“We can comfortably fit more houses and apartments in town because we don’t waste space on parking lots, driveways or wide streets.”
“Oh, that makes sense,” I said.
“The Trust has 56 employees,” he continued, “which is actually quite lean for a business of our size. I’m the lead employee, the CEO, and I was hired by the directors of the Trust, who were the adult members of the Wallace family. You are now, of course, the sole director of the Trust.”
My stomach did somersaults and I felt another headache coming on. “What does that mean?” I asked, bewildered. “Do I have to work here? I don’t know anything about business.”
The lawyer Thompson spoke up. “The directors decide the overall policies for the operation of Wallace Town. The directors also must approve any large expenditure of funds. Approval of smaller expenditures is delegated to Mr Warner and the other managers, but the directors have a supervisory role over everything.”
Warner jumped back in. “You could perform your duties as the director of the Trust long distance from Maryland, but it will work smoother if you live here and come to the office as needed.”
“Oh god,” I groaned. Life as I knew it was going up in smoke.
“Ms Wallace, there is something you should know,” the lawyer said. “The documents establishing the Trust state that the apartments, commercial properties, public spaces and streets can never be sold… except on one condition. There is a provision that if the number of direct descendants of Andrew Wallace ever falls below two, all of the properties held by the Trust may be sold at auction to the highest bidder.”
It took my brain a moment to catch up. One is less than two. “I can sell everything?” I asked.
“Yes.”
Suddenly I saw light at the end of the tunnel. “Well, I should do that, right? It makes sense because like I told you I don’t know anything about… anything.”
Warner and Thompson shared a worried look.
“What’s wrong?” I asked.
“You have every right to sell, Ms Wallace,” Warner said, “but if you do it will have ramifications. Let’s say a real estate investment corporation wins the auction and buys Wallace Town for $400 million. That corporation is going to want to maximize the profit on its huge investment. The first thing they’ll do is raise the rent on all the apartments and businesses. While rent has skyrocketed in the rest of this region in recent years, we’ve only made small increases to cover rising costs. If rents are increased to market rates, it’s going to be a big hit for our residents and businesses.”
I had a sinking feeling and that light at the end of the tunnel faded. “But… but market rate rents are fair, aren’t they?” I was grasping at straws.
Warner nodded. “Yes, but your family decided to base rent on a markup over expenses rather than raising rent just because everyone else in the area did. Our affordable rents mean our residents have more money in their pockets and our businesses make more profit. The community overall benefits greatly.”
I frowned. “I thought I had an easy way out,” I confessed.
“We understand,” Warner said. “Selling would be a perfectly reasonable decision. But we hope you don’t rush into anything. You might like it here.”
“I do like what I’ve seen so far,” I sighed. “What if I gave all the property to a nonprofit and let them run it?”
“It’s a good thought,” the lawyer replied, “but the Trust’s governing documents specifically state that if you want to transfer ownership, it has to be though an auction to the highest bidder. A nonprofit will not be able to outbid major real estate investment corporations.”
“Well, crap,” I grumbled.
The lawyer had me sign documents that officially made me the chairman of the board of directors and made my signature the only one authorized for approval of large transactions. “You are now the queen of all you survey,” Thompson joked.
“Oh god,” I groaned again.
That made Warner and Thompson chuckle.
“Try not to worry, Ms Wallace,” Warner attempted to soothe me. “You have a lot of people working for you and we’re good at our jobs. Your assistant and I are here to help with everything.”
“Is the Trust in good financial condition?” I inquired.
“Yes,” Warner answered. “We turn a profit every year and our reserve fund has grown to $90 million.”
I blinked a few times. “Jesus Christ, that’s a lot of money.”
“Yes it is,” he agreed. “Your relatives were very cautious. The reserve fund is, of course, available for maintenance or improvement of our properties. We’ve also paid cash for some new construction projects rather than taking out loans.”
The lawyer added, “If you sell, the reserve fund will be paid out to you immediately.”
My mind boggled. $90 million plus $400 million or more from selling the properties. “Holy cow,” I said in a daze.
They had me approve some stuff to continue work on construction projects that were already underway. They were formalities but even I could see that if I wasn’t around to approve things, work would quickly grind to a halt.
Warner broached a difficult subject. “I’d like to discuss a memorial service for those who died in the plane crash,” he began. “Normally it’s not the role of the Trust to take on such things, but this is anything but a normal situation. The staff and I would be honored to arrange the service, if you approve, Ms Wallace.”
“Yes. Thank you. I wouldn’t even know where to begin,” I told him.
He nodded. “Many people will want to attend, so an outdoor service is my suggestion. But if you prefer we can hold it indoors and make it by invitation only to control the size of the crowd.”
“Um… I don’t want to keep people away, so let’s have it outside. I hope the weather cooperates.”
“With Christmas coming up so soon, the service should be held as quickly as possible. I suggest Wednesday.”
“That’s only two days away,” I replied.
“We can get it ready,” he assured me.
“Okay. I leave it in your hands.”
“Would you like us to prepare remarks for you to read at the service?” Warner inquired.
I shook my head. “I don’t want to speak.” I was feeling overwhelmed. First the business and now a memorial service. It was too much. I had an urge to run and keep running until I was back home.