Logi sisse läbi:

Kiri Majandusklubilt: Eesti Maja - The Business decision (6)

Toronto Eesti MajaToronto Eesti Maja
April 18. 2017 

Raivo Remmel , Eesti Maja Esimees 

Oleme Majandus Klubis arutanud pikemalt oma juhatuse koosolekul Eesti Maja ettepanekut et müüja Eestimaja Broadview peal, ja muretseda omale uus keskus Madison'i tänaval. Meil puuduvad andmed mis võimaldaks meil toetada seda ettepanekut.
Toon esile meie arutuse
Väino

Eesti Maja – Estonian House - a Business

To determine the best course of action for a new Estonian House it is useful to think of it as a BUSINESS.
It has a business mandate "to be financially self sustaining and operate without a subsidy"
When evaluating the opportunity presented to us on Madison Ave. we should analyze it in two parts:
1. Is it a sound business decision?
2. What is the best way to finance this acquisition.
So far, we have not been presented with relevant numbers pertaining to the investment decision. We do not know any details on the costs of acquisition, costs of construction, operating costs, carrying costs, taxes et al.

What we do know is that the facility is restricted to 23,000 square feet, with 5,000 sq. feet available for commercial leasing. The cost of the facility including acquisition of 11 Madison Ave. and the existing parking lot at 7 Madison Ave. is estimated at 18 million dollars. This does not include fit-up costs for the facility should we wish to have specific uses e.g. coffee shop, bank,
We also know that there are restrictions imposed by the city as a condition of sale for building on 7 Madison. Two thirds of the space is to be a park/parklike space with a pass through to the adjacent property. We also know that building on 7 Madison will be restricted by the two subway tunnels underneath the property. We do not know the restrictions both physical, and time wise that this will impose upon the project. There is a twofold risk associated with this constraint. Setbacks may reduce the size of our facility footprint and construction timing may be impacted by restrictions imposed by the TTC. Construction delays that are not attributed to the contractor will result in significant increases in construction costs.

IS IT A SOUND BUSINESS DECISION?

The key question: We have an 18-million-dollar cost. WE have 5000 feet of commercial space which we intend to rent out to permanent commercial tenants. And we have 18,000 sq. feet of Flex space meaning space to be used by our community and space that can be marketed to the public.

Is there a detail costing and a financial plan that shows that our 18-million-dollar investment is financially sound? We Know the current Eesti Maja has an operating cost of $450,000 per annum. We know that the leasing tenants in Eesti Maja pay approximately $200,000. Rental of flex space to non-Estonians adds about $100,000.

Industry standards should enable us to determine building construction costs, maintenance costs, administrative costs, taxes, security, marketing. It should be relatively straight forward to determine the probable rental income for the available space. Based on availability, market rents and space utilization.
A developer would have a financial model that allows us to examine options? How much more rentable space do we require to make the project feasible. Is there an optimal mix between commercial space and flex space? Have we identified potential clients and defined our incoming revenue streams. A basic cash flow model would prove useful and identify our risk factors.

Do we have a financial model that allows us to examine options? How much more rentable space do we require to make the project feasible. Is there an optimal mix between commercial space and flex space? Have we identified potential clients and defined our incoming revenue streams.

Comparative analysis suggests that we should be carefully examining the project. The cost of our project is $782 psf. High end office space on University Ave. (800 University at the corner of University and College) is for sale at $355 psf.

It is very difficult to build a Business case for the Madison Acquisition.

WHAT IS THE OPTIMAL FINANCING OPTION:
What is the source of funds:
1. Sale of Estonian House – rollover of proceeds
2. Equity investment by Tartu College
3. Equity investment by Estonian Foundation
4. Equity investment by Estonian Credit Union
5. Mortgage by Estonian Credit Union (syndicated)
6. Private new share capital (new shares to be issued by the New Estonian House LTD.
It is highly unlikely that the sale of Estonian House will raise sufficient funds to pay for the new project. Is there a commitment by the parties to the agreement to assume an equity in the new project? If so how much? And on what terms.

If mortgage financing becomes a necessity, what will be the monthly payments? Is our projected cash flow from the new Esto House operations sufficient to cover these ongoing costs? What are the costs associated with various levels of financing? At what level does financing become an unacceptable risk? At the present time we have an Equity Line of credit with ETCU of $250.000. From our current revenues we are able to pay the interest costs but we lack sufficient funds to pay down any principal.

