Breezemont Day Camp 62 Cox Avenue Armonk, NY (914) 273.3162 www.breezemont .com
Plans for North Castle Pool and Tennis
April 27, 2012 The Anita Louise Ehrman (ALE) pool will open on Memorial Day under the new management of North Castle Pool and Tennis Club LLC (NCP&T). The licensing agreement guarantees that NCP&T will operate the pool for five years and may exercise the option to buy it during that time.
NCP&T is financially responsible for all the payouts to the bank, as well as the outstanding bills of the vendors, contractors, and personnel. The ALE bank loan had gone into default, and the bank has served a demand notice. Armonk resident Joe DiMauro said he is an independent investor of NCP&T and added that there is no one else involved. NCP&T is responsible for the outstanding debt and mortgage of more than $1.3 million.
"It took two months to figure out what to do,” said DiMauro. He explained that there was a delay in signing the contract, since legal research was required to ensure that the pool could be sold, and if so, whether or not a pool permit could be obtained. The contract had to be rewritten 10 times. They also wanted to be certain that there were no bankruptcy judgments against ALE for any of the outstanding debt. There are no plans to develop the property as houses or condominiums.
DiMauro said North Castle Parks and Recreation Superintendent Susan M. Snyder had mentioned in January that the pool was in trouble. The possibility of the pool having to close was very real: The town did not have a viable means of purchasing the pool since there was not money in the budget. In addition, there was concern that a required voters' referendum would not pass. When DiMauro learned of this possibility, he felt he couldn’t just stand by and do nothing. "Recreation is not my business. I'm in the oil business and I’m a financial broker," said DiMauro. “But we couldn't let the pool be bulldozed.”
Although he wasn’t sure what the exact number of bondholders was when we spoke, he was certain it consisted of more than 200 families. On average, the bondholders paid $1,000 each, an amount which was to be fully refundable. NCP&T has offered two options to the bondholders. The first option allows them to donate the bond to ALE and receive a tax deduction and a five-year coupon toward a yearly membership, with a discount of $100 (up from $75) for five years. The other option allows the bondholders to request NCP&T to "pay bonds back on a pro-rata basis after the second consecutive year of profitablitity."
The ALE's not-for-profit funds dried up when they rebuilt the pool, said DiMauro. He has structured a five-year plan to rebuild and improve the financial standing of the pool. He is taking all the risk. But ideally, he would like the pool to be run by either the town or a new ALE board in the future.
DiMauro said one of the reasons the pool had failed was that not everyone was contributing his or her fair share for its use. In the past, senior citizens did not have to pay for pool membership. Several months ago, however, a fee structure was presented, which involved a $500 yearly membership fee for seniors.
"That is too much for those people that can least afford it," said North Castle senior citizen Fran French, during a recent Town Board meeting. Many seniors stressed that the new cost would deprive them of the opportunity to be members. "The pool should not only be for families with children, but rather, a place for everybody in North Castle,” added French. The senior membership fee has subsequently been reduced to $250.
"But if we don't have a membership, we won't have a pool,” emphasized DiMauro. Still, he added that the memberships are slowly coming in and the pool will open this year, regardless of membership. "As in any business plan, we'll simplify the goals and hire the people to execute them," said DiMauro. The objectives are to open the pool, stabilize the finances, and have the pool operating in the black, with between 250 and 300 family memberships.
DiMauro doesn't see a conflict of interest in his role as Chairman of the Town's Recreation Advisory Board. He said the Advisory Board is not involved in establishing the camp fees that ALE receives from the town for use of the pool. Campers use the pool as part of the town camp program. The higher town fee this year, from $35,000 to $50,000, has nothing to do with the Advisory Board, added DiMauro.
Following the advice of accountants and other professionals in the private sector, DiMauro has reset the fee structure for pool membership as follows:
A family of 4 or more: $1,000; A family of 3: $850; Individual fee: $500; Teen fee (13-19-year-olds) with restricted hours of use on weekdays after 3 p.m. and on weekends: $300; Seniors: $250; Daily pass: $15.
Although the pool operated with a deficit this past year, DiMauro firmly believes that it can become profitable. He is rehiring the staff and hiring a manager, and he wants to use the services of Party Planners for membership affairs and parties.
DiMauro is also planning some other welcome changes: two-to-three teen nights during the summer (nothing later than 10 p.m.), with groups of 12-15 kids under adult supervision; a full-time staff, with a janitor on duty to clean the bathrooms throughout the day; and a tent available for rainy days and parties. He also intends to repair the tennis courts. Switching gears toward the winter months, DiMauro mentioned that he is involved in discussions about an ice-skating rink. He feels that having partners involved in this business would be essential to make it happen.
