Can LWV afford GRF’s

Extravagant Lifestyle?

April 17, 2014 Residents VoicePamela Grundke

4/17/2014 1Residents Voice

Origins

• Leisure World’s Beginnings– A Moderate Income Home Owners Association,

retirement community. – (GRF, United, Third, Towers)– Sole Discretion Trust (Ie. Construction Contract).– Objective was the building of the amenities.– Amenities eventually funded by housing mutuals.

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Evolution

• On Jan 9, 2014, GRF By-Law 2.1.6 was changed by a majority of Corporate Members to read as follows:

“2.1.6 GRF shall obtain a majority vote from the corporate members (as defined in paragraph 2.4.10) prior to engaging in any business or activity specified in paragraph 2.1.4 .The vote shall be by ballot pursuant to paragraph 5.8.2.”

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Evolution (cont.)

• This would prevent GRF from building a new building or demolishing an existing building without the approval of the Corporate Members.

• GRF refused to acknowledge or agree to this By-law change by continuing with their plans to demolish CH 2 and replace it with a new Main Lounge.

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Today$10 mil Monthly Loan Interest $33,000

Restaurant 19 Bar $174,000

Monthly Rest 19 Bailout $30,000

Ongoing Engineering Costs per day $5,000

Destructive CH2 Study $50-80 k

4/17/2014 Residents Voice 5

Today Cont)Replace CH 2 with new Main Lounge $17.3 Mil

$2500 transfer fee – out of residents pocket $1.25 Mil/Yr

LWV Foundation Increasing need

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