This press release was provided by YMCA of Metropolitan Milwaukee. The Club Industry editorial staff was not involved in the creation of this content.
The YMCA of Metropolitan Milwaukee provided today a number of updates related to its comprehensive restructuring plan. Announced on June 4, 2014, this restructuring plan calls for the organization to establish an urban Milwaukee Y comprised of centers within (or very close to) the city of Milwaukee, while selling the majority of its owned real estate assets in order to pay down debt. The YMCA of Metropolitan Milwaukee also filed for relief and is operating under the protections afforded to it by the United States Bankruptcy Code.
"From the beginning, our objective has been to establish a sustainable financial and operating platform while preserving the Y's mission and continuing to best serve our shared community," said Julie Tolan, President and Chief Executive Officer of the YMCA of Metropolitan Milwaukee. "While this process is undoubtedly difficult, we are so very grateful for the remarkable support we have received from our employees, members, benefactors, neighboring Y's and community leaders throughout southeastern Wisconsin who share our belief that the Y matters and is worth saving."
Specific updates of note include:
Continuation of Normal Business Operations:
All operations at the YMCA of Metropolitan Milwaukee's centers and camps has continued uninterrupted. This includes the payment of employee wages and benefits as well as supplier invoices for post-petition goods and services.
Sale of Southwest, Tri-County and West Suburban YMCAs
The YMCA of Metropolitan Milwaukee has received a formal offer to purchase the Southwest, Tri-County and West Suburban YMCAs from the YMCA of Central Waukesha County. This offer – which includes an agreement to honor the terms of all existing membership contracts and an agreement to retain substantially all existing employees – was submitted yesterday to the United States Bankruptcy Court for the Eastern District of Wisconsin, along with a request for a hearing to approve the offers by mid-September.
"Serving approximately 200,000 members combined, all of Southeastern Wisconsin will benefit from a strong, healthy regional network of YMCAs," said Chris Becker, Chief Executive Officer of the YMCA of Central Waukesha County. "Our shared mission of youth development, healthy living and social responsibility has lasting relevance, and we are proud to do our part to ensure even more members of our community have the chance to benefit from all the Y has to offer. This includes significant reinvestment in these three facilities and equipment that will amount to over $2.0 million per year to ensure our Y's consistently provide the highest level of programming and services expected by our members and community partners."
"I am a strong believer in the Y and personally have seen the impact the Y has on kids, families and communities," said Agustin (Gus) Ramirez, Chairman of HUSCO and long-time President of the Waukesha County YMCA Foundation. "That is why I provided a sizable contribution from the Ramirez Family Foundation to facilitate the Waukesha YMCA's ability to finance the acquisition of these three facilities. If completed, this transaction will allow both organization's to better leverage their collective expertise and shared commitment to the Y's mission, ultimately serving more families and communities in Southeastern Wisconsin."
Sale of Feith Family Ozaukee YMCA
The YMCA of Metropolitan Milwaukee has also received a formal offer to purchase the Feith Family Ozaukee YMCA from the Kettle Moraine YMCA. This offer, which includes an agreement to honor the terms of all existing membership contracts and an agreement to retain substantially all existing employees, was also submitted yesterday to the United States Bankruptcy Court for the Eastern District of Wisconsin, along with a request for a hearing to approve the offer by mid-September, with a closing date of December 15, 2014.
"The Kettle Moraine YMCA Board of Directors is in support of securing long-term financing to help fund the purchase of the Feith Family Ozaukee YMCA. In addition, already underway is a capital campaign to help with the purchase and facility improvements planned for the Feith Family YMCA," said Rob Johnson Executive Director of the Kettle Moraine YMCA. "Since announcing our intent to acquire the Feith Family YMCA, the community support has been tremendous. In fact, local community leaders are stepping up to help with the fundraising campaign to save the Y. We are hopeful more community leaders will join this cause and that we ultimately raise the necessary funds to complete this transaction and continue the myriad of youth and adult programming and services the Ozaukee community has long enjoyed. The Kettle Moraine Y is a leader in our local community in child care, workplace wellness, chronic disease initiatives, and has co-founded Washington County's health coalition. We look forward to bringing these initiatives and services to the Ozaukee County communities."
"The Kettle Moraine YMCA is excited to see the local community stepping up to help save the Feith Family Y through financial support. Several donors and volunteers will be out in the community over the next 60 days to ensure that the necessary funds are raised so that the Y in Ozaukee County can remain a non-profit, family-centered organization available to all members of the community," said Dr. Carey Cameron, Chief Volunteer Officer of the Kettle Moraine YMCA Board of Directors and Family Medicine Physician for Froedtert and the Medical College of Wisconsin Community Physicians.
Future Use of the John C. Cudahy YMCA
The YMCA of Metropolitan Milwaukee has received a letter of intent from Risen Savior Lutheran School to enter into a rental agreement by which it would expand its operations to the current John C. Cudahy YMCA campus during the school year. With the YMCA of Metropolitan continuing to run all summer programming – including the widely-respected Miracle League of Milwaukee – the facility will now be fully occupied year-round. While this facility will transition to focus exclusively on K4-8 education for the majority of the year, the spirit and intention that this facility be a vibrant place for learning and self improvement will remain intact. When final, this lease will be also be submitted to the United States Bankruptcy Court for the Eastern District of Wisconsin for approval.
Transition of South Shore YMCA and Camp Matawa
A number of hopeful discussions have been had with potential operators of both the South Shore YMCA and Camp Matawa. While the YMCA of Metropolitan Milwaukee has nothing to disclose at this time, it remains fully committed to working with all parties to find long-term partners best suited to maximize the potential of these facilities.
Sale of Downtown YMCA
The YMCA of Metropolitan Milwaukee is beginning to evaluate alternative locations for the Downtown YMCA. It is expected to take at least a year to complete this process. In the meantime, the Y has received and is considering various offers to purchase the existing downtown facility in the Plankinton Building, although it has nothing formal to announce at this time.
About the YMCA of Metropolitan Milwaukee
The YMCA of Metropolitan Milwaukee is a powerful association of men, women and children of all ages and from all walks of life joined together by a shared passion to strengthen the foundations of community through youth development, healthy living and social responsibility. Since 1858, Milwaukee YMCAs have helped kids and families live healthy lives in spirit, mind and body. Supported in part through contributions to the Annual Campaign, the Y provides membership assistance and scholarships to programs like summer camp, child care and teen activities, to make sure that everyone, regardless of age, income or background, has the opportunity to be healthy, confident, connected and secure. http://www.ymcamke.org