ALE Pool Update March 25, 2012
The Anita Louise Ehrman Recreation Center's (ALE) Board of Directors sent a memorandum dated March 18, 2012, to the pools’ bondholders; the memorandum addressed the procedures that require bondholders to either donate their bonds to the ALE, a non-profit organization, or opt to
request repayment by a private entity, North Castle Pool and Tennis Club LLC (NCP&T), who will be purchasing the pool.
Joseph DiMauro, an Armonk resident and Chairman of the North Castle Parks and Recreation Advisory Board, controls the NCP&T. DiMauro is also the Chief Executive Officer of Clark Dodge Asset Management, which is located in White Plains, NY. The proposed deal involves selling ALE property for the outstanding bank loan and vendor account payables of an unconfirmed amount of approximately $1.3 million.
The memorandum states, "In order for the proposed deal with NCP&T to go forward to operate this summer," the deadline is today for bondholders to "elect to donate the value of my bond to ALE Recreation Center Inc." or "to wait and have North Castle Pool and Tennis LLC return the value of my bond over time, and release ALE from all obligations related to the bond."
The town camp will continue to use the pool facilities for it its summer program at the cost of $50,000, an increase of $15,000 from last year's $35,000 fee.
NCP&T "will be offering many additional services that will greatly enhance the experience and the quality of life at the facility for reasonable fees."
Last year the ALE Board realized that funds were not available to operate the pool; subsequently, they offered to sell it to the town for $1.7 million, which covers the liabilities of the bank loan, membership bonds, and aid provided by Lifesaver members. The sale would have required a referendum, with a vote by taxpayers.
Residents of North Castle, which includes North White Plains, spoke out publicly in opposition to a referendum. An alternative to selling the pool privately was suggested by Councilwoman Diane Roth, and she recommended Joseph DiMauro, a prospective buyer of the pool. Councilman John Cronin facilitated the ALE Board and the buyers in the negotiations.
While most people agree that the town residents will benefit from having the pool available this summer, several questions remain unanswered:
Can the ALE, as a non-profit 501 (c) (3) organization, be sold privately without the Attorney General's approval?
Were appraisals of the property performed? What was the appraised value?
What is the purchase price? Are there any partners or investors of NCP&T? If so, who?
Why did the town remain involved in facilitating the deal?
Did NCP&T agree to a Permanent Restrictive Covenant that the property will remain as a town pool in the future? Will this be placed on the deed, since Supervisor Howard Arden said he would pass it along to the buyer as a suggestion from Armonk resident and attorney Bob Romano?
Looking for fun summer activities for your child? North Castle offers three camps for kids ranging from three years old to fourteen years old.
Camp Kick-A-Poo is a six week camp for three to five year olds that offers arts and crafts, sports, and other fun activities such as drama and dancing. The children will learn important socializing skills while enjoying new activities.
Camp Chippewa is for children that have completed kindergarten through eighth grade. In this six week camp children are sorted into groups by age and enjoy a multitude of age appropriate activities as well as field trips.
Teen tours are offered to children who have completed sixth grade through ninth grade. These overnight trips allow older children to visit exciting destinations while bonding in a small group. Whatever age your child may be, North Castle recreation camps provide a fun and safe experience.
North Castle Recreation Spring/Summer 2012
North Castle's Parks and Recreation offer something for everyone. There will be new sports programs in soccer, volleyball, flag football, and lacrosse. There's swimming, Mad Science, Legos, teen travel and much more. Director of Parks and Recreation Sue Schneider describes it all here.
A Cloud Over the Pool
March 15, 2012 At the March 14, 2012 North Castle Town Board meeting, Councilman John Cronin said he encouraged interested members
of the Ehrman Pool to send in their membership fees. The pool will open on Memorial Day, as scheduled, under the new ownership of North Castle Pool and Tennis, LLC.
Cronin's memo to the community posted on the Ehrman Pool website said members should send checks payable to: North Castle Pool and Tennis Club, LLC at 2 Gannett Drive, Suite 410, White Plains, New York 10604. This is the same address as that of Clark Dodge Asset Management; Joseph DiMauro, who is Chairman of the North Castle's Recreation Advisory Board, is a principal and Chief Executive Officer of Clark Dodge Asset Management. Mr. DiMauro has not returned our phone call as of this publication.
The Town is responsible for facilitating two parties: the not-for-profit Ehrman Pool and Recreation Center and the North Castle Pool and Tennis Club, the latter whose membership is interested in purchasing the pool. The Town is not involved in the management of the pool, Cronin said.
