Sunday letters: Gifting to foundation; convention center bonuses; ill-suited housing rules
Applicable law on gifting home to foundation
Your recent article ("Conley gifted home to nonprofit," Political Scene, Jan. 8) describing historian laureate Patrick Conley’s deed of his home to the Heritage Harbor Foundation (which deed was subject to two mortgages, one of which the Foundation agreed to pay) and the subsequent deed of such property back to Mr. Conley prompted me to review the legal requirements applicable to similar transfers.
The applicability of any legal requirement to any situation depends on a detailed analysis of the facts of the situation. I have not done so and do not assert that the following is applicable to Mr. Conley’s property transfers. The purpose of this letter is to describe some legal requirements that may be applicable to similar transfers.
Section 7-6-8 of the Rhode Island Nonprofit Corporation Act provides that no corporation that is a private foundation as defined in Section 509(a) of the Internal Revenue Code shall, among other things, engage in any act of “self-dealing” as defined in Section 4941(d) of the Code which would give rise to liability for the tax imposed by Section 4941(a) of the Code. Section 4941(a) provides for the levy of certain penalties against a private foundation which has engaged in “self-dealing” and in some cases against the individual participant.
The Internal Revenue Code defines “self-dealing,” among other things, as the transfer to a “disqualified person” of the assets of a private foundation. A “disqualified person” is a person who is in a position to exercise substantial influence over the affairs of the foundation during the five-year period ending on the date of the transaction.
In some cases, the transfer of property by a “disqualified person” to a foundation, if such property is subject to a mortgage, also constitutes “self-dealing.”
I want to reiterate that this letter is intended only to inform your readers that there is applicable law relating to transactions of the type engaged in by Mr. Conley. I do not suggest that his transactions are subject to any of the above described or other legal requirements.
James W. Hackett, Providence
Convention Center bonuses make no sense
Am I reading Katherine Gregg's article ("Convention Center awards bonuses," News, Jan. 2) correctly that the Convention Center actually "does not" pay for itself, make a profit, etc., and is really only able to exist because of subsidies, etc.?
If that is the case, and it appears to be so, how can any kind of "bonuses" be justified to people that are already overpaid?
Tom Letourneau, Charleston, S.C.
Bonuses go to those who meet goals
The implied criticism of the bonuses paid out to the R.I. Convention Center management is patently unfair. In today's world, most senior level salaries are paid with bonus provisions available, based on a predetermined set of goals.
I can only assume that these individuals did meet these goals and expected bonuses based on results. Therein lies the story, if any exists. The ability to attract talent − in both profit and not-for-profit organizations − requires a level playing field. Put another way, you get what you pay for.
Gary Smith, Wakefield
Appropriate decision by the RI Hall of Fame
The Board of the R.I. Heritage Hall of Fame acted appropriately to “defer” the induction invitation that had been extended to Lt. Gen. Michael Flynn, as announced in the commentary “Board will defer Flynn’s Hall of Fame induction” (Dec. 30) by Patrick T. Conley.
Both Mr. Conley and The Journal’s Mark Patinkin seem to agree that the Hall of Fame exhibited “poor timing” in its decision to honor General Flynn. However, it might be more forthcoming for the Board to admit that the decision showed “poor judgement” and was not just a result of “poor timing.”
It is never a good time to make a lousy decision.
John F. Hagan, West Warwick
A betrayal of the Oath of Office
In Patrick Conley's article regarding the deferring of Michael Flynn's induction into the R.I. Heritage Hall of Fame to a quieter time (Commentary, Dec. 30), he makes it clear that it will happen. He further opines that Mr. Flynn’s betrayal of his oath to the U.S. Constitution is a matter of opinion.
As a veteran and former elected public servant, I fully understand the Oath of Office. That Mr. Flynn betrayed it in favor of loyalty to a president is a fact, not an opinion. Perhaps the best thing that Mr. Conley should do is be quiet lest he further sully his own reputation.
