On Saturday, May 4, 2013, the Vancouver Sun published an article on the Historic Joy Kogawa House and the recent open meeting held by TLC’s Board of Directors to update the community and TLC Members on TLC’s current state of affairs.
While TLC’s Board of Directors appreciated having interested parties of the media attend the open meeting and report on the updates shared, the article in the Vancouver Sun did include numerous inaccuracies which we have requested the author correct. To ensure that our Members and the public have the facts a few of these corrections are included below.
The 15-year-old non-profit society has been unable to meet all of its financial obligations for a year and no longer has paid staff.
There are eight paid staff (TLC went from a provincial organization of 50 to 8 in 2012) who are responsible for maintaining the 51 properties, 200+ covenants and a membership base of 7000. The Board have taken on the co-management of the organization through the transition period—on a voluntary basis—with a financial/general manager. The full details of the transition phase were laid out at the November 2012 AGM in the Chair’s address.
Concerns about the viability of the conservatory were expressed by critics three years ago and those concerns came to a head last year. But the extent of the problem is only slowly emerging.
The details of the transition phase have been well publicized since last year at the AGM when the full financial analysis was presented. These are all available on the website including all the mortgages which were also reported on in the press and can be found at the links below.
http://blog.conservancy.bc.ca/2012/11/tlcs-annual-general-meeting-2/
http://www.timescolonist.com/news/amid-heavy-debt-tlc-stays-upbeat-1.15567
http://www.timescolonist.com/opinion/letters/b-c-would-be-poorer-without-tlc-s-work-1.8947
Representatives of the Kogawa House Society said they found out there was a mortgage on house when a foreclosure threat was made in February and said they have struggled since to get their answer questioned.
The mortgage was placed on the house in 2006 with full public knowledge and the Kogawa House Society put the announcement from TLC on their blog, kogawahouse.com.
The total raised by the closing date was $673,392.37. The price of the house was $686,000, but there were many additional costs. Fundraising was targeted at $1.25 million.
These donations came from many donors, including individuals, foundations, and corporations. However, approximately 93% of the total amount was from two major donors: Joy Kogawa and Ontario 443472 (Senator Nancy Ruth for $530,000).
Donation history
2006 pre closing date $673,392.37
2006 after closing date $85,754.28
2007 $5,250.52.
2008 $7,193.00
2009 $7,230.00
2010 $9,276.00
2011 no money was raised
2012 $6,358.00
Donations for Restoration
2010-2011 $18,155.15
Grand total $826,564.32 and many of these later donations are specific to renovations which couldn’t be used against the mortgage anyway.
Total costs $861,000.00 ($686,000 plus costs over the last 6 years of $175,000)
$34,435.68 deficit with no latitude for paying off mortgage.
Target $1.25 million
Below is an excerpt from the announcement from TLC which was pubished on the Historic Kogawa House Society blog.
The Land Conservancy of BC has decided to exercise its option to purchase the Historic Joy Kogawa House and take out a short term mortgage to save it from demolition (see press release below). But we only have until August 2006 to raise the balance of the money needed to purchase the property in order to prevent TLCfrom carrying a long term mortgage on this property. This buys us a bit more time to work towards the goal of preserving this important symbol of Canda’s cultural heritage in perpetuity.
Our goal of $1.25M as follows:
◦ Land and House Purchase $700,000
◦ Restoration of Property $200,000
◦ Endowment $300,000 to offset costs of maintaining a writers-in-residence program
◦ Cost of Fundraising $50,000
To date we have raised $235,000 from over 500 people in donations and pledges.
This is still a time sensitive campaign. We have until August 31, 2006 to ensure the preservation of this property in perpetuity. Your gifts and your ability to connect us to others who may be intertested in giving is essential to our success. I am confident that with your help we can reach our goal of making this an educational site and a retreat for writers of conscience. If you or someone you know has yet to donate or pledge to this important campaign, please take a moment to go to The Land Conservancy’s website at www.conservancy.bc.ca and make your donation or pledge today. You can also print the attached pledge/donation form off and give it to others.
There are silk threads of hope healing and reconcilation running through this campaign and we’ve been inspired by the commitment and interest from people all over Canada, throughout the States and from parts of Europe and Asia. It’s exciting to see the world become your neighbour and join together in this great cause. We are a significant step closer to preserving this important symbol of Canada’s cultural heritage in perpetuity, which is important to us as individuals and as a society. It’s a symbol that will carry with it the importance of our past, and even more importantly, provide a reminder for generations to come of the multiculturalism and interculturalism that provide the backbone to our culture and makes us proud to be called Canadian.
Thank you for your interest in and support of our campaign.
Sincerely,
Nancy
Nancy Tiffin
Development Officer – Major Gifts
TLC The Land Conservancy of British Columbia
“Joy Kogawa herself raised the full purchase price for this house before TLC got involved,” he complained.
The individual was incorrect and this statement could have been checked with the above excerpt from the Historic Joy Kogawa House Society blog post.
Vancouver lawyer Anders Ourom, who attended the meeting out of personal interest, said that TLC transferred land in Squamish to a developer last year. He alleged that TLC acquired the land in 2005 on the understanding it would protect it.
“The developer is now building the thing that the land was acquired to prevent,” Ourom alleged.
This allegation is incorrect and could have been checked with information published last year including the article on straight.com.
But the Kogawa society, after taking possession of the house in 2006, handed it over mortgage-free to the better-equipped TLC, which promised to ensure it was preserved. The society concentrated on running programming at the house.
The Historic Joy Kogawa House Society never owned the house. TLC has always owned it with the mortgage on it. The Historic Joy Kogawa House Society was incorporated as a non-profit society with the purpose to create programming for the House on September 11, 2007. On March 5, 2013, the CRA let the society know that they had been awarded the society charitable tax status, effective January 1, 2013, and that was the first confirmation TLC had to ensure the legal transfer to a qualified donee. This was consistent with TLC’s desire for the local group to build capacity to hold it.
The status was applied for in case of possible transfer of the property.
But the credit union said it was only indirectly involved.
Representatives from Vancity have provided the following for clarification:
As the context might result in the reference to Vancity’s “general support” being misconstrued, we wished to reiterate the origins, purpose and nature of the support:
Over the course of last summer and fall Vancity was approached by a number of individuals, including representatives of conservation, land trust and heritage organizations, who expressed concern about the potential implications for the broader land conservancy movement of The Land Conservancy of BC’s (TLC) financial and operational challenges.
In response Vancity convened a “Wayfinders” table, open to all conservancy organizations and others able to offer expert guidance on land management tools and strategies, as well as the policy environment for land trusts and conservation. The table was premised on three principles-based objectives shared by all participants:
1. To help preserve irreplaceable conservation lands in the TLC portfolio for the purposes for which they were intended.
2. To restore and enhance public faith and confidence in the conservation movement as a whole.
3. To work with and support partners across the conservancy movement in developing more effective tools, sharing exemplary practices, and promoting greater collaboration in advocating for a more enabling policy landscape for conservation work.
The overarching long term aim of the Wayfinders table is to advance BC’s role as a conservation powerhouse within Canada and Canada’s in the world.
To support the deliberations of the Wayfinders in identifying best outcomes for the properties in the TLC portfolio Vancity retained consultants currently tasked with scoping “the issues specific to the current inventory of properties and land convenants held by TLC” and proposing “best ownership/management structures for each property.” These property consultants report to Vancity, and the results of their research are intended to facilitate best outcomes for the properties, with the input, advice and involvement of the land conservation community.
Vancouver Sun article Kogawa House faces foreclosure over Land Conservancy debt, May 4, 2013
