What time is the meeting expected to begin? I would like to attend remotely. On Monday, December 18th, 2023 at 5:48 PM, Jake via sudo-discuss <sudo-discuss(a)sudoroom.org> wrote:

Since there was some desire in the Sudo meeting yesterday to have a solid counter-proposal to take to PP, I ran the following idea by Jesse, our lawyer. Note that this is NOT a proposal on behalf of CCL - I would still need to run this by CCL membership as well. This is just me trying to find a compromise that would alleviate some of the trust and fairness concerns that people have with the current PP proposal to take over complete ownership. It would also not alleviate any concerns regarding PP's competence to run a building and events space (since they have never done that before), or whether their politics are too close to CLP for comfort. I've also added this to the Building Proposals doc: People’s Programs emphasized collective ownership - would they be willing to co-own the building with the existing Omni Commons non-profit? E.g. a Tenants-In-Common arrangement with a 60-40 or 70-30 split for Omni vs PP, based either on how much each party brings to the table (the original $1M donation plus a decade of mortgage payments from Omni vs $890K from PP), or based on the current value of the building. Feedback from Jesse, our lawyer: (1) Two non-profits can co-own a commercial property as tenants in common. You would need to have an agreement regarding each party's rights and obligations. I've written residential TIC agreements and roughly similar items would have to be agreed upon in a commercial situations: -- who gets a right to use which portions of the space. Some portions can be exclusive use areas and others can be common areas. -- who pays what -- how decisions about the common areas are made -- what happens if one party fails to pay for their share -- what happens if one party wants to sell their share If Omni and PP want to go this direction I can get you a more precise list. (2) I don't think a 60 / 40 split is reasonable given the numbers. The split should be based on the current value of the property, not the amount Omni put in. If the building is worth $3 million and PP puts in $890,000, they should get a 29.66% share. This matters because a TIC owner has a right to sell their share. If PP gets a 40% share and a year later they want to sell their share, they will reap a significant windfall. (3) If Omni transfers a portion of the building. the portion transferred will be reassessed for property taxes - which may not make any difference if you get the welfare exemption. (4) Two or more parties can create a partnership or an LLC and own property through the partnership or the LLC. A lot of the same issues that relate to a TIC also apply to a partnership or an LLC. I'm not convinced there are advantages to co-owning the building in this fashion but it could be that advantages would become more evident if Omni and PP wanted to co-own the property. If both entities are non-profits, then Omni does NOT need to get fair market value for the portion it transfers. Regarding valuation, the parties can hire a commercial appraiser who will come up with a number. I hired an appraiser in a similar context earlier this year and I think it cost $3 - $4,000 -- and it took 2-3 weeks. I think the appraiser I hired did an excellent job in that situation. - jesse On Mon, Dec 18, 2023 at 5:48 PM Jake via sudo-discuss < sudo-discuss(a)sudoroom.org&gt; wrote: