Letter to the Editor: Non Profit Status
Why is the WRA (Waddington Re-Development Association) struggling for cooperation. I have read with amusement and a little dismay the articles printed in The Journal and Advance News these past several months regarding the plight of the WRA.
For some time now we have listened to a litany of criticisms against local
government for their unwillingness to assist the WRA in the preservation of the former St.
Lawrence Hotel. I have read editorials commending them for their countless hours of work
as they have attempted to purchase the structure and restore it to its former beauty.
Kelly's Comments has praised the work of Jim Thew and others for aggressively pursuing
this noble cause.
Last week the St. Lawrence County Legislature got called on the carpet in the same newspapers for not making a decision to turn over the property to "a local not for profit group." News stories have suggested that a local philanthropist had graciously committed $10,000 toward the restoration project.
Blah, blah, blah.
Here is the $100,000 question. When did the group known as Clark House Preservation, LLC secure not for profit status? There does not exist today May 28, 2003 a non-profit organization known as Clark House Preservation, LLC. And according to John Whalen, Esq. at the New York State, Department of State there never will be.
According to Mr. Whalen an LLC (Limited Liability Company) cannot be a non profit organization. When a company is set up it must be called non profit from the onset. The attorney's representing the WRA have filed for a company listing and Clark House Preservation, LLC is shown as an active entity on the Department of State web site as of Dec. 17, 2002. But to portray themselves as a not for profit organization is completely misleading.
And while the application details may indeed be an oversight, they have to know that currently the state does not recognize them as a non profit entity. It's like saying you are a licensed attorney when you haven't taken the bar exam.
At a February meeting of the Village Board Mr. Thew indicated that they were going to be writing a grant that had to be in by April 1 that might secure additional funding. I questioned how they could get grant money if they did not have non profit status and he assured me that they would meet the April 1 deadline. Further to that, he did not think the non profit status was relevant to secure a grant as a "not for Profit" entity. I wonder if the grant was filed and what its current status is. Certainly the grant providers would need a non profit certificate before any funds could be presented.
How can a county or local government turn property over to a company that is listed with, for profit status? And why has this very fundamental question not been asked. I have been wondering for several months now, how it is, that a group of individuals can get together and request the government to "give" them a piece of property? It seems to me that before you approach a governing body as a non profit group you would have insured that you could call yourself that. It's elementary!
We have been going on for months about the lack of cooperation on the part of local officials. The Mayor and village board have listened to unnecessary criticism. The WRA could not have been given ownership to the property without causing an unprecedented move on the part of government. Imagine being able to approach the county to ask for ownership of a parcel just because the taxes have not been paid.
It is my opinion that if the reporters had followed up on the stories before going to print they might have asked Mr. Newell if he had in fact committed to the $10,000 and when he planned to make this charitable contribution to the not for profit group. According to Mr. Newell, in conversation with Mayor Phillips here in Waddington today, he has not spoken to the group in several months and wondered if they had yet secured non-profit status.
Having said all of this it is entirely possible that government might
still want to consider the precedent setting decision of turning property over to non
profit entities. Remembering that religious organizations, schools, and municipalities all
would be in a position to ask for properties which would remove them indefinitely from the
tax rolls.
It would behoove the WRA to get their act together before they start calling reporters
with a story that quite frankly would have left them looking pretty foolish if the county
agreed to transfer the property and they were unable to accept it.
Incidentally, it looks like another winters snowfall will be settling on the roof to the old hotel before non profit status is obtained. According to my sources the process can take as long as two years.
Roger Sharlow
Original Pub Date: 06/01/2003
Used with permission