Thank You for sharing.

First off, this report and your summary shows that the Board of the Estonian House did not hire competent managers over the years or they did not heed concerns expressed by Managers over the years. The report is really highlighting the board’s negligence in not understanding asset management or the lack of understanding that borrowing funds to maintain the asset (the Estonian house) is a valid expense.
And your comments "over the last decade" that discussion of how YOU (the Board) have been managing the asset is not sustainable should not have meant "sell" it should have meant borrow funds to fix the heating and the roof.
How many millions have you borrowed for "due diligence" for the Madison project… that could have been used to upgrade the systems and infrastructure?
Just putting in an energy efficient heating system with borrowed funds would have dramatically reduced your operating costs SIGNIFICANTLY! The payback of an efficient boiler could have been calculated. Not only that, over the years there has been incentive programs from all level of governments that would have even given you rebates. This just screams incompetence.
Thus forgive me if I look at this report as “fail” on the part of the board for lack of understanding asset management. Please ask the Credit Union if they would have lent you funds to upgrade the heating system. The answer should be YES… since at that time there was NO LIEN on the Estonian house. NOW though there is all the “due diligence” costs for figuring out how to sell and hiring how many experts to work on the new location’s design… you have spent way more funds in trying to rip the Estonian house away from us.
One final note, the rentable space of the Estonian house could be calculated… and with proper marketing it could generate a lot more money than the Madison proposal. The Estonian House has larger square footage to rent. The proposed, super expensive, good looking Madison project would have a smaller foot print to rent out… and thus could NEVER generate higher revenue than the current Estonian house.
You have never done a good job marking the spaces at the Estonian House.
Finally, now that you know that work needs to be done and the Madison project’s completion will be YEARS away… you will be forced to upgrade the Estonian house infrastructure in order to enable us to continue to have the continued use of the Estonian House while you continue your “due diligence” of the new project. That also is short sighted… and I say we vote to stay at the current Estonian House where our costs will be much less and our revenue could (if managed and marketed properly) would be much higher than it is now. And it is time to put competent people onto the board who truly understand asset management.

Just reviewed the summary report by PINCHIN

You RENTED a water heater? wow those are so expensive to rent and super difficult to buy out of the contract. Short sighted decision. Again a loan from the bank could have had less costs to purchase it.
The report points out that NO BUDGET for ongoing maintenance of major components of the building. That is like saying we will deal with issues when they fail. The report also mentions LED Lights have not even been considered (again... rebates were available and reduced operating costs after changing to LED lights are significant.)
Code violations... wow... no thought of having a person to inform the board of the city or provincial code changes. PINCHIN report says "the importance of an effective maintenance program cannot be over looked because it plays such an important role in the effectiveness of Site Building equipment.” Yeah!!!!
I believe the Board just proved their lack of understanding asset managment and lack of understanding Marketing… where one WORKS daily on Marketing to rent out every square foot every day at good rates. Especially since a building as an asset is valued by the revenue it generates. Higher revenue, Higher value.
What most competent asset managers do is look at ways to reduce costs. That typically means upgrading/replacing old heating systems to new energy efficient ones. Any Engineer that comes to give you suggestions would compute the payback period. Meaning the cost savings of spending funds. Just like low flow toilets will reduce costs. The board’s aversion to spend funds in upgrades only increases maintenance costs and does not allow for energy efficiency…. Which is super important.
If you are going to manage the proposed new Madison building with a much reduced rentable area than the current Estonian House…. You are NOT going to ever payback the mortgage that will be needed. The board has not proven their ability to manage an asset.
I believe this report makes a stronger case to KEEP the current Estonian House. Since the Madison building will take years before it can be usable. Thus, we need to update the current Estonian House so as to have a place for all our events. And if we are spending funds, we might as well keep it and focus on competent management.

This Pinchin report simply identifies the very modest sum required to update Eesti Maja. $1.4 million or even the inflated (paid consultants are needed?) $1.75 million over 10 years, in a Toronto where the average home sells for $1 million, to be generated from a 5-10,000 Estonian person community as well as an Eesti Maja run as a business is eminently doable. I personally would be delighted to take on the project.

The Peter Principle is an observation that the tendency in most organizational hierarchies, such as that of a corporation, is for every employee to rise in the hierarchy through promotion until they reach the levels of their respective incompetence. The Peter Principle is based on the logical idea that competent employees will continue to be promoted, but at some point will be promoted into positions for which they are incompetent, and they will then remain in those positions because of the fact that they do not demonstrate any further competence that would get them recognized for additional promotion. According to the Peter Principle, every position in a given hierarchy will eventually be filled by employees who are incompetent to fulfill the job duties of their respective positions.

We are seeing this "Peter Principle" in practice with our current Estonian House Board of Directors. The level of short-sightedness, incompetence and callous disregard for the health of the community is embarrassing to say the least.
Time to clean house and start anew. The shareholders should take back the house, fire the current board and elect a new more responsible board who will endeavour to preserve the Estonian House and breathe new life into this heritage site and home of the Estonian Toronto community.

