10 May
2024
10 May
'24
1:57 a.m.
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> 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> 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
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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> 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> wrote:
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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.
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