(A) The RA at its last meeting discussed the proposal we received from Arria Perrault about a new void sim for the Monastery NGO.
(Transcript not yet posted.) Here's my summary of that conversation:
1. Arria requests we approve an adjoining sim under the "Private Development" rules. See here for a summary of those rules:
viewtopic.php?f=8&t=2067 The law itself is here:
http://portal.slcds.info/index.php?id=2172. Essentially the NGO proposes to pay for the sim, relocate to it, and fund its operations by (i) selling the old Monastery site and (ii) selling several other tenant land plots on the new void.
3. The way this normally would work under the PD act is as follows:
(i) Developer buys sim
(ii) Developer develops (plats and landscapes) sim
(iii) Developer gets CDS government approval of plan, landscape, covenants, financial feasibility and "fit" for CDS
(iv) Developer opens land and sells plots. (Revenue stays with developer, reduces net cost of sim to them.)
(v) Once land is rented out, with some minimum specified occupancy percentage, developer grants sim to CDS, at which stage CDS takes over both the land, and the future risks of nonpayment. (CDS pays tier, and takes the rents, thereafter.)
4. Arria described a plan for the Monastery plus approximately 6 tenants. She also indicated that her NGO is ineligible to purchase a void sim, so they wish CDS to do so, and be reimbursed by the NGO.
We agreed to further study and discuss the matter at the next RA meeting.
(B) Arria has provided further information to us as follows:
1. The NGO plans to modify its charter in October to cover the proposed land operations.
2. CDS would buy the void sim by ordering in October for November delivery.
3. Arria suggests that it be placed to south of Locus Amoenus, as this is the most acute scenic gap we have at the moment.
4. The NGO or an affiliate (Virtus) would buy and pay local tier (rent) on all seven plots, so that CDS starts with 100% rented out.
5. As they are sold, the plot owners become new citizens as usual for CDS. The sim would open and plots be available for purchase starting in December.
(3) Here are my notes and recommendations from the executive branch.
1. As noted before, I believe this project generally is a good idea, and we should find a way to support it.
2. Particularly in a down SL real estate market, we are better off bringing fully rented, or rentable, sinms on board than opening up additional unrented land.
3. Although Arria has brought this proposal to us in good faith and has done much to make it workable, I do not completely agree that there is no risk to CDS. The primary risk to CDS from expansion is not sim *purchase* but rather sim *tier*, and keeping land rented. This proposal does not quite conform to the PD Act, because CDS is asked to purchase and own (as Estate Owner) the sim at the *beginning*. The MAIN safety remedy that the PD Act gives CDS is NOT to accept the sim until it's (a) turned over as a conforming, satisfactory fully terraformed sim; and (b) rented out to plausible permanent tenants. Under Arria's proposal we will NOT have that remedy: if the development phase failed, in this case, we still would own the sim (and be liable for tier).
4. Arria has worked to remove the second risk, by agreeing to have Virtus pay tier on all new 'rental' lots until they are re-sold. That reduces our risk, leaving only the credit risk of having a single owners responsible for a large proportion of our land. But we have two or three other large-concentration owners in CDS, so I do not see that as a fatal problem.
Here is what the PD Act says:
The citizen or developer shall create a construction design and submit that design to the Chancellor for review and approval; the Chancellor shall review the proposal and either approve it or send it back for specific revisions (in accordance with any existing master plan for CDS expansion) * * *
<jamie's comment> I believe a rough plat map, parcel size numbers and proposed rental amounts are required to satisfy that step. (Take a look at the material that the guild supplied for Locus Amoenus, as reported to the RA and approved by Alexicon, the chancellor at that time.) I suggest the RA do what i am required by law to do: wait until that information is provided and the Guild (BAC) has a chance to comment on it. </>
* * * donate sufficient money to the CDS estate owner to allow the CDS to acquire a sim that within two sim-spaces from the CDS and to pay tier on that sim for four months; * * *
<jamie's comment> Could we obtain confirmation from Arria whether that is the amount proposed to be "banked" by payment to CDS? We would order the sim as soon as we receive a payment for four months' tier on the void? </>
* * * construct the sim in compliance with the approved design (with the Chancellor or BAC shall periodically inspecting the work and requesting modifications within the discretion of the Chancellor, but subject to appeal); upon completion, the Chancellor or BAC will inspect and the Chancellor shall approve the sim as final or request additional work * * *
<Jamie's comment> As a practical matter, in the unlikely event that the sim was not properly delivered, CDS' further financial risk could be mitigated by selling the void back or abandoning it after the four months.
I recommend that we proceed as noted above, after confirming the matters stated above, and assuming that a confirming plan, map and rents schedule is provided as the relevant laws require. I do not believe RA action or attention is required until that material is presented for review.
Regards Jamie P
== My SecondLife home is Neufreistadt. Happily retired after three
== terms as chancellor of C.D.S., the oldest self-governing sims in SL.