Date: July 9, 2022
Every year I get to write a small update for the Vision Builders magazine. Enthusiasm for the project is really at its peak right now because we are ‘oh so close’ – but we’re not there yet. Since 2017 we have been working on a project development where we can build a community center with the proceeds from apartments. Now in July 2022 we have reached the stage that we have an approved preliminary design and we will have a meeting with the municipality of Amsterdam next week to submit a number of changes to the exterior for approval.
Construction prices had already risen sharply in the past 2 years, but with gas prices increasing due to the situation in Ukraine, construction prices have risen even further. Only last week we had to discuss with the potential builder how we can reduce the costs of building to an acceptable level. We are confronted with a cost increase of no less than 32%! Getting this price increase approved has been a huge effort by the team. We are working with the buyer of the apartments, the builder and ourselves to solve this gap together. We’re not there yet, but we’re heading in the right direction!
Even though project development is not our ‘cup of tea’, with the 5 years we have already been on the road, we have come to understand more and more what project development entails and where the risks of the project lie. It’s quite an adventure, actually every season brings new challenges. Whether it’s getting the design approved or using the exterior materials, finding the right building partner, getting figures or dealing with the rise in building prices, it remains tumultuous. At the same time, the longer we work on it, the smaller the risks become; contracts are concluded, parties step on board, and the municipality of Amsterdam is participating in the planning process. We continue to progress in the project and we are making good progress.
For the time being, the probability is that we will move out of our building in the 2nd quarter of next year. We have already visited a building that we can potentially move into on Paasheuvelweg. It is a beautiful building, but a lot of installation work will be required, we will see!
The project is constantly in motion and together with our team of advisors (project developers, architect and lawyer) we are working on a beautiful plan. Before August 1 we want to sign the realisation agreement with the municipality of Amsterdam. Then we are one step closer!
Keep the project in prayer – to be continued!
Buildings project manager
On behalf of the Board
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