Resident Bob Romano said the deal associated with the town pool is a good starting point, but he also has concerns. "Specifically, a right of first refusal means little to nothing, as long as the offering price reflects a development deal, and not the (lower) value as a town recreational facility. Despite Councilman Cronin's sentiments, there is no assurance that the property will remain a town pool in the future. If the new purchasers are sincere in their desire to keep it as it is, they should have no objections to a permanent, restrictive covenant being placed on the deed. I would be very curious as to the potential purchaser’s response to a request for this as a condition of the deal. A negative reply would certainly make me re-evaluate their intentions."
Resident Fran French expressed concern about the $500 membership fee for seniors. "In past years, seniors have not been charged to use the pool." She feels the charge is grossly unfair because seniors are already squeezed by taxes, and the new pool’s owners are asking too much from those who can least afford it. She suggested a nominal charge of $100 per season or a pay as you go system.
Cronin said he will not be disclosing the new owners’ names until the letter of intent is signed. He added that he has sent the community's input, including French's suggested $100 senior citizen fee, to the operator. Cronin added, "He is going to re-evaluate the fee structure because we also received comments on the $1,000 per family fee." Cronin said that in the past, neither seniors nor life savers, who are guarantors of the loan, were required to pay. This policy, as well as other concerns, such as too much debt due to a construction loan to renovate the pool, have resulted in the financial predicament leading to the sale of the property.
Banksville resident Sharon Tomback, former secretary to Supervisors Bill Weaver and Reese Berman, said "this whole arrangement with the pool scares the hell out of me." Tomback said she is concerned about the procedure, protocol and precedent set by the Town Board in making a unilateral decision without a public vote. She feels that the Town simply rents space for the summer camp and should not be overly involved. Even with the declining enrollment of the summer camp, the Town has committed an additional $15,000 – in all, a total of $50,000 -- for the upcoming summer usage, just prior to the commitment of the unknown buyer, added Tomback. The message from the Town Board on the Ehrman pool website shows a receipt that will be issued to 2012 members from the Town of North Castle. Cronin said the town does not intend to issue any receipts and any questions should be emailed to him at jcronin@northcastleny.com.
"Why are we micromanaging? Why are the taxpayers involved?" asked Tomback.
The Town Board confirmed that four of the town board members are also pool bondholders. Tomback asked if a conflict of interest existed if town board members, as bondholders, voted on this subject.
Cronin cut Tomback off and said, "No, Sharon, and to be honest, you are off the wall."
There was a loud response from many people in the room who were appalled at Cronin’s tone of disapproval and his disrespectful treatment of Tomback, especially given his abrasive comment.
Cronin then responded to Tomback's question concerning a potential conflict of interest among Town Board members. "Bondholders are being asked to donate their bonds. There is no payback to the bondholders, except for a period of time.
“We are paying the pool $15,000 more, as the pool board has requested this for the past five years. They feel the amount the town has been paying is below market,” added Cronin. "We feel it is a fair rate for use by summer campers, and the campers will also be getting extended hours."
Cronin elaborated that the Town Board is not in favor of the alternative, namely a referendum for the Town to purchase the pool. "We wanted the pool to stay open and found a suitable buyer who is keeping the fee structure largely the same, with the exception of seniors." He is assuming all the risk, added Cronin. "I truly don't understand your contention. The town is not assuming any risk. 200 families rely on the town pool for summer swimming and, in their interest, we tried to put together a way for the pool to stay open."
Supervisor Howard Arden commented that he felt the board was acting responsibly in trying to limit the town's liability and accommodate pool users. He feels that if the Town were to put up a referendum, it would inherit the liability of the bonds, life savers, and vendors that haven't been paid.
Ehrman Pool Update from Councilman John Cronin March 7, 2012
Comments Pool Update North Castle Pool and Tennis Club, LLC (NCPT) will be the new owner/operator of the pool. During the transition, the Town will work closely with NCPT to guarantee a smooth and on-time opening of the pool.
Management NCPT will begin immediately to operate the pool and prepare for opening day. The current ALE Board will assist in the transition but play no role in future management of the pool. All disbursements (eg exisiting accounts payable) will be signed off by me or another representative of the Town until the transition to the new owner is complete.
Membership The fee structure for the upcoming season has been simplified. Membership rates are as follows: • Families (including nannies) - $1000.00 • Individuals - $700.00 • Seniors (individual or pair) - $500. Those members who recruit a new member to join the pool will be given a $100.00 credit off of their membership fee.
Payment As noted at the meeting last week, in order to insure an on-time opening, we are looking for members to send in their fees as soon as possible. The membership fees will be held in escrow until the pool opens. All members will be issued a receipt stating as much. Checks should be made payable to: North Castle Pool and Tennis Club, LLC. Checks should be mailed to: 2 Gannett Drive, Suite 410, White Plains, New York 10604.
