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.

losing control over managing the physical space of the building (e.g. having a property manager that makes rules)
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)
having a 3rd party take over the ballroom and event spaces
the political alignment / activities of a partner / owner / management entity
losing ownership of the building with no compensation (Omni currently owns approximately 55% of the appraised value of the building debt free)
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@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_alI8fqaBFUDxkiVkg0/edit?usp=sharing

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