Dear neighbours, it's time to wind up the UCOL company.
This email is about bringing the development to a finish and repaying the surplus funds to the shareholders as we previously agreed. Including money that is due to be paid to me as a shareholder, which I could do with sooner rather than later.
I and 8 others started the company in 2013 to buy the land, and develop a cohousing development on the land. That has now been done successfully, albeit it took a little longer than we initially planned. We signed the UCOL agreement on the 3rd of July 2018, and the task was complete once we received our code compliance certificate, which happened (IIRC) on 31st May, 2021.
The only task remaining for the company is to settle any outstanding bills and any unfinished work in relation to the construction of the units. The bulk of the outstanding work was minuted on the 3rd of June (https://minutes.king.net.nz/2021/ucol-minutes-2021-06-03/):
*Minute: This meeting asks the Directors to write to all purchasers to state that UCOL undertakes to finish the site works, which remain unfinished on settlement day, at the earliest opportunity and in any case within 6 months of settlement. Specifically, we agree to finish*
*
*The fences between units in the back yards and on the boundary between private and shared areas around the common green as shown on the plans.*
*
*Pergolas in the back yards of A and H units as shown on the plans.*
*
*The earthworks outside M3 as that was priced by Halls recently.*
*
*A pergola in similar construction and size as the A and H unit ones outside M1 and M3*
*
*The boundary fence between M3 and Montpellier Street.*
*
*The High Street steps outside C1/C2*
(I note we settled in June, so 6 months from settlement will be in December.)
The work on the houses and most of the common house were done by the contractor, which is why the bulk of the outstanding work was landscaping. The three items not mentioned in the minute were the commonhouse kitchen, bike shed and the heritage fence.
Of the outstanding work:
* The fences between units are complete. * The Pergolas for A and H units are complete. * The works and fencing outside the M units (Gay, Sara and Roz and Mike's units) are progressing slowly or stalled (we decided not to have pergolas there). * The C1/C2 steps have a temporary solution, and the final solution is stalled on the heritage fence work. * The commonhouse kitchen is progressing well and on track to be finished by November. * The Bike shed is progressing slowly * The heritage fence is stalled because of contractor delays.
There are costs to keeping the company running. We just paid a a $3000+GST bill for company insurance, for example. We pay $750 per month in accounting fees. Winding up the company will allow us to stop incurring these costs. But the main reason I want to do this is to bring this initial development phase to a timely close.
I propose we set November 30th as the last day for completion of remaining work. We can then settle final bills in December, and wind up the company by the end of the year.
Once the company is would up, the bulk of our profit of about $200,000 would be distributed as we agreed in sections 20 and 22 of the UCOL agreement. In short, it will be paid to shareholders pro-rata as interest payments on the loans to the company. We agreed repayment would be on the basis of lending to the company rather than shareholdings because loans by shareholders was the principal source of funding and risk aside from the development loan.
As we have talked about, this doesn't include any payments to outside lenders who lent us money but aren't shareholders. I'm happy personally if these external lenders are paid out interest on the same basis as shareholders. Which would require the agreement of everyone.
When I committed to this cohousing project in 2013, I invested all my assets in the project at no interest. I'm really happy with the resulting development which we are all enjoying. I'm happy that we agreed in 2018 that any surplus funds would be repaid to shareholders in recognition of the loans shareholders made. However I draw the line at continuing to fund further developments at Toiora out of that money. That money does not belong to Toiora.
It's time now to close the company and repay the shareholders.
Once the shareholders have been repaid, I'm sure the body corporate would welcome shareholders to re-donate those back to the development fund, if they choose to.
Thanks, Alex
Hi Alex, re your email which appears to come from you as an individual not from you as a Director of UCOL. Will you please clarify this for me. Sue Sent from my iPhone
On 18/09/2021, at 9:36 AM, Alex King via Members members@mail.toiora.nz wrote:
Dear neighbours, it's time to wind up the UCOL company.
