As if the community can afford any more financial problems, we have been advised we don't actually own the school property we purchased years ago!
Was anyone paying attention to what was going on regarding financial and legal matters?
The mortgage is up for renewal next year and we don't really own it. The title still has a clause in favor of the School District. We can't sell it - do anything with it until the clause is removed.
Who was involved in the purchase of this property and what advice did they seek prior to the purchase? Was there expertise provided by anyone? Were the individuals who made the decision capable and did they have all the information required to make a decision on behalf of the community?
Was the property purchased knowing the clause existed? So telling when you look back at what we were told before the school purchase and the facts now that we almost own it. Note the red in the answer below. I think this property might have been purchased knowing it couldn't be sold because those who were gung ho to buy it planned on building a Taj Mafirehall complete with fire training centre. No shortage of empire builders here in Union Bay.
This was a red flag.
Plus the building has historic value that many landowners wish to preserve.
Doesn't make sense since the 2 Million dollar fire hall plans adding onto the building was preserving what?
Note the last question. Is the $20,000. referred to, the money we were told was income but was actually just a transfer? Is the rental shortfall an error or creative bookkeeping so the community wouldn't be upset about the 'money pit' which we almost own?
Excerpts From 2009 Landowners Update Re: School Property Purchase
Q. What is the cost of the old school and how will it be paid for?
A. Cost $700,000 through a five year mortgage at 5% per annum.A. Approximately $10,000 per year on the principal and $25,000 in interest at 5% per annum
A. We do not need a building that large. The building was purchased for future fire hall requirements as well as an investment.
A. The land was originally donated to the community and has a Crown Grant still in place, which means the property may not be sold with the Crown Grant on it. Plus the building has historic value that many landowners wish to preserve.
A. Renovation costs: $8,370. (full details were provided in the annual general report and are available on the website) Budgeting for this was provided under renewal and replacement in the fire rescue budget.
Q. What is the cost of the old school and how will it be paid for?
A. $700,000, through a five-year mortgage at 5%A. All of it is being utilized beneficially and effectively with lease income of approximately $20,000 per year.
