Kia ora.

Agenda  - UCOL meeting

3 December 2020 7.30-9.30pm

at Numberworks, 90 Crawford St, Dunedin

and via Zoom - Meeting ID: 9016 25 9016   Password 25 25 25

https://otago.zoom.us/j/9016259016?pwd=ZGZQRnM2L2tsai90eENKRExQUEtJQT09

Chair and note-taker: Sander and Donald

Present:

Apologies: Jess & James, Gay

7.30 Appreciations:

7.35 Report back: Working Bees (Saturday and Tuesday) Rainer and others

7.40 Sale of A2 – see report copied below Min and others

8.10 Timeline update and review various

• Kitchen, mailbox, resource consent action, …

8.30 Home loans Maria, Sander

- status of BC rules

8.40 Appliances update Sara

8.50 Cohousing agreement (see also Roz’s email) Warren

Open Forum (if time)

Reports included: A2 Working Group

A2 Working Group - 28/11/2020 Meeting Report

Present: Cathering, Donald, Sander, Min

Kiwibank Requirements for A2 Sale Process - From Catherine's Conversation with Stephen Edge

That DCC purchase not be cancelled until we have a binding commitment from another buyer, and certainty that the buyer can complete the sale

Goal:  

Get commitment of unconditional sale from a purchaser for A2, with settlement date earlier than, or on the same day settlement is completed for all other units. 

DCC contract to be cancelled only when A2 sale to 3rd party is binding.

If sale fails, then Kiwibank wants DCC to complete the purchase.

Further requirements for Sale of A2 to Third Party

Deposit of at least 20% of sale price paid in advance, upon acceptance of agreement, to be held in trust by lawyer.

Note that 30% is the current LVR for major banks

Plan to achieve sale of A2 within required timeframe

Deadline Treaty / Deadline Sale seems to be the best option for the following reasons:

We can handle the selling process & receive offer documents ourselves, without requiring a lawyer to act as a go between, as in a tender

Clear deadline.  13th of January 2021 suggested, in order to complete sale before our 5th Feb 2021 UCOL settlement date.

Allows some negotiation after buyers submit their deadline offer, which tender does not.

Get ready all the documents prospective buyers will need to make an offer.  

Set up a Dropbox folder for this, with a link from UCOL website - Sander

Get a draft S&P agreement ready for buyers.  Catherine will go through the UCOL S&P, and extract all the schedules that will be relevant to sell A2 ready for the lawyer.

Approach UCOL lawyer, Simon Milne, with legal team member to draw up the draft S&P - Sander & Alex (Donald?)

Body Corp Rules, Child Protection Policy (Min), A2 Floor Plans, Agreement to Cohousing Covenant, List of Chattels (from Maria?)

3D Flythrough.  Photos of outside

Baileys & Nidds appraisals as an indication of price range. We should not need to state a price range beyond distributing these appraisals.

Offer conditions. Cover letter. "Tell us about yourself & your family", " What would you bring to the neighbourhood".  "What are your intentions for A2 should your application be successful".  

Offer cannot be withdrawn for 5 working days.

Inform the DCC of decision to sell A2 privately. Inform everyone on waiting list & people who have been to induction & expressed interest in purchasing A2

Catherine with inform DCC & discuss process for cancelling the DCC S&P

Can Anne inform others who have expressed interest in buying?

Everyone who wishes to put in an offer will get access to the documents in the Dropbox.

Dissolve waiting list and return $5000 - Anne?

Another Induction Day - Thursday, 10th December.  7pm - 9pm.  Centre for Sustainability

The working group recommends another induction day to be held for those who missed the last one. This will hopefully increase our pool of prospective buyers.  We should invite offers at the induction

Sander will book the Centre for Sustainability room if we agree to this

5. Wait for offers to come in and select one.
6. 5th Feb 2021.  A2 Settlement Date

Proposed plan for receiving Deadline offers & Selecting successful purchaser.

Aim: Make selection by "fit" first, without influence of offer price. Decision to be made by Saturday, 16th Jan 2021 at latest.

1. 13th Jan Offer Deadline.  

Catherine’s partner, Jeffrey, has kindly agreed to receive all the offers for us.  

Any offers below our agreed minimum sale price will be filtered out.  The cover letters of the remaining offers will be scanned and passed on to the group.

7. 14th Jan Thursday Meeting. 

The group will discuss and shortlist offers based on "best fit" only, without knowing the offer prices.  We will make use of the cover letters for this.  

The Group may make use of the STV to make the short list.

After the shortlist is agreed, the offer prices of only those short listed will be made known to the group. 

Any conditions attached to offers will be made known together with the price. We will make a final decision with this information.

We hope to reach consensus on selecting an offer by the end of the meeting

8. 16th Jan, Saturday supplementary meeting.

If more time is required to come to a decision, the Group will meet again on Saturday, 16th January. 

The Group may make use of the STV to help make a final decision.

9. Inform the successful buyer, and conduct any further negotiations required to finalise the sale.

Liaise with DCC to proceed with their S&P cancellation.

Things the Group Needs to Decide & Minute

1. Do we agree to sell A2 ourselves, instead of allowing the DCC to buy it?
2. What is the minimum sale price we will consider  for A2?

This minimum price is needed to filter out offers that are too low.

DCC price is $675,000 without GST (it is a GST neutral transaction). Therefore real cost is $776,000 incl. GST.

Suggested price range $730-$800 from Bayleys / Nidds.  Would we go as low as $700(GST inclusive) for the right family?

3. The original brief for the A2 working group was to come up with a proposal for selling A2.  We have completed the brief.  Does the group wish for us to continue with anything further?

Kitchen

Roz Wilson via king.net.nz 

3:17 PM (30 minutes ago)

to UCOL

Rainer has cced costs for f and p stove and extractor. We won’t be at the meeting tonight but, like rainer, think it would be good to progress this. With the usual shutdown soon we will be still discussing this in January.

 

Main thing I guess is to be clear if we can afford it. apart from contingency we do have the offer of loans of about $25,000 specifically for the kitchen if we get stuck. My ‘survey’ about the idea of loans had responses from only half the units.

 

Current price from SH $43k approx. plus installation plus delivery above their allowance

Rainer’s price about $6k (incl or excl of gst???) for domestic range and suitable extractor. Excluding installation etc

Maybe some variation if the range means changes to bench

A container of benches came in early November tho we have no idea what is left or when the next container will come

SH did ask a local supplier for prices to make the benches, local price was about $3k more than imports

Have asked SH to find out about difference in price for wooden benchtops for island and servery. Yet to hear

Have asked SH for price of domestic range, bench changes etc. Yet to hear.

The group seems keen to buy new, custom design if possible. Few options for second hand and would be wrong sizes etc.

NB SH still adamant we should avoid wooden benches at all costs. Reasons: wear (they won’t wear well if we turn from oven and dump pots on the top, they need oiling regularly, allergies and cultural food restrictions.

 

Recommendations:

We put this to a ‘vote’ and decide if we can move on.

Decide exactly what we want. How? SH plan/quote based on layout from a few years back. From dropbox.

If we can afford it we finalise the domestic cooker/bench sizes/benchtops. Then to BCG to order?

We would need to be able to be certain we could pay at least a deposit.