Letter Raises Questions Over Koshare Museum’s Boys Ranch Acquisition and Art Sales

Description: A letter regarding the Koshare Indian Museum’s acquisition of the former Colorado Boys Ranch raises questions about board authority, artwork sales, bylaws and fiduciary duties... (The opinions expressed in Letters to the Editor are not those of SECO News, Consulting With A Hart LLC, or our Marketing Partners) Read the Full Letter to the Editor by David James Baker...

Watch the Video Here:

I reviewed this video of a "press conference" regarding the recent acquisition of the former Colorado Boys Ranch by the Koshare Indian Museum. Who exactly authorized the actions that led to the Koshare Museum acquiring and owning the former Colorado Boys Ranch property? The individuals appearing on camera, although known, fail to identify themselves or state the legal authority under which they have acted or what organization they truly represent. The explanations given are vague. According to the press conference video, the arrangement that led to this real estate transaction was complex. It therefore needed to be done in secret?

Under what authority did these individuals operate as historic, highly valuable, and irreplaceable Koshare Museum artworks were liquidated and acquired by a Denver businessman with ties to water, real estate, and venture capital? The assets sold had enormous value to the community and state before they were converted to cash, and that cash was used to acquire a dormant commercial real estate asset.

According to the video, the former Colorado Boys Ranch property is part of a separate, although not fully created entity, that will be known as the Western Heritage Education Campus. It is my understanding that under nonprofit corporate law (such as the Colorado Revised Nonprofit Corporation Act), Koshare Museum board members owe fiduciary duties of loyalty and care to the Koshare organization. With those legal duties in mind, serious questions must be asked:

Which board members of the Koshare organization voted in favor of liquidating assets that were held in trust to purchase a dormant piece of commercial real estate to fund what the video describes as a completely new and separate entity and venture?

Where are the minutes of any such meeting?

Which board members voted for or against this?

Which board members resigned, and why? Who replaced them?

How many board members approved these actions, and on what legal basis?

Was a proper quorum present to vote on selling historic artworks that were held by the Koshares in trust?

Were the organization's own bylaws followed?

If these actions are legitimate, where are the bylaws, and where are the official meeting minutes that substantiate them?

I understand the enthusiasm to turn a long-distressed piece of real estate into a community showpiece is great. That is a wonderful idea. I understand and appreciate that the noble intentions of otherwise good people aiming to leave a legacy of their own through this real estate development come with good intent. Unfortunately, good intent alone does not authorize a subset of individuals, potentially acting unilaterally even if they are Koshare board members, to liquidate the Koshare organization's property and or assets to fund their passion project.

Enormous work, time, and effort have been given to create a Koshare Foundation that has sought to protect these irreplaceable Koshare assets for the community and state for generations to come. That Koshare Foundation has raised hard-earned money to protect the very assets that appear to have been sold out underneath them. 

Was there consultation with those who gave their time and money to protect these assets? Where do these assets sit now?

How is it possible that a small subset of individuals could disregard their fiduciary duties to the organization they serve and take it upon themselves to sell its assets and create a wholly separate entity?

While I can admire the enthusiasm, there is an enormous omission here: taking someone else's assets, converting them to cash, and using that cash to fund your own project is wrong. I am concerned it may also be illegal.

- David James Baker

David James Baker, M.A., M.F.A.
Real Estate Advisor & Executive Producer

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