I didn’t see this at Bob’s site. I received it via e-mail earlier tonight.
MATEEL BOARD OF DIRECTORS\’ SUMMARY OF REGGAE ON THE RIVER(TM) OFFERS
[April 24, 2007. Redway, CA]. There has been a call for the Mateel Community Center (MCC) to be more forthcoming with details of the negotiations with Tom Dimmick over the future of Reggae on the RiverTM (ROTR). We have been as open as possible without disrupting the flow of our settlement talks. In the interests of dispelling rumors and, more importantly, keeping the community informed, we have posted Tom Dimmick’s written offers made outside of mediation on the Mateel website and provide here a brief summary of the complex offer on the table at this time.
The MCC’s Board of Directors does not want to sell ROTR. We would prefer that Tom Dimmick honor our lease and allow 2B1 Multimedia to produce the show and for the community to have an event this year. 2B1 Multimedia owns the license to produce Reggae on the RiverTM in 2007. Any deal that we make to sell ROTR will be subject to approval by the membership.
On the table are two offers to Dimmick. One is in the form of a lump sum payment by Tom Dimmick for the trademark, the right to produce the music festival, and the infrastructure. The alternative is a sale of the same things with payment on a yearly basis as long as he continues to produce the event. The counterproposal put forth by Tom Dimmick indicates he is not interested in endowing the Mateel up front, but instead would like the Mateel to still share the risk of ROTR being produced every year by making yearly payments.
The MCC has realized and expected to realize $250,000 annually from ROTR for the next nine years and that the Mateel paid for and owns the infrastructure that exists on Dimmick’s property. In Mr. Dimmick’s published letter to the community, he estimates this value to be around $300,000. Standard accounting practices require the inclusion of any labor to the construction of a long-term asset. The MCC’s Board of Directors is confident that the actual cost of the infrastructure is much higher and have initiated an appraisal. Along with the value of the infrastructure, the Dimmick Ranch also is holding onto a lease payment of $33,333 made in October 2006 towards payment of the lease for 2007, even though Tom Dimmick has stated that there to be no valid lease in place between the MCC and himself.
In short, the Dimmick Ranch is holding on to community funds of the MCC, while we are forced to conduct fundraisers to raise money so events like the high school prom that happened last weekend could go on.
THE MCC OFFER TO THE DIMMICK RANCH
The Mateel Community Center fully recognizes the importance to the broader community of nonprofits needing to have the event this year. We have asked, and will continue to ask for, a guarantee that the same non-profit vendors that attended ROTR last year would be offered the opportunity for the remainder of the present lease term. We included a non-competition clause that prohibits Dimmick from producing any event on his property during the first week of June so as not to conflict with the Summer Arts Fair. We’ve also asked that they allow all coordinators who worked the 2006 event to work on the 2007 show.
Thus, our initial offer to the Dimmick Ranch or through a company in which he has the majority ownership is that he shall purchase the right to produce Reggae on the River and the ROTR trademark for $2.9 million (the lump sum option). Additionally, Dimmick would pay us for the professionally appraised value of the trademark.
The equipment used to produce ROTR belongs to the organization whose funds were used to purchase it unless that entity has been reimbursed. Any equipment (canopies, stoves, refrigerators, furniture, etc.) that Tom Dimmick needs to produce ROTR in the future will be made available to him either by sale or rental. The MCC would retain the right to reproduce and sell all ROTR trademark materials including graphics and posters that pertain to ROTR events prior to the 2007 event. The MCC will receive back all its original art and graphic archives from past ROTR events.
The People Productions lawsuits would be resolved by an agreement to complete an accounting of the 2006 event; an agreement by People Productions to provide all documents necessary to perform an audit of any of the prior events in case any audits are conducted by government agencies; and an agreement to indemnify the MCC for any damages including additional taxes and/or penalties the MCC is ordered to pay by any government agencies resulting from the failure of People Productions toproduce documentary support for such an audit.
2B1 Multimedia will assign its license to Tom Dimmick for the payment of $342,000. 2B1 Multimedia will have shared video production rights to ROR through a separate agreement with Tom Dimmick.
Performing artists booked by 2B1 for 2007 festival will be transferred/renewed to Tom Dimmick. 2B1 ticket sales account will be transferred to Tom Dimmick in a manner to avoid fees/charges from ticket sales agency.