This email is about bringing the development to a finish and repaying the surplus funds to the shareholders as we previously agreed. Including money that is due to be paid to me as a shareholder, which I could do with sooner rather than later. I and 8 others started the company in 2013 to buy the land, and develop a cohousing development on the land. That has now been done successfully, albeit it took a little longer than we initially planned. We signed the UCOL agreement on the 3rd of July 2018, and the task was complete once we received our code compliance certificate, which happened (IIRC) on 31st May, 2021.
The only task remaining for the company is to settle any outstanding bills and any unfinished work in relation to the construction of the units. The bulk of the outstanding work was minuted on the 3rd of June (https://minutes.king.net.nz/2021/ucol-minutes-2021-06-03/):
Minute: This meeting asks the Directors to write to all purchasers to state that UCOL undertakes to finish the site works, which remain unfinished on settlement day, at the earliest opportunity and in any case within 6 months of settlement. Specifically, we agree to finish
The fences between units in the back yards and on the boundary between private and shared areas around the common green as shown on the plans.
Pergolas in the back yards of A and H units as shown on the plans.
The earthworks outside M3 as that was priced by Halls recently.
A pergola in similar construction and size as the A and H unit ones outside M1 and M3
The boundary fence between M3 and Montpellier Street.
The High Street steps outside C1/C2
(I note we settled in June, so 6 months from settlement will be in December.)
The work on the houses and most of the common house were done by the contractor, which is why the bulk of the outstanding work was landscaping. The three items not mentioned in the minute were the commonhouse kitchen, bike shed and the heritage fence.
Of the outstanding work:
The fences between units are complete. The Pergolas for A and H units are complete. The works and fencing outside the M units (Gay, Sara and Roz and Mike's units) are progressing slowly or stalled (we decided not to have pergolas there). The C1/C2 steps have a temporary solution, and the final solution is stalled on the heritage fence work. The commonhouse kitchen is progressing well and on track to be finished by November. The Bike shed is progressing slowly The heritage fence is stalled because of contractor delays. There are costs to keeping the company running. We just paid a a $3000+GST bill for company insurance, for example. We pay $750 per month in accounting fees. Winding up the company will allow us to stop incurring these costs. But the main reason I want to do this is to bring this initial development phase to a timely close. I propose we set November 30th as the last day for completion of remaining work. We can then settle final bills in December, and wind up the company by the end of the year. Once the company is would up, the bulk of our profit of about $200,000 would be distributed as we agreed in sections 20 and 22 of the UCOL agreement. In short, it will be paid to shareholders pro-rata as interest payments on the loans to the company. We agreed repayment would be on the basis of lending to the company rather than shareholdings because loans by shareholders was the principal source of funding and risk aside from the development loan.
As we have talked about, this doesn't include any payments to outside lenders who lent us money but aren't shareholders. I'm happy personally if these external lenders are paid out interest on the same basis as shareholders. Which would require the agreement of everyone. When I committed to this cohousing project in 2013, I invested all my assets in the project at no interest. I'm really happy with the resulting development which we are all enjoying. I'm happy that we agreed in 2018 that any surplus funds would be repaid to shareholders in recognition of the loans shareholders made. However I draw the line at continuing to fund further developments at Toiora out of that money. That money does not belong to Toiora. It's time now to close the company and repay the shareholders.
Once the shareholders have been repaid, I'm sure the body corporate would welcome shareholders to re-donate those back to the development fund, if they choose to.
Thanks, Alex
members@mail.toiora.nz, a Gather Group Email List To unsubscribe, visit the Group page and leave or opt-out. https://gather.coop/groups/275
This will go on the agenda for a future Thursday meeting. As with all our decisions, this will be decided by the Group Decisionmaking process.
On Sat, 18 Sep 2021, 9:37 am Alex King via Ucol-shareholders, < ucol-shareholders@list.king.net.nz> wrote:
Dear neighbours, it's time to wind up the UCOL company.
This email is about bringing the development to a finish and repaying the surplus funds to the shareholders as we previously agreed. Including money that is due to be paid to me as a shareholder, which I could do with sooner rather than later.