Much has been made of the concept of "bridge financing" in the event of the sale of Estonian House. It is obvious that the interest cost of any loan cannot be covered by operating revenues and would have to come from a draw down of our equity. This further increases the gap that would have to be financed by other sources.

How ready is our community to support a fund-raising effort, a new share offering, for the construction of the Madison Property? (risk assessment: a large segment of the population that is most able to lend financial support to the project is reluctant to do so.)

Cash flow constraints: We can entertain the concept of a leaseback option for Estonian House until the Madison Project is occupancy ready, but this is a huge expense on a razor thin operating budget. How do we finance this cost? Again the use of bridge financing is not without its costs. If we cannot afford to lease back the entire building should we lease back specific parts. Doing this will also bring to the forefront that many users of space in Estonian House are not paying for it now. Can we justify paying "rent" for space which we give out for free. Alternatively we could seek accommodation elsewhere such as the Latvian Cultural Centre.


Väino Einola
Eesti Majandus Klubi Esimees

Kommentaarid   

 
+5 #1 Pahane 2017-04-19 18:50
Väga head punktid. Aga nagu juba meile kenasti seletati, siis lõplik otsus ei lähe läbi enne, kui kõik asjad on paigas. Ka kõik arvestused, kulude-tulude osas. Kujutan ette, et see on suurem liitmine ja lahutamine, mida ei taheta enne ette võtta, kui sel tõesti mõtet on, st on saadud nõusolek projektiga edasi minna. Minu meelest oli selge sõnaga seletatud, et lõplik jah-sõna hõigatakse välja, kui numbrid klapivad. Mul pole majandusest palju aimu, kuid tundub loogiline. Arvestades, et sellega tegelevad vabatahtlikult oma aega ja teadmisi jagavad juhatuste liikmed. Ja PALUN!!!! Lõpetage see Läti majja minek ära. Pigem juba loodame, et Tartu College võtaks meid vastu. Küll me sinna kuidagi ära mahume (häid lambaid mahub palju ühte lauta). Pangal on ka väike maja Madisonil. Hoiame ikka siin Torontos kokku! Aktiivseid eestlasi on ju niigi väheseks jäänud.
Tsiteeri | Teavita administraatorit
 
 
+5 #2 oh dear 2017-04-19 20:00
This is must be mortifying for the business club. How would you even go about answering the spew? Public braying by those unaccustomed to finance and business, sure, but the business club esimees? Where you'd expect the complexities of negotiations and their various stages including the nascent stage, where this project is, to be understood. Instead, indulging another ego, bruised because he was not invited to be part of creating a solution to the Estonian House's descent to bankruptcy problem.
Tsiteeri | Teavita administraatorit
 
 
0 #3 Anne Kaunismaa 2017-04-19 22:32
Hästi öeldud, Väino!
Tsiteeri | Teavita administraatorit
 
 
-3 #4 They too have a say! 2017-04-20 12:20
But it doesn't take into account the concerns of local resident, Chris Williams.
In Allan Meiusi's interview with him in the EWR, Williams speaks for the herd of deer in the valley behind Eesti Maja and, if Williams isn't a concerned citizen, then who is?
Goes to show you that you just can't make everyone happy with the manner in which some Estonians spend their own money.
Tsiteeri | Teavita administraatorit
 
 
+1 #5 Siren 2017-04-21 11:51
Good. All 'hands on deck'. Thank you Väino. The Madison Projekt can morph into greater density on a larger footprint. No. 11 must come down and the Laskers can shoot away in the basement. The city can have their 'courtyard' and student underpass, but, WE need to make it financially viable. As for the neighbours, all they want to know is 'what's in this building for me?'. If the Architecture is beautiful and a good neighbour, our project will be welcome. NO empire building please (you know who you are) this house belongs to all of us Estonians, from here and away. I see this Centre also as an Embassy, with a swish clubroom, filled with wood and art and leather chairs and a bartender. I will fly in and head there from Porter , set my briefcase down and order a Manhattan while I get my bearings. Who will I meet? Ask yourselves: "Where do I belong in this project and what can I bring to the table?" Rita
Tsiteeri | Teavita administraatorit
 
