Correspondence Flanders Foundation Regarding the Flanders Mansion Property &
Expression of Interest in a Lease of Flanders Mansion April23, 2012 Honorable Mayor Burnett & City Council Members Re: Request to work with the council and staff on a resolution March 6, 2012 Honorable Mayor and Councilmembers Re: Consent Items G, H & I , July 6, 2009 BRANDT-HAWLEY LAW GROUP Environment/Preservation Mayor Sue McCloud and Members ofthe City Council City of Carmel-by-the-Sea by email: mlaughlin@ci.carmel.ca.us, Subject: Proposed Lease of Flanders Mansion August 8, 2008 To: Mayor McCloud and City Council Re: Meetings Comments. August 5, 2008 September 22, 2005 To: Honorable Mayor Sue McCloud, Council Members & Staff Re: The Final Environmental Impact Report on the Sale of the Flanders Mansion Parcel, Parkland December 10, 2004 Letter to Carmel Planning Commission RE: Uses for Flanders Mansion November 10,2004 To: Honorable Planning Commissioners Re: Sale of Flanders Mansion November 10, 2004 TO: Planning Chair Bill Strid, Planning Commissioners and Staff RE: November 10 Planning Commission Meeting SUBJECT: Sale of Flanders Mansion August 3, 2004 To: Melanie Billig, Flanders Foundation From: Holly Harrison Fiala, Director, Western Office, NATIONAL TRUST for HISTORIC PRESERVATION Re: Letter of support of the Flanders Foundation and efforts to keep the Flanders Mansion in public ownership June 3, 2003 Oral Comments before the Council June 3, 2003 Melanie Billig, President Flanders Foundation Re: Flanders Mansion and Mission Trails Park Preserve May 6, 2003 Oral Comments May 6, 2003, Council Meeting Melanie Billig, President Flanders Foundation Re: Sale of Flanders Mansion December 1, 2000 Letter to The Honorable Fred Keeley, State Assembly Speaker Pro Tern Re: The preservation of the historic Flanders Mansion and the integrity of Mission Trails Park/Preserve December 7, 1999 FLANDERS FOUNDATION Annual Status Report to the City Council on Flanders Foundation Activities Letter to Honorable Mayor and City Council Members 4 1 h QUARTER REPORT, ANNUAL REPORT- EXECUTIVE SUMMARY, FLANDERS FOUNDATION BUSINESS PLAN, ENDOWMENT FUNDING ALTERNATIVE, LETTERS OF SUPPORT & APPENDIX October 29, 1998 Oral Comments October 29, 1998 Council Meeting Honorable Mayor and City Council Melanie Billig, Board of Directors, Flanders Foundation Re: Flanders Foundation May 26, 1998 Letter to Honorable Mayor and City Council Members RE: Flanders Foundation Proposal April23, 2012 Flanders Foundation A California Nonprofrt Public Benefit Corporation P.O. Box 1414 Carmel-by-the-Sea, CA 93921-1414 Telephone and Fax (831) 626-3826 www. flandersfoundation.org . m erg Honorable Mayor Burnett & C'ity Council Members: On behalf of the Flanders Foundation, I would like to congratulate you and wish you all the very best as you come together to tackle the many issues facing Carmel. Your newly elected majority offers the opporttmity to <'-ast fresh light and neN on a v:L-iet-; of issues G!d ::t::d new. In a spirit of cooperation a desire to work toward healing community division over the sale of Flanders Mansion, we would like to work with the council and staff on a resolution that is a "win-win" for an. We realize that the council is facing many more pressing however, to positively resolve Flanders \:vithout further acrimony or cost would be a major We would truly like to explore whether this is possible. We are confident that given the new city dynamic that a fresh approach to this issue is possible and in the best long- term interest of all concerned The foundation continues to explore a variety of solutions and would like to know if the council 1s mterested in partnenng with us on any level. ' Thank you for your kind consideration. Warm regards, JvY Melanie C. President Flanders Foundation Member of Alliance of Artists' Commur.ities March 6, 2012 Re: Consent Items G, H & I Honorable Mayor and Councilmembers:
Flanders Foundation A California Nonprofit Public Benefit Corporation P.O. Box 1414 CA 93921-1414 Telephone and Fax (831) 626-3826 www. flandersfoundation .org info@flandersfoundation .org As you consider voting on the Items on the consent agenda relating to the sale of the Flanders Mansion, a portion of Mission Trails Nature Preserve, I would like to make a few observations on behalf of the Flanders Foundation. During the last twelve the foundation has sought city cooperation to rehabilitate the mansion and the grounds at foundation expense as well as . maintain the property as part of the park without city expense. Also during this time there have been two lawsuits involving the environmental review process. This has cost the city well in excess of $1 million which could have been better spent on parks, infrastructure, city buildings etc. Again, tonight the council will vote to continue to pursue the EIR process and further economic analysis, all of which costs more public money. Then there is the further legal process relating to the Surplus Lands Act and a public vote. This too costs adctitionaJ money. I ow much money does the council really think that it will get for the property? This i a very slow real estate market and the city has not maintained Flanders inside or out; yet, it looks upon it as a cash cow. People who want a property today want it to be in pristine condJ[tion, "move in ready" and at a bargain price. Thus, what you finally realize out of a sale will probably be minimal and the legal costs must be subtracted from the sale amount. One has to ask if council members would spend their personal money like this. We think not. Whatever the city realizes from a sale is simply a small, one time, short-term gain. This is certainly not a quick or long lasting solution to the city's needs. In the past decade, the city has failed to develop any viable, long term revenue sources which would protect the city in an economic downturn or ensure the high level of services residents had been used to receiving. The city has looked only at cutting services and selling assets rather than biting the bullet and looking at taxes like other communities. The sale that you all are determined to realize will also irreparably damage this park and for so little gain. All who use it in the future and witness the high walls or fences which will eviscerate the center of the park will wonder who was responsible for this travesty and where was their vision? This will be your legacy to future generations. You will also have set a dangerous Member of Alliance of Artists' Communities
Letter re Consent Items G, H & I Page2 precedent to further carve up the park in times of need or for special projects. Will the native plant garden be next? Finally, you will have missed a great opportunity to develop a program of ecotourism for the village to compliment downtown which could be a rea1 revenue enhancement for the city. In closing, we have tried to work with the city over the years; yet, it has remained steadfast in its desire to sell regardless of opportunities to lease. What a pity. Together we could have accomplished something truly unique for our community. Sincerely, Melanie C. Bil President -of the Flanders _Foundation
BRANDT-HAWLEY LAW GROVP Mayor Sue McCloud Envlton ment!Ptesetvation Chauvet House PO Box 1659 Glen Ellen, Cal!fotnla 95442 Confidential Settlement Communication July 6, 2009 and Members of the City Council City of Carmel-by-the-Sea by email: mlaughlin@ci.carmeLca.us, Subject: Proposed Lease of Flanders Mansion Dear Honorable Mayor McCloud and Councilmembers: RE .. -- LL. ' _;., JUL- 6 2009 CITY OF
I Assistants Sata Hews Jeanie Stapleton This year the Flanders Foundation celebrates its 11th year as an organization dedicated to the protection, rehabilitation, and preservation of the beautiful Mission Trails Nature Preserve/Park and the Flanders Mansion, one of Carmel's only two properties listed on the National Register of Historic Places. The Foundation wants to work with the City not only to restore the Flanders Mansion Property, but also Mission Trails Nature Preserve/Park. Both of these major public assets are in need of public attention. I am authorized to offer the following as a starting point for negotiation, recognizing that important details will require further discussion and mutual agreement. The Western Office of the National Trust has repeatedly offered to assist a partnership between the City and the Flanders Foundation for use of Flanders, including working to resolve all neighborhood concerns. In this context, the Foundation proposes the following as a basis for discussion to resolve the pending legal dispute about the future of Flanders: 1. Lease - The Foundation proposes to seek substantial funding for the restoration of Flanders for a low-impact public benefit use. To do so, it asks for the same benefits and privileges as other non-profits that have worked with the City, such as Carmel Heritage at Flanders and Carmel Heritage at the First 707.938.3908 <- 707.576.0198 <' f.tx 707.576.0175 "'susanbh@ptesenta'tionlawyets.com Letter to City Council July 6, 2009 Pa e2 Murphy House. It proposes to lease Flanders from the City for a nominal sum of $1 per year for three terms of up to five years each. With the economy being in a very serious down cycle, obtaining grants or donations will be difficult for some time. We need to consider ample time for funding and restoration efforts as a practical matter. During the lease term(s), the Foundation proposes to open the mansion to the public up to 8-12 times per year. The grounds would also be open and available as they are today. ADA accessibility can be achieved as per the recommendations of Architectural Resources Group letter July 27, 1998. 2. Funding -While the Foundation actively seeks grants and donations to restore the house and gardens and maintain and enhance the park, it asks the City to commit to active support and cooperation. As a team, much can be achieved. 3. Maintenance - The Foundation does not know the City's maintenance costs and needs to have an understanding of the scope and amount as part of this negotiation. It is willing to engage in dialogue with the City as part of this lease agreement to share in the reasonable maintenance costs. 4. Proposed Conditions for Use - No amplified music or bands - Parking restrictions * All visitors except handicapped will walk the trails or will be shuttled by van to the property * No parking on Hatton Road allowed - Hours limited * Park - Same as now * House- 10 a.m. to 10 p.m Thursday-Monday when available Please let me know if City representatives would like to meet to discuss this proposal. The Foundation members believe that this issue can resolve amicably. Thank you. 5<\ Sr/s:n bdt-Hawl ... Flanders Foundation A Callfomla NonprOfit Put>IIC a.neflt Corporlltlon P.O. Sax 1414 CA Telilpt1one net Fu (1!31) sa.saze To: M.yor McCloud and City Council Re: Meetins Comments. August 5, 2008 Honorable Mayor and City Council Members, www.fland..-faundetlon .erg lnfoOienderab.mdatlon.org Auaust 1. 20os On Detialf of Out Flandert Foundation Board of Diroetors aDd the Priondl of' Fianders. rep the (lityis rospome to our sugr:stion.s that a town ball mectina or a meetift8 'Wilh 1ho Mayor, Staff and Foundation representatives be held to diseun the future UN and disposition of &be FliR4m M6fti1E)n, We rwJize that the city mutt felftply with ludic O'Farrell's rulin1. however, we that stnce no action on me ruHna had taken place sinc::e it Will iaued, that it w<Nld the co\iif and iiWiY otlieti if our Pouridition ana representatives of the city could have & dialogue aod hopefuJJy to an understandina or rcaoiution of some of our differins positions. We must ay that we wera swrpmed by the oity's response to thit propotll and particularly the blamifta of our Foundation for past Utiption. We would lite to respectf.\J11y remiad the eouneil thac you t!lectt.d to 1iftOtc! Statf td.VIce aM the taw ti welJ as miii)i memtim oftlte public wbo entreated you not to follow the pUh you bad chosen in the State Jaw and City zonina. It wu oouncli's intapaetation and action tbat precijJitaled the lep.laction. 0\U' concern remains that unless there ia a recopition and acceptance by 1b8 Council of how an4 why the juep ntled as M 4ie and a 4esit'e 10 work toptbcr more c:ooperativcly chit we may find ounelvos in the same spor a year or so frcmlnaw that we are today. This woutd UUiy tJe a uqedy for lit As aiways, we remain open to discuuina the future of the park and its mUlSion with you or your Nff at an)' time. - >
Memtr of AHianoe of Al'f;.f' CommunlfiH Flanders Foundation A California Nonprofit Public Benefit Corporation P.O. Box 1414 Carmel-by-the-Sea, CA 93921-1414 Telephone and Fax (831) 626-3826 www. flandersfoundation. org info@flandersfoundation .org To: Honorable Mayor Sue McCloud, Council Members & Staff September 22, 2005 Re: The Final Environmental Impact Report ~ on the Sale of the Flanders Mansion Parcel, parkland t/ Dear Mayor, Council Members and Staff : I am Roberta Miller and I have been asked by Melanie Billig, our president to read her letter on behalf of the Flanders Foundation into the record on this agenda item, the FEIR and proposed sale of parkland, the Flanders Mansion Parcel. We would like to say preliminarily that we, as well as many others, cannot understand why the city is rushing this entire EIR process. Surely something of this importance to the community and because of its cost should not be so unbelievably hurried. The fmal document came out on Friday, August 12th. The Historic Resource Board was to meet on Monday August 15th to discuss it, a 348 page document, and make recommendations. Luckily, its meeting was postponed until the next day. Then the Planning Commission was to hear it August 17th. How has the public. arid Commissions been expected to properly review and digest this fmal material? We are grateful for the additional time that the Planning Commission took and also allowed the public. We had hoped that you would have done the same. We would also register our deep concern that the Forest and Beach Commission was removed from the public review process on the FEIR, particularly since this discussion involves the sale of parkland and that they were asked to comment on the DEIR. This being said, we will address the FEIR Issues: Member of Alliance of Artists' Communities I I ADEQUACY OF THE EIR: 1. Change in objectives (Page 2-1, FEIR), and a new alternative #6 added. One must question the change in project objectives and whether these changes if spelled out in the DEIR would have elicited different responses from public agencies and individuals reviewing and commenting on the project. How and why were the objectives changed should be clarified. 2. No financial information to document why the sale of parkland and historic resources is the best alternative for revenue generation. This has not been adequately explained and neither have other potential sources of revenues been adequately reviewed and discussed. The EIR simply states that the city needs money for capital projects (Pl-1, 3-7). We and others have formally requested written information be made available to the public for review and discussion as to how the monies from sale would be spent, what projects are to be funded from the sale, what would be the priorities and how much each will cost. Telling the public that "information is available by review of the city maintained records at city hall " does not comply with CEQA. (FEIR P4-4, Paragraph 2) The EIR claims that it is not the role of this EIR to analyze revenue sources. (P6-4). Then how is one to decide if the proposed sale is supportable and the only option. Since fmances are the major reason given in this project, the city must provide the evidence to support its position. According to the EIR (P6-4) other revenue sources have been "explored" but nothing more is said about them. What happened? An increase in the TOT is mentioned as having been "explored." This should be clarified further (P6-4). The council's own Task Force On Revenue Enhancements recommended an increase in the TOT. The council rejected it. A citizen initiative to increase the TOT from 10-12% was actively opposed by the city council. It would have raised annually $700.,000 to fund the beach, parks, library, Forest Theatre, Flanders, Capital improvements, the very things the collllcil says the sale of Flanders will cover. Not only did they oppose the initiative they said that "the city didn't need the money" ! 3. Protection of Historic Resource-Flanders Mansion. We fmd that the proposed conditions of sale will not adequately protect the Mansion. I I No effective and reliable means of monitoring or enforcing the proposed conditions of sale are provided for. We suggest a third party protection mechanism via a Conservation Easement held by an organization such as the National Trust or another like entity. The city is very short of staff to do this work. Additionally, with time, and other priorities and changes in personnel there is a great concern that monitoring and enforcement will not be actively pursued in perpetuity. There is no Preservation Plan to protect the resource. Incorrectly the Staff and the FEIR say that such a plan should be done later. (FEIR P4- 19 thru P 4-24 & Staff Report P6-7). We disagree and believe that CEQA says that analysis and mitigation measures of environmental impacts cannot be deferred i.e. must be adopted simultaneously with or prior to project approval. The document should have analyzed the impacts of foreseeable uses of Flanders Mansion following sale now and concluded a thorough analysis of those impacts of feasible mitigation's to minimize them. This was requested in our attorney's comments on the DEIR and at the August 17 meeting in our comments. 4. Disagreement Between Legal Counsel in FEIR. Disagreement among legal counsel regarding disposition of the parcel in FEIR as to whether it is parkland or not is a major change in direction from the Draft ElR. Only one legal opinion is presented for review in the FEIR and in today's staff report, and that is the one expressed by the consulting attorney. The city attorney has expressed a different point of view. The public should know why. The Planning Commission and the public have requested and should be priyy to both points of view. This is important for public information and understanding of the sale process and the public's participation in that process. The City Attorney in the past has stated and so advised the council and planning staff that the city must abide by state statutes regarding the sale of parkland. Even the city in its January, 2005 newsletter stated that there would be an election in the near future to decide the fate of Flanders ( see attachment Property Disposition). After telling the public this in the midst of a citizen initiative on a hotel tax increase which would fmance the very things the sale of Flanders would cover plus .provide money for Flanders upgrades, the city is now trying to avoid such an election. The consulting attorney and the city claim that Flanders and surrounding land is not parkland, regardless of zoning, and therefore the sale can follow the Exhibit D process in the September 7th, 2005 Staff report. Our attorneys have clearly supported as do we, the interpretation of the city attorney. See Shute Mihaly and Weinberger letter dated May 13, 2005 in the attachments. We also believe that before Flanders can be sold or leased to a private party it must be declared as "surplus; and must first be offered for sale or lease according to the state code, to park/open space agencies, school districts and affordable housing providers etc. (Governments Code 54222). 5. The Preservation Plan must: not be optional and cannot be deferred/ postponed; not just simply be a photo documentary; and spell out in detailed specificity how this resource (Mansion) is to be protected, rehabilitated and maintained in perpetuity in specific detail. Environmental assessments and mitigation's are needed now and required now by CEQA for proper decision making and for a feeling of confidence in proper review as the rehabilitation of the Mansion progresses and interfaces with the park. 6. All proposed mitigation's involving the access, views, biological resources which are deferred are not adequate and not consistent with the intent or letter of CEQA. I I PROJECT ALTERNATIVES-SUPPORT #2 ALTERNATIVE The Flanders Foundation since its inception has opposed the sale of the Mansion and the parkland that it sits on and is surrounded by. 1. We support alternative #2 because it meets our Foundation's mission and goals. Flanders and adjacent land will remain in public ownership and can be leased to a non-profit organization or a residential use a via life estate agreement or a similar mechanism. 