No updates were posted regarding the intervention of CAST in preventing foreclosure. The deadline to meet Mulberry Trust's terms was May 14, 2024. On May 17, 2024, Mulberry proceeded with the foreclosure process and filed a notice of default and substitution of trustee. It is unclear whether the plan is now to have CAST pay off the mortgage before the deadline or if another last-minute lender is in the works. The 90-day period has commenced.
From the recorder's records at Alameda County:

Instrument #:2024061925
Multi Seq:0
Date Filed:05/17/2024 08:54:05 AM
Document Type:NOTICE DEFAULT
Book:
Page:
# Pages in Image:2
Image:
Grantor Names
1OMNI COMMONS  

On Fri, May 10, 2024 at 5:34 AM Kent Leech via sudo-discuss <sudo-discuss@sudoroom.org> wrote:
w00t!

This is great news. Big Thank you's to all that made this happen.

:)

-Kent
-----

Kent Leech Illustration
+1 (510) 504-0634
--


From: William Myers via sudo-discuss <sudo-discuss@sudoroom.org>
Reply-To: William Myers <williamrmyers@gmail.com>
Date: Fri, May 10, 2024 at 1:57 AM
To: SudoRoom <sudo-discuss@sudoroom.org>
Subject: [sudo-discuss] Re: Update on Foreclosure

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@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@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 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@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@sudoroom.org> 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.

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