[sudo-discuss] Re: Update on Foreclosure

Hello Everyone. Another update is that we are engaging with Philip from City In Motion as another option in addition to the grant that CAST is seeking. *Summary of Proposal* 1. City In Motion is raising funds to cover the foreclosure 2. In exchange for settling the foreclosure including all costs, City In Motion will form a new entity for operation and stewardship of the building and paying all debts associated (property taxes primarily, as well as operating costs ongoing) 3. This entity will hold the equity of the building until it can be transferred to CAST to continue the original plan of establishing a self sustaining community space. Please send me any questions or concerns so I can share them with Phil as soon as possible. - William On Fri, Jul 12, 2024 at 8:59 PM William Myers &lt;williamrmyers(a)gmail.com&gt; wrote: > Hi Everyone! > > I wanted to send out a Quick Update as we move closer to the deadline. > > 1. The CAST was not able to secure the bank loan, but the silver lining > is the bank thinks they would be a good option to refinance, which gives us > ammunition to showcase our financial viability to other donors. > > 2. CAST has held a meeting with an org who has grant money on hand to > help us which looks promising, but they have not been able to say yes yet, > as they are waiting for some confirmation on their side, and we will have > to wait until next week to hear a decision. > > 3. CAST will be holding weekly meetings open to the community every > Tues at 6p PST, so feel free to drop by the basement or join remotely. > > 4. We still have a great option for funding with individual > contributions through a FDIC insured account, which allows for individual > contributors of any size to donate for 5 years at a 1% return. And this > money will be loaned to us in order to buy the building still under the > CAST ownership and management. This money will be used alongside any funds > that CAST is able to procure. > > - We can directly call this Funder to assist with transparency for > any funder, I have the information on how to reach out, PLEASE reach out to > any person(s) who are interested in helping out in this way. We also may > want to run a funding drive with this option, and reach out to any one in > your network who would be interested. I did not share the contact here, but > it may be possible to share all contact info through the list, but for now > please reach out to me or any board member for more details. > - This option of course has the ability to be totally anonymous. > > > 5. We will also be entertaining additional proposals, Philip Bell has > submitted a proposal that ideally will be very similar to the CAST > proposal, and would be an alternative to CAST, giving ownership and > building management to CityInMotion, the funding for this is not secured > yet, and the details are forthcoming. > > If you have any questions, or a desire to reach out to funders who need > more details, please reach out and I can provide details and resources for > making that happen. > > William > > On Fri, May 10, 2024 at 2:02 AM Jake Watters &lt;typeinthenumber(a)gmail.com&gt; > wrote: > >> Thanks for the update. I was concerned before but I have learned more >> about this and I am not worried about it. >> >> I think this is great news. Thank you for doing this work. >> >> -Jake >> >> On Fri, May 10, 2024, 01:58 William Myers via sudo-discuss < >> sudo-discuss(a)sudoroom.org&gt; wrote: >> >>> Tomorrow we plan to sign the Letter of Intent to allow CAST to buy >>> the building from us, and take over as our creditor (possibly as early as >>> noon), and we are currently sending it to Jessie Palmer to get some legal >>> eyes on the document. It won't be fully legally binding, either party can >>> back out for the next week. There won't be any other parties involved in >>> the purchase, if we want to bring anyone else in, this can be done at a >>> later date, after the final agreement has been signed and CAST begins the >>> fundraising stage. >>> >>> We are agreeing to sell the building and allow them to set the rent, >>> policy, and have veto power on what organisations can be in