I and 8 others started the company in 2013 to buy the land, and develop a cohousing development on the land. That has now been done successfully, albeit it took a little longer than we initially planned. We signed the UCOL agreement on the 3rd of July 2018, and the task was complete once we received our code compliance certificate, which happened (IIRC) on 31st May, 2021.
The only task remaining for the company is to settle any outstanding bills and any unfinished work in relation to the construction of the units. The bulk of the outstanding work was minuted on the 3rd of June ( https://minutes.king.net.nz/2021/ucol-minutes-2021-06-03/):
*Minute: This meeting asks the Directors to write to all purchasers to state that UCOL undertakes to finish the site works, which remain unfinished on settlement day, at the earliest opportunity and in any case within 6 months of settlement. Specifically, we agree to finish*
*The fences between units in the back yards and on the boundary between private and shared areas around the common green as shown on the plans.*
*Pergolas in the back yards of A and H units as shown on the plans.*
*The earthworks outside M3 as that was priced by Halls recently.*
*A pergola in similar construction and size as the A and H unit ones outside M1 and M3*
*The boundary fence between M3 and Montpellier Street.*
*The High Street steps outside C1/C2*
(I note we settled in June, so 6 months from settlement will be in December.)
The work on the houses and most of the common house were done by the contractor, which is why the bulk of the outstanding work was landscaping. The three items not mentioned in the minute were the commonhouse kitchen, bike shed and the heritage fence.
Of the outstanding work:
- The fences between units are complete.
- The Pergolas for A and H units are complete.
- The works and fencing outside the M units (Gay, Sara and Roz and
Mike's units) are progressing slowly or stalled (we decided not to have pergolas there).
- The C1/C2 steps have a temporary solution, and the final solution is
stalled on the heritage fence work.
- The commonhouse kitchen is progressing well and on track to be
finished by November.
- The Bike shed is progressing slowly
- The heritage fence is stalled because of contractor delays.
There are costs to keeping the company running. We just paid a a $3000+GST bill for company insurance, for example. We pay $750 per month in accounting fees. Winding up the company will allow us to stop incurring these costs. But the main reason I want to do this is to bring this initial development phase to a timely close.
I propose we set November 30th as the last day for completion of remaining work. We can then settle final bills in December, and wind up the company by the end of the year.
Once the company is would up, the bulk of our profit of about $200,000 would be distributed as we agreed in sections 20 and 22 of the UCOL agreement. In short, it will be paid to shareholders pro-rata as interest payments on the loans to the company. We agreed repayment would be on the basis of lending to the company rather than shareholdings because loans by shareholders was the principal source of funding and risk aside from the development loan.
As we have talked about, this doesn't include any payments to outside lenders who lent us money but aren't shareholders. I'm happy personally if these external lenders are paid out interest on the same basis as shareholders. Which would require the agreement of everyone.
When I committed to this cohousing project in 2013, I invested all my assets in the project at no interest. I'm really happy with the resulting development which we are all enjoying. I'm happy that we agreed in 2018 that any surplus funds would be repaid to shareholders in recognition of the loans shareholders made. However I draw the line at continuing to fund further developments at Toiora out of that money. That money does not belong to Toiora.
It's time now to close the company and repay the shareholders.
Once the shareholders have been repaid, I'm sure the body corporate would welcome shareholders to re-donate those back to the development fund, if they choose to.
Thanks, Alex
Ucol-shareholders mailing list Ucol-shareholders@list.king.net.nz https://list.king.net.nz/listinfo/ucol-shareholders
From an email on 18 July:
The BCG are of the opinion we will need to keep the company going until next March which is when the final retentions to S&W will happen, and probably a final bill from the project manager (Stefan). Thanks, Alex
Has the BCG changed its opinion?
My understanding was that whatever money remained in contingency at the end of the project was earmarked for "Stage 2", to do work in the common house which was removed from the final costings so that our purchase prices were reduced. The kitchen was part of that, but not only the kitchen. Refurbishing the toilets and reinstating the skylights is the sort of use I want to see our money put to - for the enhancement of our common property in a way that will bring longterm benefit to our common life. Until the Commons Development Fund is established (with a small percentage of any capital gain made when someone sells a unit) we will not have the money to do these things.
