Monday, September 22, 2008

Direction received from Members on August 23, 2008

At the August 23, 2008 extraordinary meeting of JCDC the Board received the following direction from the members:

From the options presented by the Board, pursue Option B to subdivide the property and sell a lot with concurrent efforts to seek funding to the building. Use funds from the sale to pay off mortgage and pay for demolishing the building.

At the meeting the Board presented 4 options for consideration by members along with benefits and negatives for each option.

First we presented some lessons we learned in the process of seeking development for the JCDC property:

  • The building is a definite disadvantage: The developers look at the building and see a expensive problem: one developer took a look and said $150,000 to remove – in his mind he saw lead paint, asbestos, and PCB’s
  • Sewer/water: 2 different developers estimated $300,000 - $500,000 to put in sewer and water for a development and site
  • Size of the property. Not large enough to attract developers.
  • We have had a quote to remove the building in the range of $30,000 but only if we can ensure the property is free of environmental contaminants first and that the Department of the Environment would approve placing the concrete along the water’s edge.

Option A: Sell the land and building as is.

According to appraisal we had done last year we could get $180,000 for property if the building was removed. Likely, considerably less with building on site.

To do this would we need to find funds for transfer to new land registry system ~$1,000 and survey ~$3,500.

Benefits:
  • Pay off mortgage $17,000
  • Pay fire department $1,800
  • Reimburse memberships (if members voted to do this) ~ $55,000
  • Might be some funds to support some other group

Negatives:
  • Community loses access to the water/wharf
  • Benefit to the community comes from removing a negative rather than adding a positive
  • No control over what happens to the property
  • No guarantee that the building will be removed
  • Once it is gone, it is gone, the last piece of waterfront between St. Peter’s and Big Pond


Option B: Subdivide the property and sell a lot

Subdivide out one lot from the property and sell it – maybe earning $60,000- $80,000. Use funds to pay off mortgage and pay to demolish the building.

To do this we would need to find funds to do a pert test, survey and subdivision $6,000, transfer to land registry system $1,000

May be able to raise funds for subdivision through prior commitment to purchase of land.

Benefits:
  • Pay off mortgage $17,000
  • Pay fire department $1,800
  • Community retains access to some of the land plus the wharf
  • Building will be removed
  • JCDC and community
  • May be some operational funds remaining

Negatives:
  • Property size is diminished


Option C: Develop property in conjunction with other properties

Either acquire more land or work with other landowners to create a condominium/townhouse development. With the other property used for the housing and the coop property used as shared access to the water.

Three developers mentioned that there is demand for condominiums/residences for summer residences for reverse snow-birds (people from hot southern American states). However, in order to make it attractive to developers there would need to be more land. One developer suggested working with the parish or local property owners.

Benefits:
  • Attract people to the community
  • Attract development to the community
  • Community could retain access to the land plus the wharf

  • Building will be removed
  • Funds to pay off the mortgage
  • Potential for ongoing income

Negatives:
  • Funds would need to be expended to explore this option fully
  • This project would need long lead time
  • Would require enormous time, energy and commitment from individuals from JCDC and other organizations to achieve this


Option D: Individuals contribute money to save the property for the community

Individuals who are committed to keeping this property for the community contribute funds to pay off the mortgage and remove the building. This would require approximately $60,000

Benefits:
  • Community could retain access to the land plus the wharf
  • Building will be removed
  • Funds to pay off the mortgage


Negatives:
  • Where would we find ongoing income to pay annual expenses
  • Member fatigue – feeling that there has been enough financial/human support and more without a full plan is not warranted