The Grand Prize Drawing for the Palos Verdes Art Center (PVAC) 2012-2013 Win Your Dream House Raffle will be held on Friday, May 10, 2013, beginning at 5:00 p.m., at Palos Verdes Art Center, 5504 W. Crestridge Road, Rancho Palos Verdes, California 90275. Tickets will not be sold after 5:00 p.m., Monday, May 6, 2013.Tickets may sell out before that time. Harrington Group, an independent accounting firm, will supervise all drawings. All drawings for prizes are open to the public, but the winner need not be present to win (except for door prizes).
Following each drawing, the list of winners (names and cities of residence), will be published on the PVAC website and posted at the Art Center or may be obtained by sending a written request plus a stamped self-addressed envelope to: Palos Verdes Art Center, 550 Deep Valley Drive, Suite 261, Rolling Hills Estates, California 90274.
Only 26,000 tickets will be sold, but including the tickets to be issued as prizes, a maximum of 27,150 tickets will be eligible for the various drawings. If at least 22,000 raffle tickets are sold, the Grand Prize winner shall have the option until 3:00 p.m., Los Angeles time on May 24, 2013, to choose between (a) a $2,000,000 credit toward the purchase price and a 90 day exclusive right to acquire a Terranea “Seaside Vacation Home Villa” Plan 2 (the “Terranea Villa Package”), or (b) $1,000,000 in cash. Purchase of the Terranea Villa Package will be subject to the terms and conditions set forth in a reservation agreement, the form of which, together with copies of the Final Public Reports issued by the California Department of Real Estate appears at the end of these Rules. Although the villa will be a full ownership purchase, (i) it subject to limited usage by the owner of 90 days per year (60 days per year for casitas), and the payment of resort fees and expenses, (ii) the owner must agree that when not in residence, the villa must be made available for rental, and (iii) certain other terms and conditions set forth in the Final Public Reports.
The IRS has taken the position that amounts paid for chances in raffles, lotteries or similar drawings for valuable prizes are not gifts, and consequently do not qualify as deductible charitable contributions. Prize winners are responsible for the payment of all taxes resulting from the income attributable to the receipt of any prizes, and should consult their professional legal and accounting advisors regarding the tax effects of their respective choices.
Tickets are $150.00 each. You may buy as many available tickets as you wish. All sales transactions are final. No payments will be refunded.
To order tickets, call 310-541-2035 or 310-541-2479. Or download the order form from pvartcenter.org and fax it to 310-541-0248 or 310-541-4370 or mail it to Palos Verdes Art Center 2012-2013 Win Your Dream House Raffle, Palos Verdes Art Center, 550 Deep Valley Drive, Suite 261, Rolling Hills Estates, California 90274. Entries must include payment or credit card information (Visa, MasterCard, Discover or American Express) to be eligible. Email orders will not be accepted.
More than one name may be entered on the ticket to indicate that any prize won is to be shared. Only the names provided on the ticket will be eligible to receive prizes. Unless otherwise designated, winnings will be divided equally among all names on the winning ticket. On prize amounts of $500 or less, PVAC, at its option, may write only one check to the person named first on the ticket. That person will then be responsible for making all decisions regarding the winner’s options on behalf of, and dividing the prize among, the other persons listed. Multiple tickets must be purchased at the same time and be in the same name(s) to be eligible for the Multiple Ticket Drawings. There will be a special Multiple Ticket Drawing at each Early Bird Drawing and at the Grand Prize Drawing. Tickets won as prizes in the Early Bird Drawings are NOT eligible for the Multiple Ticket Drawing. Only purchased multiple tickets are eligible for those drawings.
By entering this raffle, each entrant:
accepts and agrees to be bound by all the rules, limitations and restrictions set forth on the PVAC website at http://pvartcenter.org/raffle/2013/rules.htm
- agrees that their names, resident city, and/or their likenesses may be disclosed to and used by the news media and may otherwise be used by PVAC for publicity purposes and in lists of prize winners (name and city) to be published on the PVAC website.
- releases PVAC, its trustees, officers, employees and agents from any and all liability for injuries, losses or damages of any kind or caused by or resulting from acceptance, possession and use or misuse of any prize. Each winner also agrees to indemnify and hold PVAC harmless from any and all losses, damages, rights, claims and actions of any kind rising in connection with or as a result of the winner’s choice of winner options and acceptance or use of any prize.
To qualify for any drawing, ticket orders must be received and/or purchased by the indicated deadline. Any orders received after the stated deadline will be held for the next applicable drawing. PVAC assumes no responsibility for lost, late, misdirected or non-delivered mail.