2. Alternative #2, we agree with the EIR consultant and Planning Commission that it is environmentally superior and historically responsive to the Mansion and will ensure/provide for rehabilitation. It also is consistent with the city's General Plan, LCP, Zoning, Mission Trails Master Plan, and traditional parkland usage. 3. Strong and tightly written lease conditions could meet all or most of the environmental concerns and the fmancial objectives of the city by removing rehabilitation, maintenance and operation cost to the city and producing over time some income. 4. Over the last 5 years our foundation has constantly offered to raise money from grants and donations to rehabilitate Flanders and to maintain and operate it at NO COST to the city. *The National Trust came to Carmel in March, 2004 and explained many of the ways that this could be accomplished. (The Trust has sent letters to the city in this regard see attachment.) *Our organization developed a business plan which demonstrated how we could accomplish this. (December 7, 1999). *The city has rejected all of our offers as well as those of private parties and others. *Also, in the last 5 years the city has not attempted to take advantage of State, Federal or local grant opportunities to protect or maintain this asset, and has instead allowed this asset to deteriorate in order to bolster its argument that it, the city, had no money and that the Mansion was too costly to repair. Our foundation also over the last 6 years has offered to raise money, but has been rebuffed. 5. The city has a history of working very cooperatively with non-profits in very successful arrangements and we would like to join that list of groups: Sunset Cultural Center, Inc., Carmel Heritage, the Carmel Foundation, and Forest Theater Foundation. 6. Lastly, but very significantly this property must remain in public ownership to protect the park and maintain city control should any natural or accidental disaster destroy the Mansion. A private property owner would be able to create entirely new buildings which could potentially cause serious negative environmental impacts on the park. ALTERNATIVES AND CONSISTENCY WITH THE GENERAL PLAN ZONING-INTRODUCTORY SUMMARY The city is claiming that Flanders and the surrounding property is NOT parkland and that is false. Flanders is currently zoned P2 and was previously zoned P1 & P2-A, all parkland. The reason for this assertion by the city is that if the city prevails in this interpretation then it does not have to abide by State Statues requiring public hearings and an election. (Government Codes 38440-38462 as well as 54222). The city claims that rather than parkland, Flanders has always been a residential use therefore no rezoning is required. This we contend is also not correct. Flanders was zoned R -1 at the time of purchase and then rezoned P 1 then P2A parkland, all parkland with governmental and non-profit uses, caretakers of city property and home for city employees. The latter were also generally allowed as part of governmental use and designation co-existing with public non-profit uses; such as the: Carmel Art Institute, Carmel Preservation Foundation, Carmel Heritage, the Lester Rowntree Native Plan Garden Committee and the Alliance on Aging Benefit. Clearly the Flanders parcel is parkland and has been used passively and actively as such. Detailed responses to Exhibit A of Mr. Conners/Staffreport September 7, 2005. 1. Zoning Issues. We b ~ l i e v e that the proposed project, the sale of the Flanders and adjacent surrounding parkland (the parcel) are not consistent with the General Plan!LCP, zoning and Mission Trails Master Plan. (see attachments Parkland Issues) It is apparent from the changes to the DEIR reflected in the FEIR as well as the "Difference of Opinion between Counsel" that the city simply wants to circumvent the State Statues on the sale of parkland (Government Code 38440-38462 &54222) by claiming that the parcel (Flanders Mansion and adjacent property) may be zoned parkland and described in the above mentioned documents as parkland, but is not parkland, because it has not been "used" as such, i.e. its always been residential. To the contrary the property has been zoned as parkland, used as parkland and both the DEIR & FEIR consistently call the parcel parkland. Primary Uses for Flanders Cultural and Natural History Museum with 9 potential AOistw In- Beident Program for a ghotographer or musician {associated with Monterey Symphony. Bach Festivat. etc.) Permanent City art collection as well as rotating exhibits of local artists Art lectures, indoors and out Small art appreciation and painting classes on the lawn for adutts and children Local art history exhibits, etc. Natural History Museum - day Use Promote Cannel area understanding of local natural history and nature preserve Showcase and educational facility The unique environmental character. of Carmel Bay and surrounding area Birds, animals and plant life Nature & historical walks & lectures Exhibits & small lectures by local groups such as California Native Plant Society, Audubon, CSUMB & MPC and the Flanders Foundation. Coordinate with local schools esp. Carmel River School for educational purposes such as: Noise Nature and historic walks and talks about the Mission Trail Nature Preserve. Cultural activities Control number of guests No amplified sound equipment or music. Minimum vehicles Parking Management this as a small scale revenue source. Other Activities - day and some occasional evening use Small chamber concerts, poetry readings, receptions, book reviews, etc. Living Room - maximum 30 people seated; 50 standing No amplified music Walk or shuttle FUNDING FOB RESTORATION We have ctosely partnered with the National Trust for Historic Preservation, received 2 grants and co-hosted a preservation conference in Carmel . The conference topic was Flanders, an ideal candidate for adaptive use. The Trust referenced several grand homes in California and across the country which are currently very successful community ventures in adaptive use and offered to assist the Flanders Foundation in helping to resolve the county neighbors concerns and in obtaining restoration funds. Work would be accomplished with grant funds, both public and private Individual gifts In-kind work and material donations December 10, 2004 Flanders Foundation A California Nonprofit Public Benefit Corporation P.O. Box 1414 Carmel-by-the-Sea, CA 93921 -1414 Telephone and Fax (831) 626-3826 www. flandersfoundation .org info@flandersfoundation .org TO: Carmel Planning Commission RE: Uses for Flanders Mansion Honorable Chair Strid and Commissioners: Thank you for the recent friendly and cooperative scoping meeting on the E.I.R. for the possible sale of the Flanders Property. At that meeting you asked the Flanders Foundation Board to present our proposed uses to give you a clear idea of our plans. We happily agreed. The Flanders Foundation has proposed to establish a small cultural/natural history museum at Flanders with a possible artist-in-residence program. All events will be small and minimal in number. All uses are and will be consistent with zoning and the General and carefully tailored to avoid nnpacts on the nature preserve, neighbors and mansion. We will pleased to share more detailed information as the environmental review process progresses and, of course, I welcome the opportunity to meet with you ind,ividually over coffee or take you on a guided walk in Mission Trail Nan1re Preser-Ve/Park and discuss informally our ideas. Thank you for your interest. Warrp. Regards, Flanders :Foundatlon A Csfitomia Honprd'Jt PubliC Benefit Corporation P.O. 8oJc 1414 C8nnefob)'olhe-Sea. CA "93921-1414 .. www.fiandelsfoundation.org info@flendersfoundation.org November l o. 2004 Tn: Honorable Planning Commissioners: R.e: Sale of Flanders Mansion We hope that you all had the opportunity 10 reacUbe information tbat we submitted for your packets. Our organization and all of the "Fliends ofFlander$. have worbd diligently since >OUr formation to aa:omplish the rotlowina: (a) Actiieve our no,..profit status andaise funds: (b)Expand .our educatiOnal and iJJformational.proJQI1ll. particular'ly our bi- monthly nature/historical walks through Mission Trails NatUre Preserve up to FJanders and the Native Plant Gar-den. We averaged about 20 guests -and severa( this year have been up to 30 and one at 52. We wish all of you wmatd join us individually of course! There is incredible interest ill the _preserve and to tout flanden. {c) Our business ptan.delleJoped by. professional how flanders can be renovated. maintainedand -Qpel'lted 'at no cestw ttie :dry. We pnpose two or three sma1t rettcats or seminars. The Gcpcral Plan speaks to the need for this (pg 4-6} and hOw it wiJJ assist the economic base (pg 4-"14). We even worked with tbe Lands End Company in shooting their catalogue at Flanders. These an: bOth significant financial-opportunities to offset expenses. {e) We have closc1y,partnered withtbe Niltionaf T-011t, received two grants, and co-hosted a here this year. The topic was bow flanders .is an out:Shlnding for ;adaptive, use. The T.rust .sCm-at hOmes in n:sidential wbicb are very successful c:ommuMy ventures to assist the FlanderS .foundation. (e) W.e have .enlisted oflocaJ contractors. (f) We have worked to achieve iongterinteases which hav' faiJed due to the city's stance on sate (g) We have been meeting with other non-profits bpth eovtfonmental and preservat1on to partner ili-open .. ace.preHrvition anCl renovation. greatest impediment to fuadraisiJJJ 1Jtbe'Council'a talk'Of'sale. . {h) :Ourjp8Js4'Gr FJandert aCUhural-and NaturJ) Museum are consistenr wjth the GeneJ:al P*an an4 Zoniqg (P.ar't w1th f iCilities wbieh allows for noo-pmfit use and museums. believe and mteipretive prognuM are and wi11.be consistent with the intent or P:fan. Our strong plea to you is ot to i ....... tpae:e.and tri$toric'Usds-for a sltOnterm pin ..
pr,operty (pg 78}. l 'l ' 841 What this community needs is good long term planning both in land use and finances, Once you set the precedent of selling open space and park land you have put jn something that wiJI be bard to stop tbe next time the tounciJ needs money. Carmel cannot Rmain Cannel without thoughtfiiJ plannjJIS and a dose of Vision and Creativity. There needs to be a solid understanding of what 'has tbi5 village unique ftnd wbat .is required to keep it that way. Special experien<=es and places are a great part of Cannel's cbarms. .FlaRders is a significant city uset and needs to mnain in the public domain, preserwd and cberished, Thank you for your kind attention.
Melamcc . Billig. President . - - . (! 842 I I i ! i I I i I .1 Flanders Foundation A California Nonprofit Public Benefit Corporation P.O. Box 1414 Carmel-by-the-Sea, CA 93921-1414 Telephone and Fax (831) 626-3826 www. flandersfoundation .org info@flandersfoundation .org TO: Planning Chair Bill Strid, Planning Commissioners and Staff RE: November 10 Planning Commission Meeting SUBJECT: Sale of Flanders Mansion Dear Chair Strid, Commissioners and Staff, It has come to our attention that on November 10 the Planning Commission will be discussing the sale of city assets, namely the Flanders Mansion. In an effort to update and educate you on the efforts of the Flanders Foundation to save this historic building and its surrounding property, we submit the information below. Hopefully you will find it compelling and informative and give you reason to vote not to proceed with the disposition of this important city resource. The question we all should ask ourselves is: "After the sale, what then?" When the money is spent on one-time expenditures or put into the General Fund, will anyone ever know or remember what it went for. When the city again needs money, what then? Sell another property? No, the answer to the city's budgetary problems is to be proactive, not reactive. The City council must identify and support several long-term, on-going revenue sources regardless of special interests. Sale of city property is not the answer. Once gone, it is lost forever. 1. When the Flanders property was purchased in 1972 to become part of the Mission Trail Park, the city always intended to, sell the house. Not so! The City Administrator "floated" the idea to the Council which then rejected it and shortly thereafter invested over $100,000 in improvements. Two past council members, past city forester, staff and city archives back up these facts. 2. Committees and task forces have looked at it without a result. That's true. However the county neighbors have stopped every proposal. Our Foundation's proposal is low impact for the neighborhood and park - totally in keeping with the educational and environmental goals of the Member of Alliance of Artists' Communities nature preserve. We would like to establish a small scale cultural and national history museum which is totally consistent with city zoning and the General Plan. The National Trust will help us eliminate potential concerns by developing conditions to protect the neighbors and the park. The fact that the county neighbors are in the city's sphere of influence and might in the future be annexed to Carmet has nothing to do with the creation of a museum. The Sunset Center, the Cherry Foundation gallery I theater, the Golden Bough Theater, the Carmel Youth Center are all in residential neighborhoods and co-exist pleasantly with the neighbors. 3. Background: In 1998-99 the then city council gave the Foundation 1 year to obtain its non-profit status, develop a business plan and begin to raise funds. In record time our organization not only obtained its 501 (c) (3) status from the state and federal government but also completed its professional business plan and began fundraising. Then Mayor Ken White asked us not to do a major fund raising program because the city did not want our organization competing for funds with Sunset Center. We agreed to stay in the background, but unfortunately never again did we have the opportunity to gain support for our fund raising efforts due to the city's fear of competition with the Sunset fund raisers. We did what we were asked to do - yet we were ultimately denied in spite of our cooperation and our work, especially in the last 5 years as the cost of Sunset doubled and more fund raising and grants were needed to offset the debt incurred. It is very obvious to anyone who has attended the city's budget hearings that the Flanders Mansion is being looked at as the cash cow to lower that debt. Today Sunset's annual cost to the city' s taxpayers is 1.6 million dollars. Our Foundation would like to create a jewellike Filoli or Dunsmuir or the Gamble House. We could do this at no expense to the taxpayers .. 4. The Foundation has no plan for Flanders. Incorrect. Our professional business plan was developed in 1999 by an independent consultant and funded via a grant from the National Trust and donations to our non- profit organization. Our plan is to create a cultural and natural history museum to inform and educate residents and visitors about Carmel's rich heritage and environmental setting . . 5. The sale of Flanders would entail a sale of part of Mission Trail Park Preserve because Flanders is entirely within the park. Although the adjoining Native Plant Garden/ Arboretum is not now for sale how long will it last if buyers of Flanders, paying 5.2 million dollars, find themselves with a public garden abutting their garage and volunteer gardeners and the public bustling about? There will then be tremendous pressure to move the native plant garden and to subdivide that land into multiple housing sites. 6. The house will be compromised because of loss of its historic setting, the creation of walls, fences, landscaping and removal from the original property that it has belonged to since 1924. 7. The city has been presented with several offers to do long term leases for the Mansion but every time the offers have failed to meet with fruition due to the city's adverse attitude. Within the last approximate 18 months the latest lease offer was stopped by the mayor because of the city's strong intent to sell the property. 8. Flanders is falling down. False. Like any property built in 1925, the heating, electrical, plumbing and roof need upgrading. This will cost about $800,000, however our Foundation has offered consistently to raise the money to update it through public and private grants, donations, and donations in-kind. The National Trust for Historic Preservation has also shown us how this is possible. The past 6 years the city has talked of sale and that frightens off donors. Thus the house just sits. We have to ask ourselves, if the house is in such bad shape how then can the city put a price tag of $5.2 million on it? The city uses the ADA upgrades as a major hurdle. It simply is not a major obstacle. There is room for an elevator in the breakfast nook if access to the second floor is deemed necessary. On the first floor, inexpensive low- rise ramps can make that entire area accessible. All of the improvements are also subject to the States Alternate Building Code for historic structures which does not require improvements to be held to the criteria of current residential building. 9. The city states that it has no plans to use or renovate the Mansion which is truly sad. We think it is very shortsighted of the city to not work with the Flanders Foundation to produce a real gem for Carmel. The city has been farsighted enough to support the on-going efforts of Carmel Heritage to operate the First Murphy at a mere $1.00 per year and even picks up the tab for maintenance of the property. Tor House is another example of how citizens, with the city of Carmel's support, have made the property an absolutely outstanding treasure, Why not Flanders! Finally, since year 2000 the city council under our current leadership has never given the Flanders Foundation a chance to work with the city to accomplish its goals and business plan. As the records will show, our many requests for cooperation, made in a collaborative way at city council meetings, have been met with total silence. Our Foundation remains ever willing to work with the city in a truly harmonious way to develop what many in Carmel believe would be a truly historical, environmental and educational facility at Flanders. Please call if any questions. Warmest Regards, \ WESTERN OFFICE NATIONAL TRUST ;:,, HISTORIC PRESERVATION August 3, 2004 Ms. Melanie Billig Flanders Foundation P.O. Box 1414 Carmel-by-the-Sea, CA 93921 Dear Melanie: On behalf of the National Trust for Historic Preservation, I am writing in support of the Flanders Foundation and its efforts to keep the Flanders Mansion in public ownership. As one of only two Carmel properties listed in the National Register of Historic Places, the Flanders Mansion is a community asset and should be accessible to all. There is significant public support for continued public ownership and public use of the Flanders Mansion, and ample success stories that demonstrate how this can be accomplished. The National Trust is a private, nonprofit membership organization dedicated to protecting the irreplaceable. Recipient of the National Humanities Medal, the Trust provides leadership, education and advocacy to save America's diverse historic places and revitalize communities. Its Washington, DC headquarters staff, six regional offices and 21 historic sites work with the Trust's 200,000 members and thousands of local community groups in all 50 states, including over 20,000 members in California alone. In 1999, the National Trust awarded a small grant to the Flanders Foundation to prepare a Business Plan for operation and marketing of the Flanders Mansion for public use. The plan provides valuable information regarding key hurdles to opening the building to the public - such as needed repairs and the concerns of neighbors- and identifies opportunities for reuse. At a well-attended community forum sponsored by the Flanders Foundation in February, I spoke about how these challenges have been overcome at similar historic properties across the country. Restrictions on public use are essential for historic properties like Flanders to peacefully coexist with their private neighbors. Residents living adjacent to the Flanders property have strong reservations about increased traffic, parking shortages, and excessive noise associated with public uses. The Business Plan proposes to minimize disruption by shuttling people to group activities and prohibiting amplified music. This approach has been successful at Shangri La, the Islamic-style residence of Doris Duke outside Honolulu, which opened to the public in November 2002. Of course, another hurdle to public use of the Flanders Mansion is money. In 1998, the Flanders Foundation retained the Architectural Resources Group in San Francisco to prepare a three-phase Protecting the Irreplaceable 8 CA LI FORN I A S T REE T SU I TE 400 S AN FRANCISCO , CA 94 II I -48 28 4I5 . 