We are pleased to share an update from the group representing the nine shareholder/participating associations from REcolorado and IRES, as well as the chair of the Pikes Peak Association of REALTORS, who are leading the efforts to form One MLS for the Front Range.
MLS UPDATE DATED 6/13/2017
The move towards a possible MLS merger and ONE MLS for Front Range made significant progress during June — and the month is only half over!
Just a couple weeks ago, IRES, REcolorado and the nine presidents/chairs of shareholder and participating associations, along with the chair of Pikes Peak Association of REALTORS® (PPAR), met to review and discuss the Letter of Intent (LOI) that was signed by IRES and REcolorado. This LOI contains important deadlines, proposed meetings and a number of landmark dates. The first six of 15 points in the LOI were allocated to specific groups and each was assigned a deadline.
The points include:
1. Develop and define a common vision, core values and guiding principles that align with the needs and expectations of the respective shareholders and brokers.
2. Create an ownership model, based on a congressional model, with fair representation for membership which both includes the current REALTOR@ associations and makes room for possible expansion to other REALTOR associations in the future.
3. The two MLS organizations (and RSC/PPAR should that organization choose to be included) and/or their current shareholders will fund capital requirements as projected by the parties and facilitator to complete the merger and to start-up operations of the merged company.
4. The financial structure, plan and proformas for years 1-3 will be developed as part of the merger process at an agreed-upon stage. Financial policies, including dividend policies, will be included in a written proposal.
5. Existing contracts and financials will be reviewed by qualified and mutually agreed-upon professionals.
6. A board governance model will be developed that clearly defines key governance terms to be included in the merger documents.
As of June 13, both MLS companies have shared their financials and business models. A facilitator was recommended by the association presidents/chairs and the two companies have agreed to enter into contract with him. Many of these items have begun and some are completed.
We are working through this process in order to continue toward the goal of being one MLS by Nov. 1.