FW:

 

 

 

Les –Jeffrey asked whether there are any tax implications to upgrading founding membership + the answer is no….

 

Until the original note matures Jeffrey will continue to receive 1099’s related to waived dues (as he does today).

 

Upon conversion there is no tax implication for the lender, for “forgiving” the debt;  the borrower (The Core Club 55^th St LLC) will need to recognize this loan as taxable income.

The monthly credit represents repayment of the accrued interest for which the Founding Member has already recognized the taxable income over the life of the note

 

Les –I also cut + pasted the original email for your reference…………

 

 Wanted to fill you/Jeffrey in on a program that has been created based on Founding Member requests to add people  - important clients, friends, family, colleagues, etc - to their memberships. We have so far collaborated with around ten Founders to create a membership that worked for their individual needs, and have now taken their ideas to shape them into a formal offering. Would love to get Jeffrey’s feedback on the offering so that ultimately it’s something that he feels 100% comfortable in supporting.

 

Specific terms are as follows:

 

Add up to four people to Founding membership – initiation fee waived

 

Waived dues for Founder until 2010; pay 50% of dues for next five years (additional members pay regular dues)

 

$1,000 Founder credit for all goods and services for 60 months; unused monthly credit rolls over to next month, provided, unused credit at end of each fiscal year is forfeited ---- Jeffrey can have anyone he would like use this credit

Guests allowed w/o Founding Member being present

 

Access to all future CORE: clubs for no additional fee

 

Apply $100k Founding Member contribution to Founding Member Upgrade membership

 

 

We need this to be an offering that Jeffrey will endorse, so all honest feedback is greatly appreciated. Thanks so much.

 

 

CORE: Jennie Saunders | President and Chief Executive Officer | 66 East 55th Street New York NY 10022 | Main: 212 486 6600 | Mobile: 917 330 1033 | jennie.saunders@coreaccess.net | www.coreaccess.net |

 

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