956.0610 FAX: 4 1 5 . 9 5 6.0837 .W RO@N T HP. ORG Serving: AK, A,Z, CA, HI, ID NV, OR, WA & PACIFIC ISLAJV"D TERRITORIES 1 NATIONAL OFF I CE 1 785 MASSACHUSETT S A v ENUE, N W WASHINGT ON, DC 200 36 WWW . NAT! 0 N ALTR UST . O R G preservation plan to bring the Mansion back into use, including a $55,000 estimate for Phase I repairs alone. Funds will also need to be raised for operation and maintenance of the Flanders Mansion. By virtue of its listing in the National Register, the Flanders Mansion is eligible for federal Save America's Treasures grants of up to $1 million, as well as funding through the newly- established California Historical & Cultural Endowment, created to administer the Proposition 40 funds dedicated to preserving historic and cultural resources. Approximately $128 million will be available to government entities and non-profit organizations through a competitive grant application process starting in 2005. Other historic properties have entered into innovative partnerships to defray the costs of maintenance and operation, such as the Corbin and Moore-Turner Heritage Garden in Spokane Washington, which is overseen by the Spokane Parks and Recreation Department and the non-profit Heritage Gardens Trust, established in January 2002 to raise funds for restoration and endowment for the gardens. Another successful partnership is the 205-acre Ardenwood Historic Farm and Preserve in Fremont, California, which is owned by the City of Fremont and operated by the East Bay Regional Parks District under a 20-year contractual agreement. The Parks District operates the farm under the aegis of an elected board with the support of property taxes, which provides the farm's primary source of revenue. The Parks District maintains all of the buildings and facilities with the exception of the Patterson House, a historic home owned and fully operated by the city. The Flanders property is located within the Mission Trail Nature Preserve, providing similar opportunities for environmental education programming and linking the property to the regional park system. Throughout its history the "village in the forest by the sea," as Carmel is known, has had a strong tradition of preserving and enhancing the natural environment and open space. The National Trust hopes this tradition can be upheld by keeping the Flanders Mansion in public hands. Before the property's tremendous potential for public use can be realized, the specter of a possible sale by the City must be removed. It would be short-sighted to sacrifice public benefit and access, reuse potential, and community history to short- term revenue goals. Sincerely, 4 i .j I '] !' / ' \ \ .. , J(J _.X /A <Jd Holly Harrison Fiala Director Western Office 2 Flanders Foundation A California Nonprofit Public Benefit Corporation P.O. Box 1414 Carmel-by-the-Sea, CA 93921 -1414 Telephone and Fax (831) 626-3826 www .flandersfoundation.org info@flandersfoundation .org Oral Comments before the Council June 3, 2003 Melanie Billig, President Flanders Foundation We can remember when this council pledged 3 years ago to bring fiscal responsibility and long range financial planning to the city' s budget process. Tonight with the vote on this item to sell part of the Mission Trails Park Preserve and the Flanders Mansion, we. are afraid that this will be the first step in a series of sales of city assets in order to deal with the very poor financial planning of the city. Problem areas: 1. 3-year budget 2. Project status report: Needs to set priorities and a real work program, not a wish list without real numbers or analysis. Must be a real planning tool. 3. CIP: being gutted to balance the operating budget, staff is recommending the Flanders sale to replenish the CIP 4. No new revenues developed put in place to reduce budget's shortfall Also had 3 years to come up with new revenues Question: Where does the money come from to ultimately balance the budget? Answer: Seems to only be to sell assets That's no way to run a city; these are one shot stop gaps. We strongly believe community assets should not be sold even in difficult times. We are known worldwide and we should not chip away at those things that make us special. Think creatively on how to use more effectively and efficiently and enjoy all of our community assets. Flanders: rather than sell actively pursue: 1. Life estate or long-term lease agreement to a family 2. A Carmel cultural and natural history museum on weekend day and week rented as an executive retreat during the week to finance all maintenance and operation. 3. Encourage the city to work with our community and others to raise money to refurbish and restore the house and gardens. Member of A/fiance of Arli$tS' Communities We hope this council appreciates the value of this park' s integrity and the mansion. There are many that do now and many will in the future. Flanders Foundation A Catifomia Nonprofit Public Benefit Corporation P.O. Box 1414 Carmel-by-the-Sea, CA 93921-1414 Telephone and Fax {831) 626-3826 www. flandersfoundation.org info@flandersfoundation.org Oral Comments May 6, 2003, Council Meeting I am Melanie Billig, President of Flanders Foundation and would like to make some comments and observations. In 1972, the council had the tremendous vision to purchase the Flanders property and joined it with the Doolittle property to create our largest and most beautiful open space. Please don' t destroy their vision. Count yourselves as creators. True leadership involves vision and positive action. We hope that this council will act in the creative tradition of previous councils and recognize the immeasurable value of Carmel' s history in its parks, open spaces and historic assets, especially this prized National Register property- the Flanders Estate. It is our strong belief that if you sell Flanders, the native plant garden will not be able to remain as it is and then will go to the Martin Road lots. There will be such tremendous pressure to sell these very valuable properties too. A domino effect will result. You will have also set a very dangerous precedent that other councils can point to justify their desire to sell assets. When our assets are gone, what will Carmel be like? Instead of sale our foundation would like to work with the city to create a cultural and natural history museum to be open to the public on selected weekends. During the week, the property could act as a mini-executive retreat with small groups shuttled from downtown to the mansion. The retreats would pay for the maintenance and operation of the property and park. Such a center would also be very helpful to our business community. We will work with you energetically to raise the monies to move such a project forward. We hope that you will decide to work with our foundation and the many citizens who support the preservation of our community's treasured assets, our parks, open space and historic property. Thank you. Member of Alliance of Artists' Communities Board of Directors Melanie Billig, President Paul Eastman Alice Englander, Treasurer William Englander Diane Hydorn, Vice President Pauline Stanley Lou Ungaretti Yoko Whitaker Laurel Whorf Advisory Board Margery Adams Carol Bell Maggie Downer Paul Eid Hugo Ferlito Diane Flanders Jan Hardy Glenn Leidig Kati Lewis Mary Anne Teed Lloyd Mary Ann Matthews Enid Sales Cynthia Schelcher Joyce Stevens December 1 , 2000 Flanders Foundation A California Nonprofit Public Benefit Corporation P.O. Box 1414 Carmel-by-the-Sea, CA 93921-1414 Telephone and Fax (831) 626-3826 Web Page: http://www.englander.com/flanders Email : flanders@englander.com To: The Honorable Fred Keeley, State Assembly Speaker Pro Tern Re: The preservation of the historic Flanders Mansion and the integrity of Mission Trails Park/Preserve Dear Assemblyman Keeley, The Flanders Foundation is an organization whose mission is to preserve, restore and maintain the Flanders Mansion and the Mission Trails Preserve which surrounds it. The Lester Rowntree Native Plant Garden/Arboretum is also of significant interest, being tied to the founders of the California Native Plant Society. The garden is located adjacent to Flanders. Its long-term viability is endangered by any sale of the Mansion. We have worked very hard over the last two years to maintain these very valuable historic and open space resources for future generations. Our efforts are documented on our Web site at www.englander.com/flanders. At this time, we are very concerned that the city will either sell the property (indications have leaned in that direction) or tie it up in a lease which will preclude public use and enjoyment now and in the future. The city's track record with regard to historic preservation has been a major cause of concern by a sizeable number of residents. The Foundation has aptly demonstrated how Flanders can be not only an historic but also a monetary asset. We hired a consultant and another volunteered services to formulate our business plan, which was presented to the City Council in December, 1999. That effort was rejected by the City Council on a 3-to-2 vote, with Barbara Livingston and Marshal Hydorn supporting it strongly. Some people at City Hall were concerned that the city's budget would be below estimates and thus wanted to sell Flanders to cover this shortfall and assist in funding the renovation of Sunset Center. Since last December, two things have transpired. The city's finances are now "flush". The Council has proceeded forward with disposition and has brought in a realtor who openly has said he supports the sale of the property. Member of Alliance of Artists' Communities . - Flanders Foundation The Honorable Fred Keeley December 1 , 2000 Page 2 This brings us to again calling on you for assistance in our preservation efforts. We talked with Gary Shallcross a couple of times over the last year. We missed last year's State budget so were hoping that you can help us under one of the following scenarios. It is our understanding that there are preservation monies under the recent Coastal Bond Act. Another option may be the acquisition of the Flanders property by the Regional Park District. Our group would be happy to assist in the restoration and operation of it. It could be operated as per our business plan or some variation. In time, we hopefully could generate money for future park acquisition for the district. Ben Post's predecessor at Regional Parks called me several times to discuss this very option. We both thought it had merit. At the time, however, Zad Leavy had a client who proposed a long-term lease or life estate with many substantial benefits to the community. In the past two weeks, however, the couple has completely backed away from dealing with the city. Thirdly, the State Parks Department could take over Flanders and use it as a very special executive retreat facility as an adjunct to Asilomar. Our group could assist State Parks in running it. The advantages to the State would be: 1. The preservation of an historic asset. 2. The preservation of the Park/Preserve as public open space. 3. The prevention of the creation of a private "in-holding" in an existing park. 4. The creation of a revenue-generating, low-key, unique small meeting center. The atmosphere is truly extraordinary, Fred! Time is of the essence for us. We are hopeful that you will review these options, come up with some of your own and possibly find some light for us. A great many Carmelites and residents countywide would be so grateful. I am leaving the country for two weeks from December 5 through 21. Please contact Alice Englander, our Treasurer, for any information or assistance during that period (phone 831-626- 4398, fax 831-626-4399, email alice@englander.com). Thank you for your consideration of this issue and for all that you do for us in the county. Warm regards, Melanie C. Billig President, Flanders Foundation cc: Gary Patton, Executive Director of Land Watch Monterey County . \ ' FLANDERS FOU DATION Annual Status Report to the City Council on Flanders Foundation Activities Carmel-by-the-Sea December 7, 1999 I I Board of Directors Melanie Billig, President Paul Eastman Alice Englander, Treasurer William Englander Gary Girard, Secretary Diane Hydorn, Vice President Jerry Kimmel Elizabeth Sooy Pauline Stanley Lou Ungaretti Yoko Whitaker Laurel Whori Advisory Board Margery Adams Carol Bell Maggie Downer Paul Eid Hugo Ferlito Diane Flanders Jan Hardy Glenn Leidig Kati Lewis Mary Anne Teed Lloyd Mary Ann Matthews Martin Moss Enid Sales Cynthia Schelcher Joyce Stevens Flanders Foundation December 7, 1999 A California Nonprofit Public Benefit Corporation P.O. Box 1414 Carmel-by-the-Sea, CA 93921-1414 Telephone and Fax (831) 626-3826 Web Page: http://www.englander.com/flanders Email : flanders@englander.com Honorable Mayor and City Council Members - The Flanders Foundation has accomplished a great deal in the past year and we are proud to present you with this Annual Status Report, which we hope will be the first of many in the years to come. As you read this report and listen to public comment, we hope you will focus on the following commonly asked questions and key issues that have also been asked of us. 1. Why does the Flanders Foundation and a wide variety of community organizations and individuals think that the City should retain the Flanders property as part of the Mission Trail Nature Preserve? It is one of only two buildings in Carmel-by-the-Sea listed on the National Trust Register of Historic Places. It is in a public park, available to all residents and visitors. It could provide an ideal setting for small events and office space for community non-profit organizations, including temporary. space for non-profits displaced during the planned Sunset Center renovation. It could provide much-needed space for an artist-in- residence program, including providing accommodations for visiting artists. It can be self-supporting. Member of Alliance of Artists' Communities Flanders Foundation December 7, 1999 Page 2 It is a valuable City asset and uses similar to those mentioned above are consistent with its zoning and the General Plan. A sale could set a bad precedent for historic preservation as well as the concept of selling City assets for short-term financial gain. It can become a facility the City is proud of and for which it would be known nationwide. It is adjacent to the Lester Rowntree Native Plant Garden, which would be at major risk if the mansion were sold to a private owner. 2. Who is opposed to the proposed plan? Some county residents have expressed concerns regarding noise and traffic. We have addressed this in our plans for "potential uses" of the property. There are also some individuals who are looking for a short-term financial gain, which, in our opinion, is a short-sighted view. One of our goals is to educate and inform all Carmel residents so they understand this concept and how it will adversely impact our village in the long term. 3. The county residents who are opposed to this plan do not live in Carmel- by-the-Sea, they do not vote in Carmel-by-the-Sea and they do not pay taxes in Carmel-by-the-Sea. The mansion actually sits quite some distance from the nearest neighbor's home. What responsibility does the City have to these county residents? The City owes the county residents the common courtesy of being a good neighbor. Any sale and private ownership would not necessarily ensure this, but the City can guarantee it by defining uses and limitations that address concerns regarding traffic, noise and parking. The City should make an effort to include the county residents in the decision-making process in public forums to the extent that they come to the table in good faith and are willing to compromise. The City owes the county residents and all the residents of Carmel-by-the Sea complete honesty. If there are any underlying issues not currently being addressed in a public forum which would influence Council's decision, we would urge the City to bring these out. The Flanders Foundation firmly believes that every resident of Carmel deserves to know Flanders Foundation December 7, 1999 Page 3 the whole story so he or she can make an informed decision about the future of this property. 4. What are some of the ramifications to the City? A sale would generate a one-time cash infusion to the City. Although this makes the budget look good during the year in which it is received, we believe it is a short-sighted and fiscally irresponsible way to generate income. Since the Flanders Foundation is intent on making the property self- sufficient, retaining the property will not cost the City any money. There are major issues that would need to be resolved before a private sale would even be viable, including things such as: Zoning issues Loss of open space and parkland Placing a realistic value on the property based on today's real estate market Determining how the house could be parceled off without destroying the adjoining Native Plant Garden or cutting off public access to Mission Trail Preserve A host of legal issues We appreciate the Council's consideration and look forward to your approval of our plans. With warm regards, Melanie C. Billig President, Flanders Foundation FLANDERS FOUNDATION ANNUAL STATUS REPORT TABLE OF CONTENTS December 7, 1999 1. 4th Quarter Report 2. Annual Report- Executive Summary 3. Business Plan
Executive Summary
Organizational Overview
Operating Plan
Marketing Plan
Financial Plan 4. Endowment Funding Alternative 5. Letters of Support APPENDIX 1 . Copy of October 27, 1998 Council direction 2. Land use issues 3. Floor plans and renovation plans 4. Copy of Web site 5. Copy of I.R.S. letter granting tax exempt, non-profit status 6. Consultants' resumes I FLANDERS FOUNDATION 4th QUARTER REPORT December 7, 1999 Honorable Mayor and City Council Members - The Flanders Foundation enthusiastically presents this fourth quarter report and annual review of our progress and efforts to date. On October 27, 1998, the Council directed the Flanders Foundation to accomplish two tasks by December 7, 1999: 1) to become a tax exempt non-profit organization and 2) to pursue fundraising efforts. The first of these tasks has been performed successfully and the second is in progress and on-going. At the October meeting, Council also discussed the development of a detailed business and operations plan, which we have also done. Since our September report to you, our work and energies have been directed toward fundraising. We "kicked off'' our Capital Campaign with a "Flanders 500" mailing the first of October to targeted donors willing to give $500 to $1 ,000. That mailing was followed up with a general mailing to people in our growing data base. We have also sent out solicitations to many local businesses and corporations. We have been extremely pleased to receive: $5,000 from the Community Foundation, Silicon Valley; $2,000 from the Ventana Chapter of the Sierra Club and a $1,000 grant from the National Trust for Historic Preservation. The last in our series of walks and garden parties/focus groups were held on November 6 1 h and 11th. We found both activities very rewarding and beneficial to our cause, which was to inform people about the Flanders property and the goals of the Flanders Foundation. Another aspect of this community outreach effort is the mailing we did to all post office box holders in Carmel. 1-1 We have joined with other preservation groups and the CBA in organizing an old fashioned community preservation celebration on December 4th. The emphasis will be to share information about our organizations with the public, as well as to celebrate Carmel's history and current preservation efforts. We hope all of you will join us. It will be great fun. Our Web site is ever expanding and we would like to encourage you to take a look at it in color at www.englander.com/flanders. We are very proud of it and have received lots of positive feedback. 