American Philatelic Society -- APRL Meeting Minutes

Minutes (Pending Approval of the Trustees)
American Philatelic Research Library
Board of Trustees Meeting
2:00 p.m. e.s.t., Tuesday, March 30, 2004
Telephone Conference Call

The meeting of the Board of Trustees of the American Philatelic Research Library (APRL) was called to order at 2:01 p.m. by Charles J. Peterson, President. Other Trustees on the conference call were Hubert C. Skinner, Vice President; Peter D. Martin, Treasurer; Herbert A. Trenchard, Kenneth B. Grant, W. Danforth Walker, David L. Straight, William Bauer, and Ken Lawrence. APS/APRL staff on line were Bob Lamb, Executive Director; Gini Horn, APRL Librarian; Scott A. Frazier, Controller; and Dennis Gilson, APS/APRL Building Project Manager, and George Lulos.

The APRL Board indicated that all members had read the two Match Factory mortgage proposals and agreed that they would not consider the PNC proposal but would focus on the Omega proposal and its options. George Lulos reported that it was very clear to him that the Omega proposal was significantly advantageous to the APS/APRL.
When asked whether PNC might offer a better proposal when they learn of the APRL interest in Omega. Lulos and Lamb indicated that they could not say for sure but that they thought that the Omega offer would likely be the best that the APRL would see.
The timeframe will be as fast as possible, according to Lulos. What will control this more than anything else is the appraisal. Typical time frames for securing the appraisal are four to ten weeks in this area. The selection of the appraiser and the instructions give to the appraiser are most important. We need to make sure that the appraiser understands the unique nature of this project with its combination of headquarters and the rental space. A 3.5 million dollar appraisal would be shocking, according to Lulos. We are clearly in excess of that. In the most conservative view, we should be well above the 3.5 million. Lulos believes there is a very good chance to get an appraisal of 5 million.
The three year versus the five year lock-in issue has been discussed by the Finance Committee without having reached a decision. This is not a time at which this decision needs to be made. Currently, Lulos is more inclined to go with the five year lock-in.
There are two 2 million dollar loans each of which permits a paydown of $250,000 on principal each year.
There is a clear mandate to proceed with Omega according to Lulos.
Moved by Ken Lawrence and seconded by Herb Trenchard to authorize George Lulos and Bob Lamb to undertake negotiations with Omega. Approved unanimously.
In August at Stampshow, Bill Bauer would like to see a report indicating where the entire project stands financially. Bob Lamb indicated that they would certainly have that prepared.
Ken Grant departed the conference call.
Charlie Peterson asked Ken Lawrence to serve as secretary for the balance of the meeting.
Dan Walker asked if future American Philatelic Center development will experience higher incremental costs.
George Lulos answered Yes, for the three-story building. Although there can be exceptions, restaurant deals typically require the landlord to invest more in the building, but they pay handsome rent in return. In that case, the cost per square foot will be higher. On the other hand, some money already spent on the project benefits and mitigates the lopsided nature of Phase Three. Yes, it is likely to be higher.
Dan Walker complimented Bob Lamb and George Lulos on the loan negotiation.
Bob Lamb and George Lulos said they wouldn’t have imagined such a great deal.
George Lulos said we will try to close on this basis.
Dan Walker asked if the next report is expected in mid-May.
George Lulos answered Yes, we will report any changes.
Bill Bauer congratulated Bob Lamb and George Lulos.
Herb Trenchard said we have taken another great step forward in APS and APRL history.
With no further business and no further discussion, Charlie Peterson declared the meeting adjourned.