Deciding how we use the money that remains in contingency is a matter for the Group to decide through Group Decision Making process. Unilateral decision making is not the way we have done things, nor is it the way I want to see us operating in the future.
Anne
On Sat, 18 Sep 2021, 9:36 am Alex King via Members, members@mail.toiora.nz wrote:
Dear neighbours, it's time to wind up the UCOL company.
This email is about bringing the development to a finish and repaying the surplus funds to the shareholders as we previously agreed. Including money that is due to be paid to me as a shareholder, which I could do with sooner rather than later.
I and 8 others started the company in 2013 to buy the land, and develop a cohousing development on the land. That has now been done successfully, albeit it took a little longer than we initially planned. We signed the UCOL agreement on the 3rd of July 2018, and the task was complete once we received our code compliance certificate, which happened (IIRC) on 31st May, 2021.
The only task remaining for the company is to settle any outstanding bills and any unfinished work in relation to the construction of the units. The bulk of the outstanding work was minuted on the 3rd of June ( https://minutes.king.net.nz/2021/ucol-minutes-2021-06-03/):
*Minute: This meeting asks the Directors to write to all purchasers to state that UCOL undertakes to finish the site works, which remain unfinished on settlement day, at the earliest opportunity and in any case within 6 months of settlement. Specifically, we agree to finish*
*The fences between units in the back yards and on the boundary between private and shared areas around the common green as shown on the plans.*
*Pergolas in the back yards of A and H units as shown on the plans.*
*The earthworks outside M3 as that was priced by Halls recently.*
*A pergola in similar construction and size as the A and H unit ones outside M1 and M3*
*The boundary fence between M3 and Montpellier Street.*
*The High Street steps outside C1/C2*
(I note we settled in June, so 6 months from settlement will be in December.)
The work on the houses and most of the common house were done by the contractor, which is why the bulk of the outstanding work was landscaping. The three items not mentioned in the minute were the commonhouse kitchen, bike shed and the heritage fence.
Of the outstanding work:
- The fences between units are complete.
- The Pergolas for A and H units are complete.
- The works and fencing outside the M units (Gay, Sara and Roz and
Mike's units) are progressing slowly or stalled (we decided not to have pergolas there).
- The C1/C2 steps have a temporary solution, and the final solution is
stalled on the heritage fence work.
- The commonhouse kitchen is progressing well and on track to be
finished by November.
- The Bike shed is progressing slowly
- The heritage fence is stalled because of contractor delays.
There are costs to keeping the company running. We just paid a a $3000+GST bill for company insurance, for example. We pay $750 per month in accounting fees. Winding up the company will allow us to stop incurring these costs. But the main reason I want to do this is to bring this initial development phase to a timely close.
I propose we set November 30th as the last day for completion of remaining work. We can then settle final bills in December, and wind up the company by the end of the year.
Once the company is would up, the bulk of our profit of about $200,000 would be distributed as we agreed in sections 20 and 22 of the UCOL agreement. In short, it will be paid to shareholders pro-rata as interest payments on the loans to the company. We agreed repayment would be on the basis of lending to the company rather than shareholdings because loans by shareholders was the principal source of funding and risk aside from the development loan.
As we have talked about, this doesn't include any payments to outside lenders who lent us money but aren't shareholders. I'm happy personally if these external lenders are paid out interest on the same basis as shareholders. Which would require the agreement of everyone.
When I committed to this cohousing project in 2013, I invested all my assets in the project at no interest. I'm really happy with the resulting development which we are all enjoying. I'm happy that we agreed in 2018 that any surplus funds would be repaid to shareholders in recognition of the loans shareholders made. However I draw the line at continuing to fund further developments at Toiora out of that money. That money does not belong to Toiora.
It's time now to close the company and repay the shareholders.
Once the shareholders have been repaid, I'm sure the body corporate would welcome shareholders to re-donate those back to the development fund, if they choose to.
