Update on Montrose property proposal
The following information was sent to members via post with an active registered address. For the PDF version - click here
Dear Members,
Following the recent on-line Special General Meeting (SGM) held on 7 June 2020, this letter is being sent to inform you of the overall final outcome of that meeting.
The proposal presented at the SGM, was to acquire a lease property from Barnet Council in Montrose Playing Fields, London NW9. The view was that it would operate as a small base for our Vishwakarma Dada. This was to be a stepping stone from where; thereafter in the years ahead, we would continue working towards a more permanent home for our dada and the community.
The Meeting was adjudged as valid, since the quorum of minimum numbers of members (75 people) was exceeded as per the constitution and the meeting was chaired by the President of SVA of UK. The details of the Proposal were presented and discussed in great detail, and many members also participated in the question and answers session thereafter. Thereafter, the members were requested to vote for either accepting or declining the proposal via www.suthar.uk/property online platform, email, SMS text or Postal Slips until the closing date of 14th June 2020.
On the the 14th June a Meeting was held of the Executive Committee, Board of Trustees, along with the co-opted members to count and review the results of the voting by the members and to discuss the proposal again before taking a view of all EC members and trustees if they were accepting or declining to proceed.
Votes Results
We received 144 votes in total across all the voting platforms. The breakdown is as follows:
| Platform | Votes Received | Rejected | Valid for Voting | Vote: YES | Vote: NO |
|---|---|---|---|---|---|
| Proxy Email | 1 | 0 | 1 | 0 | 1 |
| On-Line Votes | 84 | 4 (Non Members) | 80 | 64 | 16 |
| SMS Votes | 21 | 1 (Duplicate Vote) | 20 | 16 | 4 |
| Postal | 44 | 0 | 44 | 24 | 20 |
| Total | 150 | 5 | 145 | 104 | 41 |
A further 32 votes received via SMS soon after the closing date deadline (14 June 2020) which have to be void as per the voting criteria set.
Members Reasons given for YES Vote:
Good luck guys are doing well, looking forward to seeing our Vishwakarma Dada's house.
Be bold and go for it. Kindly ensure that all the procedures and paperwork is tied up in accordance with the Charity Laws and regulations. May you all be blessed with DADA's Devine grace and strength to move forward for the benefit of our Community and be part of the protection and advancement of Sanatan Vedic Dharma.
Be bold and go for it Guys.
I have always been supported supporter of aquiring property for the community.
SVA should seriously consider procuring 7 year "Deeds of Covenants" which will be accepted by the Banks in the UK as security / collateral.
A great step towards establishing a building for DADA
A fantastic opportunity to provide a better foundation for our community. Well done team for the amazing effort.
A good start towards a bigger goal.
Members Reasons given for NO Vote:
Property is on an open field. With glass, it's it too exposed.
Too much of a commitment with high risk based responsibilities for generations to come, lease hold - freehold would be a better option.
Rented property.
Under present CORONA condition holding meetings, celebrations, or cafeteria are not possible/viable. Risky proposal.
No clear Business plan supported by a full financial cost model.
Layout of the property and facilities will not be fit for the purpose.
Executive Committee Members including Office Bearers: 10 voted YES to Accept & go ahead with the offer, 1 voted NO to Reject the proposal.
Board of Trustees: 2 voted YES to Accept, 2 voted NO to Reject the proposal, and 1 voted “No-Decision”.
In line with our constitution, although the majority of the EC were in favour to proceed with this property, the Board of Trustees must ALL be in agreement to provide the consent to proceed with the purchase because the final decision on property matters must be decided by the Board of Trustees as per constitutional guidelines.
Since this was not achieved, it is with deep regret the team will not be proceeding any further with this property proposal.
Voting Rationale
The reasons for non-consent by two of the Trustees and one undecided Trustee are listed in bold, with EC comments below:
The Risks associated with leasing were too high. You are willing to risk £150,000 for renting!
The EC confirmed that pledges were secured from members to ensure any shortfalls, would be covered for a period of 3 years. Ranging from £30,000 secured to start off the project and 100 members pledging £10-£21 monthly direct debits.
Sub-letting contracts for the lease of the café should be signed before moving ahead.
The EC did advise this was not realistic option due to property law compliance. The EC already had Preliminary Rental Terms agreed with a Proposed Tenant via the Council to rent the Café at £17,000 per annum for 10 Years.
No SVA functions could be held there.
The hall capacity outlined in the council documents stated D1 consent was granted for 80 people seated and 100 standing. So this was ideal for all smaller SVA of UK functions such as Hanuman Chalisa, Bhajans etc.
Concerns regarding personal liability of Trustees.
It was already pointed out that the assets would be in the name of the charity with relevant liability insurances in place.
Guaranteed rental was of concern.
The EC assured that the council had confirmed various groups who would be using the hall on a regular basis, and the minimum number were included in our income projections that was sent with the initial proposal letter.
Secured pledges from members, monthly and lump sums were not sufficient.
It was already pointed out that the first 3 years costs were assured and a model to expand regular monthly income was in place.
It is not a freehold property and as such we would not own it.
The point was reiterated that this property would be a stepping stone for our Association, to procure a permanent home.
Only 1/3 of the members voted, what about the other 2/3 of members?
This shows the level of support you (the EC) have. Historically, turnout at almost all AGMs/SGMs had been low, with meetings getting adjourned. Today we have one of the highest vote turnouts of recent years, and this despite the current lockdown.
The time has gone to have a base (we are 25 years too late). Since we are renting, why not make a 3 year deal with other communities with halls such as Ekta Centre, KP Hall, Sattavis Gam and just rent it for functions as we do now. That way you don’t have to manage, pay no tax and you don’t spend/waste community money unconditionally and everyone is happy and can sleep well with no hassles.
This place would be a stepping stone in order for us to build a firm base of support from the community so we CAN acquire a freehold property, as we would not be wasting or spending community funds unconditionally, as we had solid pledges to cover any shortfall from a group of philanthropists.
Like many of you, we are disappointed with the outcome but we would like to take this opportunity to thank all members who took the time to attend the SGM, to vote and provide valuable feedback on this proposal.
The team remains committed to the vision of accruing a small base for our dada and the community and we sincerely hope and trust that in the future your continued support will remain to our Community and Association.
Jai Shree Vishwakarma
For and on behalf of the Executive Committee and Board of Trustees - SVA of UK