We’ve also offered Tom Dimmick an alternative for him to purchase the ROTR trademark with the right to produce ROTR through a production company formed and owned by himself. The payments would be $240,000.00 per year or $20.00 per ticket, whichever is greater, with the ticket sales to be handled by an agreed-upon ticket agency. Tom Dimmick would give assurances of the production of the event by a certain date every year which will then
obligate him to make the minimum payment to MCC for that year. If those assurances are not provided, the MCC would have the option to repurchase the ROTR trademark for $1.00 and produce the event itself. MCC would have an option to lease Tom Dimmick’s property for a minimum of five years in the event that the festival reverts to the MCC.
The infrastructure that presently belongs to the MCC on the Dimmick property would be purchased by Tom Dimmick at its appraised value and paid over the remaining term of the existing lease. Additional terms would be the same as the alternative offer above.
THE COUNTER-PROPOSAL
In response, Tom Dimmick has offered $200,000 per year, starting in 2008. Tom Dimmick could choose at any time not to do the festival, leaving it to MCC, who would have a hard time scrambling to find a producer. If we could not find one, the MCC would get nothing.
Tom Dimmick would pay $320,000 over nine years for our infrastructure and equipment.
For this year, Tom Dimmick would purchase 2b1 Multimedia license from for the $342,000 that he has spent so far. The MCC would have to pay off any artists booked that People Productions doesn’t want in their show.
Tom Dimmick requests all of 2b1’s to-date ticket sales for ROTR, which to our knowledge have far outstripped the sales of tickets to Reggae Rising.
Tom Dimmick’s offer limits our access to the disputed ROTR books for the 2005 and 2006 concerts.
FINAL THOUGHTS
Negotiations are not over. Above we presented the initial exchange of offers. But we are still far apart. The Board of the MCC remain committed to protect the non-profit community center’s assets for future generations. Whether or not there will be a Reggae on the RiverTM this year in 2007 or not remains Mr. Dimmick’s choice.
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April 25, 2007 at 3:15 pm
Anonymous
Dimmick Ranch Press Release
April 24, 2007
In fulfilling the Dimmick Ranch commitment to this community, we have been in active settlement talks with the Mateel Community Center as evidenced by the documents posted to the MCC Web site and those that follow. In the interest of transparency, we have included the following to ensure the public a near complete view of negotiations. We have excluded a “100-Year Deal” offer presented by Boots Hughston and Taunya Staupp over Easter weekend as the MCC has stated that the third-party negotiations are not legitimate offers, despite the board’s approval of Boots’ negotiation attempts. These details were not made available previously in the interest of advancing the discussion; however, at this point, the parties are at an impasse.
Our goal in these proposals, as we have maintained since last fall, is to produce a successful event on Dimmick Ranch that supports our community and makes public safety a priority. This is why I originally entered into the contract for public use of the Ranch and included “Item 10” in the original lease agreement that assures People Productions will be the event producer for the term of the lease. I was banking on 23 years of production history and the capable local groups and individuals that have made the annual reggae festival happen.
Based on these failed negotiations and aggressive tactics, we question the MCC’s goal and call on the community to question its goal, as well.
Prior to drafting the formal proposals you see here and in the interest of avoiding a public spectacle, I suggested to the MCC board that I was willing to negotiate a truce. This included leaving the Reggae on the River name untouched (to avoid our current dispute over its value), substantial payments to MCC, provisions for reimbursing the MCC for the infrastructure improvements and ending the Dimmick Ranch’s relationship with the MCC. These early attempts were rejected.
The last offer made to the MCC by Dimmick Ranch includes:
· $342,000 to 2B1 for the 2007 license of the trademark in “Reggae on the River” name, and
· A guarantee of $240,000 per year (nearly $2 million total) to the MCC for the remaining eight years of the conditional use permit (CUP).
This offer wasn’t accepted either, as the MCC has acknowledged. The counter proposals put forth by the board are exorbitantly expensive and filled with aggressive controls and constraints on the use of my property, not just for the term of the lease, but forever. All seems aimed at ensuring the MCC a steady income stream from the ROTR name in perpetuity – an unreasonable goal given that no trade name has infinite value, and I have been willing to preserve the event for the community under the Reggae Rising name. In fact, two other annual music festivals in the U.S are already using the Reggae on the River name. The MCC has also refused, despite repeated requests that might help to inform our offers, to make the details of its agreement with 2B1 available for review.
With the launch of Reggae Rising in February, we paved the way toward fulfilling our goal. In developing the Web site, talking with the local non-profits and coordinators and securing top-notch talent, we’re moving forward to put on the best reggae festival and community fundraiser yet.
