|RE: COMPENSATION FOR FOUNDERS' HARD WORK||<– Date –> <– Thread –>|
|From: Eileen McCourt (emccourtcharter.net)|
|Date: Tue, 7 Dec 2004 14:29:28 -0800 (PST)|
At Oak Creek Commons, the first 50K invested was credited double. The next 25K was credited 1.5 times the value. After the first 75K credit method, all members who loaned money beyond the 5% equity buy-in were paid interest on their money. The interest rate was higher at the beginning when the risk was higher, and went down after the land was purchased, and the risk was reduced. We raised home prices(and therefore the amount of 5% equity buyin required) a % over base (as the base kept going up with increased construction costs as the budget was finalized) at different junctures as the risk went down - when the land was purchased, after construction started, and a couple of arbitrary dates in between to encourage associates to commit. Early commitments received their credits in the form of discounts. Interest was accrued and paid in the form of a discount, unless the individual loaning the money asked for a different arrangement. So, early adopters had a lower base price, and opportunity for credits and interest payments that ultimately reduced the cost of their homes. The price increase at each juncture was about 2.5% over base. It does create a need for strict accounting of home prices and dates of membership. For a short time, we also paid the initial founding member a marketing bonus for working full time on the project. This ultimately worked out to about 12K in an further discounting their home. After the first year, we had a marketing budget and worked with outside consultants and no community member has been otherwise compensated for working on the project. I think the risk evaluation worked well in adequately compensating the early adopters. Eileen McCourt Oak Creek Commons Paso Robles, CA 93446 -----Original Message----- From: Linda Gluck/Treehouse [mailto:treehouse [at] netstep.net] Sent: Tuesday, December 07, 2004 2:03 PM To: Cohousing list serve nat'l Subject: [C-L]_ COMPENSATION FOR FOUNDERS' HARD WORK Hi- As I'm sure many of you know, fhe first 2-3 years of forming a cohousing community take mountains of administrative time and energy - finding land, finding people, working w realtors, lawyers, planning boards, engineers, architects, financial advisors, and banks as well as developing all community documents, keeping all parties informed and keeping records of everything. Our members are doing all this work. It seems inappropriate that residents who buy in in the 4th or 5th year just pay for their unit and their part of what's held in common, and get the benefit of all the founding work at no charge. Do other communities have a way of quantifying that founder contribution, so that founders are compensated in some way - maybe in discount on their unit? thanks, Linda Gluck Ulster County Cohousing (in formation) _________________________________________________________________ Cohousing-L mailing list -- Unsubscribe, archives and other info at: http://www.cohousing.org/cohousing-L/
COMPENSATION FOR FOUNDERS' HARD WORK Linda Gluck/Treehouse, December 7 2004
- RE: COMPENSATION FOR FOUNDERS' HARD WORK Eileen McCourt, December 7 2004
- RE: COMPENSATION FOR FOUNDERS' HARD WORK Alexander Robin A, December 7 2004
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