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.
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.
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.