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Background Information About the Committee's Work

Submitted by obot on

Introduction

This document provides information on efforts, over the past year and a half, by the Ad Hoc Committee to Explore Governance Structures & Ownership Entities for the Onset Campgrounds (the Committee). You may also download the contents of this page.

The Committee will provide additional, detailed information, in the form of committee meetings, meeting summaries, documents, and tent talks over the next several months. The Committee is working with the Onset Board of Trustees Communication & Marketing Committee to reach all stakeholders with this information.

Committee Formation

In late 2021 and early 2022, a number of community members began to believe that issues confronting the World Church could lead to significant changes for the Onset Campgrounds. Many felt that the community could either passively wait for changes, or proactively seek to shape its future.

After a number of community discussions held on the campgrounds, a group of community members decided to approach the 2022 Onset Conference with a proposal to establish a Committee to study alternate ownership and governance options. That resolution was approved, and a Committee of nine members was formed. The Committee had its first meeting on October 3, 2022, and has met more or less monthly since then.

Initial Goals

An initial set of Goals was established for any change including:

  1. Proactively provide cottage owners with a more secure and predictable future.
  2. Eliminate the possibility that the Campground may be sold in the future, resulting in loss of control of the property, its facilities and leases.
  3. Reduce, as much as possible, the Campground’s exposure to legal issues arising elsewhere in the church.
  4. Maintain and strengthen community control over the Campground.
  5. Maintain control over who can become residents on the Campground.
  6. Maintain alignment with the mission of the Community of Christ and its Enduring Principles.
  7. Provide the ability for the community to conduct activities and explore alternative revenue streams it deems appropriate without restrictions being imposed by the Church including reducing as much as possible the risk exposure we present to the Church.
  8. Provide flexibility for the Campground to broaden its mission to meet the needs of younger generations.
  9. Protect the vulnerable in any transition.
  10. Keep the costs, both of the transition and of ongoing expenses, to a reasonable level.
  11. Ensure that Campground infrastructure is sustained and hopefully improved.
  12. Look for ways to mitigate costs.
  13. Maximize the ability to successfully execute a change.
  14. Benchmark successful ownership/governance models to lower risk to Onset Campground from any change in Structure.

Development of Options

First, the Committee worked to research issues to be addressed and benchmark other communities with a similar profile and history. From this work, the Committee identified six broad options for the future of the Onset Campground.

  • Option 0: No Change to Ownership Structure
  • Option 1: New Subsidiary of Community of Christ
  • Option 2: New Independent Religious Charity
  • Option 3: Land-only Cooperative
  • Option 4: Land Condominium
  • Option 5: Subdivide the Campground and sell off the pieces/lots

World Church Interaction and Feedback

In early 2023, the Committee approached the Church leadership to get a sense of the Church’s interest in exploring a new ownership model and to determine its preferred approach.

While all six options where presented to Church leadership, the Committee focused on two options that were judged most suitable by the Committee:

  • Option 1: Continued ownership by the Church via a wholly owned subsidiary.
  • Option 2: Transfer of the property to a new, separate, religious non-profit based upon the Enduring Principles. This religious non-profit would not be a church, but would pursue religious non-profit purposes.

After consideration, the Church’s preference was for Option 2, a new, separate, religious non-profit based upon the Enduring Principles. As part of their response, the Church committed to conduct a market analysis for the value of the Campground and to propose a selling price to the new, separate, religious non-profit.

After completing the market analysis, the Church proposed a selling price of $1,500,000. While there was no deadline for a response to this offer, Apostle Mackay said that it was probably good for up to 5 years.The offer excludes the Spiritual Life Center, the Winter Chapel, and a cottage owned by the Onset congregation and requires protection of the vulnerable among other details.

Initial Option Assessment

In late 2023, with much detailed information to sort out on each Option, the Committee decided to focus its efforts on Option 2. The rationale for this was:

Option 0: No Change to Ownership Structure

  • Not recommended as it doesn’t provide any legal separation from the World Church, and does not meet any of the initial goals as stated above.

Option 1: New Subsidiary of Community of Christ

  • Not recommended as it is not of interest to the World Church

Option 2: New Independent Religious Charity

  • Recommended by the Ad Hoc Committee and supported by World Church

Option 3: Land Cooperative

  • Not recommended as Option 2 appears to better fit our needs. May be an option if Option 2 becomes unworkable upon further examination.

