Event:2015/08/17 Until the Revolution Working Group

Until the Revolution! meeting August 17, 2015

Who's here?

yar: Apparently Jenny talked to him recently. Sending her an email now asking what they said.
laura: We just need to get a final agreement and then we can officially tell John.
yar: we should definitely talk to Jesse first. Delegates approved the lawyer liaisons last week. Forgot to add Laura but she's on the pad for this week. I informed him this morning but he hasn't replied yet.
laura: yes. do we need a realtor? can we get a pro-bono one?
troy: maybe at east bay community law clinic. also what about the land trusts?
laura: we should also just pick a land trust
yar: i was hoping jesse could help with that
laura: is jesse willing & able to deal with the stuff like signing & transferring titles, etc
yar: but he's on the board of a land trust so he probably knows how it works
laura: but maybe he can recommend someone cheaper. i know someone i can ask. he might suggest [redacted]
troy is confused about the numbers in our future budget
Yar: the delegates consented to buying the building but should really specifically consent to taking on debt also. we should propose this ASAP, but after getting a clearer final picture from the lender

recommend a land trust
when do we tell john?
do we need a realtor?
what do we need in the loan agreement? simple interest, no prepay penalty, etc
can 501c2s collect rent?
can ground lease lock in use of the building? how does that work? is there precedent or examples of that?
need his advice about reimbursement

lawyer said this on aug 5: "The part of the lease that provides for a partial reimbursement for some expenses is extremely limited and was the subject of a lot of complex negotiations. You will only have the right to seek reimbursement for very limited and highly unusual circumstances related to new government requirements that are NOT related to your special use of the premises. I would need to go over the list of items with you and see if any qualified, but I wouldn't be surprised if none of them did. For most construction items, the lease requires tenant to pay without any reimbursement from landlord. If you have any items that qualify, you would be entitled to a rent reduction, so you should raise the issues long enough prior to purchasing the building so you can claim the rent reduction."

reading "EXHIBIT TWO OF LEASE: OPTION TO PURCHASE AGREEMENT"
escrow is "up to 90 days"
laura: it can be quicker
yar: but it's in the owner's interest to delay because they still collect rent meanwhile
matt: we just be honest and say "we could fail in the meantime and walk away, it's this or nothing"
laura: this title issuance company has already issued a report of title. i see no reason why or how he could make it longer than it needs to be. could be two weeks.
yar: true, we're probably their last chance. if we fail they will not live to see anything good happen from this building. it's us or condos

they're waiting for the lender thing to fall into place
once that happens, we open an escrow and donor will deposit the initial 5k (as per lease) and then both the donor and the lender should deposit money into that account

matt still wants to reach out to more donors to match the 1M. they can deposit directly into the escrow
escrow account is still in our name so we can give back a 501c3 deposit receipt
matt's skeptical of small-scale fundraising, worried we've burned that part of our community being slow to deliver
talk of larger donations, for specific projects like elevator, solar panels, etc
daniel: we can just explain what happened with the first round of donations. we're not quitting, we're progressing. also need list of people to visit their homes and talk with them personally
laura: we had a list during the previous fundraising round, look up

Get reimbursed for building improvements from landlord, as described in Lease, ASAP!
Outreach for matching donors, other major donors for purchase.
- Reach-in to Omni Commons community, make list of contacts.
- Reach-out to folks a bit further outside of existing networks, but with whom we are still capable of building or maintaining trust.
Hold informational meeting kicking-off the opening of the Escrow account, and potentially discover more matching or major donors.
Establish a relationship with a community land trust, (waiting for Jesse's feedback), consider:
- Bay Area Community Land Trust
- Northern California Land Trust
- Consider other members of the Bay Area Consortium of Community Land Trusts