1-2 I I FLANDERS FOUNDATION ANNUALREPORT-EXECUTNESUMMARY December 7, 1999 Honorable Mayor and City Council Members - The following is a detailed report recapping the highlights and milestones of our organization in the past year. We are also presenting our business plan. There is a section containing letters of support as well as material on land use issues relating to zoning and the disposition of parkland. We have included a printed copy of our Web site. In presenting this information to you, our organization cannot stress strongly enough that our sole mission is to restore the Flanders property and to maintain it in the public domain for future generations to enjoy as part of Mission Trail Nature Preserve. We recognize and support the fact that it will be the City Council that ultimately decides on the use or uses of this property. Unfortunately but naturally, the issue of use has often tended to dominate the discussion of Flanders. It is difficult to write a business/operations plan, raise money or answer questions without providing some "concepts of potential uses", whether talking to individuals, corporate entities or granting agencies. The plan we offer demonstrates feasibility and is sound financially. However, we must emphasize that we are not wedded to any particular scenario. This is just one concept for your consideration. Thus, we re-emphasize that you will make the final decision on uses and anvthing we suggest is just that. a suggestion. a concept to demonstrate how a program could work. All of this is offered in an attempt to satisfy the Council's clear October direction to develop a more detailed business and operations plan. 2-1 We are very pleased about the letters of support from many community groups who believe in our mission and goals. We think that you will find the number and content of them impressive. There are also additional supporters who feel that because of sensitive relationships in the community or to the City that it is not advisable for them to step forward now. The highlights of this past year have definitely been: Obtaining our tax exempt, non-profit status. Special thanks to Fred Keeley, Barbara Boxer and Robert D'lsidoro. The "Discover Flanders" walks. The creation and evolution of the Flanders Web site. The garden parties I focus groups. The grants: Community Foundation of Silicon Valley, National Trust for Historic Preservation and the Ventana Chapter of the Sierra Club. Networking with: Preservation organizations in Carmel, countywide and statewide. Artist-in-residence programs nationwide (Alliance of Artists' Communities). The help and support from so many knowledgeable professionals: Robert D'lsidoro, corporate attorney and legal advisor. Brigid McGrath Massey, business consultant. Dave Wilsey, accountant. Wendy Brinkman, publicist/community outreach advisor. Leslie Klein, CPA, preparer of our financial projections. 2-2 FLANDERS FOUNDATION BUSINESS PLAN December 7, 1999 3-1 Organizational Overview FLANDERS FOUNDATION BUSINESS PLAN Executive Summary The Flanders Foundation is a non-profit, tax-exempt organization with a mission to restore, enhance and maintain the Flanders Mansion property in the public domain as a historical, cultural and educational resource for the benefit of the community. The Foundation seeks to enter into a long-term lease agreement with the City of Carmel-by-the-Sea whereby the Foundation would operate and maintain the property at no public expense to the city. The organization proposes uses of the facility which are consistent with its mission, the General Plan and the city's zoning codes for parkland (P2A). Operating Plan The f=oundation envisions that the principal uses of the property would include four small office rentals for community non-profits, a minimal number of event rentals for small groups and an artist-in-residence program for three artists. All of these activities would be conducted in a manner which would minimize impacts on the county residents. In addition, the property would also be available to the City of Carmel, including the City Council, staff, various commissions, boards and committees, etc. Marketing Plan The Foundation's fundraising efforts will be centered on four major components: members and donors, grants, fundraising events and office and event rentals. In light of the unique and beautiful setting, historically significant nature of the property and Carmel's history of support for the arts, the Foundation believes these fundraising efforts will be supported by not only Carmel, but also by the surrounding area. 3-2 Financial Plan The accompanying financial projections illustrate expected results based on assumptions developed by the Board of Directors. The plan assumes that the Flanders Foundation will enter into a long-term lease agreement with the City of Carmel whereby the Foundation would operate and maintain the Flanders mansion and be responsible for all costs associated with the property. The first year of the plan commences with hiring a part-time employee, soliciting "Flanders 500" contributions and "Friends of Flanders" members, obtaining grants and holding fundraising events. During the first year, initial capital improvements of $55,360 would be completed to allow for initial use of the facility starting in the second year. Marketing of the office space and event rentals would also begin. In the second year, the plan assumes that the property will be ready for use. The Foundation will have one half-time employee to handle rentals, property management, marketing, reservations, public relations, fundraising and bookkeeping. The plan includes additional capital improvements of $50,000 per year in the second, third, fourth and fifth years. Based on the assumptions provided, the Foundation anticipates having annual revenues to cover operating expenses, to fund ongoing capital improvements and to have ample cash reserves for ongoing operating flexibility. In the first year of the projections, total contributions and revenues are $178,331 and total expenses are $37,804, resulting in an increase-in net assets of $140,527. There is a projected net increase in cash of $61,890 in the first year after spending $64,360 to acquire furniture and equipment and to fund building improvements and after making other adjustments of $14,277 to arrive at net cash provided by operations. In the next four years of the projection, total contributions and revenues continue to cover projected operating expenses and to fund $50,000 of capital improvements each year. The projected financial statements and 3-3 Summary of Significant Assumptions and Accounting Policies show the expected results in more detail and should be read in conjunction with this recap. Endowment Funding Alternative An alternative to the current business plan is the establishment and funding of an endowment that could generate enough annual income to eliminate the need for office and event rentals. An endowment of at least $400,000 earning 6.5% per year would be sufficient to generate the required income to expand the artist-in- residence program as well as maintain and improve the property. Based upon the extensive work by the Foundation's Board of Directors and its professional consultants and the fact that the Foundation has complied with the direction given by the City Council at its October 27, 1998 meeting, the Foundation urges the City Council of Carmel-by-the-Sea to: Remove the threat of sale of the Flanders property. Enter into a long-term lease agreement with the Flanders Foundation to restore, to operate and to maintain the property. 3-4 FLANDERS FOUNDATION BUSINESS PLAN Organizational Overview The Flanders Foundation was formed in May, 1998 in response to the potential sale of one of the City of Carmel-by-the-Sea's two National Register properties. As of July 19, 1999, the Foundation had obtained both its California and federal tax exempt, non-profit status. Its purpose and mission is "to restore, enhance and maintain the Flanders property as an historical, cultural and educational resource for the benefit of residents and visitors to Carmel-by-the-Sea." The Foundation is governed by a Board of Directors and has an Advisory Board which provides advice, support, assistance and community outreach functions. The Flanders property is located in Mission Trail Nature Preserve, which is zoned "parkland". The Flanders Mansion is a house located in a park zoned P2A, which the City code allows for the "use and maintenance of existing buildings for non-profit organizations, governmental buildings and uses, and residential use." (See copy of code and General Plan policies in the Appendix.) The long-range strategy of our organization is to secure a long-term lease agreement from the City and the authorization to restore, operate and maintain the property for public benefit. Evidenced by our list of supporters, there are many groups and individuals who are ready to support and assist us in our efforts. The following proposal attempts to address several community needs: 1. To protect and maintain community open space and historical assets. 2. To remove any financial burden from the City. 3. To provide small office space for community non-profits displaced by the Sunset renovation. 3-5 4. To respond to the concerns of the county residents. 3-6 FLANDERS FOUNDATION BUSINESS PLAN Operating Plan The Flanders Mansion is a two story house of 5,560 square feet, excluding the garage, basement and attic. If these are included, the total is 8,000 square feet. The first floor includes a living room, dining room, two bathrooms, den, kitchen with butler's pantry and eating booth, service area and three bedrooms. The second floor is made up of four bedrooms, three bathrooms, a dressing room, a very large closet, a multi-purpose room and the attic. Our financial plan assumes that the first floor basic uses will be four small office spaces or one larger office and two smaller ones. The living room and dining room could be available for use by community non-profits and the City, its boards and commissions, for smal l meetings, receptions, mini retreats, poetry readings, book reviews, etc. Several non-profits have already expressed interest in using Flanders in this way. This area could also be rented out as the City has done in the past for birthday parties, dinners and additionally for memorials and small executive retreats. The maximum occupancy of the living room is 30-40 people seated and 50 standing. The outdoor lawn area could be utilized for passive activities. For all group activities, people would be shuttled except for disabled persons. We anticipate that there may also be catering vehicles for selective events from time to time. In order to be sensitive to the county residents' concerns about traffic and noise, which we understand and appreciate, we will control access to these small events at the gate which will not be difficult due to the small number of people in attendance at events. The shuttle will greatly reduce the traffic to and from the property and there will be absolutely no amplified music allowed. Someone from the Foundation or representing the Foundation, such as an Advisory Board member or caretaker, will be present at all events. 3-7 I The proposed plan envisions a caretaker who will occupy the master suite and an artist-in-residence program on the second floor with room for three local and/or visiting artists to reside. These artists will participate in a wide range of community events. Earlier this year, the Flanders Foundation joined the Alliance of Artists' Communities to become better acquainted with the many different programs offered nationwide. We decided to look at all of these programs and to see if such a program would suit Flanders and also respond to the county residents' concerns regarding R1 usage. An artist-in-residence program seems natural for Carmel, given the city's noted cultural history and the community's desire to support and encourage the arts and artists. There is sufficient space for three artists with a modification to the very large closet/multi-purpose room area. The attic space could be used for archival storage or for a common area for the artists. The basement, once fixed up, could be used for storage, while the garage could be used for artist workspace. We will be improving the property using a phased approach unless we receive a major amount of money at some point, which would allow us to accelerate restoration. Otherwise, we plan to spend at least $50,000/year over the next five years. In the first year of operations, the Foundation will do the initial phase of renovation to the house. The improvements to the building will be: making it ADA compliant, roof repairs, new heating system, electrical repairs and safety repairs to the rear porch and stairs. (See the renovation report from the Architectural Resources Group in the Appendix.) There will be no other activity in the building due to this work. Activities would begin in year 2, with two indoor events per month in that year and gradually increasing in year 5 to four indoor events per month. In addition, in years 2-5 there will be one outdoor event per month from May to October. Some furniture will be purchased and some donated for the artists quarters, living room and dining room. The caretaker and office tenants will provide their own 3-8 furniture. We are planning to decorate the public rooms of the house in furnishings of the period and to that end, we are seeking photographs of Flanders and also furnishings that may once have been in the house originally. We will manage this program with: A part-time employee as administrator (see page 10 of the Financial Plan). A caretaker who will live rent free in exchange for performing the following tasks: General supervision and security of the house and grounds. Minor repairs. Insuring the general cleanliness of the house. Minor gardening (see page 10 of the Financial Plan). Volunteers who will help as needed to assist staff with
Mailings
Telephoning
Gardening
Office work/bookkeeping
Etc . 3-9 FLANDERS FOUNDATION BUSINESS PLAN Marketing Plan Our future fund raising plan centers around the following four components: 1 . Members and donors "Friends of Flanders" - $25 membership per person per year. Our strategy for increasing members and supporters will be through a low-cost outreach program of press releases, radio and the non- profit column in The Monterey County Herald. Flanders "500" - $500-$1000 membership. Financial projection assumes 200 members in the first year. Plans are to increase the number of members in subsequent years. Annual campaign - a solicitation to the entire community. 2. Grants - continue to research all potential granting entities whose criteria we meet for funding Private foundations for program support, i.e., artist-in-residence and renovation. Governmental entities - state and federal assistance for renovation. Other non-profits whose artists utilize Flanders. 3. Fundraising events and activities "Buy a tile" - campaign to repair the roof Two major events a year. 4. Office and event rentals. Our market for rentals would be limited to: Small community non-profit organizations whose needs are for small, affordable office rentals. Groups desiring intimate (small), low-key events. In order to arrive at projected revenues, we obtained information from: two Carmel non-profits, the Old Whaling Station in Monterey, other meeting and conference facilities in Carmel, the Sunset Center and a commercial rental agent 3-10 in Carmel. We have analyzed competitors, target markets, market size and trends as support for our revenue projections. We carefully considered the advantages of Flanders, such as: setting, quiet atmosphere, unique location in the park and parking for office occupants. Some of the disadvantages are: being out of the village center, difficult to locate and distance from the public and other services/professionals. Taken on balance, we believe that Flanders is a very desirable facility and is very much in keeping with what is identified as special to Carmel. In the current market, there are not enough intimate and private facilities to satisfy the demand for indoor events of up to 30 or 40 people seated or 50 people standing. Thus, because of the unique setting of the house, garden and park, we could appeal to this special market. Our marketing plan will be a simple one of direct marketing by the Foundation administrator, who will contact Non-profits regarding office and event rentals. A variety of businesses and individuals for event rentals. Members and donors through our quarterly newsletter. This will be consistent with our low-key approach and will also be cost-effective. 3-11 FLANDERS FOUNDATION BUSINESS PLAN Financial Plan Please see the following report prepared by our consultant. 3-12 FLANDERS FOUNDATION Table of Contents Independent Accountant's Compilation Report 2 Projected Financial Statements: Projected Statement of Financial Position 3 Projected Statement of Activity 4 Projected Statement of Cash Flow 6 Summary of Significant Assumptions and Accounting Policies 7 Page 1 Leslie E. Klein, CPA P.O. Box 1398 Pebble Beach, California 93953 INDEPENDENT ACCOUNTANT'S COMPILATION REPORT Board of Directors Flanders Foundation P.O. Box 1414 Carmel, California 93921 I have compiled the accompanying projected statement of financial position, and the related statements of activities and cash flows of the Flanders Foundation for a 5-year period beginning January 1, 2000, in accordance with standards established by the American Institute of Certified Public Accountants. The accompanying projections and this report were prepared for submission to the Carmel City Council as part of a business plan to address potential uses of the Flanders mansion and should not be used for any other purpose. A compilation is limited to presenting in the form of a projection information that is the representation of management and does not include evaluation of the support for the assumptions underlying the projections. I have not examined the projection and, accordingly, do not express an opinion or any other form of assurance on the accompanying statements or assumptions. Furthermore, even if the key assumptions discussed in the accompanying footnotes are realized, there will usually be differences between the projected and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. I have no responsibility to update this report for events and circumstances occurring after the date of this report . Leslie E. Klein Certified Public Accountant November 23, 1999 Page 2 FLANDERS FOUNDATION PROJECTED STATEMENT OF FINANCIAL POSITION FOR EACH OF THE FIVE YEARS ENDING DECEMBER 31,2004 Projected DECEMBER31 12/31/99 2000 2001 2002 2003 2004 ASSETS CURRENT ASSETS: Cash and Cash Equivalents $11,000 $72,890 $70,780 $74,962 $85,945 $103,851 Prepaid Expenses 0 6,582 6,582 6,582 6,582 6,582 Total Current Assets 11,000 79,472 77,362 81,544 92,527 110,433 PROPERTY: Furniture and Equipment 0 19,000 19,000 19,000 19,000 19,000 Accum Depr-Fum & Equip 0 0 (1 ,357) (4,071) (6,785) (9,499) Building Improvements 0 55,360 105,360 155,360 205,360 255,360 Accum Depr-Bidg lmprvmts 0 0 {710) (2,771) (6,114) (10,739) Total Property-Net 0 74,360 122,293 167,518 211,461 254,122 TOTAL $11,000 $153,832 $199,655 $249,062 $303,988 $364,555 LIABIUTIES AND NET ASSETS CURRENT LIABILITIES: Accounts Payable $0 $995 $1,370 $1 ,420 $1,470 $1,520 Payroll Taxes Payable 0 87 139 142 145 149 Workers' Comp lnsur Payable 0 23 48 50 51 53 Office Rent Deposits 0 - 1,200 1,200 1,200 1,200 1,200 Total Current Liabilities 0 2,305 2,757 2,812 2,866 2,922 NET ASSETS: Unrestricted 11,000 151,527 196,898 246,250 301,122 361,633 Total Net Assets 11 ,000 151,527 196,898 246,250 301 '122 361,633 TOTAL $11,000 $153,832 $199,655 $249,062 $303,988 $364,555 See accompanying Summary of Significant Assumptions and Accounting Policies. Page 3 FLANDERS FOUNDATION PROJECTED STATEMENT OF ACTIVITY FOR EACH OF THE FIVE YEARS ENDING DECEMBER 31,2004 5-Year 2000 2001 2002 2003 2004 Total CONTRIBUTIONS AND REVENUES Contributions $110,000 $10,000 $10,000 $10,000 $10,000 $150,000 In-kind Donations 10,000 0 0 0 0 10,000 Membership Dues 7,500 9,375 11,250 13,125 15,000 56,250 Grants 25,000 25,000 25,000 25,000 25,000 125,000 Fundraising Events 25,000 25,000 25,000 25,000 25,000 125,000 Office Rental Income 0 7,200 7,200 7,200 7,200 28,800 Event Rental Income 0 21,000 27,000 33,000 39,000 120,000 Interest Income 831 1,406 1,399 1,521 1,777 6,934 Total Contributions and Revenues 178,331 98,981 106,849 114,846 122,977 621,984 EXPENSES Property Operation and Maintenance Repairs and Maintenance 4,000 4,000 4,000 4,000 4,000 20,000 Gas & Electric 1,200 4,200 4,500 4,800 5,100 19,800 Water 1,500 3,000 3,300 3,600 3,900 15,300 Sewer 135 135 135 135 135 675 Garbage 900 900 900 900 900 4,500 Telephone 1,200 1,200 1,200 1,200 1,200 6,000 Cleaning 600 600 600 600 600 3,000 Gardener 2,400 2,400 2,400 2,400 2,400 12,000 Insurance . 