Open Space Sausalito (OSS) was created in 2014 in response to the City’s decision to deed its half-share of the Butte Street property to an open space trust. OSS is a California non-profit public benefit corporation (corporation number C3681513) created to raise funds, buy the Butte Street property and to preserve it as open space. OSS is in good standing with the Secretary of State in California, exercises good corporate governance and is compliant with its bylaws and articles of incorporation.
OSS has paid for and received from an expert appraiser an independent appraisal of the market value of the Butte Street property. The appraiser has estimated the market value of the entire property at $450,000. Based on this appraisal OSS has negotiated an Option Purchase Agreement with the private family which owns a half-share of this land. Under this Agreement the purchase price for the family’s half-share is $225,000.
The terms of the Agreement with the private family are as follows. If OSS pays to the family $15,000 by June 6, 2015 then the family will grant to OSS an option to buy the property subject to additional payments. When OSS succeeds in raising $112,500 then an additional progress payment of $15,000 will be paid to the private family. If no later than June 30, 2016 OSS pays to the private family a final payment of $195,000 then title to their share of the property will pass to OSS.
Under the terms of the Agreement, and relying on the Sausalito City Council’s resolution to deed its share of the property to an open space trust, and if OSS succeeds in raising sufficient funds, then OSS reasonably expects to acquire and preserve as open space the entire Butte Street parcel for a purchase price of $225,000 or one-half of its appraised value.
OSS does expect to incur other reasonable but relatively small expenses directly related to the purchase of the Butte Street property. These expenses will be for items like printing costs, legal advice, a preliminary title report and escrow services. The expenses incurred to date (e.g. the cost of the appraisal) have already been covered by donations from members of OSS. No part of your donation will be applied towards a membership fee or the overhead costs associated with the management of OSS.
OSS is a 501(c)(3) non-profit organization so donations to OSS qualify for the charitable tax deduction as documented in this IRS Determination Letter.
It is possible that after buying the purchase option unexpected events could prevent OSS from securing the Butte Street parcel as open space. Possible unexpected events include:
- OSS is not able to raise sufficient money;
- the City Council revokes its commitment to donate its share of the land; or
- while conducting due diligence on the property OSS discovers environmental or other issues that prevent OSS from buying the property.
In the event that OSS fails to complete the purchase of the land then OSS will refund to those who donated at least $250 or who donated before November 4, 2015 all of their donated money except for a pro rata share of that money used to buy the purchase option, the progress payment (if any) and other items related to the purchase effort (e.g. escrow services). If OSS fails to purchase the land, then all money remaining after expenses and refunds have been paid will be donated to the Marin Audubon Society. Any donation amount that is not refunded will remain tax-deductible.