Original vision has always been a shared use of the property.
Rick and I were buying hunting property, felt that the property could be put to a good use outside of hunting season.
Rick was Veterans program manager for the Michigan Brain Injury Association and had the contacts. I had the business experience and finances to make it happen.
The initial motion to create the charity makes this clear. The original lease was written in which Rick and I took all the risk – one year lease periods, Rick and I were responsible for the mortgage, shared property taxes.
Rick and I have not made money on this arrangement. It was never set up to make money, but to just cover the expenses. In fact, Rick and I lose money on this every year. We understood there was a conflict of interests with CLG owning the property and CLI using it. We disclosed these conflicts of interest from the beginning and specifically abstained on every board vote that had anything to do with the property. I have copies of the minutes of every board meeting that document this.
At the time, the Eisenhower Center was having success with the treatment of PTSD and TBI using recreational therapy. They had already purchased and implemented the Eisenhower Farm Center located on M-52. The saw potential in expanding treatment options to outdoor recreation. John Cornak was a member of the board of directors and voted to move forward with the plan. The Eisenhower Center fully understood the nature of the arrangement and donated the funds.
The lease arrangement was a land-lease which is a very common arrangement in commercial real estate. It was set up by the attorneys of Fausone Bohn, which represented Camp Liberty Inc. The initial donations and financing arrangements were set up to benefit the charity. Given the resources available, it was the only viable way to launch the charity, obtain the land and pursue the vision.
The Eisenhower Center committed $1,000,000 of donated treatment to veterans. We had success with TBI and PTSD cases in the first few years of the program.
CLG had approved rather modest buildings that we felt were sufficient for the operation and to meet the initial needs. They were designed to be able to be finished to a higher level and expanded as the charity advanced and became financially solvent. Because of the success of the fundraising efforts, the board wanted a larger building and higher levels of finish. At this point, there were accusations on the board that Rick and I were profiting from the arrangement and our integrity was questioned. Rick and I resigned from the board, which placed the who operation in question.
Out of this, a lease addendum was negotiated that allowed the larger and higher finishes of the buildings, and committed both groups to the 10 year term. Rick and I rejoined the board. Fundraising and construction continued. I provided all design and construction management services free of charge. I donated materials and twisted the arms of my subcontractors to do work for fee or at reduced prices.
The Eisenhower Center committed $1,000,000 of donated treatment to veterans. We had success with TBI and PTSD cases in the first few years of the program.
The shared use of the property continued to cause misunderstandings and accusations. In 2017, we tried to negotiate a sale of the property to CLI. The price discussed was $150,000 to $200,000 below market value. I coordinated a mortgage commitment from Chase Bank. The sale terms would have reduced their monthly payments compared to the rent they were paying and would have paid us back for the money that we had invested. Again, there were accusations that Rick and I were taking advantage of the charity and we should be giving the property to CLI without any money for our investment. A couple of the board members became very aggressive and offensive, and posted accusations and defaming statements online. Rick and I resigned permanently.
Since then, we have not had and involvement in Camp Liberty or the property. Despite the shared use outlined in the lease, Rick and I have stayed away. There were other conflicts with the organization which we learned about from time to time. Rich did not run the charity professionally. We requested copies of minutes and financial statements. These were not provided. The charity did not seem to be focusing on its original mission of TBI and PTSD.
In 2019, we learned that CLI had made changes to the land and built structures without our permission, which violates the terms of the lease. We sent a letter providing a Notice of Default and Request for Cure. The issues were not fully resolved.
We were approached by Dale Brewer and Rick DeLisle earlier this year, who said that they had donors and CLI wanted to purchase the property. Rich was told to get it right this time, because this was the last time I was willing to go through this process. We negotiated price and terms and entered into a contract. CLI did not handle the transaction professionally and did not, in our opinion, meet important contingencies. We were given a letter stating that all of the money had been committed and CLI could close by October 29.
Rich passes away. It appears that there was conflict within the organization. Rent has not been paid, and here we are.