6,582 6,582 6,582 6,582 ' 6,582 32,910 Total Property O&M 18,517 23,017 23,617 24,217 24,817 114,185 Depreciation Furniture & Equipment 0 1,357 2,714 2,714 2,714 9,499 Building Improvements 0 - 710 2,061 3,343 4,625 10,739 Total Depreciation 0 - 2,067 4,775 6,057 7,339 20,238 Page 4 (continued on Page 5) FLANDERS FOUNDATION PROJECTED STATEMENT OF ACTIVITY FOR EACH OF THE FIVE YEARS ENDING DECEMBER 31, 2004 5-Year 2000 2001 2002 2003 2004 Total Fundraising Events 5,000 5,000 5,000 5,000 5,000 25,000 Newsletter 168 210 252 294 336 1,260 - - Total Fundraising 5,168 5,210 5,252 5,294 5,336 26,260 Administration Employee Compensation 7,800 16,068 16,550 17,047 17,558 75,023 Payroll Taxes 1,038 1,670 1,707 1,745 1,784 7,944 Workers' Comp Insurance 281 578 596 614 632 2,701 Legal & Accounting 4,000 4,000 4,000 4,000 4,000 20,000 Operating Supplies 500 500 500 500 500 2,500 Other 500 500 500 500 500 2,500 - Total Administration 14,119 23,316 23,853 24,406 24,974 110,668 Total Expenses 37,804 53,610 57,497 59,974 62,466 271,351 CHANGE IN NET ASSETS $140,527 $45,371 $49,352 $54,872 $60,511 $350,633 NET ASSETS, BEGINNING OF YEAR $11,000 $151,527 $196,898 $246,250 $301,122 NET ASSETS, END OF YEAR $151,527 $196,898 $246,250 $301,122 $361,633 See accompanying Summary of Significant Assumptions and Accounting Policies. Page 5 (continued from Page 4) FLANDERS FOUNDATION PROJECTED STATEMENT OF CASH FLOW FOR EACH OF THE FIVE YEARS ENDING DECEMBER 31, 2004 5-Year 2000 2001 2002 2003 2004 Total CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets $140,527 $45,371 $49,352 $54,872 $60,511 $350,633 Adjustments to Reconcile Change in Net Assets to Net Cash Provided by Operating Activities: Depreciation 0 2,067 4,775 6,057 7,339 20,238 In-kind Donations of Furniture & Equipment (1 0,000) 0 0 0 0 (1 0,000) Change in Assets & Liabilities: 0 Prepaid Expenses (6,582) 0 0 0 0 (6,582) Accounts Payable 995 375 50 50 50 1,520 Payroll Taxes Payable 87 52 3 3 4 149 Workers' Comp Insurance Payable 23 25 2 1 2 53 Office Rent Deposits 1,200 0 0 0 Q 1,200 - - Net Cash Provided by Operating Activities 126,250 47,890 54,182 60,983 67,906 357,211 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Furniture and Equipment (9,000) 0 0 0 0 (9,000) Purchase of Building Improvements (55,360) (50,000) (50,000) (50,000) (50,000) (255,360) Net Cash Used by Investing Activities (64,360) (50,000) (50,000) (50,000) (50,000) (264,360) NET INCREASE IN CASH & CASH EQUIVALENTS $61,890 ($2,110) $4,182 $10,983 $17,906 $92,851 CASH & CASH EQUIVALENTS AT BEG OF YEAR $11 ,000 $72,890 $70,780 $74,962 $85,945 CASH & CASH EQUIVALENTS AT END OF YEAR $72,890 $70,780 $74,962 $85,945 $103,851 See accompanying Summary of Significant Assumptions and Accounting Policies. Page 6 I I FLANDERS FOUNDATION Summary of Significant Assumptions and Accounting Policies Employed in Preparation of the Projected Financial Results For Each of the Five Years Ending December 31, 2004 NOTE 1 - ORGANIZATION AND PURPOSE The Flanders Foundation ("Foundation") was incorporated July 19, 1999, as a California non- profit organization. The Foundation was formed to preserve, enhance and maintain the Flanders mansion property as an historical, cultural and educational resource for the benefit of residents and visitors to Carmel-by-the Sea. The Foundation is governed by a Board of Directors ("Board"). The Flanders mansion property is listed on the National Register ofHistoric Places and is owned by the City of Carmel. Built in the 1920s, the Flanders mansion is in the Mission Trails Nature Preserve and adjacent to the Lester Rowntree Native Plant Garden. It is the intent of the Foundation to enter into a long-term lease agreement with the City of Carmel whereby the Foundation would operate and maintain the property. Principal uses of the property would include four office rentals for community non-profit organizations, event rentals for small groups, and an artist-in-residence program for three artists. NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The organization's books of account will be maintained principally on the accrual basis of accounting. Financial Statement Presentation The Foundation will report its results as required by Statement ofFinancial Accounting Standards (SF AS) No. 117 "Financial Statements of Not-for-Profit Organizations." Under SF AS No. 117, the Foundation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. The accompanying projected financial results employ a simplified approach whereby all contributions are considered to be available for unrestricted use. Cash Equivalents For purposes of the projected statement of cash flows, the Foundation considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash and/or cash equivalents. Property All property acquired by purchase is stated at cost. Donated property is stated at fair market value at the date of gift. Major improvements are charged to the property accounts, while maintenance and repairs that do not extend the life of the respective assets are expensed currently. Depreciation The Foundation provides for depreciation of property and equipment using method and lives prescribed by federal income tax law. Projections utilize straight-line depreciation over 7 years for Furniture and Equipment and over 39 years for Building Improvements. Page 7 Revenue Recognition The Foundation will recognize revenue as required by Statement of Financial Accounting Standards (SFAS) No. 116 "Accounting for Contributions Received and Contributions Made." Under SFAS 116, contributions are recognized as revenue when they are received or unconditionally pledged. Contributions are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. The accompanying projected financial results employ a simplified approach whereby all contributions are considered to be available for unrestricted use. Donated Services Donated services from certain professionals will be recorded as in-kind revenue. Contributed services are not recorded unless such services create or enhance a nonfinancial asset or require specialized skills and are so essential they would be purchased if not provided by donation. Estimates The presentation of financial statements in conformity with generally accepted accounting principles requires that management make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. NOTE 3- NATURE OF PROJECTIONS The financial projections present, to the best of the Board's knowledge and belief, the expected results of operations and cash flow for the projection period if the City of Carmel authorizes it to operate and maintain the property. Accordingly, the projection reflects the Board's judgment as ofNovember 23, 1999, the date of this projection, of the expected conditions and its expected course of action if this authorization is approved by the City of Carmel. The presentation is designed to provide information for the City of Carmel as part of a business plan to address potential uses of the Flanders mansion, and cannot be considered to be a presentation of expected future results. Accordingly, this projection may not be useful for other purposes. The assumptions disclosed herein are those that the Board believes are significant to the financial projections. Even ifthe City of Carmel authorizes the Flanders Foundation to operate and maintain the property, there will usually be differences between projected and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. NOTE 4- CAPITAL IMPROVEMENTS The projections are based on the assumption that the first phase of capital improvements will be completed in Year 1. This phase would address urgent disabled access, electrical and mechanical problems and allow for initial use ofthe facility starting in Year 2. Additional capital improvements of $50,000 per year are projected for Year 2 through Year 5. While the Foundation anticipates receiving in-kind donations for some of the needed building improvements, these donations are not reflected in the projections. Page 8 ,. I I The following is a recap of building improvements for the first phase based on estimates received in September 1998: ADA (handicap) access to both levels of first floor Roof repairs Replace furnace with zoned heating system Add 100 AlvfPS new electrical service and new sub-panel Repair rear porch and replace rear porch stairs Subtotal Contingency@ 15% Subtotal Profit and Overhead @ 15% Total $6,750 3,500 19,110 6,000 6 500 41,860 6,279 48,139 7,221 $55,360 The Foundation will furnish the living room, dining room, kitchen and three artist-in-residence bedrooms. The projections for Year 1 include furniture and equipment expenditures of $9,000 ($2,000 for kitchen equipment, $2,000 for folding tables and chairs, and $5,000 to purchase furniture) . It is expected that most of the furnishings will be donated in Year 1. The projections include $10,000 of in-kind donations for the estimated fair market value of these donations. The four office spaces and caretaker space will be furnished by the occupants. NOTE 5- REVENUE Contributions Projected contributions include 200 "Flanders 500" donations of $500 in Year 1, and annual donations of $10,000 from an annual direct mail fundraising campaign. Membership Dues Membership revenue is based upon 300 initial "Friends ofFlanders" members at $25 each in Year 1 growing to 600 members by Year 5. Grants Projected grants of$25,000 per year are anticipated based upon the historically significant nature of the property and the artist-in-residence program. Fundraising Events Projected revenues are based upon the assumption of at least two major fundraising events per year with estimated annual net proceeds of$20,000 ($25.,000 gross proceeds less expenses of $5,000). Office Rental Income Beginning in Year 2, it is expected that four office spaces rented at an average rate of $150 per month would generate $7,200 per year. Rent will be prepaid monthly with a security deposit equal to one month's rent. Page 9 Event Rental Income Indoor event rentals are assumed to generate $18,000 in Year 2 (two events per month) growing to $36,000 by Year 5 (four events per month). Outdoor event rentals during May through October will generate $3,000 per year starting in Year 2 (one event per month). Rent will be prepaid before each event with a security deposit required. The following is a recap of projected rental income in Year 2: Frequency Price Range Avg. Price Annual Total Indoor: Day events 12 $500-800 $650 $ 7,800 Executive retreats 6 $1,500 $1,500 9,000 Nonprofits __ $100-300 $200 1,200 Subtotal 24 18,000 Outdoor: Day events 4 $500-800 $650 2,600 Nonprofits _1 $100-300 $200 ___iQQ Subtotal _ 3,000 Total 30 $21,000 NOTE 6- OPERATING EXPENSES Property Operation and Maintenance General repairs and maintenance are expected to be $4,000 per year starting in Year 2. The Foundation will pay for all utilities, garbage pickup, cleaning, and property and general liability insurance. The property and general liability insurance will be prepaid on an annual basis. The resident caretaker's responsibilities will include helping with cleaning, gardening and routine maintenance. The projections assume that the City of Carmel will incur no costs for operating or maintaining the property. Fund raising The primary fundraising costs will be in connection with mailing a quarterly newsletter to members and donors. It is assumed that all paper and printing costs for the newsletter will be donated. Administration The Foundation will hire a part-time employee who would serve as "Administrator," handling rentals, property management, marketing, reservations, public relations, fundraising and bookkeeping. The employee will work 10 hours per week in Year 1 and 20 hours per week starting in Year 2. The starting rate is $15 per hour with a 3% increase each year. No benefits will be provided. The projections include annual costs for legal counsel and an annual review by a CPA firm. It is assumed that any additional professional services will be minimal and will be donated. Page 10 FLANDERS FOUNDATION ENDOWMENT FUNDING ALTERNATIVE December 7, 1999 An alternative to the current business plan is the establishment and funding of an endowment that would generate enough annual income to eliminate the need for office or event rentals. All other fund raising activities in the current business plan would remain unchanged. Additional residential space could be made available to expand the artist-in- residence program. In such a plan, the Carmel Art Association, the Bach Festival, Pacific Repertory Theatre, the Symphony and the Carmel Art Festival, etc., would all be able to house visiting artists. Our role would then be to coordinate the scheduling and rentals, maintenance and operation of the program and facility. These organizations have housing needs for visiting artists and are currently budgeting for these accommodations. Many of these organizations are in a position to also obtain significant grants to ensure the success of such a program. We estimate that an endowment fund of at least $400,000 would be needed to generate the required income for the first five years, assuming a 6.5% rate of return. 4-1 FLANDERS FOUNDATION LETTERS OF SUPPORT December 7, 1999 We are pleased to provide letters of support from the following organizations and individuals: National Trust for Historic Preservation California Preservation Foundation State Office of Historic Preservation Carmel Preservation Foundation Carmel Art Association Sierra Club, Ventana Chapter California Native Plant Society Friends of Carmel Forest Lester Rowntree Native Plant Garden Committee Carmel Open Space Task Force Carmel Residents Association Carmel Unified School District I Adult School Monterey Peninsula Art Foundation 5-1 WESTERN OFFICE November 24, 1999 The Honorable Ken White Members ofthe City Council P. 0 . Box CC Carmel by Sea, CA 93921 RE: Flanders Foundation Proposal for the Flanders Mansion Dear Mayor White and Members ofthe City Council : The National Trust for Historic Preservation is pleased to send a second letter of support for the Flanders Foundation Proposal for the Flanders Mansion. We understand that the Foundation proposes to raise funds for the restoration and long term maintenance of the Mansion. The Foundation also proposes to reuse the home and grounds for museum and community resource purposes. In November the National Trust awarded the Flanders Foundation a grant to hire a consultant to develop a comprehensive business, management and operations plan for the Flanders Mansion. Listed in the National Register of Historic Places, the Flanders Mansion is an important historic site for the community and region. The National Trust believes that the uses proposed by the Foundation are appropriate for the home and grounds, because they are in keeping with the building's history and do not call for substantial changes to the structure and its environs. We believe that a partnership between the city and Foundation could bring rich rewards for the community. There are numerous examples of successful stewardship models between local governments and private organizations such as the one the Foundation proposes. Dunsmuir House in Oakland, for example, is owned by the City of Oakland, but operated by a nonprofit corporation. Dunsmuir is an extremely popular attraction for the city. Much like the Foundation proposal, the nonprofit corporation at Dunsmuir operates it as a house museum while also overseeing a multitude of programs and events throughout the year. The active use of Dunsmuir helps to generate income for the site' s maintenance and operation. The home and grounds are an important source of recreation for the community. A second example is the National Trust's own Filoli in Woodside, California. Run by a nonprofit corporation, the Friends ofFiloli, and owned by the National T.rust, Filoli is another similar example of a house museum and site for public events. Like Dunsmuir, tours, lectures and special events help to support the costs of operating the site and its grounds. Protecting the Irreplaceable ONE SuTTER STREET. SuJTE 707 SAN FRANCISCO , CA 94104 4I5 . 956.0610. FAX: 415.956.0837 WRO@NTHP . ORG Serving: AK, AZ, CA, HI, ID, NV, OR, WA &: PACIFIC ISLAND TERRITORIES NATIONAL OFFICE I785 MASSACHU S ETTS AVENUE , NW WASHINGTON . DC '20036 WWW . NATIONALTRUST.ORG The rehabilitation and reuse ofthe Flanders Mansion will bring rich rewards to the community. The National Trust is pleased to provide this letter of support. Please do not hesitate to contact me . Sincerely, ~ ~ 0 ~ ~ Assistant Director Western Office NCRA Fax:7072587851 No v 24 ' 99 13: 00 CaliflJT71iJJ, Preservation !F ountfation 404 J" ourtwr.tli Strut November 24, 1999 The Honorable Ken White Members ofthe City Council P.O. BoxCC Carmel-by-the-Sea, CA 93921 Suitt1010 California 94612 (510) 763-0972 (510) 793-4724 RE: Flanders Foundation Proposal for Flanders Mansion Dear Mayor White and Members of tl1e City Council: P. 01101 The California Preservation Foundation (CPF) is a private, non-profit organ.izatiou whose mission is to promote historic values and techniques throughout California. We would like to acknowledge the leadership role the City Council took in October 1998, by allowing the Flanders Foundation time to develop a preservation and rouse plan for the Flanders Mansion. At this time CPF is pleased to submit this letter of support on behalf of the Flanders FoWldation. The Flanders Mansion and the surrounding Mission Trail Preserve are important historic and cultural resources for the City. As one of only two National Register of Historic Places properties in Carmel, the Flanders Maruion is worthy of your continued stewardship as a valuable com111unity resource. We believe the of the Flanders Mansion and the proposed reuse program developed by the Flanders Foundation will allow the mansion to become an important asset for curren.t and future Carmel residents. The Flanders Fotmdation has made significant progress over the last year by fonnins a non-profit organitation, hosting speciaJ events, obtaining gruts, developing an operations and fund raising plan, and developing a phased program for restoration. We believe the Flanders Foundation has proven its ability to undertake this project and is worthy ofthe City Council ' s continued support. We would like to reinforce the impqrtant stewardship role cities play by preserviaa historic structures in the public: domain. This 1920s residence of the family is an important community asset and we urJe you to continue on the path towm-ds its preservation and reuse. CassMdra L. Walker President TE OF CAUFORNIA - THE RESOURCES AGENCY PETE WILSON, GovMTJor FICE OF HISTORIC PRESERVATION .ATMENT OF PARKS AND RECREATION t:iOX 94 2896 RECEIVED RAMENTO 94296.0001
(916) 653-9824 OCT I 2 1998 October 8, 1998 Honorable Ken White and Members of the City Council P.O. Box CC Cannel, CA 93921 Re: The Flanders Mansion, "Outlands". Dear Mayor White and City Council Members : This significant historic property was placed on the National Register of Historic Places on March 23, 1998. Designed in 1924 for Carmel civic leader Paul Flanders, in an English Cottage Tudor Revival style, the house is an impressive example of the work of the noted San Francisco architect Henry H. Gutterson. Interestingly, the house was constructed of an early pre-cast concrete block system manufactured by a local firm, the Carmel Thermotile Company. This cavity wall system is one of only two known examples in the region. Architect Gutterson ' s design possesses the high artistic value that qualifies this property for the National Register. This impressive property appear::. to be an excellent candidate for adaptive reuse, 3 common treatment for historic buildings. There are many examples of successful nevi uses that historic buildings have provided to continue their viability and to provide for changing community needs. Examples can be found throughout California, from Rancho Guajome, a National Historic Landmark in San Diego, to the Ricks House in Eureka. A community cultural and educational center, as proposed by the local Flanders Foundation, would be a very suitable adaptive use for the property. There are various funding possibilities. The federal 20% historic rehabilitation investment tax credits could be a potential funding incentive ifthe Flanders Foundation establishes a for-profit corporation to utilize the tax credits. Please feel free to contact Steade Craigo, Sr. Restoration Architect, or me at 916.653.6624 ifthe office can be of assistance.
Daniel Abeyta, Acting State Historic Preservation ------ - NOV. 22. 1 99'3- 3 : 23PM STAT! OF THI! RESOU CES AGIHCY OFFICI! OF HISTORIC PRESERVATION DEPARTMENT OF PARKS ANO RECReATION FI .O. BOX 8421105 SACRAAENTO. CA a.eaae.oc01 !lax: (11'111 Cliiii1IOOCI'Clpftl. CI.QOV Honorable Ken White and Members of the City Council P.O. Box CC Carmel, CA 93921 November 22, 1999 Dear Mayor White and City Council Members: N0 .134 ;:,1/1 I am writing to expreas my strong support for the continued preservation ot the Flanders Mansion. The Flanders Mansion was placed on the National Register of Historic Places in 1989. The National Register Is OL.Ir nation'! official list of propertle6 worthy of preservation. The property wa! designed by mister architect Henry H. Gutterson, and Is the only example of his work in the region, The building employs an innovative constn.Jction technique Involving precast hollow concrete units called Thermotite. Please let me know if our office may be of assistance in your preservation efforts.
