At a previous Umbrella Board meeting, I made a statement about the real estate office lease which expires around April of 2018. Mind you, they don’t record those comments in the minutes, but evidently they feel defensive about not doing the best possible job.
Here is the statement which I gave to each member of the UB at that meeting:
The current lease and arrangement with Bain Real Estate runs through March or April of 2018—early next year. This contract was completed without Providence Point’s interests being professionally or legally represented, and it states that fact in the actual lease agreement.
Prior to obtaining the office space on our property, Bain was like any other real estate company as far as sales and marketing in Providence Point. They had a market share of just under 5%. With the advantage of the location within Town Hall plus promotion on the official Providence Point website, Bain’s market share climbed to over 50% during the 2016 calendar year.
During the 2016 calendar year, Bain real estate paid rent and bonus payments to Providence Point totaling approximately $30,000 while they generated approximately $1.2 million in gross commission income solely on listings and sales within our community.
There are at least 5 brokerages within 5 miles of Town Hall that would likely bid on the privilege of being designated our on-site real estate company. Providence Point could realistically expect to receive two to four times the current rate, possibly more if additional brokerages were invited to submit proposals. That would be somewhere between $60,000 and $120,000 per year instead of the approximately $30,000 we received in 2016.
As a resident of Providence Point, I want to see our resources used in such a way as to bring the highest and best benefit to residents. As Umbrella Board members, I am certain that you want the same.
I hereby notify the Umbrella Board leadership and representatives that any attempt to extend the agreement with the current tenant, or to execute an agreement with a new entity without requesting proposals from the many highly qualified brokerages in our area, will be viewed as a breach of your duty of ordinary and reasonable care. (RCW 64.34.308)
This time, let’s all work together to secure an agreement that benefits the owners and residents of Providence Point.
Highland Village, Providence Point
This is the response, in part, from board VP Fay Helmon:
“…a review of the negotiation of the Lease between Providence Point Umbrella Association and Coldwell Banker Bain, clearly shows that the Association involved appropriate professionals, including an outside third party, in the research and development of the Lease. This careful research demonstrates that the 2012 Umbrella Board did, in fact, meet the ordinary and reasonable care standard required by RCW 64.34.”
Notice the difference, I stated that PP was unrepresented in the lease contract. That is a fact that is actually stated in the lease.
Fay responded that PP had outside help for research. True, but it doesn’t contradict my statement. Research help is NOT representation.
Note again, I stated that future activities should include reaching out to other nearby real estate companies for proposals to maximize the benefit to PP rather than simply extending the current lease–and to NOT do so would be a breach of duty for the current board.
Fay responded that the 2012 board did not breach their duty.
I never claimed that they did. But I really doubt that Fay Helmon is a qualified arbiter to determine that a review “clearly shows that the Association involved appropriate professionals…”, especially if PP was unrepresented in the actual lease.
Just another example of how our current UB leadership is lacking. They ignore the facts and create their own straw-man argument. They claim to answer a complaint that was never made, and they seem totally unconcerned about improving business agreements that affect your monthly dues. Coldwell Banker Bain may end up being our on-site company, but it should be the result of a competitive process that benefits the membership, not just a simple extension.
For residents who care about responsible spending and lowering our monthly dues, we don’t think it is too much to ask.