This year Mana Project will launch Phase 1 of its capital campaign in July 2009 to raise an initial $168,000 to take over the management and operations of the property known as Nancy Forrester’s Secret Garden in order to preserve it as public space. Mana Project, contingent on obtaining a Bank Loan, plans to take over the current obligations and enter a Lease with Option to Buy the property and convert it to nonprofit status. Mana Project has the commitment of local bank and mortgage financiers who are advising the Capital Campaign. The two year plan calls for stabilizing the operating budget and among other things, hiring a grant writer, a bird handler/resident manager, a webmaster and an executive director. Nancy Forrester will continue to live in her residence in the Garden, assist in the transition, and will remain the environmental artist in residence who will shepherd the garden and its invaluable collection of art and botanica. Mana Project will continue to run and expand the existing three Garden programs: I Love Parrots, Greensong Garden Program, and the Arts Program.
FUNDING PLAN
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Define the Loan |
Amount |
Description of Outstanding Debt on Property |
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1,050,000 |
Mortgages (750 +300) |
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77,000 |
Back Interest/payments on Mortgages
50 + 27 as of July 5, 2009 |
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32,000 |
Taxes due, as of March 31, 2009*
(2007-8--Lot 2: $20,649)
(2008 --Lot 3: $11,101) |
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13,000 |
Loans for Mortgage Payments and Property surveys |
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SUBTOTAL |
1,172,000 |
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180,500 |
Funding of one year’s operating budget |
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SUM for Bank Loan |
1,352,500 |
(as of July 5, 2009) |
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Monthly Loan Payment |
7,000 |
Assuming 2% over prime (6% of 1,400,000) |
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Other expenses |
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Closing costs |
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168,000 |
Escrow Bank Requirement to service $1,400k loan for 2 years |
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*Save $32,000 annually in Taxes or $160,000 in 5 years |
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