Q- Why are you using my dues to pay for this building?
A- LOTSAR will not be using dues to finance this purchase. Because of the financial position the association is in after many years of planning and saving, the building will be purchased and renovated without obtaining a mortgage.
Q- Are you getting a mortgage? Will my dues go up to pay for this?
A- Dues will not increase. Your Board of Directors has been strategizing and working diligently to create non-dues revenue that will increase the level of service provided to the membership.
Q- Why don’t you use the money to reduce my dues?
A- The cash in the bank will not be used to reduce dues in the short term; however, the money will be used to create opportunities that will offset dues costs in years to come.
Q- Why are you competing with Cumbie & Trull? They are great and supporters of the association.
A- The association continues to have a positive relationship with Cumbie and Trull. However, we have found that we can provide more educational opportunities that add value to our members by operating our own school. Additionally, there is a demand for courses that Cumbie and Trull have been unable to supply.
Q-You can’t turn left. Won’t there be a traffic jam every time class lets out?
A- As various groups have toured 1 Restaurant Court, multiple cars have not experienced any difficulty turning left. If issues should arise, people could always turn right to access the interstate.
Q- What is going to happen with 37 Montford? Why don’t you sell that and reduce my dues?
A- The association will continue to own and operate 37 Montford Avenue as a non-dues revenue source. The conservative estimate of net rent per year is $100,000. These dollars will cycle back into the budget to help reduce costs for members in the future.
Q- Could you show us the money saved on renting space- annually?
A- By owning this building that can accomodate128 seated in a classroom and over 200 people for events, we will be able to save a substantial amount of money each year. We will be able to provide more events as well as educational and networking opportunities for the members with the savings. In 2019 the association would have saved $13,500 in space rental and over $16,000 on food and beverage within these event spaces.
Q- What are the total costs of the renovation, and what does that look like on a cost per foot versus the market?
A- The renovation budget, as presented, reflects 1.4 million dollars. This does factor in furnishings and all audiovisual/media equipment needed for an event and educational space. With proposed renovations and purchase price, we will be all in at an amount not to exceed $325 per square foot. Our agent has affirmed that this is a marketable price and does not account for the 1.59 acres of land.
Q- I hear Kirk Booth is part owner, isn’t that a conflict? Is he getting a commission, shouldn’t he do it for free since he is an influential member?
A- Mr. Booth is not a part-owner of this building, he has not served on the building committee tasked to identify a new space for the membership, and he does not currently serve on the board. Mr. Booth is working with John Spake to broker the deal for the sellers. The association is represented by Austin Walker with Whitney Commercial Real Estate.
Q- Will firms be able to rent the space?
A- Yes, it will be a member benefit to rent the space at a reduced rate.