#JustBuildIt Last Tuesday night saw a very animated debate amongst those for and against the concept of a loan from O’Hara Township to close our financing gap and begin the construction of the Lauri Ann West Community Center. There were 70+ residents that attended the Council Workshop, which lasted nearly 3 hours! We are grateful to the friends of our Center that spoke in favor of our project… we need you again Tuesday, August 12th at 7pm… Council will vote on whether or not to backstop our project with a loan and to begin construction. Please come to encourage Council that our residents WANT this project to get shovels in the ground and WILL support the Center in the future! Recall that, although we have met the O’Hara “$1million Challenge Grant” issued this time last year and raised an additional $1.4 million in recent months…. the cost to construct has risen at almost the same pace, to $9.2million. This is due to the increase in raw material costs, and site preparation discoveries that have increased requirements. It has left us with a funding gap that will not be met before construction bids expire August 20th. We are encouraged that 5 of 7 O’Hara Township Council members showed early support for investigating a loan to cover the gap. We think this loan is necessary now because our decrepit building will not last past another Winter, and because more than 600 family, foundation and corporate donors who have generously given $6million toward this project are losing patience. We cannot accept any more delays as they will result in inestimable threats to our future – we owe it to our community to move forward. We are confident in the Community Center’s ability to pay back the loan because our capital fundraising momentum is strong! 1) We have already submitted grants for $1.25 million 2) We have asks in progress with multiple corporations and family foundations 3) Actual “shovels in the ground” will draw new excitement and donations 4) Many potential donors remain to be approached 5) We have many naming opportunities left worth $1.6 million…. In the unlikely event that capital fundraising is still not enough to pay back the loan, operational budget adjustments are very possible by delaying hiring and other investments. This situation is what is best referred to as a “timing gap” and the use of a loan as a partial financing tool is a conventional and normal step for projects of this scale. Nonetheless, there is stiff opposition to the concept of a Township-supported loan, best boiled down to two points: #1 - The Township has already given $2million for this project and it has put taxpayers at risk.” The fact is that the first $1million was set aside in 2005 and has not been considered part of normal Township operating reserves since that time. The second $1million was able to be set aside last year as a result of the sound fiscal management of the Township, which was more than adequately reserved given best practices and legal requirements. If there was a risk to taxpayers from this action, my guess is it would not have received unanimous support from Council which voted 7-0 to support the grant. In the end, O’Hara Township will have paid 22% of the cost to construct a building it will own. Private donors have granted the rest of the funds – this is a HUGE benefit to our community! #2 - The Township is putting taxpayers at risk of increased taxes if the Community Center cannot pay the loan back.” The fact is that the Township is going to explore refinancing an existing 2009 bond, which will likely help the Township enjoy today’s reduced interest rates and a conservative pay back schedule. The Community Center has demonstrated a 10-year solid financial operational performance and expects to continue this trend. More than 11,000 neighbors come through our doors each year, for special events and arts and fitness programs. We have grown our income from less than $300k/year to more than $600k/year in 10 years. And we have cut in half our reliance upon municipal support, from 40% of our operating budget in 2004 to less than 20% of our operating budget today. Additionally, we have tremendous fundraising momentum, with more than $1million in grants ALREADY submitted, and a healthy list of potential donors that have signaled interest in our project. A third-party assessment was performed of our future operating plans, and rated them “conservative and achievable”. We are confident in our ability to pay back the loan! The truth is that CCA Board Members and Staff are also residents and taxpayers of this community. None of us wants to put our neighbors at risk of increased taxes. We are committed to the dozens of elected officials, staff, volunteers and donors over the last 25 years who have worked toward a new, sustainable and efficient Community Center building. We are advocating this project because we are confident it will 1) remove an eyesore building from the community, 2) create jobs, 3) improve home values, 4) attract home buyers, and 5) allow our children, seniors and families to continue to enjoy the benefits of our Center for decades to come. Please stand with us! Please contact O’Hara Township Council members with your support via email at ohara.pa.us/elected.asp and PLEASE come to the Council Meeting on Tuesday at 7pm. Tell your friends. Bring your kids. This is a defining moment for our community – a year from now we will be looking at a beautiful new building that will serve us all very well, for years and years to come. On behalf of our board and awesome staff, thank you. Pass it on!
Posted on: Sat, 09 Aug 2014 19:48:50 +0000
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