Q. Who is on the property committee?
A. Members of the property committee are: Norman Marshall, Headwaters Construction; John Gallagher, TRI Commercial; Ed Benoit, TRI Commercial; Nancy Lawrence, former board chair; Anne Ferguson, Hunter Richey Dibenedetto Eisenbeis, LLP; and Eric Solis, Wachovia Securities, LLC. All of the committee members have extensive background in commercial real estate, real estate law, and general construction.
Q. Can you provide some general information about both buildings?
A. Both buildings were built in the 1980's with hands on and financial support by both volunteers and staff. The Modesto office is a 9,751 square foot multi-use building with office space, large multi-purpose room, commercial kitchen, shop, warehouse, and conference room. The Rancho Cordova office is a 12,800 square foot multi-use building with office space and a conference room. In addition, there are two properties leased in the Rancho Cordova area; a 1,940 square foot warehouse and a 3,256 square foot shop.
Q. What information did the committee use that prompted their recommendation to sell?
A. The committee looked at the utilization and value of all council properties including both camps. This committee has been working over a year to determine the best utilization of assets. A part of the process was looking at the utilization of both buildings from a staff and volunteer perspective. The industry norm for space per employee is approximately 200 square feet. In the Rancho Cordova office there is 188 square feet per employee and in the Modesto office there is 609 square feet per employee. In addition, growth in Rancho Cordova necessitated moving the council shop and warehouse off site for a cost of over $96,000 a year.
Q. How much are the offices used by volunteers?
A. In the past calendar year, 13% of the property usage in the Modesto office is troop/service unit driven and 87% is council driven programs and activities. In the Rancho Cordova office 4% of the property usage is troop/service unit driven and 96% is council driven programs and activities.
Q. Why weren't the volunteers asked to voice their opinion, concerns or objections to the sale of the council offices?
A. Management of the council assets, which include the council offices, is the sole responsibility of the board of directors as a part of their corporate fiduciary responsibility.
Q. Why was the decision made to sell the completely paid for council offices at the lowest time of the real estate market?
A. The council offices in Rancho Cordova and Modesto are both debt free. Experts in the commercial real estate field believe that while the housing market is depressed the commercial market is not. They have advised that selling at this time and purchasing new offices at a later point will be to our advantage.
Q. How long will this process take?
A. We probably won't be moving any time soon. Our hope is to sell both buildings and lease them back while we look for new space.
Q. Will girls and volunteers receive different or fewer services as a result of this move?
A. No. We anticipate the services in both areas will improve.
Q. When can we expect more information about the buildings and their futures moves?
A. Information meetings have been scheduled for Wednesday, May 14 at the Modesto office and May 16 at the Rancho Cordova office. Volunteers and members of the communities will have an opportunity to hear first hand about the sale and moves of both buildings. Notification of the offices moves will be shared with Girl Scout membership as soon as there is new information. |