Danlol Abeyta, State Historic Preservation Officer BOARD MEMBERS Richard Barrett Elizabeth Bell Richard Bell Howard Brunn Frances Hasenyager Anne McFarlane L. Bruce Meyer MD Clive Rayne Kate Rayne Cindy Riebe Lois Roberts Cecil Wahle Marjorie Wurzmann OFFICERS L. Bruce Meyer MD President Howard Brunn Vice President Kate Rayne Secretary Ralph Tober Interim Treasurer EXECUTIVE DIRECTOR Enid T. Sales RSEARCH DIRECTOR Claudine Van Vleet COUNSELS Robert O'lsidoro Susan Brandt-Hawley Brandt-Hawley & Zoia TO: Mayor Ken White and Members ofthe City Council FROM: Carmel Preservation Foundation RE: Flanders Foundation DATE: November 19, 1999 Members of the Board of the Carmel Preservation Foundation and members of its Historic Survey Committee offer the if full support of the Flanders Foundation Board and their efforts to preserve Flanders Mansion. Their remarkable accomplishments: by becoming a non-profit organization, by receiving grants and donations, by sponsoring events to familiarize the entire peninsula with this exceptional building, and most importantly, by offering the stewardship to save this National landmark for the Carmel community, are achievements of incalculable value to the City of Carmel and its residents. This building, designed by Henry Higbee GOtterson, is an excellent example of his notable residences created during the Arts and Crafts period from 1915 to 1930. It is one of the best of his English country house designs, eclipsing the well-known Farmer House in the Oakland hills. Gutterson was one of the most famous "Bay Area" architects. He with both Bernard Maybeck and Julia Morgan, most notably with Maybeck, on the First Church of Christ Scientist in Berkely, CA. Carmel is fortunate to have a building of this caliber about to be preserved for community use. Yours will be a Nationally celebrated decision, in support of Carmel's concern for preservation, thereby earning a place in America's history . . / / P.O. Box 2271 Carmel, CA 93921 (831) 624-6176 e-mail : caagallery@redshift.com 22, 1999 City of Carmel City Council Members P.O. Box CC Carmel, CA 93921 Dear City Council Members: On behalf of the board or directors tor Carmel An Assoc1anon, \\'C wauid ii.ke w give our support to the Flanders foundation ' s goal ofkeepmg and maintaining the mansion and property for public use. At the last meetmg ofthe board. it \vas agreed unanimously that we would like to see the mansiOn used as an artist in residence program and to possibly bring back the Carmel An Lnstttute. The proposed program would allo"" three young artists to work and live for one year at the rnansJOn We strongly that this program would be worthwhile for the commuruty and remain in keeping with the areas rich artistic hentage. Thank you for your consideration. Sincerely, Director For Belinda Vidor, President Francyne Laney, Vice President Wilda Northrop, 2nd Vice President Margaret Roberts, Treasurer Kathleen Crocetti, secretary Virginia Fry Alicia Meheen Reed Farrington Micah Curtis Robert Bradshaw WiUiam F. Stone, Jr. Miguel Dominguez Carole Minou Timothy Sloan Dick Crispo Founded 1927
RECEIVED (' - .J i. .. ' ""99 .. i.J ' \,/TY rj ; :.;ARMEL 8V- Tf-1F- -'3F:A SIERRA CLUB VENTANA CHAPTER P.O. BOX 5667. CARMEL. CALiFORNIA '}3921 CHAPTER OFFICE- ENVIRONMENT-\ !_ CENTER. ( -t Oo) bl-t-8032 November 12,1999 Carmel City Council Honorable Mayor and City Councilmembers : The Sierra Club, Ventana Chapter, would like to express its strong support of the Flanders Foundation in its efforts to save the Flanders property. This propert y is an important piece of parkland and open space and an integral part of the Mission Trails Preserve. Mission Trails Preserve represents a key community asset which should be preserved and not "carved up" to generate "one time" income for the City. We also have grave concerns about isolating the Lester Rowntree Native Plant Garden from the remainder of the preserve. The garden should remain an integral part of the Carmel open space. There is precious little real estate available for new parkland or open space in Carmel. This is complicated by the fact that acquiring open space and parkland in today 's economy and at today's prices is often impossible. The V en tan a Chapter has long appreciated Carmel ' s hard work in protecting its trees and environmental resources. We therefore ask the City Council to take the long view and preserve this very special property for future generations to enjoy. Please protect the open space and allow the Flanders Foundation to assist you in this effort. Sincerely,
Gillian Taylor U Chair, Ventana Chapter GTICB .To expiO'l'c, <'Tlioy, prcse'rw anJ J.l10tect the nation '.< {orcstl, tnll<"TS, ,;n,{ u dJ,-rn..:. Califorl1ia Native Pfa11t Ms. Melanie Billig Flanders Foundation P. 0. Box 1414 Carmel, CA 93921 Dear Melanie: Monterey Bay Chapter P. 0. Box 381 Carmel Valley, CA 93924 Nov. 15, 1999 The Monterey Bay Chapter of CNPS would like to express strong support for the efforts of the Flanders Foundation to secure a long-tenn lease on the Flanders Mansion in order to maintain the area for public use. By way of background, I was president of the chapter in 1980 when we joined with the City of Cannel to establish a drought-tolerant native plant garden at Mission Trails Park adjoining the Flanders estate. The garden was named the Rowntree Arboretum (later changed to Rowntree Native Plant Garden) in honor of noted native plant horti- culturist Lester Rowntree, a long-time resident of Cannel and Carmel Highlands until her death in 1979. Coming soon after the worst drought in living memory, the garden was intended to demonstrate the value of drought-resistant native plants in landscaping, both to save water and to inform and educate residents about the beauty and cultivation of such plants as ceanothus, manzanita, flowering currant, bush poppy, and many others. Now that the garden has matured we would be very concerned about any change in owner- ship of the mansion that could adversely affect the garden. In the long tenn we believe the residents of Carmel would receive far greater benefit from the preservation of the area as a public park than from any private use. The park is an island of peace and serenity in the midst of an increasingly urbanized area; and as a result, its recreational, educational, and esthetic values are growing every year. You have our strongest endorsement of your proposal and our pledge to support you in every way we can. Sincerely yours, .. Mary Conservation Chair 11/23/1999 14:32 8316252855 Friends of Carmel Forest Post Office Box 344 CarmelbytheSea, California 93921 Mayor Ken White Members of City Council P. 0. Box cc Carmel-by-the-Sea, CA 93921 BOB&MARY OJNDR'I PAGt: 2ll November 23, 1999 Dear Moyor White and Council Members: The Friends of Carmel Forest would like you and the City to know that it supports the Flanders in its efforts to help the city retoin an important asset. In as much as this property the Mission Trail Nature Preserve (MTNP), it enhances the beauty o! the Preserve and all the properties surroundinq it. The Friends would encourage our City to work dili9ently to retain (and enhance) this real e!tate tor the future enjoyment of all its citizene. Selling the property may provide an ephemeral financial "shot in the armu for the City, but irrevocability denigrate the overall attractiveness of the MTNP !or all time. On a more practical side, the Friends of Carmel Forest have been able to pick up trees for planting at the arboretum, and they support very stron9ly the native plant garden, both o! which are located on this property. The development of the and the native plant ;arden took some time; they didn't come 1ntc existence spontaneously. Similarly, the Friends believe that City Council should extend the timetrame for the Flanders Foundation to complete its work or thorouqhly developinq alternatives for your consideration. In short, the Friends believe that City Council should give time to get its shotd! Sincerely,
S. Condry, 13: 20 P. a2 MailJ.n.g Addra.: Gary Girclrd 260.30 Atherton Drive CA 939:23 Ph.: (831) 625-1098 Fax: (831) 625-2161 Gardan Locat:ion: 25800 Hattan Road Carm.el-by-rh.e Sea November 16, 1999 Mayor Ken Wni te and Members of the City Council P.O. Box CC City Hall Carmel-by-the-Sea CA 93921 Mayor Ken White and Members of the City Council: The members of the Lester Rowntree : Native plant Garden are foursquare behind the efforts of the FLANDERS FOiJNDATION to establish a use and rehabilitate the historical structure to a status that is a credit to open space the City of Carmel-by-the-Sea. The local Chapter of the Native Plnnt Suciety, of who we are affiliated, are of ai like mind, realizing what the City is considering to do! with 'the property. It is our hcpe, that you will the efforts of the FLANDERS FOUNDATION and to allpw further time, while this organization continues with contribution program and carries out further grant the improvement of the structure.
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2rlie Williams r Ck-1 A--.. Carmel Open Space Task Force 12/f? ?J?21 (fJ1) 620-6/2? November 22, 1999 Dear Mayor White and Members of the City Council, Last October when you reviewed the work of the Flanders Foundation, our task force strongly supported their preservation plan and goals for the Flanders property. The Open Space Task Force would like to again go on record supporting the Flanders Foundation's significant and outstanding efforts to save and preserve the Flanders property and the open space of Mission Trail Preserve. The sale of the Flanders property would seriously compromise the integrity of the entire preserve, of which Flanders and the Lester Rowntree Native Plant Garden are a significant aspect. Once the city sells its open space assets for a one-time financial gain, they are lost to the community forever. Where and when will the city be able to acquire such open space again? The Flanders Foundation has worked very hard in the year that they have been given to satisfy the points and issues you required of them. We believe that they have met the 3 points in your motion as we understood it last October. They have become a tax exempt, non-profit organization, developed an operations plan, as well as commenced their fund-raising campaign. Their achievements should not only be acknowledged, but also be taken as an indication of their solid ability to fulfill their mission. Sincerely, Martin J. Moss Chairman Carmel Residents Association P.O. Box 13 Carmel-by-the-Sea California 93921 Honorable Mayor and Council Nov. 22, 1999 The Carmel Residents Association Board of Directors would like the Mayor, the City Council and the City Administrator to know that it supports the Flanders Foundation and its efforts to help the city keep a valuable asset. The Flanders mansion and arboretum, occupying such a major and important part of the Mission Trail Nature Preserve, are truly deserving of upgrading and maintaining. Our city needs to work diligently and creatively to keep all of its assets for the future. To sell off valuable property is only a short term solution. Stewardship is perhaps the city' most important mission. Efforts by dedicated citizens to establish a business and operation plan to provide for a revenue base for Flanders Foundation should be honored and commended for its efforts . hopefully not discouraged or denied. The Carmel Residents Association Board of Directors believes the right thing for the Mayor and Council to do is to extend by generous measure the time frame for the Flanders Founda- tion to fulfill its voluntary obligations which were entered into so willingly. Thank you very much.
Carmel Residents Assoc. .CARMEL UNIFIED ~ SCHOOL DISIRICf NOVEMBER 15, 1999 To: The Flanders Foundation CAAAtEL UNIFIED SCHOOL DISRICT CARMEL ADULT SCHOOL P.O. Box 222780, Carmel, CA 93922 TEL: ( 408) 624-1714 FAX: (408) 624-0127 Paaicia Beebe, Principal From: Pat Beebe, Carmel Adult School Principal Re: Adult School Art Classes Dear Flanders Foundation, I want to make you aware of the services of Carmel's Adult School. We have many students who are anxious to sign up for fine and applied arts classes that we offer through the many talented, artistic instructors in our area. We appear to have more people interested in art classes than we have room to accommodate them all. The Adult School can provide classes at Flanders for a small fee to students of $25.00 for eighteen classes when at least fifteen students enroll. Through average daily attendance from the State, we are able to pay the cost of the instructor's salary. We presently offer classes at Sunset Center, but are restricted by the use of only one room for this purpose. If you are interested in our providing classes at Flander's and helping promote a1t in Carmel, will you please let us know. We are more than happy to help promote the fine arts in our community. Our offices are presently located at Carmel High School. Our telephone number is 624-1714. Monterey Peninsula Art Foundation Box 223411 Carmel, CA 93922 November 15, 1999 Flanders Foundation Gentlepeople: The Monterey Peninsula Art Foundation supports the idea of Flanders being an art community. We began as a non-profit in 1984 and number 130 local working artists. Our purpose is art education for ourselves and for the public. In this effort, we sponsor art history lectures and workshops. Our first slide/lecture was with Nathan Olivera. We have continued with Benny Andrews and Dick Crispo and other noted artists. We have had a lucky link with Carmel Adult Education. However, its connection at Sunset with the City of Carmel has been, and is, tenuous. The Adult School offers the only art classes available within the city of Carmel. Carmel is known throughout the world as an art center. I think this connection is one to maintain and nourish. This is where Flanders Foundation can help. We are very interested in the mentor program where a novice art student can work with a professional. Flanders lends itself as a venue for the type of art history lectures and work shops that we offer. It is also a marvelous place for music on the lawn. I believe the present parking could be reconfigured and expanded. The neighbors will eventually embrace the wonder of Flanders. We are with you. , s>/ -- / -. /', i \ _//l/)CI / ( ( (/ / (t I Susan Long, PresideD( ____ - f Monterey Peninsula 831-624-4262 APPENDIX FLANDERS FOUNDATION APPENDIX TO REPORT TO CITY COUNCIL December 7, 1999 Copy of October 27, 1998 Council direction A-1 MEMORANDUM To: I From: Jere A. Kennar, City Jeanne Brehmer, City Clerk r Date: October 29, 1998 Subject: Action on the Flanders Foundation's Proposal Following the discussion at the October 27 meeting ofthe proposal by the Flanders Foundation for the Mansion, the following motion was made: IT WAS MOVED BY LIVINGSTON, A..J\TI SECONDED BY HYDORN, TO REMOVE THE THREAT OF THE SALE OF THE FLANDERS PROPERTY; TO ACCEPT THE REPORT OF THE FLANDERS FOUNDATION; TO ASK THE FOUNDATION TO GIVE US QUARTERLY WRITTEN REPORTS AND AN ORAL PRESEl\TTATION IN DECEMBER 1999; AJ-ID TO ALLOW THE FOUNDATION TO PROCEED WITH THEIR ORGAl'\il.ZA TIONAL FUND-RAISING EFFORTS. THE MOTION CARRIED BY THE FOLLOWING ROLL CALL VOTE: AYES: COUNCTI.. MEMBERS: Hydorn, Livingston. White NOES: COUNCIL MEl\ffiERS: Hazdovac. McCloud ABSENT: COUNCIL MEMBERS: None With regard to your question regarding the process by which appropriate uses for the Mansion would be detennined, it was agreed that Mayor White would meet with the Chair of the Foundation. c: Mayor White Members of the City Council Melanie Billig, Chair Flanders Foundation Greg D'Ambrosio, Assistant City Administrator FLANDERS FOUNDATION APPENDIX TO REPORT TO CITY COUNCIL December 7, 1999 Land use issues A-2 Chapter 9. 538442 538441 538452 538451 538460 S3846I 538462 Discontinuance of Parks. Article 2. Parks dedicated by City. Prohibited discontinuances. Except as provided in 538441 this article shall not be construed to authorize (a) A discontinuance and abandonment, or change in use, of such lands which will cause the reversion of the lands to private ownership or a forfeiture of the city's ownership in fee. Without a special election, the legislative body may convey a minor portion of such park in exchange for an equal or greater area or value of privately owned land contiguous to the park after: a. notice and public hearing b. determination that exchange is in the public interest c. adoption of resolution of discontinuance Special Election. If less than a majority of such electors vote for it, the legislative body shall not initiate proceeding for discontinuance of the use of such land for park purpose for one year after the election. If a majority of electors voting are in favor the legislative body shall adopt an ordinance declaring that the use for the park is discontinued and abandoned. Effect of Ordinance. When the ordinance is effective the city may sell or otherwise dispose in the same manner as it may dispose of other city property no longer required for such purposes. Proceeds of sale; bond fund. If the land was acquired by money derived from bonds authorized for park purpose and the land sold, the reasonable market value of the land at time of adoption of the ordinance shall be transferred to the bond fund. Proceeds of sale, use after deposit in bond fund. Except as permitted by general laws allowing diversion of bond funds, money so transferred shall be devoted only to the purpose for which the bonds were authorized. CE:UA ana HlstOnC.aJ ... ._...... CEQA Provisions C EQA does not apply to ministerial actions which may impact a historical For example, a project which. eomplies with the Uniform Building Code and for which no discretionary permit is required does not fall under CEQA, even if the project may alter a build- ing which is considered a historic struc- ture" under the State Historical Building Code (Prentiss v. City of South Pasadena (1993) 15 Cal.App.4th 85). Common ministerial actions in- clude roof replacement. interior remodeling, or other activities which require only a non-discre- tionary building permit A ministerial action ap- plies fixed standards or objective measurements and involves "little or no personal judgment 9Y a public official as to the wisdom or manner of car- rying out the project" (Guidelines Section 15369). CEQA does apply to discretionary projects and equates a substantial adverse change in the sig- nificance of a historical resource with a signifi- cant effect on the environment (Section 21084.1 ). Further, the Act explicitly prohibits the use of a categorical exemption within the CEQA Guide- lines for projects which may cause such a change (Section 21084). "Substantial adverse change" is defined as demolition. destruction, relocation, or alteration activities which would impair histori- cal significance (Section 5020.1). This effectively requires preparation of a miti- gated Negative Declaration or an EIR whenever a project may adversely impact historic resources. However, where the project meets the Secretary of Interior's Staruiards for Rehabilitation (avail- able from SHPO), and so will not result in an ad- verse effect, it is possible that a Negative Decla- ration could be adopted. Key Questions . This presents the Lead Agency with two key questions which it must address in sequence. Flrst. does a significant historical resource exist? Ab- sent a historical J;CSOurcC. the agency may proceed as usual and, depending upon the circumstances, may be able to apply a CEQA exemption to the project. Second, where a significant historical re- source does exist, will the proposed project result in a substantial adverse change such that the quali- ties that make the resource significant are impaired or lost? This question should be answered through preparation of an initial study for the project. Is a Historical Resource Present? Section 21084.1 is by turns both specific and vague in distinguishing the range of resources which may be considered historic. First. any re- source listed in, or eligible for listing in, the Cali- fornia Register of Historical Resources is pre- sumed to be historically or culturally significant Tills includes listed archaeological resources (for California Landmark Number 838, The Indian Village ofTsurai). The Lead Agency's fliSt step should be to consult the applicable Historical Resources File System Information Center to as- certain whether the resource is listed in the Cali- fomia Register. A side note: CEQA establishes two separate mechanisms for evaluating potential adverse ef- fects on archaeological resources. Section 21084.1 appl!es to those resources that are listed in or eli- gible to be listed in the California Register. Sec- tion 21083.2 applies to other "unique" archaeo- logical resources as well. For more information on the application of CEQA to archaeological re- sources see CEQA and Archaeological Resources, published by OPR. Second. resources which are listed in a local historic register or deemed significant in a his- torical resource survey as provided under Section 5024.1(g) are to be presumed historically or cul- turally significant unless preponderance of evideoce" demonstrates they are not The next step is ro consulr the pertinent existing local register and survey. Because a local register or survey may cor employ rhe same criteria as the California Register, listing or identification in a local survey does not necessarily establish if the property is eligible for listing on the Register. The Lead Agency will need to evaluate the resource in light of the Register's listing criteria (these will be in- cluded in guidelines expected to be by SHPO in June 1994). The Lead Agency may de- termine that the preponderance of evidence dem- onstrates that the property in question is not his- torically or culturally significant despite being listed on a local register or identified in a local historic survey. When making this detennination, OPR suongly reconunends that the agency cite for the record the specific, concrete evidence which supports that detennination. Third, a resource that is not listed in, or deter- mined to be eligible for listing in, the California Register of Historic Resources, not included in a local register of historic resources, or not deemed signific311t in a historical resource survey ma"y nonetheless be historically significant, pursuant to Section 21084.1. Tills provision is intended to give the Lead Agency discretion to determine that a resource of historic significance exists where none had been identified before and to apply the requirements of Section 21084.1 to properties that have not previously been formally recognized as historic. As the last step, the local agency should employ recognized criteria to detennine whether a previously unrecognized significant historical resource exists. Will There be a Substantial Adverse Change? \Vhen a project would potentially affect a his- torical resource, the Lead Agency should prepare an initial study. The initial study, and the infor- mation upon which it is based, will provide a ba- sis for determining whether the project may re- sult in substantial adverse changes to the resource and, at the same time, a significant adverse envi- ronmental effect. Section 50.20.1 establishes the threshold of "substantial _ adverse change" as de.-_ struction. relocation, or alteration activitie$ .. that . . . .... -- . . . CEQA and Historical Resources would .of t,l)e Q..istoric re- example might be the removal of a 'liistoric structure from a historic district, thereby affecting the cohesiveness of the district. Remod- eling a historic structure in such a way that its dis- tinctive nature is altered would be another. The Secretary of Interior's Standards for-Rehabilita- tion provide a standard guide to (and not recommended) treatments to historic propertieS. The Standards may be obtained from SHPO. . Section 21084.1 is intended to provide, in the form of CEQA mitigation measures or project al- ternatives, new protections for historical resources which may be adversely changed by a project. Presumably, the Lead Agency may conclude that a project will have no significant environmental effect when there is no substantial evidence of an adverse change. Buildings and other historic re- sources protected from adverse changes by local regulations such as a historic district designation or historic preservation ordinance, may logicall y be expected not to suffer such changes as long as the project complies with those regulations. Where such protective regulations exist, or where rnili- gating conditions of approval are imposed. the initial study for the. development project may cite them as evidence that no impact will occur, or that any impacts will be mitigated to a level of insig- nificance. Either a Negative Declaration or miti- gated Negative Declaration could be adopted un- der those circumstances. Where there is no protective ordinance or other regulation in place or where protective actions such as mitigation measures are insufficient to avoid a "substantial adverse change" in the re- source, the Lead Agency should conclude that an adverse change will occur. In that case, an EIR must be prepared. As mentioned before, for pur- poses of CEQA a substantial adverse change in the historical resource is the equivalent of a sig- nificant adverse environmental effect. Historical Resources and Natural Disasters Most projects undertaken to demolish or re- place property or facilities damaged as a result of a disaster for which a state of emergency has been declared are statutorily exempt from CEQA (sub- I I I CEQA snd Histories/ Resources 13 4 . . .. division (b), Section 21080). Notwithstanding that or of damage to adjacent property,'' or (2) the ac- exemption, actions in the aftennatb of a disaster tion is by the SHPO. That section fur- ' which might adversely affect historicalresources ., thet establiShes the prOcedure for reView of pro- are subject to State laws governing consideration posed actions by the SHPO. of historical resources. In the wake of an ' flood, fire, or Section 5028 provides that no structure listed other natural disaster the local agency may ori.Iy in the National Register of Historic Places, the demolish or destroy those structures which are an California Register, or a localregisterthat hisbeen "immineht . threat all othef the loCal . damaged as a result of ariaturil disaster'i(to,be agency must notify and consult with SHPO im- ;:! demolished, destroyed, or significaritty' kftered . mediately if there are damaged historical resources . (except for alterations to preserve or enhance his- . whieli'miy rcqwre demolition, destruction, or sig- toric value) unless: (1) the structure represents nificant alterations. . "an imminent threat to the public of bodily harm . , , . . . . .