 
+2 #6 EDASI 2017-04-22 15:27
Its easy to ask more questions. Much harder to move forward even if you don't have all the answers.
So, instead of asking all of these questions, why don't you business people put together the 2 business plans? One for the Current Eesti Maja, One for the Madison Project.
Yes it will take a lot of volunteer time to acquire and calculate the level of detail that the Esto community demands immediately.
You will also see that it might be simply logical for everyone to join up with the active Estonian group in Tartu College instead of desperately trying to preserve an old shell where a few esto organizations currently function that is located a mere 6 subway stations away on Broadview.
United we stand, divided we fall.
Tsiteeri | Teavita administraatorit
 
Eesti Elu Nr. 17 - 28. aprill 2017

Eesti Elu Nr. 17 - 28. aprill 2017

Vaadake galeriid, mida huvitavat saab lugeda 28. aprilli Eesti Elu /Estonian Life paberlehest. Käesoleva nädala Eesti Elu pab...

FOTOD - Toronto Eesti Maja aktsionäride erakorraline koosolek

FOTOD - Toronto Eesti Maja aktsionäride erakorraline koosolek

Teisipäeval, 25. aprillil 2017.a toimus Toronto Eesti Majas Eesti Maja aktsionäride erakorraline koosolek Eesti Maja tuleviku teem...

Kaks kolmandikku Eesti Maja aktsionäridest hääletas Madisoni projekti poolt

Kaks kolmandikku Eesti Maja aktsionäridest hääletas Madisoni projekti poolt

Teisipäeva, 25. aprilli 2017.a õhtul toimus Toronto Eesti Majas Eesti Maja aktsionäride erakorraline peakoosolek Eesti Maja tulevi...

FOTOD - Koolikoori kontsert 'Tallinna teel' Toronto Eesti Majas

FOTOD - Koolikoori kontsert 'Tallinna teel' Toronto Eesti Majas

Pühapäeval, 23. aprillil 2017.a toimus Toronto Eesti Majas Toronto Eesti Seltsi Koolikoori kontsert "Tallinna teel", toetamaks Koo...

An Overview of the Madison Development Including a Response to the Majandusklubi Open Letter to Raivo Remmel, President of Estonian House in Toronto Limited

An Overview of the Madison Development Including a Response to the Majandusklu… (5)

This letter is an attempt to clarify some of the issues and questions that have arisen since the Town Hall meeting held at Estonia...

Estonian House – We should be GRATEFUL

Estonian House – We should be GRATEFUL (2)

Much has been written about our attachment to the house that has been our community home for the past 55 years. Much has been said...

A Third Generation’s Perspective On Eesti Maja Tulevik

A Third Generation’s Perspective On Eesti Maja Tulevik (7)

As a third generation member of the Toronto-Estonian community, I am writing this to articulate my reasons for supporting the prop...

Regarding Iler Campbell Request for Information to Estonian House Limited, published In "Eesti Elu" on April 21, 2017

Regarding Iler Campbell Request for Information to Estonian House Limited, pub…

To whom it may concern: The publishers of "Eesti Elu" hereby clarify that the policy of "Eesti Elu" is to not involve the newspape...

FOTOD - Avatud uksed Madison'i tänaval

FOTOD - Avatud uksed Madison'i tänaval

Pühapäeval, 23. aprillil 2017.a toimus Torontos Madisoni tänaval võimaliku uue Eesti Keskuse ideede tutvustamine ja avatud uksed.

FOTOD - ESTONIA KOORI KONTSERT „Teeme õhtulla iluda" Eesti Majas

FOTOD - ESTONIA KOORI KONTSERT „Teeme õhtulla iluda" Eesti Majas

Laupäeval, 22. aprillil 2017.a toimus Toronto Eesti Majas ESTONIA KOORI KONTSERT „Teeme õhtulla iluda".

FOTOD - Jüripäeva paraad Eesti Majas

FOTOD - Jüripäeva paraad Eesti Majas

Jüripäev märgib skautlikus-gaidlikus tegevuses sisehooaja lõppu ja välishooaja algust. Toronto skaudid-gaidid kogunesid traditsioo...

Dear Members of the Estonian Credit Union

Dear Members of the Estonian Credit Union

Next Tuesday April 25th, 2017, shareholders of the Estonian House will vote on a special resolution to empower the Estonian House ...