I have been reading the report on and off during the day.
Seems that Vaino and Jaak are on the right track.
The released report has a paragraph that states.
“Based on Pinchin’s review of the property, conducted on November 17, 2017, the site Building appears to be in satisfactory condition commensurate with its age and in comparable standing to other similar commercial properties in the area. Based on our visual assessment, the Site Building appears to have been constructed in general accordance with standard building practices in place at the times o construction.
Goes on to say (in my own words) that now is the time to get on with the work of upgrading the systems.
So yes Vaino... it is worth "taking it on" as you said. It will be at a much lower cost than the proposed new venue.

I'm shocked.

We've been told that staying on Broadview is not a viable option but it seems like if the board didn't blow all this money on consultants working the Madison project, we'd be just fine and there might be any shortfall at all. Yikes!

I also find it interesting that in the latest report from the board, it was mentioned that talks were ongoing with an unspecified donor to cover the shortfall of funds required for the Madison project which raises some questions:

1)
Just how big is this shortfall (I'm guessing much bigger than 1.4 million, would be happy to be wrong)?

2)
Did they look for donors to fix up the Esto House (my guess is no, would be happy to be wrong)?

3)
How does it make sense to sell us the Madison project and tell us that the Esto House isn't viable if the funds required to stay are less than the funds required for the Madison project?

4)
Why is the board filled with people who seem to hate the place and want to everything in their power to get rid of it. Where is their motivation coming from and where does this strong suicide instinct come from?

I remember one board member wrote an article supporting the move saying that the Madison project should be like a "kirss tordil". From all I've heard so far, it seems like instead of a "tort", we unfortunately have a steaming pile of something much less appealing.

Directors of EH commissioned the Pinchini Ltd. report without shareholders approval. The report was unnecessary since 3 professionals (Maimets, Saar & Laikve ) had already provided the info. It was an irresponsible decision when according to your own info a qualified purchaser had already been found a while ago. Obviously this sum can not be regarded as being part of the "due diligence" activity, since it was directly commissioned by the Board without shareholders approval.

Hr Laikve appears to be confused. Shareholders elect directors. Shareholder approval is not necessary for the EH to engage consultants to review the state of the building. Shareholders do not manage the operations. This is so fundamental to corporate governance. Hr Laikve also professes to be a retired architect. Thus, I am not sure whether the professional standards of his previous profession allow him to any longer provide professional opinions. Perhaps another architect could provide insight here.

Guido Laikve, you are not a professional. You have surrendered your License and Certificate of Practice and are now an Architect (Retired). Please do not mislead our community. I quote from the Ontario Association of Architects Guidelines for Surrendering a License: “A former architect who has been appointed by the Registrar to hold Retired Member status may use the title “Architect (Retired)” provided its use does not in any way mislead a member of the public into believing he/she is a holder of a License and Certificate of Practice and entitled to provide architectural services.” Only Registered Architects can call themselves professionals.

Thank you for the clarification.

The benefit to all of us was that Hr. Laikve and the other educated, extremely competent, knowledgeable and highly skilled individuals in their area of expertise, gave us their opinions, based on their many years of professional experience..all for nothing, where as, "professional opinion" that cost us another bundle of money, came back with the same conclusion.... the Estonian House is sound.

I was at this evening's Esto House information session. My take was that the majority of the attendees left feeling that there had been a fulsome disclosure. Yes, the due diligence is costly, but this is what professional advice costs. Not doing the appropriate due diligence is even more costly. It was evident that the team engaged on the initiative had done the appropriate due diligence and had outside professional advisors had been retained, where appropriate. A walk-through of the EH hardly counts as "due diligence". I am a proud Estonian, and want future generations to be so as well. We want the new Estonian Center to be a welcoming place. There are so few of us (1.1 million on the planet), so let's pause ... and really recognize that in a near decade of seeking a solution, this is the closest we have been to a solution. I was truly impressed by the evening's presentation and wish that all community members had been in attendance.

Please read the detailed itemized report by the professionals who did an onsite inspection in September 2017:

http://www.eesti.ca/videovestl...

The Pinchin report two months later is an Entry-Level or Baseline Property Condition Assessment (PCA) and Report (PCR): “The assessment is based, in part, on information provided by others. Unless specifically noted, Pinchin has assumed that this information was correct and has relied on it in developing the conclusions.... Pinchin was accompanied at the site visit by the Estonian House’s Financial Manager, Tõnu Orav, and a member of the Estonian House Board of Directors, Rein Kuris. They interviewed these individuals."

For details of earlier inspections, with relevant cross-references to the updates, read also: http://www.eesti.ca/part-7-tir...

It's great Ingrid that you know what's wrong, but we have an expression in Estonian, "Kus
leiad viga laita, tule ise aita.".

valid questions. sad answers. motivation? money, greed, ego, desire to be the biggest fish in a shrinking, already small pond with no regard for the Estonian community whatsoever

"The report does not make recommendations on longer-term issues or costs beyond the 10-year time horizon. The scope of work also does not include any evaluation of the functionality of the current building nor does it address any aesthetic or decorative shortcomings. In other words, the study only identifies repairs needed to maintain the building’s core systems and not improvements targeted at improving the revenue-generating potential of the house."

