Welcome to Burbank Masonic Lodge No. 406

      This is notice that at the November Stated Meeting, the members present agreed to bring to a vote at the January 2, 2003, Stated Meeting, the proposed sale of the real property, which has been leased to Chevron Texaco Company, formerly Standard Oil Company of California since the 1950's.
      Chevron has occupied the property pursuant to a "triple net"' lease with successive five-year options. The current option period expires on December 31, 2002. Chevron has advised us in writing that it does not intend to exercise its one remaining option, which would have extended the lease to the end of 2007. It has, however, requested, and was granted at the November Stated Meeting, a six-month extension through June 30, 2003.
      At the December, 2000, Stated Meeting, the Lodge, after years of urging from Grand Lodge and in order to shelter the individual Lodge members from liability, voted to transfer title to the subject property to the Burbank Building Association, the non-profit corporation which holds title to the real property on which The Burbank Masonic Center ("Lodge building") is situated. The California Masonic Code ("CMC") prohibits lodges from owning real property and provides that building associations (temple boards) may own real property for the purpose of constructing a lodge building. Our ownership of the Chevron site, whether by the lodge or the building association, is technically in violation of the CMC, but we have been allowed to continue to do so.
      An escrow was opened, but the actual transfer has been delayed for almost two years because of the previous inability of the former Grand Lodge committee representative to meet with us and, currently, a concern the transfer may trigger a reappraisal for property tax purposes. A substantial increase in property taxes would be Chevron's responsibility under the net lease, but extremely detrimental to our finances if we have to pay them after Chevron vacates the premises.
      Recently, the Building Association obtained a formal appraisal and, subject to the approval of the Lodge and Grand Lodge, listed the property for sale. Two offers have been received, one of which has since been withdrawn. The remaining offer, contingent upon the buyer obtaining financing, is on very favorable terms considering the appraised value. Chevron, pursuant to the terms of the lease, has the right ("of first refusal") to purchase the property on the same terms and conditions within sixty days of written notice. Chevron is apparently not interested in purchasing the property, but is interested in supplying gasoline and petroleum products to the operator of the service station.
      The net rent received from Chevron of over $3,000.00 per month has been the primary source of the Lodge's revenue.
      At current interest rates, it is unlikely that we could totally replace that income from the investment of the sale proceeds.
      The CMC prohibits us from purchasing another parcel of real property as an investment. On the other hand, if Chevron vacates and leaves us with a vacant lot, we will have no income and substantial expense in the form of taxes, insurance and maintenance (weed abatement, fencing, etc).
      It is very important that you attend both meetings and voice your Opinion!
Fraternally,
Marian Proctor Jr, P.M.