Eesti Kirjandusmuuseumi elulugude kirjutamise võistluse üks peapreemia tuli Torontosse

Eesti Kirjandusmuuseumi elulugude kirjutamise võistluse üks peapreemia tuli To…

Eesti Kirjandusmuuseumi Eesti Kultuuriloolise Arhiivi ja Eesti Rahvaluule Arhiivi, Ühenduse Eesti Elulood, Eesti Õppetöö Keskuse /...

Rootsieestlased korraldavad Stockholmis Läänemere julgeoleku teemalise juubelikonverentsi

Rootsieestlased korraldavad Stockholmis Läänemere julgeoleku teemalise juubeli…

Laupäeval, 22. aprillil toimub Stockholmis Rootsi Eestlaste Liidu (REL) ja Ülemaailmse Eesti Kesknõukogu (ÜEKN) eestvedamisel rahv...

Juhtkiri - EV100 on alanud

Juhtkiri - EV100 on alanud

Seisame Eesti 100 künnisel. Eesti riigi väärika saja-aastase juubeli pidulik märkimine on käivitatud, ametlikuks avaürituseks oli ...

ERAKONNA IRL HEA MÕTE JA MARKO MIHKELSONI RAHVUSLIKUD HUVID

ERAKONNA IRL HEA MÕTE JA MARKO MIHKELSONI RAHVUSLIKUD HUVID

Postimehes (10.04.17) avaldatud kirjutist „IRLi fraktsiooni liige rääkis Mihkelsoni parteist väljaviskamisest" sobib täiendada ava...

New Estonian language guides

New Estonian language guides

Let me introduce myself firstly. I was in Toronto two years ago, doing a Summer internship in the V...

Estonia 100 – the party has started

Estonia 100 – the party has started

The map on the poster shows the now imaginary borderline between what was Eestimaa and Liivimaa. Th...

*Giant Rummage Sale and Bake Sale/Friends' Café at the Estonian House*

*Giant Rummage Sale and Bake Sale/Friend…

Don't miss the upcoming Giant Rummage Sale!The Giant Rummage and Bake Sale will take place at the E...

Ottawa turismimess

Ottawa turismimess

Tunnustatud Ottawa reisi- ja puhkusemess, järjekorranumbriga 23, toimus sel aastal 25. ja 26. märts...

HIIGELBASAAR ja KOHVIK #26 laupäeval, 29. aprillil Eesti Majas kell 8 – 3

HIIGELBASAAR ja KOHVIK #26 laupäeval, 29…

HIIGELBASAAR pakub ideaalseid võimalusi neile, kes soovivad üleliigsest kraamist lahti saada ja suu...

Lõuna-Florida eestlaspere kevadpidu

Lõuna-Florida eestlaspere kevadpidu

Lõuna-Florida eestlaspere kevadpidu leidis aset 8. aprillil Boca Ratoni ilusas James A. Rutherfordi...

EESTI HETKED - Koks-koks!

EESTI HETKED - Koks-koks!

Nii tore on näha, et igal pool maailmas värvivad eestlased ikkagi sibulakoortega ja tutvustavad oma...

Noorte laulu- ja tantsupeo lõkkeid süüdati kõikjal maailmas

Noorte laulu- ja tantsupeo lõkkeid süüda…

16. aprillil, mil algas Eesti riigi 100. sünnipäeva tähistamine, süttisid Eestis ja kaugemalgi saja...

Kanada päevik - Kas mull või vaht

Kanada päevik - Kas mull või vaht

Toronto kinnisvara hinnad on viimase aasta jooksul tõusnud 22% võrra. Või nagu keegi matemaatik reh...

MUSIC - No snarls here

MUSIC - No snarls here

The concept of a most pleasant recent recording arose when the Estonian software development compan...

Meelelahutust - Kevade rõõmud

Meelelahutust - Kevade rõõmud

Millest alata? Tärkav rohelus, pakatavad pungad, mullakamarast ennast jõuliselt välja suruvad lille...

Eesti Kultuuri Koda - Eesti Maja kaitseks

Eesti Kultuuri Koda - Eesti Maja kaitsek… (4)

Eesti Kultuuri Koja üldkogu toetus Toronto Eesti Maja (958 Broadview Ave) kui Eesti paguluse mäluko...

Let’s think about our community’s future

Let’s think about our community’s future (7)

For full disclosure, I am a member of the Estonian House Board of Directors. The views in this arti...

