A local physician and well-known charity are both claiming to be victims of a lease agreement gone awry.
The only difference is the doctor says it’s the group’s fault whereas the charity’s assigning blame to a board member who allegedly acted without its knowledge.
Dr. Kevin Robertson, of Oxford, claims Love In the Name of Christ (Love INC) of Northern Oakland County took advantage of his willingness to help others, reneged on a lease agreement that cost him a substantial amount of money and ultimately left him holding the bag.
‘I have been victimized,? he said. ‘The public has a right to know about this group. They need to be aware of what’s truly happening here. It’s just not right. You can’t operate like this.?
Robertson is the unhappy owner of a now-vacant 13,700 building in Orion Township that since July 31 served as the storage and staging area for Love INC to collect and distribute household goods to people in need.
Consisting of 19 churches from Oxford, Orion and surrounding areas, Love INC and its almost 100 community volunteers provide vital social services to the people of northern Oakland County. The local affiliate of this national organization was established in 2006.
Love INC claims it too was victimized by a former board member, John Spilko, of Orion, who signed a lease for Robertson’s building on the group’s behalf without any authorization from its board of directors.
‘At no time was the full board of Love INC aware that a lease had been drafted and signed by this board member,? according to an official statement released by Love INC on Sept. 14. ‘This board member was never authorized by Love INC to enter into such an agreement and, because of the charity’s financial position, the terms of such a lease would not have been, nor reasonably could have been, approved by Love INC.?
‘We had no clue,? added Tricia Chapman, chairperson of Love INC. ‘I’ve had a few conversations with Kevin (Robertson) and he’s upset as anyone would be in his situation. We’re upset too, and hurt.?
Spilko did not return phone calls seeking comment. He resigned from the charity’s board Aug. 25, ‘the day that this was uncovered,? according to Chapman.
Love INC vacated the building Sept. 14 and Robertson claims he has yet to see the approximately $12,500 in rent he’s owed for two-and-a-half months. And that doesn’t include the 5 percent late fees for July and August, which Robertson said he wasn’t pursuing.
‘They never paid me any rent,? he said.
However, Chapman said the group ‘compensated? Robertson on Sept. 2 for it’s short use of his property.
‘We gave him a check for $3,000 and we took care of the utilities,? she said. ‘He was paid what we could afford.?
Robertson acknowledged Love INC gave him a $3,000 check, but he claims he’s going to have to use this money for cleanup and repairs in light of all the remodeling and structural changes the group did to the building’s interior without his permission.
‘They’ve knocked holes in walls. They’ve built other structures in the space. They’ve damaged the shelving,? he said.
A deal’s struck
Documents show Spilko, who was Love INC’s vice chair at the time, signed a five-year lease agreement with Robertson on May 4 for approximately 9,800 square feet of space at a monthly rental cost of $5,000 (not including utilities), which would increase by 2.5 percent annually.
Robertson closed on his purchase of the building, located at 4800 Joslyn Road, on June 17.
Requiring no security deposit or ‘up-front rent? from Love INC, Robertson gave the group what he described as a ‘sweetheart deal.?
‘It was way below market value for this kind of finished space,? he explained. ‘They were basically getting it for warehouse pricing in terms of commercial real estate.?
According to Love INC’s statement, ‘The board believed that the property at issue was being donated in whole or in part by Dr. Robertson as part of his charitable giving for use by Love INC. The board understood that, in exchange, Dr. Robertson wanted Love INC to pay all or a portion of the annual property taxes for the building.?
Chapman said the board’s understanding was based on what Spilko told it.
‘We, the board, don’t know what’s true and what’s not. That’s the biggest problem,? she said. ‘We were told the property taxes were $36,000 (per year) and that (our) lease would be $3,000 (per month) and (Robertson) would take care of the rest. That’s what my understanding was.?
‘I’m the newbie. I’m catching a lot of this from a historical standpoint. I wasn’t directly involved,? noted Chapman, who’s served on the board for about a year, but has only been chairperson since the end of June.
The Orion Township Treasurer’s Department indicated the total 2009 property tax bill for Robertson’s building is $7,434, not including delinquent charges for things like unpaid water bills and weed assessments.
That’s a far cry from the $60,000 per year lease.
‘Love INC’s board anticipated receiving such an agreement from Dr. Robertson when it learned that, without its authorization, this board member (Spilko) signed a lease for the rental of the property that provides for annual costs well in excess of the annual taxes,? according to Love INC’s public statement.
E-mails between Spilko and Robertson indicate Love INC was going to be the master lease holder and sublease part of their space to two subtenants for somewhere between $2,000 and $2,700 per month.
The idea was to make Love INC’s actual portion of the rent $3,000 per month.
‘This would allow Love INC to make some profit on their space and offset some of their rent payment,? Robertson wrote in a March 8 e-mail.
Chapman recalled something was brought up about subleasing space, but nothing specific was ever mentioned or agreed upon.
‘There was some brief discussion (about) potentially looking at having the opportunity to sublease. Nothing more than that was discussed,? she said.
Robertson said he doesn’t know what happened with those potential subleases.
‘I had provided John Spilko with formats (of) sublease contracts for him to take and present to these people,? he said.
Rent troubles
According to Robertson, it was agreed rental charges would commence as of July 1.
However, Chapman indicated Love INC didn’t even occupy the building until the end of July because work was being done on it.