Unfortunately this "modest" $1.4 million option is merely a short-term Band-Aid and not a solution in itself. This money will not make the current Eesti Maja self-sustaining. This money would not cover the cost of making the kohvik, or estore desirable rental properties. This money would not cover capital costs beyond 10 years. What then- hold our hands out for another $1.4 million? No responsible bank would offer a loan to the Eesti Maja for capital upgrades let alone these repairs under its current business model (essentially a charity case). This $1.4 million, and subsequent $1.4 millions will have to be raised through fundraising and charity. A good cause- yes, but this goodwill would be better spent on actual community activity by supporting the organizations and programming directly. Between EM, the VEMU project, three camp properties etc our goodwill is spread too thin.

Lashing out at our community’s successful institutions that have propped up the Eesti Maja for this long through significant rents and charity is counterproductive. Blaming the current board of directors for the financial state which has been brewing and ignored by boards and shareholders for the past 20-30 years isn’t going to help. Self-victimization through petty and petulant cartoons is just sad. Blaming voting blocks for a vote passing 60% (or 59%, heh) to 40% is ignorant. If the pank earned voting shares from Eesti Maja for capital expenditures or services rendered then they are entitled to vote those shares.

Demographics are destiny. Our community is shrinking. It's an unpleasant reality. Our organizations know this and have had to adapt and/or consolidate to survive. We have to accept that concessions must be made with regards to our community home. No realistic option will satisfy everyone or match up against the golden era of the Eesti Maja. Whether the Madison Project will be sustainable is yet to be seen, but people have to stop wasting their energy being angry at numbers. Accept that unpleasant change is coming and that whatever happens we’re going to need to suck it up and work through it together.

"As much as Tartu College is the "academic" brains of our community, Esto House is the "heart". You destroy either one to feed the other, then you will decimate the host... Stop this folly, and let's all come together and work out another option."

Totally agree. The "academics" and "heart" make up the whole of our community, we can't shut half out.

The "heart" side needs to come up with a substantial plan like Madison has, though. Get experts in the field to do it for $, if need be. Otherwise you are shooting blanks.

The 3Org's funded due diligence has been proceeding. Lots of fire and fury from those opposing the initiative. Yet no tangible plans. Casting of stones at past EH Boards is also not a solution. Why be backward looking? Let's not waste time on that and focus on a solution. Let the due diligence be completed. Those attending the info session had the opportunity to see how professionally this has been carried out. Yet many may sayers sadly chose not to attend. Strange that this should have been the case if they are so passionate about a home for our community.

No need to create the dichotomy. In a large city like Toronto we do not need to turn to our heritage community for intellectual stimulation. We are ALL in it because of the heart.

You speak such truth and seem to be one of few that makes any sense here. Such folly, such sadness. Why are we not listening and stopping this nonsense to come together collaboratively, once and for all, especially at this time in our history? Isn't it ironic how you, Allan, Ingrid, Vaino, Guido - so many with the most honorable of intentions are not afraid to show who you are. The Madison side on the other hand, continues to hide behind monikers, comfortable hurling insults and rote answers and naming names, though easy to guess through their writings who they are. Similarly easy to guess their motivations and which orgs and individuals stand to gain. It has been quite the campaign, indeed a very selfish selling of the "parents house" and selling out all this community has built, has become and stands for. Shameful and heartbreaking.

Interesting news release from 4 years ago, where ETCU bought the 11 Madison property as a risk management solution for their own sustainability. Also interesting to note that ETCU planned on leaving one branch open at the Estonian House. Hmmmmmm, I guess things have changed a bit.

March 4, 2014

Estonian Credit Union Acquires Property

The Estonian Credit Union closed a deal to purchase the property at 11 Madison Avenue in Toronto on Friday, February 28, 2014.

The primary reason for acquiring this property is part of the Credit Union’s risk management to secure facilities for continuity of service and operations for its members in preparation for the anticipated re-development of the Estonian House, which is the location of our current operations. The purchase was further attractive due to the prime location of this property and, especially, its proximity to Tartu College, which is a major hub of Estonian community activity. Through this acquisition, the Credit Union positions itself to provide continuous seamless service in close proximity to community activities throughout any future development process.

The purchase will have no impact on day-to-day operations in the near term. In other words, ECU will continue to operate out of one branch at the Estonian House and will use the property to generate rental income in the interim.

With $108 million in assets, the Estonian Credit Union is one of the largest financial institutions in the world to be owned primarily by shareholders of Estonian heritage. As such, the Credit Union takes its commitment to and support of the Estonian community very seriously. ECU will continue to support and work together with the Estonian House, the Estonian Foundation in Canada, and Tartu College to deliver a financially sustainable community and cultural centre that meets the needs of the Estonian community and that we can all be proud of.

As we celebrate our 60th anniversary, we trust our members and the Estonian community at large will join with us in agreeing that the Credit Union has positioned itself successfully both to manage the change presented by the Estonian House re-development project and to secure a foothold for future needs.

Board of Directors

Estonian (Toronto) Credit Union Limited