The YMCA of Central
Waukesha County is purchasing three YMCA branches from the
YMCA of Metropolitan Milwaukee.
Charles Auer/Freeman Staff
MILWAUKEE - The
YMCA of Metropolitan Milwaukee has filed for Chapter 11 bankruptcy
and will sell the majority of its real estate assets to pay down the
debt, and the YMCA of Central Waukesha County has signed a letter of
intent to purchase three of those properties.
According to a
press release from the Metropolitan Milwaukee Y, the organization is
planning a “restructuring plan” that will establish an urban
Milwaukee Y consisting of centers within or very close to the city
of Milwaukee. All centers, camps, programs and other commitments are
expected to operate uninterrupted throughout the bankruptcy process.
The YMCA of
Metropolitan Milwaukee’s debt exceeds $29 million, with a 2014
budgeted revenue of $37 million and a 2014 budgeted EBIDA (Earnings
Before Interest, Depreciation And Amortization) of $950,000 - a debt
to EBIDA ratio of 30 to 1 - according to the release.
“With the added
impact of external and internal complications over the past few
years, including the recession, intensified competition, millions of
dollars in deferred maintenance costs, declining membership and
decreasing contributions, the YMCA of Metropolitan Milwaukee’s
current operating and financial model is not sustainable,” YMCA
officials said in the release.
“While much has
already been done to address this situation - including staff
layoffs, delaying necessary investments in its centers, freezing
salaries and benefits and eliminating some program offerings -
absent a significant restructuring and debt reduction, the YMCA of
Metropolitan Milwaukee will be insolvent by as soon as this fall.”
plan will include the Rite-Hite Family YMCA, the Northside YMCA,
Parklawn YMCA, Downtown YMCA, John C. Cudahy YMCA and Camp Minikani.
The YMCA of
Central Waukesha County has signed a letter of intent to purchase
the West Suburban YMCA in Wauwatosa, Tri-county YMCA in Menomonee
Falls and Southwest YMCA in the Greenfield area, with a majority of
the proceeds from this transaction to be used for debt reduction,
according to the release.
Y planned for
Kettle Moraine YMCA has signed a letter of intent to purchase the
Feith Family Ozaukee YMCA.
The village of
Sussex issued a statement about the YMCA of Central Waukesha’s
acquisition of the properties, saying the village remains committed
to the Y, and would rather be part of a six-YMCA system than a
likely be home to a YMCA in 2018, and it’s planned to be located on
the same Main Street campus as the new Sussex Village Hall and
Pauline Haass Public Library. The village is contributing $7
million, about half the total construction costs. However, the
village wouldn’t contribute to ongoing operational costs.
Bob Denman, CEO
of the YMCA at Pabst Farms in Oconomowoc, said because his location
is part of separate, independent association for its operations, the
bankruptcy filing will not affect him. He added that the service
area of his location would not allow him to consider acquiring any