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Mortgage Payoff Won’t Help

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Just a note from the last President of the Board of Directors before Joshua Youngblood and an ONF owner.

I feel that most of the following information should have been sent to all members prior to now for their perusal and opinions so that they would have had advanced information about a possible payoff of so large a size using their money.

I have not seen anything publicized in reference to the paying off of the ONF (building — mortgage?) that seems to have slipped by most people.

That is: Once the total building, housing both ONF and the gym in the same building, is paid off, how does this help the co-op do more for the members?

As far as can be seen, it will be detrimental to both the ONF owners and the ONF store itself because first, it will cost an early payoff penalty of $300,000 (or more, probably, due to the current economic climate).

This will be in addition to the
$1.6 million mortgage payment.

Second, once paid off, there will still be the basement area, plus half of the street level, not available for expansion for more store items, storage areas, office space and a larger community meeting room, until the contract with the Powerhouse Fitness business is completed.

That could be another eight or nine years or so. Who set up this contract and why was it set up to be so detrimental to the co-op?

If the building is paid off and we have no access to half of it to create revenue or expand services, what’s the point?

“Spending millions of the members’ money in order to avoid” — or — “Giving millions of the members’ money to a bank in order to avoid” making a $15,000 a month payment on the current mortgage, so that the ONF store can continue to receive a small rent payment and no access to half of the building is rather confusing to me and others.

How does this help to lower the food and supplement prices etc. for the owner/shoppers, and protect the co-op from the possible competition, if indeed some move into our area?

 

Jim Roughton 

Fayetteville

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