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More info:
Friends, I'm writing to offer the facts as you'll hear rumors
flying around the next several days. Tommy - one of our favorite
Docents - and I were interviewed by KRON-TV 4 for a segment that aired
on last night's 9 o'clock news; I was also interviewed by the Alameda
Journal. In both instances, they were "tipped" about the story -
and, though it did not come from the Hornet, we will stand tall and
present the facts without bias or emotions.
As you know, our business is cyclical, with fair cash flow in the warm
months from tourists. We've raised prices on Live Aboard by
$10/person to give us an acceptable profit margin - before, the
program barely paid for itself. We've beefed-up our Events
department and are producing innovative events that will be fun,
entertaining, and profitable - and keep people coming back again and
again.
We continue to search for corporate sponsors and donors; our average
donation is less than $50, and we have very few donors who have
contributed an aggregate of $1,000 or more over the years. What we
really need is a Benefactor, and to move to San Francisco where a
tourism-based business model would be successful (consider that the
Midway in San Diego has - in just 6 months of operation - had 600K
visitors and generated $4M in profits on $7M in sales! We should be on
the San Francisco waterfront.
So why did KRON and the Journal call? They wanted our comments on the
deadline we've been given to pay our power bill by noon on Monday,
and the eviction we're facing from the City of Alameda.
Why the perfect storm of our Power bill and Rent? I don't know. But
we are taking every possible action to build an endowment so we can
settle our obligations and never have to face these problems again.
What are the facts? Our Alameda Power bill has ballooned to $26K.
It's stayed in the $10K - 20K range for quite some time. We've
had an agreement with Alameda Power to keep the bill below $10K.
They've been floating the Ship $10K for years.
Our total bill due in April was $18K. I was about to pay it down to
$10K when we were hit with the bill for April's usage two days ago,
$8K that's due on May 18, so the total bill ballooned to $26K. This
prompted Alameda Power to deliver a 48 hour Disconnect Notice on
Thursday afternoon - they've demanded that we pay the original $18K
in full by noon Monday or be disconnected.
I've offered to pay $8K of the $18K now - and made that payment
Friday to bring the balance to $10K - and pay the second $8K before
it's due on the 18th, but the General Manager of Alameda Power said,
"No." They will no longer be flexible with our balance. Why the
sudden change? I asked if it was something I said or did - "No."
They're just tired of floating us.
The facts are that we owe the money and are trying to pay the bill -
we just have not reached agreement on a timetable for doing so, and I
don't have the cash on hand to pay the bill. And I won't write a
bad check.
The seasonality of our cash flow means that we are caught short on
occasion - such as this week. This shortfall was brought on by the
settlement of litigation which I am prevented from discussing.
There's another matter, our past due rent to the City of Alameda -
which, at $8,500/month, has now reached $500K. Late Thursday afternoon
the City Manager informed me that a special Closed Door meeting of the
Alameda Reuse and Redevelopment Agency will take place on May 17 during
which they will discuss evicting Hornet for failure to pay rent for the
last 4 years. It's true, we owe the rent. It does not matter that
the City has not been able to develop the former Alameda NAS as
everyone hoped. The fact is that we signed a Lease and cannot pay the
rent.
I believe that they will take action. We owe the money and cannot pay.
What can you do to help - right now?
* Help identify a corporate sponsor, or a Donor who is willing to
become our Benefactor
* If you've ever thought of making a major gift to the Hornet but
held back, now would be a good time to act
* Pray. I believe that God has a plan and will help us defend Her from
all enemies - foreign or domestic - as He did during WW2
* If you feel compelled to call the City of Alameda at 510.747.4701,
please be rational! Don't yell and scream. We owe the money!
* Don't blame the City, or Alameda Power - it's not their fault!
If you'd like to talk I can be reached on mobile at 415.999.4700, or
at home, 925.803.9391. I'll be at the Ship over the weekend as well,
510.521.8448 x222.
Thank you all for your continued prayers, words of encouragement and
support!
Together, we can and will get through this storm!
Scott Armanini, CEO
Aircraft Carrier USS Hornet Museum
Pier 3, Alameda Point
P.O. Box 460
Alameda, CA 94501
_________________ Roger Cain
www.sfahistory.org
http://groups.yahoo.com/group/Stearman/
We must limit politicians to two terms:
one in office and one in jail.
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regards, tom
