Latest Trust Administration Order

This is apparently the most recent version of the Trust Administration Order, the document that would control the operation of the Feoffees going forward if the Probate Court Judgment is upheld.

Probate – SC – 120323 – Trust Administration Order

It makes clearer (in 5c & d) that the $2.4M in back rent will not be considered part of the Trust assets for purposes of defining what used to be called the “Historical Value” and is now called the “Principal” of the Trust.  Put another way, as far as future generations are concerned, this is the same deal that the School Committee turned down in October of 2010.  Future income can therefore be fairly calculated on the same net of approximately $22M that we have used in our financial analysis all along, and that was used by the School Committee in this part of their Summary Judgment Opposition to calculate an annual return of $110,000.  We believe this was overly pessimistic and that the number will likely be more like $350,000, but in any case there is no reason to believe that the income will be sufficient to offset the additional costs of a year-round Little Neck, let alone fund any “enhancements” to the schools.

 

Ruling on Intervener’s Motion to Stay

The intervener’s motion to stay was denied by the single justice of the appeals court today meaning, in effect, that the agreement for judgment is allowed to move forward while we pursue our appeal.

Appeals – Court – 120312 – Denial of Motion to Stay

We will be studying the ruling in light of other actions in progress to determine next steps.

Arthur C. Payne, Jr.

Statement and lineage of Arthur C. Payne, Jr., a direct descendant of William Payne:

1: If I was William Paine making the bequest my thought would be to use the
income from the property to generate income for the school in perpetuity
from either leasing or renting the property. I would be reluctant to sell
the property because a straight money bequest usually winds up failing
either by getting looted by corrupt managers or lost through poor
investments. Property is forever.
2: If I was a trustee and I felt that the bequest could not be managed in
accordance with the will I think I would find competent people who did
think that they could manage the property and appoint them to be trustees
and myself resign.
3: If I was a judge I would probably replace the current board of trustees
with a new board composed of people who want to manage the bequest in
accordance with the will and see what they could do.