‘We didn’t move into that building until July 31,? Chapman noted. ?(Robertson) gave the keys to Spilko after he closed on it. But then there was a roof issue . . . That’s what we were told.?
When the rent was due, Robertson claims all Love INC could produce were words, no dollars. ‘There was a myriad of excuses that would fall under the heading of ‘the dog ate my homework,?? he said.
But because of all the good work the group does, Robertson didn’t press the rent issue too hard.
‘I was very liberal about it because I’m of a like-minded, charitable nature in terms of giving back to the community,? he said.
Finally, Robertson said Love INC told him it couldn’t pay that much in rent and asked him to lower the monthly fee to $3,000.
‘I agreed to meet their numbers,? he said, noting he had a new lease drawn up and was willing to completely forgive the back rent he was owed under the existing lease.
But apparently $3,000 was still too much for the charity, Robertson noted.
‘They call me back four days later and say we can’t do those numbers,? he said. ‘They can’t even meet their own numbers at that point.?
‘We were under the understanding from the beginning that $3,000 would include ? again, we hadn’t seen any lease ? the utilities and so on,? Chapman said.
But the $3,000 price didn’t include utilities. ‘Looking at the average utilities of that building that increased our cost. We couldn’t afford it,? Chapman explained.
The aftermath
So now, Robertson’s been left with a vacant 13,700-square-foot building in which he’s invested ‘a very large amount of money? in terms of purchase price and renovations that included a new roof, fresh paint and electrical work.
‘I’m left holding a very large investment in an economy in which its very hard to rent space and get a tenant,? he said. ‘And I’m out the money.?
While Robertson is out some cash, Love INC is out a home. Right now, the charity has no permanent place to store its household goods for the needy.
‘The biggest victim is the community and the people in need,? Chapman said. ‘There a lot of people in need.?
Love INC is ‘attempting to acquire other facilities.? A couple of churches have stepped up to provide temporary facilities for Love INC, according to Chapman.
‘We’ll see what happens,? she said.
Where’s the love?
Robertson said he can’t believe Love INC would leave him in the lurch, especially considering they asked him for help in the first place.
Over a year ago, he said the group approached him and asked him to help them find a new home because the Ehman Center on Elizabeth Street in Lake Orion, where they had been housed, was inadequate for their needs. Robertson agreed to lend a hand.
‘I spent a hard seven or eight months walking land, talking to land owners, looking at zoning ordinances, talking to Realtors. I put in a lot of leg work and personal effort,? he explained. ‘Then it dawned on me that I could actually probably buy a building cheaper than I could build one given the economy.?
So, once he had a signed lease from Love INC, he purchased the building. He now feels he was ‘fraudulently induced? to the buy the property.
Robertson said he acted in good faith and in return, Love INC mistreated him and acted in an un-Christian manner. ‘It’s not right and it’s certainly not professional or businesslike,? he said. ‘They’ve turned their back on me in a very scandalous way.?
Love INC, again, places the blame squarely on Spilko’s shoulders.
In its official statement, the group said, ‘While in the process of searching for a facility, a Love INC volunteer board member (Spilko) met with Dr. Kevin Robertson and reported to the board that Dr. Robertson would be willing to purchase suitable property for use by Love INC.?
Truth or spin?
Robertson’s particularly upset with the ‘spin,? to use his term, Love INC has put on this whole incident.
A Sept. 9 e-mail sent out by Love INC Executive Director Sandy Weaver stated the group ‘regrets that we were not able to resolve some issues in regards to the lease at 4800 Joslyn Rd. We therefore find it necessary to vacate the premises by next Monday, September 14th.?
‘We have never signed a lease there,? Weaver told this reporter.
Robertson said that’s part of the ‘spin.?
‘They claimed to be unaware of this lease,? he explained. ‘That John Spilko, the vice chair, was acting as a rogue agent.?
Robertson noted that Spilko was given the lease for review two weeks prior to its signing and was ‘at all times in communication with the board as the board was with me.?
But Chapman said Spilko never produced a copy of the lease for the board.
‘We had asked (Spilko) where is the draft of the lease, we need to start reviewing this and get going on this, and he always came up with a good excuse,? she said. ‘Should we have been more diligent? Probably.?
Robertson doesn’t buy that story.
‘It just flies in the face of common sense that they were unaware of this lease especially when other board members were told in late July that the rent was due,? he added. ‘The board members had toured the building. They had talked to me periodically.?
In Robertson’s opinion, Love INC is trying to ‘throw this one guy (Spilko) under the bus.?
‘Organizations do this all the time when they get caught ? claim the CFO was acting on his own,? he said.
A warning to others
Robertson and his attorney are looking into taking legal action against Love INC, but ultimately, he came to the Leader because he wanted people to know the truth and to beware of their dealings with the charity.
‘I think other business people have a right to know,? he said. ‘What about the next person they solicit help from (and) they don’t come through on the deal??
‘This could happen to anybody. With the economy being what it is, I think people are being a lot more selective about who they donate their hard-earned money or services to. I think they need to be aware of the back story to this organization.?
Robertson wished to make it clear he’s deriving no benefit or pleasure from making this situation public.
‘There is no victory here for me ? my taking this to the media,? he said. ‘What do I get out of this? Nothing. I’m still left hanging.
Turning the other cheek
Love INC is not preparing to take any legal action against Spilko despite his alleged improper actions, according to Chapman.
‘We’re a Christian organization,? she said. ‘There are no plans to do that.?