Dear Omni Commons Community,
I hope this message finds you well. In our recent delegate meeting, a
crucial decision was made that requires your immediate attention. The
upcoming delegate meeting on 12/21/23, scheduled from 7 pm to 9 pm, will be
opened to our larger community, welcoming members from various collectives
and Omni projects. This session is dedicated to discussing different
proposal options and determining our collective path forward.
As a critical reminder, our private lender has …
[View More]notified us that the
outstanding $876k must be repaid by the end of December 2023. Failure to
meet this balloon payment deadline will initiate a foreclosure process,
with a subsequent 90-day period before the property is sold to housing
developers.
Originally, our strategy aimed to generate revenue from events and
fundraising over consecutive months, enabling us to pursue a million-dollar
loan from self-help, with a 30-year return agreement. However, faced with a
boycott affecting our cash flow and struggling Omni operations, we must now
explore alternative options to prevent the property from entering the
speculative market.
One significant proposal on the table is the People's Program, where they
would assume operational responsibility as new owners, undertaking the debt
payment and already securing donors. Their commitment includes ensuring the
continuity of current projects and tenants at Omni.
Additionally, Sudo Room proposes the creation of an LLC to allocate funds
from individual community loans, with community members contributing $50k
each to the LLC, aimed at settling the Mulberry Trust debt.
Discussions have also emerged about approaching a land trust to potentially
become the landlord of Omni Commons.
We urge all community members to contribute their ideas and proposals to an
open Google doc, allowing us to collectively evaluate the pros and cons of
each option. In the absence of action, Omni Commons faces the risk of sale
post-foreclosure, necessitating a discussion on equity reallocation.
To facilitate an organized and productive discussion on 12/21, we will be
contracting a facilitator. Your input is vital, and we encourage everyone
to share thoughts on how we want to vote on this critical matter.
Please contribute your ideas to the Google doc before 12/21, ensuring we
have a comprehensive list to consider. Together, we can navigate this
challenge and determine the best course of action for the future of Omni
Commons.
https://docs.google.com/document/d/1wDzotx3D07brWXLkylRlSb9r_alI8fqaBFUDxki…
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I’m out of town for Christmas - who’s here this week?
I’m at the space at the very least on Monday and Tuesday -
More and more people are asking about having a meetup at the Omni commons - they’re often at company offices but would be willing to focus on open spruce as the women who code east bay day when we did the stable diffusion isntlalfest
Sent from my iPhone
Sorry for the short notice, Pi.BerkeleyLUG starts in 20 minutes at
Sudoroom. Please come out support Tom in this great initiative for Omni.
-Peter
tom r lopes <tomrlopes(a)gmail.com>: Dec 16 11:59AM -0800
Sorry for the late notice.
Tomorrow at SudoRoom 11am to 2pm.
Press the buzzer for access (white button in black case) or call or text me
at 5109842455.
My probably agenda will be to work on the pole of Chromebooks. Bypassing
the enterprise enrollment and installing Linux. Not sure …
[View More]what distro to use
as these are limited machines. 4gb ram but only 16gb storage. I've tried
Lubuntu but it fills storage real quick. Others have tried more minimal
distros (AntiX?) and they have trouble with hardware drivers.
Aaron, maybe you can take a look. Free Chromebook for you.
As always you are welcome to work on your own projects.
Thomas
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(sending to sudo because I don't think I am on other lists, please forward
as needed)
Just had a conversation about the current situation. It sounds like
People's Programs essentially want to completely take over legal and
administrative control of Omni Commons. I would be against this as it seems
it would spell the end of Omni Commons. I also want to put up front that
Omni's Lawyer has made clear we have more than 90 days to resolve this as
foreclosure cannot take less than 90 days.
But what …
[View More]I wanted to talk about was the assets of the Omni Commons
organization, specifically the building. Using very rough numbers, Omni
Commons owes $900k on a property worth roughly $3m (I am told).
It seems to me that would mean that Omni Commons has $2 million in assets
by way of the property. Even if the bank foreclosed on the property, the
value of those assets does not disappear! If the bank foreclosed on the
property and sold it, one would expect that after they take their $900k and
some fees, they would have to pay the balance back to Omni Commons. This
would leave the organization with no building BUT with $2 million dollars
in cash. That seems to me the worst case scenario we should accept! Worst
case Omni vacates the property and then looks for where to spend its $2
million for a new property.
So we have a few scenarios ahead. One option is to find a new single large
lender to give us a 5 year bridge loan to continue in this property, or to
do the same with an LLC and multiple smaller community lenders (low risk
bridge loans from a number of supportive community members).
Or we could let People's Programs spend $900k to acquire a $3 million
property, essentially giving away Omni's $2 million in assets?? That seems
like a terrible idea.
We absolutely should not give away $2m to any organization for any reason,
and any support we receive must be contingent on Omni Commons maintaining
legal and administrative control of our assets. It seems the best path
forward is to form an LLC and seek low risk bridge loans from community
members, with the backstop option of taking our $2 million somewhere else
and setting up a new location.
-Taylor Alexander aka Sequoia
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Sudo Room has been discussing the possibility of securing the $876k by
pursuing multiple lenders, rather than just one.
The idea proposed is below, but the proposal for the delegates is to ask
our lawyer to help us write up some sort of structure like this, to present
to potential lenders.
LLC idea
We create an LLC who's charter says it exists solely to buy this building
with the money of its lenders, and collect interest on that loan. We try
and get enough people to buy in, before Omni's …
[View More]foreclosure begins. Right
now, Jake says they knows of 5 people interested in putting up 5 digits
amounts, so in the $50k range. Proposed would be to have a minimum $10k
requirement to join LLC, with option for individuals to join together and
pool money to get a share.
If all goes well and Omni pays off the full loan + interest, those who are
part of the LLC will have received back the money they put towards paying
off the mortgage, along with interest (and then the LLC would dissolve?).
But if the borrower (Omni) fails to pay, then the LLC forecloses on the
property, and the LLC can then choose to liquidate the property to pay back
members or do something else with the building. If some but not all LLC
members decide to do something else other than liquidating, they have
ability to buy out other members.
One concern is our lawyer would say that it would be inappropriate for them
to create an org that would then lend to Omni (should have more
separation). Another idea proposed to get around this was to issue bonds
instead, since this would not require a separate entity, and we could work
with our current lawyer on setting that up.
Another concern is potential sabotage of the system, by getting overwhelmed
with lenders wanting and working to get Omni to foreclose, in order to get
control of the building. To work around that we might require anonymous
lenders to be vetted by known trusted lenders.
There is more discussion on this idea in sudo room's meeting notes:
https://sudoroom.org/wiki/Meeting_Notes_2023-12-13
Paige
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