15 Dec
2023
15 Dec
'23
4:11 p.m.
thank you Silver for bringing this to everyone's attention! I just want to
clarify a few things in Silver's email, and humbly suggest a "plan" for
this meeting. It would be more accurate to say "Omni decided it needs to
make a big decision" rather than "a decision was made" ... no major
decisions were made at last night's meeting.
For those of you who don't know me, I'm Sarah Lockhart, and I've been
Omni's bookkeeper and tax consultant for almost 3 years. Prior to being
paid by Omni, as a volunteer, I helped resolve the dispute regarding fiscal
sponsorship funds between Omni and The Village in 2020, and I have worked
with David Keenan at Safer DIY Spaces, (originally fiscally sponsored by
Omni, now its own 501(c)3 with paid staff) for the past 6 years. I also
work part-time for Pro Arts, which rents a small room in the basement of
Omni.
In terms of facts of the current situation:
- the foreclosure process generally results in an auction of the
property. So it won't necessarily "be sold to housing developers" ...
though that is a likely outcome.
- the "return agreement" would have been 20 years. 30 years is standard
for a residential mortgage (person buys a house and lives in it), but
commercial property (like Omni) has shorter loan terms. 20 years is the
longest for a conventional lender. Because the loan period would be
shorter, the loan payments would have been higher. Omni's current mortgage
is based on a 30 year term, but that was an act of generosity, rather than
what one would expect from a bank or other institution.
- Omni was not making consistently high enough revenue to meet the
criteria for the conventional loan payments prior to the boycott.
In terms of a suggested "plan" for the meeting, I would like Omni to
consider its priorities. Here is a list of things to consider and what
would you (any and all of you) be willing to accept, or what would be a
total dealbreaker.
1. losing control over managing the physical space of the building (e.g.
having a property manager that makes rules)
2. losing control over determining who can have space at Omni and what
the financial arrangements are for that space (e.g. having a property
manager that makes rules)
3. having a 3rd party take over the ballroom and event spaces
4. the political alignment / activities of a partner / owner /
management entity
5. losing ownership of the building with no compensation (Omni currently
owns approximately 55% of the appraised value of the building debt free)
6. losing the building but potentially getting paid to relocate from
sale proceeds
Feel free to email me with any questions regarding this or Omni's finances!
I love answering them (or trying to)!
Sarah L
On Fri, Dec 15, 2023 at 8:00 AM Z Silver Zahn <natashazahn27(a)gmail.com>
wrote:
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 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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