. : , ... . .. . ' 1, ' : ? . : ' :'.; L . __ ! :' --:. :: . , ' . ' . . . ," . ' : , ' ' . 'I ; : . . , .. Appendix 1 Excerpts from Public ~ e s o u r c e s Code I Jtcerpts from Public: Resourc:es Code Section 5020.1: . (h) "Historic district" means a definable unified geo- graphic entity that possesses a significant concen- tration, linkage, or continuity of sites, buildings, structures, or objects united historically or aestheti- cally by plan or physical development (i) Historical landmark" means any historical resource which is registered as a state historical landmark pursuant to Section 5021. U) "Historical resource" includes, but is not limited to, any object, building, structure, site, area, place, record, or manuscript which is historically or archaeologically significant, or is significant in the. architectural, engineering, scientific, economic ag- ricultural, educational, social, political, military, or cultural annals of California. (k) "Local register of historic resources" means a list of propenies officially designated or recognized as historically significant by a local government pursuant to a local ordinance or resolution. (q) "Substantial adverse change" means demolition, destruction, relocation, or alteration such that the significance of an historical resource would be impaired. .. Subdivision (g) of Public Resources Code Section 5024.1: (g) A resource identified as significant in an histori- cal resource survey may be listed in the California Register if the survey meets all of the following criteria: ( l) The survey has been or will be included in the State Historic Resources Inventory. I (2) The survey and the survey documentation were prepared in accordance with office procedures and requirements. (3) The resource is evaluated and determined by the office [of Historic Preservation] to have a signifi- cance rating ofCat;egory 1 to 5 on DPR Form 523 . ( 4) If the survey is five or more years old at the time of its nomination for inclusion in the California Registry, the survey is .updated to identify histori- cal resources which have become eligible or ineli- gible due to changed circumstances or funher documentation and those which have been demol- ished or altered in a manner that substantially di- minishes the significance of the resource. Public Resources Code Section 21 098.1: A project that may cause a substantial adverse change in the significance of an historical resource is a project that may have a significant effect on the en- vironment. For purposes of this section, an historical resource is a resource listed in. or determined to be eligible for listing in, the California Register of His- torical Resources. Historical resources included in a local register of historical resources, as defmed in sub- section (k) of Section 5020.1, are presumed to be his- .torically or culturally significant for purposes of this section, unless the preponderance of the. evidence dem- onstrates that the resource is not historically or cultur- ally significant. The fact that a resource is not listed in, or" determined ~ o be eligible for listing in, the Cali- fornia Regi_ster of Historical Resources, not included in a local register of historical resources, or not deemed significant pursuant to criteria set fonh in subdivision (g) of Section 5024.1 shall not preclude a lead agency from determining whether the resource may be an his- torical resource for purposes of this section. FLANDERS FOUNDATION APPENDIX TO REPORT TO CITY COUNCIL December 7, 1999 Floor plans and renovation plans A-3 8
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. 0 -. - X . -- .. : I-' .t>o BEDRCXM 4 14 X 14 I (,1./ t- SECOND FLOOR FLANDERS FOUNDATION APPENDIX TO REPORT TO CITY COUNCIL December 7, 1999 Copy of Web site A-4 Flanders Foundation Carmel, California Flanders Foundation is a non-profit corporation whose mission is to restore and maintain the Flanders Mansion, one of Carmel's most historic houses. UPCOMING EVENTS: Saturday, Dec. 4, 1999 2:30p.m. CELEBRATION OF PRESERVATION Devendorf Park, Carmel-by-the-Sea Join us for a Celebration of Historic Preservation! A number of local and regional preservation organizations will be here to answer your questions. This will be a real old- fashioned Carmel community event with refreshments, music, games and more. Tuesday, Dec. 7, 1999 4:00p.m. CITY COUNCIL MEETING, City Hall, Carmel-by-the-Sea Attend this ~ important City Council meeting. The Flanders Foundation will make its report to the Council and seek approval for a long-term lease of Flanders, enabling restoration and preservation of the mansion and its gardens. The Council could also choose to deny the Foundation and commence the process of sale, which would result in the loss of future public enjoyment of this community asset. Come and make your support for saving this historic treasure and open space heard! Built in the 1920's as the residence of the Flanders family, the house was purchased by the city of Carmel- by- the- Sea in 1972. With its surrounding acreage, it became part of the city's Mission Trail Preserve, which encompasses the trails used by the Padres as they walked from the Carmel Mission to Monterey. Many residents and visitors have walked this historic trail and discovered the meadow, forest and views of the Mission and Point Lobos from the Flanders site. The Lester Rowntree Native Plant Garden is just next door and is also part of the city-owned parkland. The house has only been minimally used by the community for a number of years and has suffered somewhat from "benign neglect". While the interior is in reasonably good condition, it requires extensive work to bring its major systems up to date, including electrical, heating and plumbing work and a new roof. Flanders Foundation is raising money through grants, corporate gifts and individual contributions to bring the Flanders Mansion up to date physically and to establish a fund for its long-term maintenance and operation. We are committed to keeping the house and grounds in the public domain as part of Mission Trail Preserve and are looking at low- key uses for the house that would help cover expenses. We are evaluating uses such as artist and naturalist- in- residence programs, small seminars and concerts and office space rentals for non- profit organizations. As one of only two buildings in Carmel registered on the National Register of historic structures, we believe that the Flanders Mansion should be restored for the benefit and enjoyment of the public now and in the future. Flanders Foundation is a non-profit organization which happily accepts your tax- deductible contribution to help us in our efforts. For more information, email us at flanders@englander .com or write to: Flanders Foundation P.O. Box 1414 Carmel-by-the-Sea, CA 93921 (831) 626-3826 For more details please read on ... Mission Statement Vision Statement Activities A Visual Tour Reports to the City Council Directors and Advisory Board Home 1 Mission Statement 1 Vision Statement I Activities I A Visual Tour I Reports to the City Council 1 Directors and Advisory Board Flanders Foundation Carmel, California MISSION STATEMENT OF THE FLANDERS FOUNDATION Adopted 5/26/98 To preserve, enhance, and maintain the Flanders mansion property as an historical, cultural, and educational resource for the benefit of residents and visitors to Carmel-by-the-Sea. This implements the following General Plan Policies: 1. To recognize the unique social, cultural and recreational aspirations and activities which contribute to the vitality of Carmel-by-the-Sea; to provide a range of public and semi-public facilities and programs responsive to those aspirations; to maintain both facilities and programs so as to exemplify the highest standards for the community. 2. Retain and enhance the buildings and open spaces on a voluntary basis that make especially significant contributions to the unique character and identity of the city. 3. Develop a comprehensive approach to the maintenance and preservation of the City's architectural/ cultural/ historic resources promoting voluntary efforts and, if necessary, funding sources from public and private sectors. 4. Promote property owner awareness of Carmel- by- the- Sea's significant buildings, historic traditions, and preservation policies, and foster a wider appreciation of the contributions these buildings make to the city's character. 5. Establish an archival depository for information on Carmel's history, cultural traditions and architectural contributions. Home I Mission Statement 1 Vision Statement I Activit ies 1 A Visual Tour I Reports to the City Counci l 1 Directors and Advisory Board Flanders Foundation Carmel, California VISION STATEMENT OF THE FLANDERS FOUNDATION Our village by the sea and amongst a forest has long been known not only as a cultural colony that promotes the arts ... be it painting, sculpture, crafts, photography, literature, music, dance, drama, or architecture ... but also as a community which respects and enhances the natural environment. This cultural and environmentally conscious colony has added to the inspiration and vitality of the creative spirits who watch over us in this sylvan setting. Significant architecture is an important reminder of Carmel's developmental history and provides a visual image that identifies the uniqueness of Carmel for residents and visitors alike. The General Plan speaks to this on Page 5- 1: "Culturally significant structures and sites, like architectural resources, are vital to the well- being and survival of Carmel's citizens. An understanding of its history helps define and preserve the unique qualities of Carmel. The knowledge of its cultural heritage can be fostered through awareness of its varied eras, eclectic architecture, parks, seashore and forest setting. Such knowledge will provide assurance that Carmel's sense of place will survive." Flanders mansion, a.k.a. Flanders Estate, and a.k.a. "Outland", was designed by noted San Francisco architect, Henry H. Gutterson, graduate of U.C. Berkeley and L'Ecole des Beaux Arts in Paris. During his career, Gutterson was associated with architects such as Bernard Maybeck, Willis Polk, and Ernest Bourn. In 1924 Gutterson was hired by Paul and Grace Flanders to design their home and gardens as well as to lay out Hatton Fields for development. "Outland", an English cottage design which is a substyle of the Tudor Revival, was one of the first structures in Carmel of this pictorial style of architecture and is listed on the National Register of historic structures. Enhancing its uniqueness, Flanders is part of the Mission Trail Nature Preserve and is adjacent to the Lester Rowntree Native Plant Garden. Throughout the history of Carmel there has been, and continues to be, a strong tradition to preserve and enhance the natural environment and open space. The preservation of the Flanders property within the Mission Trail Nature Preserve is essential to the Park's integrity. The association of the Flanders property with the Park and the Arboretum offers a unique opportunity for the study of Carmel's natural history as well as the possibility for the reestablishment of a botanical center. We must not lose this reminder of Carmel's past developmental and cultural history which speaks to the character of the community. It is this quality of character that prompted past Mayor Gunnar Norberg, at the time Vice Mayor, to launch a campaign and persuade the City to purchase the Flanders Estate in 1972 after Paul Flanders had died. The estate subsequently became the site of the Carmel Art Institute under the tutelage of the renowned artist John Cunningham. Carmel- by- the- Sea's General Plan speaks to the need for fostering a wider appreciation of the contributions that structures, such as "Outland" make to the City's character (P05- 5). Through private and public funding, the Flanders Foundation can further this policy by restoring and furnishing the house, by improving the landscape, and by establishing an endowment fund for its maintenance and operation. In keeping with the scale of the house, its gardens and the neighborhood, the house will maintain the air of a private residence and could provide an ideal setting for such uses as small meetings, lectures, retreats, and musical events. These types of events could foster the promotion of Carmel's historic preservation as well as Carmel's cultural and environmental heritage. The garden will retain its rustic style and provide a charmed setting for small scale activities such as poetry readings or a watercolor class. As an alternative, we are also exploring an artist or naturalist in residence program. Our Foundation seeks individuals, agencies and organizations willing to participate in the preservation of the historically designated Flanders property, not only for today, but for tomorrow. Future generations of Carmelites surely will appreciate our vision and efforts more than any of us can imagine. Home I Mission Statement 1 Vision Statement I Activities I A Visual Tour I Reports to the City Council 1 Directors and Advisory Board Flanders Foundation Carmel, California Flanders Foundation Board members participated in the annual Carmel Celebrates Community Parade on October 30, 1999. Flanders Foundation has also been sponsoring walks through Mission Trail Preserve to give people a chance to see the Flanders property, the Lester Rowntree Native Plant Garden and their relationship to this historic park and home. Home 1 Mission Statement 1 Vision Statement 1 Activities I A Visual Tour 1 Reports to the City Council 1 Directors and Advisory Board Flanders Foundation Carmel, California A Collage of Photographs of the Flanders Mansion and Grounds (Takes a few minutes to load .. . but it's worth it!) Home 1 Mission Statement 1 Vision Statement 1 Activities 1 A Visual Tour I Reports to the City Council 1 Directors and Advisory Board ........ .._, ..... -- .. -- ....... Flanders Foundation Carmel, California REPORTS TO THE CITY COUNCIL, CARMEL-BY-THE-SEA March 1999 Honorable Mayor and Council Members, We would like to take this opportunity in our first quarter report to update you on the progress of our efforts on behalf of the preservation of the Flanders Mansion and the formation of the Flanders Foundation. Currently our documents are in the Secretary of State's office and we expect a response any day. We anticipate that by May or June 1999 to have our 501 (c) 3 through both the state and federal processes. At that point we will be able to call in our pledges and receive monies toward restoration of the property. Our board has been expanding as well as our advisory board. Two original board members have moved onto the advisory board due to personal commitments, and we have added five new board members. As a result of the neighborhood meeting March 1, we are looking forward to a potential new board member joining us from the Hatton Road area. On February 18, we devoted our board meeting to the issue of fund raising. Our board was pleased to meet with and listen to Judy Dudley, a truly outstanding fundraising consultant. She has worked with Stanford University, the San Jose Symphony and the Woodside School on their capital campaigns. Her advice and observations were extremely helpful. Two points of particular interest to us and to the council were: 1. that she did not see our fundraising efforts as conflicting with Sunset Center (Mr. Carter also has stated this twice); and 2. that to raise one million dollars is very doable even in a short period. She carefully explained how she would advise us to proceed. We have been busy putting into practice her suggestions since then. We have set up our data base for fundraising and have found 2 excellent computer programs to work with in this regard. In February three of our board members and one advisory board member attended a conference for non- profits in Salinas, which they found both helpful and informative. Later this month two board members will attend a second instructional conference in Santa Cruz. The foundation's chairman and attorney met with the Executive Director of the Community Foundation regarding a possible technical assistance grant. The chairman then met with the Community Foundation's Technical Assistance Advisor, Judy Sulsona who provided the names of available consultants to do a feasibility study on long term uses. She also provided extensive information to assist us on obtaining grants fitting our particular needs. We have begun to organize our approach and contact the list of consultants. Judy Sulsona was also very informative in the area of organizing capital campaigns, corroborating much of Judy Dudley's advice. On Monday evening, March 1, a meeting with the neighbors was held at Flanders. Invitations were hand delivered to the neighborhood. The chairman updated the guests regarding the Flanders Foundation mission and vision statements and its progress to date in fulfilling them. Cooperation with the neighbors was stressed. Neighbors were invited once again to join the Foundation and become part of its planning process. A spirit of cooperation and communication was stressed even though the Foundation Board and the neighbors may not view the future of Flanders in the same way. Since the Foundation's purpose for the meeting was not only to explain its goals but to really listen to the concerns and ideas of the neighborhood, the majority of the meeting consisted of an excellent question and answer session. The meeting lasted from 7:30 to 10 p.m. and the Foundation board felt that it was very positive and constructive although there were differences of opinion. June 1999 Honorable Mayor and City Council, This is our semi-annual report to you on the progress of our efforts to preserve and restore the Flanders property for public benefit. As per the council's direction we have been diligently pursuing our incorporation process and non-profit status. We are proud to report that we are now a California non-profit corporation; that we have filed our necessary papers with the Internal Revenue Service; and that we have our E.I.N. number so that we can begin our fund raising. The foundation's subcommittee on technical assistance grants is hard at work to obtain funds for the development of operations and fund raising plans. Several funding sources and consultants are being approached. We have also applied to two trusts for restoration funds. Applications to additional organizations will be mailed by the time you receive this report. We have received several substantial pledges to date, even though we have not yet begun our formal fund raising effort. Beginning in June and throughout the summer, there will be garden parties to inform friends and neighbors about the history of Flanders as well as our plans for restoration. These events naturally will be the basis for one of several types of fund raising efforts. The foundation has developed an excellent computer data base which will greatly assist us in our capital campaign, in particular, our Flanders 500 program. Consistent with the advice of fund raising consultants, we have developed a list of major donor prospects. We will continue our education process throughout the summer by giving a series of luncheons to inform people as to the importance of Flanders and of historical preservation to our community. Flanders goes on the "web!" One of our board members is in the process of establishing Flanders own web site similar to those for other historical properties, such as Filoli. We are very enthusiastic about this. A copy is enclosed for your review. Our board of directors has listened very carefully to the concerns of the county residents and is also sensitive to the tremendous efforts being put forth on behalf of the Sunset