New Paradigm College shutters its doors amid COVID and depleted funds
Former provost says college vision remains unchanged, but Romero Institute pulled out
(Courtesy photo) Community members learn about using the principles of permaculture during a lecture at the now defunct New Paradigm in Lucerne in Spring 2019.
By Ariel Carmona
originally published: Lake County Record-Bee
LAKE COUNTY— New Paradigm College in Lucerne is no more.
While most accredited institutions of higher learning in the region have been offering some type of instruction or online curriculum since the onset of the pandemic nearly two years ago, the fledgling institution which had been offering in person lectures, workshops, specialized courses and certificate programs in permaculture and ecology from the property previously known as the Castle in Lucerne, closed its doors to educational opportunities in Summer 2020 amidst COVID and depleted operational funds, despite reporting $111,874 from 228 donors in 2019, their only full year of operation.
Moreover, the property’s landlord, Andrew Beath of the Malibu based Earthways Foundation, is currently embroiled in a property tax dispute with the County of Lake over taxes owed on the parcel and 75,000-square-foot building.
The college has effectively ceased operations, partly as a result of the Romero Institute no longer being associated with the institution, according to former provost William Stranger. The Santa Cruz based organization, described as an interfaith, law and public policy center, pulled out from the nonprofit they formed in 2019, taking with them the brand name and a number of board members previously involved in the founding and operation of the college, including its President, Vice President and Treasurer.
Stranger said trying to get the college off the ground during the pandemic was like a plane taking off the runway and having its wheels shut down upon take off. “We never really got underway before COVID,” he said, adding that the college had not established their full curriculum prior to the onset of the pandemic, even though they had been in discussion to partner with University of San Francisco, a private Jesuit University whose main campus is located on a 55-acre hilltop nestled between the Golden Gate Bridge and Golden Gate Park.
Seth Wachtel, a member of the NPC board and Chairman of USF’s Department of Architecture and Art, was working to develop a relationship with the university’s administration and was said to be gathering the interest of their faculty, according to the proposal which was drafted and pitched to the county by the Romero Institute in April 2018, but Stranger said USF is also currently undergoing changes in leadership. Wachtel failed to return calls inquiring about his work with the now defunct college in Lucerne or if he plans to play any future role, should it be resurrected.
Stranger added that the college will look to arrange new financing under a new name after filing for non-profit status, although he estimated it would need to raise about $15 million dollars to do so. Daniel Sheehan, who served as president of NPC since 2018, also failed to return calls regarding the transitional changes in operations and other matters involving the college.
Community donations ranged from $50 to $5000
Former Supervisor and NPC co-founder Denise Rushing, who hasn’t been associated with the college since 2020 told the Record-Bee then that she was focusing on other projects. Rushing confirmed that in addition to about $40,000 in community based donations, Earthways also made donations which allowed the college to operate for most of 2019. Up until the shutdown, the college had been renting itself out to host business conferences and myriad of other events, including meetings of the Lucerne Area Town Hall. According to information which was previously posted on the college’s website, donations ranged from $50 to $5,000 from a plethora of community members.
The College also benefitted from a series of grants for activities such as Neighbor Fest, described as a “gratitude party” which was held at the lobby of the property in January of 2020, which turned out to be one of the last big events held there. According to Rushing, construction funds to get the college up to ADA code also came from Earthways.
After Rushing left, Shanna Faye Jamieson took over as acting director which Rushing said required her to look at the books, donation software and to also handle all of the institution’s tax documents. Jamieson was listed on the NPC board of directors in an executive summary released in 2019 which stated the college sought $500,000 from investors to turn the Castle property into a “functioning residential college and conference center.” Stranger said Jamieson, like many of its former directors, is no longer associated with the college.
Tax dispute over Lucerne Castle property
Former 3rd District Supervisor Jim Steele, who was on the Board of Supervisors when the county approved the sale of the Castle property located at 3700 Country Club Drive for $2.5 million, said he was approached by Beath for advice on the evaluation of the property by the County Assessor’s office. Earthways is seeking tax exemptions under section 501(c) 3 of the state tax code usually granted to nonprofits.
Steele said Earthways received a tax bill from the county after the property was assessed at over $8 million but that figure was later reduced to $6 million because of the age of the building and other factors. Documents obtained by the Record-Bee from the County Tax Collector’s Office show that Earthways was originally assessed for $8.7 million for all lands and the building in September of 2020.
Lake County Assessor Recorder Richard Ford said he could not go into too many specifics regarding a hearing pending on the matter because it would not be fair to Earthways, but he added that his office always advises people to pay outstanding taxes and fees prior to obtaining any resolution on a dispute.
Steele said a hearing for deciding the issue has not been scheduled, but he did receive a response to a query he made to the assessor’s office about their property evaluation which in part reads: “Only the State of California may relieve a non-profit from property tax. A County Government does not have the authority to change the State Constitution which states that all property is taxable. If there is a contract that states otherwise, it is between the signers of the contract but does not affect the valuation of the property as performed by the Assessor.”
According to Steele, one issue of contention appears to be that the Assessor’s Office has stated Earthways does not fit the criteria for exemption because they don’t qualify as “a public benefit nonprofit” thus, not making them eligible to receive tax-deductible donations.
Beath did not return messages seeking comment on the dispute, but Steele said he told him he was not happy and that Earthways feels they should not be taxed. Stranger said Earthways feels they are getting a raw deal from the county. “When we made the presentation to the county, they assured us that as a nonprofit, we would not be taxed.” Stranger added that he found it vexing and disappointing that a person who bought the property to serve the interests of Lake County is now faced with the assessor not honoring the agreement.
The agreement entered by Earthways and the county on Dec. 12, 2018, states in part that the property “is not subject to property taxes if owned by a not-for-profit organization.”
Although financial records for a nonprofit are not subject to public disclosure, New Paradigm College reported $405,996 in gross receipts to the state in 2019, and $185,518 in assets. According to state records, this figure is deduced from the IRS business master file. The figure does not deduct rental expenses, costs, sales expenses or costs of goods sold.
These real estate assets in Lake County that have been so mismanaged is discouraging to residents who might have benefited and contributed. Konocti Resort is another example of a huge asset waste in LC.