ATKINSON TOWERS, INC. DISCLOSURE STATEMENT
This Disclosure Statement is provided by Walter Flood, Realtor, and is NOT endorsed or authorized by Atkinson Towers, Inc., the Board of Directors, and/or Certified Management, Inc. Date: February 20, 2006.
1. It is understood that the Sales Contract (DROA) is for purchasing a share of stock in Atkinson Towers, Inc., which is represented by the assignment of the Proprietary Lease on an Apartment on the 3rd floor, Parking Agreement on the stall #78, use of the assigned space in the storage room, and the co-use of the limited common elements.
2. Buyer understands that the project, Atkinson Towers, Inc., is a residential cooperative and the Buyer is to receive a stock certificate for one (1) share of stock when the sale is consummated as a "cash sale".
If the sale is by way of "Bank Financing" (First Mortgage), the Buyer is to receive the stock certificate upon "pay-off" of the loan.
3. Buyer should know that the 30,919 sq.ft. parcel/lot/land on which the building sits and on which the swimming pool and the open parking stalls occupy was purchased by the Corporation - in Fee Simple.
Buyer understands that the 10,500 sq.ft. parcel/lot/land which is owned by Mr. Lloyd Char is under contract to Atkinson Towers, Inc. for 34 parking stalls and therefore is known as: Leasehold. The ground lease has been set for the period Jan. 1, 1997 to Dec. 31, 2006 at $60,000.00/year. The ground lease rent "pro ration" for this Apt is: $42.02/month - as of Jan. 1, 1997 until Dec. 31, 2006.
NOTE: This subject Apartment on the third floor does have a Parking Agreement Certificate. The stockholder's share of the ground Leasehold rent on the Char property, is $42.02/month, until Dec. 31, 2006.
Note: The "Maintenance Fee" (which includes: ground lease rent, real property taxes, Atkinson Towers, Inc. insurance, water, basic TV cable, and other association expenses) is: $389/month as of 01/01/2006.
The Buyer is encouraged to review the corporation's current financial statement and seek legal advice prior to purchasing stock or an interest in Atkinson Towers, Inc.
4. Buyer understands that at the end of this ten-year period (December 31, 2006), Atkinson Towers, Inc. will have to again re-negotiate the ground lease rent on the property owned by Mr. Lloyd Char (10,500 sq.ft.) for the next ten-year period.
5. Buyer understands that the Master Lease on the 10,500 sq.ft. parcel (parking lot) expires on December 31, 2016 and that if the Corporation is not successful in purchasing the leased fee interest in the parcel owned by Mr. Lloyd Char or in obtaining an extension of the lease, that particular portion of Buyer's vested interest in Atkinson Towers, Inc. will terminate with no residual value or recovery of investment.
This is known as the "surrender clause" in the Master Lease. To wit: The Lessee (Atkinson Towers, Inc.) will be required to turn over the Lloyd Char property, including the improvements (if any), to the Lessor at the termination of the lease.
Furthermore, it is understood that if the Corporation is not successful in purchasing the leased fee interest (fee simple), or in gaining an extension of the ground lease, the value of stock in Atkinson Towers, Inc. may diminish as the year of the expiration of the Master Lease approaches.
Note I: The Corporation is currently negotiating with the Lessor (Floyd Char) to purchase the fee simple interest in the property (10,500 sq.ft.). If/when their offer is accepted, the Corporation will have an opportunity to finance the purchase price for the Share Owners and the pro-ration for all apartments will be established.
Note II: The Corporation has approached the Lessor (Floyd Char) to co-develop the property (10,500 sq.ft.), and build a new 2-3 floor parking structure , with an extra 64 parking stalls. If/when this happens, ALL the owners will have an opportunity to purchase a parking stall, in fee simple, either on the Atkinson Towers' lot, or in the new structure.
Note III: If all the above fails, the Corporation may/could/will build a double deck parking structure, on Atkinson Towers' property, with enough parking stalls for all the Owners, including a parking stall for those units which do not have a stall.
6. The Condominium conversion is moving forward, and the best estimates are that it will take another 6-9 months for the conversion to happen. Still, there are no guarantees that the agencies which are involved in the process will approve the application for conversion, and Atkinson Towers, Inc. could/may/might stay as a co-operative project.
7. It is understood, by both the prospective Buyer(s) and the Seller that the sale (assignment of the Proprietary Lease) and the Applicant(s) are subject to approval of the Atkinson Towers, Inc. Board of Directors.
If the sale or the applicant(s) is/are not approved, Buyer or Seller will have no recourse, and Atkinson Towers, Inc. the Seller, the Seller's and/or Buyer's agent cannot be liable for any expenses related to the proposed sale/purchase.
All information contained herein is obtained from sources deemed reliable, no representation is made as to the accuracy thereof, & it is submitted subject to errors, omissions, changes & withdrawals without notice.
Note: This Disclosure Statement was prepared/provided by Walter W. Flood, Realtor, and NOT by Atkinson Towers, Inc. and/or Certified Management, Inc. Finally, there is no guarantee that any, some, or all of the proposals will happen.
Note: This document can NOT be modified, revised, altered, copied, reproduced, shared, faxed, e-Mailed, and/or linked/uploaded to a website, without the written consent from Walter W. Flood, Realtor
Walt Flood Realty * Phone: 808-922-1659 *
Fax: 1-877-358-5637 (Toll Free)
1750 Kalakaua Ave., Suite 103, Honolulu, HI 96826-3795