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June 21, 2022 at 7:20 AM #3184BillKeymaster
Dear Fellow LECC Members.
Unfortunately, I will not be able to attend this year’s AGM as I have just contracted the Covid.
I do want to comment on Motion #3 which I find very concerning. The selling off of assets is a very slippery slope and can ultimately lead to the dismantling the company. These valuable assets are here for the use of the Membership as well as the benefit of the Corporation. For those Members who have the privilege of having usable leased property north of their homes have a great asset to use at very little cost to the Member in question. I would suggest the minimal amount being charged to lease this land does not even cover the property tax of the leased land in question. But there is a benefit to the Corporation as well as the Member. The Member is expected to maintain the property in question as if it was his or her own property in return for such a favorable lease rate.
Those Members who have taxable buildings on the leased land are in different category. These leasehold improvements benefit the Member in question significantly with very little benefit being transferred to the Membership in general and thus the Corporation. However, this can and should be managed. Not by selling off the property but charging a lease rate reflective of the leasehold improvement on the leased building lot. To be clear, there is no requirement for a Member to build a taxable building on the leased property. It is a choice. I am fortunate to have one of these buildings, which I take great pride in. It has heat, a legal sewage connection, electricity, kitchen. For a token $30 per year, it is a fantastic deal. LECC could use the Town of Amherstburg tax rate at 50% valuation. For example, my tax payable on my building on the leased land is $211. The LECC surcharge would be $105.50. LECC would realize over $10,000 per year; $100,000. In 10 years based on 2016 MPAC figures if my calculations are correct.
We need to manage our assets, all of them. Not sell them off. Just because some one wants to buy something it does not mean that it is for sale. I would also like to point out that a 2/3 majority would be needed to alter the bylaw and sell off the land. That should be determined if the Membership wants to subdivide the land before any work is done on this. And who is going to fund this?
Bill McKinnon #389
Member in Good standing since 1981
LECC Past President, Past Treasurer, Past House & Grounds Director, Past Membership Director, Lecc Cheerleader, Lecc Historian
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