Municipal council will examine a lease agreement and a $505,000 investment in the Sault YMCA

Article content

City council is expected to approve a three-part plan Monday that will allow Sault Ste. Marie YMCA to continue its operations.

Article content

A charity, which has not yet been named, will purchase the McNabb Street property for $2 million.

Article content

The City of Sault Ste. Marie will sign a rental agreement with the buyer of the building to provide security for rental payments. The city will also enter into a sublease agreement with the YMCA, which will be responsible for making lease payments to the city.

“Lease payments are significantly reduced from the YMCA’s previous mortgage payments due to the financial terms offered by the organization,” the report to council reads.

City council is also being asked to provide $505,000 to the YMCA for capital improvements. An application to the Northern Ontario Heritage Fund Corporation has been submitted for $495,000. The money will go toward approximately $1 million to upgrade the existing building.

Article content

“Any repairs to the building will be aimed at minimizing capital investment and examining opportunities to move equipment to a new facility in the future (if a new facility proves feasible),” the report states.

The YMCA was exempt from property taxes due to provincial legislation and city council must also agree to ensure the tax exemption continues once the new organization takes ownership of the land.

“The organization is purchasing the building as a community investment, not a real estate investment,” says executive director Tom Vair.

Lease payments of five percent per year ($100,000) would be paid by the YMCA and supported by the city for the life of the lease, which remains to be negotiated in full. The lease agreement provides the YMCA with significant savings on existing mortgage payments.

Article content

The agreement would provide for a memorandum of understanding on the governance and leadership of the Sault YMCA’s operations and regular communication between municipal staff and the YMCA.

The memorandum will also include requirements for participation on the YMCA board of directors.

“If the YMCA begins to experience financial difficulties, the city will seek to step in and appoint a new board of directors and take other steps to ensure sustainability and continued operations.”

The community will also have its role to play for the project to succeed.

The YMCA must increase its membership to 4,500 within 60 days. The number of members is currently around 3,000.

“Membership numbers need to return to previous levels to provide a sustainable operating model for the organization. »

Article content

In mid-April, it was announced that the YMCA was putting its McNabb Street property up for sale and ending operations due to its bleak financial situation.

The YMCA blamed increased operating costs on an older facility, coupled with inflation and a slow return to pre-COVID-19 membership levels.

The announcement was a blow to the community, and a local group was formed to lobby decision-makers to save the important community facility.

It is now expected that the Sault YMCA will also begin working on a longer term solution and enter into an agreement with a larger regional YMCA that will provide experienced executive leadership, including CEO oversight, finance and human resources.

The regional model has seen success at other YMCA locations in Ontario and across Canada.

Article content

The near future will also require planning to determine future facility needs and whether a major renovation or new building is the best option. The final decision will result in a major capital fundraising campaign.

The YMCA provides employment, recreation and child care services to the community.

It offers swim lesson programs, provides opportunities for disadvantaged youth, health and fitness services and programs, and partners with other organizations including the Native Friendship Center, Community Living Algoma, Ken Brown Home, Adult Enrichment Center and the Group Health Center Cardiac Rehabilitation Program.

The Sault YMCA offers 77 full-time and 42 part-time daycare spaces on McNabb Street.

Monday’s council meeting begins at 5 p.m.

Article content