Thanks, Alex
members@mail.toiora.nz, a Gather Group Email List To unsubscribe, visit the Group page and leave or opt-out. https://gather.coop/groups/275
We already decided how to use surplus money when we signed up to the UCOL agreement. This was decided using an exhaustive use of the group decision-making process.
Unfortunately i can't cut and paste from the UCOL agreement as I don't have an editable copy. But here are some relevant extracts:
5.1.7: February - May 2020 - All units forming part of the Project to be completed and settled with unit purchasers.
5.2 The Parties shall each co-operate and use their best endeavours to ensure the Project is completed in accordance with the time frames specified, the Project information and this agreement.
22.2 Upon winding up of the Company, any profit or loss will divided up between the Shareholders pro rata according to the Contrubutions made...
The whole agreement talks about completing the project as soon as possible, the aim of which is to complete and sell the houses. This has been done. The project is complete, except for a few tidy-up things that are still in progress.
My proposal is to finish off those tidying up things and not let the company drag on and on. If we need to leave the company open until March to cover defects then so be it, although I'd prefer to find a way to close it sooner. The purpose of the company has been achieved.
We have made a small profit of around $200,000, our accountant can tell us exactly what it is after we've finished the tidy-up work we are obliged to to. A profit of $200,000 on a $13 million project is not huge. A profit is better than a loss. We are very fortunate.
The company can't now legally decide do further work and claim that work as company expenses. To legally claim expenses, we must be spending on something we will get revenue for.
We have already agreed that the profit will be paid back to shareholders as noted in our UCOL agreement.
If we all agree we wanted to do something different with the profit and we take legal steps to amend the UCOL agreement we could. However, I don't want to do that. I don't think it's the best use of the money.
I have contributed enough financially to the project already. I would like to receive the very small return on my loan as we already agreed a long time ago.
Once we have closed the company we can talk about how to fund future development we might want to do. This is the responsibility of the body corporate.
Thanks, Alex
On 19/09/21 10:53 am, Anne Thomson wrote:
From an email on 18 July:
The BCG are of the opinion we will need to keep the company going until next March which is when the final retentions to S&W will happen, and probably a final bill from the project manager (Stefan). Thanks, Alex
Has the BCG changed its opinion?
My understanding was that whatever money remained in contingency at the end of the project was earmarked for "Stage 2", to do work in the common house which was removed from the final costings so that our purchase prices were reduced. The kitchen was part of that, but not only the kitchen. Refurbishing the toilets and reinstating the skylights is the sort of use I want to see our money put to - for the enhancement of our common property in a way that will bring longterm benefit to our common life. Until the Commons Development Fund is established (with a small percentage of any capital gain made when someone sells a unit) we will not have the money to do these things.
Deciding how we use the money that remains in contingency is a matter for the Group to decide through Group Decision Making process. Unilateral decision making is not the way we have done things, nor is it the way I want to see us operating in the future.
Anne
On Sat, 18 Sep 2021, 9:36 am Alex King via Members, <members@mail.toiora.nz mailto:members@mail.toiora.nz> wrote:
Dear neighbours, it's time to wind up the UCOL company. This email is about bringing the development to a finish and repaying the surplus funds to the shareholders as we previously agreed. Including money that is due to be paid to me as a shareholder, which I could do with sooner rather than later. I and 8 others started the company in 2013 to buy the land, and develop a cohousing development on the land. That has now been done successfully, albeit it took a little longer than we initially planned. We signed the UCOL agreement on the 3rd of July 2018, and the task was complete once we received our code compliance certificate, which happened (IIRC) on 31st May, 2021. The only task remaining for the company is to settle any outstanding bills and any unfinished work in relation to the construction of the units. The bulk of the outstanding work was minuted on the 3rd of June (https://minutes.king.net.nz/2021/ucol-minutes-2021-06-03/ <https://minutes.king.net.nz/2021/ucol-minutes-2021-06-03/>): *Minute: This meeting asks the Directors to write to all purchasers to state that UCOL undertakes to finish the site works, which remain unfinished on settlement day, at the earliest opportunity and in any case within 6 months of settlement. Specifically, we agree to finish* * *The fences between units in the back yards and on the boundary between private and shared areas around the common green as shown on the plans.