Thursday, February 22, 2007

Beacon Cultural Foundation responds...

Earlier today on the Beaconite Discussion Board, Beacon Cultural Foundation President Sam Yanes responded to the claim that the Beacon City School District received no further payments from BCF after the initial down payment and offered an explanation to the financial arrangement made BCSD and BCF in the sale of the old high school building:

[...]Take the issue of how much compensation the School District received
from the Beacon Cultural Foundation, for example. It's been suggested that the
Beacon Cultural Foundation had not compensated the School District after making
a $250,000 down payment in 2003 towards the purchase of the old Beacon High
School. This is not true. Over the past four years, the Foundation has paid the
District over $750,000 in principal and interest.

In fact, the original financial agreement executed between Deborah Sheers,
the past president of the Beacon City School District Board of Education, and
the Beacon Cultural Foundation was specifically constructed to ensure that the
District received their interest and principal payments. And at the same time,
ensure that the District would receive the space they required for their own
programs at a reasonable rate. As part of the contract, the District leased
space from the Beacon Cultural Foundation at rates equal to interest payments
due the District from the Foundation. The contract called for the rent per
square foot that the District paid to increase in step with increases in
interest payments due. And when increases in interest payments exceeded the
maximum income from the space the District occupied, the District rented more
space in the building to cover the difference. Once the District's initial
three-year lease expired, they remained in their space as a tenant-at-will. From
an accounting point of view, rental income was booked as income to the
Foundation and interest payments were booked as expenses paid to the School
District. [...]

Sam's full message can be read on the discussion board..the posting is #9920

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