YMCA and Mount Pleasant Close to Financing Agreement
The Finance Committee will recommend to the village board that Mount Pleasant serve as the single tax exempt conduit for the new YMCA.
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The Mount Pleasant Finance/Legal/License Committee on June 15 voted to recommend to the full Village Board that the village serve as the single tax exempt conduit to help the Racine Family YMCA raise $7 million for its proposed new building in Mount Pleasant.
Essentially, the village would issue bonds and sell them to the YMCA's lender, Associated Bank. The bank would lend the proceeds from the bonds to the YMCA. A tax exempt status is only possible if a municipality issues the bonds.
Mount Pleasant would not feel any financial impact and would not be held liable for the loan from the bank to the YMCA.
Previously, the board rejected a proposal from the YMCA that the village serve as a double-exempt conduit for the new building because one of the conditions would have labeled the land as "blighted" around the new Village Hall campus.
Earlier on June 14, CNH announced, in a joint press release with the Y, that they will donate $1 million toward the new building, payable in four annual installments of $250,000. Diversey, Inc. in 2010 pledged $6 million toward the $12 million total price tag.
"The gift from Case helps us, of course," said Mark Janiuk, Village Administrator in Sturtevant and a YMCA board member. "But we would be grateful if Mount Pleasant would agree to serve as the conduit for this borrowing proposal."
Brennan Kane, deputy development director for Mount Pleasant, said that the village attorney and Ehler's & Associates, the village's financial advisor, would get copies of the borrowing proposal on Thurs., June 16 and send recommendations back to the village in time for the June 27 board meeting.
Jesse Richards
9:09 am on Thursday, June 16, 2011
Why are they borrowing so much? Where did the money go from the sale of the camp? http://www.journaltimes.com/news/local/article_e24f132b-38df-5e8d-9af8-489c9174f1d1.html
Heather Asiyanbi
7:15 pm on Thursday, June 16, 2011
It's a good question, but since it's been five years since the sale of the camp and because the Racine Family YMCA operates on its own (unlike the Milwaukee YMCAs, which feed into one central association office and share some funding sources), I'm guessing a good portion of that $5.5 million went to day-to-day operating costs and perhaps even paying off some old debt.
I'll ask, though, and let you know!
Dustin Block
3:26 pm on Thursday, June 16, 2011
That's an interesting question, Jesse!
Heather Asiyanbi
11:34 am on Friday, June 17, 2011
Hi Jesse,
I contacted Jeff Cullen, CEO of the YMCA, and he said the money received from the sale of the camp paid off an existing mortgage on the downtown facility and helped clear up operating debt from before and after.
Hope that helps, and please keep reading and contributing to your Mount Pleasant-Sturtevant Patch!
Jesse Richards
1:24 pm on Friday, June 17, 2011
That is an interesting answer. This article seemed to indicate they hadd $2 million in debt when they put the camp up for sale, but it also seemed to indicate the rest of the money would go toward the new building. Does that mean the other $3.5 million all went toward operating debt? The way the YMCA presented the sale of the camp to the community was that it would help fund the new building. That doesn't sound like a very stable organization. They must expect the new building to do really well, if the old one used up $3.5 million in under six years. I have a hard time believing they will be able to keep the downtown facility open.
http://www.journaltimes.com/news/local/article_9df62c6c-fb1b-513e-94ff-9e299afea142.html