We are truly disappointed that we’ve been unable to resolve our differences quickly and quietly.
Very sincerely,
Tom Dimmick
April 25, 2007 at 3:50 pm
Anonymous
Thank You Tom Dimmick for
“moving forward to put on the best reggae festival and community fundraiser yet.”
Which I assume will be alot of fun but financially unsucessfull due to our community centers inability to “resolve our differences quickly and quietly.”
Jah Says RISE UP!
April 25, 2007 at 4:05 pm
Eric V. Kirk
The state of affairs cannot be blamed solely on either side. The parties should have been in mediation the day after the membership meeting last November, if not before. Negotiations should have been turned over to attorneys immediately. Instead we saw an elaborate game of chicken in which both sides underestimated the resolve of the other.
And I don’t mean to keep harping on this, but if you believe the fault is with the Mateel Board then you should have encouraged three people to run for the positions. A “pro-People Productions” slate sweep would certainly have sent a message.
And quite frankly, I blame the community here for lining up into partisanship rather than constructive participation. We should have started a “peace commission” ready to make demands of both sides, before it came to that fateful moment in December.
And what these emerging documents reveal is that the issues are much more complex than 90 percent of the community has acknowledged. Too many old grudges have shaped the discussion.
And even at this late hour as the often badmouthed attorneys have worked around the clock to resolve this matter, the discussion continues to be dominated by finger pointing.
This is a community failure. It’s not the fault of lawyers. It’s not the fault “outsiders” (when did we become so xenophobic?). We need to own it.
April 25, 2007 at 5:02 pm
Anonymous
Well Eric it sounds like a job for the UNITED NATIONS to resolve.
Blue Helmets Everywhere!
April 25, 2007 at 5:15 pm
Anonymous
Peace Commissioners appointed themselves in November. The two sides weren’t interested in peace. Each thought/thinks? that they could win it all. The bottom line is, either Carol’s in control or out the door. The Mateel wouldn’t defend its property only to hand the chiseler a new chisel. And Tom makes it clear that she’s more important than Reggae. Happy hoedown, SoHum.
April 25, 2007 at 5:22 pm
Anonymous
I’ve just been reading through the two press releases (not the attorney’s documents) and trying to cut to the cash to see if I can understand the offers. They are, to some extent, apples and oranges. Here’s what I came up with to place the offers on a similar financial footing.
…
The Mateel’s offer:
This seems pretty clear in terms of cash value although I have left out a number of caveats discussed in the Mateel press release. I would hope that if the cash numbers were close the additional assurances and indemnifications could be worked out.
2.9 million up front
The payments on a secured 2.9 million dollar loan at 6% over 10 years are just under 400k annually.
Tom’s offer:
Although it’s not completely clear from Tom’s press release exactly what Tom’s expects to receive in exchange for the payments he offers, his offer could be parsed out in this way:
342,000k this year.
This basically covers Boots and some minor amount of expenses.
8 annual 40k payments for the infrastructure:
The present net value of 8 annual payments of 40k at 6% is 250k for the infrastructure that Tom valued at 300k without including the labor for installation.
8 annual 200k payments for the license/CUP/trademark
The present net value of 8 annual payments of 200k at 6% is 1.24 million.
It appears that Tom is essentially asking the Mateel to take 342k plus an unsecured note for 1.5 million at 6% over 8 years for the right to use the CUP and produce ROTR.
The value of the Reggae Festival:
Based on the numbers presented at the community meeting and on the possibility of tightening up on overall expenses by 5% RR has the potential to realize upwards of 750k per year from producing the show. Reduce costs by 15% and the net goes up to well over a million a year even with no increase in income and without counting the income made by Tom Dimmick.
It seems fair to assume that with the right incentives (100% ownership should do) and careful business management the event could generate 800k+ per year for the owners. If you made 8 payments of 800k on a note at 6% over 10 years the present value of the note would be approximately 5.89 million.
…
Hope this helps people to understand the distance between the two offers.
April 25, 2007 at 5:44 pm
Anonymous
and we’re doing this for the community, right. smoke some more.
April 25, 2007 at 6:49 pm
Anonymous
The peace commissioners did not grok the complexity
April 25, 2007 at 8:03 pm
Anonymous
SOOOO, if ROTR has sold more tickets
than RR, doesn’t that mean ROTR wins?
April 25, 2007 at 8:25 pm
Eric V. Kirk
It has been suggested to me by a reliable source on the Mateel side that my comments above were unfair as the Mateel sent the other parties letters prior to the Annual Meeting “practically begging” for mediation.