Center project. Thus, we have come up with an approach we think is consistent and supportive on both counts. Firstly, we are now working on the establishment of an endowment fund. The thrust of the endowment effort would be to remove the issues of uses and operation and maintenance funding of Flanders from the City's concern. With an established source of revenue, rentals and revenue generating activities would no longer be a central issue to the long term viability of Flanders, thus satisfying the neighbors concerns. Secondly, we are developing an artist or naturalist- in- residence program. This program would maintain a residential use for the house in keeping with the park and neighborhood, while providing for security and caretaker benefits. The National Trust and the Cultural Council have been most helpful in connecting our foundation with many such successful programs around the state and the country. We are actively contacting and working with these groups. We will e v ~ l u a t e their programs, take their best aspects and develop a program for your revtew. Lastly, we are very pleased to report to you that we have two new board members who have joined us and two others who are prospective members. '--- In closing, we thank you for the opportunity to bring you up to date on our efforts and also for your continued support which we very much appreciate. September 1999 Honorable Mayor and City Council Members, This is our third quarterly report. We are pleased to bring you up to date on our various activities and achievements in the past three months consistent with Council's October 1998 direction. On July 19, we received from the Internal Revenue Service our tax exempt (501 c3) status. We were so pleased and proud because it came only 2 months from the time we received our State Franchise Tax Board approval. This was definitely a real feat. We are currently actively preparing our Flanders Operational Plan to present to you in December. We are working with a well known and recognized consultant. Our foundation spent several hundred dollars also to join the "Alliance of Artists' Communities" which is a national organization whose mission it is to work with prospective and established artists-in-residence programs. This group has been extremely helpful to us. Their "How To" manual has become invaluable to us and our consultant. In addition, one of our sub-committees has contacted directors and administrators of other specific programs across the nation to learn from their experiences. We have also hired a community outreach consultant who has already proven to be enormously effective and valuable. In our last report we mentioned that we would be doing a series of garden parties to inform and acquaint friends and neighbors about our foundation as well as about the history of Flanders. Our first event was July 24, and it was a wonderful success with sixty people attending. Our president made a presentation and there was time for lots of questions (pro and con) and answers. It was a very lively and productive afternoon. We gained several major contributions and a lot of new supporters. People were invited who knew little or nothing of Flanders or our group. We did this deliberately and felt very good about the overwhelmingly positive response. To keep a little balance there were a couple of people who felt that the property should be sold. Their position was respected but not supported by the remainder of the guests. There will be another gathering September 11, then two more later in September and early October. On August 11th and 28th we conducted two highly successful "Discover Flanders" walks. We took people from the Rio Road entrance of Mission Trail Nature Preserve up the Flanders Trail to the mansion. Gary Girard and Marge Adams gave a talk on the Lester Rowntree Native Plant Garden and the president of the Flanders Foundation spoke about the history of the house, its association with the Mission Trail Nature Preserve and the mission of the Flanders Foundation. Following the talks and questions and answers Gary toured people through the Native Plant Garden. The first walk generated over fifty (50) calls. Twenty some people attended the first hike and 36 attended the second. We missed a few people at the sign-in table on the initial outing, but were much more vigilant in recording names of attendees the second time around. The walks were a great success and garnered lots of recognition for Flanders, the native plant garden and Flanders Foundation. Two professionals offered pro- bono services and one major donor came forward. People are so pleased to see and experience these very special community assets. Some of the seniors have lived here their entire lives and were not familiar with these beautiful properties. On Sunday, August 15th, the Flanders Foundation hosted a tour and refreshments at the mansion for the Roycroft Foundation of East Aurora, New York. This is a very prestigious historical preservation group dedicated to all aspects of the arts and crafts movement of the early 20th century and the perpetuation of that movement. Their visit to the Monterey Peninsula was in conjunction with the 7th Annual California Arts and Crafts Symposium at Asilomar. As part of the conference program there was a tour in Carmel-by-the- Sea of homes and gardens that reflect the styles and values of the arts and crafts period. The reception at Flanders which followed the tour, allowed the Roycrofters, members of the Flanders Foundation, and the owners of the toured properties to "network" with each other about preservation issues. We will very shortly commence our capital campaign "kick off''. The Flanders Five Hundred will be the major component of our plan. There will also be gifting opportunities at all levels so that everyone who wants to help "SAVE FLANDERS" can feel that there is a role and place for them in our campaign. As a part of our overall fundraising efforts, we continue to work on grants, however we do not see them as our greatest financial source. As we have learned from the numerous fundraising seminars plus the meeting with a local fundraising consultant, grants account for the smallest percentage of a capital campaign. The community, however that may be defined, is where the real financial support comes from. The California Preservation Foundation, the Monterey County Preservation staff members, and the new president of our regional parks district, etc. have all been of great assistance in recommending granting sources and their contacts. It is of great satisfaction to us that so many local as well as statewide groups are supportive and helpful to our foundation. In conclusion we thank you for granting us the opportunity to pursue our goals and to present you with this update. Sincere regards, Melanie C. Billig President of Flanders Foundation ljome I Miss1on Statement 1 Vision Statement I Activities I A Visual Tour I Reports to the City Council I Directors and Advisory Board Flanders Foundation Carmel, California BOARD OF DIRECTORS Melanie Billig, President Paul Eastman Alice Englander, Treasurer William Englander Gary Girard, Secretary Diane Hydorn, Vice President Jerry Kimmel Elizabeth Sooy Lou Ungaretti Yoko Whitaker Laurel Wharf ADVISORY BOARD Margery Adams Carol Bell Maggie Downer Paul Eid Hugo Ferlito Diane Flanders Jan Hardy Glenn Leidig Kati Lewis Mary Anne Teed Lloyd Mary Ann Matthews Martin Moss Enid Sales - Cynthia Schelcher Joyce Stevens Home I Mission Statement I Vision Statement I Activities I A Visual Tour I Reports to the City Council 1 Directors and Advisory Board ~ ~ .. ~ - - ~ FLANDERS FOUNDATION APPENDIX TO REPORT TO CITY COUNCIL December 7, 1999 Copy of I.R.S. letter granting tax exempt, non-profit status A-5 FLANDERS FOUNDATION APPENDIX TO REPORT TO CITY COUNCIL December 7, 1999 Consultants' resumes A-6 12:51 KUEJN,MEJIA & ASSOC. INC. 6263826 NO. 782 LESLIE E. CPA. C!A P LO. Boi 1398. Pebble Bea!j;b. California 93953 (831) SUMMARY: I am a Certtned Public Accountant and Certified Internal Auditor with over 22 yean of divene work experience, Including nonprofit organi.r.ations. As a coasuhant, I bave prepared business plaas and projected financial statements for. variety or clients. EXPERIENCE: EDUCATION: 1997-Present LesUe E. Klein. CPA Pebble Beach, California Financial Consultant 1998-1999 The SPCA of Monterey Cowny, Monterey, California ChiefFiiwlcial Oflicer 19811997 San Dieeo Gas & Electric, San Diego, California Director - Customer Services Acting Treasurer & Finance Division Manager Customer & Marketing Services Division Manager Manager - Busineu Plannins & Budget Manaser- Accounting Services Manager - General Aceounting Manager - Audit Services Supervisor - Financial & Operational Audits Auditor 1980.1982 E. F. Hutton Life Ins!lTIOCe La Jolla, California Accountant 19791981 Cr.>uunm:e Boncsharefb Inc., Kansas City, 1\.fissouri Accounting Manager 1977-1979 Touche Ross & Co .. Kansas City, Missouri Auditor Bachelor of Science in Business Administration. Major Accounting May 1977, Kansas State University, 3.8 OPA University ofChicaao, Manaaement Development Program, 1993 Ongoing participation in technical aDd leadership development programs DESIGNATIONS: Certified Public Aecountant, 1979 Cenified Internal Auditor, 1983 MEMBERSHIPS: American Institute of Certified Public Accountants Institute of Internal Auditors COMMUNITY: California Coastal Rural Development Corporation, Director, 1998-1999 Central Cout Small Business Development Center, Counselor, 1998-1999 RECOGNITION: San Diego YWCA Tribute to Women and Industry Award, 1994 i;llal McGRATH MASSIE BUSINESS CO NS ULTANT I SPEAKER International Headquarters: 430 Airport Blvd .. Suite c. salinas. Cr\ 93905 Mailing Address: P.O. Box 373, Salinas. CA. 93902 1: 831 /757-8514 F: 831/751-6885 E: massielO@sa!inas net wv.rvv: www.salinas.net/massie 1 o Professional Background Brigid McGrath Massie, M.S. W., M.B.A. Business Experience Owner, McGrath-Massie Business Consulting. Provide human resources, - marketing and -strategic planning consultation and training for individuals, businesses and non-profit organizations. Provide direction in the recruitment, selection, motivation and training of executives and employees. Owner, Training for Success. Create and deliver keynote presentations for National, Regional and local Associations. Oients include the National Restaurant Association, the International Council of Shopping Centers, Sun Microsystems, the California School Boards Association and dozens of others. Co-Founder and Co- Facilitator of Leadership Salinas. Education Master's Degree in Business Administration, Pepperdine University Master's Degree in Social Work, with distinction, California State University, Fresno Bachelor's Degree, cum laude, California State University, Fresno Certifications and Credentials Advanced Certification, Academy of Certified Social Workers Community College Teaching Credential in Public Services and Administration Community College Teaching Credential in Business and Industrial Management Certified Diversity Trainer, ProGroup, Minneapolis, Minnesota Memberships Society of Human Resource Management President, Central Coast Human Resource Association National Association of Female Executives Salinas Valley Chamber of Commerce Founding Member, Hispanic Chamber of Commerce Active Corps of Executives, Small Business Administration National Alliance for the Mentally Ill Publications Author of ""What Do They Stzy W1zen You Leave the Room? Eudemonia Publications. Author of Selling far People VVho Hate to Sell. Prima Publications. Flanders Foundation A California Nonprofit Public Benefit Corporation P.O. Box 1414 Carmel-by-the-Sea, CA 93921 -1414 Telephone and Fax {831) 626-3826 www .flandersfoundation.org info@flandersfoundation .org Oral Comments October 29, 1998 Council Meeting Honorable Mayor and City Council: My name is Melanie Billig and I am representing the Board of Directors of the Flanders Foundation. We would like to thank you for placing this issue on your agenda today. Your action at the last council meeting finally galvanized many of us who have been wanting to find a way to protect and utilize the Flanders property for the community. Our Mission and Vision Statements speak to our deep desire to preserve and restore this important historical treasure for future Carmelites to ertioy. This is why we are here today to ask you to allow us one year in which to accomplish the following three tasks: 1. To obtain a 501(c)3 status; 2. To do a feasibility study to see if our proposed restoration and use as a city art, history and natural history museum are viable; 3. Raise pledges and obtain grants for the first stage of repairs. As I mentioned, we would like to use the home as a museum to display the city's art collection, house its archives and provide a natural history of Carmel and immediate area. We also envision that this would be a living museum wherein it would be used by community groups for small meetings such as: City Council and Planning Commission r e t r e a t s ~ etc. Art seminar or class Poetry readings Small chamber music concerts in living room Get togethers of other non-profit organizations All activities would be of a smaH scale befitting the house, grounds and neighborhood. We assure you that we are involving the neighbors and plan on being good neighbors should you allow us the opportunity. Member of Alliance of Artists' Communities Our proposal has been met with much enthusiasm. We already have several pledges and contributions. Our operating board is adding new members as is our honorary board. We realize the long history and many failed attempts to find a use and get a project going. However, we believe that now is the time and this is the project. Thank you for the opportunity to present this to you. 26 May 1998 Honorable Mayor and City Council Members RE: Flanders Foundation Proposal The Flanders Foundation is a recently formed group of citizens who want to preserve for the community, now and in the future, the venerable property known as the Flanders Mansion. Our intent is to raise monies to restore and maintain this property in perpetuity, and we respectfully request the Council to allow the Flanders Foundation one year in which to effectuate this goal. Enclosed you will find our Mission and Vision Statements which we hope you will find compatible with Carmel's General Plan and our community's goals. Sincerely, Flanders Foundation Board Current membership 5/26/98 Margery Adams Melanie Billig Paul Eastman Bill Fleming Gary Girard Diane Hydorn Enid Sales Lou Ungaretti Yoko Whitaker Marsha McMann Zelus MISSION STATEMENT OF THE FLANDERS FOUNDATION To preserve, enhance, and maintain the Flanders Mansion property as an historical, cultural, and educational resource for the benefit of residents and visitors to Carmel-By-The-Sea. This implements the following General Plan policies: G4-l To recognize the unique social, cultural and recreational aspirations and activities which contribute to the vitality of Carmel-By-The-Sea; to provide a range of public and semi-public facilities and programs responsive to those aspirations; to maintain both facilities and programs so as to exemplify the highest standards for the community. G5-l Retain and enhance the buildings and open spaces on a voluntary basis that make especially significant contributions to the unique character and identity of the city. 05-4 Develope a comprehensive approach to the maintenance and preservation of the City's architectural/cultural/ historic resources promoting voluntary efforts and, if necessary, funding sources from public and private sectors. 05-5 Promote property owner awareness of Carmel-By-The- Sea's significant buildings, historic traditions, and preservation policies, and foster a wider appreciation of the contributions these buildings make to the city's character. P5-16 Establish an archival depository for information on Carmel's history, cultural traditions and architectural contributions. VISION STATEMENT OF THE FLANDERS FOUNDATION 5/26/98 Our village by the sea and amongst a forest has long been known as a cultural colony that promotes the arts, be it painting, sculpture, crafts, photography, literature, music, dance, drama, or architecture. It has added to the inspiration and vitality of the creative spirits who watch over us in this sylvan setting. Carmel, in its inception as a community, respected and enhanced the natural environment. Significant architecture is an important reminder of Carmel's development history, as well as providing a visual image that identifies the uniqueness of Carmel for residents and visitors alike to remember. The General Plan speaks to this on Page 5-l: uculturally significant structures and sites, like architectural resources, are vital to the well-being and survival of Carmel's citizens. An understanding of its history helps define and preserve the unique qualities of Carmel.The knowledge of its cultural heritage can be fostered through awareness of its varied eras, eclectic architecture, parks, seashore and forest setting. Such knowledge will provide assurance that Carmel's sense of place will survive." Flanders Mansion, a.k.a. Flanders Estate, and a.k.a. Outlands was designed by noted San Francisco architect, Henry H. Gutterson who had degrees from U.C. Berkeley and L'Ecole des Beaux Arts in Paris. During his career,Gutterson was associated with architects such as Bernard Maybeck, Willis Polk, and Ernest Bourn. He was hired in 1924 by Paul and Grace Flanders to design their house and gardens as well as to lay out Hatton Fields for development. uoutlands" English Cottage design, which is a substyle of the Tudor Revival, was one of the first structures in Carmel of this pictorial style of architecture. Flanders is bordered by Mission Trails Nature Preserve and the Lester Rowntree Native Plant Garden, enhancing its uniqueness. (continued on page 2) - - - ~ - - Page Two Flanders Foundation Vision Statement We must not lose this reminder of Carmel's past developmental and cultural history which speaks to the character of the community. It is this quality of character that prompted past Mayor Gunnar Norberg, at the time Vice Mayor, to launch a campaign and persuade the City to purchase the Flanders Estate in 1972 after Paul Flanders had died. It then became the site of the Carmel Art Institute under the tutelage of artist John Cunningham, and played an important part in Carmel's art history. The General Plan speaks to the need for fostering a wider appreciation of the contributions that structures,such as uoutlands", make to the City's character (POS-5). The Flanders Foundation can do this by restoring and furnishing the house, and improving the landscape through private and public funding, as well as establishing an endowment fund for maintenance and operation. We can establish a non-profit museum to house and exhibit the City's large art collection, provide archival storage of which the City has great need, and create a permanent exhibit of Carmel's history in photographs. The house will maintain the air of a private residence and provide an ideal setting for small meetings and lectures in keeping with the scale of the house and gardens, as well as the neighborhood. These events will foster the promotion of Carmel's historic preservation and Carmel's cultural heritage. The garden will retain its rustic style and provide a charmed setting for activities such as poetry readings or a watercolor class. We also need to be mindful of the kind of legacy we are leaving for future generations of Carmelites. We need to preserve and promote Flanders Mansion for tomorrow as much as for today. Hopefully,the future will appreciate our vision and efforts more than we can imagine.