Submitted by Jason Robinson on
Toronto, November 4, 2013 - On behalf of the TUC Board of Directors, we would like to notify the membership of our most recent Field Funds expenditure. As many are aware, in July 2012 the TUC entered into a field development partnership with Razor Management Inc. (RMI) to transform Monarch Park Collegiate Institute into a premier sporting facility and the new home of TUC Ultimate. The details of that partnership can be found here. This partnership has proven to be a very successful venture for the Club, as we are now the primary tenant in the highest quality sport turf facility in Toronto, and will be for years to come. The final step in this project is the completion of the MPS clubhouse, which will be home to our new TUC head office upon completion in the next 6 weeks.
Recently our partners at RMI have approached the TUC for additional funding to account for clubhouse expenditures. After a serious financial review and the engagement of legal counsel, we have extended a loan to RMI from the Field Fund in the amount of $190,000 in exchange for the first right to book times and use at any new future RMI fields behind the facilities primary investor. This extends the Club's ability to provide the best locations, times, and new turf facilities for our members. The loan will be repaid in two installments: $95,000 on July 1, 2015 and the remaining $95,000 on July 1, 2016. TUC will also earn 4.5% monthly interest on any outstanding balance until it is repaid. The loan (principal and interest) can be fully recouped by TUC with 90 days' notice on the condition that we provide written notice of an opportunity to invest in another field/facility, allowing us the flexibility to pursue additional field/facility opportunities as they become available.
This loan is drawn exclusively from our existing Field Funds. Although the initial loan in 2012 diminished our Field Funds at the time, approximately $136,000 in principal and interest were repaid to TUC on July 1, 2013. We have also collected $54,500 in membership Field Fund contributions since July 2012. There is no material impact on our Operating funds.
Should the membership have any questions regarding the clubhouse loan, they are welcome to contact me at president@tuc.org. I would like to extend special thanks to my colleagues on the TUC Board Executive and the General Manager for their work in securing this additional value for the Club for years to come.
Sincerely,
Joseph Krengel
TUC President