* * *Pergolas in the back yards of A and H units as shown on the plans.* * *The earthworks outside M3 as that was priced by Halls recently.* * *A pergola in similar construction and size as the A and H unit ones outside M1 and M3* * *The boundary fence between M3 and Montpellier Street.* * *The High Street steps outside C1/C2* (I note we settled in June, so 6 months from settlement will be in December.) The work on the houses and most of the common house were done by the contractor, which is why the bulk of the outstanding work was landscaping. The three items not mentioned in the minute were the commonhouse kitchen, bike shed and the heritage fence. Of the outstanding work: * The fences between units are complete. * The Pergolas for A and H units are complete. * The works and fencing outside the M units (Gay, Sara and Roz and Mike's units) are progressing slowly or stalled (we decided not to have pergolas there). * The C1/C2 steps have a temporary solution, and the final solution is stalled on the heritage fence work. * The commonhouse kitchen is progressing well and on track to be finished by November. * The Bike shed is progressing slowly * The heritage fence is stalled because of contractor delays. There are costs to keeping the company running. We just paid a a $3000+GST bill for company insurance, for example. We pay $750 per month in accounting fees. Winding up the company will allow us to stop incurring these costs. But the main reason I want to do this is to bring this initial development phase to a timely close. I propose we set November 30th as the last day for completion of remaining work. We can then settle final bills in December, and wind up the company by the end of the year. Once the company is would up, the bulk of our profit of about $200,000 would be distributed as we agreed in sections 20 and 22 of the UCOL agreement. In short, it will be paid to shareholders pro-rata as interest payments on the loans to the company. We agreed repayment would be on the basis of lending to the company rather than shareholdings because loans by shareholders was the principal source of funding and risk aside from the development loan. As we have talked about, this doesn't include any payments to outside lenders who lent us money but aren't shareholders. I'm happy personally if these external lenders are paid out interest on the same basis as shareholders. Which would require the agreement of everyone. When I committed to this cohousing project in 2013, I invested all my assets in the project at no interest. I'm really happy with the resulting development which we are all enjoying. I'm happy that we agreed in 2018 that any surplus funds would be repaid to shareholders in recognition of the loans shareholders made. However I draw the line at continuing to fund further developments at Toiora out of that money. That money does not belong to Toiora. It's time now to close the company and repay the shareholders. Once the shareholders have been repaid, I'm sure the body corporate would welcome shareholders to re-donate those back to the development fund, if they choose to. Thanks, Alex _______________________________________________ members@mail.toiora.nz <mailto:members@mail.toiora.nz>, a Gather Group Email List To unsubscribe, visit the Group page and leave or opt-out. https://gather.coop/groups/275 <https://gather.coop/groups/275>
The BCG has been advised by Nicola to keep the company until March 2022, which is when we need to return final retention to builders and file the (las) annual return. The BCG has not reviewed or discussed any other ideas at this stage so we are assuming that we are following Nicola's advice.
Maria
Kind Regards,
*Maria Callau* 0211847490
*SUR *Architecture Limited www.sur-architecture.com
On Sun, Sep 19, 2021 at 10:53 AM Anne Thomson e.anne.thomson@gmail.com wrote:
From an email on 18 July:
The BCG are of the opinion we will need to keep the company going until next March which is when the final retentions to S&W will happen, and probably a final bill from the project manager (Stefan). Thanks, Alex
Has the BCG changed its opinion?
My understanding was that whatever money remained in contingency at the end of the project was earmarked for "Stage 2", to do work in the common house which was removed from the final costings so that our purchase prices were reduced. The kitchen was part of that, but not only the kitchen. Refurbishing the toilets and reinstating the skylights is the sort of use I want to see our money put to - for the enhancement of our common property in a way that will bring longterm benefit to our common life. Until the Commons Development Fund is established (with a small percentage of any capital gain made when someone sells a unit) we will not have the money to do these things.
Deciding how we use the money that remains in contingency is a matter for the Group to decide through Group Decision Making process. Unilateral decision making is not the way we have done things, nor is it the way I want to see us operating in the future.
