Confidential • For General Counsel
Legal Strategy Brief
Directives regarding entity structure, asset protection, and the "Future of Luxury Affordable Living" framework.
1 The CLT-PPT Integration
Steward / Host Split
Objective: Liability Firewall & Asset Protection
We utilize a dual-entity structure to separate the Risk (Operations) from the Asset (Land).
- Entity A (The Steward): A Non-Profit Community Land Trust (CLT). Holds the Fee Simple Deed. Zero employees. Zero operational liability. Purpose: Land conservation and permanent affordability.
- Entity B (The Host): The Maker's Stay OpCo (LLC). Owns the *improvements* (buildings/infrastructure) and operates the business. Pays lease fees to the Steward.
- The PPT (Public-Private Partnership): The Host enters into a PPT agreement with the Steward to develop workforce housing, unlocking potential tax-exempt financing.
Directive for Counsel:
Draft a 99-Year Master Ground Lease between Entity A and Entity B. Ensure it contains "Leasehold Mortgage" provisions so the Host entity can secure commercial construction loans against the *value of the leasehold interest*, bypassing the need to leverage the land itself.
2 Homeownership Bylaws
The "Guild Requirement"
Objective: Cultural Preservation
Ownership in the village is restricted to protect the community fabric. It is not an open market subdivision.
- Eligibility: To purchase a home (Structure Only, via Ground Lease), an individual must be an active member of The Maker's Guild or a core employee.
- Cultural Fit: If a non-employee wishes to buy, they must apply to join the Guild, demonstrating alignment with the "Self-Starter" ethos and contributing a skill to the community.
- Resale Restriction: Homes must be sold back to the Trust or to another approved Guild Member (Right of First Refusal).
Directive for Counsel:
Draft the Ground Lease Rider that ties ownership to "Active Guild Membership." Define "Guild Member" legally (e.g., someone who contributes X hours/year or pays Guild dues).
3 Workforce Housing (IRS Section 119)
Tax-Free Housing Compensation
Objective: Compensation Efficiency
We provide housing to staff as a non-taxable benefit under IRS Section 119. To qualify, three conditions must be met:
- 1. Business Premises: The housing must be on the resort property (Zone B/C).
- 2. Convenience of Employer: We must require staff to be on-site for emergencies/operations (e.g., 24/7 guest service).
- 3. Condition of Employment: The employee must be required to accept the housing to perform their duties properly.
Directive for Counsel:
Draft Employment Agreements for all resident staff (Guild Members, Ops Directors) that explicitly state on-site residence is a Condition of Employment. This ensures the value of the housing is excludable from their gross income.
4 Zoning & Ag-Tourism
The "Boneta Bill" Defense
Objective: By-Right Operations
In Virginia, the "Boneta Bill" protects agricultural commerce. By operating a working farm (The Guild's agricultural component), we unlock rights for events and sales that standard commercial zoning might restrict.
Directive for Counsel:
Review local county ordinances (Russell/Culpeper) to maximize our "By-Right" agricultural uses. Ensure our initial operations fall under "Agri-Tourism" definitions to allow immediate revenue generation while Special Use Permits (SUP) for the resort are processed.
5 Capital Phasing Strategy
Rewards vs. Equity Crowdfunding
Objective: Strategic Validation
We are executing a two-phase capital strategy to minimize dilution and prove market demand.
- Phase 1 (Rewards Crowdfunding): We will launch on platforms like Kickstarter/Indiegogo to sell "Vouchers for Future Stays." This generates non-dilutive revenue and proves the concept without triggering complex securities regulations.
- Phase 2 (Regulation CF / Reg D): Once demand is validated, we will open an equity round (Reg CF or Reg D) for accredited and non-accredited investors to buy into the OpCo.
Directive for Counsel:
Review all Phase 1 marketing copy. Ensure terms explicitly define contributions as "Pre-Orders for Consumption" (products/stays), not investments. We must maintain a clear distinction until the Reg CF filing is prepared.