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Dear Members of the Estonian Credit Union

apr. 22, 2017 Estonian Life No. 16 2017


Next Tuesday April 25th, 2017, shareholders of the Estonian House will vote on a special resolution to empower the Estonian House Board:
  • To enter into a due diligence process with the Estonian Credit Union, the Estonian Foundation of Canada, and Tartu College to develop a new Estonian Community Centre on Madison Avenue
  • To negotiate and execute appropriate terms, conditions, and agreements on their behalf and as the Board deems necessary and advisable to implement the project
  • To enter into a process to sell the 958 Broadview Avenue property and use those proceeds to purchase land and construct the new centre, if, and only if, the due diligence process demonstrates to the satisfaction of all four organizations' boards, that a viable, financially sustainable community centre can be built. If the due diligence results are not satisfactory to all four organizations, 958 Broadview Avenue will not be sold.

The Board of Estonian Credit Union will vote its shareholdings in the Estonian House in favour of the resolution.

We believe that this decision is in the best interests of the Estonian House, the Estonian community, and the Estonian Credit Union. We have a thorough understanding of the risks and income constraints presented by the antiquated building infrastructure and layout of the Estonian House. The Estonian House does not have the millions of dollars required to make the building viable. The Estonian Credit Union has participated actively for over a decade with the Estonian House and other community organizations in the search for affordable solutions. Expert after expert came to the same recommendation – use the value in the end-of-life building by selling it and buying or building a new community centre.

Risk of Major Building Infrastructure Failure

It is only a matter of time, before there is a failure of major building infrastructure. The Estonian House does not have the financial resources to respond. Piece-meal renovations over time are not an option, as the roof and guts of the building – plumbing, heating, electrical wiring and mechanical systems must be upgraded. This means opening up the walls, which may contain hazardous materials. Further, Estonians' use of the building continues to decline, straining operating results to the point where the Estonian House no longer breaks even, despite heavy subsidies. The building is not viable and the organization is on the verge of insolvency.

Unacceptable Risk

This presents unacceptable risk to our community, but moreover to the credit union. As a financial institution, we require significant lead-time to move to a new location in an orderly fashion. We cannot risk a major infrastructure failure. It would materially affect our business operations and our members' access to the credit union. It is critical to both our community and our credit union to stay together and to not be forced to vacate in an emergency situation. The credit union board is answerable to its members and regulators and has a fiduciary duty to mitigate unacceptable risk for the credit union; preferably in concert with united community action.

Be Informed and Vote

We – the Board and CEO of the Estonian Credit Union – encourage all our members to participate in the upcoming open houses this Sunday, April 23rd from 3:30 – 5:30 pm on Madison Avenue for a thorough understanding of the proposed project and the current condition of the Estonian House. We encourage all Estonian House shareholders to exercise their democratic voice and vote at the upcoming special meeting. This is an important decision for the future of our community in Toronto.

Window of Opportunity

We have a short one-time window of opportunity to consolidate to a dynamic cultural hub on Madison, leveraging the existing strengths of the Tartu College cultural centre and the Estonian House property. We have the opportunity to do so in a planned and controlled fashion that keeps the community and the credit union together and strong, and that protects the legacy of our parents and grandparents. Let's not squander it.

Ellen Valter, Chair
Tiina Liivet, Vice-Chair
Karin Ots, Vice-Chair
Mati Pajo, Secretary
Lea Kõiv, Chair Audit Committee
Kuldar Lindvere, Director
Peter Poolsaar, Director
Mihkel Liik, Director
Anne Leius, Director
Anita Saar, CEO

Jaga

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