the building. >>> We are putting a lot of trust in them, but I have faith that they genuinely >>> want to see us succeed, and eventually become owners of the building once >>> again. I think we are lucky to have anyone who is willing to help with our >>> financial issues on this short timescale. >>> >>> Let me know if you have any questions. >>> >>> Best >>> William >>> >>> On Thu, May 9, 2024 at 10:51 AM Autonomous via sudo-discuss < >>> sudo-discuss(a)sudoroom.org&gt; wrote: >>> >>>> I have a few questions, but overall Mulberry's proposal and CAST >>>> assistance with funding sounds like a very positive development. However, >>>> there is very little time to act. As I understand from reading the >>>> proposal, Omni must submit to Mulberry a $10,000 deposit along with an Omni >>>> board resolution memorializing the agreement with the entity that will pay >>>> off the loan, and this must be done no later than 12:00 noon on Tuesday, >>>> May 14th. No deadline was set for the actual payment of the loan. >>>> >>>> My questions are: >>>> >>>> Has Omni's attorney, Jesse D. Palmer, been informed of this proposal? >>>> >>>> Previously, when the various options for purchasing the building >>>> were being explored (i.e., the "switcheroo"), Mr. Palmer recommended that >>>> an LLC be formed to hold title to the building. The LLC could have one or >>>> more nonprofit shareholders. Would an LLC with nonprofit shareholders >>>> satisfy the CAST requirement? >>>> >>>> >>>> On Wed, May 8, 2024 at 8:26 PM Paige P via sudo-discuss < >>>> sudo-discuss(a)sudoroom.org&gt; wrote: >>>> >>>>> Mulberry wrote "Company X" because we've communicated there are >>>>> multiple interested parties - its just a stand in for whoever Omni choses >>>>> to take on the loan. Mulberry sent this email to the Omni delegates + me, >>>>> CAST, People's Programs, and City in Motion. >>>>> >>>>> My understanding is if CAST works with us, they would create a new >>>>> company(corporation?) "newco" that would hold the title of the building. At >>>>> least previously, they said there could be another partner in this newco, >>>>> i.e. Peoples Programs or City in Motion. The pro to going that route is >>>>> more security in paying of Mulberry in time/more money to fund things so we >>>>> dont have as big of a rent burden. Im not sure if that is still the case >>>>> from a recent email but I'm asking for clarification >>>>> >>>>> This is from a past draft letter from CAST to Mulberry. >>>>> >>>>> We ask for 120 days to close as we work to secure agreements on the >>>>>> following items. >>>>>> • Bylaws and membership for a new, nonprofit corporation to hold >>>>>> title. >>>>>> *◦ The possible inclusion of a new, Collective-linked partner in >>>>>> the newco* >>>>> >>>>> >>>>> >>>>> CAST was not wanting correspondences to be public so I am not >>>>> sharing full email here. >>>>> >>>>> Paige >>>>> >>>>> On Wed, May 8, 2024 at 4:13 PM Jake Watters via sudo-discuss < >>>>> sudo-discuss(a)sudoroom.org&gt; wrote: >>>>> >>>>>> Thank you for the update, this is a lot of important information! >>>>>> >>>>>> What is company X? What are they offering or asking for? I don't >>>>>> understand #1 and #2 and I would like to see the agreement they want us to >>>>>> sign, or at least a summary ASAP. >>>>>> >>>>>> Can you recap what you wrote so it's a little clearer? I really >>>>>> don't understand our options. >>>>>> >>>>>> -jake >>>>>> >>>>>> >>>>>> On Wed, May 8, 2024, 16:03 William Myers via sudo-discuss < >>>>>> sudo-discuss(a)sudoroom.org&gt; wrote: >>>>>> >>>>>>> Hello SUDO Community, >>>>>>> >>>>>>> I have an update on the foreclosure, I have attached a letter >>>>>>> from CAST, which also summarizes all of the updates. Basically Mulberry has >>>>>>> told us: >>>>>>> >>>>>>> 1. X organization intends to pay off Mulberry Trusts’s loan >>>>>>> to Omni Commons of approximately $873,973.00 >>>>>>> 2. Here is a $10,000 non-refundable deposit to show we are >>>>>>> serious. >>>>>>> 3. Attach a copy of Omni's Board Resolution noting the >>>>>>> agreement between Omni and the organization paying off the loan. >>>>>>> 4. If we do not hear from you by Tuesday, May 14th at 12pm, >>>>>>> we will