A better deal needed for Rancho Santa Fe Garden Club
If you are a member of the RSF Garden Club please read this:
The sale of the RSF Garden Club property to the RSF Association makes a lot of sense; however, the devil is in the details. Simply stated, the proposed terms are:
The Garden Club property will become an asset of the RSF Association with 100 percent of the sale proceeds deposited into the RSF Foundation as a permanent endowment in a “special Community Fund.”
Control of the disbursements from the fund will be with an Oversight Committee of five members: Two from the RSF Association, one from the RSF Foundation, and two from the Garden Club (with four votes to affirm). The purposed disbursements “will be strictly for the benefit of Covenant community.”
Now the details: The one asset (building and property) the Garden Club now owns is sold and the sale proceeds endowed to a Community Fund at the RSF Foundation. Is this what you want for the Garden Club?
Why not set up an endowment fund in the name of the RSF Garden Club and controlled by Garden Club members? Have a special committee to recommend the disbursements of the annual proceeds according to the Garden Club’s Articles of Incorporation: the specific purpose of this corporation is to further the development of charitable horticultural and conservation activities both within and outside of the community of Rancho Santa Fe.
Since when does the buyer tell the seller what to do with the sale proceeds? Has the RSF Association made this requirement in any other property purchases?
A Letter of Understand (LOU) between the RSF Association and the RSF Garden Club was signed 16 months ago. There have been changes on both boards of directors which approved this agreement. In fact, there has been a change in the real estate market (to the better) since the LOU was signed. That document needs to be revised and reconsidered. Right now, as proposed, the Garden Club sells its property and gives away its proceeds from the sale for others to distribute. Does anybody else see something wrong with this proposed plan?
This should not be a done deal until there is a better deal for the Garden Club.
Marion Dodson, member RSF Garden Club