AN OPEN LETTER TO ALLEN MELLENThe foregoing was delivered to me Monday evening, March 21. It's about a mortgage refinance that the coop has applied for. The writers appear to think that the board will be voting on the refinance at tonight's meeting, but that is not correct. They also appear to think that because I have described myself as a swing voter on some issues that I am a swing voter on this one. That also is not correct.
A most important Board of Directors vote is scheduled for March 22 one which will affect Morningside Gardens for the next 10, 20 or 30 years. WE URGE YOU TO ABSTAIN ON THIS VOTE. That decision should not be the responsibility of one man; it should be made by the entire body of shareholders.
We know that you have served our coop over many years in many capacities, and now we ask you to serve once again in this most urgent way. ABSTAIN! You've made courageous choices in the past. You can make this one too.
ABSTAIN. Use your one man vote, like everybody else, to vote for new Board Members who will help guide us into our financial future, which is by definition both unknown and unknowable.
Thank you for your past service and for your honorable decision now.
Sincerely,
[eight signatures of persons most of whom I know]
It happens that the three directors who some stockholders tried to remove are against this loan, as are two others on the board. But my reversal on the matter of sanctions and my opposition to their removal from the board was not because I think they are right and certainly not because I think they are right on the subject of the loan.
There's no doubt that the terms of the loan we expect to be offered are not those we would like, but I am convinced that they are the best we can get.
I'm posting this now, before the board meeting, and I may update it later.
2 comments:
We need a loan to pay for our non discretionary capital needs for the next ten years. This is a fact that is not disputed by anyone. After careful research and a weighing of all possible options a majority of the board, The General Manager, an independent loan consultant and our accountant are all in agreement that the loan discussed at the last meeting is a wise and financially sound move that represents the best possible option for our co-op. Our loan consultant was clear that the size and type of this loan is very normal in the NYC Co-Op community and appropriate for a complex of our size. She stated that we are in healthy financial shape and taking on this kind of loan would not change that fact. Our General Manager reiterated that all of the planned capital projects represent either legally mandated issues or must-do projects like roofs, heating, water. Thank you for your support of the experts and this loan that ensures MHHC is run with balanced operating budgets and a secure line of cash for what we need over the next ten years.
Adam Gerson
4/11A
Thank you, Adam.
Allen
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