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Shelter Bay Newsletter
November/December 2003
In
November our SBAY Lease Committee was hosted by the Swinomish Lease
Committee in a get-acquainted meeting, and we all came away feeling
optimistic about working together towards a solution to benefit both
our communities with regards to the SBAY Master Lease. Appraisals are
still in progress, and we will keep you informed as to further
developments.
January/February 2004
The Lease
Committee has been in discussion with both the Tribe and the Osbergs,
with more meetings scheduled in the next few weeks. The appraisals are
nearly ready, and we anticipate lots of forward motion during March.
Stay tuned - we'll keep you posted.
President's Message For April 2004 newsletter:
Lease Committee Report
A
major goal of this Board this year has been to purchase Shelter Bay
Company, including the marina, and secure an extension to the Master
Lease. We have been waiting all year to hear the conclusions reached by
the appraisers hired by the Swinomish Tribe and by the Shelter Bay
Company. Our Lease Committee has met several times with the Osbergs and
the Tribe, in addition to our weekly committee meetings. We look
forward to bringing a recommendation for action to the Board and the
community in the very near future. Many thanks to dedicated Lease
Committee members Vern Lovelace and Dick Sabin for flying back from
Palm Desert to attend our March 8 meeting with the Tribe.
Lease Committee Report - July 2004 - by Judy Colby
The
Board received a letter from Osbergs' attorney, Peter Buck, in which he
returned our $5000 check, saying that Osbergs are not interested in
giving us an Option to Purchase at this time. They are negotiating with
the Tribe to extend the Master Lease to protect our interests.
We
also received a letter from Jim Johnson suggesting that, since he is so
busy running for the Supreme Court, he is amicably stepping down as our
attorney in this matter. He also points out that, given his litigation
history with the Swinomish Tribe, it would be in our best interests
that we use Philip Buri as our attorney in our negotiations with both
the Osbergs and the Tribe. Word has come to us that the two appraisers
are nearing agreement; we will keep you informed as things develop.
President's Message - August 2004
As
for the Lease Committee, I am pleased to be able to say that the
appraisers have finally finished their difficult jobs, and we are in
negotiations and moving forward.
Native American Day is coming
up on Monday, September 27th and we are currently looking at ways that
Shelter Bay can participate that day with the Swinomish Tribe and the
City of LaConner in this friendship celebration between communities. If
you are interested in finding out how you can volunteer, please phone
me at 466-5094. Mark your calendars for a day of fellowship, fun, food
and ceremony.
President's Message November 2004
This
month is all about THANKS!! We can each thank our neighbors who voted
to approve the purchase of Shelter Bay Company, by a vote of 636 Yes,
12 No, which is a 98% margin. Of 840 eligible voters, 77% voted. This
mandate is a clear indication that we can pull together as a community
to chart our future. Now let's work together to solve all the
details....with the presentation of information at each of those nine
meetings, plus the Town Meeting.
Your Board, Lease Committee
members and Attorney Philip Buri have been working a lot of extra hours
during the past month to bring all the details together for the Stock
Purchase Agreement and for the election to approve it. We are all
greatly relieved and are already working full speed ahead on the next
steps. We plan to complete the financing package to close escrow during
November and then begin negotiations with the Tribe for sub-lease
extensions as soon as possible.
President's Message December 2004
The
Lease Committee plans to meet with Swinomish Tribe Representatives in
the first half of December to begin discussions regarding lease
extensions. The Board expects to have another round of Community
Informational Meetings in early January to keep you all up to date as
to Community and Company developments and answer your questions.
President's Message by Judy Colby - January issue
2005
On
behalf of the Community, we were able to complete the purchase of
Shelter Bay Company from the Osbergs on November 24, allowing us all to
truly be thankful over the holiday weekend.
Not skipping a beat,
our attorney, Philip Buri, and Lease Committee members, Vern Lovelace,
Tom Ihrig, Dick Sabin, Dale O'Brien and myself, met on December 7 with
representatives of the Swinomish Tribe to begin discussions regarding
payment requirements and lease extensions. On both sides we all feel
that this is an excellent window of opportunity, and are confident that
we will be able to work out something fair to both communities. We
decided to meet again the end of January, and that in the interim our
attorneys would meet a couple of times to talk hard numbers. Their
first meeting was December 15, where they also discussed the cutting of
conifers issue.