Of course, I haven’t reviewed any of those documents although I seem to remember that one or two of them may have been released. I’ll leave it to the parties to characterize their efforts to resolve the matter early on. I just remember huge gaps of time with no news, rumors of a mediation happening or not happening, and then abruptly it all collapsed at the end of December.
I do have more specific criticisms of both sides in all this and when it’s all over I’ll share them. The criticisms won’t be constructive at this point, and would just give everyone something else to yell about.
April 25, 2007 at 8:43 pm
Siena
Regarding the mediation process: I have been hearing that
Mediation is not respected much
in our community because the mediation
rules are not enforced. Using
competent mediators is crucial
if we are to solve our community
problems.
So, for next time, let’s try it. Right now, I don’t see why
we need any large reggae festival.
I haven’t heard much from the
nonprofits. Can they make their
money from 2 or 3 smaller events?
Why do we need a world class event
here with all the complications?
April 25, 2007 at 10:56 pm
Anonymous
Why do we need a world class event
here …
Gold encrusted boots! DUH!
April 26, 2007 at 4:56 am
Anonymous
Why do we need a world class event
This is the typical attitude of resentment that the plebeian takes towards refined culture, manifesting itself as a reactionary dissatisfaction that often ends in the statue smashing of fascism.
April 26, 2007 at 5:39 am
Anonymous
There is world class wrestling too. Is that refined culture?
April 26, 2007 at 6:15 am
Anonymous
Wrestling, world class or not, has almost no cultural significance whereas music has very much.
April 26, 2007 at 6:29 am
Anonymous
Good community, close knit, also has much cultural significance.
April 26, 2007 at 6:52 am
Anonymous
Significance yes, but not necessarily class, which is something that requires the development of taste.
April 26, 2007 at 2:52 pm
Anonymous
And even at this late hour as the often badmouthed attorneys have worked around the clock to resolve this matter, the discussion continues to be dominated by finger pointing.
Yeah the lawyers are doing there job, Pay Them.
April 26, 2007 at 2:54 pm
Anonymous
The value of the Reggae Festival:
would be approximately 5.89 million.
what the hell is the MCC trying to sell it for 2.9 mill for. obviously because your math skills suck as much as the accountant who said 3000 tickets equals 2 mill.
April 26, 2007 at 3:02 pm
Anonymous
Eric
Your response was correct. this whole thing should have been handled differently. but a pro PP board would have only created more sniveling about PP trying to take over the world. perhaps if the people who ran and were elected to the board would have been interested in resolving the conflict instead of gettting rid of PP then they would have tried to resolve the conflict instead of perpetuating it into the drama that it has become. A little management skills would have been nice, but like many non profits they are seriously lacking.
note I am assigning blame to the Mateel board and ED, as RotR was there event and now it looks like it doesn’t exist any more.
the one good thing that has come of this is I have been able to blog here instead of downloading porn.
April 26, 2007 at 3:13 pm
Eric V. Kirk
Hmmmmmm. Should I provide some porn links for convenience? It’s all about multitasking in an instant information world.
April 26, 2007 at 3:14 pm
Anonymous
Reggae on the River Press Release
Vidalia, LA (OPENPRESS) April 25, 2007 — Henry Turner Jr. and Flavor and Cosmic Force will co-headline the 3rd Annual Reggae On The River with special guest performers Ricky Starr and Cat the Mystic, along with selected acts from the Vermont Reggae Festival and traditional blues, gospel, African, Caribbean reggae and world beat music acts, to be announced soon.
This years’ theme for the two-day, family oriented, event is ‘Irie Healing, One Love –Aiding Racial Harmony’. The festival will also feature cultural food presenters, Jamaican/African & Native American arts and crafts booths, plus an on and off site Irie One Love Reggae themed art gallery, as well as a spoken word, court vibing poetry and storytelling. For an additional treat WMPR’s DJ Selector from Jackson, Mississippi, will be performing with other guest DJ’s. Pre and after parties are scheduled, in Natchez, at Bobby J’s, Under the Hill Saloon and Different Accents.
Admission is free, until 2pm, but in the spirit of love, a donation of $7.00 in cash or non-perishable food is appreciated. After 2 p.m. general admission/donation is $10.00, students and senior citizens $5.00, children 6 and under free at the gate, advance tickets $7.00. Donations benefit Feed the Hungry in Vidalia, Louisiana and The Stewpot in Natchez, Mississippi.