If less than 4,000 tickets are sold by January 25, 2013, 5:00 pm, the Palos Verdes Art Center, in its sole discretion, may end the raffle at the first Early Bird Drawing. Early Bird cash only prizes 1-4 (but not the Grand Prize) will be awarded for that drawing. The Grand Prize winner also will be drawn at that time and will receive a 50% share of the net raffle proceeds, less appropriate and required income taxes (federal and/or state). Net raffle proceeds are defined as the balance of funds left after paying all other prizes and all raffle expenses. No further raffle drawings may be held.
Other rules and regulations may apply. Please contact PVAC if you have questions. PVAC’s interpretation and application of the rules and regulations shall be final.
PVAC reserves the right to reject any entry form that is submitted with payment that does not constitute “good funds” or is defective or physically altered. Prior to the Grand Prize drawing, PVAC will make a reasonable effort to notify the individual and/or entity that submits such an entry form or one which has been rejected because the credit card or check did not clear that the entry has been rejected.
This Raffle is not an offer and is void in any jurisdiction where such raffles are prohibited or where applicable registration requirements have not been fully satisfied.
EARLY BIRD DRAWINGS
Each of the Early-Bird drawings will include a prize for a complimentary 2 night stay in a Seaside Villa or Casita. These prizes will include a ‘glimpse of life’ as an Owner with the Free Reign Privileges, as well as 2 spa treatments, a round of golf for 4 people, and a $500 credit for dining at Terranea Resort. The credit must be used during the prize stay and the stay must be completed within 90 days of the applicable drawing, subject to availability. Contact Terranea for more information on the Free Reign Privileges. Maximum occupancy for the Villa/Casita is eight people. The prize cannot be resold and is only transferable to family members.
Early ticket purchases will be included in multiple drawings all of which will be held at Terranea Resort. You may attend any or all of these drawings.
Tickets purchased by 5:00 p.m. Wednesday, February 20, 2013, will be eligible for the first Early Bird Drawing on Sunday, February 24, 2013, 1:00 p.m. Multiple tickets purchased by the stated deadlines will be eligible for both Early Bird Drawing and the Multiple Ticket Drawing on that day. The following format will be used:
- The Multiple Ticket Drawing will be held first. All tickets that qualify for the Multiple Ticket drawing will be placed in the drum, a winner will be drawn. The winning Multiple Ticket Drawing ticket, along with all other tickets will be placed in the drum for the rest of the drawings.
- The Free Ticket Drawings will be drawn next.
- All winning tickets will be copied and, will then be placed in the drum for the drawing of Prizes 5 through 2, in reverse order.
- These winning tickets are copied and then returned to the drum, with all the other tickets, for the Early Bird First Prize Drawing.
- Free ticket winners ticket packs are not eligible for the multiple ticket prizes in subsequent drawings.
The same format will be followed for the second Early Bird Drawing. All tickets purchased by 5:00 p.m. Wednesday, April 10, 2013 (including all tickets purchased before the February 24 drawing) will be included in the second Early Bird Drawing on Sunday, April 14, 2013, 1:00 p.m.
GRAND PRIZE DRAWING
A maximum of 26,000 tickets will be sold for the Grand Prize Drawing, but, including tickets issued as prizes, a maximum of 27,150 tickets will be eligible. The deadline for purchasing tickets for the Grand Prize Drawing is 5:00 p.m. Monday, May 6, 2013. All tickets purchased by that time will be entered in multiple drawing on May 10, 2013, which will be conducted as follows:
- The Multiple Ticket Drawing will be held first, approximately 1:00pm
- The winning ticket from the Multiple Ticket Drawing, plus all other eligible tickets, including winning and non-winning tickets from the February 24 and April 14 drawings will then be placed in the drum for the drawing of $300 Prizes will be in reverse order. The number of $300 prizes will be set at one $300 prize for every 100 tickets sold. This drawing will also be held at 1:00 pm and a list will be posted prior to the Grand Prize drawing.
- Tickets drawn for the $300 prizes will be put back into the drum for the drawing of prizes 15-2 in reverse order. Drawing will be held at 5:00 p.m.
- These winning tickets are then returned to the drum, with all the other tickets, for the Grand Prize Drawing.
Grand Prize Options
If at least 17,500 tickets are sold, a cash prize of $1,000,000 will be awarded. If fewer than 17,500 tickets are sold as of 5 p.m. Monday, May 6, 2013, the raffle will be held as scheduled, and all prizes other than the Grand Prize will be awarded as advertised; and the Grand Prize winner will receive a 50% share of the net raffle proceeds, not to exceed $1,000,000, of the net raffle proceeds (less withholding for federal and/or state income taxes). Net raffle proceeds are defined as the balance of funds left after paying all other prizes and all raffle expenses.
