Summary & Update of November Meeting
For those of you who were unable to attend the meeting on Monday, November 11th, below is a recap of the announcements from the Board of Directors. After the general update by Sarah Overholt (acting President), the discussion was opened to Owners in attendance to brainstorm the Co-op’s next moves. The Board will use the information gathered during this workshop to develop potential options for the Ownership to vote on in December. A formal presentation outlining the status of our finances, insurance claim, and lease will be provided prior to the vote to allow adequate time for any questions.
Legal Representation:
We secured pro-bono legal counsel through two separate law firms. Hogan Lovells was first acquired to represent us in negotiations with our landlord. We secured additional legal counsel through Take Root Justice to help us navigate the insurance claim.
Landlord/Lease:
After thoroughly reviewing our lease, the lawyers determined we are not responsible for back rent. We only owe money for July 1st and 2nd (days preceding the fire).
Liability regarding damages is still unclear as there are conflicting articles in our lease and rider.
Our landlords had 90 days to inform us of their intentions/wishes. This period has lapsed without any word from them, and thus they are in breach of our contract.
In an effort to avoid as little provocation as possible, our lawyers sent our landlords a letter on Monday, November 4th, notifying them of our awareness of the 90-day clause. They also requested an invoice for the two days of rent owed. We are hoping to avoid litigation at all costs, but are now waiting for a formal response from our landlords.
Insurance:
Asset/Property Loss Claim: this first estimate has been submitted and we should be receiving a check of approximately $14K soon. We have also submitted a second claim, updating this amount, and are waiting to hear back on the status of this.
Business Loss Claim: this has been submitted but takes significantly longer to process (up to a year). Business Loss covers loss of income as well as the hours worked by staff members, but only up to 12 months after the incident (through July 2020).
Taxes:
We discovered that income tax was not filed for a number of years (federal, state, and city). This has become a top priority.
We are have hired help from a representative at Brooklyn Cooperative Credit Union (our bank) to help us file back-taxes. She has offered us a significant discount in filing any outstanding years as a bundled package.
At a recent MAFCA meeting, we met a tax expert. He is helping us navigate proceedings with the IRS.
Fundraising/Canvassing:
The Call-A-Thon held in October was largely successful and we raised just north of $6,000. We will be continuing this through November and December, and will need more help.
We have started canvassing Bushwick residents to gather data on shopping habits. We will also need help with this.
Please reach out to Ownership for more information.
Finally, tune in to the November update from our General Manager here: