How Neighborhood Associations in NW LA could be MUCH Better (IMHO)
First, I am completely for neighborhoods unifying in order to get a better lease agreement with the O&G companies. But I’ve seen reports of neighborhood associations that were frankly more of a hindrance than a help.
I’ve read about and talked to people in the DFW area about this subject and we here in NW LA could learn a lot from them. Here are a few:
Homeowners need to formally belong to an alliance. – Think of this as a union of sorts. This alliance should negotiate with strength in numbers, but all bids should be presented to the alliance for approval / denial. For example, Twin Cities is now going to homeowners and saying if you get 80% of your neighbors to sign you get $X. Twin Cities should be dealing with the alliance and not the individual homeowner. But until they hear the phrase “I’m a part of my neighborhood alliance, talk to them”, enough times their practices will not change. Most alliances in the Fort Worth area accept membership either through Homeowners Associations or filling out a simple form saying that you belong to the alliance. Note: An alliance membership does not remove the homeowner’s right to sign with any company they chose.
Alliances need to reach across neighborhoods. – It was encouraging to see this start in South Shreveport with the ShreveCentre Coalition, but it could be done in South Bossier, West Shreveport, DeSoto, etc. The obvious advantage is strength in numbers, but also the leveraging of resources. More on this later.
People need to understand that this takes time. – Some of the neighborhood associations in Texas have been negotiating for 6–12 months. And almost universally, the longer the negotiations have taken, the better the outcome. Chesapeake just released 25 million shares of stock to raise money to lease land. They are not leaving town soon nor are their offers good until a certain date. Patience is a virtue.
People need to participate in the process. – This is easily the most important step. Go to meetings. Volunteer. And read everything. The more everyone is informed on the process, the better decisions they will make. I would guess those of you that read this site regularly are among the more educated on this subject. Help out your neighbors.
Alliances should not profit in the process. – I personally would pay a small fee to help defray costs in the process. Before you gasp think of this: There are lawyers (and even CPAs!) negotiating leases for random groups of people and charging them a percentage of their signing bonus. I’ve heard 4-5% in most cases. If you get $10000 in a signing bonus, you’ve just paid this guy $400-500. Wouldn’t you rather get together in an alliance; everyone contributes $20 and hires your own lawyer? Then you get your entire signing bonus.
(Note: Most associations in the area, including the ShreveCentre Coalition, are completely free.)
I hope this mission statement hasn’t turned you off. It’s just something I felt needed to be said. Hopefully more of you out there have good ideas that will help our neighborhood alliances and ultimately all of us.
Here is a link of an alliance's web site that is north of Fort Worth: http://360nw.info
I'd like to see this kind of thing in NW LA!
I’ve read about and talked to people in the DFW area about this subject and we here in NW LA could learn a lot from them. Here are a few:
Homeowners need to formally belong to an alliance. – Think of this as a union of sorts. This alliance should negotiate with strength in numbers, but all bids should be presented to the alliance for approval / denial. For example, Twin Cities is now going to homeowners and saying if you get 80% of your neighbors to sign you get $X. Twin Cities should be dealing with the alliance and not the individual homeowner. But until they hear the phrase “I’m a part of my neighborhood alliance, talk to them”, enough times their practices will not change. Most alliances in the Fort Worth area accept membership either through Homeowners Associations or filling out a simple form saying that you belong to the alliance. Note: An alliance membership does not remove the homeowner’s right to sign with any company they chose.
Alliances need to reach across neighborhoods. – It was encouraging to see this start in South Shreveport with the ShreveCentre Coalition, but it could be done in South Bossier, West Shreveport, DeSoto, etc. The obvious advantage is strength in numbers, but also the leveraging of resources. More on this later.
People need to understand that this takes time. – Some of the neighborhood associations in Texas have been negotiating for 6–12 months. And almost universally, the longer the negotiations have taken, the better the outcome. Chesapeake just released 25 million shares of stock to raise money to lease land. They are not leaving town soon nor are their offers good until a certain date. Patience is a virtue.
People need to participate in the process. – This is easily the most important step. Go to meetings. Volunteer. And read everything. The more everyone is informed on the process, the better decisions they will make. I would guess those of you that read this site regularly are among the more educated on this subject. Help out your neighbors.
Alliances should not profit in the process. – I personally would pay a small fee to help defray costs in the process. Before you gasp think of this: There are lawyers (and even CPAs!) negotiating leases for random groups of people and charging them a percentage of their signing bonus. I’ve heard 4-5% in most cases. If you get $10000 in a signing bonus, you’ve just paid this guy $400-500. Wouldn’t you rather get together in an alliance; everyone contributes $20 and hires your own lawyer? Then you get your entire signing bonus.
(Note: Most associations in the area, including the ShreveCentre Coalition, are completely free.)
I hope this mission statement hasn’t turned you off. It’s just something I felt needed to be said. Hopefully more of you out there have good ideas that will help our neighborhood alliances and ultimately all of us.
Here is a link of an alliance's web site that is north of Fort Worth: http://360nw.info
I'd like to see this kind of thing in NW LA!
Views: 180
Replies to This Discussion
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Permalink Reply by Brigette on
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They can sign with whatever group. I would hope in the end that we all get the same offer so there are no hard feelings. The people signing with the other negotiator have a contract. His contract states that no matter when they sign, whether with him or without, they have to pay the percentage of fee they have already agreed to on the contract. So once they sign, they have to pay this man whether he does work for their benefit or not. I'm not a lawyer but it looks like a pretty cut and dry contract. People have asked our group how to get out of it but we don't know what to tell them once it has been submitted. This all will probably divide neighbors when most of us thought it would be a great way to come together. Money does funny things to people.
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Permalink Reply by Snake Stewart on
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I am glad you gave us a little more insight into your situation and I say kudos to you and your group.I am saddened by the feeling of superiority by some of our own next door neighbors.Actually , their offer will have to be 5% better then yours for you'll to come out even . I do not know legally if there is anything that can be done.As long as your group has extended the olive branch I feel that you have done what you could.Do not conform to their offer, if you can do better,just to keep feelings from getting hurt.We all have to make decisions and we must be happy with those that can't be undone. Hope everything turns out all right for you guy's.
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Permalink Reply by WK on
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I agree with Brigette's assessment of the Merrill contract. It is the equivalent of listing your house with a Realtor, stating that all leasing inquiries must be referred to Merrill. This is quite different from the verbal explanation I got from one of the COG leaders who said that Merrill would negotiate a deal, present it to the group, and we would all be free to walk away if we didn't like it.
It is also interesting to note that the agreement handed out at the initial meeting and the agreement handed out at the second meeting had different wording. For instance the statement, "The final decision to sign the lease remains with the individual," was dropped in the second version.
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I assume you are referring to the COG that has met at the church on Shed rd. I would not say that anyone in that group "elected" to be represented by Merrill. I was under the impression in attending that Carriage Oaks was being brought together as a group to better negotiate with the gas companies. What I found was a GE Merrill sales pitch and no alternatives for negotiation.
I was not impressed with the presentation or the error-ridden blank contract I received at the first meeting (which I'll try to attach). I've since found out that the leaders of COG turned down offers to join up with Stockwell's group. My emailed questions to the leadership of COG re alternatives to Merrill went unanswered. If, by all accounts including Merrill's, we're better off offering a larger, contiguous land area to the gas company, then why not unite the two groups?
COG is not speaking for Carriage Oaks, COG represents only GE Merrill. - Attachments:
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gerry_merrill.pdf, 5 MB
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Permalink Reply by nisie, not a happy camper landowner on -
Sounds like there needs to be one big meeting of all homeowners assoc in the area for coordination and education.
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Permalink Reply by LeenyDeeny on
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How do you join the ShreveCentre Coalition, or do you have to belong to a neighborhood association first?
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Permalink Reply by Renee S Cd1 on
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LeenyDeeny,
What part of town do you live in?
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Broadmoor
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Permalink Reply by Renee S Cd1 on
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Great - see the events on the main page - they are trying or organize you guys to be part of SCC.
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Thank you so much!
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Just what I didn't want to see. I don't trust one of those people as far as I could toss him. I might go listen but this is exactly what I want to avoid.
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Permalink Reply by Renee S Cd1 on
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Let me just say this. Personalities don't matter. None of those people listed hold any position of power in the ShreveCentre Coalition. There is a separate attorney and negotiating committee for the SCC. The most important thing is to get the majority of Broadmoor together with other neighborhoods in order to present a large block of acreage attractive to the oil and gas companies. Which translates into more money for us. Don't let some dude's personality cheat you out of your share.
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