16 Dec
2023
16 Dec
'23
12:05 p.m.
Best estimates I've seen for the value of the building are around $3-4M. We
originally bought the building for $2M ten years ago, and that was
considered a steal at the time.
Commercial real estate is a bit in the dumps right now, but I would be
surprised if the building would sell for less than $3M. We know that
multiple developers are interested, just so they can tear down the building
and build more apartment blocks like the ones across the street. Worst-case
scenario, Omni Commons might be left with "just" a million dollars...
Which also puts PP's proposal into perspective: they are offering to pay
$880K for a $3M building? Foreclosure and rehoming to a building that
better suits our needs may be a better option. Even better would be for US
to find a more suitable buyer who will keep the building in community use.
I don't know how back property taxes are handled when you sell a property,
but we already have a payment plan in place for the $200K, and once the
county assessor gets off his ass and processes our exemption paperwork, we
should no longer owe that $200K (and I assume we should get back most of
the property taxes we just paid in December).
Patrik
On Sat, Dec 16, 2023 at 11:13 AM Autonomous <autonomous666(a)gmail.com> wrote:
The starting bid at a foreclosure sale is the amount
due the lender, or
$895,000 in this case. If nobody bids then the lender takes title to the
building and there are no surplus funds. If someone were to place a bid
higher than $895,000 then any outstanding liens (such as property tax) are
deducted from the surplus funds. Since Omni owes more than $200,000 in back
property taxes and other liens then someone would have to bid more than
$1,095,000 before Omni Commons is entitled to collect any surplus funds.
On Fri, Dec 15, 2023 at 7:43 PM Taylor Alexander via sudo-discuss <
sudo-discuss(a)sudoroom.org> wrote:
Right! Yes thank you they are loans not
donations.
On Fri, Dec 15, 2023 at 4:41 PM Patrik D'haeseleer <patrikd(a)gmail.com>
wrote:
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What will
make the LLC strategy any different from our burnt out
operating body?
My understanding is the LLC is a legal entity to protect the donors who
would donate $900k to keep Omni in the current location. The LLC would be
given a guarantee that if Omni defaults on loan repayments, the LLC could
legally recover losses through the sale of the building. The LLC is not to
manage Omni Commons, which would be done by current leadership.
Quick correction: there are NO donations involved in the LLC plan. It's
just a way to bundle a bunch of personal loans. Essentially, the LLC would
take over the role of Mulberry Trust, and people paying into the LLC would
expect to be paid back over time.
Advantages of the LLC over Mulberry is that we can set the terms of the
loan right now (e.g. no massive balloon payment!). And at least we would
know a few of the folks in the LLC, even if some of the other lenders do
prefer to remain anonymous.
Patrik