President's Message for February 2005
Most
of you attended one of the three Community Informational Meetings on
January 9, and we appreciate your showing up to get your questions
answered, rather than rely on rumors. For those of you who couldn't
attend one, the material used for the presentations is in the Minutes
book in the office.
The Lease Committee met on January 20 with
our attorney, Philip Buri. On January 24 Philip and the Tribe's
attorney, Marty Loesch, will have a conference in preparation for our
January 25 meeting the Tribe's Lease Committee and BIA representative.
The Board remains fully engaged in these discussions, and we will keep
community residents updated through this newsletter and Informational
Meetings as necessary.
March 2005
Message from Your Board by President Judy Colby
The
long-established name of this report has been changed to reflect the
fact that, although the President writes the draft, the whole Board
edits and approves it before it goes to press. This message actually
comes from the Board of Directors to keep Community Members up-to-date
and well-informed.
During the past month, the Board's main focus
has been working towards our goal of a Master Lease Rent and Lease
Extension settlement with our Swinomish landlords. Your Board, Lease
Committee and Attorney Philip Buri have spent considerable time
discussing and crafting a proposal to be presented to our tribal
partners on February 24. Keep your eyes on this newsletter to keep
informed of progress on this important issue.
Year in Review by President Judy Colby - 2005
Election Packet
Then
in mid-August the opportunity suddenly arose for us to purchase the
Shelter Bay Company, which put everything into high gear again. It was
a huge task to accomplish, and with lots of talented, dedicated people
helping, we were able to complete the purchase the day before
Thanksgiving. We had a truly thankful weekend, then jumped right into
the process of working with the Swinomish Tribe towards a rent
adjustment settlement and lease extension. We are still in discussions
with them to find a middle ground that will work for both communities.
Perhaps by the time of the Annual Meeting, we will have more specific
data to share with you.
During the year the details of all of
the above and more have been reported each month in our monthly
community newsletter. If you want to revisit those, you can find them
in the office.
June 2005 President's Message by Judy Colby
Regarding
Lease negations with the Tribe, on April 18 the Board approved a
counteroffer, which our attorney delivered to the Tribe's attorney. At
this time we are waiting for their response.
President's Message - July 2005
The
Annual Sublease fees are separate from the above. In previous years
community members mailed their Annual Sublease fees to the Osbergs, who
derived a profit after paying the annual Master Lease Rent to the
Swinomish Tribe/BIA. Master Lease Rent payments are sent to the Bureau
of Indian Affairs (BIA), which disburses the money 50% to the Tribe and
50% to individual Native American families (referred to as Allottees),
who own half the land.
The Master Lease requires that every ten
years the Master Lease Rent be adjusted based on an appraisal of raw
land. In 2003 we entered a new 10-year period, and negotiations are
still underway to determine this escalated Master Lease Rent amount. In
2003 and 2004 the Osbergs collected $410,000 each year from Sublessees
and paid the Tribe/Allottees $210,000 each year on the same basis as
the previous 10-year period, as set forth in the Master Lease.
As
of 2003 there is no longer any profit from Sublease fees. When the
Community purchased the Company in November 2004, the Osbergs
transferred to us $391,113 in cash and receivables, which they had
earmarked for Master Lease Rent escalation. These monies, in addition
to the current Sublease fees of $410,000, are being held in a special
interest-bearing account secured for payment to the Tribe/Allottees
upon settlement of the adjusted Master Lease Annual Rent amount.
President's Message August 2005 by Judy Colby
Lease:
July 1 began a new fiscal year for both the Community and the SBAY
Company. As owners of the Company we delivered the annual Master Lease
rent check to the Bureau of Indian Affairs on July 1 in the amount of
$210,000. This payment is based on the previous 10-year payments,
because the Master Lease states this amount should be paid until the
new Annual Master Lease Rent amount is agreed upon between the
Company/Community and the Tribe/BIA. As you may recall, the current
10-year period began July 2003 and the rental amount due the Tribe/BIA
is still in negotiations. Meanwhile, we are holding around $600,000 in
an account earmarked for payment to the Tribe/BIA for the years 03-05.
This is the difference between Sublease payments collected each year
and the payments forwarded to the BIA.
The Board has submitted
a revised proposal to the Tribe regarding the Master Lease rental
adjustment and extension, and we are awaiting their counteroffer.
President's Message- September 2005 by Judy Colby
We are still waiting to hear back from the Tribe regarding the Lease
proposal that we previously submitted to them.