The festival will take place at the Vidalia Amphitheatre, located at 100 Front Street, Vidalia, Louisiana, from noon to midnight. Event producers are Ras Cathe’ and Henry Turner. For tickets log on to http://www.brownpapertickets.com or call Ras Cathe’ at 225-993-5595, Henry Turner at 225-952-0784 or Joanna Ballard at 318-868-3840.
Reggae On The River honors the 100- year-old tradition of marching from Vidalia, Louisiana to Natchez, Mississippi on Memorial Day, to honor the “Civil War Freedom Fighters” buried at Natchez Memorial Cemetery. This tradition was started by members of the Grand Army of the Republic, along with their Women’s Relief Corps organization.
Additional information contact:
Marcia N. Groff
310/855-0498
Entertainment Enterprises
656 West Knoll Drive, #104
West Hollywood, CA 90069
Complete Press Release
April 26, 2007 at 4:40 pm
Anonymous
re: Thu Apr 26, 07:54:00 AM
what the hell is the MCC trying to sell it for 2.9 mill for.
Good question. I imagine it’s hard to see an event at a price that leaves no room for profit. Do you think 400k profit plus the payments to Dimmick for leasing the property per year is enough? Too much? Too little?
obviously because your math skills suck as much as the accountant who said 3000 tickets equals 2 mill.
It’s all about the assumptions you start out with. After that, it’s just arithmetic.
April 26, 2007 at 4:41 pm
Anonymous
whoops… that should have been:
it’s hard to sell an event…
April 26, 2007 at 5:29 pm
Anonymous
You guys need to read the lawsuit filed. The Mateel has documentation that they had resolved the issue. They gave PP instruction to change their accounting operations and it was ignored. They had promises that the bottom line would hold even after the festival. This conflict wasn’t created by the MCC. It was daylighted when the plan to force the Mateel to sell by cutting off their funds became obvious. The letter to the community from Tom already said the $300k was there. They just didn’t give it up.
April 26, 2007 at 9:46 pm
Anonymous
It appears to me that the MCC finds itself being led by someone who knows not and knows not that she knows not.
Someone needs to tell the BOD to stop backing a loser with a bad track record. The name of reggae on the river is all that is left.
How sad.
April 26, 2007 at 10:59 pm
Anonymous
This just in from Bob Doran…
A well placed source tells me that Judge Watson issued his ruling on the Mateel request for a preliminary injunction today.
He ruled against the injunction, which would apparently mean that Reggae Rising can now move forward unencumbered.
Details as they become available…
As promised, some details. I got a call a few minutes ago from Mateel E.D. Taunya Stapp. She was not happy about this post, in part because she learned that the judge ruled againt the Mateel, but also because she feels I overstated things, first by omitting the word preliminary in my description of the injunction (correction made) and second by suggesting that Tom Dimmick and People Productions are now “unencumbered.” (For what it’s worth, I did waffle a bit by saying “apparently.”) As she pointed out, the ruling does not decide any of the issues brought up. She suggested I call the Mateel’s attorney, Bill Bragg, to have him explain what this means.
I did.
He had not seen the ruling yet, which, he explained, has to do when his people check the mailbox at the courthouse.
To quote Mr. Bragg regarding what it means: “It’s as clear as mud. It does not resolve any of the sustentative issues.
“If the preliminary injunction was denied, the case remains open.”
Bragg and Stapp both figure the focus may now shift to the permit. As I pointed out to Taunya, it seemed pretty clear at the first hearing that the Planning Commission does not want to make the decision about who gets to put on Reggae, nevertheless the Mateel side was adamant in stating that the permit was in their name.
Taunya contends that Reggae Rising would have to get its own permit.
Bragg agreed that the Planning Dept. does not want to rule on the question, but he said, the Mateel could force the issue by suing the county to make them decide. As Tanya put it, “Now we’re going to have to play hardball.”
April 28, 2007 at 3:12 pm
Anonymous
I find it difficult to believe that playing hardball is really Tanya’s specialty, maybe a pie eating contest, or a festival ruining contest, she’s good at that.
April 28, 2007 at 4:42 pm
Anonymous
Poor PP, if only Tanya were as easy to attack as Carol and little Tommmy.
May 1, 2007 at 4:26 am
Anonymous
Anonymous said…
Poor PP, if only Tanya were as easy to attack as Carol and little Tommmy.
Sat Apr 28, 09:42:00 AM
apparently they are if you know how to type. here is an example;
you are a petty insignificant blog on the blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog blog