Option 4: Land Condominium

  • Not recommended as it does not meet our goal to maintain community control.

Option 5: Subdivide and sell off pieces/lots (Also called “Fee Simple”)

  • Not recommended as it does not meet our goal to maintain community control, and would likely be prohibitively expensive for many community members.

Much information has been developed by the Committee and spirited discussions within the Committee continue about the details and merits of the options. The Committee will strive to furnish additional details as it completes its work.

The Committee recently engaged outside legal counsel to assist in the analysis of the issues.

Timing for Recommendation to Onset Conference

The Committee intends to complete its work in order to provide a detailed report and recommendation to the Onset Conference on July 27, 2024. Prior to that, the Committee will facilitate multiple communication sessions and provide additional information to stakeholders.

Option Details

Option 0: No Change to Ownership Structure

  • The Community of Christ owns the Campground in the same manner as it owns most other Church assets.
  • Cottage Owners are tenants and have a lease for their lot from the Church.
  • The Church has chosen to delegate its oversight of the Campground to the Onset Conference / Onset Board of Trustees. The Church could change this arrangement at its discretion.
  • Cottage owners pay assessments that ostensibly cover the cost of operating the Campground and maintaining the facilities, though we have fallen behind in this maintenance. Cottage owners do not currently pay any additional lease fee to the Church. The New England Mission Center congregations do not make any contributions to maintain the Campground.

Option 1: New Subsidiary of Community of Christ

  • The entire Campground would be transferred into a new entity, which would be a wholly owned subsidiary of Community of Christ.
  • Cottage owners’ status as tenants would continue, but their lot lease would now be from the new entity.
  • There likely would be little change to the function of the OBOT, although this is at the discretion of the Church.
  • The primary benefit from this arrangement is significant reduction in legal risk to both the Church and the Campground. It also would allow more flexibility of definition of the Campground’s mission. An example of this is Lake Doniphan, MO.

Option 2: New Independent Religious Charity

  • The Church sells the entire Campground to a new, independent, religious non-profit based upon “The Enduring Principles”.
  • A new Board of Trustees would be selected to manage the new entity.
  • Cottage owners’ status as tenants would continue, but their lot lease would now be from the new entity.
  • The primary benefit from this arrangement is that the community would control its own destiny, including maintaining control over who can become residents of the Campground.
  • An example of this is Asbury Grove CMA in South Hamilton, MA.

Option 3: New Land Cooperative

  • The Church sells the entire Campground to a newly formed Land Cooperative. The Cottage Owners, the Spiritual Life Center (NEMC), the Onset Congregation and perhaps others would be members of the cooperative.
  • A new Board of Directors would be elected by the members of the cooperative.
  • The cottage owner's status as tenants would change. While not owning their individual lots, the Cottage Owners would be a partial owner of the entire Campground and would have a ”proprietary lease” for their lot. This status is well-defined and understood under Massachusetts law.
  • Cooperatives have wide latitude in selecting their members and managing their operations. Members would have broad control over the destiny of the cooperative, including maintaining control over who can become residents of the Campground.
  • Many examples of this exist, including New England Resident Owned Communities (NEROC) (mobile home parks).

Option 4: Land Condominium

  • The Church sells the Campground to an entity that converts the Onset Campground into a new land condominium where cottage owners purchase the land under their cottage and hold an undivided interest in the rest of the campground.
  • A new Board of Directors would be elected by the members of the condominium association.
  • The cottage owner's status as tenants would change completely to owning their own lot as well as having an interest in the rest of the Campground. Condominiums are well defined and understood under Massachusetts law.
  • Condominiums have very limited ability to control who may become residents of the Condominium, beyond enforcing standard restrictions and covenants on the property.
  • An example of this is Laurel Park, Northampton, MA

Option 5: Subdivide and sell off pieces/lots (Also called “Fee Simple”)

  • The Church sells the Campground to an entity that subdivides the campground so that it can be sold off in pieces. Cottage owners would purchase the land under their cottage.
  • A new Board of Directors would be elected by the members of the homeowner's association.
  • The cottage owner's status as tenants would change completely to owning their own lot. This is also known as the “fee simple” option, and reflects what we see outside of the campground.
  • Homeowner’s associations are not permitted to exert any control over who may become residents of the neighborhood, beyond enforcing standard restrictions and covenants on the property.
  • For an example, just look outside the Campground’s gates.