Is the WMF looking for a sub-lease tenant? Options

[thekohser]

Interesting scenario posted on Foundation-l mailing list this morning.

Greg

[Kelly Martin]

$25 a square foot? You can rent space in the Sears Tower (sorry, the Willis Tower, a/k/a The Big Willy) for $10-$12 a square foot, and that's A grade commercial. Stillman is at best B grade and might even be C grade; no way it's worth $25 a square foot.

[One]

$25 a square foot? You can rent space in the Sears Tower (sorry, the Willis Tower, a/k/a The Big Willy) for $10-$12 a square foot, and that's A grade commercial. Stillman is at best B grade and might even be C grade; no way it's worth $25 a square foot.

I wouldn't be so sure it's an outrageous asking price (even if it's a far-fetched market price). Poking around, it seems that San Francisco is just fabulously expensive. http://www.joneslanglasalle-ca.com/researc...nsight_2Q09.pdf

It's amazing to me that the best possible real estate in Chicago is cheaper than crap in SF. They chose a helluva time to expand into Wikia space.

This post has been edited by One: Fri 4th September 2009, 9:01pm

[GlassBeadGame]

$25 a square foot? You can rent space in the Sears Tower (sorry, the Willis Tower, a/k/a The Big Willy) for $10-$12 a square foot, and that's A grade commercial. Stillman is at best B grade and might even be C grade; no way it's worth $25 a square foot.

I wouldn't be so sure it's an outrageous asking price (even if it's a far-fetched market price). Poking around, it seems that San Francisco is just fabulously expensive. http://www.joneslanglasalle-ca.com/researc...nsight_2Q09.pdf

It's amazing to me that the best possible real estate in Chicago is cheaper than crap in SF. They chose a helluva time to expand into Wikia space.

Wow, Class A in the Central Business District at 39.00/sq ft. Coming from deep in fly-over America that seems extreme. Of course a non-profit doesn't need (and it does appear unseemly) Class A space and doesn't need to be in the CBD. From what I've seen WMF's space it is neither. I suppose you could make a business reason argument for being in SF but not in such a rarefied neighborhood. WMF resources would be better used building a staff infrastructure that could impose some policies support responsible editorial and social concerns.

But my understand is Wikia rents from WMF. If that is right I see no impropriety. If I have that backwards it would be a serous problem.

[Kelly Martin]

But my understand is Wikia rents from WMF. If that is right I see no impropriety. If I have that backwards it would be a serous problem.

It would be improper if the rent was substantially below market, since that would amount to self-dealing resulting in financial detriment to the nonprofit. However, the reality is that Wikia is leasing to Wikimedia, which means the lease is being used essentially as a vehicle to "launder" restricted donations into private funds. And, based on the discussion that followed, it seems that Wikia's offer wasn't the lowest; it was merely judged to be the "best".

[No one of consequence]

But my understand is Wikia rents from WMF. If that is right I see no impropriety. If I have that backwards it would be a serous problem.

It would be improper if the rent was substantially below market, since that would amount to self-dealing resulting in financial detriment to the nonprofit. However, the reality is that Wikia is leasing to Wikimedia, which means the lease is being used essentially as a vehicle to "launder" restricted donations into private funds. And, based on the discussion that followed, it seems that Wikia's offer wasn't the lowest; it was merely judged to be the "best".

TFA says Wikia did not have the lowest bid but they lowered their price to be "closer", whatever that means. Needs a reliable source.

[thekohser]

But my understand is Wikia rents from WMF. If that is right I see no impropriety. If I have that backwards it would be a serous problem.

It would be improper if the rent was substantially below market, since that would amount to self-dealing resulting in financial detriment to the nonprofit. However, the reality is that Wikia is leasing to Wikimedia, which means the lease is being used essentially as a vehicle to "launder" restricted donations into private funds. And, based on the discussion that followed, it seems that Wikia's offer wasn't the lowest; it was merely judged to be the "best".

TFA says Wikia did not have the lowest bid but they lowered their price to be "closer", whatever that means. Needs a reliable source.

Will you accept the published word of the Deputy Director of the Wikimedia Foundation?

Also, what do you mean by "TFA says"?

This post has been edited by thekohser: Sat 5th September 2009, 5:16pm