Proposal for Sale of the Property at 272 Clinton Ave.
Happy New Year!
I write this note, not as an officer of DGT Alumni Association, but as one concerned member to other members I am able to reach. I vacated my last office, Secretary of the Board, in April 2021. I had served as an officer, including President and Secretary, between January 2012 and April 2021. I seek and ask for your involvement at our Annual, 2022 membership meeting to authorize the sale of the property at 272 Clinton Ave. and use the proceeds in a manner consistent with Federal and State non-profit law, to either endow the DGT Foundation, a charitable institution, or as a gift to another educational or charitable organization of DGT Alumni Association’s choosing, including but not limited to Pratt Institute, our Alma Mater. Going forward, in my view, the potential liabilities and risks to the organization, its officers and members vastly outweigh any benefits. Most importantly, our tenants and any other users of the building face potentially significant risks as well, as the building continues to age and deteriorate.
Through thick and thin, since 2006, volunteer members of DGT Alumni Association have been stewards of the property and promoters of new programing, namely Gallery House Internship Program. It has been a personally rewarding effort engaged in by usually, since 2012, between seven and ten members, some of whom are now in their early 70s such as me, some even older, and some younger. They have put in countless hours of work and there is much we can itemize on a list of accomplishments. However, the facts remain. The building is likely worth somewhere in the range of $3million, possibly more, but no way has been yet detailed and fully pursued to raise the $1.5million at the very least to carry out needed renovation and restoration of the magnificent 19th century building we called home. Income took a hit during the last two years of Covid. There has been one unit in the building with tenants who have not paid rent as called for in their lease. Tenants in New York State have been protected from eviction by law. Through New York State’s Emergency Rental Assistance Program (ERAP) we have so far been able to recover all but $10,000 as of reports and correspondence by our treasurer that I recently read.
The shortfall in income and cash flow has hampered or slowed our ability to make even small needed or desirable repairs. Although a Committee for Renovation and Restoration of the Property was formed and has met regularly to advise the Board through engaging in design, construction and financing planning, it too is dependent on individuals who are challenged by family obligations, their own business activities, as well as age sometimes combined with illness. I frankly don’t see that we are or can move forward in the required expeditious manner. The work of the committee and their dedication has been formidable. If there is any reason, I can offer to sum it up, it is that I, and perhaps others, overestimated the ability of members to become involved beyond paying dues. We have not been able to replace ourselves. We all simply have challenging commitments to life, family and work that naturally take precedence. I sense burnout is likely or very possible for our Treasurer, Tom Wong. Trust me, I handled the tasks of setting up and maintaining the books before handing them over to him and a bookkeeper. Our tax reporting to IRS, NY State, NY City and NY State Charities Bureau have now been in order for a decade. We lose Tom as Treasurer, and our challenges and risks will increase dramatically.
In closing, the Board, under New York State Law, has fiduciary responsibility for the organization. It means they must take steps to safeguard the assets of the organization. That is their responsibility. The House is both and asset and a liability, and operating it for rental in a housing market for the general public is a significant liability and a financial risk to the Board, even as we have maintained Directors and Officer’s Liability Insurance since 2012. As a member I ask that you join me at the annual membership meeting, usually held on the last Saturday of January, in directing the Board to sell the property and explore, at the very least, options for use of the proceeds of the sale, consistent with Federal (IRS) and New York State Non-Profit Laws.
Gil