Tonight's mtg

[ga...@aol.com]

Adding some returned emails.

Sent from my iPhone

On May 11, 2017, at 10:50 PM, Ga...@aol.com <ga...@aol.com> wrote:

Thanks to all who came out! All who sent notes and all who called me and emailed me directly.

Sorry quick and brief points of our 2 hr meeting.

Wanted to just share that board member Ray Sloan was in attendance and in support of our community support to MLVS.  He invited us to attend the board meeting next Thursday at 6pm at MLVS.

A request was made to David Chiu's office to intervene in these negotiations.

Anyone interested in joining the board meeting please meet at Atlas cafe 20th and Alabama next Thursday at 5:30pm.

Lots of next steps but please join us next Thursday!

Tracy

Sent from my iPhone

On May 11, 2017, at 2:19 PM, Tony Fazio <tfa...@winningdirections.com> wrote:

Roberto

3. When did the Board of Director learn that the Executive Director that replaced Rosario Anaya was 

    not making the loan payment? About August of 2016 when I became a MLVS Board Member.

I made a mistake it was 2106 not 2015. Sorry for the confusion…………Tony

 

 

 

From: Tony Fazio [mailto:tfa...@winningdirections.com]
Sent: Thursday, May 11, 2017 1:11 PM
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Subject: RE: Here is a Question and Answer Sheet that we hope will clear up some of the questions people have about the history of MLVS and its Building

 

Here is what I know

 

 

Hola Ton

 

Appreciate your response to the community!

 

Rosario had contacted me 5 months before her passing and asked me to help her with the building lease agreement with HF.

 

I meet with her several times and I am very familar with the details.

 

I have several questions:

 

 

1. Did the Board of Directors have a outside Real Estate expert provide a asseesment of the property    

    value this year? Not this year but last year.

    If so what was the property value?

 

2. Did the Board of Directors have a Real Estate expert do an analysis on the propose settlement from 

    HF before going to court? No, HF, has a Lease that we have to abide by.

    If so what was the conclusion of the analysis?

 

3. When did the Board of Director learn that the Executive Director that replaced Rosario Anaya was 

    not making the loan payment? About August of 2015 when I became a MLVS Board Member.

    Who is the Teasurer of the Board of Directors? SF Assistant District Attorney Michael Menesini

    How often does the Board of Directors receive and review financial statements? I get financial statements

Daily and Board Members get monthly financial statements at our Board Meeting.      

 

4. When is the Board of Directors meeting to review & discuss the proposed settlement the Building    

    Committee discussed in court with the Judge? The Board meets regularly on the third Thursday of

every month. When the discussion about the proposed settlement starts, have to go into a closed

session that only Board Members are allowed to participate in, because of a court order not to speak about

its details.

 

We are preparing to have a community meeting where we can answer some of the questions that

we are not prohibited by the court from answering.

 

5. Since December 4, 2013 has HF applied to the city Agencies for the TIC? No

 

 

Gracias

Roberto

 

Roberto Y. Hernandez

415.206.0577   

 

 

 

 

 

 

MLVS Community Questions & Answers

 

 

1. Question: Is the current Board of Directors of the Mission Language and Vocational School selling part of the MLVS property to one of its tenants?

Answer: The current MLVS Board is not selling any part of MLVS’s building. That happened in 2013 when the previous Board, which included some current board members, agreed with then Executive Director, Rosario Anaya, to give our current tenant, Huckleberry Friends (HF) a lease that allowed the option now being exercised.

2. Question: Does HF’s current lease, signed Dec. 4, 2013, by Rosario and her Board Chair, Jose Chapa, give HF the right to apply to the City Agencies for a TIC (Tenants in Common), Condo Conversion, or a Lot Split?

Answer: Yes. Having interviewed several of the former Board Members who were on the Board at the time they all understood what signing that Lease Agreement and Option to Purchase contained and meant.

3. Question: Was MLVS in financial danger of closing back in 2013?

Answer: Yes, it most certainly was. Ask any of the Community Members Board Members or Staff, that were around at that time and they will tell you that MLVS was in danger of closing its doors because of failure to meet payroll and pay its bills.

4. Question: Did Rosario see signing an agreement with HF to lease with an option to purchase to rescue MLVS from its dire financial situation?

Answer: Yes, in the Summer of 2014 HF cosigned a refinance to help MLVS get rid of a predatory loan that was in place at MLVS with exorbitant interest rates that was costing MLVS a lot of money on a monthly basis . The new agreement with HF kept MLVS from filing for bankruptcy, which would have meant selling off the School as its main asset. At that time, the city was cutting back on grants to organizations like MLVS, further aggravating the financial crisis that Rosario and her board faced.

5. Question: Did the current Board fight to keep the portion of the property that the previous Board agreed to give up when they approved the signing of the December 4th ,2013 Lease?

Answer: Yes, the members of the current Board were faced with two lawsuits that it had to fight. One was because the Executive Director who followed Rosario when she passed away failed to keep making payments on the loan that she got after signing the 2013 Lease. That lease was guaranteed by HF. MLVS wound up owing over $300,000 dollars to HF who was continuing to make payments to avoid going into default all along. Otherwise the School would have gone into default and the Bank foreclosing on the building.

Second, HF took MLVS to court for a breach of contract for failing to support HF’s options as written in the contract, and that the School is bound by law to support.

6. Question: Did the Board of MLVS represented by the Building Committee have to go to Court to settle this dispute?

Answer: Yes, on April 24 of this year, MLVS, represented by its Building Committee went to court expecting to go to trial. Instead the Judge offered to mediate between the two parties. The Judge has put MLVS under a restraining order that prohibits us from talking about the details of a settlement with anyone but our Board Members.

7. Question: What can be shared with folks in the Community and what can happen if MLVS doesn’t abide by a settlement?

Answer: Through a settlement MLVS is getting back a substantial part of its building and will have sufficient funds to significantly pay down its loan on the property as was envisioned by Rosario, Jose and the Board when they entered into the 2013 Agreement.  The mission of MLVS to continue to provide its programs and serve the community is preserved in full.  If the lawsuit went to court and MLVS lost, the Court could have awarded significant damages to HF and MLVS would have been at risk of being placed into involuntary bankruptcy and the whole building being sold by the bankruptcy trustee, leaving MLVS with only the proceeds from the sale and likely without a School.

 

 

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Tony Fazio

Chair/Board of Directors 

Mission Language and

Vocational School