Bonds New members will not be required to post a bond. Existing Bondholders will have two options: • Donate your bond and get a discount off membership. Donate your bond to ALE prior to the sale of the pool and take the tax benefits of making a donation to a 501 (c )(3) not for profit organization. An additional $75.00 discount off of the membership fee will be applied for the next 5 years for those who donate their bonds. • Pay back over time out of profits. Repayment of bonds will begin after the pool has had two consecutive years of profits. 50% of the profits would be put into that fund from which remaining bondholders would be paid on a proata basis for monies due to them. In the event that the company fails to show a profit after five years, then those bonds would cease to exit.
Other The new owner has assured the town both of his intention to continue to operate the pool as a recreational facility for the benefit of the residents and his commitment to investing in upgrading the facilities. And as noted in the slide presentation, should he have a change of heart, the town will have the right of first refusal to buy the pool.
Finally, the Rec Supervisor will this week send out a town-wide mail announcing the camp will be using the pool for the upcoming season.
Summer Looking Brighter as Ehrman Pool May Open
March 5, 2012 The operating expenses necessary to run the Anita Louise Ehrman Recreation Center (ALE) this summer are $250,000. Town Board Liaison and Councilman John Cronin said the pool needs a minimum of 200 families to pay their respective membership dues of $1,000 in advance, to be able to open this summer. In addition to membership dues, the town will commit $50,000 toward the town summer camp program.
Since the ALE formed in 1964, it had intended for the operation of the pool to be funded by its membership. But Ehrman Pool's Board of Directors reconstructed the pool complex in 2006 for approximately $3,000,000, before they had raised the necessary funds for the project. The Board then recruited 24 "Lifesavers" to become creditors for a bank loan of approximately $1,000,000.
In 1965, the ALE was created as a non-profit corporation to build and manage the pool. In the first year, 2,600 people became members. Last year only about one-tenth of the original family memberships remained. Reconstruction costs, maintenance required to meet code, and declining membership have resulted in operating deficits.
An option to rescue the pool has been suggested by Councilman Diane Roth; she has spoken with a private citizen of North Castle who is interested in purchasing the pool. Cronin said they are not prepared to name the individual yet, but the buyer is interested in maintaining the Ehrman Center as a privately run, recreation facility. Converting the Ehrman Center from a charity to a private enterprise is a lengthy and complicated process and may require the State Attorney General's approval.
An article that appeared in the North Castle News dated August 10, 1965, quoted Lawrence Buttenwieser, lawyer on record at the time for the Anita Louise Ehrman Recreation Center: "If ever the property should go on sale, the money realized would have to be returned to charity and no sale of property could occur without express permission of the courts."
According to Supervisor Howard Arden, Armonk resident Rich Nardi is the attorney for the ALE Board of Directors. Arden said Nardi's legal opinion is that the Center's provision as a 501 nonprofit does not require approval from the attorney general for the sale of the property.
Town Attorney Roland Baroni said, "Nardi has stated that the corporation is a specific type of 501 corporation that does not require approval. He has the records. I do not."
At press time, we received no comment from Rich Nardi.
In the meantime, the Ehrman Pool’s Board of Directors has not paid the $8,800 due in monthly payments on the $1,000,000 construction loan for the past two months. The $250,000 figure associated with operating expenses does not include the debt payment. Furthermore, the 24 Lifesavers who are creditors to the bank are responsible if the ALE defaults on the loan. However, if the bank were to collect its fees on the defaulted loan, it would likely mean years of litigation against the 24 creditors.
The ALE Board of Directors has requested that the town purchase the pool for $1,700,000, which covers the liabilities of the bank loan, membership bonds, and aide provided by Lifesaver members. This would necessitate a referendum to be approved by taxpayers.
Some opposition has been expressed from taxpayers who wouldn't use the pool and don't want to be taxed for its purchase. "The kids should be able to swim, but if this goes to a referendum, I'll work in opposition," said lifelong North White Plains resident Tony Futia. He added that the $50,000 payment for the summer camp from the town appears to be a bailout of the pool.
Futia asked, "How much more will it cost the taxpayers, in addition to the $5,000," for a $1,000,000 appraisal recently done?
The ehrmanpool.org website says the town is considering holding a referendum to decide whether or not to purchase ALE and also states, "The impact on the average homeowner in North Castle would be approximately $35 per year, or less than $1 per week, and the bond would most likely have a 15-year term.”
The solution that Cronin offers, specifically paying dues upfront, seems to be a reasonable, yet temporary, solution to maintaining the pool for this summer. But he cautioned that many details still need to be ironed out.
Arden said it makes sense to support the pool as a town facility, although a great deal of time will be required to resolve a complicated situation.