Heritage in transition: Estonian House, the new project, and value-congruent decision-making

Heritage in transition: Estonian House, … (2)

"For a great city is one where differences not only exist, but where differences create lively enco...

Kultuuripärandi üleminek: Eesti Maja, uus projekt ja väärtuste kohaselt otsuste tegemine

Kultuuripärandi üleminek: Eesti Maja, uu…

"Eesti Maja 2.0 peab ennast esitama sellise paigana, kus noor eestlane on uhke käima niikuinii – ku...

Your Say In Where The Credit Union Is

Your Say In Where The Credit Union Is

At the 2017 annual meeting of the Estonian (Toronto) Credit Union Ltd. (ETCU), members of the ETCU ...

Kiri Majandusklubilt: Eesti Maja - The Business decision

Kiri Majandusklubilt: Eesti Maja - The B… (6)

April 18. 2017 Raivo Remmel , Eesti Maja Esimees Oleme Majandus Klubis arutanud pikemalt ...

Avalik Eesti 3

Avalik Eesti 3 (1)

Avalik Eesti 3 on pühendatud Eesti ühiskonna murrangulisele ajale, mil tuleb valida ja otsustada, m...

EESTI MAJA TULEVIKUST?

EESTI MAJA TULEVIKUST? (5)

Mind hakkas huvitama mõiste "konsolideerima", mida Eesti Maja müüki soosivad isikud nii tihti kas...

FOTOD - 'Alice Imedemaal': Toronto Eesti Seltsi Lasteaia moenäitus

FOTOD - 'Alice Imedemaal': Toronto Eesti… (1)

Laupäeval, 8. aprillil 2017.a toimus Toronto Eesti Maja suures saalis üks meie ühiskonna populaarse...

Kommentaar - Suur ja mõjukas eesti kultuur või odavad helmed?

Kommentaar - Suur ja mõjukas eesti kultu… (1)

Küsin, kas olete lugenud Käsu Hansu nutulaulu? Jah, just neid tartu murdes kirjutatud 32 salmi, mis...

VIDEO - Toronto Eesti Koolikoor esines Ehatares

VIDEO - Toronto Eesti Koolikoor esines E…

Hoolega juuli alguses Tallinnas toimuvaks laulupeoks valmistuv Toronto Eesti Koolikoor Reet Lindau ...

TEPP lasketiir Eesti Majas läbis edukalt valitsuse kontrolli

TEPP lasketiir Eesti Majas läbis edukalt… (1)

Nagu enamikule Torontos ja Toronto ümbruses elavatele eestlastele hästi teada, tegutseb Eesti Maja ...

Nädala portree - Heidi ja Ron Kuus: partnerid nii elus kui äris

Nädala portree - Heidi ja Ron Kuus: part…

Abielupaar Heidi ja Ron Kuus on edukad äriinimesed, juhtides ühiselt suurt ettevõtet. Nagu selgub, ...

Facebook Twitter Youtube Rss Google plus
 
Teata sündmusest,
saada lugu või vihje!

See e-posti aadress on spämmirobotite eest kaitstud. Selle nägemiseks peab su veebilehitsejas olema JavaSkript sisse lülitatud.
 

 Eesti Elu üksiknumbrid
on müügil Torontos:

 

  • Eesti Elu kontoris (3 Madison Ave. / 310 Bloor St. W.)
  • e-store'is Toronto Eesti Majas (958 Broadview Ave)
  • Leaside Pharmacy's (Suomi Koti juures) 795 Eglinton Ave. E.

  

Telli leht siit!

 

 
Teata sündmusest,
saada lugu või vihje!

See e-posti aadress on spämmirobotite eest kaitstud. Selle nägemiseks peab su veebilehitsejas olema JavaSkript sisse lülitatud.
 
Eesti Elu - 3 Madison Ave., Toronto, ON M5R 2S2 - Ajalehe Tellimine - Kuulutuste tellimine - Tel: 416-733-4550 - Fax: 416-733-0944 - e-mail: See e-posti aadress on spämmirobotite eest kaitstud. Selle nägemiseks peab su veebilehitsejas olema JavaSkript sisse lülitatud.
This material may not be published, broadcast, rewritten, or redistributed. ©2012 Eesti Elu. All rights reserved.
Made by CyberQA & Confirmo