Wow, I've only just now caught up on this thread. I've been mostly unavailable since before this thread started due to some recent personal issues that has only allowed me to focus mostly on work and family (and I'm not fully back yet).
I'm a member of the Seattle Go Center, as is Redbeard and oren, and the initiator of this thread. Was glad to visit with Shapenaji when he was up for the pro prelim recently, and briefly met Magicwand yesterday as he had a long layover for his flight to Korea (Magicwand's visit had nothing to do with this thread that I know of, just wanted to mention that I met him). There are a few other SGC members who read this forum and sometimes post, but I'm sure they'll make themselves known when they're ready.
Redbeard is very close to one of the board members. And the OP is very close to our legal council (who is also a SGC member).
I play Go every week with Mr Fukuda, and he always chides me for trying to save all my stones or trying to kill everything. Frank was, until we received the letter of intent to sell, the Nihon Kiin's representative to the SGC, apparently replacing Mr Takao Yoshida a few years ago. Frank occasionally shares some info with me, but usually tells me not share it publicly, yet. I don't recall ever meeting Mr Yoshida (who's name is on the title), but apparently he is a long time Seattle area resident. (Unless there's another by the same name)
The SGC board members also instructed those of us present at the recent membership meeting not to share some information publicly, and they themselves have been rather tight-lipped about many details even with us. I think one of the primary reasons given was to try not to harm the now fragile relationship we have with the Nihon Kiin. They wanted to give the Nihon Kiin a chance to change their minds (or something like that) while trying to negotiate with them. And they have been trying to negotiate for several months upon first learning the news.
This action to file suit has not been taken lightly, nor was it what anyone here really wanted.
Its my understanding (only 2nd hand knowledge at best, and maybe I'm not suppose to share), that many pros and Kiin members are in disagreement with their leadership's actions in this matter, and that there will be a "changing of the guard" very soon, if not already in motion (but I'd like to see independent confirmation of that as well).
Aware of the closing of the NYGC nearly two years ago now, I wondered to myself if Ms Kobayashi was bringing the same type of bad news to Seattle during her visit this past January. I did not go up to the Center when she was here, but its my understanding that she attended a SGC board meeting while she was here during which she first announced the Kiin's intent to sell.
This information was not disseminated to the members at large while the board continued to try and negotiate with the Kiin to get them to change their minds. Not until the official letter was received in March did many of us know. In fact, still not knowing, I was rather encouraged by Ms Kobayashi's blog posts about the SGC after her return to Japan, that we might be spared the same fate of NY.
Later, when the Yomiuri post came out, and it mentioned their intent to sell to the local members… one of the board members responded to my questioning of that statement on our local members mailing list:
"Taking my board hat off so as to not expose anything I shouldn't at this time, I can say two things. There was never a plan to sell beyond the ideas of some people; that is, there was no agreement of any kind, just someone's desires. Second, those people would have been happy to sell to anyone who would buy, so the members of the go center are a subset of anyone who might buy it

. We have discussed independently as one backup plan, could we muster the funds to buy it. That sentence you quote is specious in my opinion."
Ultimately, I suppose it sounds like its just time for Seattle to leave its mother's nest and learn to stand on our own. Maybe this was just sooner than we expected, and not in the manner we might have expected.
I tend to lean on the side of those who think we're making a mistake by pursuing this lawsuit, but at the same time, I must trust our elected board members who still have more information than I'm entitled, that they are doing the best they can under the circumstances.
That's all the news I know so far. To the best of my knowledge its true, but this post should only be considered my personal opinion.