President's Message for October 2005 by Judy Colby
Lease:
Your Lease Committee and Board have been working diligently for a
solution to the Rent Adjustment and Master Lease Extension. At this
printing, our final offer, before going to Arbitration, is on the table
with the Swinomish Tribe/Allottees/BIA. Any agreement we come to will
need to be ratified by a vote of Community Members. As soon as we have
something concrete to bring to you, we will keep you informed via a
personal letter and Community Information Meetings.
November 2005 President's Message by Judy Colby
Master Leases Rent Adjustment and Extension:
The
Ad Hoc Lease Committee, which has been in existence since June 2003,
has now completed its two appointed tasks: 1) Bring to the Board a
proposal for purchasing Shelter Bay Company, and 2) Bring to the Board
a proposal for Master Leases Rent Adjustment and Extension. This sounds
simple but, in actuality, has been a long, detailed and very intensive
project. Several devoted individuals put in an incredible amount of
hours to come to this point of completing the items contained in the
mission statement for the committee. As Chair, I would very much like
to thank Philip Buri, our SBAY attorney, and all the members who have
served on this ad hoc committee. Dick Sabin, Vern Lovelace and I have
been on the committee for the whole time. Also contributing their
excellent expertise at different times were Mike Morrell, Bob Sale, Tom
Ihrig, Dean Anderson, and Dale O'Brien. With the submission of our best
and final offer to the Tribe, the job of this committee is complete.
Further actions on the subject will now be handled by the Board and
attorneys.
The above Committee has met many times with the
Tribe, talking over several Board-approved proposals. Along with Philip
Buri, we were working diligently to come to an agreement that made
sense for both sides, which we could then bring to the community for a
vote. However, we are all very disappointed that we were unable to
secure any agreement that included an extension to the Master Leases.
Our overtures to take the matter to Mediation, where the Tribe/BIA
representatives and our Board would all get together to work toward an
agreement, has also met with no response from the Tribe. At this point,
unless the Tribe wishes to mediate or negotiate further, the only
alternative left to us is to begin Arbitration proceedings. Peter Buck,
the Osbergs' attorney during the last Arbitration in 1993, has agreed
to represent the Community in this process. Sadly, this necessary
action will have already been set in motion by the time this newsletter
reaches you.
December President's Message by Judy Colby
Master
Leases: The status is the same as last month and will probably remain
so for several more months: that we will need to go to Arbitration to
determine the raw land value. To refresh your memories, there are two
Master Leases, which we often refer to collectively as "the Master
Lease". The first was entered into in 1969 and covers Divisions 1, 2, 3
and 5; the second dates from 1970 and covers Division 4. The annual
rent that Shelter Bay Company pays to the Bureau of Indian Affairs for
disbursement to the Tribe/Allottees is 7% of the raw land value,
adjusted every ten years.
As in 1993, both sides have been
unable to reach an agreement as to the value of the raw land and will
go through Arbitration for a determination of same. Each side will
choose an Arbitrator and the two Arbitrators will choose a third. These
three will be the judges in the case, hearing testimonies and
determining the basic raw land value. The Shelter Bay Company (that is
you and me) has hired Buck & Gordon to represent us, as did the
Osbergs for the 1993 Arbitration. The Tribe/Allottees are unwilling to
discuss an Extension until the results of the Arbitration establishes
the amount of annual Rent to be paid for the period 2003-2013, so that
is the next step in the process.
President's Message for May 2006 by Judy Colby
This
should be titled "Outgoing President's Message", as it is the last time
I will be writing in this capacity. These past 5 1/2 years as Board
Member and 3 years as President have been quite a challenge, to say the
least.
Communications: A few days after every Board meeting the
minutes books in the office hold all the supporting documents:
Manager's Report, Maintenance Report, Treasurer's Report, letters, and
all other documents discussed. Minutes are placed in the book after
approval at the next meeting. There are binders for Community minutes,
Company minutes, and Newsletters, so everyone can keep informed to
his/her heart's content. The Board and Manager appreciate your
questions at any time, and all sub-lessees are welcome at Regular and
Special Board meetings and all committee meetings.
Master Lease:
On March 27, 2006 your Board presented another offer and another
request for mediation to the Swinomish Tribal Senators, Indian Owners
and Bureau of Indian Affairs. We are still awaiting their response.
Meanwhile, attorneys on both sides are continuing with background work
in preparation for Arbitration proceedings. |
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