Allan Klepper, Barrington
Repurpose the truck tolls
I offer a suggestion that has probably occurred to my fellow I-95 commuters. This idea was stimulated by the recent proliferation of highway signs that remind drivers that trucks are not allowed in the two left lanes.
RIDOT should restore the cameras that formerly detected trucks for tolls. Now have the cameras issue tickets when heavy trucks are traveling in those two left lanes. The many compliant trucks have nothing to fear. Non-compliant trucks have no grounds to object to the penalty since the rules are well posted.
To be fair, use the electronic signs to warn drivers that there will be tickets issued after a certain start date. This will reduce the presence of trucks in those travel lanes where they often create clogs for those of us in our smaller vehicles. Sweetest of all we can apply the revenue to the attorney general’s legal fees defending the former truck tolls, taking that expense off the backs of the taxpayers. Win win?
Peter Elleman, North Kingstown
Housing restrictions ill-suited for communities
Mr. Harold Schofield suggests in his recent guest column ("Narragansett is right to protect its neighborhoods," Commentary, Dec. 30) that housing reforms are ill-suited for a community like Narragansett, which is "built out" (a term oft-cited, but rarely defined).
On the contrary, Narragansett is only built out to the extent that it requires a half-acre to build a single duplex, even in neighborhoods served by public water and sewer, and bans much-needed accessory dwelling units townwide. Meanwhile, the median price of a single-family home has increased 51% over the past five years.
These artificial restrictions on housing in Narragansett − and other towns like it − are what are at odds with market forces. Not, as Mr. Schofield suggests, the state's recent efforts to build more homes.
Claudia Wack, Providence
Administration hurting the middle class
Thank you for publishing the photo on the Jan. 6, 2021 protest (Letters, Dec. 31). Looking at it I honestly I can't tell which side is which. How do we identify the undercover FBI agents? Which are the Antifa people? Who are the Homeland Security people? I don't see any MAGA hats so how do you tell a Democratic infiltrator from a Republican protester?
As for the letter writers, nice try but gas is up 50% under this administration. Three-year inflation is up 17.2% and homelessness is at record levels. There are currently two wars in the world and pirates are no longer considered terrorists. Migrant influx now equals the populousness of our 11th largest state. Seniors just got a small Social Security COLA, and a 6% Medicare increase, which by law may not exceed the Social Security increase. However, many states allowed Social Security supplements to increase 10% to 15%, thus exceeding the COLA.
I suggest this administration has pushed the bottom third of the middle class down to poverty, including millions of senior citizens.
Don Hausman, Warwick
Dated arguments against wind turbines
In response to the column “A hurricane will in time leave a wasteland of wind farms off RI” (Commentary, Dec. 24) by Ara Sadaniantz.
After a careful read of the article I noted that Mr. Sadaniantz referred to reports written over 20 years ago on damage to wind turbines caused by typhoons. As a cardiologist I doubt he would be basing a critique of today's stent technology on problems with stents developed 20 years ago. Just as medical technology advances, so does the technology used to design and manufacture wind turbines.
Mr. Sadaniantz also quotes GCube, noting that some types of turbines had component failures, a rather vague issue. Is the component the blade or a light bulb in the store room? It matters. Statements like this are not particularly meaningful.
Anyone can be a critic, but actual progress requires realistic alternate solutions. He proposes nothing. The last time global temperatures were at current levels, the oceans were 20 to 30 feet higher. Having R.I. coastal cities under water will be a bigger problem than possible power outages due to hurricanes.
Mr. Sadaniantz finishes with a message of hopelessness claiming that those who installed the wind turbines will evade accountability, the government will do nothing and the customers will be left destitute. Not a rallying call for effective ways to address the potential existential catastrophe of climate change.
Doug Shepard, South Kingstown
This article originally appeared on The Providence Journal: Sunday letters: Gifting to foundation; convention center bonuses; ill-suited housing rules
