[Lnc-business] Fwd: Paying off the mortgage

[Daniel Wiener]

In case this needs to be published on the LNC Business list, I am
forwarding my earlier motion as shown below.  I don't think this motion
requires prior notice, but it now has it.

Daniel Wiener

---------- Forwarded message ----------
From: Daniel Wiener <wiener at alum.mit.edu>
Date: Fri, Feb 14, 2014 at 1:20 PM
Subject: Paying off the mortgage
To: LNC Discussion <lnc-discuss at hq.lp.org>


After last night's Executive Committee meeting I wrote up the following
provision to be added to the Policy Manual.  I would like this placed on
the agenda for the upcoming LNC meeting.

*Section 2.03 FINANCIAL MATTERS*

*   17) Office Mortgage*

*It shall be the goal of the LNC to completely pay off the office mortgage
as quickly as possible, and in any case prior to the due date of the
10-year balloon payment.  Towards that end the LNC shall budget a minimum
of $60,000 in each odd-numbered year to pay down the principal until the
mortgage balance is zero.  Fundraising for this specific purpose shall be
made a high priority.  This provision does not preclude additional
fundraising and pre-payments in even-numbered years.*

The amount of $60,000 is based on the attached loan amortization schedule
(which I adapted from an earlier spreadsheet which Aaron Starr had
created), and includes a worst-case assumption that the extra payment will
not be made until December of each odd-numbered year instead of scattered
throughout the year.  The intention is that there be targeted fundraising
for the restricted building fund, with the resulting funds (net of
fundraising costs) being used to immediately pay down the principal so as
to reduce the future interest costs as quickly as possible.  Furthermore,
the $60,000 should be included in the annual budgets of odd-numbered years,
so as to increase the pressure for dedicated fundraising and thus avoid
having the money come out of the general fund.

Daniel Wiener
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