Anne
On Sat, 18 Sep 2021, 9:36 am Alex King via Members, < members@mail.toiora.nz> wrote:
Dear neighbours, it's time to wind up the UCOL company.
This email is about bringing the development to a finish and repaying the surplus funds to the shareholders as we previously agreed. Including money that is due to be paid to me as a shareholder, which I could do with sooner rather than later.
I and 8 others started the company in 2013 to buy the land, and develop a cohousing development on the land. That has now been done successfully, albeit it took a little longer than we initially planned. We signed the UCOL agreement on the 3rd of July 2018, and the task was complete once we received our code compliance certificate, which happened (IIRC) on 31st May, 2021.
The only task remaining for the company is to settle any outstanding bills and any unfinished work in relation to the construction of the units. The bulk of the outstanding work was minuted on the 3rd of June ( https://minutes.king.net.nz/2021/ucol-minutes-2021-06-03/):
*Minute: This meeting asks the Directors to write to all purchasers to state that UCOL undertakes to finish the site works, which remain unfinished on settlement day, at the earliest opportunity and in any case within 6 months of settlement. Specifically, we agree to finish*
*The fences between units in the back yards and on the boundary between private and shared areas around the common green as shown on the plans.*
*Pergolas in the back yards of A and H units as shown on the plans.*
*The earthworks outside M3 as that was priced by Halls recently.*
*A pergola in similar construction and size as the A and H unit ones outside M1 and M3*
*The boundary fence between M3 and Montpellier Street.*
*The High Street steps outside C1/C2*
(I note we settled in June, so 6 months from settlement will be in December.)
The work on the houses and most of the common house were done by the contractor, which is why the bulk of the outstanding work was landscaping. The three items not mentioned in the minute were the commonhouse kitchen, bike shed and the heritage fence.
Of the outstanding work:
- The fences between units are complete.
- The Pergolas for A and H units are complete.
- The works and fencing outside the M units (Gay, Sara and Roz and
Mike's units) are progressing slowly or stalled (we decided not to have pergolas there).
- The C1/C2 steps have a temporary solution, and the final solution
is stalled on the heritage fence work.
- The commonhouse kitchen is progressing well and on track to be
finished by November.
- The Bike shed is progressing slowly
- The heritage fence is stalled because of contractor delays.
There are costs to keeping the company running. We just paid a a $3000+GST bill for company insurance, for example. We pay $750 per month in accounting fees. Winding up the company will allow us to stop incurring these costs. But the main reason I want to do this is to bring this initial development phase to a timely close.
I propose we set November 30th as the last day for completion of remaining work. We can then settle final bills in December, and wind up the company by the end of the year.
Once the company is would up, the bulk of our profit of about $200,000 would be distributed as we agreed in sections 20 and 22 of the UCOL agreement. In short, it will be paid to shareholders pro-rata as interest payments on the loans to the company. We agreed repayment would be on the basis of lending to the company rather than shareholdings because loans by shareholders was the principal source of funding and risk aside from the development loan.
As we have talked about, this doesn't include any payments to outside lenders who lent us money but aren't shareholders. I'm happy personally if these external lenders are paid out interest on the same basis as shareholders. Which would require the agreement of everyone.
When I committed to this cohousing project in 2013, I invested all my assets in the project at no interest. I'm really happy with the resulting development which we are all enjoying. I'm happy that we agreed in 2018 that any surplus funds would be repaid to shareholders in recognition of the loans shareholders made. However I draw the line at continuing to fund further developments at Toiora out of that money. That money does not belong to Toiora.
It's time now to close the company and repay the shareholders.
Once the shareholders have been repaid, I'm sure the body corporate would welcome shareholders to re-donate those back to the development fund, if they choose to.
Thanks, Alex
members@mail.toiora.nz, a Gather Group Email List To unsubscribe, visit the Group page and leave or opt-out. https://gather.coop/groups/275
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Alex King -
Anne Thomson -
High Street Cohousing -
Maria Callau -
Susan Taylor