If at least 22,000 tickets are sold by the May 6, 2013 deadline, the Grand Prize winner will have the choice of (a) the Terranea Villa Package described in the third paragraph of this raffle description or (b) $1,000,000 as a cash prize. The Grand Prize winner must make an election in writing between the Terranea Villa Package or the cash prize no later than 3:00 p.m. Friday, May 24, 2013. Such choice is in the winner’s sole discretion. It should be noted, however, various federal and state revenue measures that are expected to take effect January 1, 2013. The Grand Prize winner is strongly urged to seek professional legal and accounting advice on the tax effects of election as to the respective choices.
If the Grand Prize winner elects to receive the cash prize, PVAC will forward to the winner the cash prize funds minus any required federal tax withholding.
If the Grand Prize winner elects to receive the Terranea Villa Package and meets the eligibility requirements of such option, PVAC will transfer into an escrow account designated by Terranea Real Estate the funds for the $2,000,000 credit upon receipt from the winner of the required federal tax withholding. All negotiations and option choices with respect to the Terranea Villa Package will take place between Terranea Real Estate and the Grand Prize winner. Terranea Real Estates does not provide purchase financing which, if required, will be the responsibility of the Grand Prize winner.
If the Grand Prize winner fails to make an election by the May 24, 2013 deadline, he or she will be conclusively deemed to have elected the cash prize option.
Limitation of PVAC Responsibilities
It is the responsibility of the Grand Prize winner to determine, to his or her satisfaction, the value of the respective Grand Prize options, and the tax effect to them, in light of their personal financial circumstances. PVAC provides no guarantee or warranty (a) as to the value of any property, including the Terranea Villa Package, (b) whether the Grand Prize winner will be able to successfully conclude a satisfactory agreement with Terranea Resorts for the purchase of the Terranea Villa Package, (c) that the Internal Revenue Service (IRS) or the California Franchise Tax Board will accept the PVAC stated value as the value of the prize for the purposes of determining any income tax payable, or (d) that the Terranea Villa Package can be subsequently sold for its appraised value.
All negotiations and option choices with respect to the Terranea Villa Package shall be between Terranea Real Estate and the Grand Prize winner. PVAC has no participation in or liability with respect to such negotiations. If (a) the Grand Prize winner and Terranea Real Estate fail to reach agreement within 90 days of the Grand Prize drawing, or (b) the Grand Prize winner fails to secure financing within 30 days after the date of the agreement with Terranea Real Estate, or (c) Grand Prize winner fails to satisfy any conditions of escrow within 60 days after the date of the agreement with Terranea Real Estate, then in any such case the Grand Prize winner will be deemed to have elected the cash option and the appropriate amount, giving effect to the amount of withholding already paid, will be delivered to the Grand Prize winner.
Payment of all appropriate and required federal and state taxes is the responsibility of the Grand Prize winner. If the cash prize is selected, such taxes will be withheld by PVAC in accordance with federal law. If the Terranea Villa Package is chosen, all federal income taxes based on the value of the funds transferred by PVAC to Terranea must be paid by the Grand Prize winner prior to the transfer of funds by PVAC. The taxes applicable to the Terranea Villa Package will differ from the taxes applicable to the acceptance of the $1,000,000 cash prize or the purchase of a stand-alone home and anticipated changes in federal and state revenue taxes are expected to take effect January 1, 2013, so entrants are strongly urged to consult with their professional accounting and legal advisers before making a decision.
Anyone 18 years of age or older may enter. Employees and members of the Board of Trustees of PVAC and Harrington Group, their spouses and children are excluded from participating. An affidavit of eligibility may be required from prize winners. Any offer to participate is void where prohibited by law.
Winners will need to show proof of a Social Security or Taxpayer ID consistent with the name(s) on the ticket(s). Out of country residents need to show proof of an equivalent Taxpayer ID from their resident country. Either form or ID must be presented to PVAC within 120 days of the drawing or the winner’s prize will be considered a donation to the Art Center.
Any dispute arising with respect to this Raffle shall be resolved by binding arbitration conducted in Los Angeles County, California in accordance with the Rules of the American Arbitration Association. The decision of such arbitration shall be final and no appeal may be taken therefrom.
REGISTRATION WITH THE STATE OF CALIFORNIA
By letter from the Attorney General’s office, the Palos Verdes Art Center has re-registered with the Department of Justice under Raffle Registration Number R-1201 and is authorized to conduct raffles in California pursuant to the provisions of Penal Code section 320.5, for the raffle period which begins September 1, 2012 and ends August 31, 2013.
Since 1931, the Palos Verdes Art Center, a non-proﬁt 501 (c) 3 community visual arts organization, has inspired individuals “to celebrate, appreciate and create art.” Palos Verdes Art Center 2012-2013 Win Your Dream House Raffle proceeds help fund exhibition, education and outreach programs making visual arts available, accessible and affordable.
Final Public Reports issued by the California Department of Real Estate and the Form of Purchase Agreement.