direct the foreclosure trustee to file the paperwork. >>>>>>> >>>>>>> CAST appears to be willing to work with us even if the >>>>>>> foreclosure is filed. But we also have the option to comply with Mulberry's >>>>>>> requirements and fundraise to purchase the building with funding from >>>>>>> another source within the 1 week timeframe. We will likely be entertaining >>>>>>> proposals from Peoples Programs and City In Motion at tomorrow's board >>>>>>> meeting. >>>>>>> >>>>>>> Please let me know if you have any questions, or ideas or >>>>>>> insights. >>>>>>> >>>>>>> Best >>>>>>> William >>>>>>> >>>>>>> >>>>>>> >>>>>>>> I’m sorry for the delay on this. It turns out that the LOI >>>>>>> should be submitted by CAST to Omni Commons. We will turn around and submit >>>>>>> this for consideration by Omi Commons. >>>>>>> >>>>>>> >>>>>>> I wanted to highlight a few things: >>>>>>> >>>>>>> >>>>>>> >>>>>>> - >>>>>>> >>>>>>> I believe we have till Sunday evening or early Monday morning >>>>>>> to share a signed LOI for purchase to the Trust. This is to be accompanied >>>>>>> by a $10,000 check. We then have 24 additional hours to submit the full >>>>>>> payment to the Trust at which time the title is released to Omni Commons. >>>>>>> >>>>>>> >>>>>>> >>>>>>> - >>>>>>> >>>>>>> If this timing cannot be met, the foreclosure action will be >>>>>>> undertaken and there is 90 days to pay down the loan. The clock would >>>>>>> essentially start on Tuesday the 14th. >>>>>>> >>>>>>> >>>>>>> >>>>>>> CAST has the ability to pay $10,000 for the deposit but not the >>>>>>> balance within 24 hours after that. Given this reality, we will let the >>>>>>> Trust know of our plans to pursue an LOI with Omni Commons and the need for >>>>>>> additional time to secure the balance of funds. This assumes that they >>>>>>> advance to foreclose. >>>>>>> >>>>>>> >>>>>>> - CAST would like to sign an LOI with Omni Commons as >>>>>>> quickly as possible so we can pursue funding to meet the 90 day foreclosure >>>>>>> window. We will not negotiate to assemble a partnership for purchase. >>>>>>> >>>>>>> >>>>>>> We encourage Omni Commons to explore all options. >>>>>>> >>>>>>> >>>>>>> - >>>>>>> >>>>>>> People’s Program and City In Motion have both expressed >>>>>>> interest and have reached out to CAST. I will respond to both and encourage >>>>>>> them to speak with Omni Commons directly. >>>>>>> >>>>>>> - >>>>>>> >>>>>>> We recommend that you determine, separate from CAST, if >>>>>>> their offers are viable and you wish to sell the building to either of >>>>>>> them. We don’t want to hold you up if you are able and prefer to resolve >>>>>>> the matter immediately. >>>>>>> >>>>>>> >>>>>>> >>>>>>> _______________________________________________ >>>>>>> sudo-discuss mailing list -- sudo-discuss(a)sudoroom.org >>>>>>> To unsubscribe send an email to sudo-discuss-leave(a)sudoroom.org >>>>>>> More options at >>>>>>> https://sudoroom.org/lists/postorius/lists/sudo-discuss.sudoroom.org/ >>>>>>> >>>>>> _______________________________________________ >>>>>> sudo-discuss mailing list -- sudo-discuss(a)sudoroom.org >>>>>> To unsubscribe send an email to sudo-discuss-leave(a)sudoroom.org >>>>>> More options at >>>>>> https://sudoroom.org/lists/postorius/lists/sudo-discuss.sudoroom.org/ >>>>>> >>>>> _______________________________________________ >>>>> sudo-discuss mailing list -- sudo-discuss(a)sudoroom.org >>>>> To unsubscribe send an email to sudo-discuss-leave(a)sudoroom.org >>>>> More options at >>>>> https://sudoroom.org/lists/postorius/lists/sudo-discuss.sudoroom.org/ >>>>> >>>> _______________________________________________ >>>> sudo-discuss mailing list -- sudo-discuss(a)sudoroom.org >>>> To unsubscribe send an email to sudo-discuss-leave(a)sudoroom.org >>>> More options at >>>> https://sudoroom.org/lists/postorius/lists/sudo-discuss.sudoroom.org/ >>>> >>> _______________________________________________ >>> sudo-discuss mailing list -- sudo-discuss(a)sudoroom.org >>> To unsubscribe send an email to sudo-discuss-leave(a)sudoroom.org >>> More options at >>> https://sudoroom.org/lists/postorius/lists/sudo-discuss.sudoroom.org/ >>> >> _______________________________________________