building code requirements pertaining to the remodeling of Park Avenue Condos. When some owners attempted to enclose their atriums, as over two dozen others had done in the last two decades, they were stopped. Two owners had to delay construction for months until they were able to obtain a temporary exception. Besides enclosing an atrium, just adding a loft bedroom was also becoming a problem because of egress issues.
The Park City Planning Department contends that the atriums were never properly plated and that all unit owners must approve a pertition that will allow proper legal use of the atrium by an owner. They have not addressed existing atriums, just the unused atriums. The inability to use this open and unused space in Park Avenue Condos may also be partly attributable to the slow sales activity in the complex, and possible price declines.
Still, Park Avenue Condominiums is situated in one of the best locations in Park City. The construction of the units, mostly with masonry, is better than similar and nearby complexes. Also, new remodeling designs have been developed which are acceptable to local building authorities that create a more desirable and useful unit. There still may be greater potential utilization of a vintage unit which will help support stable if not increasing values.
Two Tiers of Units:
However, there are several problems occuring. The differences between the vintage and newer units may be creating a two tiered market in the complex, both for rentals and sale. It is unclear how much stronger the rental demand is for the new remodeled units.
The company that manages the most rentals in the complex seems reluctant to raise rents significantly for fear of reducing occupany rates. And, they may be concerned with trying to promote the newer units over the vintage units for fear that the owners of the older units will feel compeled to spend more money on upgrading their units and object. Management also claims demand has weakend recently from the lack of early snow, Y2k conerns earlier in the year, and a larger pool of rental properties. Still, if the owners of remodeled units do not receive better rental compensation, it may discourage upgrades in the complex. Afterall, the owners spending more money on their units may be helping out the vintage units more by improving the image of the complex without while they receive similar rents.
A satisfactory arrangement also needs to be made where the upgraded units are properly exposed to obtain maximum rental. Possibly this exposure may include different markets (e.g. families or small groups rather than larger ski clubs). If the proper markets are not being reached for the upscale units in the complex, then the problem of increasing rents for upgraded units many not be as explained by the current rental company.