Hi Catherine and all
My understanding from the meeting was that Susan suggested to re-order the content of the BC rules and take out the 5% CG.
It is very kind of Stephen Edge to try and find a way so we can settle our construction loan. It would also look bad on his portfolio, if we can’t settle.
If we simplify our BC rules, have no covenant nor a CG clause and still have difficulties with getting mortgages, we can still fall back on Stephen Edges offer. But we have to make it as simple as possible to get mortgages for future buyers as well to attract young families now (A2 and C2 are for sale already).
I like to remind you of Donald’s comment at the meeting, that we are not only building a new cohousing neighbourhood, but that we are also a construction company that has to find a way to finish this project. You might not be able to really hear the concerns of the group.
I hope you can step back from your personal view on the 5%CG clause and focus on your position as a director of the construction company.
My belief is, that covenants and tight rules do Not secure the future of cohousing, it is people who do!
regards Rainer
Please call me if you need an urgent reply. Rainer Beneke +64 21 144 7700
rainer.ucol@gmail.com
On 23/12/2020, at 11:16 AM, Catherine Spencer via Ucol-shareholders ucol-shareholders@list.king.net.nz wrote:
Hi all,
I received a request for information from Stephen Edge yesterday, and it included the following:
The 5% capital gain contribution is just one piece of the jigsaw. At present because cohousing is different to the norm the bank (and seemingly all the banks) is just saying a blanket no. I haven’t researched the Earthsong loans yet but I suspect each one may have a different story attached.
What we may need is a simplification of the documents that preserves the cohousing ethos (and the 5% capital gain contribution) but is acceptable to the bank(s).
Cheers, Stephen
We may eventually need to remove the 5% CG in order to get enough banks on board to get everyone across the line, but according to our central banker we are not at that point yet.
Can we allow Stephen time to find a solution before we irrevocably change the documents? The process of drafting any possible changes can be worked in parallel, so we are ready, should that be the course of action we need to take, but let us firstly let Stephen’s process run.
Thanks, Catherine. _______________________________________________ Ucol-shareholders mailing list Ucol-shareholders@list.king.net.nz https://list.king.net.nz/listinfo/ucol-shareholders